Alto Ingredients, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PARENT COMPANY FINANCIALS.

PARENT COMPANY FINANCIALS.

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Disclosure [Abstract]

11.	PARENT COMPANY FINANCIALS.

Restricted Net Assets – At March 31, 2019, the Company had approximately $195,000,000 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 (in thousands):

ASSETS	March 31, 2019			December 31, 2018

Current Assets:
Cash and cash equivalents	$	6,282		$	6,759
Receivables from subsidiaries		10,378			17,156
Other current assets		1,710			1,659
Total current assets		18,370			25,574

Property and equipment, net		447			522
Other Assets:
Investments in subsidiaries		282,132			286,666
Pacific Ethanol West plant receivable		58,766			58,766
Right of use operating lease assets, net		3,444			—
Other assets		1,437			1,437
Total other assets		345,779			346,869

Total Assets	$	364,596		$	372,965

Liabilities

Current Liabilities:
Accounts payable and accrued liabilities	$	2,950		$	2,469
Accrued PE Op Co. purchase		3,829			3,829
Current portion of long-term debt		62,689			66,255
Other current liabilities		613			385
Total current liabilities		70,081			72,938

Operating leases, net of current portion		3,231			—
Deferred tax liabilities		251			251
Other liabilities		1			9

Total Liabilities		73,564			73,198

Stockholders’ Equity:
Preferred stock		1			1
Common and non-voting common stock		49			46
Additional paid-in capital		936,643			932,179
Accumulated other comprehensive loss		(2,459	)		(2,459	)
Accumulated deficit		(643,202	)		(630,000	)
Total Pacific Ethanol, Inc. stockholders’ equity		291,032			299,767

Total Liabilities and Stockholders’ Equity	$	364,596		$	372,965

	Three Months Ended March 31,
	2019			2018
Management fees from subsidiaries	$	3,330		$	3,078
Selling, general and administrative expenses		4,729			5,376
Loss from operations		(1,399	)		(2,298	)
Interest income		1,159			1,161
Interest expense		(2,456	)		(2,132	)
Loss before benefit for income taxes		(2,696	)		(3,269	)
Benefit for income taxes		—			563
Loss before equity in losses of subsidiaries		(2,696	)		(2,706	)
Equity in losses of subsidiaries		(10,194	)		(5,135	)
Consolidated net loss	$	(12,890	)	$	(7,841	)

	For the Three Months Ended March 31,
	2019			2018
Operating Activities:
Net loss	$	(12,890	)	$	(7,841	)
Adjustments to reconcile net loss to cash used in operating activities:
Equity in losses of subsidiaries		10,194			5,135
Depreciation		75			186
Deferred income taxes		—			563
Amortization of debt discounts		178			179
Changes in operating assets and liabilities:
Accounts receivables		1,778			(2,673	)
Other assets		(264	)		(937	)
Accounts payable and accrued expenses		45			1,759
Accounts payable with subsidiaries		797			(625	)
Net cash used in operating activities	$	(87	)	$	(4,254	)
Investing Activities:
Additions to property and equipment	$	—		$	(13	)
Net cash used in investing activities	$	—		$	(13	)
Financing Activities:
Proceeds from issuances of common stock	$	3,670		$	—
Payments on senior notes		(3,748	)		—
Preferred stock dividend payments		(312	)		(312	)
Net cash used in financing activities	$	(390	)	$	(312	)
Net decrease in cash and cash equivalents		(477	)		(4,579	)
Cash and cash equivalents at beginning of period		6,759			5,314
Cash and cash equivalents at end of period	$	6,282		$	735