Pacific Ethanol, Inc. Reports Record Fourth Quarter and Year-End 2013 Financial Results

Pacific Ethanol, Inc. Reports Record Fourth Quarter and Year-End 2013
Financial Results

  *Reported record quarterly gross profit, operating incomeand adjusted
    EBITDA
  *Reported record annual net sales, gross profit, operating income and
    adjusted EBITDA
  *Announced plan to restart Madera plant in the second quarter of 2014
  *Paid off $23.7 million in debt since the beginning of the fourth quarter
    of 2013

SACRAMENTO, Calif., Feb. 26, 2014 (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 twelve-months ended December 31, 2013.

Neil Koehler, the company's president and CEO, stated: "Our fourth quarter
2013 results cap-off a year of record financial performance and significant
progress for Pacific Ethanol. During 2013, we diversified our feedstock with
sorghum and beet sugar, we added new revenue streamswith corn oil separation,
and we continued to drive cost efficiencies at the plants. These efforts, in
combination with a better market environment for ethanol, translated into
significant improvements in revenue, margins and Adjusted EBITDA on a
year-over-year basis. In light of this progress, we plan to restart operations
at our Madera, California ethanol facility in the second quarter of 2014."

Financial Results for the Three Months Ended December 31, 2013

Net sales were $215.3 million for the fourth quarter of 2013, compared to
$197.0 million for the fourth quarter of 2012. The increase in net sales was
attributable to an increase in production gallons sold, slightly offset by a
reduction in our average sales price per gallon.

Gross profit was a record $21.6 million for the fourth quarter of 2013,
compared to a gross loss of $4.7 million in the fourth quarter of 2012. The
improvement in gross profit was driven by significantly improved production
margins and an increase in production gallons sold.

Selling, general and administrative ("SG&A") expenses were $4.4 million in the
fourth quarter of 2013, compared to $2.7 million in the fourth quarter of
2012. The increase in SG&A expenses reflect year-end compensation expense
partially driven by higher margins and company profitability.

Operating income for the fourth quarter of 2013 was a record $17.2 million,
compared to an operating loss of $7.4 million for the same period in 2012.

Income available to common stockholders for the fourth quarter of 2013 was
$8.3 million, compared to a loss of $5.8 million for the fourth quarter of
2012.

Adjusted EBITDA improved to a record $18.3 million for the fourth quarter of
2013, compared to Adjusted EBITDA of negative $2.6 million in the fourth
quarter of 2012.

Bryon McGregor, the company's CFO, stated: "We continue to make significant
progress in strengthening our balance sheet. During the fourth quarter, we
retired a total of $13.3 million in debt and subsequently paid down another
$10.4 million in plant debt. This deleveraging facilitates our ability to
restart our Madera plant, lowers our cost of borrowing and improves our
profitability. It also aids in our efforts to refinance our plant debt to
further lower our cost of capital and improve liquidity."

Financial Results for the Year Ended December 31, 2013

For the full year 2013, net sales were a record $908.4 million, compared to
$816.0 million for the same period in 2012. Gross profit was a record $32.9
million for 2013, compared to a gross loss of $19.5 million for 2012.
Operating income for 2013 was a record $18.9 million, compared to an operating
loss of $31.7 million for the same period in 2012, representing an improvement
of $50.6 million year-over-year. Loss available to common stockholders for the
full year 2013 was $2.0 million, which included $3.0 millionin loss on
extinguishment of debt, compared to a loss of $20.3 million for the same
period in 2012.

Adjusted EBITDA for the full year 2013 was a record $28.6 million, compared to
Adjusted EBITDA of negative $7.5 million for the same period in 2012.

Q4 Results Conference Call

Management will host a conference call at 8:00 a.m. PT/11:00 a.m. ET on
February 27, 2014. 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 2279206#.

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 Thursday, February 27,
2014 through 11:59 p.m. Eastern Time on Thursday, March 6, 2014. To access the
replay, please dial (855) 859-2056. International callers should dial
00-1-(404) 537-3406. The pass code will be 2279206#.

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 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 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 a 91% 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; our ability to timely restart operations at our
Madera, California plant, which will require, among other things, permit
renewals, significant capital and successful testing and start-up activities;
and the effects of our financial performance and deleveraging on our ability
to refinance our plant debt and lower our cost of capital 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    Years Ended
                                 December 31,          December 31,
                                 2013       2012       2013       2012
                                                               
