Item
2.02 Results of Operations and
Financial Condition.
Form
12b-25. Pacific Ethanol,
Inc. (the “Company,” “we,” “us” or similar terms
unless the context otherwise requires) provided certain information regarding
its presently expected results of operations for the three months ended March
31, 2008 in the Form 12b-25 it filed today with the Securities and Exchange
Commission . The information provided was as follows:
Introductory
Note: Please see the
information under the caption “Cautionary Statements” below which sets forth
important disclosure regarding forward-looking statements contained in this
Form.
Unaudited
Preliminary Results of Operations
The
following results of operations are preliminary and have not been audited or
otherwise reviewed by our independent auditors. The Company’s final,
unaudited results of operations could be materially different from the unaudited
preliminary results of operations set forth below.
Three
Months Ended March 31, 2008
The
Company anticipates reporting net sales of approximately $161.5 million for the
first quarter of 2008 as compared to net sales of $99.2 million for the same
period in 2007. The increase in net sales for the first quarter of
2008 as compared to the same period in 2007 was primarily due to a substantial
increase in sales volume, which was partially offset by lower average sales
prices. The volume of ethanol sold by the Company in the first quarter of 2008
increased by approximately 58% as compared to the same period in
2007. The Company’s average sales price of ethanol decreased by $0.04
per gallon, or 2%, to $2.30 per gallon in the first quarter of 2008 from an
average sales price of $2.34 per gallon in the same period in 2007.
The
Company anticipates reporting gross profit of approximately $15.7 million for
the first quarter of 2008 as compared to gross profit of $15.3 million for the
same period in 2007. The Company anticipates reporting that its gross
profit margin was approximately 9.7% for the first quarter of 2008 as compared
to a gross profit margin of 15.4% for the same period in 2007. The
decline in the Company’s gross profit and gross profit margin was primarily due
to a lower average sales price of ethanol, as discussed above, and higher corn
costs.
The
Company anticipates reporting a net loss of approximately $36.2 million for the
first quarter of 2008 as compared to net income of $3.0 million for the same
period in 2007. The Company’s net loss for the first quarter of 2008
included a net $39.8 million of goodwill impairment, which is comprised of a
total of $88.2 million, less impairment of $48.4 million representing the
Company’s noncontrolling interests in Front Range Energy, LLC, its variable
interest entity.
The
Company anticipates reporting a loss available to common stockholders of
approximately $37.3 million, inclusive of preferred stock dividends, for the
first quarter of 2008 as compared to income available to common stockholders of
$1.9 million, net of preferred stock dividends, for the same period in
2007.
The
Company anticipates reporting basic and diluted net loss per common share of
approximately $0.93 for the first quarter of 2008 as compared to basic and
diluted net income per common share of $0.05 for the same period in 2007.
The loss per share for the first quarter of 2008 includes a noncash goodwill
impairment of $0.99 per share. Excluding the impairment, the Company would have
reported income of $0.06 per share. The Company had approximately 40.1
million weighted-average basic and diluted shares outstanding for the first
quarter of 2008.
Cautionary
Statements
This
Form includes forwarding looking statements within the meaning of Section 21E of
the Securities Exchange Act of 1934 regarding us and our business that are not
historical facts and are indicated by words such as “anticipate,” “expect,”
“believe,” other formulations of those terms and similar terms. Such
forward looking statements involve risks and uncertainties including, in
particular, whether our final unaudited financial results as of and for the
three months ended March 31, 2008, will comport with the preliminary information
summarized herein. Material risks and uncertainties exist regarding
these matters, and we can not assure you that our Quarterly Report will be
completed on the terms described herein, or at all. In addition,
investors should also review the factors contained in the “Risk Factors” section
of our Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 27, 2008.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date: May
13, 2008
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PACIFIC
ETHANOL, INC.
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By: /S/ CHRISTOPHER W.
WRIGHT
Christopher W. Wright
Vice President, General Counsel &
Secretary