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
|
Investor Relations/
Media Contact:
Todd
Waltz
(408) 213-0940
investors@aemetis.com
|
Aemetis, Inc. Reports Third Quarter 2020 Financial
Results
CUPERTINO, Calif. – November 12, 2020 - Aemetis, Inc.
(NASDAQ: AMTX), an advanced renewable
fuels and biochemicals company innovating the reduction of carbon
intensity, today announced its financial results for the three and
nine months ended September 30, 2020.
Aemetis’ third quarter of 2020 included significant
announcements and financial achievements:
●
Ethanol
and high-grade alcohol gallons sold increased 11% to 15.2 million
gallons compared to the second quarter of 2020
●
Biodiesel
metric tons sold increased 216% compared to the second quarter of
2020
●
Revenues
were $40.9 million during the third quarter
●
Net
Loss was $12.2 million ($0.59 per share)
“In the third quarter, the Aemetis Biogas team achieved
several significant milestones by completing the first phase of our
dairy digester cluster project, including the commissioning of a
four mile Aemetis-owned pipeline and two dairy digesters that are
now producing below zero carbon intensity biogas,” said Eric
McAfee, Chairman & CEO of Aemetis, Inc. “The biogas team
is working to rapidly build 16 additional dairy digesters under 25
year contracts, a centralized gas clean up unit, and about 26 more
miles of pipeline in the Aemetis dairy digester cluster, which is
expected to be fully completed within about 18 months. In 2021,
Aemetis will be able to inject dairy renewable natural gas into the
common carrier pipeline and utilize an onsite renewable compressed
natural gas fueling station,” McAfee added.
Demand for high grade alcohol for sanitizer production and
shipments of bulk alcohol to sanitizer alcohol customers launched
strongly in the second quarter of 2020 at the onset of the COVID-19
pandemic, but then softened during the third quarter of 2020 due to
inferior product from overseas and customer resulting demand for
United States Pharmacopeia grade alcohol. Responding to this
continued market demand for high-quality sanitizer and health
products, Aemetis expanded its sustainable advantage as the largest
West Coast producer of high grade alcohol for sanitizer and health
products by launching Aemetis Health Products. This new subsidiary
extended the business into the production and distribution of
branded and private label blended liquid and gel sanitizer and
other health safety products.
“After obtaining the Food and Drug Administration National
Drug Code for sanitizer products, Aemetis Health Products began
production during the third quarter to expand product offerings
into key markets for hand sanitizers, personal care and cleaning
products. Sales of the new sanitizer products are planned to be
supported by production of United States Pharmacopeia medical grade
alcohol beginning in the first half of 2021,” said
McAfee.
To reduce the carbon intensity of our products, Aemetis commenced
project development for two significant ethanol plant energy
upgrade projects, including a large solar microgrid that is
expected to produce approximately 1.5MW of renewable energy at the
Keyes plant, and a mechanical vapor recompression (MVR) upgrade
that, when combined with the solar project, is engineered to reduce
the plant’s natural gas steam usage by approximately 85%. The
combined solar and MVR projects were awarded $14 million of grants
from the California Energy Commission in 2020, with construction
expected to commence in the second half of 2021.
This
month, Aemetis participated in a $900 million India government oil
marketing company request to purchase biodiesel, and acceptance of
our bid is expected to grow revenue at our India business during
2021.
Today, Aemetis will host an earnings review call at 11:00 a.m.
Pacific time (PT).
Live
Participant Dial In (Toll Free): +1-844-407-9500
Live
Participant Dial In (International): +1-862-298-0850
Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/38376
For
details on the call, please visit http://www.aemetis.com/investors/conference-calls/
Financial Results for the Three Months Ended September 30,
2020
Revenues were $40.9 million for the third quarter of 2020 compared
to $57.4 million for the third quarter of 2019, driven by the
reduction in the price of ethanol and delays in the India
government oil marketing companies biodiesel bidding
process.
Gross profit for the third quarter of 2020 was $771 thousand,
compared to a gross profit of $4.0 million during the third quarter
of 2019.
Selling, general and administrative expenses remained flat at $4.6
million during the third quarter of 2020, compared to $4.5 million
during the third quarter of 2019.
