Aventine Renewable Energy Holdings Inc
Aventine Renewable Energy — Q1 2015 Earnings Presentation
14 slides from Aventine Renewable Energy's earnings presentation, May 12, 2015
Slide 1: Pacific Ethanol First Quarter 2015 Financial Results
1 Leading Producer and Marketer of Low - Carbon Renewable Fuels Strong Long - term Demand for Ethanol Pacific Ethanol First Quarter 2015 Financial Results 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 non - 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: First Quarter 2015 Summary
4 4 First Quarter 2015 Summary Recorded net loss of $4.7 million reflecting… Higher ethanol industry inventory levels S easonally lower transportation fuel demand Compressed production margins Efforts to diversify revenue streams, improve plant efficiencies & strengthen balance sheet helped mitigate
Slide 5: Focusing on Long-term Profitability
5 5 Focusing on Long - term Profitability Diversifying Revenue Installing corn oil separation technology Now producing at Madera Expect to begin production in Boardman during Q2 Increasing corn yield over time by investing in mechanical technology such as fine grinding & optimizing enzyme & chemical
Slide 6: Recent Industry Dynamics
6 6 Recent Industry Dynamics Growing transportation fuel demand Improving production margins Source: CME 1.00 1.50 2.00 2.50 3.00 3.50 4.00 RBOB Gasoline and Ethanol Prices (Nearby Futures) Ethanol Futures RBOB Futures
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 Destinat
Slide 8: Growing Demand: Ethanol & Co-Products
8 Growing Demand: Ethanol & Co - Products Providing ongoing economic value Ethanol remains cheapest form of octane Provides consumers with important choice at the pump Ethanol in Demand in Export Markets Year - to - date exports through March totaled 234 million gallons Favorable co - product values
Slide 9: Financial Overview: Consolidated Statements of Operations
9 9 Q1’15 Q1’14 Net sales $ 206,176 $ 254,543 Gross profit (loss) (987) 38,545 SG&A 4,905 3,670 Operating income (loss) (5,892) 34,875 Fair value adjustments (173) (35,844) Interest expense, net (1,015) (4,351) Other expense, net (129) (227) Provision (benefit) for income taxes (2,700) 3,270 Consoli
Slide 10: Balance Sheet Highlights
10 10 At: March 31, 2015 December 31, 2014 Cash & cash equivalents $ 42,274 $ 62,084 Current assets $110,565 $139,551 Total assets $ 275,225 $ 299,502 Current liabilities $ 22,839 $ 25,447 Total liabilities $ 61,328 $ 81,520 Stockholders’ equity $213,897 $217,982 Total liabilities & stockholders’ eq
Slide 11: Growth Opportunities
11 11 Close Aventine Renewable Energy merger (expected Q2’2015) Improve efficiencies, lower the carbon intensity of ethanol produced, create new revenue streams & further advanced biofuels initiatives Growth Opportunities Integrate production & marketing supply chains
Slide 12: Appendix
12 Appendix Thank You
Slide 13: Use of Non-GAAP Measures
13 13 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 (Loss) as unaudited earnings (loss ) before fair value adjustmen
Slide 14: Non-GAAP Reconciliations
14 14 * Adjusted for non - controlling interests Non - GAAP Reconciliations Q1’15 Q1’14 Net Income (Loss) attributed to Pacific Ethanol $ (4,380) $ (10,826) Adjustments: Interest expense* 921 4,044 Provision (benefit) for income taxes* (2,700) 3,270 Fair value adjustments & warrant inducements 173 3
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