Analysts Firms Asking Questions On the Call
Wedbush Securities
Sidoti & Company
Uncommon Equities
Key Points ~
Corn is bought at the time of Grinding from Grain Handlers -
CHS at Madera and Boardman
JBL at Majic Valley and Stockton
Corn Oil Adds 5 cents per gallon to Production Margins as a Co - Product
At a Cost of $4M Total for Madera and Boardman they Will be Adding
Corn Oil Extration at These Plants in 2014.
~ Madera in the Second Quarter
In the 1st Quarter Wet Distiller Grains Contributed 34% of their Earnings
- High WDGS Prices are Expected to Continue thrue the Summer.
When Asked about Excess Cash the Company said they Intend to Keep
More On Hand and Also Considered Future Consolidation and M&A.
PEIX Continues to Work With Sweet Water On the Cellulosic Plant
At the Stockton Facility.
They are Attempting to Refinance $39 million plant debt at a lower Interest Rate
- Going Forward Interest Debt has been reduced to $2M from paying down Debt
PEIX Will Be Presenting at 5 Investor Conferences in the Next Month
PEIX Will be Seeing about Coverage from a second Tier Wall Street Analyst
Like - Cowen or Lazzard
PEIX has enough USDA Gov. Sugar left of the 270M Pounds for the
rest of the Year to Run at a 15% Rate and Will be Adding it to
Stockton and Madera this Quarter.
The corn grind milling technologies -
Cellunator by Edeniq is running and Increasing Yield at stockton
Selective Milling Technology by ICM Inc. Will do the Same
these operations by increasing both corn oil and ethanol yields
And Will be Needed as Advanced Ethanol begins being Produced
When the EPA Aproves Sorghum as a Pathway
They Are Also Making Advanced Bio Fuel from Waste Wine from
Vineyards In the Area, Which Also Produce Advanced Bio Fuel RINs
Pacific Ethanol has Paid Down $50M In Debt and Leaving them Only
$39M In Plant Debt, They Also Have $34M Cash On Hand.
Leaving Their Net Debt at $5M Dollars
PEIX has
- Eliminated $50 million in total debt so far in 2014
- Commenced production of ethanol at the Madera plant
- Established records in quarterly gross profit of $38.5 million
- Established records in quarterly operating income of $34.9 million
- Established adjusted EBITDA of $35.4 million
Pacific Ethanol Expects Operating Margins to Stay Hi for the Foreseeable Future
While Corn is around $5 a bushel and Oil is around $100 per barrel
PEIX expects to See more Warrant Adjustments
1.) - if the Stock Price Increases more "NON - CASH" Charges
2.) - if the Stock Price Decreases they Will Benefit as Previous "NON - CASH" Charges
Are Additive Directly to Earning at the Ending Date of the Quarter
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