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Pacific Ethanol Reports First Quarter 2016 Results

- Net sales grew 66% to $342.4 million in Q1'16 -
- Gross profit was $1.1 million in Q1'16, an increase of $2.1 million from Q1'15 -
- GAAP net loss was $13.5 million and Adjusted EBITDA was $1.6 million for Q1'16 -

SACRAMENTO, Calif., May 04, 2016 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. PEIX, -0.47% a leading producer and marketer of low-carbon renewable fuels in the United States, reported its financial results for the three months ended March 31, 2016.

Neil Koehler, president and CEO, stated: "For the first quarter of 2016, we reported net sales of $342.4 million, gross profit of $1.1 million and a positive Adjusted EBITDA of $1.6 million, all of which represent significant growth over the same period last year. We also paid off $17 million of our term debt in the first quarter resulting in our four Western ethanol plants becoming completely debt free. While seasonal patterns in supply and demand created a challenging market environment, we continued to execute well on our strategy to leverage our diverse base of production and marketing assets to expand our share of the renewable fuel and co-product markets. Current ethanol production margins have improved over the first quarter levels as both production and inventory have moderated in the face of growing ethanol demand.

"With our production assets uniquely positioned in the Midwest and Western United States, we are able to spread our commodity and basis price risks across diverse markets and products. In addition, our diverse revenue base helps mitigate our exposure to ethanol pricing pressure as we are able to improve our performance across margin cycles.

"We are encouraged by the continued global demand for ethanol, supported by its underlying economic fundamentals as a high-octane, low-carbon and job creating fuel. To support our future growth, we are focused 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," concluded Koehler.

Financial Results for the Three Months Ended March 31, 2016
Net sales were $342.4 million for the first quarter of 2016, an increase of 66% when compared to $206.2 million for the first quarter of 2015.

Cost of goods sold was $341.3 million for the first quarter of 2016, compared to $207.2 million for the first quarter of 2015.

Gross profit was $1.1 million for the first quarter of 2016, compared a gross loss of $1.0 million for the first quarter of 2015.

Selling, general and administrative (SG&A) expenses were $8.3 million for the first quarter of 2016, compared to $4.9 million for the first quarter of 2015. SG&A expense was higher due to the acquisition of the Midwest assets and an increase in seasonal professional fees.

Operating loss for the first quarter of 2016 was $7.2 million, compared to $5.9 million for the first quarter of 2015.

Interest expense, net for the first quarter of 2016 was $6.2 million, compared to $1.0 million for the first quarter of 2015. This increase is attributable to the term debt assumed with the acquisition of Aventine.

There was no provision for income taxes recorded for the first quarter of 2016, whereas a $2.7 million benefit was recorded for the first quarter of 2015.

Net loss available to common stockholders for the first quarter of 2016 was $13.5 million, or $0.32 per share, compared to $4.7 million, or $0.19 per share, for the first quarter of 2015.

Adjusted net loss was $13.6 million for the first quarter of 2016, compared to adjusted net loss of $4.5 million in the first quarter of 2015.

Adjusted EBITDA was positive $1.6 million for the first quarter of 2016, compared to negative $2.7 million for the first quarter of 2015.

Cash and cash equivalents were $19.2 million at March 31, 2016, compared to $52.7 million at December 31, 2015.

Q1 Results Conference Call
Management will host a conference call at 8:00 a.m. PT/11:00 a.m. ET on May 5, 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 3280565#.

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, May 5, 2016 through 11:59 p.m. Eastern Time on Thursday,
May 12, 2016. To access the replay, please dial (855) 859-2056...


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