CUPERTINO, CA / ACCESSWIRE / August 9, 2018 / Aemetis, Inc. AMTX, an advanced renewable fuels and biochemicals company, today announced its financial results for the three and six months ended June 30, 2018.
During the second quarter of 2018, revenues increased $4.3 million and gross margins increased by $1.1 million compared to the second quarter of 2017. Similarly, during the first half of 2018, revenues increased $15.7 million and gross margins increased by $3.5 million compared to the first half of 2017.
"Record gasoline demand in the second quarter helped drive expanded demand and increased pricing for ethanol," stated Eric McAfee, Chairman and CEO of Aemetis. "In addition to a 5% increase in the volume of ethanol produced by our California plant in Q2 2018 compared to the same quarter a year ago, the price of wet distillers grains increased by 34% and the price of glycerin increased by 28% compared to Q2 2017."
"Aemetis also achieved major milestones in the construction and operation of a pretreatment unit at our India plant to produce high value distilled biodiesel from lower cost feedstock. We are now completing utility upgrades at our India plant to fully utilize plant capacity to meet expanding customer demand from India as well as foreign customers."
"The Riverbank cellulosic ethanol project achieved significant progress during Q2 2018, including engineering, environmental permitting and EPC project milestones. The value of California Low Carbon Fuel Standard credits rose steadily from $110 in late February to $184 per credit on June 30, 2018, significantly increasing the value of the low carbon advanced ethanol that is planned to be produced by the Riverbank plant from orchard and other agricultural waste."
Today, Aemetis will host an earnings review call at 11:00 am Pacific (PT). For details on the call, visit: http://www.aemetis.com/investors/conference-call/.
Financial Results for the Three Months Ended June 30, 2018
Revenues were $45.0 million for the second quarter of 2018 compared to $40.8 million for the second quarter of 2017, driven by an increase in ethanol sales volumes from 15.6 million gallons to 16.4 million gallons and by stronger wet distillers grain and glycerin demand and pricing. The gross margin for the second quarter of 2018 increased to $2.8 million, compared to a gross margin of $1.7 million during the second quarter of 2017.
Selling, general and administrative expenses were $3.6 million in the second quarter of 2018, compared to $3.3 million in the second quarter of 2017.
Operating loss was $0.9 million for the second quarter of 2018, a reduction from the operating loss of $1.7 million for the second quarter of 2017.
Interest expense during the second quarter of 2018 was $5.4 million, compared to $4.3 million during the second quarter of 2017.
Net loss was $6.2 million for the second quarter of 2018, compared to a net loss of $6.0 million for the second quarter of 2017 due to higher interest expense.
Cash at the end of the second quarter of 2018 increased to $1.1 million from $0.4 million at the end of 2017.
Financial Results for the Six Months Ended June 30, 2018
Revenues were $88.0 million for the first half of 2018, an increase of $15.7 million compared to $72.3 million for the first half of 2017. This strong increase in revenues was driven by increases in ethanol sales volumes from 29.1 million gallons to 32.4 million gallons and by higher wet distillers grain and glycerin demand and pricing. Gross profit for the first half of 2018 was $4.6 million, a significant increase from $1.1 million during the first half of 2017.
Selling, general and administrative expenses were $7.4 million during the first half of 2018, compared to $6.6 million during the first half of 2017.
Operating loss was reduced to $2.9 million for the first half of 2018, compared to an operating loss of $5.6 million for the first half of 2017.
Interest expense was $14.4 million during the first half of 2018, compared to interest expense of $8.9 million during the first half of 2017.
Net loss was $17.3 million for the first half of 2018, compared to a net loss of $14.5 million during the first half of 2017 due to higher interest expense.
About Aemetis
Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in the California Central Valley near Modesto. 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 India and Europe. Aemetis 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.
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 between companies.
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, expectations for growth in India and development of our cellulosic ethanol business in North America. Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "showing signs," "targets," "view," "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, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, 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, 2017, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 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.
Investor Relations/
Media Contact:
Todd Waltz
(408) 213-0940
investors@aemetis.com
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com
AEMETIS, INC
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
|
Three months ended
|
Six months ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Revenues
|
$ | 45,028 | $ | 40,764 | $ | 88,046 | $ | 72,338 | ||||||||
|
Cost of goods sold
|
42,260 | 39,059 | 83,412 | 71,220 | ||||||||||||
|
Gross profit
|
2,768 | 1,705 | 4,634 | 1,118 | ||||||||||||
|
Research and development expense
|
55 | 110 | 117 | 196 | ||||||||||||
|
Selling, general and admin. expense
|
3,589 | 3,262 | 7,396 | 6,557 | ||||||||||||
|
Operating loss
|
(876 | ) | (1,667 | ) | (2,879 | ) | (5,635 | ) | ||||||||
|
Interest expense
|
||||||||||||||||
|
Interest rate expense
|
4,432 | 3,164 | 8,703 | 6,006 | ||||||||||||
|
Debt related fees and amort. expense
|
919 | 1,164 | 5,676 | 2,847 | ||||||||||||
|
Other (income) expense
|
(5 | ) | (8 | ) | 63 | 20 | ||||||||||
|
Loss before income taxes
|
(6,222 | ) | (5,987 | ) | (17,321 | ) | (14,508 | ) | ||||||||
|
Income tax expense
|
-- | -- | 6 | 6 | ||||||||||||
|
Net loss
|
$ | (6,222 | ) | $ | (5,987 | ) | $ | (17,327 | ) | $ | (14,514 | ) | ||||
|
Less: Net loss attributable to non-controlling interest
|
(857 | ) | -- | (1,594 | ) | -- | ||||||||||
|
Net loss attributable to Aemetis, Inc.
