Pacific Ethanol, Inc. Reports Fourth Quarter and Year-End 2012 Financial Results

Pacific Ethanol, Inc. Reports Fourth Quarter and Year-End 2012 Financial
Results

Company to Hold Earnings Conference Call on April 2nd at 8:00 a.m. PT / 11:00
a.m. ET

SACRAMENTO, Calif., March 27, 2013 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc.
(Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels
in the Western United States, reported its financial results for the quarter
and year ended December 31, 2012.

Neil Koehler, the company's president and CEO, stated: "In 2012, we achieved
the ambitious goals established earlier in the year. We reduced and improved
terms on our plant debt, increased our ownership in the Pacific Ethanol plants
at favorable valuations and continued to drive cost efficiencies at the
plants. We are installing corn oil separation at two of the plants, which will
diversify revenues and increase overall margins. In addition, both as a step
toward qualifying for advanced biofuel and to take advantage of favorable
pricing, we purchased sorghum as feedstock for producing ethanol from local,
Midwest and international markets."

"Although the challenging market environment proved both formidable and
frustrating throughout 2012, our execution on these and other goals helped
minimize the negative impact on Pacific Ethanol's financial results. Now in
2013, we are seeing improvement in production margins. Our primary goals this
year are to continue to improve operating efficiencies, diversify our revenues
and feedstocks, increase product values by furtherreducing the carbon
intensity of our ethanol, and to return the company to profitability."

Financial Results for the Three Months Ended December 31, 2012

Net sales were $197.0 million for the fourth quarter of 2012, compared to
$241.8 million for the fourth quarter of 2011. The decline in net sales is
attributable to both a reduction in total gallons sold and lower average price
per gallon of ethanol sold. Total gallons sold were 102.0 million for the
fourth quarter of 2012, compared to 116.3 million gallons in the fourth
quarter of 2011. Average price per gallon of ethanol sold was $2.52 for the
fourth quarter of 2012, compared to $2.80 in the fourth quarter of 2011.

Gross loss was $4.7 million for the fourth quarter of 2012, compared to gross
profit of $7.4 million in the fourth quarter of 2011. The decrease is
attributable to unfavorable industry production margins.

SG&A expenses were $2.7 million in the fourth quarter of 2012, compared to
$3.7 million for the fourth quarter of 2011. The decrease is attributable to
lower professional fees and lower overhead costs associated with New PE
Holdco, LLC.

Loss available to common stockholders for the fourth quarter of 2012 was $5.8
million, compared to $2.4 million for the fourth quarter of 2011. Adjusted
EBITDA was negative $2.6 million for the fourth quarter of 2012, compared to
negative $0.3 million in the fourth quarter of 2011.

The company's cash balance was $7.6 million at December 31, 2012, compared to
a cash balance of $8.9 million at December 31, 2011.

Financial Results for the Year Ended December 31, 2012

Net sales were $816.0 million, compared to $901.2 million for the same period
in 2011. The decrease in net sales for 2012 was primarily due to a decline in
production gallons sold and lower ethanol sales prices. During 2012, the
company reduced production volumes due to lower industry-wide corn crush
margins resulting from an oversupply of ethanol in relation to demand. Average
ethanol sales price for 2012 was $2.45 per gallon, compared to $2.79 per
gallon in 2011.

2012 gross margin declined to negative 2.4% from positive 2.2% for 2011. The
decline in gross margin was primarily the result of negative corn crush
margins at the Pacific Ethanol Plants for most of the year due to an
oversupply of ethanol in relation to demand.

Selling, general and administrative expenses, or SG&A, for 2012 were $12.1
million, a decrease of $3.3 million as compared to $15.4 million for 2011. The
decline is primarily due to lower legal and noncash compensation expenses.

The company issued warrants and senior convertible notes that were recorded at
fair value, with quarterly adjustments for changes in their fair value,
resulting in income of $2.0 million for 2012 as compared to $7.6 million for
2011. This decrease is primarily due to the retirement of the senior
convertible notes in 2011 upon their conversion.

Interest expense for 2012 was $13.0 million, a decrease of $1.8 million from
$14.8 million for 2011. This decrease is primarily due to decreased average
debt balances under the company's convertible notes and credit facilities.

Loss available to common stockholders for the year ended December 31, 2012 was
$20.3 million, compared to income available to common stockholders of $1.8
million for the same period in 2011. Adjusted EBITDA for the year ended
December 31, 2012 was negative $7.5 million, compared to Adjusted EBITDA of
positive $5.3 million for the same period in 2011.

