Green Plains Inc. (NASDAQ:GPRE) Q1 2022 Earnings Conference Call May 2, 2022 11:00 AM ET

Company Participants

Todd Becker - President and Chief Executive Officer

Patrich Simpkins - Chief Financial Officer

Phil Boggs - Senior Vice President and Investor Relations

Leslie van der Meulen - Executive Vice President, Product Marketing & Innovation

Conference Call Participants

Jordan Levy - Truist Securities

Laurence Alexander - Jefferies

Ken Zaslow - Bank of Montreal

Ben Bienvenu - Stephens Inc.

Steve Byrne - Bank of America

Adam Samuelson - Goldman Sachs Group

Kristen Owen - Oppenheimer

Craig Irwin - ROTH Capital Partners

Eric Stine - Craig-Hallum

Operator

Good morning and welcome to the Green Plains, Inc. and Green Plains Partners’ First Quarter Conference Call. Following the company's prepared remarks, instructions will be provided for Q&A. At this time, all participants are in listen-only mode.

I will now turn the call over to your host, Phil Boggs, Executive Vice President, Investor Relations. Mr. Boggs, please go ahead.

Phil Boggs

Alright. Thanks, and good morning everyone. Welcome to Green Plains, Inc. and Green Plains Partners, First Quarter Earnings Call. Participants on today's call are Todd Becker, President and Chief Executive Officer, Patrich Simpkins, Chief Financial Officer, and Leslie van der Meulen, EVP, Product Marketing and Innovation.

There is a slide presentation available, and you can find it on the Investor Page under the Events and Presentations link on both corporate websites.

During this call, we will be making forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risk and uncertainties. Actual results could materially differ because of factors discussed in today's press releases, and the comments made during this conference call and in the Risk Factors section of our Form 10-K, Form-10-Q, and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement.

Now, I would like to turn the call over to Todd Becker.

Todd Becker

Thanks, Phil, and good morning, everyone and thanks for joining our call today. Our recent announcements demonstrate that our ongoing transformation continues to gain steam as we achieve milestone after milestone, achieving 60% plus protein concentrations is an event that we have been aiming for and discussing with you for some time and we announced our success a couple weeks ago.

Our commercial progress on protein and high-value ingredients is exceptional as the team has added new customers across multiple species. We now [Audio Gap] in the quarter. Overproduction from the industry resulted in high ethanol inventories, which led to an extremely challenging margin environment. On top of that, we had what we believe will be our last quarter of significant negative absorption from our modernization program.