The decrease in net sales resulted primarily from a decrease in both the volume of ethanol sold by the company and lower average sales prices. The volume of ethanol sold by the company for the three months ended March 31, 2009 decreased by around 24% as compared to the same period in 2008. The Company’s average sales price of ethanol decreased 28% to $1.65 per gallon for the three months ended March 31, 2009 from an average sales price of $2.30 per gallon for the same period in 2008.

The company anticipates reporting a gross loss of around $11.1 million for the three months ended March 31, 2009 as compared to gross profit of $15.7 million for the same period in 2008. The company anticipates reporting that its gross margin was around negative 12.8% for the three months ended March 31, 2009 as compared to a gross profit margin of 9.7% for the same period in 2008. The decline in the Company’s gross margins was primarily due to increased costs to operate its four ethanol production facilities in relation to their reduced production levels and lower average sales prices.

The company anticipates reporting loss available to common stockholders of around $24.7 million for the three months ended March 31, 2009, net of preferred stock dividends, as compared to a loss available to common stockholders of $36.3 million for the same period in 2008.

The company had 57.0 million weighted-average basic and diluted shares outstanding for the three months ended March 31, 2009.