– Net sales grew 86% over the second quarter of
2015 representing a quarterly record –– Record 233.2 million total
gallons sold for the second quarter of 2016 –– Net income was $4.7
million or $0.11 per share –– Adjusted EBITDA was $20.4 million
–
Pacific Ethanol, Inc. (NASDAQ:PEIX), a leading
producer and marketer of low-carbon renewable fuels in the United
States, reported its financial results for the three- and
six-months ended June 30, 2016.
Neil Koehler, the company’s president and CEO,
stated: “Industry fundamentals have improved since the first
quarter of 2016, and our company was well positioned to deliver
strong operating results. Our success in improving plant
performance across the fleet and realizing significant synergies
from our acquisition of our Midwest assets allowed us to generate
significant operating income within the stronger market
environment. Our scale and diverse base of production and marketing
assets provide us with a unique platform to profitably build our
share of the renewable fuel and co-product markets. We continue to
focus on optimizing our production assets, lowering the carbon
intensity of ethanol we produce and reducing our cost of capital to
create value for our customers and shareholders.”
Financial Results for the Three Months
Ended June 30, 2016Net sales were a record $422.9 million
for the second quarter of 2016, an increase of 86% when compared to
$227.6 million for the second quarter of 2015. This increase was
attributable to record gallons sold from the company’s increased
production capacity from the company’s Midwest assets and higher
third party sales, slightly offset by a lower sales price per
gallon.
Gross profit was $17.7 million for the second
quarter of 2016, compared to $6.3 million for the second quarter of
2015, reflecting improved production margins compared to the prior
year.
Selling, general and administrative ("SG&A")
expenses were $6.1 million for the second quarter of 2016, compared
to $4.0 million for the second quarter of 2015, primarily due to
the additional operations of the company’s Midwest assets.
Operating income for the second quarter of 2016
was $11.6 million, compared to $2.3 million for the second quarter
of 2015.
Interest expense, net for the second quarter of
2016 was $6.5 million, compared to $1.0 million for the second
quarter of 2015. This increase is attributable to term debt assumed
in the company’s acquisition of its Midwest assets.
Benefit for income taxes for the second quarter
of 2016 was $0.2 million, compared to a $0.5 million provision for
income taxes for the second quarter of 2015.
Net income available to common stockholders for
the second quarter of 2016 was $4.7 million, or $0.11 per diluted
share, compared to $0.7 million, or $0.03 per diluted share, for
the second quarter of 2015.
Adjusted EBITDA was $20.4 million for the second
quarter of 2016, compared to $5.4 million for the second quarter of
2015.
Cash and cash equivalents were $31.7 million at
June 30, 2016, compared to $52.7 million at December 31, 2015. The
reduction in cash and cash equivalents reflects debt payments of
over $17 million and capital expenditures of $7.5 million.
Financial Results for the Six Months
Ended June 30, 2016Net sales were $765.2 million for the
first six months of 2016, compared to $433.8 million for the same
period of 2015.
Gross profit was $18.8 million for the first six
months of 2016, compared to $5.3 million for the same period of
2015.
SG&A expenses were $14.5 million for the
first six months of 2016, compared to SG&A expenses of $8.9
million for the same period of 2015.
Operating income for the first six months of
2016 was $4.3 million, compared to an operating loss of $3.6
million for the same period of 2015.
Net loss available to common stockholders was
$8.8 million for the first six months of 2016, compared to $4.0
million for the same period of 2015.
Adjusted EBITDA was $22.0 million for the first
six months of 2016, compared to $2.7 million for the same period of
2015.
Q2 Results Conference
CallManagement will host a conference call at 8:00 a.m.
PT/11:00 a.m. ET on July 28, 2016. 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.com. 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 53709576#.
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 2:00 p.m. Eastern Time on Thursday, July 28, 2016
through 11:59 p.m. Eastern Time on Thursday, August 4, 2016. To
access the replay, please dial (855) 859-2056. International
callers should dial 00-1-(404) 537-3406. The pass code will be
53709576#.
Use of Non-GAAP
MeasuresManagement 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 net income (loss) attributed
to Pacific Ethanol before interest, provision (benefit) for income
taxes, fair value adjustments, and depreciation and amortization. A
table is provided at the end of this release that provides a
reconciliation of Adjusted EBITDA to its most directly comparable
GAAP measure. Management provides this non-GAAP 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 a not measure of financial performance under GAAP, and
should not be considered alternatives 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 this
measure in isolation or as a substitute for analysis of the
company's results as reported under GAAP.
