Pacific Ethanol Reports Third Quarter 2017 Results
November 07 2017 - 5:38PM
Pacific Ethanol, Inc. (NASDAQ:PEIX), a leading
producer and marketer of low-carbon renewable fuels and
high-quality alcohol products in the United States, reported its
financial results for the three and nine months ended September 30,
2017.
Neil Koehler, Pacific Ethanol’s president and
CEO, stated: “For the third quarter 2017, Pacific Ethanol reported
improving financial performance in light of challenging commodity
margin economics. Combined with the positive impact of the July 3rd
ICP acquisition, we reported year-over-year and sequential
quarterly increases in net sales, gross profit, operating income
and Adjusted EBITDA. We now operate nine plants with a total annual
production capacity of 605 million gallons. Shortly after the ICP
acquisition, we refinanced the associated promissory notes,
strengthening our balance sheet and reducing our cost of
borrowing.”
Financial Results for the Three Months
Ended September 30, 2017 Compared to 2016 The
year-over-year increases reflect the impact of the ICP acquisition,
including higher professional expenses associated with the
acquisition.
- Net sales were $445.4 million, compared to $417.8 million.
- Record total gallons sold of 250.0 million, compared to 243.7
million.
- Record production gallons sold of 141.8 million, compared to
125.5 million.
- Cost of goods sold was $433.4 million, compared to $411.4
million.
- Gross profit was $12.1 million, compared to $6.4 million.
- Selling, general and administrative expenses were $8.7 million,
compared to $6.0 million, reflecting increased benefits, non-cash
compensation and transaction costs associated with the acquisition
of ICP.
- Operating income was $3.3 million, compared to $0.4
million.
- Net loss available to common stockholders was $0.5 million, or
$0.01 per share, compared to $3.8 million, or $0.09 per share.
- Adjusted EBITDA was $13.2 million, compared to $9.3
million.
- Cash and cash equivalents were $56.9 million at September 30,
2017, compared to $68.6 million at December 31, 2016.
Financial Results for the Nine Months
Ended September 30, 2017 Compared to 2016
- Net sales were $1,237.0 million, compared to $1,183.0
million.
- Cost of goods sold was $1,229.0 million, compared to $1,157.9
million.
- Gross profit was $7.9 million, compared $25.1 million.
- Selling, general and administrative expenses were $22.9
million, compared to $20.4 million.
- Operating loss was $15.0 million, compared to operating income
of $4.7 million.
- Net loss available to common stockholders was $22.6 million, or
$0.53 per share, compared to $12.6 million, or $0.30 per
share.
- Adjusted EBITDA was $13.9 million, compared to $31.3
million.
Third Quarter 2017 Results Conference
CallManagement will host a conference call at 8:00 a.m.
Pacific Time/11:00 a.m. Eastern Time on November 8th, 2017. CEO
Neil Koehler and CFO Bryon McGregor 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
7063879#. 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 Wednesday, November 8th, 2017 through
11:59 p.m. Eastern Time on Wednesday, November 15th, 2017. To
access the replay, please dial (855) 859-2056. International
callers should dial 00-1-(404) 537-3406. The pass code will be
7063879#.
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
expense, provision (benefit) for income taxes, asset impairments,
purchase accounting adjustments, fair value adjustments, and
depreciation and amortization expense. 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 not a measure of
financial performance under GAAP, and should not be considered as
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 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 a leading producer and marketer of
low-carbon renewable fuels and high-quality alcohol products in the
United States. Pacific Ethanol owns and operates nine production
facilities, four in the Western states of California, Oregon and
Idaho, and five in the Midwestern states of Illinois and Nebraska.
The plants have a combined production capacity of 605 million
gallons per year, produce over one million tons per year of ethanol
co-products – on a dry matter basis – 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
fuel-grade ethanol, high-quality alcohol products and co-products
domestically and internationally. Pacific Ethanol’s subsidiary,
Kinergy Marketing LLC, markets all ethanol and alcohol products for
Pacific Ethanol’s plants as well as for third parties, approaching
one billion 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
domestic and international demand for ethanol and co-products;
statements about the benefits of Pacific Ethanol’s refinancing of
the ICP promissory notes; and Pacific Ethanol’s 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; export
conditions and international demand for ethanol and co-products;
fluctuations in the price of and demand for oil and gasoline; raw
material costs, including ethanol production input costs and
changes in governmental regulations and policies. 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; 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
Pacific Ethanol’s Form 10-Q filed with the Securities and Exchange
Commission on August 9, 2017.
