Pacific Ethanol, Inc. reports Second Quarter 2013 Financial Results

Increased net sales 14% over second quarter 2012
Improved quarterly gross profit to $7.0 million, compared to loss of $4.9 million
in second quarter 2012
Increased operating income to $3.8 million, compared to a loss of $8.0 million in
second quarter 2012
Achieved consolidated net income of $1.1 million, compared to loss of
$10.0 million in second quarter 2012
Improved Adjusted EBITDA to $6.6 million, compared to a loss of $1.5 million in
second quarter 2012
Extended all remaining Plant debt due in 2013 to 2016
Retired or repaid approximately $13.5 million in debt
Began producing and selling corn oil at Magic Valley plant

Pacific Ethanol, Inc. (NASDAQ: PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, reported its
financial results for the three- and six-months ended June 30, 2013.

Neil Koehler, the company’s president and CEO, stated: “For the second quarter of 2013, we significantly increased our gross profit, operating income, net income and adjusted EBITDA. These improvements were driven by better market conditions, more favorable ethanol pricing, our continued focus on operating efficiencies and our increased plant ownership position. We also improved our balance sheet by extending all remaining plant debt due in 2013 to 2016, and we retired or repaid approximately $13.5 million in debt.”

“We made significant progress on our objectives to diversify our revenues and feedstock. In June, we began producing and selling corn oil at our Magic Valley plant, and we expect to begin production of corn oil at our Stockton plant in the third quarter of 2013. We continue to diversify our feedstock as we increase our blend of sorghum sourced from local, Midwest and international markets. We believe these efforts, combined with our focus on reducing the carbon intensity of ethanol we produce, will support profitable growth.”

Financial Results for the Three Months Ended June 30, 2013
Net sales were $233.8 million for the second quarter of 2013, compared to $205.4 million for the second quarter of 2012. The increase in net sales was attributable to a higher average price per gallon of ethanol sold, which was partially offset by a reduction in total gallons sold.

Gross profit was $7.0 million for the second quarter of 2013, compared to a loss of $4.9 million in the second quarter of 2012. The increase is attributable to significantly improved commodity margins from the Pacific Ethanol plants. SG&A expenses were $3.1 million in the second quarter of 2013, which were flat compared to the second quarter of 2012. Operating income for the second quarter of 2013 was $3.8 million, compared to an operating loss of $8.0 million for the same period in 2012, again, primarily due to significantly improved commodity margins at the Pacific Ethanol plants.

Income available to common stockholders for the second quarter of 2013 was $0.7 million, compared to a loss of $2.9 million for the second quarter of 2012.

Adjusted EBITDA improved to positive $6.6 million for the second quarter of 2013, compared to Adjusted EBITDA of negative $1.5 million in the second quarter of 2012.

Financial Results for the Six Months Ended June 30, 2013
For the six months ended June 30, 2013, net sales were $459.3 million, compared to $403.2 million for the same period in 2012. For the first six months of 2013, loss available to common stockholders was $5.0 million, compared to $8.2 million for the same period in 2012.

Adjusted EBITDA for the first six months of 2013 was positive $6.9 million, compared to Adjusted EBITDA of negative $4.1 million for the first six months of 2012.

Q2 Results Conference Call
Management will host a conference call at 8:00 a.m. PT/11:00 a.m. ET on July 25, 2013. 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.net. Alternatively, you may dial the following number up to ten minutes prior to the scheduled conference call time: (877) 847-6066. International callers should dial 00-1-(970) 315-0267. The pass code will be 20876091#.

If you are unable to participate on the live call, the webcast will be archived for replay on Pacific Ethanol’s website for one year. In addition, a telephonic replay will be available at 2:30 p.m. Eastern Time on July 25, 2013 through 11:59 p.m. Eastern Time on August 1, 2013. To access the replay, please dial (855) 859-2056. International callers should dial 00-1-(404) 537-3406. The pass code will be 20876091#.

Reconciliation of Adjusted EBITDA to Net Income (Loss)
Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. The company defines Adjusted EBITDA as unaudited earnings before interest, taxes, depreciation and amortization, noncash gain (loss) on debt extinguishments and fair value adjustments and warrant inducements. The table at the end of this release provides a reconciliation of Adjusted EBITDA to net income (loss) attributed to Pacific Ethanol, Inc. Management provides an Adjusted

Source: Pacific Ethanol

For more information on: Pacific Ethanol