(Mark
One)
|
Delaware
(State
or other jurisdiction
of
incorporation or organization)
|
41-2170618
(I.R.S.
Employer
Identification
No.)
|
Large
accelerated filer x
|
Accelerated
filer o
|
Non-accelerated
filer o
|
Page
|
|
Item
1. Financial Statements
|
|
Consolidated
Balance Sheets as of September 30, 2007 (Unaudited) and December
31,
2006
|
F-1
|
Consolidated
Statements of Operations for the Three and Nine Months Ended September
30,
2007 and 2006 (Unaudited)
|
F-3
|
|
|
Consolidated
Statements of Comprehensive Income (Loss) for the Three and Nine
Months
Ended September 30, 2007 and 2006 (Unaudited)
|
F-4
|
Consolidated
Statements of Cash Flows for the Nine Months Ended September 30,
2007 and
2006 (Unaudited)
|
F-5
|
Notes
to Consolidated Financial Statements (Unaudited)
|
F-7
|
Item
2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations.
|
2
|
Item
3. Quantitative and Qualitative Disclosures About Market
Risk.
|
12
|
Item
4. Controls and Procedures.
|
13
|
PART
II
|
|
OTHER
INFORMATION
|
|
Item
1. Legal Proceedings.
|
15
|
Item
1A. Risk Factors
|
16
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds.
|
16
|
Item
3. Defaults Upon Senior Securities.
|
17
|
Item
4. Submission of Matters to a Vote of Security
Holders.
|
17
|
Item
5. Other Information.
|
17
|
Item
6. Exhibits.
|
17
|
Signatures
|
18
|
September
30,
|
December
31,
|
|||||||
ASSETS
|
2007
|
2006
|
||||||
(unaudited)
|
*
|
|||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ |
10,290
|
$ |
44,053
|
||||
Investments
in marketable securities
|
19,177
|
39,119
|
||||||
Accounts
receivable, net
|
22,767
|
29,322
|
||||||
Restricted
cash
|
2,295
|
1,567
|
||||||
Inventories
|
25,349
|
7,595
|
||||||
Prepaid
expenses
|
1,218
|
1,053
|
||||||
Prepaid
inventory
|
4,122
|
2,029
|
||||||
Other
current assets
|
3,735
|
2,307
|
||||||
Total
current assets
|
88,953
|
127,045
|
||||||
Property
and Equipment, Net
|
383,342
|
196,156
|
||||||
Other
Assets:
|
||||||||
Restricted
cash
|
42,949
|
24,851
|
||||||
Deposits
and advances
|
67
|
9,040
|
||||||
Goodwill
|
85,307
|
85,307
|
||||||
Intangible
assets, net
|
6,551
|
10,155
|
||||||
Other
assets
|
8,715
|
1,266
|
||||||
Total
other assets
|
143,589
|
130,619
|
||||||
Total
Assets
|
$ |
615,884
|
$ |
453,820
|
September
30,
|
December
31,
|
|||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
2007
|
2006
|
||||||
(unaudited)
|
*
|
|||||||
Current
Liabilities:
|
||||||||
Accounts
payable – trade
|
$ |
26,698
|
$ |
8,959
|
||||
Accrued
liabilities
|
3,821
|
3,129
|
||||||
Contract
retentions
|
6,193
|
—
|
||||||
Other
liabilities - related parties
|
4,258
|
9,422
|
||||||
Current
portion – notes payable
|
3,549
|
4,125
|
||||||
Derivative
instruments
|
4,478
|
97
|
||||||
Other
current liabilities
|
3,264
|
1,831
|
||||||
Total
current liabilities
|
52,261
|
27,563
|
||||||
Notes
payable, net of current portion
|
123,357
|
28,970
|
||||||
Construction-related
liabilities
|
42,949
|
3,031
|
||||||
Deferred
tax liability
|
1,091
|
1,091
|
||||||
Other
liabilities
|
58
|
357
|
||||||
Total
Liabilities
|
219,716
|
61,012
|
||||||
Commitments
and Contingencies (Note 11)
|
||||||||
Non-controlling
interest in variable interest entity
|
99,037
|
94,363
|
