Cardinal Ethanol Llc · OTC:CRDE

Cardinal Ethanol — Shareholder Meeting (February 2016)

24 slides from Cardinal Ethanol's shareholder meeting presentation, Feb 25, 2016

  1. Slide 1: Welcome & Call to Order

    2/25/2016 Capital Update Welcome & Call to Order Mr. Rob Davis Chairman of the Board Cardinal Ethanol, LLC 1

  2. Slide 2: Rules of Conduct

    2/25/2016 Rules of Conduct • In fairness to all participants and in the interest of an orderly and constructive meeting, the following rules of conduct will be followed: • No cameras, audio or video recording equipment. • The meeting will follow the schedule set forth on the Agenda. • Only unit hold

  3. Slide 3: Minutes of the 2015 Annual Meeting

    2/25/2016 MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS & MEMBERS OF CARDINAL ETHANOL, LLC February 10, 2015 Winchester, IN Attending Board Members: Bob Baker, Tom Chalfant, Tom Chronister, Rob Davis, David Dersch, Everett Hart, Allan Rosar, Dale Schwieterman and Phil Zicht were in attenda

  4. Slide 4: Minutes: Election of Directors and Results

    2/25/2016 MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS & MEMBERS OF CARDINAL ETHANOL, LLC Results of Voting and Adjournment of Business Meeting: Rob Davis reported that Robert Davis, Cyril LeFevre and Dale Schwieterman were elected to serve on the Board of Directors for another term. Also

  5. Slide 5: CEO Comments; Financial Report

    2/25/2016 CEO Comments Mr. Jeff Painter President & CEO Cardinal Ethanol, LLC Financial Report Fiscal Year 2015 and First Fiscal Quarter 2016 Mr. Robert Baker, CPA Finance Committee Chairman Cardinal Ethanol, LLC 5

  6. Slide 6: Disclaimer and Summary of Results

    2/25/2016 Disclaimer • This presentation contains forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements can be identified by use of forward‐looking terminology such as “project,” “may,” “expe

  7. Slide 7: Income Statements

    2/25/2016 Income Statements For The Fiscal Year Ended 9/30/2015 9/30/2014 Revenues $240,695,000 $337,356,000 Cost Goods Sold 197,305,000 244,415,000 Gross Profit 43,390,000 92,941,000 Operating Expenses 4,715,000 4,945,000 Operating Income (Loss) 38,675,000 87,996,000 Other Income (Expense) Incl Int

  8. Slide 8: Member Taxes and Domestic Production Activities Deduction

    2/25/2016 How Does This Affect The Members’ Taxes? Book net income 1/1/15-12/31/15 $20,479,767 $1,402 Total Permanent Differences 61,758 $4 Temporary Differences Depreciation/Recapture 7,166,038 Unrealized Loss on Hedging 163,558 Other Temporary Differences (286,580) Total Temporary Differences 7,04

  9. Slide 9: Net Income and Return on Members' Equity By Year

    $100,000 $90,000 $30,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 ($10,000) Net Income (Loss) By Year (Nearest $000) KX $20,451 $25,509 $26,355 V¢38,722 (3951) 1,852 4 FYE 9/30/2009 F¥E 9/30/2010 FYE 9/30/2011 FYE 9/30/2012 FYE 9/30/2013 FYE 9/30/2014 FYE 9/30/20:5 == Net Income (L

  10. Slide 10: Revenue Sources and Balance Sheets

    2/25/2016 Revenue Sources As A Percent of Total Revenues Balance Sheets As Of 9/30/2015 9/30/2014 Current Assets $48,647,000 $60,035,000 Net Property and Equipment 107,998,000 105,633,000 Other Assets 823,000 719,000 $157,468,000 $166,387,000 Current Liabilities 11,997,000 $13,381,000 Long-Term Debt

