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Actionable news in PEIX: Pacific Ethanol, Inc.,

Pacific Ethanol Reports Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

– Net sales grew 38% over the third quarter of 2014 –

– Record total gallons sold for the third quarter of 2015 at 211.6 million –

– GAAP net loss per share was $0.36 and adjusted net loss per share was $0.18 –

– Adjusted EBITDA was $2.4 million –

– Reflects first quarter of consolidating Aventine operations –

, a leading producer and marketer of low-carbon renewable fuels in the United States, reported its financial results for the three- and nine-months ended September 30, 2015.

Neil Koehler, t he company’s president and CEO, stated: “Our third quarter of 2015 results were impacted by the lower production margin environment and one-time expenses related to our recent acquisition of the Aventine assets. We made great strides at integrating and improving the new production facilities and are beginning to see the benefits of this important acquisition. We remain focused on optimizing all of our assets, expanding our ethanol marketing, and building on our success of implementing plant improvement and yield enhancement initiatives. We are well positioned to expand our market share and improve our financial results.”

Financial Results for the Three Months Ended September 30, 2015

Net sales were $380.6 million for the third quarter of 2015, an increase of 38% when compared to $275.6 million for the third quarter of 2014.

Cost of goods sold was $388.0 million for the third quarter of 2015 and included $8.7 million in purchase accounting adjustments. These one-time, largely non-cash adjustments were related to the company’s acquisition of Aventine Renewable Energy, which closed on July 1, 2015. Cost of goods sold for the third quarter of 2014 was $257.6 million.

Gross loss was $7.4 million for the third quarter of 2015, compared a gross profit of $18.0 million for the third quarter of 2014, reflecting a decrease in production margins compared to the prior year.

Selling, general and administrative (“SG&A”) expenses were $7.4 million for the third quarter of 2015, compared to $4.4 million for the third quarter of 2014.

Operating loss for the third quarter of 2015 was $14.8 million, compared to operating income of $13.6 million for the third quarter of 2014.

Interest expense, net for the third quarter of 2015 was $5.2 million, compared to $1.1 million for the third quarter of 2014.

Provision for income taxes for the third quarter of 2015 was a benefit of $3.9 million, compared to an expense of $3.2 million for the third quarter of 2014.

Net loss available to common stockholders for the third quarter of 2015 was $15.0 million, or $0.36 per diluted share, and includes $8.7 million in purchase accounting adjustments. This compares to net income available to common stockholders of $3.7 million, or $0.15 per diluted share, for the third quarter of 2014.

Adjusted net loss was $7.5 million, or $0.18 per diluted share, for the third quarter of 2015, compared to adjusted net income of $8.1 million, or $0.33 per diluted share, in the third quarter of 2014.

Adjusted EBITDA was $2.4 million for the third quarter of 2015, compared to $15.5 million for the third quarter of 2014.

Cash and cash equivalents were $53.1 million at September 30, 2015, compared to $62.1 million at December 31, 2014.

Financial Results for the Nine Months Ended September 30, 2015

Net sales were $814.4 million for the first nine months of 2015, compared to $851.3 million for the same period of 2014.

Gross loss was $2.1 million for the first nine months of 2015, compared to a gross profit of $90.1 million for the same period of 2014.

SG&A expenses were $16.3 million and included approximately $1.4 million in acquisition-related expenses for the first nine months of 2015, compared to SG&A expenses of $12.4 million for the same period of 2014.

Operating loss for the first nine months of 2015 was $18.5 million, compared to operating income of $77.7 million for the same period of 2014.

Net loss available to common stockholders was $19.0 million for the first nine months of 2015, or $0.63 per diluted share, compared to net income available to common stockholders of $7.8 million, or $0.35 per diluted share, for the same period of 2014.

Adjusted net loss was $11.7 million, or $0.39 per diluted share, for the first nine months of 2015, compared to adjusted net income of $50.0 million, or $2.26 per diluted share, for the same period of 2014.

Adjusted EBITDA was $5.1 million for the first nine months of 2015, compared to $78.7 million for the same period of 2014.

Q3 Results Conference Call

Management will host a conference call at 8:00 a.m. PT/11:00 a.m. ET on November 5, 2015. 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...


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