| 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 report 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 |
|
|