SOURCE: Aemetis, Inc.

Aemetis, Inc.

November 12, 2014 16:00 ET

Aemetis, Inc. Reports Third Quarter 2014 Results

CUPERTINO, CA--(Marketwired - Nov 12, 2014) - Aemetis, Inc. (NASDAQ: AMTX)

  • Revenues of $48.3 million
  • Payments of outstanding debt of $8.6 million
  • Adjusted EBITDA of $6.1 million
  • Operating income of $4.6 million
  • Net income (after interest) of $0.5 million or $0.02 per share
  • Cash and cash equivalents of $5.5 million
  • EB-5 funds in escrow of $21 million as of this report
  • Senior debt paid down to $54 million

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

"Aemetis continued to generate strong positive cash flow and reduce debt during the third quarter of 2014," stated Eric McAfee, Chairman and Chief Executive Officer. "Additionally, we have received $21 million of low-interest (3%) EB-5 funding into escrow, primarily during the third quarter of 2014, which is expected to be applied to debt reduction over the next year."

Financial Results for the Three Months Ended September 30, 2014

For the third quarter, revenue was $48.3 million, a 15% decrease over the same quarter in 2013. The $2.0 million decrease in revenue between the three months ended September 30, 2014 and 2013 reflects lower ethanol pricing in the 2014 period.

Gross profit during the third quarter 2014 was $7.7 million, a 154% increase over the third quarter 2013 gross profit of $3.0 million. The $4.7 million increase in gross profit was primarily due to corn prices falling faster than ethanol prices. Corn prices decreased by 49% while ethanol prices decreased by 16% during the three months ended September 30, 2014 compared to the same period in the prior year.

Adjusted EBITDA for the three months ended September 30, 2014 was $6.1 million compared to $1.3 million for the same period in 2013. Operating income for the third quarter of 2014 was $4.6 million, compared to an operating loss of $1.0 million for the same period in 2013.

Interest rate expense of $2.3 million for the third quarter of 2014 was a reduction of 22% compared to $2.9 million for the third quarter of 2013, reflecting a reduction in the principal and interest on our outstanding debt. Fee amortization expense of $0.7 million in the third quarter of 2014 was 63% less than the third quarter of 2013 charge of $2.0 million.

Net Income for the third quarter of 2014 was $464,000 or $0.02 per share compared to a loss of $8.3 million or $0.43 loss per share for the third quarter of 2013.

Cash flow resulted in Cash and Cash Equivalents of $5.5 million as of September 30, 2014 and allowed for principal and interest payments on outstanding debt of approximately $8.6 million during the third quarter of 2014.

Financial Results for the Nine Months Ended September 30, 2014

Revenue for the nine months ended September 30, 2014 was $166.2 million, compared to $123.5 million during the same period of 2013. The increase in revenue reflects both a strong margin environment in the first half of 2014 and the idling of the Keyes ethanol plant for approximately three months from late January through late April 2013. 

Gross profit was a record $34.7 million compared to $7.0 million during the same period in 2013.

Net income was $10.9 million or $0.52 per diluted share compared to a net loss of $27.7 million or $1.47 loss per diluted share during the same period in 2013.

Adjusted EBITDA for the nine months ended September 30, 2014 was a record $29.4 million compared to $0.1 million for the same period in 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, loss on extinguishment, 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 funds to be received under our EB-5 loan program and further reductions in our outstanding debt. 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 or to be filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2013, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 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 a renewable fuels and biochemicals company focused on the production of advanced fuels and chemicals through the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by conversion of first-generation ethanol and biodiesel plants into advanced biorefineries. 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 nine granted patents on its Z-microbe and related technology for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.