|
PACIFIC ETHANOL, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited, in thousands, except per
share data) |
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
445,442 |
|
|
$ |
417,806 |
|
|
$ |
1,236,984 |
|
|
$ |
1,183,039 |
|
Cost of goods sold |
|
433,377 |
|
|
|
411,442 |
|
|
|
1,229,039 |
|
|
|
1,157,902 |
|
Gross profit |
|
12,065 |
|
|
|
6,364 |
|
|
|
7,945 |
|
|
|
25,137 |
|
Selling, general and
administrative expenses |
|
8,720 |
|
|
|
5,971 |
|
|
|
22,932 |
|
|
|
20,436 |
|
Income (loss) from
operations |
|
3,345 |
|
|
|
393 |
|
|
|
(14,987 |
) |
|
|
4,701 |
|
Fair value
adjustments |
|
— |
|
|
|
(69 |
) |
|
|
473 |
|
|
|
(53 |
) |
Interest expense,
net |
|
(3,826 |
) |
|
|
(3,874 |
) |
|
|
(9,157 |
) |
|
|
(16,643 |
) |
Other income (expense),
net |
|
(60 |
) |
|
|
32 |
|
|
|
(293 |
) |
|
|
92 |
|
Loss before provision
(benefit) for income taxes |
|
(541 |
) |
|
|
(3,518 |
) |
|
|
(23,964 |
) |
|
|
(11,903 |
) |
Provision (benefit) for
income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(245 |
) |
Consolidated net
loss |
|
(541 |
) |
|
|
(3,518 |
) |
|
|
(23,964 |
) |
|
|
(11,658 |
) |
Net loss attributed to
noncontrolling interests |
|
339 |
|
|
|
— |
|
|
|
2,285 |
|
|
|
— |
|
Net loss attributed to
Pacific Ethanol |
$ |
(202 |
) |
|
$ |
(3,518 |
) |
|
$ |
(21,679 |
) |
|
$ |
(11,658 |
) |
Preferred stock
dividends |
$ |
(319 |
) |
|
$ |
(319 |
) |
|
$ |
(946 |
) |
|
$ |
(949 |
) |
Net loss available to
common stockholders |
$ |
(521 |
) |
|
$ |
(3,837 |
) |
|
$ |
(22,625 |
) |
|
$ |
(12,607 |
) |
Net loss per share,
basic and diluted |
$ |
(0.01 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.30 |
) |
Weighted-average shares
outstanding, basic and diluted |
|
42,475 |
|
|
|
42,226 |
|
|
|
42,358 |
|
|
|
42,156 |
|
|
|
PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS (unaudited, in
thousands, except par value) |
|
|
September 30, |
|
December 31, |
ASSETS |
2017 |
|
2016 |
Current Assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
56,923 |
|
$ |
68,590 |
Accounts receivable, net |
|
72,282 |
|
|
86,275 |
Inventories |
|
71,819 |
|
|
60,070 |
Prepaid inventory |
|
5,622 |
|
|
9,946 |
Income tax receivables |
|
129 |
|
|
5,730 |
Derivative instruments |
|
3,017 |
|
|
978 |
Other current assets |
|
3,026 |
|
|
3,612 |
Total current assets |
|
212,818 |
|
|
235,201 |
Property and equipment, net |
|
509,369 |
|
|
465,190 |
Other Assets: |
|
|
|
|
|
Intangible assets, net |
|
2,678 |
|
|
2,678 |
Other assets |
|
5,785 |
|
|
5,169 |
Total other assets |
|
8,463 |
|
|
7,847 |
Total Assets |
$ |
730,650 |
|
$ |
708,238 |
|
|
PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value) |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
|
December 31, |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
2017 |
|
|
|
2016 |
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable – trade |
$ |
41,178 |
|
|
$ |
37,051 |
|
Accrued liabilities |
|
22,245 |
|
|
|
20,280 |
|
Current portion – capital leases |
|
799 |
|
|
|
794 |
|
Current portion – long-term debt |
|
20,000 |
|
|
|
10,500 |
|
Derivative instruments |
|
2,755 |
|
|
|
4,115 |
|
Accrued PE Op Co. purchase |
|
3,828 |
|
|
|
3,828 |
|
Other current liabilities |
|
1,591 |
|
|
|
2,273 |
|
Total current liabilities |
|
92,396 |
|
|
|
78,841 |
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion |
|
220,304 |
|
|
|
188,028 |
|
Capital leases, net of current portion |
|
134 |
|
|
|
547 |
|
Warrant liabilities at fair value |
|
— |
|
|
|
651 |
|
Other
liabilities |
|
20,915 |
|
|
|
21,910 |
|
Total Liabilities |
|
333,749 |
|
|
|
289,977 |
|
|
|
|
|
|
|
|
|
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, 2017 and
