CUPERTINO, CA / ACCESSWIRE / November 7, 2018 / 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, 2018.
During the third quarter of 2018, revenues increased $5.7 million compared to the third quarter of 2017.
"Aemetis continues to make solid progress towards producing below zero carbon, low cost, advanced biofuels," stated Eric McAfee, Chairman and CEO of Aemetis, Inc. "Revenue increased $5.7 million and ethanol volumes increased 8.4% over the third quarter of 2017, while gross profit improved by 36%."
Today, Aemetis will host an earnings review call at 11:00 am Pacific Time. For details on the call, visit: http://www.aemetis.com/investors/conference-call/
Financial Results for the Three Months Ended September 30, 2018
Revenues were $44.6 million for the third quarter of 2018, an increase of $5.7 million compared to $38.9 million for the third quarter of 2017. The increase in revenues was driven by an increase in ethanol sales volume to 16.7 million gallons from 15.4 million gallons during the third quarter of 2017, by stronger average selling prices of wet distillers grain, and stronger demand for India biodiesel. The increase in revenues translated to higher gross profit of $2.7 million for the third quarter of 2018, compared to gross profit of $2.0 million during the third quarter of 2017.
Selling, general and administrative expenses were $3.9 million in the third quarter of 2018, compared to $3.2 million in the third quarter of 2017.
Operating loss decreased to $1.3 million for the third quarter of 2018, compared to an operating loss of $3.1 million for the third quarter of 2017.
Net loss was $6.6 million for the third quarter of 2018, an improvement compared to a net loss of $8.2 million for the third quarter of 2017.
Interest expense during the third quarter of 2018 was $5.4 million, compared to interest expense of $5.1 million during the third quarter of 2017.
Financial Results for the Nine Months Ended September 30, 2018
Revenues were $132.7 million for the first nine months of 2018, an increase of $21.4 million compared to $111.3 million for the first nine months of 2017. The increase in revenues was driven by an increase in ethanol sales volume from 44.5 million gallons to 49.1 million gallons, by stronger average selling prices of wet distillers grain and stronger demand for India biodiesel. The increase in revenues translated to higher gross profit of $7.3 million for the first nine months of 2018, compared to gross profit of $3.1 million during the first nine months of 2017.
Selling, general and administrative expenses were $11.3 million during the first nine months of 2018, compared to $9.7 million during the first nine months of 2017.
Operating loss improved to $4.2 million for the first nine months of 2018, compared to operating loss of $8.7 million for first nine months of 2017.
Net loss was $24.0 million for the first nine months of 2018, compared to a net loss of $22.7 million during the first nine months of 2017.
Interest expense was $19.8 million during the first nine months of 2018, compared to interest expense of $14.0 million during the first nine months of 2017.
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 through 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 the 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.
AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenues | $ | 44,635 | $ | 38,935 | $ | 132,681 | $ | 111,273 | ||||||||
| Cost of goods sold | 41,967 | 36,980 | 125,379 | 108,200 | ||||||||||||
| Gross profit | 2,668 | 1,955 | 7,302 | 3,073 | ||||||||||||
| Research and development expense | 74 | 1,876 | 191 | 2,072 | ||||||||||||
| Selling, general and admin. expense | 3,893 | 3,182 | 11,289 | 9,739 | ||||||||||||
| Operating loss | (1,299 | ) | (3,103 | ) | (4,178 | ) | (8,738 | ) | ||||||||
| Interest expense | ||||||||||||||||
| Interest rate expense | 4,692 | 3,867 | 13,395 | 9,873 | ||||||||||||
| Amortization expense | 719 | 1,265 | 6,395 | 4,112 | ||||||||||||
| Other (income) expense | (61 | ) | (18 | ) | 2 | 2 | ||||||||||