Operating loss increased to $3.8 million for the third quarter of
2020, compared to an operating loss of $0.6 million for the third
quarter of 2019.
Interest expense during the third quarter of 2020 was $6.5 million,
excluding accretion in connection with Series A preferred units in
the Aemetis Biogas LLC subsidiary, compared to $6.3 million during
the third quarter of 2019. The Aemetis Biogas LLC subsidiary
recognized $1.8 million of accretion in connection with preference
payments on its preferred stock units compared to $0.6 during the
third quarter of 2019.
Net loss was $12.2 million for the third quarter of 2020, compared
to a net loss of $7.2 million for the third quarter of
2019.
Adjusted EBITDA was negative $2.5 million for the three months
ended September 30, 2020.
Cash at the end of the third quarter of 2020 was $79 thousand,
compared to $656 thousand at the end of 2019.
Financial Results for the Nine Months Ended September 30,
2020
Revenues were $128.2 million for the first three quarters of 2020,
compared to $149.9 million for the first three quarters of
2019.
Selling, general and administrative expenses were $12.5 million
during the first three quarters of 2020, compared to $12.7 million
during the first three quarters of 2019.
Operating income was $1.7 million for the first three quarters of
2020, compared to an operating loss of $6.0 million for the first
three quarters of 2019.
Interest expense was $19.5 million during the first three quarters
of 2020, excluding accretion of Series A preferred units in the
Aemetis Biogas LLC subsidiary, compared to interest expense of
$19.1 million during the first three quarters of 2019.
Additionally, the Aemetis Biogas LLC subsidiary recognized $4.1
million of accretion in connection with preference payments on its
preferred stock during the first three quarters of
2020.
Net
loss for the first three quarters of 2020 was $22.1 million,
compared to a net loss of $31.8 million during the first three
quarters of 2019, when the Company recorded a one-time charge for
loss contingency on litigation of $6.2 million. The 2020 net income
improvement was due in large part to selling high-grade alcohol
into the hand sanitizer market.
Adjusted
EBITDA was $5.7 million for the nine months ended September 30,
2020 compared to a negative adjusted EBITDA during the same period
of 2019.
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, June 30,
2020 and September 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
|
Nine months
ended
|
||
|
|
September
30,
|
September
30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
Revenues
|
$40,923
|
$57,389
|
$128,227
|
$149,896
|
|
Cost of goods
sold
|
40,152
|
53,407
|
113,830
|
142,992
|
|
Gross
profit
|
771
|
3,982
|
14,397
|
6,904
|
|
|
|
|
|
|
|
Research and
development expense
|
37
|
37
|
175
|
160
|
|
Selling, general
and admin. expense
|
4,563
|
4,529
|
12,548
|
12,715
|
|
Operating income
(loss)
|
(3,829)
|
(584)
|
1,674
|
(5,971)
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
Interest rate
expense
|
5,796
|
5,396
|
16,956
|
15,572
|
|
Amortization
expense
|
674
|
946
|
2,578
|
3,565
|
|
Accretion of Series
A preferred units
|
1,765
|
589
|
4,087
|
1,509
|
|
Loss contingency on
litigation
|
--
|
--
|
--
|
6,200
|
|
Other (income)
expense
|
153
|
(289)
|
393
|
(1,001)
|
|
Loss before income
taxes
|
(12,217)
|
(7,226)
|
(22,340)
|
(31,816)
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
--
|
--
|
(263)
|
7
|
|
|
|
|
|
|
|
Net
loss
|
$(12,217)
|
$(7,226)
|
$(22,077)
|
$(31,823)
|
|
|
|
|
|
|
|
Non-controlling
interest
|
--
|
(900)
|
--
|
(2,832)
|
|
Net loss
attributable to Aemetis, Inc.
