Attached files
| file | filename |
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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
|
|
Company Contact:
Todd
Waltz
Chief
Financial Officer
(408)
213-0925
twaltz@aemetis.com
|
Aemetis Reports 2017 Fourth Quarter and Year-End
Results
CUPERTINO, Calif. – March 29, 2018 –
Aemetis,
Inc. (NASDAQ: AMTX), an
advanced renewable fuels and biochemicals company, today announced
its financial results for the three and twelve months ended
December 31, 2017.
“2017
set in place the foundational milestones for significant revenue
increases, positive earnings and interest cost reductions for
Aemetis,” said Eric McAfee, Chairman and CEO of Aemetis, Inc.
“India plant upgrades and the California advanced biofuels
project are executing well, along with the marketing in Asia and
the Middle East of our $50 million Phase II EB-5
offering.”
Company
foundational milestones include:
●
Our India biodiesel
plant generated $13.4 million of revenues operating at about 10% of
its capacity during a period of uncertainty created by the adoption
of the Goods and Services Tax system. In February 2018, the Goods
and Services Tax rate applied to biodiesel was reduced and,
combined with crude oil price increases to more than $60 per
barrel, allows for attractive growth in the domestic India
market.
●
A low carbon
biodiesel supply agreement was signed with BP Singapore in May
2017, establishing a significant international customer for
biodiesel produced by our India plant. In March 2018, the
construction of the tanks for the advanced pre-treatment unit at
the India biodiesel plant was completed for the supply of product
under the BP Singapore agreement.
●
Our California
cellulosic ethanol project achieved several major milestones,
including signing a 55 year lease on the Riverbank site, securing a
20 year feedstock agreement, obtaining multiple environmental
permits, and delivering favorable yield data from operation of a
demonstration unit satisfying the key requirements for a $125
million USDA loan guarantee to fund the construction of the 12
million gallon per year Riverbank plant.
Today, Aemetis will host an earnings review call at 11:00 am
Pacific time (PT).
Live Participant Dial In (Toll Free): +1-877-407-8035
Live Participant Dial In (International): +1-201-689-8035
Webcast URL: www.investorcalendar.com/event/27138
For details on the call, please visit http://www.aemetis.com/investors/conference-calls/
Financial Results for the Three Months Ended December 31,
2017
Revenues
were $38.9 million for the fourth quarter of 2017, compared to
$37.4 million for the fourth quarter of 2016. The increase in
revenue was primarily attributable to increases in ethanol
production volume from 14.6 million gallons during the three months
ended 2016 to 16.3 million gallons during the three months ended
2017. Gross margin for the fourth quarter of 2017 was $0.3 million,
compared to the gross margin of $3.9 million during the fourth
quarter of 2016.
Gross
profit for the three months ended December 31, 2017 was $302
thousand, compared to $3.9 million during the same period in 2016.
Gross profit decline was attributable to softening prices for
ethanol from $1.90 per gallon during the three months ended
December 31, 2016 to $1.65 per gallon during the three months ended
December 31, 2017 in a market where the cost of corn remained
flat.
Selling, general and administrative expenses were $3.5 million
during the fourth quarter of 2017, compared to $2.9 million during
the fourth quarter of 2016.
Operating loss was $3.4 million for the fourth quarter of 2017,
compared to operating income of $0.9 million during the fourth
quarter of 2016.
Net loss was $9.0 million for the fourth quarter of 2017, compared
to a net loss of $1.4 million for the fourth quarter of
2016.
Cash at the end of the fourth quarter of 2017 was $0.4 million,
compared to $1.5 million at the end of the fourth quarter of
2016.
Financial Results for the Twelve Months Ended December 31,
2017
Revenues
increased to $150.2 million for the twelve months ended December
31, 2017, compared to $143.2 million for the same period in 2016.
The increase in revenue was primarily attributable to increases in
the production of ethanol and wet distillers grains.
Gross
profit for the twelve months ended December 31, 2017 was $3.4
million, compared to $11.6 million during the same period in 2016.
Gross profit decline was attributable to an increase in the cost of
corn coupled with softening in the pricing of wet distillers
gains for the year ended December 31, 2017 compared to
2016.
Selling, general and administrative expenses were $13.2 million
during the twelve months ended December 31, 2017, compared to $12.0
million during the same period in 2016. The increase in selling,
general and administrative expenses was primarily attributable to
an $0.8 million increase in salary and stock compensation, and $0.5
million of increased marketing commissions and professional fees
compared to the same period of the prior year.
Operating loss was $12.2 million for the twelve months ended
December 31, 2017, compared to an operating loss of $0.8 million
for the same period in 2016.
Net loss attributable to Aemetis was $31.8 million for the twelve
months ended December 31, 2017 compared to a net loss of $15.6
million during the same period in 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.