||||||
Stockholders’
Equity:
|
||||||||
Preferred
stock, $0.001 par value; 10,000,000 shares authorized; 5,250,000
shares
issued and outstanding as of
September
30, 2007 and December 31, 2006
|
5
|
5
|
||||||
Common
stock, $0.001 par value; 100,000,000 shares authorized; 40,632,978
and
40,269,627 shares issued and
outstanding
as of September 30, 2007 and December 31,
2006, respectively
|
41
|
40
|
||||||
Additional
paid-in capital
|
401,436
|
397,535
|
||||||
Accumulated
other comprehensive income (loss)
|
(1,810 | ) |
545
|
|||||
Accumulated
deficit
|
(102,541 | ) | (99,680 | ) | ||||
Total
stockholders’ equity
|
297,131
|
298,445
|
||||||
Total
Liabilities and Stockholders’ Equity
|
$ |
615,884
|
$ |
453,820
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
sales
|
$ |
118,118
|
$ |
61,102
|
$ |
331,123
|
$ |
145,802
|
||||||||
Cost
of goods sold
|
113,359
|
53,654
|
299,902
|
132,721
|
||||||||||||
Gross
profit
|
4,759
|
7,448
|
31,221
|
13,081
|
||||||||||||
Selling,
general and administrative expenses
|
5,920
|
5,548
|
23,742
|
13,291
|
||||||||||||
Income
(loss) from operations
|
(1,161 | ) |
1,900
|
7,479
|
(210 | ) | ||||||||||
Other
income (loss), net
|
(998 | ) |
1,855
|
312
|
3,171
|
|||||||||||
Income
(loss) before non-controlling interest in variable interest
entity
|
(2,159 | ) |
3,755
|
7,791
|
2,961
|
|||||||||||
Non-controlling
interest in variable interest entity
|
(2,683 | ) |
—
|
(7,502 | ) |
—
|
||||||||||
Net
income (loss) before provision for income taxes
|
(4,842 | ) |
3,755
|
289
|
2,961
|
|||||||||||
Provision
for income taxes
|
—
|
—
|
—
|
—
|
||||||||||||
Net
income (loss)
|
(4,842 | ) |
3,755
|
289
|
2,961
|
|||||||||||
Preferred
stock dividends
|
(1,050 | ) | (1,050 | ) | (3,150 | ) | (1,948 | ) | ||||||||
Deemed
dividend on preferred stock
|
—
|
—
|
—
|
(84,000 | ) | |||||||||||
Income
(loss) available to common stockholders
|
$ | (5,892 | ) | $ |
2,705
|
$ | (2,861 | ) | $ | (82,987 | ) | |||||
Net
income (loss) per share, basic
|
$ | (0.15 | ) | $ |
0.07
|
$ | (0.07 | ) | $ | (2.49 | ) | |||||
Net
income (loss) per share, diluted
|
$ | (0.15 | ) | $ |
0.07
|
$ | (0.07 | ) | $ | (2.49 | ) | |||||
Weighted-average
shares outstanding, basic
|
39,928
|
37,228
|
39,833
|
33,388
|
||||||||||||
Weighted-average
shares outstanding, diluted
|
39,928
|
37,768
|
39,833
|
33,388
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
income (loss)
|
$ | (4,842 | ) | $ |
3,755
|
$ |
289
|
$ |
2,961
|
|||||||
Other
comprehensive income (loss), net of tax:
|
||||||||||||||||
Net
change in the fair value of
derivatives, cash flow hedges
|
1,573
|
(758 | ) |
2,006
|
32
|
|||||||||||
Unrealized
gain on
available-for-sale securities
|
—
|
47
|
—
|
47
|
||||||||||||
Comprehensive
income (loss)
|
$ | (3,269 | ) | $ |
3,044
|
$ |
2,295
|
$ |
3,040
|
Nine
Months Ended
September
30,
|
||||||||
2007
|
2006
|
|||||||
Operating
Activities:
|
||||||||
Net
income
|
$ |
289
|
$ |
2,961
|
||||
Adjustments
to reconcile net income to
cash
provided by (used in) operating activities:
|
||||||||
Depreciation
and amortization of intangibles
|
12,816
|
711
|
||||||
Loss
on disposal of equipment
|
216
|
—
|
||||||
Amortization
of deferred financing fees
|
2,315
|
604
