EXHIBIT 99.2
PRESS RELEASE
PACIFIC ETHANOL, INC. ISSUES CORRECTIONS TO TABLES IN MARCH 1, 2007 PRESS RELEASE
Sacramento, California, March 2, 2007 - Pacific Ethanol, Inc. (NASDAQ GM: PEIX), announced today that the tabular information attached to the press release setting forth the Company’s results for the three and twelve month periods ended December 31, 2006, contained transcription errors. Corrected tables follow:
Pacific Ethanol, Inc. | ||||||
Consolidated Statements of Operations (Unaudited) |
Three Months Ended, | Year Ended December 31, | ||||||||||||
(In thousands, except per share data) | 12/31/2006 | 12/31/2005 | 2006 | 2005 | |||||||||
Net sales | $ | 80,553 | $ | 36,067 | $ | 226,356 | $ | 87,599 | |||||
Cost of goods sold | 68,805 | 34,749 | 201,527 | 84,444 | |||||||||
Gross profit | 11,748 | 1,318 | 24,829 | 3,155 | |||||||||
Selling, general, and administrative expenses | 11,350 | 6,037 | 24,641 | 12,638 | |||||||||
Income (loss) from operations | 398 | (4,719 | ) | 188 | (9,483 | ) | |||||||
Other income (expense), net | 256 | (396 | ) | 3,426 | (440 | ) | |||||||
Non-controlling interest in variable interest entity | (3,756 | ) | — | (3,756 | ) | — | |||||||
Loss before provision for income taxes | (3,102 | ) | (5,115 | ) | (142 | ) | (9,923 | ) | |||||
Provision for income taxes | — | — | — | — | |||||||||
Net loss | $ | (3,102 | ) | $ | (5,115 | ) | $ | (142 | ) | $ | (9,923 | ) | |
Preferred stock dividends | (1,050 | ) | — | (2,998 | ) | — | |||||||
Deemed dividend on preferred stock | — | — | (84,000 | ) | — | ||||||||
Loss available to common stockholders | (4,152 | ) | (5,115 | ) | (87,140 | ) | (9,923 | ) | |||||
Net loss per share, basic and diluted | $ | (0.11 | ) | $ | (0.18 | ) | $ | (2.50 | ) | $ | (0.40 | ) | |
Weighted average shares outstanding, basic and diluted | 39,266 | 28,699 | 34,855 | 25,066 |
PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Unaudited)
December 31, | |||||||
ASSETS | 2006 | 2005 | |||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 44,053 | $ | 4,521 | |||
Investments in marketable securities | 39,119 | 2,750 | |||||
Accounts receivable (including $1,188 and $938 as of December 31, 2006 and 2005, respectively, from a related party) | 29,322 | 4,948 | |||||
Restricted cash | 1,567 | — | |||||
Notes receivable - related party | — | 136 | |||||
Inventories | 7,595 | 363 | |||||
Prepaid expenses | 1,053 | 627 | |||||
Prepaid inventory | 2,029 | 1,349 | |||||
Derivative instruments | 551 | — | |||||
Other current assets | 1,756 | 86 | |||||
Total current assets | 127,045 | 14,780 | |||||
Property and Equipment, Net | 196,156 | 23,208 | |||||
Other Assets: | |||||||
Restricted cash | 24,851 | — | |||||
Deposits and advances | 9,040 | 14 | |||||
Goodwill | 85,307 | 2,566 | |||||
Intangible assets, net | 10,155 | 7,569 | |||||
Other assets | 1,266 | 48 | |||||
Total other assets | 130,619 | 10,197 | |||||
Total Assets | $ | 453,820 | $ | 48,185 |
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PACIFIC ETHANOL, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(In Thousands, Unaudited)
December 31, | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | 2006 | 2005 | |||||
Current Liabilities: | |||||||
Current portion - related party note payable | $ | — | $ | 1,200 | |||
Current portion - notes payable | 4,125 | — | |||||
Accounts payable - trade | 11,483 | 4,755 | |||||
Accounts payable - related party | 3,884 | 6,412 | |||||
Accrued retention - related party | 5,538 | 1,450 | |||||
Accrued payroll | 766 | 434 | |||||
Other accrued liabilities | 4,798 | 3,423 | |||||
Total current liabilities | 30,594 | 17,674 | |||||
Related-party notes payable, net of current portion | — | 1,995 | |||||
Notes payable, net of current portion | 28,970 | — | |||||
Deferred tax liability | 1,091 | — | |||||
Other liabilities | 357 | — | |||||
Total Liabilities | 61,012 | 19,669 | |||||
Non-controlling interest in variable interest entity | 94,363 | — | |||||
Stockholders’ Equity: | |||||||
Preferred stock, $0.001 par value; 10,000 shares authorized; 5,250 and 0 shares issued and outstanding as of December 31, 2006 and 2005, respectively | 5 | — | |||||
Common stock, $0.001 par value; 100,000 shares authorized; 40,269 and 28,874 shares issued and outstanding as of December 31, 2006 and 2005, respectively | 40 | 29 | |||||
Additional paid-in capital | 397,535 | 42,071 | |||||
Other comprehensive income | 545 | — | |||||
Accumulated deficit | (99,680 | ) | (13,584 | ) | |||
Total stockholders’ equity | 298,445 | 28,516 | |||||
Total Liabilities and Stockholders’ Equity | $ | 453,820 | $ | 48,185 |
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Reconciliation of Adjusted EBITDA to Net Income
Three Months Ended, | Year Ended December 31, | ||||||||||||
(In thousands) (Unaudited) | 12/31/2006 | 12/31/2005 | 2006 | 2005 | |||||||||
Net income (loss) | $ | (3,102 | ) | $ | (5,115 | ) | $ | (142 | ) | $ | (9,923 | ) | |
Adjustments: | |||||||||||||
Interest expense* | 906 | 179 | 1,381 | 511 | |||||||||
Interest income* | (975 | ) | (77 | ) | (4,737 | ) | (348 | ) | |||||
Income taxes | — | — | — | — | |||||||||
Non-cash compensation and consulting expense | 3,922 | 312 | 6,248 | 2,062 | |||||||||
Depreciation and amortization expense* | 1,959 | 283 | 2,680 | 787 | |||||||||
Total adjustments | 5,812 | 697 | 5,572 | 3,012 | |||||||||
Adjusted EBITDA | $ | 2,710 | $ | (4,418 | ) | $ | 5,430 | $ | (6,911 | ) |
*Adjusted for non-controlling interest in variable interest entity.
Commodity Price Performance
Three Months Ended, | Year Ended December 31, | ||||||||||||
(Unaudited) | 12/31/2006 | 12/31/2005 | 2006 | 2005 | |||||||||
Ethanol sales (million gallons) | 31.7 | 19.1 | 101.7 | 52.3 | |||||||||
Ethanol sales price per gallon | $ | 2.26 | $ | 1.89 | $ | 2.28 | $ | 1.67 | |||||
Delivered corn cost per bushel | $ | 2.95 | $ | — | $ | 2.95 | $ | — | |||||
Average basis | 0.51 | — | 0.51 | — | |||||||||
Corn cost - CBOT equivalent | $ | 2.44 | $ | — | $ | 2.44 | $ | — | |||||
Co-product return % (1) | 33.4 | % | — | 33.4 | % | — | |||||||
Production commodity margin per gallon (2) | $ | 1.45 | $ | — | $ | 1.45 | $ | — |
(1) Co-product revenue as a percentage of delivered cost of corn | ||
(2) Ethanol sales price per gallon less net cost of corn (delivered cost of corn less co-product revenue) |
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