The company, once backed by none other than Bill Gates, posted a loss of $23.9 million and a per share number at -$0.43 EPS. It now anticipates reporting net sales of approximately $86.7 million for the three months ended March 31, down from $161.5 million for the same period in 2008. The decline was in both volumes sold (some 24% in volume) of ethanol and in lower average selling prices (decreased 28% to $1.65 per gallon).
Its gross loss will be approximately $11.1 million, down from a gross profit of $15.7 million in Q1-2008; and it expects gross margin to be negative at -12.8%, compared with gross profit margin of 9.7% a year ago.
You know how little we think of ethanol. The statement from the company also sums this up better than we could ever say: If the company cannot restructure its debt and obtain sufficient liquidity in the very near-term, the company will need to seek protection under the U.S. Bankruptcy Code.
PEIX shares are down 8% at $0.66 and the 52-week trading range is $0.20 to $6.86. If a bankruptcy comes into play here, that old $20+ handle two years ago will be as relevant as gold to a dead man. There is no reason to think that shareholders will have anything left if and when it files for bankruptcy protection.
JON C. OGG
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