| USA. Pacific Ethanol, Inc. announces Q2 net sales double Q2 2005 |
|
|
|
| Monday, 21 August 2006 | |
|
Company news: Pacific Ethanol, Inc. (NASDAQ:PEIX) has reported operating results for the three and six months ended June 30, 2006. For the quarter ended June 30, 2006, the Company reported net sales of $46.5 million, an increase of $23.6 million, or 104%, as compared to $22.8 million for the second quarter of 2005. This increase in net sales resulted from an increase in the Company's sales volume of approximately 4.2 million gallons, or 27%, to 19.8 million gallons from 15.6 million gallons for the second quarter of 2005 and an increase in the Company's average price of ethanol by $0.99, or 68%, to $2.45 per gallon from $1.46 per gallon for the second quarter of 2005. Gross profit for the second quarter of 2006 totalled $3.3 million, as compared to $151,525 for the second quarter of 2005. Gross profit as a percentage of net sales increased to 7.1% for the quarter ended June 30, 2006 as compared to 0.7% for the same period in 2005. The increase in gross profit as a percentage of net sales and the increase of total gross profit are attributable to the Company's net long position on ethanol purchases, which provided the Company with significant supply volumes at prices that had been contracted for prior to an increase in ethanol market prices. Net loss for the second quarter of 2006 decreased to $182,373, as compared to $2.2 million for the second quarter of 2005. The Company reported basic and diluted loss per common share of $2.56 for the second quarter of 2006 as compared to $0.08 for the same period in 2005. Approximately $2.53 of the total $2.56 in basic and diluted loss per common share is due to the Company recording a deemed dividend on its preferred stock in the amount of $84 million. This one-time non-cash, non-recurring dividend is to reflect the implied economic value to the preferred stockholder of being able to convert its shares into common stock at a price which is in excess of the fair value of the preferred stock on the date of issuance. Absent this one-time deemed dividend, the Company would have reported basic and diluted loss per common share of $0.03 for the second quarter of 2006. Six Months Ended June 30, 2006 The Company's results of operations for the six months ended June 30, 2005 include the operations of the Company's wholly-owned subsidiary, Kinergy Marketing, LLC, only from March 23 through June 30, 2005. Kinergy's net sales for the period from January 1 through March 22, 2005 were approximately $23.6 million and, along with other components of Kinergy's results of operations, are not included in the Company's results of operations for the six months ended June 30, 2005. The Company's results of operations for the six months ended June 30, 2006 consist of the operations of the Company and all of its wholly-owned subsidiaries, including Kinergy, for that entire period. For the six months ended June 30, 2006, the Company reported net sales of $84.7 million, an increase of $59.6 million, or 237%, as compared to $25.1 million for the same period in 2005. A substantial portion of the increase was attributable to the exclusion of Kinergy's net sales for the period from January 1 through March 22, 2005 from the Company's results of operations for the six months ended June 30, 2005. For the six months ended June 30, 2006, sales volume increased by 22.7 million gallons, or 134%, to 39.7 million gallons from 17.0 million gallons for the six months ended June 30, 2005 and the Company's average sales price of ethanol increased by $0.70 per gallon, or 47%, to $2.18 per gallon from $1.48 per gallon for the six months ended June 30, 2005. Gross profit for the six months ended June 30, 2006 increased by $5.4 million to $5.6 million, as compared to $199,152 for same period in 2005. Gross profit as a percentage of net sales increased to 6.7% for the six months ended June 30, 2006 as compared to 0.8% for the same period in 2005. Gross profit increased partly as a result of the exclusion of Kinergy's gross profit for the period from January 1 through March 22, 2005 from the Company's results of operations for the six months ended June 30, 2005. The increase in gross profit as a percentage of net sales and the increase in total gross profit are also attributable to the Company's net long position on ethanol purchases, which provided the Company with significant supply volumes at prices that had been contracted for prior to the increase in ethanol market prices. Net loss for the six months ended June 30, 2006 totaled $794,137 as compared to $3.9 million for the same period in 2005. The Company reported basic and diluted loss per common share of $2.73 for the six months ended June 30, 2006 as compared to $0.18 for the same period in 2005. Approximately $2.67 of the total $2.73 in basic and diluted loss per common share is due to the Company recording a deemed dividend on its preferred stock as described above. Absent this one-time deemed dividend, the Company would have reported basic and diluted loss per common share of $0.05 for the six months ended June 30, 2006. As of June 30, 2006, the Company had cash totaling approximately $200 million (including restricted cash for plant construction and acquisitions in the amount of approximately $60 million). The Company's significant cash position is predominantly due to the completion of two equity financings during the second quarter of 2006. Neil Koehler, President and Chief Executive Officer, commented, "The second quarter was a pivotal one for Pacific Ethanol on many fronts, and we are happy to observe that the Company is substantially stronger than it was just three months ago. We secured enough financing to accelerate our plant build-out program and broke ground on a second plant in Boardman, Oregon. The number of gallons of ethanol sold during the second quarter of 2006 increased by 27% over the number of gallons sold during the second quarter of 2005. Despite substantial costs associated with accounting, legal and other professional fees associated with our corporate finance activities and other investments in software and systems, our net loss showed substantial improvement over last year." Mr. Koehler also noted that, "We are now in advanced stages of development of three additional ethanol plants in two Western states. We expect to begin construction on all of these sites before the end of the first quarter of 2007. When combined with our existing plant sites in Madera, California, and Boardman, Oregon, we expect that our total annual nameplate capacity will be 220 million gallons by mid-2008, putting us six months ahead of our earlier stated goals of achieving that level of production by the end of 2008. Combined with other projects currently under development, we are ahead of schedule to reach total annual nameplate capacity of 420 million gallons by 2010." Bill Jones, Chairman of the Board, added "During the second quarter, we continued to add valuable members to our senior management team and our Board of Directors with the appointments of John Miller as Chief Operating Officer and Christopher Wright as General Counsel, and the appointments of Douglas Kieta and Robert Thomas to our Board. We anticipate further expansion of our management in the months ahead as we bring plants on line and expand the number of construction projects under way." |
|
| Last Updated ( Monday, 21 August 2006 ) |
| < Prev | Next > |
|---|