Pacific Ethanol, Inc. Reports Third Quarter 2013 Financial Results

Pacific Ethanol, Inc. Reports Third Quarter 2013 Financial Results

  *Grew net sales $18.0 million over third quarter 2012 to $233.9 million
  *Improved gross profit $6.0 million over third quarter 2012 to $3.5 million
  *Improved operating income $6.3 million over third quarter 2012 to $1.0
    million
  *Improved adjusted EBITDA $4.3 million over third quarter 2012 to $3.4
    million
  *Retired a combined $8.4 million of senior and convertible debt
  *Began production of corn oil at the Stockton plant
  *Purchased surplus raw beet sugar for use as ethanol feedstock

SACRAMENTO, Calif., Nov. 6, 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 nine-months ended September 30, 2013.

Neil Koehler, the company's president and CEO, stated: "Our results for the
third quarter of 2013 reflect an improved market environment and the positive
impact of our increased ownership of the Pacific Ethanol plants over the
year-ago period. We further diversified our revenue and feedstock as sorghum
contributed significantly to our feedstock supply during the quarter, and we
began production of corn oil at our Stockton plant in October. More recently,
we purchased surplus raw beet sugar to be blended with corn for use as ethanol
feedstock. We made the purchase at a significant discount to the cost of corn
and hedged our position to lock in at least $3 million in feedstock cost
savings in 2014."

"California's Low-Carbon Fuel Standard has been instrumental in driving
innovation to reduce the carbon intensity of fuel. Oregon and Washington
recently joined California and British Columbia by agreeing to implement their
own low-carbon fuel standards with the vision of building an integrated market
for low-carbon fuels on the West Coast, which is an exciting growth
opportunity for Pacific Ethanol," added Koehler.

Financial Results for the Three Months Ended September 30, 2013

Net sales were $233.9 million for the third quarter of 2013, compared to
$215.9 million for the third quarter of 2012. The increase in net sales was
attributable to an increase in production gallons sold, slightly offset by a
reduction in average sales price per gallon.

Gross profit was $3.5 million for the third quarter of 2013, compared to a
loss of $2.4 million in the third quarter of 2012. The improvement in gross
margin was tempered by a decline in ethanol prices, uncommonly high corn basis
costs and related derivative losses.

SG&A expenses were $2.5 million in the third quarter of 2013, down from $2.9
million in the third quarter of 2012.

Operating income for the third quarter of 2013 was $1.0 million, compared to
an operating loss of $5.3 million for the same period in 2012.

Loss available to common stockholders for the third quarter of 2013 was $5.3
million including a $2.6 million non-cash loss on extinguishments of debt,
compared to $6.3 million for the third quarter of 2012.

Adjusted EBITDA improved to positive $3.4 million for the third quarter of
2013, compared to Adjusted EBITDA of negative $0.9 million in the third
quarter of 2012.

Bryon McGregor, the company's CFO, stated: "During the third quarter, we made
significant progress on our goal to strengthen our balance sheet. We retired
nearly $1 million in senior debt and $7.5 million of our original $14 million
in convertible notes. An additional $2.3 million under our convertible notes
was converted subsequent to quarter end, leaving only $250,000 outstanding."

Financial Results for the Nine Months Ended September 30, 2013

For the nine months ended September 30, 2013, net sales were $693.1 million,
compared to $619.0 million for the same period in 2012. For the first nine
months of 2013, loss available to common stockholders was $10.3 million,
compared to $14.5 million for the same period in 2012.

Adjusted EBITDA for the first nine months of 2013 was positive $10.4 million,
compared to Adjusted EBITDA of negative $5.0 million for the first nine months
of 2012.

Q3 Results Conference Call

Management will host a conference call at 8:00 a.m. PT/11:00 a.m. ET on
November 7, 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 94453896#.

If you are unable to listen to 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 2:00 p.m. Eastern Time on November 7, 2013 through
11:59 p.m. Eastern Time on November 14, 2013. To access the replay, please
dial (855) 859-2056. International callers should dial 00-1-(404) 537-3406.
The pass code will be 94453896#.

Reconciliation of Adjusted EBITDA to Net 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
extinguishments of debt and fair value adjustments and warrant inducements.
The table at the end of this release provides a reconciliation of Adjusted
EBITDA to net 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 an integrated market for low-carbon
fuels on the West Coast will develop and be a growth opportunity for Pacific
Ethanolare 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 Nine Months Ended
                                       September 30,      September 30,
                                       2013      2012     2013      2012
                                                                 
