Pacific Ethanol, Inc. Reports Second Quarter 2013 Financial Results

Pacific Ethanol, Inc. Reports Second Quarter 2013 Financial Results

  *Increased net sales 14% over second quarter 2012
  *Improved quarterly gross profit to $7.0 million, compared to loss of $4.9
    million in second quarter 2012
  *Increased operating income to $3.8 million, compared to a loss of $8.0
    million in second quarter 2012
  *Achieved consolidated net income of $1.1 million, compared to loss of
    $10.0 million in second quarter 2012
  *Improved Adjusted EBITDA to $6.6 million, compared to a loss of $1.5
    million in second quarter 2012
  *Extended all remaining Plant debt due in 2013 to 2016
  *Retired or repaid approximately $13.5 million in debt
  *Began producing and selling corn oil at Magic Valley plant

SACRAMENTO, Calif., July 24, 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 three-
and six-months ended June 30, 2013.

Neil Koehler, the company's president and CEO, stated: "For the second quarter
of 2013, we significantly increased our gross profit, operating income, net
income and adjusted EBITDA. These improvements were driven by better market
conditions, more favorable ethanol pricing, our continued focus on operating
efficiencies and our increased plant ownership position. We also improved our
balance sheet by extending all remaining plant debt due in 2013 to 2016, and
we retired or repaid approximately $13.5 million in debt."

"We made significant progress on our objectives to diversify our revenues and
feedstock. In June, we began producing and selling corn oil at our Magic
Valley plant, and we expect to begin production of corn oil at our Stockton
plant in the third quarter of 2013. We continue to diversify our feedstock as
we increase our blend of sorghum sourced from local, Midwest and international
markets. We believe these efforts, combined with our focus on reducing the
carbon intensity of ethanol we produce, will support profitable growth."

Financial Results for the Three Months Ended June 30, 2013

Net sales were $233.8 million for the second quarter of 2013, compared to
$205.4 million for the second quarter of 2012. The increase in net sales was
attributable to a higher average price per gallon of ethanol sold, which was
partially offset by a reduction in total gallons sold.

Gross profit was $7.0 million for the second quarter of 2013, compared to a
loss of $4.9 million in the second quarter of 2012. The increase is
attributable to significantly improved commodity margins from the Pacific
Ethanol plants. SG&A expenses were $3.1 million in the second quarter of 2013,
which were flat compared to the second quarter of 2012. Operating income for
the second quarter of 2013 was $3.8 million, compared to an operating loss of
$8.0 million for the same period in 2012, again, primarily due to
significantly improved commodity margins at the Pacific Ethanol plants.

Income available to common stockholders for the second quarter of 2013 was
$0.7 million, compared to a loss of $2.9 million for the second quarter of
2012.

Adjusted EBITDA improved to positive $6.6 million for the second quarter of
2013, compared to Adjusted EBITDA of negative $1.5 million in the second
quarter of 2012.

Financial Results for the Six Months Ended June 30, 2013

For the six months ended June 30, 2013, net sales were $459.3 million,
compared to $403.2 million for the same period in 2012. For the first six
months of 2013, loss available to common stockholders was $5.0 million,
compared to $8.2 million for the same period in 2012.

Adjusted EBITDA for the first six months of 2013 was positive $6.9 million,
compared to Adjusted EBITDA of negative $4.1 million for the first six months
of 2012.

Q2 Results Conference Call

Management will host a conference call at 8:00 a.m. PT/11:00 a.m. ET on July
25, 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 20876091#.

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 July 25, 2013
through 11:59 p.m. Eastern Time on August 1, 2013. To access the replay,
please dial (855) 859-2056. International callers should dial 00-1-(404)
537-3406. The pass code will be 20876091#.

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, noncash gain (loss) on debt
extinguishments and fair value adjustments and warrant inducements. 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"), a nutritious 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 85% 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.

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 whether Pacific Ethanol's production and sale
of corn oil, diversification of feedstock and continued focus on reducing the
carbon intensity of produced ethanol will support profitable growth are
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, including for ethanol and its co-products, and in particular,
low-carbon rated ethanol; raw material costs; 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 April 1, 2013.

