Pacific Ethanol Inc (PEIX) saw its loss narrow to $3.52 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $14.66 million, or $0.36 a share.
Revenue during the quarter grew 9.77 percent to $417.81 million from $380.62 million in the previous year period. Gross margin for the quarter period stood at positive 1.52 percent as compared to a negative 1.94 percent for the previous year period. Operating margin for the quarter period stood at positive 0.09 percent as compared to a negative 3.90 percent for the previous year period.
Operating income for the quarter was $0.39 million, compared with an operating loss of $14.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.28 million compared with $2.43 million in the prior year period. At the same time, adjusted EBITDA margin improved 158 basis points in the quarter to 2.22 percent from 0.64 percent in the last year period.
Neil Koehler, the company’s president and chief executive officer, stated: “During the third quarter, we sold a record 243.7 million gallons of ethanol, reflecting increased output from our eight production facilities as well as a 16% increase in third party sales over the comparable period in 2015. As a result, net sales grew 10% compared to the third quarter of last year. This also demonstrates our success in integrating and optimizing our Midwest assets.
Working capital turns negative
Working capital of Pacific Ethanol Inc has turned negative to $15.88 million on Sep. 30, 2016 from positive $107.32 million on Sep. 30, 2015. Current ratio was at 0.93 as on Sep. 30, 2016, down from 2.42 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 13 days for the quarter from 12 days for the last year period. Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 7 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 5 days for the quarter from 7 for the same period last year.
Debt moves up
Pacific Ethanol Inc has witnessed an increase in total debt over the last one year. It stood at $222.53 million as on Sep. 30, 2016, up 7.42 percent or $15.36 million from $207.17 million on Sep. 30, 2015. Total debt was 33.86 percent of total assets as on Sep. 30, 2016, compared with 31.01 percent on Sep. 30, 2015. Debt to equity ratio was at 0.62 as on Sep. 30, 2016, up from 0.56 as on Sep. 30, 2015.
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