About Pacific Ethanol,
Inc.Pacific Ethanol, Inc. (PEIX) is the leading producer
and marketer of low-carbon renewable fuels in the Western United
States. With the addition of four Midwestern ethanol plants in July
2015, Pacific Ethanol more than doubled the scale of its
operations, entered new markets, and expanded its mission to
advance its position as an industry leader in the production and
marketing of low carbon renewable fuels. Pacific Ethanol owns and
operates eight ethanol production facilities, four in the Western
states of California, Oregon and Idaho, and four in the Midwestern
states of Illinois and Nebraska. The plants have a combined
production capacity of 515 million gallons per year, produce over
one million tons per year of ethanol co-products such as wet and
dry distillers grains, wet and dry corn gluten feed, condensed
distillers solubles, corn gluten meal, corn germ, corn oil,
distillers yeast and CO2. Pacific Ethanol markets and distributes
ethanol and co-products domestically and internationally. Pacific
Ethanol’s subsidiary, Kinergy Marketing LLC, markets all ethanol
for Pacific Ethanol’s plants as well as for third parties, with
over 800 million gallons of ethanol marketed annually based on
historical volumes. Pacific Ethanol’s subsidiary, Pacific Ag.
Products LLC, markets wet and dry distillers grains. For more
information please visit www.pacificethanol.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995Statements and
information contained in this communication that refer to or
include the Pacific Ethanol’s estimated or anticipated future
results or other non-historical expressions of fact are
forward-looking statements that reflect Pacific Ethanol’s current
perspective of existing trends and information as of the date of
the communication. Forward looking statements generally will be
accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “should,” “estimate,” “expect,” “forecast,” “outlook,”
“guidance,” “intend,” “may,” “might,” “will,” “possible,”
“potential,” “predict,” “project,” or other similar words, phrases
or expressions. Such forward-looking statements include, but are
not limited to, market conditions, including the supply of and
demand for ethanol and co-products; growth for these products;
expectations regarding improvements in production assets, carbon
intensity of ethanol produced and costs of capital; and Pacific
Ethanol’s other plans, objectives, expectations and intentions. It
is important to note that Pacific Ethanol’s plans, objectives,
expectations and intentions are not predictions of actual
performance. Actual results may differ materially from Pacific
Ethanol’s current expectations depending upon a number of factors
affecting Pacific Ethanol’s business. These factors include, among
others, adverse economic and market conditions, including for
ethanol and its co-products; fluctuations in the price of oil and
gasoline; raw material costs, including ethanol production input
costs; changes in governmental regulations and policies; and
insufficient capital resources. These factors also include, among
others, the inherent uncertainty associated with financial and
other projections; the anticipated size of the markets and
continued demand for Pacific Ethanol’s products; the impact of
competitive products and pricing; the risks and uncertainties
normally incident to the ethanol production and marketing
industries; changes in generally accepted accounting principles;
successful compliance with governmental regulations applicable to
Pacific Ethanol’s facilities, products and/or businesses; changes
in laws and regulations; changes in tax laws or interpretations
that could increase Pacific Ethanol’s consolidated tax liabilities;
the loss of key senior management or staff; 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 the Company’s Form 10-Q filed
