| PARENT COMPANY FINANCIALS |
Restricted Net Assets
– At December 31, 2016, the Company had approximately $287,200,000 of net assets at its subsidiaries that were not available
to be transferred to Pacific Ethanol in the form of dividends, distributions, loans or advances due to restrictions contained
in the credit facilities of these subsidiaries.
Parent company financial statements
for the periods covered in this report are set forth below.
Pacific
Ethanol, Inc.
Condensed
Financial Information of the Registrant
Balance
Sheets - Parent Company Only
(in
thousands)
| |
|
December 31, |
|
| |
|
2016 |
|
|
2015 |
|
| Cash and cash equivalents |
|
$ |
11,060 |
|
|
$ |
20,618 |
|
| Receivables from subsidiaries |
|
|
7,203 |
|
|
|
14,505 |
|
| Other current assets |
|
|
6,442 |
|
|
|
11,361 |
|
| Total current assets |
|
|
24,705 |
|
|
|
46,484 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
1,433 |
|
|
|
1,695 |
|
| |
|
|
|
|
|
|
|
|
| Investments in subsidiaries |
|
|
363,401 |
|
|
|
301,416 |
|
| Pacific Ethanol West plant receivable |
|
|
58,766 |
|
|
|
41,763 |
|
| Other assets |
|
|
1,110 |
|
|
|
838 |
|
| Total other assets |
|
|
423,277 |
|
|
|
344,017 |
|
| Total Assets |
|
$ |
449,415 |
|
|
$ |
392,196 |
|
| |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
1,758 |
|
|
$ |
1,963 |
|
| Payables to subsidiaries |
|
|
1,568 |
|
|
|
13,230 |
|
| Accrued PE Op Co. purchase |
|
|
3,829 |
|
|
|
3,828 |
|
| Other current liabilities |
|
|
183 |
|
|
|
– |
|
| Total current liabilities |
|
|
7,338 |
|
|
|
19,021 |
|
| |
|
|
|
|
|
|
|
|
| Long Term debt, net |
|
|
53,360 |
|
|
|
– |
|
| Warrant liabilities at fair value |
|
|
651 |
|
|
|
273 |
|
| Deferred tax liabilities |
|
|
52 |
|
|
|
1,174 |
|
| Other liabilities |
|
|
124 |
|
|
|
184 |
|
| Total Liabilities |
|
|
61,525 |
|
|
|
20,652 |
|
| |
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
1 |
|
|
|
1 |
|
| Common stock |
|
|
40 |
|
|
|
39 |
|
| Non-voting common stock |
|
|
4 |
|
|
|
4 |
|
| Additional paid-in capital |
|
|
922,698 |
|
|
|
902,843 |
|
| Accumulated other comprehensive income (expense) |
|
|
(2,620 |
) |
|
|
1,040 |
|
| Accumulated deficit |
|
|
(532,233 |
) |
|
|
(532,383 |
) |
| Total Pacific Ethanol, Inc. stockholders' equity |
|
|
387,890 |
|
|
|
371,544 |
|
| Total Liabilities and Stockholders' Equity |
|
$ |
449,415 |
|
|
$ |
392,196 |
|
Pacific
Ethanol, Inc.
Condensed
Financial Information of the Registrant
Statements
of Operations - Parent Company Only
(in
thousands)
| |
|
Years Ended December
31, |
|
| |
|
2016 |
|
|
2015 |
|
|
2014 |
|
| |
|
|
|
|
|
|
|
|
|
| Management fees
from subsidiaries |
|
$ |
12,968 |
|
|
$ |
9,857 |
|
|
$ |
12,731 |
|
| Selling, general and administrative
expenses |
|
|
14,491 |
|
|
|
14,336 |
|
|
|
12,779 |
|
| Asset
impairment |
|
|
– |
|
|
|
1,970 |
|
|
|
– |
|
| Loss
from operations |
|
|
(1,523 |
) |
|
|
(6,449 |
) |
|
|
(48 |
) |
| Fair value adjustments and
warrant inducements |
|
|
(557 |
) |
|
|
1,641 |
|
|
|
(37,532 |
) |
| Interest income |
|
|
5,964 |
|
|
|
5,739 |
|
|
|
4,753 |
|
| Interest expense |
|
|
(240 |
) |
|
|
(27 |
) |
|
|
(1,813 |
) |
| Loss on extinguishments
of debt |
|
|
– |
|
|
|
– |
|
|
|
(2,363 |
) |
| Other
income |
|
|
1,931 |
|
|
|
– |
|
|
|
– |
|
| Income
(loss) before provision for income taxes |
|
|
5,575 |
|
|
|
904 |
|
|
|
(37,003 |
) |
| Provision
(benefit) for income taxes |
|
|
(981 |
) |
|
|
(10,034 |
) |
|
|
15,137 |
|
| Income
(loss) before equity in earnings of subsidiaries |
|
|
6,556 |
|
|
|
10,938 |
|
|
|
(52,140 |
) |
| Equity
in earnings (losses) of subsidiaries |
|
|
(5,137 |
) |
|
|
(29,724 |
) |
|
|
73,429 |
|
| Consolidated
net income (loss) |
|
$ |
1,419 |
|
|
$ |
(18,786 |
) |
|
$ |
21,289 |
|
Pacific
Ethanol, Inc.