Net sales                               $233,880  $215,860 $693,147  $619,026
Cost of goods sold                      230,357   218,300  681,813   633,843
Gross profit (loss)                     3,523     (2,440)  11,334    (14,817)
Selling, general and administrative     2,511     2,898    9,649     9,400
expenses
Income (loss) from operations           1,012     (5,338)  1,685     (24,217)
Fair value adjustments and warrant      762       (900)    1,507     352
inducements
Interest expense, net                   (4,530)   (3,378)  (11,983)  (9,380)
Loss on extinguishments of debt         (2,573)   —       (1,795)   —
Other expense, net                      (106)     (105)    (321)     (499)
Loss before provision for income taxes  (5,435)   (9,721)  (10,907)  (33,744)
Provision for income taxes              —        —       —         —
Consolidated net loss                   (5,435)   (9,721)  (10,907)  (33,744)
Net loss attributed to noncontrolling   464       3,750    1,533     20,191
interest in variable interest entity
Net loss attributed to Pacific Ethanol  $(4,971)  $(5,971) $(9,374)  $(13,553)
Preferred stock dividends               $(319)    $(319)   $(946)    $(949)
Loss available to common stockholders   $(5,290)  $(6,290) $(10,320) $(14,502)
Net loss per share, basic and diluted   $(0.40)   $(0.82)  $(0.91)   $(2.26)
Weighted-average shares outstanding,    13,177    7,712    11,380    6,414
basic and diluted

                                                                
PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
                                                                
                                                   September 30, December 31,
ASSETS                                              2013          2012
Current Assets:                                                  
Cash and cash equivalents                           $9,175        $7,586
Accounts receivable, net                            27,102        26,051
Inventories                                         13,729        16,244
Prepaid inventory                                   11,232        5,422
Other current assets                                2,036         2,129
Total current assets                                63,274        57,432
Property and equipment, net                         156,309       150,409
Other Assets:                                                    
Intangible assets, net                              3,378         3,734
Other assets                                        3,508         3,388
Total other assets                                  6,886         7,122
Total Assets                                        $226,469      $214,963
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current Liabilities:                                             
Accounts payable – trade                            $8,579        $5,104
Accrued liabilities                                 3,198         3,282
Current portion – capital leases                    5,129         —
Current portion – long-term debt                    2,133         4,029
Total current liabilities                           19,039        12,415
                                                                
Long-term debt, net of current portion              108,834       117,253
Accrued preferred dividends                         3,657         5,852
Warrant liabilities and conversion features         6,630         4,892
Other liabilities                                   8,154         1,644
Total Liabilities                                   146,314       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 of                  
September 30, 2013 and December 31, 2012
Series B: 927 shares issued and outstanding as of   1             1
September 30, 2013 and December 31, 2012
Common stock, $0.001 par value; 300,000 shares
authorized; 14,737 and 9,789 shares issued and      15            10
outstanding as of September 30, 2013 and December
31, 2012, respectively
Additional paid-in capital                          612,880       582,861
Accumulated deficit                                 (540,630)     (530,310)
Total Pacific Ethanol, Inc. Stockholders' Equity    72,266        52,562
Noncontrolling interest in variable interest entity 7,889         20,345
Total Stockholders' Equity                          80,155        72,907
Total Liabilities and Stockholders' Equity          $226,469      $214,963

                                                                 
Reconciliation of Adjusted EBITDA to Net                          
Loss
                                                                 
                                        Three Months Ended Nine Months Ended
                                        September 30,      September 30,
(in thousands) (unaudited)              2013      2012     2013     2012
Net loss attributed to Pacific Ethanol   $(4,971)  $(5,971) $(9,374) $(13,553)
Adjustments:                                                      
Interest expense*                        3,997     2,223    10,122   4,565
Interest income*                         —         —        —        (3)
Extinguishments of debt – noncash        2,573     —        3,610    —
Fair value adjustments                   (762)     900      (1,507)  (352)
Depreciation and amortization expense*   2,608     1,956    7,523    4,389
Total adjustments                        8,416     5,079    19,748   8,599
Adjusted EBITDA                          $3,445    $(892)   $10,374  $(4,954)
________________                                                  
* Adjusted for noncontrolling interest                            
in variable interest entity.

Commodity Price Performance                                        
                                         Three Months Ended Nine Months Ended
                                         September 30,      September 30,
(unaudited)                             2013      2012     2013     2012
Ethanol production gallons sold (in      37.1      33.5     109.2    106.0
millions)
Ethanol third party gallons sold (in     67.8      73.8     197.7    232.7
millions)
Total ethanol gallons sold (in millions) 104.9     107.3    306.9    338.7
                                                                  
Ethanol average sales price per gallon   $2.62     $2.65    $2.67    $2.43
Average CBOT ethanol price per gallon    $2.23     $2.51    $2.39    $2.29
                                                                  
Corn cost – CBOT equivalent              $5.02     $7.72    $6.22    $6.73
Average basis                            $2.42     $1.17    $1.68    $1.09
Delivered corn cost                      $7.44     $8.89    $7.90    $7.82
                                                                  
Total co-product tons sold (1) (in       335.9     295.1    974.1    942.7
thousands)
Co-product return % (2)                  28.6%     27.1%    28.1%    26.2%
________________                                                   
(1) Includes corn oil.                                            
(2) 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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