|
||||||
Non-cash
compensation expense
|
1,557
|
835
|
||||||
Non-cash
consulting expense
|
151
|
1,491
|
||||||
Loss
on derivatives
|
2,668
|
323
|
||||||
Bad
debt expense
|
48
|
103
|
||||||
Non-controlling
interest in variable interest entity
|
7,502
|
—
|
||||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
6,507
|
(10,698 | ) | |||||
Restricted
cash
|
(728 | ) | (1,784 | ) | ||||
Notes
receivable, related party
|
—
|
136
|
||||||
Inventories
|
(17,754 | ) | (5,364 | ) | ||||
Prepaid
expenses and other assets
|
(2,060 | ) | (10,041 | ) | ||||
Prepaid
inventory
|
(2,093 | ) | (37 | ) | ||||
Increase
in derivative assets
|
—
|
(517 | ) | |||||
Accounts
payable and accrued expenses
|
14,698
|
4,285
|
||||||
Accounts
payable and accrued expenses (related party)
|
(5,164 | ) |
4,312
|
|||||
Net
cash provided by (used in) operating activities
|
20,968
|
(12,680 | ) | |||||
Investing
Activities:
|
||||||||
Additions
to property and equipment
|
(137,046 | ) | (57,639 | ) | ||||
Proceeds
from sales of available-for-sale investments
|
19,593
|
2,750
|
||||||
Proceeds
from sale of equipment
|
10
|
—
|
||||||
Increase
in restricted cash designated for construction projects
|
(18,099 | ) | (60,642 | ) | ||||
Net
cash used in investing activities
|
(135,542 | ) | (115,531 | ) | ||||
Financing
Activities:
|
||||||||
Proceeds
from borrowing on long-term debt
|
87,500
|
—
|
||||||
Proceeds
from borrowing on lines of credit
|
14,005
|
—
|
||||||
Proceeds
from exercise of warrants and stock options
|
2,193
|
9,927
|
||||||
Cash
paid for debt issuance costs
|
(10,063 | ) | (1,190 | ) | ||||
Principal
payments paid on borrowings
|
(7,897 | ) |
—
|
|||||
Principal
payments paid on borrowings, related party
|
—
|
(3,600 | ) | |||||
Proceeds
from sale of common stock, net
|
—
|
137,622
|
||||||
Proceeds
from sale of preferred stock, net
|
—
|
82,567
|
||||||
Dividends
paid on non-controlling interest in variable interest
entity
|
(2,827 | ) |
—
|
|||||
Preferred
share dividends paid
|
(2,100 | ) | (898 | ) | ||||
Net
cash provided by financing activities
|
80,811
|
224,428
|
||||||
Net
increase (decrease) in cash and cash equivalents
|
(33,763 | ) |
96,217
|
|||||
Cash
and cash equivalents at beginning of period
|
44,053
|
4,521
|
||||||
Cash
and cash equivalents at end of period
|
$ |
10,290
|
$ |
100,738
|
Nine
Months Ended
September
30,
|
||||||||
2007
|
2006
|
|||||||
Supplemental
Information:
|
||||||||
Interest
paid
|
$ |
5,267
|
$ |
186
|
||||
Taxes
paid
|
$ |
—
|
$ |
13
|
||||
Non-cash
financing and investing activities:
|
||||||||
Capital
lease
|
$ |
203
|
$ |
—
|
||||
Non-cash
additions to property and equipment
|
$ |
49,926
|
$ |
—
|
||||
Preferred
stock dividend declared
|
$ |
1,050
|
$ |
1,050
|
||||
Deemed
dividend on preferred stock
|
$ |
—
|
$ |
84,000
|
Cost
|
Gross
Unrealized Gains
|
Gross
Unrealized (Losses)
|
Fair
Value
|
|||||||||||||
September
30, 2007:
|
||||||||||||||||
Available-for-sale:
|
||||||||||||||||
Short-term
marketable securities
|
$ |
19,177
|
$ |
—
|
$ |
—
|
$ |
19,177
|
||||||||
Total
marketable securities
|
$ |
19,177
|
$ |
—
|
$ |
—
|
$ |
19,177
|
||||||||
December
31, 2006:
|
||||||||||||||||
Available-for-sale:
|
||||||||||||||||
U.S.
