December 15th, 2015

Aemetis, Inc. Reports Second Quarter 2020 Financial Results

Earnings of $0.10 per Share; Net Income of $2.2 Million; Adjusted EBITDA of $11.2 Million Driven by Sales of High Grade Alcohol for Hand Sanitizer

CUPERTINO, CA / ACCESSWIRE / August 13, 2020 / 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, 2020.

Aemetis' second quarter of 2020 included significant announcements and financial achievements related principally to sales of high-grade alcohol, including:

  • Gross Profit of $14.1 million
  • Net Income of $2.2 million
  • Adjusted EBITDA of $11.2 million
  • Announced plans to produce US Pharmacopeia (USP) grade alcohol

"As a result of the global COVID-19 pandemic, demand for high grade alcohol for sanitizer production and shipments of alcohol to bulk sanitizer alcohol customers increased dramatically in the second quarter," said Eric McAfee, Chairman and CEO of Aemetis. "In the final weeks of Q1, we adopted a variety of process improvements and plant upgrades to produce large volumes of high grade alcohol for hand sanitizer. Due to pandemic-related demand as well as what we expect will be longer-term behavioral changes by consumers to reduce the spread of viruses, we anticipate continued market growth for hand sanitizers, personal care and cleaning markets, which contain high grade alcohol," added McAfee.

"As the largest capacity high grade alcohol producer in the Western US," McAfee stated, "Aemetis is implementing systems and equipment that we believe will enable us to produce USP grade alcohol in Q1 2021. We are also developing expanded marketing channels in the US, Canada and other countries for the sale of bulk sanitizer alcohol, bulk blended liquid and gel sanitizer, along with private label and Aemetis-branded and packaged sanitizer products."

Today, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).
Live Participant Dial In (Toll Free): +1-844-602-0380
Live Participant Dial In (International): +1-862-298-0970
Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/36421

For details on the call, please visit http://www.aemetis.com/investors/conference-calls/

Financial Results for the Three Months Ended June 30, 2020

Revenues were $47.8 million for the second quarter of 2020 compared to $50.6 million for the second quarter of 2019, driven by the entry into the high-grade alcohol market, but were slightly offset by the delay in the India Government Oil Marketing Company biodiesel bidding process.

Gross profit for the second quarter of 2020 rose to $14.1 million, compared to a gross profit of $3.3 million during the second quarter of 2019. North America segment accounted for $13.9 million of the reported, consolidated gross profit.

Selling, general and administrative expenses were $4.0 million during the second quarter of 2020, compared to $3.9 million during the second quarter of 2019.

Operating income increased to $10.0 million for the second quarter of 2020, compared to an operating loss of $0.8 million for the second quarter of 2019.

Interest expense during the second quarter of 2020 was $6.2 million, excluding accretion in connection with Series A preferred units in the Aemetis Biogas LLC subsidiary, compared to $6.6 million during the second quarter of 2019. The Aemetis Biogas subsidiary recognized $1.4 million of accretion in connection with preference payments on its preferred stock.

Net income was $2.2 million for the second quarter of 2020, compared to a net loss of $13.9 million for the second quarter of 2019.

Adjusted EBITDA increased to $11.2 million for the three months ended June 30, 2020.

Cash at the end of the second quarter of 2020 increased to $3.4 million, compared to $0.6 million at the end of 2019.

Financial Results for the Six Months Ended June 30, 2020

Revenues were $87.3 million for the first half of 2020, compared to $92.5 million for the first half of 2019.

Selling, general and administrative expenses were $8.0 million during the first half of 2020, compared to $8.2 million during the first half of 2019.

Operating income increased to $5.5 million for the first half of 2020, compared to an operating loss of $5.4 million for the first half of 2019.

Interest expense was $13.1 million during the first half of 2020, excluding accretion of Series A preferred units in the Aemetis Biogas LLC subsidiary, compared to interest expense of $12.8 million during the first half of 2019. Additionally, the Aemetis Biogas subsidiary recognized $2.3 of accretion in connection with preference payments on its preferred stock.

Net loss for the first half of 2020 was $9.9 million, compared to a net loss of $24.6 million in 2019, when the Company recorded a one-time charge for loss contingency on litigation. The 2020 margin improvement was due in large part to selling high-grade alcohol into the hand sanitizer market.

Adjusted EBITDA was $8.2 million for the six months ended June 30, 2020.