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 September 30, 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
(In thousands, except per share data)
|
|
Three
months ended
|
Year
ended
|
||
|
|
December
31,
|
December
31,
|
||
|
|
2017
|
2016
|
2017
|
2016
|
|
Revenues
|
$38,884
|
$37,396
|
$150,157
|
$143,158
|
|
Cost of goods
sold
|
38,582
|
33,493
|
146,782
|
131,559
|
|
Gross
profit
|
302
|
3,903
|
3,375
|
11,599
|
|
|
|
|
|
|
|
Research and
development expenses
|
295
|
79
|
2,367
|
369
|
|
Selling, general
and administrative expenses
|
3,452
|
2,888
|
13,191
|
12,011
|
|
Operating
income/(loss)
|
3,445
|
936
|
(12,183)
|
(781)
|
|
|
|
|
|
|
|
Interest rate
expense
|
4,033
|
2,814
|
13,906
|
11,493
|
|
Amortization
expense
|
1,286
|
1,454
|
5,398
|
5,723
|
|
Loss/(gain) on debt
extinguishment
|
-
|
(2,033)
|
-
|
(2,033)
|
|
Loss on impairment
of goodwill and intangibles
Other
expense/(income)
|
-275
|
-146
|
-277
|
-(334)
|
|
Income/(loss)
before income taxes
|
(9,039)
|
(1,445)
|
(31,764)
|
(15,630)
|
|
|
|
|
|
|
|
Income tax
expense
|
-
|
-
|
(6)
|
(6)
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$(9,039)
|
$(1,445)
|
$(31,770)
|
$(15,636)
|
|
Non controlling
interest
|
(762)
|
|
(1,469)
|
|
|
Net loss
attributable to Aemetis
|
$(8,277)
|
$(1,445)
|
$(30,301)
|
$(15,636)
|
|
|
|
|
|
|
|
Net Income/(loss)
per common share
|
|
|
|
|
|
Basic
|
$(0.41)
|
$(0.07)
|
$(1.53)
|
$(0.79)
|
|
Diluted
|
$(0.41)
|
$(0.07)
|
$(1.53)
|
$(0.79)
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
Basic
|
19,759
|
19,858
|
19,833
|
19,771
|
|
Diluted
|
19,759
|
19,858
|
19,833
|
19,771
|
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
|
|
Year
ended December 31,
|
|
|
|
2017
|
2016
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$428
|
$1,486
|
|
Accounts
receivable
|
2,219
|
1,557
|
|
Inventories
|
5,737
|
3,241
|
|
Prepaid and Other
Assets
|
3,078
|
761
|
|
Total current
assets
|
11,462
|
7,045
|
|
|
|
|
|
Property, plant and
equipment, net
|
78,837
|
66,370
|
|
Other
assets
|
4,032
|
4,395
|
|
Total
assets
|
$94,331
|
$77,810
|
|
|
|
|
|
Liabilities
and stockholders' deficit
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$10,457
|
$7,842
|
|
Current portion of
long term debt
|
2,039
|
2,027
|
|
Short term
borrowings
|
13,586
|
9,382
|
|
Mandatorily
redeemable Series B convertible preferred stock
|
2,946
|
2,844
|
|
Accrued property
taxes and other liabilities
|
6,988
|
5,121
|
|
Total current
liabilities
|
36,016
|
27,216
|
|
|
|
|
|
Total long term
liabilities
|
138,176
|
100,407
|
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
Series B
convertible preferred stock
|
1
|
1
|
|
Common
stock
|
20
|
20
|
|
Additional paid-in
capital
|
84,679
|
83,441
|
|
Accumulated
deficit
|
(160,188)
|
(129,887)
|
|
Accumulated other
comprehensive loss
|
(2,904)
|
(3,388)
|
|
Total stockholders'
deficit
|
(78,392)
|
(49,813)
|
|
|
|
|
|
Total
liabilities and stockholders' deficit
|
$94,331
|
$77,810
|
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME /
(LOSS)
(In thousands)
|
|
Three
months ended
December
31,
|
Year
ended
December
31,
|
||
|
|
2017
|
2016
|
2017
|
2016
|
|
Net
income/(loss)
|
$(9,039)
|
$(1,445)
|
$(31,770)
|
$(15,636)
|
|
Adjustments:
|
|
|
|
|
|
Interest
expense
|
4,033
|
2,814
|
13,906
|
11,493
|
|
Amortization
expense
|
1,286
|
1,454
|
5,398
|
5,723
|
|
Loss on debt
extinguishment
|
-
|
(2,033)
|
-
|
(2,033)
|
|
Income tax
expense
|
-
|
-
|
6
|
6
|
|
Intangibles and
other
amortization
expense
|
94
|
31
|
392
|
126
|
|
Depreciation
expense
|
1,151
|
1,147
|
4,622
|
4,670
|
|
Share-based-compensation
|
419
|
174
|
1,219
|
747
|
|
Total
adjustments
|
6,869
|
3,587
|
25,425
|
20,732
|
|
Adjusted
EBITDA
|
$(2,170)
|
$2,142
|
$(6,345)
|
$5,096
|
|
|
|
|||
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
|
|
Three
months ended
|
Year
ended
|
||
|
|
December
31,
|
December
31,
|
||
|
|
2017
|
2016
|
2017
|
2016
|
|
Ethanol
|
|
|
|
|
|
Gallons Sold (in
millions)
|
16.3
|
14.6
|
60.8
|
55.6
|
|
Average Sales
Price/Gallon
|
$1.65
|
$1.90
|
$1.75
|
$1.78
|
|
WDG
|
|
|
|
|
|
Tons Sold (in
thousands)
|
107
|
95
|
407
|
372
|
|
Average Sales
Price/Ton
|
$70
|
$65
|
$65
|
$71
|
|
Delivered
Cost of Corn
|
|
|
|
|
|
Bushels ground (in
millions)
|
5.7
|
5.1
|
21.5
|
19.5
|
|
Average delivered
cost / bushel
|
$4.58
|
$4.59
|
$4.73
|
$4.58
|
|
Biodiesel
|
|
|
|
|
|
Metric tons sold
(in thousands)
|
3.7
|
2.1
|
12.2
|
16.1
|
|
Average Sales
Price/Metric ton
|
$800
|
$778
|
$851
|
$739
|
|
Refined
Glycerin
|
|
|
|
|
|
Metric tons sold
(in thousands)
|
0.7
|
1.8
|
3.8
|
4.4
|
|
Average Sales
Price/Metric ton
|
$997
|
$567
|
$810
|
$582
|