SOURCE: Aemetis, Inc.

Aemetis, Inc.

March 12, 2015 16:00 ET

Aemetis Reports Fourth Quarter and Record Year-End 2014 Results

Annual Revenues Grow 17% and EBITDA of $30 Million

CUPERTINO, CA--(Marketwired - Mar 12, 2015) - Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the fourth quarter and twelve months ended December 31, 2014.

Financial Highlights for 2014

  • Record revenues of $208 million in 2014, up from $178 million in 2013
  • Record adjusted EBITDA of $30 million in 2014, up from $10 million in 2013
  • Gross profit of $37 million in 2014, up from $18 million in 2013
  • Operating income of $24.1 million, up from $2.5 million in 2013
  • Net income of $7.1 million or $0.35 per share
  • Term debt net cash payments of $29.6 million
  • 34% reduction in interest and amortization expense compared to 2013
  • $18.5 million of EB-5 funding approved or released to the company from escrow

"In 2014, our financial and operational performance was very strong, setting new records for revenue, adjusted EBITDA and gross profit," said Eric McAfee, Chairman and Chief Executive Officer of Aemetis. "During this past year, Aemetis also achieved several additional milestones, including a NASDAQ listing in June, a $3 million grant from the State of California in July for grain sorghum feedstock development, and the October announcement of plans to construct and operate a liquid CO2 unit at our Keyes ethanol plant. This year, we intend to continue to build on our strong momentum from 2014 as we increase production at our biodiesel and glycerin biorefinery in India, as well as we seek to expand our business into rapidly growing markets with new technologies and products," added McAfee.

Today, Aemetis will host an earnings review and business update call at 1:15 pm Pacific (PT). For details on the call, visit: http://www.aemetis.com/investors/conference-call/

Financial Results for the Year Ended December 31, 2014

Revenues during 2014 grew to a record $208 million, a 17% year-over-year growth from revenues during 2013 of $178 million. For the year ended December 31, 2014, a record 60.2 million gallons of ethanol and 408,000 tons of wet distiller's grains (WDG) were produced at our Keyes plant and sold. For the year ended December 31, 2014, Keyes ethanol plant operations averaged 109% of nameplate capacity compared to 103% for the nine months of operations during 2013. In addition, our India subsidiary produced 9,000 metric tons of biodiesel and 2,200 metric tons of refined glycerin.

Gross profit during 2014 of $37 million was up from gross profit of $18 million during 2013, primarily due to strong production margins in the first two quarters of 2014. Operating income of $24.1 million in 2014 surpassed operating income of $2.5 million in 2013 by $21.6 million.

Selling, general and administrative expenses decreased from $15.3 million during the year ended December 31, 2013 to $12.6 million during the same period of 2014 primarily due to higher 2013 US legal settlement payments and lower 2014 India subsidiary operating expense, which further contributed to overall profitability.

Interest expense during the year ended December 31, 2014 of $17.4 million decreased from interest expense of $28 million during the same period of 2013, primarily due to positive overall 2014 financial performance generating positive cash flow and resulting debt principal reductions made during 2014.

Net income during 2014 of $7.1 million, or $0.35 per diluted share, exceeded the net loss of $24.4 million or $1.28 loss per diluted share during 2013. Adjusted EBITDA for the twelve months ended December 31, 2014 was $30 million, compared to adjusted EBITDA of $10 million for the same period in 2013.

Financial Results for the Three Months Ended December 31, 2014

Revenues of $41.5 million in the fourth quarter of 2014 declined 23% from $54.1 million in the 2013 fourth quarter, primarily due to a decline in ethanol sales price per gallon, as well as lower WDG sales price per ton. During the fourth quarter of 2014, gross profits declined to $2.5 million from $11.3 million during the stronger 2013 fourth quarter. Increased rail transportation costs during the fourth quarter contributed to these results.

During the fourth quarter of 2014, selling, general and administrative ("SG&A") expenses at $3.3 million remained at similar levels to the $3.2 million in SG&A expenses during the fourth quarter of 2013. Interest and amortization expense declined 45% to $3 million in the fourth quarter of 2014, compared to $5.4 million in the fourth quarter of 2013 due to debt payments from favorable financial performance in the first three quarters of 2014.

The operating loss for the fourth quarter of 2014 of $1 million compares to $8.0 million of operating income during the same period of 2013. The net loss of $3.7 million during the fourth quarter of 2014 compares to $3.3 million in net income for the fourth quarter of 2013. Adjusted EBITDA during the fourth quarter of 2014 of $0.6 million was lower than $9.9 million of adjusted EBITDA for the same period in 2013.

"Improved performance during 2014 reflects strong gross profits from a favorable margin environment combined with reductions in both selling, general and administrative expenses as well as interest expense," said Todd Waltz, Chief Financial Officer of Aemetis. "Our ability to generate strong EBITDA during the year allowed us to reduce our debt obligations resulting in lower interest cost and increased equity for shareholders. We have ongoing interest expense reductions through refinance activities currently underway, including $18.5 million in cash approved or released from escrow to the company from the EB-5 program, that we believe will further lower the interest costs of the company," added Waltz.

