AVG Baseline operating margin over cost (Iowa Plant)
20 cent West coast premium per 10K, above normal premium
50 cent RIN avg for quarter (per OPIS)
15 cent positive variance for 2 plants extracting oil + beet sugar enhancement
total average daily margin for quarter
*37 000 000 gallons
62 382 000 dollars
56 787 000 profit to PEIX
/ 18 000 000 shares at 3/31/2014 per SEC filings,
15 cent variant item is estimate, actual number indeterminate.
There is no profit or loss contribution allowance for KINERGY division.
There will be a non cash item for the FV adjustment of warrants, the analyst's and my estimate are
not accounting for that item. It has no effect on cash, book value, nor shareholder equity.
In fact it may be a good thing because it will knock down reported earnings and limit tax liability.
PIX only has about 43MM in NOL carry overs, so while it reduces tax exposure, the item only reflects that the fair value of the warrants has increased dramatically, in accordance to the massive gain in share price.
It's the irony of GAAP accounting that earnings should be reduced to reflect that the company is doing really well and generating metric a$$loads of cash.
Do You have an estimate of the amount of production, that is sold at fixed prices on long term contracts? And what these prices are?
I guess the above is based on off-the-shelf prices during the quarter?
Are you certain that the FV adjustment of warrants is recognized by the IRS? I'm not even certain that the IRS allows a deduction once the warrants are exercised? It May be that FV adjustment of warrants only effects GAAP reporting and nothing else.
TITLE 26, Subtitle A, CHAPTER 1, Subchapter O, PART III, Sec. 1032.
(a) Nonrecognition of gain or loss
No gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock (including treasury stock) of such corporation. No gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option, or with respect to a securities futures contract (as defined in section 1234B), to buy or sell its stock (including treasury stock). (b) Basis
For basis of property acquired by a corporation in certain
exchanges for its stock, see section 362.