SOURCE: AEMETIS INC

AEMETIS INC

August 07, 2014 08:45 ET

Aemetis, Inc. Reports Second Quarter 2014 Results

CUPERTINO, CA--(Marketwired - Aug 7, 2014) - Aemetis, Inc. (NASDAQ: AMTX)

  • Paid down $13.6 million in debt (principal and interest)
  • Quarterly adjusted EBITDA of $9.1 million
  • Quarterly operating income of $7.8 million
  • Net income of $2.7 million or $0.13 per share
  • Revenues of $57.2 million
  • Cash and cash equivalents of $4.8 million at June 30, 2014

Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the three-and-six months ended June 30, 2014.

"We are pleased with the Company's continued positive financial performance and strong second quarter," said Eric McAfee, Chairman and CEO of Aemetis, Inc. "Aemetis achieved significant milestones during Q2, including a NASDAQ listing, completion of the EPA process for importation of our India biodiesel into the US, and our first distilled biodiesel shipment to Europe from our India plant under the newly awarded ISCC certification," added McAfee.

Financial Results for the Three Months Ended June 30, 2014

For the second quarter, revenue was $57.2 million, a 21% increase over the same quarter in 2013. Gross profit was $11.4 million, a 203% increase over the second quarter of 2013 gross profit of $3.8 million. The increase in revenue between the three months ended June 30, 2014 and 2013 reflects the period from April 1, 2013 to April 23, 2013 when the Keyes plant was idle, compared to a full quarter of operation for the quarter ended June 30, 2014.

Operating income for the second quarter of 2014 was $7.8 million, compared to an operating loss of $0.4 million for the same period in 2013.

Interest rate expense of $2.5 million was a reduction of 13% compared to $2.9 million for the second quarter of 2013, reflecting a reduction in the principal outstanding. Fee amortization expense of $2.5 million was 59% less in the second quarter of 2014 than the second quarter of 2013 charge of $6.1 million.

Net Income for the second quarter of 2014 was $2.7 million or $0.13 per share compared to a loss of $9.6 million for the second quarter of 2013.

Strong cash flow resulted in Cash and Cash Equivalents of $4.8 million as of June 30, 2014 and allowed for principal and interest payments on term debt of approximately $13.6 million during the second quarter of 2014.

Financial Results for the Six Months Ended June 30, 2014

Revenue for the six months ended June 30, 2014 was $117.9 million, compared to $66.8 million during the same period of 2013. The increase in revenue reflects a strong margin environment in the first half of 2014, and is also partially attributable to the idling of the Keyes ethanol plant for approximately three months from late January through late April 2013. 

Gross profit was a record $27.0 million compared to $4.0 million during the same period of 2013.

Net income was $10.4 million or $0.49 per diluted share compared to a net loss of $19.4 million or $1.04 loss per diluted share during the same period of 2013.

Adjusted EBITDA for the six months ended June 30, 2014 was a record $23.3 million compared to a negative $1.1 million for the same period of 2013.

Non-GAAP Financial Information

We have provided non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying supplemental data. Adjusted EBITDA is defined as net income/(loss) plus (to the extent deducted in calculating such net income) interest expense, income tax expense, intangible and other amortization expense, depreciation expense, and share-based compensation expense.

Adjusted EBITDA is not calculated in accordance with GAAP and should not be considered as an alternative to net income/(loss), operating income or any other performance measures derived in accordance with GAAP or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA is presented solely as a supplemental disclosure because management believes that it is a useful performance measure that is widely used within the industry in which we operate. In addition, management uses Adjusted EBITDA for reviewing financial results and for budgeting and planning purposes. EBITDA measures are not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison.

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, statements regarding our possible importation of biofuels from our India plant into the U.S. and continued shipments of biodiesel into Europe. Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties. Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, counter-party risks, risks associated with changes to federal policy or regulation, risks associated with the conversion of the Keyes plant to the use of sorghum for ethanol production; and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2013, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced fuels and renewable chemicals company founded in 2006. Aemetis owns and operates a 60 million gallon capacity ethanol and 420,000 ton animal feed plant in California that is the first US facility approved by the EPA to produce D5 Advanced Biofuels using the sorghum/biogas/CHP pathway. Aemetis also built, owns, and operates a 50 million gallon capacity renewable chemicals and advanced fuels production facility on the East Coast of India producing high quality, distilled biodiesel and refined glycerin for customers in Europe and Asia. Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds five granted patents on its Z-microbe and related technology for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit aemetis.com.

