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8-K - CURRENT REPORT - AEMETIS, INC | amtx_8k.htm |
Exhibit 99.1
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com
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Investor Relations & Media Contact:
Satya Chillara
(408) 213-0939
schillara@aemetis.com
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Aemetis, Inc. Reports Second Quarter 2017 Financial
Results
CUPERTINO, Calif. – August 10, 2017 - 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,
2017.
During the second quarter of 2017, revenues increased $7.7 million
or 23% compared to the second quarter of 2016. Ethanol revenues
increased 11% year over year as we shipped 16% more ethanol product
to our customers. During the second quarter of 2017, Aemetis signed
a three year biofuels supply agreement with BP Singapore to supply
biodiesel from our India plant to the US and Europe, using our
patent-pending enzymatic process technology. Our India subsidiary
also received a $6 million contract to supply the India Oil
Marketing Companies, and India bulk fuel customers generated
increases in both revenue and gross margin.
“We have recently achieved significant milestones in our
ethanol and biodiesel operating segments. Accomplishments during
the second quarter include implementation of our strategy to grow
the India biodiesel business through the BP Singapore supply
agreement, sales to bulk fuel customers, newly approved sales to
retail customers and winning supply agreements with the India Oil
Marketing Companies," stated Eric McAfee, Chairman and CEO of
Aemetis. "During the third quarter, we also started production of
cellulosic ethanol from waste orchard wood and nutshells at our
newly constructed integrated demonstration unit at the InEnTec
Technology Center in Richland, Washington. Cellulosic ethanol can
reduce greenhouse gas emissions up to 80% compared to gasoline. In
India, we completed the construction of the first phase of our
commercial pre-treatment unit and began production of biodiesel
using our patent-pending enzymatic technology."
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,
2017
Revenues were $40.8 million for the second quarter of 2017,
compared to $33.1 million for the second quarter of 2016. The
increase in revenue was primarily attributable to increased ethanol
and distillers grains volumes, as well as increased sales to bulk
fuel customers in India. Gross margin for the second quarter of
2017 was $1.7 million, compared to gross margin of $1.9 million
during the second quarter of 2016. Ethanol and distillers grain
price declines contributed to a lower gross margin, offsetting
higher volumes.
Selling, general and administrative expenses were $3.3 million in
the second quarter of 2017, compared to $2.9 million in the second
quarter of 2016. The largest component of the change in selling,
general and administrative expense were tax penalties, returned
sublease space and workmen’s compensation rate increases
related to North America operations and operational support charges
related to the increase in revenue at the India
operations.
Operating loss was $1.7 million for the second quarter of 2017,
compared to an operating loss of $1.1 million for the second
quarter of 2016.
Net loss was $6 million for the second quarter of 2017, compared to
a net loss of $5 million for the second quarter of
2016.
Interest expense during the second quarter of 2017 was $4.3
million, compared to $4.4 million during the second quarter of
2016.
Cash at the end of the second quarter of 2017 was $0.7 million
compared to $1.5 million at the end of 2016.
Financial Results for the Six Months Ended June 30,
2017
Revenues were $72.3 million for the first half of 2017, an increase
of $5.9 million compared to $66.4 million for the first half of
2016. The production of ethanol and wet distiller’s grains at
the Keyes plant during the first half of 2017 increased compared to
the first half of 2016. Gross profit for the first half of 2017 was
$1.1 million, compared to $4.0 million during the first half of
2016. During the first half of 2017, gross profit decreased due to
the higher price of feedstock at the Keyes plant compared to the
same period of 2016, combined with softening in the price of wet
distillers grains.
Selling, general and administrative expenses were $6.6 million
during the first half of 2017, compared to $5.9 million during the
first half of 2016. The increase in selling, general and
administrative expenses was primarily attributable to salaries,
non-cash stock compensation and marketing expense that increases
along with production volume expansion.
Operating loss was $5.6 million for the first half of 2017,
compared to operating loss of $2.1 million for first half of
2016.
Net loss was $14.5 million for the first half of 2017, compared to
a net loss of $10.1 million during the first half of
2016.
Interest expense was $8.9 million during the first half of 2017,
compared to interest expense of $8.5 million during the first half
of 2016.
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, 2016, our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2017 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.
