Pacific Ethanol Inc. (PEIX, Financial) filed Quarterly Report for the period ended 2009-06-30.
Pacific Ethanol Inc. is currently in the business of marketing ethanol in the Western United States through Kinergy Marketing a wholly-owned subsidiary of the Company and the largest West Coast-based marketer of renewable fuels. The Company intends in the near future to construct an ethanol production facility at its Madera County California site. Pacific Ethanol Inc. has a market cap of $21.9 million; its shares were traded at around $0.38 .
Our average sales price per gallon decreased 30% to $1.69 for the six months ended June 30, 2009 from an average sales price per gallon of $2.43 for the six months ended June 30, 2008. The average CBOT price per gallon decreased 33% to $1.62 for the six months ended June 30, 2009 from an average CBOT price per gallon of $2.43 for the six months ended June 30, 2008. As in the three month period, our average sales price per gallon remained above the CBOT price per gallon.
Our gross margin declined to a negative 11.2% for the three months ended June 30, 2009 from a positive gross margin of 0.2% for the same period in 2008 due to increased costs to manage the facilities in relation to the volume produced, particularly as it relates to our three facilities not producing ethanol but still incurring maintenance costs and depreciation expense. Total depreciation for the three months ended June 30, 2009 was approximately $8,263,000, as compared to approximately $5,949,000 for the same period in 2008. In addition, due to necessary adjustments to our Columbia facility s production activities, the facility was not running as efficiently as it had been in the three months ended June 30, 2008.
Our gross margin declined to a negative 12.1% for the six months ended June 30, 2009 from a positive gross margin of 4.5% for the same period in 2008 due to increased costs to manage the facilities in relation to the volume produced, particularly as it relates to our three facilities not producing ethanol but still incurring maintenance costs and depreciation expense. Total depreciation for the six months ended June 30, 2009 was approximately $16,657,000, as compared to approximately $10,128,000 for the same period in 2008.
Our selling, general and administrative expenses, or SG&A, decreased in absolute dollars, but increased as a percentage of net sales for the three months ended June 30, 2009. SG&A decreased by $1,424,000 to $6,254,000 for the three months ended June 30, 2009 as compared to SG&A of $7,678,000 for the same period in 2008. The decrease in the dollar amount of SG&A is primarily due to the following factors:
Our SG&A decreased in absolute dollars, but also increased as a percentage of net sales for the six months ended June 30, 2009. SG&A decreased by $3,616,000 to $13,928,000 for the six months ended June 30, 2009 as compared to SG&A of $17,544,000 for the same period in 2008. The decrease in SG&A is primarily due to the following factors:
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Pacific Ethanol Inc. is currently in the business of marketing ethanol in the Western United States through Kinergy Marketing a wholly-owned subsidiary of the Company and the largest West Coast-based marketer of renewable fuels. The Company intends in the near future to construct an ethanol production facility at its Madera County California site. Pacific Ethanol Inc. has a market cap of $21.9 million; its shares were traded at around $0.38 .
Highlight of Business Operations:
Our average sales price per gallon decreased 31% to $1.75 for the three months ended June 30, 2009 from an average sales price per gallon of $2.55 for the three months ended June 30, 2008, while the average CBOT price per gallon decreased 35% to $1.66 for the three months ended June 30, 2009 from an average CBOT price per gallon of $2.57 for the three months ended June 30, 2008. Our average sales price per gallon did not decrease as much as the average CBOT price per gallon, and remained above the CBOT average price for the period.Our average sales price per gallon decreased 30% to $1.69 for the six months ended June 30, 2009 from an average sales price per gallon of $2.43 for the six months ended June 30, 2008. The average CBOT price per gallon decreased 33% to $1.62 for the six months ended June 30, 2009 from an average CBOT price per gallon of $2.43 for the six months ended June 30, 2008. As in the three month period, our average sales price per gallon remained above the CBOT price per gallon.
Our gross margin declined to a negative 11.2% for the three months ended June 30, 2009 from a positive gross margin of 0.2% for the same period in 2008 due to increased costs to manage the facilities in relation to the volume produced, particularly as it relates to our three facilities not producing ethanol but still incurring maintenance costs and depreciation expense. Total depreciation for the three months ended June 30, 2009 was approximately $8,263,000, as compared to approximately $5,949,000 for the same period in 2008. In addition, due to necessary adjustments to our Columbia facility s production activities, the facility was not running as efficiently as it had been in the three months ended June 30, 2008.
Our gross margin declined to a negative 12.1% for the six months ended June 30, 2009 from a positive gross margin of 4.5% for the same period in 2008 due to increased costs to manage the facilities in relation to the volume produced, particularly as it relates to our three facilities not producing ethanol but still incurring maintenance costs and depreciation expense. Total depreciation for the six months ended June 30, 2009 was approximately $16,657,000, as compared to approximately $10,128,000 for the same period in 2008.
Our selling, general and administrative expenses, or SG&A, decreased in absolute dollars, but increased as a percentage of net sales for the three months ended June 30, 2009. SG&A decreased by $1,424,000 to $6,254,000 for the three months ended June 30, 2009 as compared to SG&A of $7,678,000 for the same period in 2008. The decrease in the dollar amount of SG&A is primarily due to the following factors:
Our SG&A decreased in absolute dollars, but also increased as a percentage of net sales for the six months ended June 30, 2009. SG&A decreased by $3,616,000 to $13,928,000 for the six months ended June 30, 2009 as compared to SG&A of $17,544,000 for the same period in 2008. The decrease in SG&A is primarily due to the following factors:
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