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 65 million gallon per year ethanol production facility in California's 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 is building a biogas anaerobic digester network and pipeline to convert dairy animal waste gas to Renewable Natural Gas (RNG), and is developing a plant to convert waste orchard wood into high grade cellulosic alcohol. 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, accretion expense, depreciation expense, loss contingency on litigation 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, demand for high grade alcohol and related products, including hand sanitizers, 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, 2019, our Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 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)

  Three months ended  Six months ended 
  June 30,  June 30, 
  2020  2019  2020  2019 
Revenues $47,824  $50,619  $87,304  $92,507 
Cost of goods sold  33,765   47,346   73,678   89,585 
Gross profit  14,059   3,273   13,626   2,922 
                 
Research and development expense  21   90   138   123 
Selling, general and admin. expense  4,049   3,945   7,985   8,186 
Operating income (loss)  9,989   (762)  5,503   (5,387)
                 
Interest expense                
Interest rate expense  5,574   5,190   11,160   10,176 
Amortization expense  614   1,396   1,904   2,619 
Accretion of Series A preferred units  1,362   471   2,322   920 
Loss contingency on litigation  --   6,200   --   6,200 
Other (income) expense  303   (89)  240   (712)
Income (loss) before income taxes  2,136   (13,930)  (10,123)  (24,590)
                 
Income tax expense (benefit)  (56)  --   (263)  7 
                 
Net income (loss) $2,192  $(13,930) $(9,860) $(24,597)
                 
Non-controlling interest  --   (994)  --   (1,932)
Net income (loss) attributable to Aemetis, Inc.  2,192   (12,936)  (9,860)  (22,665)
                 
Net income (loss) per common share                
Basic $0.11  $(0.63) $(0.48) $(1.11)
Diluted $0.10  $(0.63) $(0.48) $(1.11)
                 
Weighted average shares outstanding                
Basic  20,683   20,375   20,668   20,371 
Diluted  21,153   20,375   20,668   20,371 
                 

AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)

   June 30, 2020(Unaudited)    December 31, 2019 
Assets         
Current assets:         
Cash and cash equivalents  3,410    656 
Accounts receivable    5,202      2,036 
Inventories    7,290      6,518 
Prepaid and other current assets    2,034      3,366 
Total current assets    17,936      12,576 
                
Property, plant and equipment, net    98,525      84,226 
Right-of-use and other assets    5,697      3,094 
Total assets  122,158    99,896 
                
Liabilities and stockholders' deficit               
Current liabilities:               
Accounts payable  16,367    15,968 
Current portion of long term debt    7,569      5,792 
Short term borrowings    16,096      16,948 
Mandatorily redeemable Series B stock    3,200      3,149 
Accrued property taxes and other current liabilities    16,766      15,962 
Total current liabilities    59,998      57,819 
                
Total long term liabilities    226,359      196,449 
                
Stockholders' deficit:               
Series B convertible preferred stock    1      1 
Common stock    21      21 
Additional paid-in capital    87,580      86,852 
Accumulated deficit    (247,281)    (237,421)
Accumulated other comprehensive loss    (4,520)    (3,825)
Total stockholders' deficit    (164,199)    (154,372)
Total liabilities and stockholders' deficit  122,158    99,896 
         

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited, in thousands)

   Three Months EndedJune 30,    Six Months EndedJune 30, 
   2020    2019    2020    2019 
Net income (loss) attributable to Aemetis, Inc.  2,192    (12,936)   (9,860)   (22,665)
Adjustments:                       
Interest expense    6,188      5,694      13,064      11,075 
Loss contingency on litigation    --      6,200      --      6,200 
Depreciation expense    1,172      1,096      2,262      2,234 
Accretion of Series A preferred units    1,362      471      2,322      920 
Share-based compensation    325      196      635      486 
Intangibles and otheramortization expense    12      12      24      24 
Income tax expense (benefit)    (56)    --      (263)    7 
Total adjustments    9,003      13,669      18,044      20,946 
Adjusted EBITDA  11,195    733    8,184    (1,719)
                 

PRODUCTION AND PRICE PERFORMANCE
(unaudited)

   Three months ended June 30,    Six months ended June 30, 
   2020    2019    2020    2019 
Ethanol                   
Gallons sold (in millions)    13.8      16.2      29.6      32.4 
Average sales price/gallon  2.63    1.84    2.08    1.76 
Percentage of nameplate capacity    100%    118%    108%    118%
WDG                               
Tons sold (in thousands)    90.9      106.9      198.0      213.8 
Average sales price/ton  82    81    80    81 
Delivered cost of corn                               
Bushels ground (in millions)    4.9      5.7      10.6      11.3 
Average delivered cost / bushel  4.46    5.37    4.84    5.29 
Biodiesel                               
Metric tons sold (in thousands)    2.6      13.0      6.3      18.2 
Average sales price/metric ton  835    833    786    830 
Percentage of nameplate capacity    7%    35%    8%    24%
Refined glycerin                               
Metric tons sold (in thousands)    0.4      0.6      0.6      2.0 
Average sales price/metric ton  901    560    772    618 
                 

External Investor Relations Contact:

Kirin Smith
PCG Advisory Group
(646) 863-6519

Investor Relations/ Media Contact:

Todd Waltz
(408) 213-0940
investors@aemetis.com

SOURCE: Aemetis, Inc.



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https://www.accesswire.com/601527/Aemetis-Inc-Reports-Second-Quarter-2020-Financial-Results

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