(Tables follow)
AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
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Three months ended
|
Six months ended
|
||
|
June 30,
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June 30,
|
||
|
2017
|
2016
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2017
|
2016
|
Revenues
|
$40,764
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$33,059
|
$72,338
|
$66,385
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Cost
of goods sold
|
39,059
|
31,115
|
71,220
|
62,355
|
Gross
profit
|
1,705
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1,944
|
1,118
|
4,030
|
|
|
|
|
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Research
and development expenses
|
110
|
106
|
196
|
203
|
Selling,
general and administrative expenses
|
3,262
|
2,902
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6,557
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5,901
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Operating
income/(loss)
|
(1,667)
|
(1,064)
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(5,635)
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(2,074)
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|
|
|
|
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Interest
expense
|
|
|
|
|
Interest
rate expense
|
3,164
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2,955
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6,006
|
5,633
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Amortization
expense
|
1,164
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1,489
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2,847
|
2,844
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Other
(income) expense
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(8)
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(525)
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20
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(461)
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Income/(loss
before income taxes)
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(5,987)
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(4,983)
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(14,508)
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(10,090)
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|
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|
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Income
tax expense
|
--
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--
|
6
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6
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|
|
|
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Net
income/(loss)
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$(5,987)
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$(4,983)
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$(14,514)
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$(10,096)
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Net
income/(loss) per common share
|
|
|
|
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Basic
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$(0.30)
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$(0.25)
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$(0.74)
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$(0.51)
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Diluted
|
$(0.30)
|
$(0.25)
|
$(0.74)
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$(0.51)
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|
|
|
|
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Weighted
average shares outstanding
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|
|
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Basic
|
19,699
|
19,741
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19,737
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19,695
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Diluted
|
19,699
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19,741
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19,737
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19,695
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AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
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June 30,
2017
(Unaudited)
|
December 31,
2016
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Assets
|
|
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Current
assets:
|
|
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Cash
and cash equivalents
|
$667
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$1,486
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Accounts
receivable
|
1,135
|
1,557
|
Inventories
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6,056
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3,241
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Prepaid
and other current assets
|
2,186
|
761
|
Total
current assets
|
10,044
|
7,045
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Property, plant and equipment, net
|
65,020
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66,370
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Intangible
and other assets
|
4,354
|
4,395
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Total assets
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$79,418
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$77,810
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|
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Liabilities and stockholders' deficit
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|
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Current
liabilities:
|
|
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Accounts
payable
|
$9,018
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$7,842
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Current
portion of long term debt, notes and working capital
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17,217
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11,409
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Mandatorily
redeemable Series B convertible preferred stock
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2,894
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2,844
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Other
current liabilities
|
6,202
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5,121
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Total
current liabilities
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35,331
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27,216
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Total
long term liabilities
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107,672
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100,407
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Total
stockholders' deficit
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(63,585)
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(49,813)
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|
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Total liabilities and stockholders' deficit
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$79,418
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$77,810
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RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||
|
2017
|
2016
|
2017
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2016
|
Net
Income/(loss)
|
$(5,987)
|
$(4,983)
|
$(14,514)
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$(10,096)
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Adjustments:
|
|
|
|
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Interest
expense
|
4,328
|
4,444
|
8,853
|
8,477
|
Depreciation
expense
|
1,152
|
1,184
|
2,298
|
2,353
|
Share-based
compensation
|
195
|
284
|
604
|
401
|
Intangibles
and other amortization
expense
|
31
|
31
|
64
|
63
|
Income
tax expense
|
|
|
6
|
6
|
Total
adjustments
|
5,706
|
5,943
|
11,825
|
11,300
|
Adjusted
EBITDA
|
$(281)
|
$960
|
$(2,689)
|
$1,204
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PRODUCTION AND PRICE PERFORMANCE
(unaudited)
|
Three
months ended
June
30,
|
Six
months ended
June
30,
|
||
|
2017
|
2016
|
2017
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2016
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Ethanol
|
|
|
|
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Gallons
sold (in millions)
|
15.6
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13.4
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29.1
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26.3
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Average
sales price/gallon
|
$1.80
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$1.83
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$1.78
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$1.74
|
|
|
|
|
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WDG
|
|
|
|
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Tons
sold (in thousands)
|
107.0
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92.4
|
195.5
|
180.1
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Average
sales price/ton
|
$60
|
$72
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$62
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$71
|
|
|
|
|
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Delivered cost of corn and milo
|
|
|
|
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Bushels
ground (in millions)
|
5.5
|
4.7
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10.3
|
9.2
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Average
delivered cost / bushel
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$4.78
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$4.83
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$4.85
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$4.65
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|
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Biodiesel
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|
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Metric
tons sold (in thousands)
|
4.7
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1.2
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5.5
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7.9
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Average
sales price/metric ton
|
$876
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$672
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$892
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$664
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Refined glycerin
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|
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Metric
tons sold (in thousands)
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1.5
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0.4
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2.7
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1.8
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Average
sales price/metric ton
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$800
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$621
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$748
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$579
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Feedstock (biodiesel and glycerin)
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|
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Metric tons purchased (in thousands)
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3.8
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1.4
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4.3
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8.7
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Average
cost/metric ton
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$830
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$487
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$987
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$502
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