Treasury securities
|
$ |
27,651
|
$ |
349
|
$ |
—
|
$ |
28,000
|
||||||||
Short-term
marketable securities
|
11,119
|
—
|
—
|
11,119
|
||||||||||||
Total
marketable securities
|
$ |
38,770
|
$ |
349
|
$ |
—
|
$ |
39,119
|
September
30, 2007
|
December
31, 2006
|
|||||||
Raw
materials
|
$ |
11,616
|
$ |
3,709
|
||||
Work
in progress
|
1,782
|
873
|
||||||
Finished
goods
|
10,978
|
2,452
|
||||||
Other
|
973
|
561
|
||||||
Total
|
$ |
25,349
|
$ |
7,595
|
September
30, 2007
|
December
31, 2006
|
|||||||
Variable
rate, secured construction/term loan due 2015
|
$ |
87,500
|
$ |
—
|
||||
Variable
rate, secured term loans due 2011
|
24,289
|
31,882
|
||||||
Lines
of credit
|
14,005
|
—
|
||||||
Capital
lease obligations
|
1,112
|
1,213
|
||||||
126,906
|
33,095
|
|||||||
Less
short-term portion of long-term debt
|
(3,549 | ) | (4,125 | ) | ||||
Notes
payable
|
$ |
123,357
|
$ |
28,970
|
|
·
|
five
construction loan facilities in an aggregate amount of up to
$300,000,000. Loans made under the construction loan facilities
do not amortize, but require payment of accrued interest, and are
fully
due and payable on the earlier of October 27, 2008 or the date the
construction loans made thereunder are converted into term loans
(the
“Conversion Date”), the latter of which is to be the date the last of the
five plants achieves commercial operations. On the Conversion Date,
the
construction loans are to be converted into term
loans;
|
|
·
|
five
term loan facilities in an aggregate amount of up to $300,000,000,
which
are intended to refinance the loans made under the construction loan
facilities. The term loans are to be repaid ratably by each
Borrower on a quarterly basis from and after the Conversion Date
in an
amount equal to 1.5% of the aggregate original principal amount of
the
corresponding term loan. The remaining principal balance and
all accrued and unpaid interest on the term loans are fully due and
payable on the date that is 84 months after the Conversion
Date; and
|
|
·
|
a
working capital and letter of credit facility in an aggregate amount
of up
to $25,000,000 ($5,000,000 per facility) that is fully due and payable
on
the date that is 12 months after the Conversion Date, but is expected
to
be renewed on similar terms and conditions. During the term of
the working capital and letter of credit facility, the Borrowers
may
borrow, repay and re-borrow amounts available under the
facility.
|
Jurisdiction
|
Tax
Years
|
|
Federal
|
2003
– 2006
|
|
California
|
2002
– 2006
|
|
Oregon
|
2006
|
|
Colorado
|
2006
|
|
Idaho
|
2006
|
Three
Months Ended September 30, 2007
|
||||||||||||
Income
Numerator
|
Shares
Denominator
|
Per-Share
Amount
|
||||||||||
Net
loss
|
$ | (4,842 | ) | |||||||||
Less: Preferred
stock dividends
|
(1,050 | ) | ||||||||||
Basic
Earnings per Share:
|
||||||||||||
Loss
available to common stockholders
|
$ | (5,892 | ) |
39,928
|
$ | (0.15 | ) | |||||
Diluted
Earnings per Share:
|
||||||||||||
Loss
available to common stockholders
|
$ | (5,892 | ) |
39,928
|
$ | (0.15 | ) | |||||
Three
Months Ended September 30, 2006
|
||||||||||||
Income
Numerator
|
Shares
Denominator