(Tables follow)

   
AEMETIS, INC.  
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS  
(unaudited, in thousands except per share data)  
   
    Three months ended     Nine months ended  
    September 30     September 30  
(in thousands, except per share)   2014     2013     2014     2013  
Revenues   $ 48,348     $ 56,688     $ 166,208     $ 123,461  
Cost of goods sold     40,633       53,652       131,516       116,427  
Gross profit     7,715       3,036       34,692       7,034  
                                 
Research and development expenses     101       115       342       468  
Selling, general and administrative expenses     2,972       3,879       9,263       12,078  
Operating income/(loss)     4,642       (958 )     25,087       (5,512 )
                                 
Interest rate expense     (2,287 )     (2,933 )     (7,737 )     (8,516 )
Amortization expense     (741 )     (2,020 )     (5,361 )     (10,366 )
Loss on debt extinguishment     (1,231 )     (2,521 )     (1,346 )     (3,709 )
Other income/(expense)     81       143       236       414  
Income/(loss) before income taxes     464       (8,289 )     10,879       (27,689 )
                                 
Income tax expense     -       -       (6 )     (6 )
Net income/(loss)   $ 464     $ (8,289 )   $ 10,873     $ (27,695 )
                                 
Net Income/(loss) per common share*                                
  Basic   $ 0.02     $ (0.43 )   $ 0.54     $ (1.47 )
  Diluted     0.02       (0.43 )     0.52       (1.47 )
                                 
Weighted average shares outstanding*                                
  Basic     20,555       19,390       20,284       18,863  
  Diluted     21,476       19,390       20,946       18,863  
                                 
* 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)  
   
    September 30,
2014
  December 31,
2013
 
Assets              
Current assets:              
  Cash and cash equivalents   $ 5,494   $ 4,926  
  Accounts receivable     438     2,764  
  Inventories     5,178     4,098  
  Prepaid expenses and Other current assets     1,485     919  
Total current assets     12,595     12,707  
               
Property, plant and equipment, Net     77,048     78,928  
Goodwill, Intangibles and Other assets     5,462     5,507  
Total assets   $ 95,105   $ 97,142  
               
Liabilities and stockholders' equity/(deficit)              
Current liabilities:              
  Accounts payable     9,018     9,366  
  Current portion of long term debt, notes and working capital     16,446     17,966  
  Mandatorily redeemable Series B convertible preferred stock     2,616     2,540  
  Other current liabilities     4,909     6,245  
Total current liabilities     32,989     36,117  
               
Total long term liabilities     61,469     73,792  
               
Total stockholders' equity (deficit)     647     (12,767 )
               
Total liabilities and stockholders' equity/(deficit)   $ 95,105   $ 97,142  
               
* The Common Stock and Additional paid-in capital for all periods presented reflect the one-for-ten reverse split, which took effect May 15, 2014.  
   
   
   
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)  
(unaudited, in thousands)  
   
    Three months ended     Nine months ended  
    September 30     September 30  
    2014   2013     2014   2013  
Net income/(loss)   $ 464   $ (8,289 )   $ 10,873   $ (27,695 )
Adjustments:                            
  Interest expense     4,259     7,474       14,444     22,591  
  Income tax expense     -     -       6     6  
  Intangibles and other amortization expense     31     20       95     164  
  Depreciation expense     1,184     1,153       3,486     3,471  
  Share-based-compensation     157     905       447     1,585  
Total adjustments     5,631     9,552       18,478     27,817  
Adjusted EBITDA   $ 6,095   $ 1,263     $ 29,351   $ 122  
                             
                             
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
 
    Three months ended   Nine months ended
    September 30   September 30
    2014   2013   2014   2013
Ethanol                        
Gallons Sold (in millions)     14.7     14.4     45.7     26.5
Average Sales Price/Gallon   $ 2.29   $ 2.65   $ 2.65   $ 2.72
WDG                        
Tons Sold (in thousands)     96.0     100.3     310.4     190.5
Average Sales Price/Ton   $ 85.15   $ 99.21   $ 99.76   $ 99.23
Corn/Milo                        
Tons Ground (in thousands)     145     140     454     261
Average Purchase Price/Ton   $ 185   $ 276   $ 208   $ 290
                         
Biodiesel                        
Metric tons sold     3,842     1,751     7,599     18,560
Average Sales Price/Metric ton   $ 992   $ 906   $ 1003   $ 848
Refined Glycerin                        
Metric tons sold     651     1,364     1,581     3,465
Average Sales Price/Metric ton   $ 932   $ 890   $ 997   $ 912
                         
                         

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