Southwest Iowa Renewable Energy, LLC Announces Financial Results for the Fiscal Year Ended September 30, 2011

COUNCIL BLUFFS, Iowa, Nov. 22, 2011 /PRNewswire/ --On November 22, 2011, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its financial results for the fiscal year ended September 30, 2011 ("Fiscal 2011"). SIRE reported a net loss of $2,707,306 or $206.05 per unit, compared to a net loss of $8,951,362 or $681.28 per unit for the fiscal year ended September 30, 2010 ("Fiscal 2010"). The cash flow from operations for Fiscal 2011 was $25,307,440 compared to ($1,797,177) for Fiscal 2010; with the overall cash flow for Fiscal 2011 of $7,574,046 as compared to ($4,022,540) for Fiscal 2010.

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Adjusted EBITDA, which is defined as earnings before interest, income taxes, and depreciation and/or amortization, or EBITDA, as adjusted for unrealized hedging losses (gains) was$26,297,767 for Fiscal 2011 and $18,895,097 for Fiscal 2010. SIRE had $11.01 million in cash and equivalents and $12.25 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) as well as an additional $6.25 million available under uncommitted loan agreements at September 30, 2011. For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see "Adjusted EBITDA" below.

Brian Cahill, SIRE's General Manager and CEO, stated, "As we look back on Fiscal 2011, we can recap it best by noting the strong strides we have made in improving our liquidity and in reducing our debt in the midst of extremely volatile commodity prices. The continuing improvement in the cash flow from operations allowed us to have a net reduction of approximately $14.6 million on our debt during the year ended September 30, 2011."

About Southwest Iowa Renewable Energy, LLC:

SIRE is an Iowa limited liability company, located in Council Bluffs, Iowa, formed in March, 2005 to construct and operate a 110 million gallon capacity ethanol plant. SIRE began producing ethanol in February, 2009 and sells its ethanol, modified wet distillers grains with solubles, corn syrup, and corn oil in the continental United States. SIRE also sells its dried distillers grains with solubles in the continental United States, Mexico and the Pacific Rim.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "1995 Act").Such statements are made in good faith by SIREand are identified as including terms such as "may," "will," "should," "expects," "anticipates," "estimates," "plans," or similar language.In connection with these safe-harbor provisions, SIREhas identified in its Annual Report on Form 10-K for the fiscal year ended September 30, 2011, important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of SIRE, including, without limitation, the risk andnature of SIRE's business ,andthe effects of general economic conditions on SIRE.The forward-looking statements contained in this Press Releaseare included in the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").SIRE further cautions that such factors are not exhaustive or exclusive.SIRE does not undertake to update any forward-looking statement which may be made from time to time by or on behalf of SIRE.

Summary Balance Sheets Southwest Iowa Renewable Energy, LLC Balance Sheets - September 30, 2011 and 2010
		2011			2010
ASSETS
CURRENT ASSETS Cash and cash equivalents	$	11,006,590		$	3,432,544
Restricted cash		301,361			-
Accounts receivable		224,176			-
Accounts receivable, related party		17,642,245			23,392,670
Due from broker		3,428,450			2,260,015
Inventory		11,198,147			8,013,153
Derivative financial instruments, related party		-			688,039
Prepaid expenses and other		1,107,354			533,513
Total current assets		44,908,323			38,319,934
PROPERTY AND EQUIPMENT
Land		2,064,090			2,064,090
Plant, building, and equipment		203,749,761			199,771,260
Office and other equipment		742,360			720,529
		206,556,211			202,555,879
Accumulated depreciation		(42,293,441)			(28,757,303)
		164,262,770			173,798,576
OTHER ASSETS
Other		-			1,142,388
Financing costs, net of amortization of $1,859,426 and $1,467,677, respectively		1,538,733			1,930,482
Total other assets		1,538,733			3,072,870
TOTAL ASSETS	$	210,709,826		$	215,191,380
LIABILITIES AND MEMBERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	2,090,561		$	978,388
Accounts payable, related parties		5,239,128			2,542,055
Derivative financial instruments, related party		2,097,075			-
Derivative financial instruments		2,875,075			75,125
Accrued expenses		2,615,092			2,624,916
Accrued expenses, related parties		3,831,583			2,913,206
Current maturities of notes payable		21,236,780			18,058,574
Total current liabilities		39,985,294			27,192,264
NOTES PAYABLE, less current maturities		121,400,805			135,868,087
OTHER		600,010			700,006
		122,000,815			136,568,093
COMMITMENTS
MEMBERS' EQUITY
Members' capital, 13,139 units issued & outstanding		76,474,111			76,474,111
Earnings (deficit)		(27,750,394)			(25,043,088)
		48,723,717			51,431,023
	$	210,709,826		$	215,191,380

Financial Results
		Year Ended September 30, 2011			Year Ended September 30, 2010
Revenues	$	333,088,857		$	207,833,200
Cost of Goods Sold
Cost of goods sold - non hedging		327,923,835			205,108,935
Realized & unrealized hedging (gains)		(6,325,414)			(2,036,833)
Cost of Goods Sold		321,598,421			203,072,102
Gross Margin		11,490,436			4,761,098
General and administrative expenses		4,357,402			4,540,205
Operating income (loss)		7,133,034			220,893
Other income and (expense):
Interest income		17,835			46,473
Other income		43,531			130,032
Interest expense		(9,901,706)			(9,348,760)
		(9,840,340)			(9,172,255)
Net (loss)	$	(2,707,306)		$	(8,951,362)
Weighted average units outstanding		13,139			13,139
Net (loss) per unit - basic and diluted	$	(206.05)		$	(681.28)

Management uses Adjusted EBITDA, a non-GAAP measure, to measure the Company's financial performance and to internally manage its business. Management believes that adjusted EBITDA provides useful information to investors as a measure of comparison with peer and other companies. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with generally accepted accounting principles. Adjusted EBITDA calculations may vary from company to company. Accordingly, our computation of Adjusted EBITDA may not be comparable with a similarly-titled measure of another company.

The following sets forth the reconciliation of Net Loss to Adjusted EBITDA for the periods indicated:

		Year Ended September 30, 2011					Year Ended September 30, 2010
		Amounts					Amounts
Net income (loss)	$	(2,707,306)				$	(8,951,362)
Interest Expense		9,883,871					9,302,287
Depreciation		13,536,138					19,157,086
EBITDA	$	20,712,703				$	19,508,011
Unrealized hedging losses (gains)		5,585,064					(612,914)
Adjusted EBITDA	$	26,297,767				$	18,895,097
Adjusted EBITDA per unit	$	2,001.50				$	1,438.09

Statistical Information
		Year Ended September 30, 2011							Year Ended September 30, 2010
		Gallons/Tons Sold		% of Revenues		Gallons/Tons Average Price			Gallons/Tons Sold		% of Revenues			Gallons/Tons Average Price
Statistical Revenue Information
Denatured Ethanol		114,506,382		81%	$	2.36			110,764,875		84%		$	1.58
Dry Distiller's Grains		305,929		17%	$	173			302,223		16%		$	103
Corn Oil		5,858		2%	$	894			0		0%		$	0

SOURCE Southwest Iowa Renewable Energy, LLC