|
Per-Share
Amount
|
||||||||||
Net
income
|
$ |
3,755
|
||||||||||
Less: Preferred
stock dividends
|
(1,050 | ) | ||||||||||
Basic
Earnings per Share:
|
||||||||||||
Income
available to common stockholders
|
$ |
2,705
|
37,228
|
$ |
0.07
|
|||||||
Effect
of outstanding options and warrants
|
540
|
|||||||||||
Diluted
Earnings per Share:
|
||||||||||||
Income
available to common stockholders, including assumed
conversions
|
$ |
2,705
|
37,768
|
$ |
0.07
|
Nine
Months Ended September 30, 2007
|
||||||||||||
Income
Numerator
|
Shares
Denominator
|
Per-Share
Amount
|
||||||||||
Net
income
|
$ |
289
|
||||||||||
Less: Preferred
stock dividends
|
(3,150 | ) | ||||||||||
Basic
Earnings per Share:
|
||||||||||||
Loss
available to common stockholders
|
$ | (2,861 | ) |
39,833
|
$ | (0.07 | ) | |||||
Diluted
Earnings per Share:
|
||||||||||||
Income
available to common stockholders, including assumed
conversions
|
$ | (2,861 | ) |
39,833
|
$ | (0.07 | ) | |||||
Nine
Months Ended September 30, 2006
|
||||||||||||
Income
Numerator
|
Shares
Denominator
|
Per-Share
Amount
|
||||||||||
Net
income
|
$ |
2,961
|
||||||||||
Less: Actual
and deemed preferred stock dividends
|
(85,948 | ) | ||||||||||
Basic
Earnings per Share:
|
||||||||||||
Loss
available to common stockholders
|
$ | (82,987 | ) |
33,388
|
$ | (2.49 | ) | |||||
Diluted
Earnings per Share:
|
||||||||||||
Loss
available to common stockholders, including assumed
conversions
|
$ | (82,987 | ) |
33,388
|
$ | (2.49 | ) |
Fixed-Price
Contracts
|
||||
Ethanol
|
$ |
65,431
|
||
Corn
|
7,446
|
|||
Natural
gas
|
3,728
|
|||
Denaturant
|
—
|
|||
Total
|
$ |
76,605
|
Indexed-Price
Contracts
(Volume)
|
|
Ethanol
|
11,525
gallons
|
Corn
|
5,240 bushels
|
Denaturant
|
293 gallons
|
Fixed-Price
Contracts
|
||||
Ethanol
|
$ |
40,647
|
||
Wet
distillers grain
|
11,529
|
|||
Total
|
$ |
52,176
|
Indexed-Price
Contracts
(Volume)
|
|
Ethanol
|
64,889
gallons
|
Commodity
Derivatives
|
Interest
Rate
Derivatives
|
|||||||
Gain/(Loss)*
|
Gain/(Loss)*
|
|||||||
Beginning
balance, January 1, 2007
|
$ |
461
|
$ | (265 | ) | |||
Net
changes
|
(2,318 | ) | (1,821 | ) | ||||
Less: Amount
reclassified to cost of goods sold
|
(2,008 | ) |
—
|
|||||
Less: Amount
reclassified to other income (expense)
|
—
|
(125 | ) | |||||
Ending
balance, September 30, 2007
|
$ |
151
|
$ | (1,961 | ) |
September
30, 2007
|
December 31,
2006
|
|||||||
Commodity
futures
|
$ | (1,570 | ) | $ |
329
|
|||
Interest
rate swaps
|
(2,649 | ) |
125
|
|||||
Total
|
$ | (4,219 | ) | $ |
454
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
|
|
·
|
fluctuations
in the market price of ethanol and its
co-products;
|
|
·
|
the
projected growth or contraction in the ethanol and co-product markets
in
which we operate;
|
|
·
|
our
strategies for expanding, maintaining or contracting our presence
in these
markets;
|
|
·
|
our
ability to successfully develop, finance, construct and operate our
planned ethanol production
facilities;
|
|
·
|
anticipated
trends in our financial condition and results of operations;
and
|
|
·
|
our
ability to distinguish ourselves from our current and future
competitors.
