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Pacific Ethanol reported impressive second quarter results. Here are the key points from the press release and a brief synopsis of the second quarter and for the six months ending June 30th:

peix logo Second Quarter:

- Net sales for Q2 of 2006 double those of Q2 of 2005; 46.5 million as compared to 22.8 million for the second quarter of 2005 (104%). The increase resulted from:

-An increase in the Company's sales volume of 4.2 million gallons, or 27%, to 19.8 million gallons from 15.56 million gallons for the second quarter of 2005
-An increase in the Company's average price of ethanol by $0.99, or 68%, to $2.45 per gallon from $1.46 per gallon for the second quarter of 2005

- Construction of plants in California and Oregon are on schedule for completion in Q4 of 2006 and Q2 of 2007
- Three additional ethanol plant projects in advanced stages of development
- Gross profit for the second quarter of 2006 totaled $3.3 million, as compared to $151,525 for the second quarter of 2005
- Net loss for the second quarter of 2006 decreased to $182,373, as compared to $2.2 million for the second quarter of 2005
- Basic and diluted loss per common share of $2.56 for the second quarter of 2006 as compared to $0.08 for the same period in 2005. Reasoning:

-$2.53 of the total $2.56 in basic and diluted loss per common share is due to the Company recording a deemed dividend on its preferred stock in the amount of $84 million.

- Absent this one-time deemed dividend, the Company would have reported basic and diluted loss per common share of $0.03 for the second quarter of 2006.

For the Six Months Ended June 30, 2006:

- Company reported net sales of $84.7 million, an increase of $59.6 million, or 237%, as compared to $25.1 million for the same period in 2005
- Sales volume increased by 22.7 million gallons, or 134%, to 39.7 million gallons from 17.0 million gallons for the six months ended June 30, 2005
- Company's average sales price of ethanol increased by $0.70 per gallon, or 47%, to $2.18 per gallon from $1.48 per gallon for the six months ended June 30, 2005
- Gross profit for the six months ended June 30, 2006 increased by $5.4 million to $5.6 million, as compared to $199,152 for same period in 2005
- Net loss for the six months ended June 30, 2006 totaled $794,137 as compared to $3.9 million for the same period in 2005
- The Company reported basic and diluted loss per common share of $2.73 for the six months ended June 30, 2006 as compared to $0.18 for the same period in 2005
- As of June 30, 2006, the Company had cash totaling approximately $200 million due to the completion of two equity financings during the second quarter of 2006.

PEIX is bullish on the news. Will this be a one day thing? Or can Pacific Ethanol build off of this? It is leading all ethanol stocks as most are seeing green.

PEIX 1-yr chart:

PEIX 1-yr

And a look at the balance sheet:

PACIFIC ETHANOL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(UNAUDITED)

PEIX bal

Source: Pacific Ethanol Posts Impressive Second Quarter