                               (Tables follow)

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

                                    Three Months Ended  Six Months Ended
                                     June 30,            June 30,
                                    2013      2012      2013      2012
                                                               
Net sales                            $233,808 $205,447 $459,267 $403,166
Cost of goods sold                   226,843  210,347  451,456  415,543
Gross profit (loss)                  6,965   (4,900)  7,811   (12,377)
Selling, general and administrative  3,133    3,124    7,138    6,502
expenses
Income (loss) from operations        3,832   (8,024)  673   (18,879)
Fair value adjustments and warrant   1,437    1,285    745    1,252
inducements
Interest expense, net                (3,972)  (3,093)  (7,453)  (6,002)
Gain (loss) on extinguishments of    (39)    —      778     —
debt
Other expense, net                   (128)    (200)    (215)    (394)
Income (loss) before provision for   1,130  (10,032) (5,472) (24,023)
income taxes
Provision for income taxes           —        —        —        —
Consolidated net income (loss)       1,130  (10,032) (5,472)  (24,023)
Net (income) loss attributed to
noncontrolling interest in variable  (79)     7,403    1,069    16,441
interest entity
Net income (loss) attributed to      $1,051   $(2,629) $(4,403) $(7,582)
Pacific Ethanol
Preferred stock dividends            $(315)   $(315)   $(627)   $(630)
Income (loss) available to common    $736    $(2,944) $(5,030) $(8,212)
stockholders
Net income (loss) per share, basic   $0.07    $(0.51)  $(0.48) $(1.43)
and diluted
Weighted-average shares outstanding, 10,853   5,759    10,462   5,754
basic
Weighted-average shares outstanding, 12,135   5,759    10,462   5,754
diluted


PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
                                                                
                                                       June 30,  December 31,
ASSETS                                                  2013      2012
Current Assets:                                                  
Cash and cash equivalents                               $6,983   $7,586
Accounts receivable, net                                36,192    26,051
Inventories                                             19,148    16,244
Prepaid inventory                                       6,338     5,422
Other current assets                                    2,774     2,129
Total current assets                                    71,435    57,432
Property and equipment, net                             150,915   150,409
Other Assets:                                                    
Intangible assets, net                                  3,497     3,734
Other assets                                            4,550     3,388
Total other assets                                      8,047     7,122
Total Assets                                            $230,397 $214,963

LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current Liabilities:                                             
Accounts payable – trade                                $10,571  $5,104
Accrued liabilities                                     3,918     3,282
Current portion – long-term debt                        6,405     4,029
Total current liabilities                               20,894    12,415
                                                                
Long-term debt, net of current portion                  113,188   117,253
Accrued preferred dividends                             5,120     5,852
Warrant liabilities and conversion features             10,427    4,892
Other liabilities                                       6,896     1,644
Total Liabilities                                       156,525   142,056
                                                                
Stockholders' Equity:                                            
Pacific Ethanol, Inc. Stockholders' Equity:                      
Preferred stock, $0.001 par value; 10,000 shares                 
authorized;
Series A: 0 shares issued and outstanding as ofJune             
30, 2013 and December31, 2012
Series B: 927 shares issued and outstanding as of June  1         1
30, 2013 and December 31, 2012
Common stock, $0.001 par value; 300,000 shares
authorized; 11,918 and 9,789 shares issued and          12        10
outstanding as of June 30, 2013 and December31, 2012,
respectively
Additional paid-in capital                              600,846   582,861
Accumulated deficit                                     (535,340) (530,310)
Total Pacific Ethanol, Inc. Stockholders' Equity        65,519    52,562
Noncontrolling interest in variable interest entity     8,353     20,345
Total Stockholders' Equity                              73,872    72,907
Total Liabilities and Stockholders' Equity              $230,397 $214,963


Reconciliation of Adjusted EBITDA to Net Income (Loss)

                                     Three Months Ended Six Months Ended
                                     June 30,           June 30,
(in thousands) (unaudited)           2013     2012      2013       2012
Net income (loss) attributed to       $1,051 $(2,629) $(4,403) $(7,582)
Pacific Ethanol
Adjustments:                                                     
Interest expense*                    3,393    1,193     6,125      2,342
Interest income*                     ----     (3)       ----       (3)
Extinguishment of debt - noncash     1,037    ----      1,037      ----
Fair value adjustments               (1,437)  (1,285)   (745)      (1,252)
Depreciation and amortization        2,529   1,195    4,915     2,433
expense*
Total adjustments                    5,522   1,100    11,332  3,520
Adjusted EBITDA                       $6,573 $(1,529) $6,929    $(4,062)
________________
* Adjusted for noncontrolling interest in variable interest entity.


Commodity Price Performance

                                          Three Months Ended Six Months Ended
                                           June 30,           June 30,
(unaudited)                               2013      2012     2013     2012
Ethanol production gallons sold (in       36.8      37.2     72.1     72.5
millions)
Ethanol third party gallons sold (in      64.4      79.4     129.9    158.9
millions)
Total ethanol gallons sold (in millions)  101.2     116.6    202.0    231.4
                                                                   
Ethanol average sales price per gallon    $2.79    $2.30   $2.69   $2.32
Corn cost – CBOT equivalent               $6.55    $6.10   $6.85   $6.28
                                                                   
Total co-product tons sold (in thousands) 337.4   342.2   638.3  647.6
Co-product return % (1)                   27.6%     26.6%    27.9%    25.6%
________________                                                    
(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.
         503-235-8241
         paulk@pacificethanol.net

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