Net sales                         $215,290 $197,018 $908,437 $816,044
Cost of goods sold                193,694   201,725   875,507   835,568
Gross profit (loss)               21,596    (4,707)   32,930    (19,524)
Selling, general and              4,372     2,741     14,021    12,141
administrative expenses
Income (loss) from operations     17,224    (7,448)   18,909    (31,665)
Fair value adjustments and        (2,520)   1,602     (1,013)   1,954
warrant inducements
Interest expense, net             (3,688)   (3,669)   (15,671)  (13,049)
Loss on extinguishments of debt   (1,240)   —        (3,035)   —
Other expense, net                (31)      (96)      (352)     (595)
Income (loss) before provision    9,745     (9,611)   (1,162)   (43,355)
for income taxes
Provision for income taxes        —        —        —        —
Consolidated net income (loss)    9,745     (9,611)   (1,162)   (43,355)
Net (income) loss attributed to
noncontrolling interest in        (1,152)   4,107     381       24,298
variable interest entity
Net income (loss) attributed to   $8,593   $(5,504) $(781)   $(19,057)
Pacific Ethanol
Preferred stock dividends         $(319)   $(319)   $(1,265) $(1,268)
Income (loss) available to common $8,274   $(5,823) $(2,046) $(20,325)
stockholders
Net income (loss) per share,      $0.55    $(0.60)  $(0.17)  $(2.81)
basic
Net income (loss) per share,      $0.54    $(0.60)  $(0.17)  $(2.81)
diluted
Weighted-average shares           15,081    9,629     12,264    7,224
outstanding, basic
Weighted-average shares           15,293    9,629     12,264    7,224
outstanding, diluted
                                                               

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

                                                    December 31, December 31,
ASSETS                                               2013         2012
Current Assets:                                                  
Cash and cash equivalents                            $5,151     $7,586
Accounts receivable, net                            35,296      26,051
Inventories                                          23,386      16,244
Prepaid inventory                                    12,315      5,422
Other current assets                                 3,229       2,129
Total current assets                                 79,377      57,432
Property and equipment, net                          155,194     150,409
Other Assets:                                                    
Intangible assets, net                               3,260       3,734
Other assets                                         3,218       3,388
Total other assets                                   6,478       7,122
Total Assets                                         $241,049   $214,963
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Current Liabilities:                                             
Accounts payable – trade                             $11,071    $5,104
Accrued liabilities                                  5,851       2,913
Current portion – capital leases                     4,830       —
Current portion – long-term debt                     750         4,029
Other current liabilities                            5,714       369
Total current liabilities                            28,216      12,415
                                                                
Long-term debt, net of current portion               98,408      117,253
Accrued preferred dividends                          3,657       5,852
Capital leases, net of current portion               6,041       —
Warrant liabilities and conversion features          8,215       4,892
Other liabilities                                    1,611       1,644
Total Liabilities                                    146,148     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                  
December 31, 2013 and 2012
Series B: 927 shares issued and outstanding as of    1           1
December 31, 2013 and 2012
Common stock, $0.001 par value; 300,000 shares
authorized; 16,126 and 9,789 shares issued and       16          10
outstanding as of December 31, 2013 and 2012,
respectively
Additional paid-in capital                           621,557     582,861
Accumulated deficit                                  (532,356)   (530,310)
Total Pacific Ethanol, Inc. Stockholders' Equity     89,218      52,562
Noncontrolling interest in variable interest entity  5,683       20,345
Total Stockholders' Equity                           94,901      72,907
Total Liabilities and Stockholders' Equity           $241,049   $214,963
                                                                

Reconciliation of Adjusted EBITDA to Net Income (Loss)

                                   Three Months Ended   Years Ended
                                   December 31,         December 31,
(in thousands) (unaudited)         2013      2012       2013      2012
Net income (loss) attributed to     $8,593  $(5,504) $(781)  $(19,057)
Pacific Ethanol
Adjustments:                                                    
Interest expense*                   3,138    2,480     13,260   7,042
Extinguishments of debt – noncash   1,240    —        4,850    —
Fair value adjustments              2,520    (1,602)   1,013    (1,954)
Depreciation and amortization       2,768    2,074     10,291   6,463
expense*
Total adjustments                   9,666    2,952     29,414   11,551
Adjusted EBITDA                     $18,259 $(2,552) $28,633 $(7,506)
________________                                                
* Adjusted for noncontrolling interest in variable interest entity.
                                                               

Commodity Price Performance
                                         Three Months Ended Years Ended
                                         December 31,       December 31,
(unaudited)                              2013      2012     2013     2012
Ethanol production gallons sold (in       40.5     34.6    149.7   140.6
millions)
Ethanol third party gallons sold (in      66.5     67.4    264.2   300.2
millions)
Total ethanol gallons sold (in millions)  107.0    102.0   413.9   440.8
                                                                  
Ethanol average sales price per gallon    $2.36   $2.52  $2.59  $2.45
Average CBOT ethanol price per gallon     $1.86   $2.36  $2.25  $2.31
                                                                  
Corn cost – CBOT equivalent               $4.35   $7.39  $5.72  $6.89
Average basis                             $1.35   $0.95  $1.60  $1.06
Delivered corn cost                       $5.70   $8.34  $7.32  $7.95
                                                                  
Total co-product tons sold (1) (in        352.8    310.9   1,327.0 1,253.6
thousands)
Co-product return % (2)                   35.2%     28.8%    29.6%    26.8%
________________                                                   
(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.
         916-403-2790
         paulk@pacificethanol.net

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