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, our refinancing activities, increasing production at our biodiesel and glycerin biorefinery in India, expanding our business into rapidly growing markets with new technologies and products, our plans to construct and operate a liquid CO2 unity at our Keyes ethanol plant 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, 2014, 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 an advanced renewable fuels and biochemical 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 per year ethanol production facility in Keyes, California. Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel 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 a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.

   
   
AEMETIS, INC.  
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS  
(unaudited, in thousands except per share data)  
   
  Three months ended     Year ended  
  December 31     December 31  
  2014     2013     2014     2013  
Revenues $ 41,475     $ 54,053     $ 207,683     $ 177,514  
Cost of goods sold   39,023       42,793       170,539       159,220  
Gross profit   2,452       11,260       37,144       18,294  
                               
Research and development expenses   117       71       459       539  
Selling, general and administrative expenses   3,332       3,197       12,595       15,275  
Operating income/(loss)   (997 )     7,992       24,090       2,480  
                               
Interest rate expense   (2,315 )     (3,291 )     (10,052 )     (11,808 )
Amortization expense   (677 )     (2,103 )     (6,038 )     (12,467 )
Loss on debt extinguishment   -       -       (1,346 )     (3,709 )
Other income/(expense)   249       660       485       1,073  
Income/(loss) before income taxes   (3,740 )     3,258       7,139       (24,431 )
                               
Income tax expense   -       -       (6 )     (6 )
                               
Net income/(loss) $ (3,740 )   $ 3,258     $ 7,133     $ (24,437 )
                               
Net Income/(loss) per common share*                              
  Basic $ (0.18 )   $ 0.16     $ 0.35     $ (1.28 )
  Diluted $ (0.18 )   $ 0.16     $ 0.34     $ (1.28 )
                               
Weighted average shares outstanding*                              
  Basic   20,630       19,806       20,371       19,101  
  Diluted   20,630       20,272       21,047       19,101  
                               
* 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)  
   
    Year ended  
    December 31  
    2014     2013  
Assets                
Current assets:                
  Cash and cash equivalents   $ 332     $ 4,926  
  Accounts receivable     1,262       2,764  
  Inventories     4,491       4,098  
  Prepaid and other expenses     1,848       919  
Total current assets     7,933       12,707  
                 
  Property, plant and equipment, net     75,810       78,928  
  Goodwill, intangibles and other assets     5,433       5,507  
Total assets   $ 89,176     $ 97,142  
                 
Liabilities and stockholders' deficit                
Current liabilities:                
  Accounts payable   $ 8,339     $ 9,366  
    Current portion of long term debt, notes and working capital     12,746       17,966  
    Mandatorily redeemable Series B convertible preferred stock     2,641       2,540  
  Other current liabilities     3,590       6,245  
Total current liabilities     27,316       36,117  
                 
Total long term liabilities     64,832       73,792  
                 
Stockholders' deficit:                
  Series B convertible preferred stock     2       2  
  Common stock     21       20  
  Additional paid-in capital     87,080       84,373  
  Accumulated deficit     (87,113 )     (94,246 )
  Accumulated other comprehensive loss     (2,962 )     (2,916 )
Total stockholders' deficit   $ (2,972 )   $ (12,767 )
                 
Total liabilities and stockholders' deficit   $ 89,176     $ 97,142  
                 
                 
                 
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)  
(unaudited, in thousands)  
   
    Three months ended   Year ended  
    December 31   December 31  
    2014     2013   2014   2013  
Net income/(loss)   $ (3,740 )   $ 3,258   $ 7,133   $ (24,437 )
Adjustments:                            
  Interest rate expense     2,315       3,291     10,052     11,808  
  Amortization expense     677       2,103     6,038     12,467  
  Loss on debt extinguishment     -       -     1,346     3,709  
  Income tax expense     -       -     6     6  
  Intangibles and other amortization expense     31       90     126     254  
  Depreciation expense     1,195       1,165     4,681     4,636  
  Share-based compensation     177       175     624     1,760  
Total adjustments     4,395       6,824     22,873     34,640  
Adjusted EBITDA   $ 655     $ 10,082   $ 30,006   $ 10,203  
                             
                             
                             
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
 
    Three months ended   Year ended
    December 31   December 31
    2014   2013   2014   2013
Ethanol                        
Gallons Sold (in 000s)     14,463     15,927     60,197     42,390
Average Sales Price/Gallon   $ 2.19   $ 2.46   $ 2.54   $ 2.62
WDG                        
Tons Sold (in 000s)     98     110     408     301
Average Sales Price/Ton   $ 67   $ 103   $ 92   $ 100
Biodiesel                        
Metric tons sold     1,437     794     9,036     19,354
Average Sales Price/Metric ton   $ 892   $ 968   $ 985   $ 929
Refined Glycerin                        
Metric tons sold     655     1,448     2,236     4,913
Average Sales Price/Metric ton   $ 778   $ 973   $ 933   $ 940

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