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||||
September
30,
|
Variance
in
|
September
30,
|
Variance
in
|
|||||||||||||||||||||||||||||
2007
|
2006
|
Dollars
|
Percent
|
2007
|
2006
|
Dollars
|
Percent
|
|||||||||||||||||||||||||
Net
sales
|
$ |
118,118
|
$ |
61,102
|
$ |
57,016
|
93.3% | $ |
331,123
|
$ |
145,802
|
$ |
185,321
|
127.1% | ||||||||||||||||||
Cost
of goods sold
|
113,359
|
53,654
|
59,705
|
111.3% |
299,902
|
132,721
|
167,181
|
126.0% | ||||||||||||||||||||||||
Gross
profit
|
$ |
4,759
|
$ |
7,448
|
$ | (2,689 | ) | (36.1% | ) | $ |
31,221
|
$ |
13,081
|
$ |
18,140
|
138.7% | ||||||||||||||||
Percentage
of net
sales
|
4.0% | 12.2% | 9.4% | 9.0% |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||||
September
30,
|
Variance
in
|
September
30,
|
Variance
in
|
|||||||||||||||||||||||||||||
2007
|
2006
|
Dollars
|
Percent
|
2007
|
2006
|
Dollars
|
Percent
|
|||||||||||||||||||||||||
Selling,
general and administrative expenses
|
$ |
5,920
|
$ |
5,548
|
$ |
372
|
6.7% | $ |
23,742
|
$ |
13,291
|
$ |
10,451
|
78.6% | ||||||||||||||||||
Percentage
of net sales
|
5.0% | 9.1% | 7.2% | 9.1% |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||||
September
30,
|
Variance
in
|
September
30,
|
Variance
in
|
|||||||||||||||||||||||||||||
2007
|
2006
|
Dollars
|
Percent
|
2007
|
2006
|
Dollars
|
Percent
|
|||||||||||||||||||||||||
Other
income (loss), net
|
$ | (998 | ) | $ |
1,855
|
$ | (2,853 | ) | (153.8% | ) | $ |
312
|
$ |
3,171
|
$ | (2,859 | ) | (90.2% | ) | |||||||||||||
Percentage
of net sales
|
(0.8% | ) | 3.0% | 0.1% | 2.2% |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||||
September
30,
|
Variance
in
|
September
30,
|
Variance
in
|
|||||||||||||||||||||||||||||
2007
|
2006
|
Dollars
|
Percent
|
2007
|
2006
|
Dollars
|
Percent
|
|||||||||||||||||||||||||
Non-controlling
interest in variable interest entity
|
$ | (2,683 | ) | $ |
—
|
$ | (2,863 | ) |
*
|
$ | (7,502 | ) | $ |
—
|
$ | (7,502 | ) |
*
|
||||||||||||||
Percentage
of net sales
|
(2.3% | ) | –% | (2.3% | ) | –% | ||||||||||||||||||||||||||
*
Not meaningful
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||||
September
30,
|
Variance
in
|
September
30,
|
Variance
in
|
|||||||||||||||||||||||||||||
2007
|
2006
|
Dollars
|
Percent
|
2007
|
2006
|
Dollars
|
Percent
|
|||||||||||||||||||||||||
Net
income (loss)
|
$ | (4,842 | ) | $ |
3,755
|
$ | (8,597 | ) | 228.9% | $ |
289
|
$ |
2,961
|
$ |
2,672
|
90.2% | ||||||||||||||||
Percentage
of net sales
|
(4.1% | ) | 6.1% | 0.1% | 2.0% |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||||||
September
30,
|
Variance
in
|
September
30,
|
Variance
in
|
|||||||||||||||||||||||||||||
2007
|
2006
|
Dollars
|
Percent
|
2007
|
2006
|
Dollars
|
Percent
|
|||||||||||||||||||||||||
Preferred
stock dividends
|
$ | (1,050 | ) | $ | (1,050 | ) | $ |
—
|
—% | $ | (3,150 | ) | $ | (1,948 | ) | $ | (1,202 | ) | 61.7% | |||||||||||||
Percentage
of net sales
|
(1.0% | ) | (1.7% | ) | (1.0% | ) | (1.3% | ) | ||||||||||||||||||||||||
Income
(loss) available to common stock-holders
|
$ | (5,892 | ) | $ |
2,705
|
$ | (8,597 | ) | (317.8% | ) | $ | (2,861 | ) | $ | (82,987 | ) | $ | (80,126 | ) | 96.6% | ||||||||||||
Percentage
of net sales
|
(5.0% | ) | 4.4% | (0.9% | ) | (56.9% | ) |
September
30,
2007
|
December
31, 2006
|
Variance
in Dollars
|
||||||||||
Working
capital
|
$ |
36,692
|
$ |
99,482
|
$ | (62,790 | ) | |||||
Cash
and cash equivalents
|
$ |
10,290