with the Securities and Exchange Commission on May 9, 2016.
[Tables Follow]
PACIFIC ETHANOL,
INC. |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(unaudited, in
thousands, except per share data) |
|
|
Three Months
EndedJune 30, |
|
Six Months
EndedJune 30, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
422,860 |
|
|
$ |
227,621 |
|
|
$ |
765,233 |
|
|
$ |
433,797 |
|
Cost of goods sold |
|
405,156 |
|
|
|
221,367 |
|
|
|
746,460 |
|
|
|
428,530 |
|
Gross profit |
|
17,704 |
|
|
|
6,254 |
|
|
|
18,773 |
|
|
|
5,267 |
|
Selling, general and
administrative expenses |
|
6,148 |
|
|
|
3,993 |
|
|
|
14,465 |
|
|
|
8,898 |
|
Income (loss) from
operations |
|
11,556 |
|
|
|
2,261 |
|
|
|
4,308 |
|
|
|
(3,631 |
) |
Fair value
adjustments |
|
(24 |
) |
|
|
384 |
|
|
|
15 |
|
|
|
211 |
|
Interest expense, net |
|
(6,536 |
) |
|
|
(1,005 |
) |
|
|
(12,769 |
) |
|
|
(2,020 |
) |
Other income (expense),
net |
|
(155 |
) |
|
|
(58 |
) |
|
|
61 |
|
|
|
(187 |
) |
Income (loss) before
provision for income taxes |
|
4,841 |
|
|
|
1,582 |
|
|
|
(8,385 |
) |
|
|
(5,627 |
) |
Provision (benefit) for
income taxes |
|
(245 |
) |
|
|
530 |
|
|
|
(245 |
) |
|
|
(2,170 |
) |
Consolidated net income
(loss) |
|
5,086 |
|
|
|
1,052 |
|
|
|
(8,140 |
) |
|
|
(3,457 |
) |
Net (income) loss
attributed to noncontrolling interests |
|
— |
|
|
|
(42 |
) |
|
|
— |
|
|
|
87 |
|
Net income (loss)
attributed to Pacific Ethanol |
$ |
5,086 |
|
|
$ |
1,010 |
|
|
$ |
(8,140 |
) |
|
$ |
(3,370 |
) |
Preferred stock
dividends |
$ |
(315 |
) |
|
$ |
(315 |
) |
|
$ |
(630 |
) |
|
$ |
(627 |
) |
Income allocated to
participating securities |
$ |
(71 |
) |
|
$ |
(18 |
) |
|
$ |
— |
|
|
$ |
— |
|
Net income (loss)
available to common stockholders |
$ |
4,700 |
|
|
$ |
677 |
|
|
$ |
(8,770 |
) |
|
$ |
(3,997 |
) |
Net income (loss) per
share, basic |
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
(0.21 |
) |
|
$ |
(0.16 |
) |
Net income (loss) per
share, diluted |
$ |
0.11 |
|
|
$ |
0.03 |
|
|
$ |
(0.21 |
) |
|
$ |
(0.16 |
) |
Weighted-average shares
outstanding, basic |
|
42,191 |
|
|
|
24,268 |
|
|
|
42,121 |
|
|
|
24,589 |
|
Weighted-average shares
outstanding, diluted |
|
42,229 |
|
|
|
24,837 |
|
|
|
42,121 |
|
|
|
24,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC ETHANOL, INC. |
CONSOLIDATED BALANCE SHEETS |
(unaudited, in thousands, except par
value) |
|
|
|
|
|
June 30, |
|
|
|
December 31, |
|
ASSETS |
|
2016 |
|
|
|
2015 |
|
Current Assets: |
|
|
Cash and cash equivalents |
$ |
31,673 |
|
|
$ |
52,712 |
|
Accounts receivable, net |
|
71,946 |
|
|
|
61,346 |
|
Inventories |
|
65,928 |
|
|
|
60,820 |
|
Prepaid inventory |
|
10,319 |
|
|
|
5,973 |
|
Income tax receivables |
|
6,114 |
|
|
|
10,654 |
|
Derivative assets |
|
13,299 |
|
|
|
2,081 |
|
Other current assets |
|
4,055 |
|
|
|
4,356 |
|
Total current assets |
|
203,334 |
|
|
|
197,942 |
|
Property
and equipment, net |
|
454,775 |
|
|
|
464,960 |
|
Other Assets: |
|
|
Intangible assets, net |
|
2,678 |
|
|
|
2,678 |
|
Other assets |
|
4,933 |
|
|
|
9,100 |
|
Total other assets |
|
7,611 |
|
|
|
11,778 |
|
Total Assets |
$ |
665,720 |
|
|
$ |
674,680 |
|
|
|
|
|
|
|
|
|
PACIFIC ETHANOL, INC. |
CONSOLIDATED BALANCE SHEETS
(CONTINUED) |
(unaudited, in thousands, except par
value) |
|
|
|
|
June 30, |
December 31, |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
2016 |
|
|
|
2015 |
|
Current Liabilities: |
|
|
Accounts payable – trade |
$ |
23,844 |
|
|
$ |
30,520 |
|
Accrued liabilities |
|
15,156 |
|
|
|
10,072 |
|
Current portion – capital
leases |
|
4,431 |
|
|
|
4,248 |
|
Current portion – long-term
debt |
|
— |
|
|
|
17,003 |
|
Derivative liabilities |
|
12,166 |
|
|
|
1,848 |
|
Accrued PE Op Co. purchase |
|
3,828 |
|
|
|
3,828 |
|
Other current liabilities |
|
6,026 |
|
|
|
5,390 |
|
Total current liabilities |