Condensed
Financial Information of the Registrant
Statements
of Cash Flows - Parent Company Only
(in
thousands)
| |
|
2016 |
|
|
2015 |
|
|
2014 |
|
| Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
1,419 |
|
|
$ |
(18,786 |
) |
|
$ |
21,289 |
|
| Adjustments to reconcile
net income (loss) to cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Equity in earnings (losses)
of subsidiaries |
|
|
5,137 |
|
|
|
29,724 |
|
|
|
(73,429 |
) |
| Depreciation and amortization |
|
|
727 |
|
|
|
390 |
|
|
|
126 |
|
| Fair value adjustments |
|
|
557 |
|
|
|
(1,641 |
) |
|
|
35,260 |
|
| Loss on extinguishments
of debt |
|
|
– |
|
|
|
– |
|
|
|
2,363 |
|
| Asset impairment |
|
|
– |
|
|
|
1,970 |
|
|
|
– |
|
| Deferred income taxes |
|
|
(1,122 |
) |
|
|
(14,260 |
) |
|
|
5,128 |
|
| Amortization of debt discount |
|
|
10 |
|
|
|
– |
|
|
|
1,674 |
|
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivables |
|
|
7,302 |
|
|
|
(5,958 |
) |
|
|
(7,001 |
) |
| Other assets |
|
|
4,647 |
|
|
|
(4,139 |
) |
|
|
1,365 |
|
| AP and accruals |
|
|
(3,741 |
) |
|
|
604 |
|
|
|
(587 |
) |
| Accounts
payable with subsidiaries |
|
|
(9,385 |
) |
|
|
11,179 |
|
|
|
5,846 |
|
| Net
cash provided by (used in) provided by operating activities |
|
$ |
5,551 |
|
|
$ |
(917 |
) |
|
$ |
(7,966 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Additions to property and
equipment |
|
$ |
(465 |
) |
|
$ |
(1,483 |
) |
|
$ |
(455 |
) |
| Purchases of investments
in subsidiaries |
|
|
– |
|
|
|
– |
|
|
|
(6,000 |
) |
| Investments in subsidiaries |
|
|
(50,886 |
) |
|
|
– |
|
|
|
– |
|
| Purchase
of PE OP Co. debt |
|
|
(17,003 |
) |
|
|
– |
|
|
|
(17,038 |
) |
| Net
cash used in investing activities |
|
$ |
(68,354 |
) |
|
$ |
(1,483 |
) |
|
$ |
(23,493 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from issuance of
senior notes |
|
$ |
53,350 |
|
|
$ |
– |
|
|
$ |
– |
|
| Proceeds from exercise of
warrants |
|
|
1,164 |
|
|
|
368 |
|
|
|
43,676 |
|
| Preferred stock dividends |
|
|
(1,269 |
) |
|
|
(1,265 |
) |
|
|
(3,459 |
) |
| Proceeds from equity raise |
|
|
– |
|
|
|
– |
|
|
|
26,073 |
|
| Payment on related party
note |
|
|
– |
|
|
|
– |
|
|
|
(750 |
) |
| Payments
on senior notes |
|
|
– |
|
|
|
– |
|
|
|
(13,984 |
) |
| Net
cash provided by (used in) financing activities |
|
$ |
53,245 |
|
|
$ |
(897 |
) |
|
$ |
51,556 |
|
| Net
increase (decrease) increase in cash and equivalents |
|
|
(9,558 |
) |
|
|
(3,297 |
) |
|
|
20,097 |
|
| Cash
and equivalents at beginning of period |
|
|
20,618 |
|
|
|
23,915 |
|
|
|
3,818 |
|
| Cash
and equivalents at ending of period |
|
$ |
11,060 |
|
|
$ |
20,618 |
|
|
$ |
23,915 |
|
|