|
$ |
44,053
|
$ | (33,763 | ) | |||||
Investments
in marketable securities
|
19,177
|
39,119
|
(19,942 | ) | ||||||||
$ |
29,467
|
$ |
83,172
|
$ | (53,705 | ) |
September
30,
2007
|
December
31, 2006
|
Variance
in Dollars
|
||||||||||
Property
and equipment, net
|
$ |
383,342
|
$ |
196,156
|
$ |
187,186
|
||||||
Restricted
cash
|
$ |
42,949
|
$ |
24,851
|
$ |
18,098
|
||||||
Notes
payable, net of current portion
|
$ |
123,357
|
$ |
28,970
|
$ |
94,387
|
|
·
|
five
construction loan facilities in an aggregate amount of up to
$300,000,000. Loans made under the construction loan facilities
do not amortize, but require payment of accrued interest, and are
fully
due and payable on the earlier of October 27, 2008 or the date, or
Conversion Date, the construction loans made thereunder are converted
into
term loans, the latter of which is to be the date the last of the
five
plants achieves commercial operations. On the Conversion Date, the
construction loans are to be converted into term
loans;
|
|
·
|
five
term loan facilities in an aggregate amount of up to $300,000,000,
which
are intended to refinance the loans made under the construction loan
facilities. The term loans are to be repaid ratably by each
Borrower on a quarterly basis from and after the Conversion Date
in an
amount equal to 1.5% of the aggregate original principal amount of
the
corresponding term loan. The remaining principal balance and
all accrued and unpaid interest on the term loans are fully due and
payable on the date that is 84 months after the Conversion
Date; and
|
|
·
|
a
working capital and letter of credit facility in an aggregate amount
of up
to $25,000,000 ($5,000,000 per facility) that is fully due and payable
on
the date that is 12 months after the Conversion Date, but is expected
to
be renewed on similar terms and conditions. During the term of
the working capital and letter of credit facility, the Borrowers
may
borrow, repay and re-borrow amounts available under the
facility.
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
|
Commodity
Derivatives
|
Interest
Rate Derivatives
|
|||||||
Gain/(Loss)*
|
Gain/(Loss)*
|
|||||||
Beginning
balance, January 1, 2007
|
$ |
461
|
$ | (265 | ) | |||
Net
changes
|
(2,318 | ) | (1,821 | ) | ||||
Less: Amount
reclassified to cost of goods sold
|
(2,008 | ) |
—
|
|||||
Less: Amount
reclassified to other income (expense)
|
—
|
(125 | ) | |||||
Ending
balance, September 30, 2007
|
$ |
151
|
$ | (1,961 | ) |
September
30, 2007
|
December 31,
2006
|
|||||||
Commodity
futures
|
$ | (1,570 | ) | $ |
329
|
|||
Interest
rate swaps
|
(2,649 | ) |
125
|
|||||
Total
|
$ | (4,219 | ) | $ |
454
|
ITEM
4.
|
CONTROLS
AND PROCEDURES.
|
|
Evaluation
of Disclosure Controls and
Procedures
|
ITEM
1.
|
LEGAL
PROCEEDINGS.
|
ITEM
1A.
|
RISK
FACTORS.
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS.
|
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES.
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS.
|
ITEM
6.
|
EXHIBITS.
|
Exhibit
Number
|
Description
|
10.1
|
Separation
Agreement dated July 19, 2007 between Pacific Ethanol, Inc. and Douglas
Jeffries (*)
|
31.1
|
Certifications
Required by Rule 13a-14(a) of the Securities Exchange Act of 1934,
as
amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of
2002 (**)
|
31.2
|
Certifications
Required by Rule 13a-14(a) of the Securities Exchange Act of 1934,
as
amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of
2002 (**)
|