Pacific Ethanol is the leading marketer and producer of low-carbon renewable fuels in the Western United States. The company produces and sells ethanol and its co-products in the western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho, and Washington. It also provides transportation, storage, and delivery of ethanol through third-party service providers. Co-products include wet distillers grains. Pacific Ethanol sells ethanol to gasoline refining and distribution companies, and wet distillers grains to dairy operators and animal feed distributors.
The company recently reported that net sales increased by 14 percent as the total gallons sold climbed 36 percent in the first quarter of 2012 compared to the same three months of 2011. Net sales rose to $197.7 million for the first quarter of 2012 and total gallons sold were 114.8 million for the first quarter of 2012. The company attributed net sales growth primarily to an increase in third party gallons sold.
For the quarter, the net loss available to common stockholders was $5.3 million, compared to a net loss of $0.3 million for the first quarter of 2011.
Neil Koehler, the company's president and Chief Executive Officer, commented on the quarter, noting, "In the first quarter, we achieved revenue growth of 14% and increased total gallons sold by 36% over the same quarter of last year. While our bottom line was impacted by a compressed margin environment during the quarter, we remain focused on diligently managing our costs, increasing operating efficiencies and co-product revenues, and expanding our business operations to take advantage of extraordinary opportunities in the biofuels industry. In addition, our application for E15 registration has recently been approved by the EPA, enabling us to further benefit from this meaningful regulation. Looking forward, we remain confident that the industry margins will improve with increased demand for ethanol as we move into the summer driving season. We believe we are well positioned for profitable growth as we build our market share in the Western United States."
In the quarter, the company’s subsidiary Kinergy's line of credit with Wells Fargo was extended to up to $40 million with improved terms. Bryon McGregor, the company's Chief Financial Officer, said, "We recently announced that Kinergy has entered into an agreement with Wells Fargo to extend and improve its line of credit facility. We believe this extension demonstrates our lender's confidence in our business plan and improves our liquidity and borrowing costs."