General form of registration statement for all companies including face-amount certificate companies

PARENT COMPANY FINANCIALS.

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PARENT COMPANY FINANCIALS.
 9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]    
PARENT COMPANY FINANCIALS.
11. PARENT COMPANY FINANCIALS.

 

Restricted Net Assets – At September 30, 2019, the Company had approximately $184,763,000 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 prospectus are set forth below (in thousands):

 

    September 30,
2019		     December 31,
2018		  
Current Assets:            
Cash and cash equivalents   $ 5,658     $ 6,759  
Receivables from subsidiaries     12,270       17,156  
Other current assets     1,183       1,659  
Total current assets     19,111       25,574  
                 
Property and equipment, net     308       522  
Other Assets:                
Investments in subsidiaries     249,641       286,666  
Pacific Ethanol West plant receivable     55,750       58,766  
Right of use operating lease assets, net     3,318       —  
Other assets     1,529       1,437  
Total other assets     310,238       346,869  
Total Assets   $ 329,657     $ 372,965  
Current Liabilities:                
Accounts payable and accrued liabilities   $ 2,437     $ 2,469  
Accrued PE Op Co. purchase     3,829       3,829  
Current portion of long-term debt     62,866       66,255  
Other current liabilities     587       385  
Total current liabilities     69,719       72,938  
                 
Operating leases, net of current portion     3,108       —  
Deferred tax liabilities     251       251  
Other liabilities     —       9  
Total Liabilities     73,078       73,198  
Stockholders' Equity:                
Preferred stock     1       1  
Common and non-voting common stock     50       46  
Additional paid-in capital     937,795       932,179  
Accumulated other comprehensive loss     (2,459 )     (2,459 )
Accumulated deficit     (678,808 )     (630,000 )
Total Pacific Ethanol, Inc. stockholders' equity     256,579       299,767  
Total Liabilities and Stockholders' Equity   $ 329,657     $ 372,965  

  

   

Three Months Ended

September 30,

    

Nine Months Ended

September 30,

  
    2019     2018     2019     2018  
                         
Management fees from subsidiaries   $ 3,330     $ 3,330     $ 9,660     $ 9,738  
Selling, general and administrative expenses     3,827       3,181       11,374       13,069  
Income (loss) from operations     (497 )     149       (1,714 )     (3,331 )
Interest income     1,145       1,185       3,486       3,518  
Interest expense     (2,276 )     (2,171 )     (7,039 )     (6,458 )
Other expense     (4 )     (4 )     (86 )     —  
Loss before benefit for income taxes     (1,632 )     (841 )     (5,353 )     (6,271 )
Benefit for income taxes     —       —       —       563  
Loss before benefit for income taxes     (1,632 )     (841 )     (5,353 )     (5,708 )
Equity in losses of subsidiaries     (25,694 )     (6,673 )     (42,509 )     (22,555 )
Consolidated net loss   $ (27,326 )   $ (7,514 )   $ (47,862 )   $ (28,263 )

 

   

For the

Nine Months Ended

September 30,

  
    2019     2018  
Operating Activities:            
Net loss   $ (47,862 )   $ (28,263 )
Adjustments to reconcile net loss to cash used in operating activities:                
Equity in losses of subsidiaries     42,509       22,555  
Depreciation     227       481  
Deferred income taxes     —       563  
Amortization of debt discounts     539       357  
Changes in operating assets and liabilities:                
Accounts receivables     (114 )     (5,062 )
Other assets     173       2,489  
Accounts payable and accrued expenses     1,950       5  
Accounts payable with subsidiaries     (502 )     (622 )
Net cash used in operating activities   $ (3,080 )   $ (7,497 )
Investing Activities:                
Dividend from subsidiaries   $ —     $ 10,000  
Contributions to subsidiaries     —       (5,000 )
Additions to property and equipment     (13 )     (6 )
Net cash provided by (used in) investing activities   $ (13 )   $ 4,994  
Financing Activities:                
Proceeds from issuances of common stock   $ 3,670     $ —  
Proceeds from Pacific Ethanol West     3,016       —  
Payments on senior notes     (3,748 )     —  
Preferred stock dividend payments     (946 )     (946 )
Net cash provided by (used in) financing activities   $ 1,992     $ (946 )
Net decrease in cash and cash equivalents     (1,101 )     (3,449 )
Cash and cash equivalents at beginning of period     6,759       5,314  
Cash and cash equivalents at end of period   $ 5,658     $ 1,865  
16. PARENT COMPANY FINANCIALS.