|
$(12,217)
|
$(6,326)
|
$(22,077)
|
$(28,991)
|
|
|
|
|
|
|
|
Net loss per common
share
|
|
|
|
|
|
Basic
|
$(0.59)
|
$(0.31)
|
$(1.06)
|
$(1.42)
|
|
Diluted
|
$(0.59)
|
$(0.31)
|
$(1.06)
|
$(1.42)
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
Basic
|
20,861
|
20,554
|
20,732
|
20,433
|
|
Diluted
|
20,861
|
20,554
|
20,732
|
20,433
|
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
|
|
September
30,
2020
(Unaudited)
|
December
31,
2019
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$79
|
$656
|
|
Accounts
receivable, net
|
3,243
|
2,036
|
|
Inventories
|
4,816
|
6,518
|
|
Prepaid and other
current assets
|
5,409
|
3,366
|
|
Total current
assets
|
13,547
|
12,576
|
|
|
|
|
|
Property,
plant and equipment, net
|
103,050
|
84,226
|
|
Right-of-use and
other assets
|
5,573
|
3,094
|
|
Total
assets
|
$122,170
|
$99,896
|
|
|
|
|
|
Liabilities
and stockholders' deficit
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$15,023
|
$15,968
|
|
Current portion of
long-term debt
|
41,979
|
5,792
|
|
Short-term
borrowings
|
17,357
|
16,948
|
|
Mandatorily
redeemable Series B stock
|
3,226
|
3,149
|
|
Accrued property
taxes and other current liabilities
|
18,240
|
15,962
|
|
Total current
liabilities
|
95,825
|
57,819
|
|
|
|
|
|
Total long term
liabilities
|
201,908
|
196,449
|
|
|
|
|
|
Stockholders'
deficit:
|
|
|
|
Series
B convertible preferred stock
|
1
|
1
|
|
Common
stock
|
21
|
21
|
|
Additional
paid-in capital
|
88,119
|
86,852
|
|
Accumulated
deficit
|
(259,498)
|
(237,421)
|
|
Accumulated
other comprehensive loss
|
(4,206)
|
(3,825)
|
|
Total
stockholders’ deficit
|
(175,563)
|
(154,372)
|
|
Total
liabilities and stockholders' deficit
|
$122,170
|
$99,896
|
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited, in thousands)
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
Net loss
attributable to Aemetis, Inc.
|
$(12,217)
|
$(6,326)
|
$(22,077)
|
$(28,991)
|
|
Adjustments:
|
|
|
|
|
|
Interest
expense
|
6,470
|
5,545
|
19,534
|
16,620
|
|
Loss contingency on
litigation
|
--
|
--
|
--
|
6,200
|
|
Depreciation
expense
|
1,253
|
1,103
|
3,515
|
3,337
|
|
Accretion of Series
A preferred units
|
1,765
|
589
|
4,087
|
1,509
|
|
Share-based
compensation
|
191
|
144
|
826
|
630
|
|
Intangibles and
other amortization expense
|
12
|
12
|
36
|
36
|
|
Income tax expense
(benefit)
|
--
|
--
|
(263)
|
7
|
|
Total
adjustments
|
9,691
|
7,393
|
27,735
|
28,339
|
|
Adjusted
EBITDA
|
$(2,526)
|
$1,067
|
$5,658
|
$(652)
|
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
Ethanol
and high grade alcohol
|
|
|
|
|
|
Gallons sold (in
millions)
|
15.2
|
15.8
|
44.9
|
48.1
|
|
Average sales
price/gallon
|
$1.63
|
$1.74
|
$1.93
|
$1.75
|
|
Percentage of
nameplate capacity
|
111%
|
115%
|
112%
|
117%
|
|
WDG
|
|
|
|
|
|
Tons sold (in
thousands)
|
94.2
|
106.2
|
292.0
|
319.9
|
|
Average sales
price/ton
|
$76
|
$83
|
$79
|
$82
|
|
Delivered
cost of corn
|
|
|
|
|
|
Bushels ground (in
millions)
|
5.2
|
5.6
|
15.8
|
16.9
|
|
Average delivered
cost / bushel
|
$4.92
|
$5.53
|
$4.87
|
$5.37
|
|
Biodiesel
|
|
|
|
|
|
Metric tons sold
(in thousands)
|
8.1
|
19.3
|
14.3
|
37.1
|
|
Average sales
price/metric ton
|
$901
|
$882
|
$855
|
$868
|
|
Percentage of
nameplate capacity
|
22%
|
52%
|
7%
|
19%
|
|
Refined
glycerin
|
|
|
|
|
|
Metric tons sold
(in thousands)
|
0.6
|
2.0
|
1.1
|
3.9
|
|
Average sales
price/metric ton
|
$807
|
$470
|
$817
|
$554
|