| PARENT COMPANY FINANCIALS. |
|
10. |
PARENT
COMPANY FINANCIALS. |
Restricted
Net Assets – At March 31, 2020, the Company had approximately $174,900,000 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):
| |
|
March
31, |
|
|
December 31,
|
|
| ASSETS |
|
2020
|
|
|
2019 |
|
| |
|
|
|
|
|
|
| Current Assets: |
|
|
|
|
|
|
| Cash
and cash equivalents |
|
$ |
9,721 |
|
|
$ |
4,985 |
|
| Receivables
from subsidiaries |
|
|
12,934 |
|
|
|
13,057 |
|
| Other
current assets |
|
|
2,336 |
|
|
|
2,349 |
|
| Total
current assets |
|
|
24,991 |
|
|
|
20,391 |
|
| |
|
|
|
|
|
|
|
|
| Property
and equipment, net |
|
|
235 |
|
|
|
269 |
|
| Other
Assets: |
|
|
|
|
|
|
|
|
| Investments
in subsidiaries |
|
|
195,597 |
|
|
|
218,464 |
|
| Pacific
Ethanol West plant receivable |
|
|
49,937 |
|
|
|
55,750 |
|
| Right
of use operating lease assets, net |
|
|
3,187 |
|
|
|
3,253 |
|
| Other
assets |
|
|
1,451 |
|
|
|
1,452 |
|
| Total
other assets |
|
|
250,172 |
|
|
|
278,919 |
|
| Total
Assets |
|
$ |
275,398 |
|
|
$ |
299,579 |
|
| Current
Liabilities: |
|
|
|
|
|
|
|
|
| Accounts
payable and accrued liabilities |
|
$ |
4,721 |
|
|
$ |
5,907 |
|
| Accrued
PE Op Co. purchase |
|
|
3,829 |
|
|
|
3,829 |
|
| Current
portion of long-term debt |
|
|
10,000 |
|
|
|
10,000 |
|
| Other
current liabilities |
|
|
3,128 |
|
|
|
659 |
|
| Total
current liabilities |
|
|
21,678 |
|
|
|
20,395 |
|
| |
|
|
|
|
|
|
|
|
| Long-term
debt, net of current portion |
|
|
54,931 |
|
|
|
56,110 |
|
| Other
liabilities |
|
|
3,278 |
|
|
|
3,294 |
|
| Total
Liabilities |
|
|
79,887 |
|
|
|
79,799 |
|
| Stockholders'
Equity: |
|
|
|
|
|
|
|
|
| Preferred
stock |
|
|
1 |
|
|
|
1 |
|
| Common
and non-voting common stock |
|
|
56 |
|
|
|
56 |
|
| Additional
paid-in capital |
|
|
943,453 |
|
|
|
942,307 |
|
| Accumulated
other comprehensive loss |
|
|
(2,370 |
) |
|
|
(2,370 |
) |
| Accumulated
deficit |
|
|
(745,629 |
) |
|
|
(720,214 |
) |
| Total
Pacific Ethanol, Inc. stockholders' equity |
|
|
195,511 |
|
|
|
219,780 |
|
| Total
Liabilities and Stockholders' Equity |
|
$ |
275,398 |
|
|
$ |
299,579 |
|
| |
|
Three
Months Ended
March 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Management
fees from subsidiaries |
|
$ |
3,253 |
|
|
$ |
3,330 |
|
| Selling,
general and administrative expenses |
|
|
5,377 |
|
|
|
4,729 |
|
| Loss
from operations |
|
|
(2,124 |
) |
|
|
(1,399 |
) |
| Fair
value adjustments |
|
|
673 |
|
|
|
— |
|
| Interest
income |
|
|
1,042 |
|
|
|
1,159 |
|
| Interest
expense |
|
|
(2,640 |
) |
|
|
(2,456 |
) |
| Loss
before benefit for income taxes |
|
|
(3,049 |
) |
|
|
(2,696 |
) |
| Benefit
for income taxes |
|
|
— |
|
|
|
— |
|
| Loss
before equity in losses of subsidiaries |
|
|
(3,049 |
) |
|
|
(2,696 |
) |
| Equity
in losses of subsidiaries |
|
|
(22,051 |
) |
|
|
(10,194 |
) |
| Consolidated
net loss |
|
$ |
(25,100 |
) |
|
$ |
(12,890 |
) |
| |
|
For the Three Months
Ended
March 31,
|
|
| |
|
2020 |
|
|
2019 |
|
| Operating Activities: |
|
|
|
|
|
|
| Net
loss |
|
$ |
(25,100 |
) |
|
$ |
(12,890 |
) |
| Adjustments
to reconcile net loss to cash used in operating activities: |
|
|
|
|
|
|
|
|
| Equity
in losses of subsidiaries
|
|
|
22,051 |
|
|
|
10,194 |
|
| Fair value adjustments |
|
|
(673 |
) |
|
|
— |
|
| Depreciation |
|
|
33 |
|
|
|
75 |
|
| Amortization
(accretion) of debt discount (premium) |
|
|
(57 |
) |
|
|
178 |
|
| Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Receivables
from subsidiaries |
|
|
123 |
|
|
|
1,778 |
|
| Other
assets |
|
|
29 |
|
|
|
(264 |
) |
| Accounts
payable and accrued expenses |
|
|
— |
|
|
|
45 |
|
| Accounts
payable with subsidiaries |
|
|
2,235 |
|
|
|
797 |
|
| Net
cash used in operating activities |
|
$ |
(1,359 |
) |
|
$ |
(87 |
) |
| Investing Activities: |
|
|
|
|
|
|
|
|
| Additions
to property and equipment |
|
$ |
— |
|
|
$ |
— |
|
| Net
cash used in investing activities |
|
$ |
— |
|
|
$ |
— |
|
| Financing Activities: |
|
|
|
|
|
|
|
|
| Proceeds
from issuances of common stock |
|
$ |
282 |
|
|
$ |
3,670 |
|
| Proceeds
from plant receivable |
|
|
5,813 |
|
|
|
— |
|
| Payments
on senior notes |
|
|
— |
|
|
|
(3,748 |
) |
| Preferred
stock dividend payments |
|
|
— |
|
|
|
(312 |
) |
| Net
cash provided by (used in) financing activities |
|
$ |
6,095 |
|
|
$ |
(390 |
) |
| Net
increase (decrease) in cash and cash equivalents |
|
|
4,736 |
|
|
|
(477 |
) |
| Cash
and cash equivalents at beginning of period |
|
|
4,985 |
|
|
|
6,759 |
|
| Cash
and cash equivalents at end of period |
|
$ |
9,721 |
|
|
$ |
6,282 |
|
|