(Tables follow)

   
   
AEMETIS, INC.  
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS  
(unaudited, in thousands except per share data)  
   
    Three months ended     Six months ended  
    June 30     June 30  
(in thousands, except per share)   2014     2013     2014     2013  
Revenues   $ 57,195     $ 47,353     $ 117,860     $ 66,773  
Cost of goods sold     45,842       43,602       90,883       62,775  
Gross profit     11,353       3,751       26,977       3,998  
                                 
Research and development expenses     141       124       241       353  
Selling, general and administrative expenses     3,449       3,984       6,291       8,199  
Operating income/(loss)     7,763       (357 )     20,445       (4,554 )
                                 
Interest rate expense     (2,530 )     (2,913 )     (5,450 )     (5,583 )
Amortization expense     (2,502 )     (6,072 )     (4,620 )     (8,346 )
Loss on debt extinguishment     -       (231 )     (115 )     (1,188 )
Other income/(expense)     (9 )     (20 )     155       271  
Income/(loss) before income taxes     2,722       (9,593 )     10,415       (19,400 )
                                 
Income tax expense     -       -       (6 )     (6 )
                                 
Net income/(loss)   $ 2,722     $ (9,593 )   $ 10,409     $ (19,406 )
                                 
Net Income/(loss) per common share*                                
  Basic   $ 0.13     $ (0.51 )   $ 0.52     $ (1.04 )
  Diluted   $ 0.13     $ (0.51 )   $ 0.49     $ (1.04 )
                                 
Weighted average shares outstanding*                                
  Basic     20,284       18,964       20,146       18,596  
  Diluted     20,948       18,964       21,299       18,596  
                                 
* The Earnings per share and Weighted average shares outstanding for all periods presented reflect the one-for-ten reverse split, which took effect May 15, 2014.  
   
   
   
   
AEMETIS, INC.  
CONSOLIDATED CONDENSED BALANCE SHEETS  
(unaudited, in thousands)  
   
    June 30, 2014     December 31, 2013  
Assets                
Current assets:                
  Cash and cash equivalents   $ 4,780     $ 4,926  
  Accounts receivable     828       2,764  
  Inventories     5,052       4,098  
  Prepaid expenses and Other current assets     2,111       919  
Total current assets     12,771       12,707  
                 
Property, plant and equipment, Net     77,180       78,928  
Goodwill, Intangibles and Other assets     5,496       5,507  
Total assets   $ 95,447     $ 97,142  
                 
Liabilities and stockholders' deficit                
Current liabilities:                
  Accounts payable   $ 9,242     $ 9,366  
  Current portion of long term debt, notes and working capital     12,146       17,966  
  Mandatorily redeemable Series B convertible preferred stock     2,590       2,540  
  Other current liabilities     6,937       6,245  
Total current liabilities     30,915       36,117  
                 
Total long term liabilities     65,615       73,792  
                 
Total stockholders' deficit     (1,083 )     (12,767 )
                 
Total liabilities and stockholders' deficit   $ 95,447     $ 97,142  
                 
                 
 
 
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
 
    Three months ended   Six months ended
    June 30   June 30
    2014   2013   2014   2013
Net income/(loss)   $2,722   $(9,593)   $10,409   $(19,406)
Adjustments:                
  Interest expense   5,032   9,216   10,185   15,117
  Income tax expense   -   -   6   6
  Intangibles and other amortization expense   32   20   64   144
  Depreciation expense   1,150   1,153   2,302   2,318
  Share-based-compensation   159   387   290   680
Total adjustments   6,373   10,776   12,847   18,265
Adjusted EBITDA   $9,095   $1,183   $23,256   $(1,141)
                 
                 
                 
 
 
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
 
    Three months ended   Six months ended
    June 30   June 30
    2014   2013   2014   2013
Ethanol                
Gallons Sold (in millions)   14.9   9.8   31.0   12.1
Average Sales Price/Gallon   $2.74   $2.88   $2.83   $2.80
WDG                
Tons Sold (in thousands)   101.9   73.9   214.4   90.2
Average Sales Price/Ton   $115   $96   $106   $99
                 
Biodiesel                
Metric tons sold (in thousands)   3.1   10.5   4.1   16.8
Average Sales Price/Metric ton   $921   $855   $933   $847
Refined Glycerin                
Metric tons sold (in thousands)   0.4   1.2   1.0   2.1
Average Sales Price/Metric ton   $964   $917   $1,004   $926

Contact Information