Q4 Results Conference Call

Management will host a conference call at 8:00 a.m. Pacific Time / 11:00 a.m.
Eastern Time on Tuesday, April 2, 2013. Neil Koehler, Chief Executive Officer,
and Bryon McGregor, Chief Financial Officer, will deliver prepared remarks
followed by a question and answer session. The webcast for the call can be
accessed from Pacific Ethanol's website at www.pacificethanol.net.
Alternatively, you may dial the following number up to ten minutes prior to
the scheduled conference call time: (877) 847-6066. International callers
should dial 00-1- (970) 315-0267. The pass code will be 23785089#.

If you are unable to participate on the live call, the webcast will be
archived for replay on Pacific Ethanol's website for one year. In addition, a
telephonic replay will be available at 2:30 p.m. Eastern Time on Tuesday,
April 2, 2013 through 11:59 p.m. Eastern Time on Tuesday, April 9, 2013. To
access the replay, please dial (855) 859-2056. International callers should
dial 00-1-(404) 537-3406. The pass code will be 23785089#.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

Management believes that certain financial measures not in accordance with
generally accepted accounting principles ("GAAP") are useful measures of
operations. The company defines Adjusted EBITDA as unaudited earnings before
interest, taxes, depreciation and amortization and fair value adjustments. The
table at the end of this release provides a reconciliation of Adjusted EBITDA
to net income (loss) attributed to Pacific Ethanol, Inc. Management provides
an Adjusted EBITDA measure so that investors will have the same financial
information that management uses, which may assist investors in properly
assessing the company's performance on a period-over-period basis. Adjusted
EBITDA is not a measure of financial performance under GAAP, and should not be
considered an alternative to net income (loss) or any other measure of
performance under GAAP, or to cash flows from operating, investing or
financing activities as an indicator of cash flows or as a measure of
liquidity. Adjusted EBITDA has limitations as an analytical tool and you
should not consider it in isolation or as a substitute for analysis of the
company's results as reported under GAAP.

About Pacific Ethanol, Inc.

Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading marketer and producer of
low-carbon renewable fuels in the Western United States. Pacific Ethanol also
sells co-products, including wet distillers grain ("WDG"), anutritious animal
feed. Serving integrated oil companies and gasoline marketers who blend
ethanol into gasoline, Pacific Ethanol provides transportation, storage and
delivery of ethanol through third-party service providers in the Western
United States, primarily in California, Arizona, Nevada, Utah, Oregon,
Colorado, Idaho and Washington. Pacific Ethanol has an 80% ownership interest
in New PE Holdco LLC, the owner of four ethanol production facilities. Pacific
Ethanol operates and manages the four ethanol production facilities, which
have a combined annual production capacity of 200 million gallons. The
facilities in operation are located in Boardman, Oregon, Burley, Idaho and
Stockton, California, and one idled facility is located in Madera, California.
The facilities are near their respective fuel and feed customers, offering
significant timing, transportation cost and logistical advantages. Pacific
Ethanol's subsidiary, Kinergy Marketing LLC, markets ethanol from Pacific
Ethanol's managed plants and from other third-party production facilities, and
another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more
information please visit www.pacificethanol.net.

The Pacific Ethanol, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5940

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

With the exception of historical information, the matters discussed in this
press release including, without limitation, the ability of Pacific Ethanol to
continue as the leading marketer and producer of low-carbon renewable fuels in
the Western United States; and Pacific Ethanol's ability to diversify its
revenue streams and increase marginsare forward-looking statements and
considerations that involve a number of risks and uncertainties. The actual
future results of Pacific Ethanol could differ from those statements. Factors
that could cause or contribute to such differences include, but are not
limited to, adverse economic and market conditions; changes in governmental
regulations and policies; and other events, factors and risks previously and
from time to time disclosed in Pacific Ethanol's filings with the Securities
and Exchange Commission including, specifically, those factors set forth in
the "Risk Factors" section contained in Pacific Ethanol's Form 10-K filed with
the Securities and Exchange Commission on March 8, 2012 and Form 10-Q filed
with the Securities and Exchange Commission on November 14, 2012.

                               (Tables follow)

PACIFIC ETHANOL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)

                                     Three Months Ended  Years Ended
                                      December 31,        December 31,
                                     2012      2011      2012       2011
                                                                 
Net sales                             $197,018 $241,798 $816,044  $901,188
Cost of goods sold                    201,725  234,434  835,568   881,789
Gross profit (loss)                   (4,707)  7,364    (19,524)  19,399
Selling, general and administrative   2,741    3,685    12,141    15,427
expenses
Income (loss) from operations         (7,448)  3,679    (31,665)  3,972
Fair value adjustments                1,602    591      1,954     7,559
Interest expense, net                 (3,669)  (3,476)  (13,049)  (14,813)
Other expense, net                    (96)     (32)     (595)     (741)
Income (loss) before provision for    (9,611)  762      (43,355)  (4,023)
income taxes
Provision for income taxes            —        —        —         —
Consolidated net income (loss)        (9,611)  762      (43,355)  (4,023)
Net (income) loss attributed to
noncontrolling interest in variable   4,107    (2,808)  24,298    7,097
interest entity
Net income (loss) attributed to       $(5,504) $(2,046) $(19,057) $3,074
Pacific Ethanol
Preferred stock dividends             $(319)   $(319)   $(1,268)  $(1,265)
Income (loss) available to common     $(5,823) $(2,365) $(20,325) $1,809
stockholders
Net income (loss) per share, basic    $(0.04)  $(0.03)  $(0.19)  $0.05
and diluted
Weighted-average shares outstanding,  144,428  70,946   108,358   33,733
basic and diluted
Weighted-average shares outstanding,  144,428  70,946   108,358   33,984
basic and diluted



PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except par value)

                                                          December 31,
ASSETS                                                     2012      2011
Current Assets:                                                     
Cash and cash equivalents                                  $7,586   $8,914
Accounts receivable, net                                   26,051    28,140
Inventories                                                16,244    16,131
Prepaid inventory                                          5,422     9,239
Other current assets                                       2,129     3,994
Total current assets                                       57,432    66,418
Property and equipment, net                                150,409   159,617
Other Assets:                                                       
Intangible assets, net                                     3,734     4,458
Other assets                                               3,388     1,983
Total other assets                                         7,122     6,441
Total Assets                                               $214,963 $232,476
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY                                
Current Liabilities:                                                
Accounts payable                                           $5,104   $5,519
Accrued liabilities                                        3,282     2,713
Accrued preferred dividends                                —         7,315
Current portion – long-term debt                           4,029     750
Total current liabilities                                  12,415    16,297
                                                                   
Long-term debt, net of current portion                     117,253   93,689
Accrued preferred dividends                                5,852     —
Warrant liabilities                                        4,892     1,921
Other liabilities                                          1,644     1,305
Total Liabilities                                          142,056   113,212
                                                                   
Stockholders' Equity:                                               
Preferred stock, $0.001 par value; 10,000 shares
authorized;
Series A: 0 shares issued and outstanding as of            1         1
December31, 2012 and 2011
Series B: 927 shares issued and outstanding as of December
31, 2012 and 2011
Common stock, $0.001 par value; 300,000 shares authorized;
146,841 and 86,632 shares issued and outstanding as of     147       87
December31, 2012 and 2011, respectively
Additional paid-in capital                                 582,724   556,871
Accumulated deficit                                        (530,310) (509,985)
Total Pacific Ethanol, Inc. stockholders' equity           52,562    46,974
Noncontrolling interest in variable interest entity        20,345    72,290
Total stockholders' equity                                 72,907    119,264
Total Liabilities and Stockholders' Equity                 $214,963 $232,476
                                                                   



Reconciliation of Adjusted EBITDA to Net Income (Loss)
                                                         
                                      Three Months Ended  Years Ended
                                      December 31,        December 31,
(in thousands) (unaudited)            2012      2011      2012        2011
Net income (loss) attributed to        $(5,504) $(2,046) $(19,057) $3,074
Pacific Ethanol
Adjustments:                                                        
Interest expense*                      2,480     1,381     7,045       6,136
Interest income*                       —         (8)       (3)         (9)
Fair value adjustments                 (1,602)   (591)     (1,954)     (7,559)
Depreciation and amortization expense* 2,074    962      6,463      3,611
Total adjustments                      2,952    1,744    11,551     2,179
Adjusted EBITDA                        $(2,552) $(302)   $(7,506)   $5,253

* Adjusted for noncontrolling interest in variable interest entity.



Commodity Price Performance

                                         Three Months Ended Years Ended
                                          December 31,       December 31,
(unaudited)                             2012      2011     2012     2011
Ethanol production gallons sold (in      34.6      37.8     140.6    150.8
millions)
Ethanol third party gallons sold (in     67.4      78.5     300.2    273.3
millions)
Total ethanol gallons sold (in millions) 102.0     116.3    440.8    424.1
                                                                  
Ethanol average sales price per gallon   $2.52    $2.80   $2.45   $2.79
Corn cost – CBOT equivalent              $7.39    $6.22   $6.89   $6.76
                                                                  
Total co-product tons sold (in           310.9    362.0   1,253.6 1,401.5
thousands)
Co-product return % (1)                  28.8%     26.2%    26.8%    23.6%

(1) Co-product revenue as a percentage of delivered cost of corn.

CONTACT: Company IR Contact:
         Pacific Ethanol, Inc.
         916-403-2755
         866-508-4969
         Investorrelations@pacificethanol.net
        
         IR Agency Contact:
         Becky Herrick
         LHA
         415-433-3777
        
         Media Contact:
         Paul Koehler
         Pacific Ethanol, Inc.
         916-403-2790
         paulk@pacificethanol.net

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