December 31, 2016 Series B: 927 shares issued and
outstanding as of September 30, 2017 and December 31,
2016 |
|
1 |
|
|
|
1 |
|
Common
stock, $0.001 par value; 300,000 shares authorized; 43,971
and 39,772 shares issued and outstanding as of September 30,
2017 and December 31, 2016, respectively |
|
44 |
|
|
|
40 |
|
Non-voting common stock, $0.001 par value; 3,553 shares
authorized; 1 and 3,540 shares issued and outstanding as of
September 30, 2017 and December 31, 2016, respectively |
|
— |
|
|
|
4 |
|
Additional paid-in capital |
|
926,248 |
|
|
|
922,698 |
|
Accumulated other comprehensive loss |
|
(2,620 |
) |
|
|
(2,620 |
) |
Accumulated deficit |
|
(554,858 |
) |
|
|
(532,233 |
) |
Total Pacific Ethanol, Inc. Stockholders’ Equity |
|
368,815 |
|
|
|
387,890 |
|
Noncontrolling Interests |
|
28,086 |
|
|
|
30,371 |
|
Total Stockholders’ Equity |
|
396,901 |
|
|
|
418,261 |
|
Total Liabilities and Stockholders’ Equity |
$ |
730,650 |
|
|
$ |
708,238 |
|
|
|
Reconciliation of Adjusted EBITDA to Net Loss |
|
|
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(in
thousands) (unaudited) |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net loss attributed to
Pacific Ethanol |
$ |
(202 |
) |
|
$ |
(3,518 |
) |
|
$ |
(21,679 |
) |
|
$ |
(11,658 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense* |
|
3,781 |
|
|
|
3,874 |
|
|
|
9,062 |
|
|
|
16,643 |
|
Provision
(benefit) for income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(245 |
) |
Fair
value adjustments |
|
— |
|
|
|
69 |
|
|
|
(473 |
) |
|
|
53 |
|
Depreciation and amortization expense* |
|
9,573 |
|
|
|
8,857 |
|
|
|
26,975 |
|
|
|
26,526 |
|
Total
adjustments |
|
13,354 |
|
|
|
12,800 |
|
|
|
35,564 |
|
|
|
42,977 |
|
Adjusted EBITDA |
$ |
13,152 |
|
|
$ |
9,282 |
|
|
$ |
13,885 |
|
|
$ |
31,319 |
|
________________ |
* Adjusted
for noncontrolling interests. |
|
|
|
Commodity Price Performance |
|
|
|
Three Months EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
(unaudited) |
2017 |
|
2016 |
|
2017 |
|
2016 |
Production gallons sold
(in millions) |
|
141.8 |
|
|
125.5 |
|
|
374.0 |
|
|
360.9 |
Third party gallons
sold (in millions) |
|
108.2 |
|
|
118.2 |
|
|
335.2 |
|
|
322.6 |
Total gallons sold (in
millions) |
|
250.0 |
|
|
243.7 |
|
|
709.2 |
|
|
683.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Production capacity
utilization |
|
93% |
|
|
96% |
|
|
91% |
|
|
92% |
|
|
|
|
|
|
|
|
|
|
|
|
Average ethanol sales
price per gallon |
$ |
1.69 |
|
$ |
1.62 |
|
$ |
1.66 |
|
$ |
1.63 |
Average CBOT ethanol
price per gallon |
$ |
1.55 |
|
$ |
1.49 |
|
$ |
1.54 |
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
|
|
Corn cost – CBOT
equivalent |
$ |
3.69 |
|
$ |
3.58 |
|
$ |
3.67 |
|
$ |
3.70 |
Average basis |
|
0.11 |
|
|
0.25 |
|
|
0.21 |
|
|
0.27 |
Delivered corn
cost |
$ |
3.80 |
|
$ |
3.83 |
|
$ |
3.88 |
|
$ |
3.97 |
|
|
|
|
|
|
|
|
|
|
|
|
Total co-product tons
sold (in thousands) |
|
803.4 |
|
|
702.1 |
|
|
2,223.2 |
|
|
2,050.3 |
Co-product return %
(1) |
|
34.0% |
|
|
35.7% |
|
|
34.2% |
|
|
35.3% |
________________ |
|
|
|
|
|
|
|
|
|
|
|
(1) Co-product
revenue as a percentage of delivered cost of corn. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company IR Contact: |
IR Agency Contact: |
Media Contact: |
Pacific
Ethanol, Inc. |
Becky
Herrick |
Paul
Koehler |
916-403-2755 |
LHA |
Pacific Ethanol, Inc. |
Investorrelations@pacificethanol.com |
415-433-3777 |
916-403-2790 |
|
paulk@pacificethanol.com |
Alto Ingredients (NASDAQ:PEIX)
Historical Stock Chart
From Apr 2024 to May 2024
Alto Ingredients (NASDAQ:PEIX)
Historical Stock Chart
From May 2023 to May 2024