|
65,451 |
|
|
|
72,909 |
|
|
|
|
Long-term debt, net of current portion |
|
215,041 |
|
|
|
203,861 |
|
Capital
leases, net of current portion |
|
1,921 |
|
|
|
4,183 |
|
Warrant
liabilities at fair value |
|
257 |
|
|
|
273 |
|
Deferred
tax liabilities |
|
1,174 |
|
|
|
1,174 |
|
Other
liabilities |
|
18,261 |
|
|
|
20,736 |
|
Total Liabilities |
|
302,105 |
|
|
|
303,136 |
|
|
|
|
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 June 30, 2016 and December 31,
2015 Series B: 927 shares issued and outstanding as of June
30, 2016 and December 31, 2015 |
|
1 |
|
|
|
1 |
|
Common stock, $0.001 par value;
300,000 shares authorized; 39,617 and 39,352 shares issued and
outstanding as of June 30, 2016 and December 31, 2015,
respectively |
|
40 |
|
|
|
39 |
|
Non-voting common stock, $0.001 par
value; 3,553 shares authorized; 3,540 shares issued and outstanding
as of June 30, 2016 and December 31, 2015, respectively |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
903,683 |
|
|
|
902,843 |
|
Accumulated other comprehensive
income |
|
1,040 |
|
|
|
1,040 |
|
Accumulated deficit |
|
(541,153 |
) |
|
|
(532,383 |
) |
Total Stockholders’ Equity |
|
363,615 |
|
|
|
371,544 |
|
Total Liabilities and
Stockholders’ Equity |
$ |
665,720 |
|
|
$ |
674,680 |
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Income
(Loss) |
|
|
|
|
Three Months
EndedJune 30, |
|
Six Months
EndedJune 30, |
(in
thousands) (unaudited) |
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
Net income (loss)
attributed to Pacific Ethanol |
$ |
5,086 |
|
|
$ |
1,010 |
|
|
|
$ |
(8,140 |
) |
|
$ |
(3,370 |
) |
Adjustments: |
|
|
|
|
Interest expense* |
|
6,536 |
|
|
|
943 |
|
|
|
|
12,769 |
|
|
|
1,864 |
|
Provision (benefit) for income
taxes |
|
(245 |
) |
|
|
530 |
|
|
|
|
(245 |
) |
|
|
(2,170 |
) |
Fair value adjustments |
|
24 |
|
|
|
(384 |
) |
|
|
|
(15 |
) |
|
|
(211 |
) |
Depreciation and amortization
expense* |
|
9,018 |
|
|
|
3,272 |
|
|
|
|
17,669 |
|
|
|
6,564 |
|
Total adjustments |
|
15,333 |
|
|
|
4,361 |
|
|
|
|
30,178 |
|
|
|
6,047 |
|
Adjusted EBITDA |
$ |
20,419 |
|
|
$ |
5,371 |
|
|
|
$ |
22,038 |
|
|
$ |
2,677 |
|
_______________* Adjusted for noncontrolling interests. |
Commodity Price Performance |
|
|
|
|
|
|
Three Months
EndedJune 30, |
|
Six Months
EndedJune 30, |
|
(unaudited) |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Ethanol production gallons
sold (in millions) |
|
122.5 |
|
|
|
47.5 |
|
|
|
235.4 |
|
|
|
92.1 |
|
|
Ethanol third party
gallons sold (in millions) |
|
110.7 |
|
|
|
93.2 |
|
|
|
204.4 |
|
|
|
184.3 |
|
|
Total ethanol gallons sold
(in millions) |
|
233.2 |
|
|
|
140.7 |
|
|
|
439.8 |
|
|
|
276.4 |
|
|
|
|
|
|
|
|
Average ethanol sales
price per gallon |
$ |
1.72 |
|
|
$ |
1.76 |
|
|
$ |
1.63 |
|
|
$ |
1.71 |
|
|
Average CBOT ethanol price
per gallon |
$ |
1.58 |
|
|
$ |
1.58 |
|
|
$ |
1.49 |
|
|
$ |
1.51 |
|
|
|
|
|
|
|
|
Corn cost – CBOT
equivalent |
$ |
3.86 |
|
|
$ |
3.67 |
|
|
$ |
3.76 |
|
|
$ |
3.77 |
|
|
Average basis |
|
0.23 |
|
|
|
0.95 |
|
|
|
0.28 |
|
|
|
0.94 |
|
|
Delivered corn cost |
$ |
4.09 |
|
|
$ |
4.62 |
|
|
$ |
4.04 |
|
|
$ |
4.71 |
|
|
|
|
|
|
|
|
Total co-product tons sold
(in thousands) |
|
686.8 |
|
|
|
372.8 |
|
|
|
1,348.2 |
|
|
|
728.1 |
|
|
Co-product return %
(1) |
|
34.2 |
% |
|
|
32.8 |
% |
|
|
35.2 |
% |
|
|
33.3 |
% |
|
________________(1) Co-product revenue as a percentage of
delivered cost of corn. |
|
Company IR Contact:
Pacific Ethanol, Inc.
916-403-2755
866-508-4969
Investorrelations@pacificethanol.com
IR Agency Contact:
Becky Herrick
LHA
415-433-3777
Media Contact:
Paul Koehler
Pacific Ethanol, Inc.
916-403-2790
paulk@pacificethanol.com
Alto Ingredients (NASDAQ:PEIX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alto Ingredients (NASDAQ:PEIX)
Historical Stock Chart
From Apr 2023 to Apr 2024