|
(5,365 | ) | (5,987 | ) | (15,733 | ) | (14,514 | ) | ||||||||
|
Net loss per common share
|
||||||||||||||||
|
Basic
|
$ | (0.27 | ) | $ | (0.30 | ) | $ | (0.78 | ) | $ | (0.74 | ) | ||||
|
Diluted
|
$ | (0.27 | ) | $ | (0.30 | ) | $ | (0.78 | ) | $ | (0.74 | ) | ||||
|
Weighted average shares outstanding
|
||||||||||||||||
|
Basic
|
20,223 | 19,669 | 20,203 | 19,737 | ||||||||||||
|
Diluted
|
20,223 | 19,669 | 20,203 | 19,737 | ||||||||||||
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
|
June 30, 2018
(Unaudited)
|
December 31,
2017
|
|||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 1,069 | $ | 428 | ||||
|
Accounts receivable
|
1,601 | 2,219 | ||||||
|
Inventories
|
6,697 | 5,737 | ||||||
|
Prepaid and other current assets
|
1,921 | 3,078 | ||||||
|
Total current assets
|
11,288 | 11,462 | ||||||
|
Property, plant and equipment, net
|
77,703 | 78,837 | ||||||
|
Other assets
|
4,137 | 4,032 | ||||||
|
Total assets
|
$ | 93,128 | $ | 94,331 | ||||
|
Liabilities and stockholders' deficit
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 12,521 | $ | 10,457 | ||||
|
Current portion of long term debt
|
3,234 | 2,039 | ||||||
|
Short term borrowings
|
16,184 | 13,586 | ||||||
|
Mandatorily redeemable Series B stock
|
2,996 | 2,946 | ||||||
|
Other current liabilities
|
6,324 | 6,988 | ||||||
|
Total current liabilities
|
41,259 | 36,016 | ||||||
|
Total long term liabilities
|
148,933 | 138,176 | ||||||
|
Total stockholders' deficit:
|
||||||||
|
Series B convertible preferred stock
|
1 | 1 | ||||||
|
Common stock
|
20 | 20 | ||||||
|
Additional paid-in capital
|
85,347 | 84,679 | ||||||
|
Accumulated deficit
|
(175,921 | ) | (160,188 | ) | ||||
|
Accumulated other comprehensive loss
|
(3,448 | ) | (2,904 | ) | ||||
|
Non-controlling interest
|
(3,063 | ) | (1,469 | ) | ||||
|
Total stockholders' deficit
|
(97,064 | ) | (79,861 | ) | ||||
|
Total liabilities and stockholders' deficit
|
$ | 93,128 | $ | 94,331 | ||||
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
|
Three Months Ended
|
Six Months Ended | |||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Net loss attributable to Aemetis, Inc.
|
$ | (5,365 | ) | $ | (5,987 | ) | $ | (15,733 | ) | $ | (14,514 | ) | ||||
|
Adjustments:
|
||||||||||||||||
|
Interest expense
|
4,628 | 4,328 | 13,017 | 8,853 | ||||||||||||
|
Depreciation expense
|
1,149 | 1,152 | 2,299 | 2,298 | ||||||||||||
|
Share-based compensation
|
316 | 195 | 603 | 604 | ||||||||||||
|
Intangibles and other
amortization expense
|
35 | 31 | 70 | 64 | ||||||||||||
|
Income tax expense
|
-- | -- | 6 | 6 | ||||||||||||
|
Total adjustments
|
6,128 | 5,706 | 15,995 | 11,825 | ||||||||||||
|
Adjusted EBITDA
|
$ | 763 | $ | (281 | ) | $ | 262 | $ | (2,689 | ) | ||||||
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
|
Ethanol
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
Gallons sold (in millions)
|
16.4 | 15.6 | 32.4 | 29.1 | ||||||||||||
|
Average sales price/gallon
|
$ | 1.84 | $ | 1.80 | $ | 1.80 | $ | 1.78 | ||||||||
|
WDG
|
||||||||||||||||
|
Tons sold (in thousands)
|
105.4 | 107.0 | 208.0 | 195.5 | ||||||||||||
|
Average sales price/ton
|
$ | 81 | $ | 60 | $ | 79 | $ | 62 | ||||||||
|
Delivered cost of corn
|
||||||||||||||||
|
Bushels ground (in millions)
|
5.7 | 5.5 | 11.3 | 10.3 | ||||||||||||
|
Average delivered cost / bushel
|
$ | 5.02 | $ | 4.78 | $ | 4.98 | $ | 4.85 | ||||||||
|
Biodiesel
|
||||||||||||||||
|
Metric tons sold (in thousands)
|
4.3 | 4.7 | 9.2 | 5.5 | ||||||||||||
|
Average sales price/metric ton
|
$ | 897 | $ | 876 | $ | 910 | $ | 892 | ||||||||
|
Refined glycerin
|
||||||||||||||||
|
Metric tons sold (in thousands)
|
1.5 | 1.5 | 2.7 | 2.7 | ||||||||||||
|
Average sales price/metric ton
|
$ | 1,027 | $ | 800 | $ | 1,068 | $ | 748 | ||||||||
SOURCE: Aetemis, Inc.
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