| Loss before income taxes | (6,649 | ) | (8,217 | ) | (23,970 | ) | (22,725 | ) | ||||||||
| Income tax expense | -- | -- | 6 | 6 | ||||||||||||
| Net loss | $ | (6,649 | ) | $ | (8,217 | ) | $ | (23,976 | ) | $ | (22,731 | ) | ||||
| Less: Net loss attributable to non-controlling interest | (792 | ) | (707 | ) | (2,386 | ) | (707 | ) | ||||||||
| Net loss attributable to Aemetis, Inc. | $ | (5,857 | ) | $ | (7,510 | ) | $ | (21,590 | ) | $ | (22,024 | ) | ||||
| Net loss per common share | ||||||||||||||||
| Basic | $ | (0.29 | ) | $ | (0.38 | ) | $ | (1.07 | ) | $ | (1.11 | ) | ||||
| Diluted | $ | (0.29 | ) | $ | (0.38 | ) | $ | (1.07 | ) | $ | (1.11 | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 20,252 | 19,804 | 20,220 | 19,760 | ||||||||||||
| Diluted | 20,252 | 19,804 | 20,220 | 19,760 | ||||||||||||
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
| September 30, 2018(Unaudited) | December 31, 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 68 | $ | 428 | ||||
| Accounts receivable | 1,494 | 2,219 | ||||||
| Inventories | 7,682 | 5,737 | ||||||
| Prepaid and other current assets | 1,501 | 3,078 | ||||||
| Total current assets | 10,745 | 11,462 | ||||||
| Property, plant and equipment, net | 76,812 | 78,837 | ||||||
| Other assets | 4,173 | 4,032 | ||||||
| Total assets | $ | 91,730 | $ | 94,331 | ||||
| Liabilities and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,348 | $ | 10,457 | ||||
| Current portion of long term debt, notes and working capital | 19,402 | 15,625 | ||||||
| Mandatorily redeemable Series B stock | 3,022 | 2,946 | ||||||
| Other current liabilities | 7,486 | 6,988 | ||||||
| Total current liabilities | 43,258 | 36,016 | ||||||
| Total long term liabilities | 152,236 | 138,176 | ||||||
| Total Aemetis stockholders’ deficit | (99,909 | ) | (78,392 | ) | ||||
| Total Goodland Advanced Fuels, Inc. deficit | (3,855 | ) | (1,469 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 91,730 | $ | 94,331 | ||||
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
| Three Months Ended September 30, | Nine Months EndedSeptember 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net loss attributable to Aemetis, Inc. | $ | (5,857 | ) | $ | (7,510 | ) | $ | (21,590 | ) | $ | (22,024 | ) | ||||
| Adjustments: | ||||||||||||||||
| Interest expense | 4,708 | 4,548 | 17,725 | 13,401 | ||||||||||||
| Depreciation expense | 1,158 | 1,173 | 3,457 | 3,471 | ||||||||||||
| Share-based compensation | 202 | 196 | 805 | 800 | ||||||||||||
| Intangibles and other amortization expense | 35 | 34 | 105 | 98 | ||||||||||||
| Income tax expense | -- | -- | 6 | 6 | ||||||||||||
| Total adjustments | 6,103 | 5,951 | 22,098 | 17,776 | ||||||||||||
| Adjusted EBITDA | $ | 246 | $ | (1,559 | ) | $ | 508 | $ | (4,248 | ) | ||||||
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
| Three months endedSeptember 30, | Nine months ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Ethanol | ||||||||||||||||
| Gallons sold (in millions) | 16.7 | 15.4 | 49.1 | 44.5 | ||||||||||||
| Average sales price/gallon | $ | 1.78 | $ | 1.81 | $ | 1.79 | $ | 1.79 | ||||||||
| Wet Distillers Grain | ||||||||||||||||
| Tons sold (in thousands) | 108.5 | 104.7 | 316.5 | 300.2 | ||||||||||||
| Average sales price/ton | $ | 75 | $ | 66 | $ | 77 | $ | 63 | ||||||||
| Delivered cost of corn | ||||||||||||||||
| Bushels ground (in millions) | 5.8 | 5.5 | 17.1 | 15.8 | ||||||||||||
| Average delivered cost / bushel | $ | 4.78 | $ | 4.65 | $ | 4.91 | $ | 4.78 | ||||||||
| Biodiesel | ||||||||||||||||
| Metric tons sold (in thousands) | 6.0 | 3.0 | 15.2 | 8.5 | ||||||||||||
| Average sales price/metric ton | $ | 867 | $ | 837 | $ | 893 | $ | 873 | ||||||||
| Refined glycerin | ||||||||||||||||
| Metric tons sold (in thousands) | 1.0 | 0.4 | 3.7 | 3.1 | ||||||||||||
| Average sales price/metric ton | $ | 852 | $ | 905 | $ | 1,010 | $ | 770 | ||||||||
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com
Investor Relations/
Media Contact:
Todd Waltz
(408) 213-0940
investors@aemetis.com
SOURCE: Aemetis, Inc.
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