Aventine Renewable Energy Holdings Inc
Aventine Renewable Energy — FY2014 Earnings Presentation
16 slides from Aventine Renewable Energy's earnings presentation, Mar 5, 2015
Slide 1: Pacific Ethanol Corporate Overview: Q4 & FY 2014
1 Leading Producer and Marketer of Low - Carbon Renewable Fuels Strong Long - term Demand for Ethanol Pacific Ethanol Corporate Overview: Q4 & FY 2014 Differentiated Business Model & Diversified Revenue Streams
Slide 2: Forward-Looking Statements
2 2 Statements contained in this communication that refer to Pacific Ethanol’s estimated or anticipated future results or other n on - historical expressions of fact are forward - looking statements that reflect Pacific Ethanol’s current perspective of existing trends and inf ormation as of the date
Slide 3: Additional Information
3 3 Additional Information This communication is being made partially in respect of the proposed merger between Pacific Ethanol, Inc. and Aventine Renewable Energy Holdings, Inc. In connection with the proposed merger, Pacific Ethanol has filed with the Securities and Exchange Commission a registrat
Slide 4: Financial Highlights
4 4 Financial Highlights Full Year 2014 Results: Net sales were $1.1B Total gallons sold was 513.2M Gross profit was $108.5M Operating income was $91.4M Adjusted EBITDA was $95.0M Fourth Quarter 2014 Results: Net sales were $256.2M Total gallons sold was 134.6M Gross profit was $18.4M Operating inco
Slide 5: 2014 Accomplishments
5 5 2014 Accomplishments Restarted Madera, CA plant in Q2 2014 Committed $16M in CAPEX plant projects to increase efficiencies & yields Commissioned installation of corn oil separation technology; expected to be completed by end of Q1 for Madera & beginning of Q2 for Boardman Contracted to sell CO 2
Slide 6: Established Strong Foundation for Growth
6 6 Repurchased plant ownership interest, now at 96% Established Strong Foundation for Growth 2014 initiatives have strengthened our balance sheet and improved liquidity Reduced cost of borrowing and enhanced liquidity Reduced overall debt balances • Eliminated parent company debt • Significantly re
Slide 7: Aventine Merger Agreement Highlights
7 7 Aventine Merger Agreement Highlights On Dec. 31, 2014 Pacific Ethanol, Inc. and Aventine Renewable Energy Holdings, Inc. announced a definitive merger agreement under which Pacific Ethanol is to acquire all of the outstanding shares of Aventine in a stock - for - stock merger. Connects Destinati
Slide 8: Recent Industry Dynamics
8 8 Recent Industry Dynamics Fundamentals unchanged despite recent seasonality Achieving a better supply & demand balance to result in improved production margins US exports remain strong and getting stronger; reached 836 million gallons in 2014, up 35% from 2013 1 Co - product values remained high
Slide 9: California Low-Carbon Fuel Standard
9 California Low - Carbon Fuel Standard The world’s first greenhouse gas standard for transportation fuels CARB evaluating re - adoption of the Low - Carbon Fuel Standard (LCFS) with a decision expected in the summer of 2015 ⁻ Original bill requires a 10% reduction in carbon intensity by 2020 CARB e
Slide 10: Financial Overview
10 10 Q4’14 Q4’13 FY 2014 FY 2013 Net sales $ 256,152 $ 215,290 $1,107,412 $ 908,437 Gross profit 18,378 21,596 108,485 32,930 SG&A 4,731 4,372 17,108 14,021 Operating income 13,647 17,224 91,377 18,909 Fair value adjustments 2,205 (2,520) (37,532) (1,013) Interest expense (1,068) (3,688) (9,438) (1
Slide 11: Balance Sheet Highlights
11 11 At: December 31, 2014 December 31, 2013 Cash & cash equivalents $ 62,084 $ 5,151 Current assets $139,551 $ 79,377 Total assets $ 299,502 $ 241,049 Current liabilities $ 25,447 $ 28,216 Total liabilities $ 81,520 $ 146,148 Stockholders’ equity $217,982 $ 94,901 Total liabilities & stockholders’
Slide 12: Plant Improvements
12 12 Plant Improvements In Q2’14, designated $16M CAPEX for plant improvement investments $4.5M spent in 2014 ($ 2.8M in Q4’14) In 2015, expect to spend approximately $30M in CAPEX $ 11.0M on co - generation project $ 11.5M on additional opportunities (remainder from initial $16M budget above) $4M
Slide 13: Focused on Closing Aventine Merger and Improving Long-term Profitability
13 13 Close Aventine Renewable Energy merger (expected Q2’2015) Complete capital improvement projects to improve efficiencies, diversify revenue & feedstock, & further advanced biofuels initiatives Focused on Closing Aventine Merger and Improving Long - term Profitability Integrate production & mark
Slide 14: Appendix
14 Appendix Thank You
Slide 15: Use of Non-GAAP Measures
15 15 Use of Non - GAAP Measures Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations . The company defines Adjusted Net Earnings as unaudited earnings before fair value adjustments and warrant
Slide 16: Adjusted Net Earnings reconciliation
Adjusted Net Earnings per share - diluted $ 0.41 $ 0.79 $ 2.64 $ 0.16 _
Aventine Renewable Energy Holdings — FY2014 Earnings Presentation on 6ix