 

Restricted Net Assets – At December 31, 2018, the Company had approximately $190,200,000 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.

 

    December 31,  
    2018     2017  
ASSETS            
Current Assets:            
Cash and cash equivalents   $ 6,759     $ 5,314  
Receivables from subsidiaries     17,156       3,138  
Other current assets     1,659       1,631  
Total current assets     25,574       10,083  
                 
Property and equipment, net     522       1,071  
                 
Other Assets:                
Investments in subsidiaries     286,666       359,680  
Pacific Ethanol West plant receivable     58,766       58,766  
Other assets     1,437       1,565  
Total other assets     346,869       420,011  
Total Assets   $ 372,965     $ 431,165  
                 
Current Liabilities:                
Accounts payable and accrued liabilities   $ 2,469     $ 2,218  
Payable to subsidiaries     —       625  
Accrued PE Op Co. purchase     3,829       3,828  
Current portion of long-term debt     66,255       —  
Other current liabilities     385       245  
Total current liabilities     72,938       6,916  
                 
Long-term debt, net     —       67,530  
Deferred tax liabilities     251       224  
Other liabilities     9       56  
Total Liabilities     73,198       74,726  
                 
Stockholders' Equity:                
Preferred stock     1       1  
Common and non-voting common stock     46       44  
Additional paid-in capital     932,179       927,090  
Accumulated other comprehensive loss     (2,459 )     (2,234 )
Accumulated deficit     (630,000 )     (568,462 )
Total Pacific Ethanol, Inc. stockholders' equity     299,767       356,439  
Total Liabilities and Stockholders' Equity   $ 372,965     $ 431,165  

 

    Years Ended December 31,  
    2018     2017     2016  
Management fees from subsidiaries   $ 12,408     $ 11,904     $ 12,968  
Selling, general and administrative expenses     16,795       18,185       14,491  
Loss from operations     (4,387 )     (6,281 )     (1,523 )
Fair value adjustments     —       473       (557 )
Interest income     4,703       4,793       5,964  
Interest expense     (8,678 )     (5,829 )     (240 )
Other income (expense), net     (74 )     (95 )     1,931  
Income (loss) before provision (benefit) for income taxes     (8,436 )     (6,939 )     5,575  
Provision (benefit) for income taxes     (562 )     (321 )     (981 )
Income (loss) before equity in earnings of subsidiaries     (7,874 )     (6,618 )     6,556  
Equity in losses of subsidiaries     (52,399 )     (28,346 )     (5,137 )
Consolidated net income (loss)   $ (60,273 )   $ (34,964 )   $ 1,419  

  

    For the Years Ended December 31,  
    2018     2017     2016  
Operating Activities:                  
Net income (loss)   $ (60,273 )   $ (34,964 )   $ 1,419  
Adjustments to reconcile net income (loss) to cash provided by operating activities:                        
Equity in losses of subsidiaries     52,399       28,346       5,137  
Dividends from subsidiaries     25,000       3,500       —  
Depreciation     567       830       727  
Fair value adjustments     —       (473 )     557  
Deferred income taxes     27       169       (1,122 )
Amortization of debt discounts     720       636       10  
Changes in operating assets and liabilities:                        
Accounts receivables     (9,018 )     4,065       7,302  
Other assets     100       4,356       4,647  
Accounts payable and accrued expenses     740       3,859       (3,741 )
Accounts payable with subsidiaries     2,409       (943 )     (9,385 )
Net cash provided by operating activities   $ 12,671     $ 9,381     $ 5,551  
Investing Activities:                        
Additions to property and equipment   $ (18 )   $ (468 )   $ (465 )
Investments in subsidiaries     (10,000 )     (28,126 )     (50,886 )
Purchase of PE OP Co. debt     —       —       (17,003 )
Net cash used in investing activities   $ (10,018 )   $ (28,594 )   $ (68,354 )
Financing Activities:                        
Proceeds from issuances of senior notes   $ —     $ 13,530     $ 53,350  
Proceeds from issuance of common stock     2,057       —       —  
Proceeds from warrant stock option exercises     —       1,202       1,164  
Payments on senior notes     (2,000 )     —       —  
Preferred stock dividend payments     (1,265 )     (1,265 )     (1,269 )
Net cash provided by (used in) financing activities   $ (1,208 )   $ 13,467     $ 53,245  
Net increase (decrease) in cash and cash equivalents     1,445       (5,746 )     (9,558 )
Cash and cash equivalents at beginning of period     5,314       11,060       20,618  
Cash and cash equivalents at end of period   $ 6,759     $ 5,314     $ 11,060