Wed, Jun 11, 8:06 PM (38 days ago)
**Highwater Ethanol, LLC (HWETH) Q1 2025 Financial Summary** **Financial Health & Performance Metrics:** - **Revenue:** $35.09M (Q1 2025) vs. $32.54M (Q1 2024), a 7.8% increase. - **Gross Profit:** $547.3K (Q1 2025) vs. -$796.6K (Q1 2024), a significant improvement. - **Operating Loss:** -$672.4K (Q1 2025) vs. -$1.89M (Q1 2024), a 64.4% reduction. - **Net Loss:** -$479.7K (Q1 2025) vs. -$1.60M (Q1 2024), a 70.0% reduction. - **Cash Flow from Operations:** -$9.77M (Q1 2025) vs. -$2.52M (Q1 2024), a worsening trend. - **Cash Flow from Investing:** -$2.34M (Q1 2025) vs. -$1.79M (Q1 2024), an increase in capital expenditures. - **Cash Flow from Financing:** -$8.17M (Q1 2025) vs. -$16.23M (Q1 2024), a significant reduction in distributions to members. **Revenue & Profit Margins:** - **Ethanol Sales:** $27.47M (Q1 2025) vs. $23.50M (Q1 2024), a 16.9% increase. - **Distillers Grains Sales:** $5.08M (Q1 2025) vs. $6.50M (Q1 2024), a 21.9% decrease. - **Corn Oil Sales:** $2.54M (Q1 2025) vs. $2.54M (Q1 2024), relatively stable. - **Gross Margin:** 1.56% (Q1 2025) vs. -2.45% (Q1 2024), a significant improvement. **Trends & Uncertainties:** - **Positive Trends:** Improved ethanol prices and yields, reduced operating expenses. - **Negative Trends:** Decreased distillers grains prices and sales, increased capital expenditures. - **Uncertainties:** Volatile commodity prices, trade disputes, regulatory changes, and global economic uncertainty. **Future Operations & Impact:** - **Construction Project:** $4.2M investment to increase efficiencies, expected completion in fall 2025. - **Liquidity:** Sufficient cash on hand and credit facilities to operate for the next 12 months. - **Debt:** No long-term debt, but subject to financial covenants and working capital requirements. - **Hedging:** Active management of commodity price risks through derivative instruments. **Ticker:** HWETH