  11. Slide 11: Balance Sheets and Members' Equity Per Unit

    2/25/2016 Balance Sheets As Of 12/31/2015 12/31/2014 Current Assets $55,516,000 $64,489,000 Net Property and Equipment 107,627,000 104,148,000 Other Assets 823,000 719,000 $163,966,000 $169,356,000 Current Liabilities $19,962,000 $21,195,000 Long-Term Debt 8,957,000 0 Other Liabilities 0 0 Members'

  12. Slide 12: Working Capital and Cash Distributions Per Unit

    2/25/2016 Working Capital 2009 Through 2015 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 U.S. Dollars $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 9/30/2009 9/30/2010 9/30/2011 9/30/2012 9/30/2013 9/30/2014 9/30/2015 Working Capital $9,014,000 $11,337,000 $31,202,000

  13. Slide 13: Long Term Bank Debt and Statements of Cash Flows

    2/25/2016 Long Term Bank Debt 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 U.S. Dollars 40,000,000 30,000,000 20,000,000 10,000,000 ‐ 9/30/2009 9/30/2010 9/30/2011 9/30/2012 9/30/2013 9/30/2014 9/30/2015 Long Term Bank Debt 83,496,000 65,562,000 52,175,000 31,578,000 27,944,000 ‐ 4,865,236

  14. Slide 14: How Was Cash Flow Used?

    2/25/2016 How Was Cash Flow Used? Fiscal Year Ended 9/30/2015 Cash At Start Of Year $ 27,732,000 Operating Cash Flow $ 49,875,000 Long Term Borrowing $ 4,865,000 Total Available For Use $ 82,472,000 25.25% 12.76% 61.99% Capital Expenditures Distributions to Members Retained Cash How Was Cash Flow Us

  15. Slide 15: February Distribution; Strategic Outlook

    2/25/2016 February Distribution • $XXX per unit for members of record today. Strategic Outlook Mr. Greg Roy Commodity Manager Cardinal Ethanol, LLC 15

  16. Slide 16: WTI Crude Oil, Natural Gas and Ethanol Production

    2/25/2016 WTI Crude Oil & Natural Gas Average price of nearby futures yearly 120 10 9 100 8 7 80 $/MMBTU 6 $/barrel 60 5 4 40 3 2 20 1 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 WTI Crude Oil Natural Gas Ethanol Production, Exports, Usage, and Gasoline Consumption 2008 ‐ 2015 16.00 150.0 14.00

  17. Slide 17: Ethanol Production & Consumption; Board Crush

    2/25/2016 Ethanol Production & Consumption 16000 1250 14000 1150 1050 12000 950 Million gallons Million gallons 10000 850 8000 750 6000 650 550 4000 450 2000 350 0 250 2008 2009 2010 2011 2012 2013 2014 2015 Production Consumption Stocks ‐ (right axis) Ethanol Board Crush Continuous Nearby Contracts

  18. Slide 18: Spot Margins; Capital Improvements Update

    2/25/2016 Spot Margins From 2008 ‐ Present 1.50 1.30 1.10 0.90 Margin (Per Gallon) 0.70 0.50 Margin 20th % 0.30 80th % 0.10 ‐0.10 ‐0.30 ‐0.50 Capital Improvements Update Mr. Jeremey Herlyn Plant Manager Cardinal Ethanol, LLC 18

  19. Slide 19: 2/25/2016

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  20. Slide 20: 2/25/2016

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  21. Slide 21: 2/25/2016

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  22. Slide 22: Summary

    2/25/2016 Summary • Corn dryer and pit ‐ $3M • Additional corn storage ‐ $5.5M • Hammer mills ‐ $2M • Slurry blender ‐ $300K • Sieve bottles ‐ $1.5M • Boiler ‐ $3.0M • $15.3M of capital investment 22

  23. Slide 23: Guest Speaker; Questions and Answers

    2/25/2016 Guest Speaker Mr. Ken Parrent Indiana Corn Marketing Council Questions and Answers Mr. Rob Davis Chairman of the Board Cardinal Ethanol, LLC 23

  24. Slide 24: Election Results

    2/25/2016 Election Results Mr. Rob Davis Chairman of the Board Cardinal Ethanol, LLC 24

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