Aemetis, Inc. Reports Third Quarter 2019 Financial Results Reflecting Strong Growth from India Biofuels Plant

Reports 145% year to date increase in biodiesel sales volumes from 15,176 metric tons to 37,104 metric tons

CUPERTINO, CA / ACCESSWIRE / November 14, 2019 / 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, 2019.

Aemetis’ third quarter of 2019 included significant announcements related to the market expansion of its India plant and the opening of new customer segments in India:

  • Third quarter revenues from India operations of $19.6M
    • 34% of consolidated company revenue for the third quarter of 2019
    • 76% increase from second quarter of 2019
    • 223% increase from the third quarter of the prior year
  • Year to date revenues from India operations of $36.0M
    • 24% of consolidated company revenue for the first three quarters of 2019
    • 108% increase from the first three quarters of the prior year

“The Aemetis team in India is executing on a rapid increase in production and revenues to meet strong growth in domestic market demand for biofuels in India. The Aemetis team in the United States is building dairy digesters to produce renewable natural gas, constructing lower carbon production enhancements for our ethanol plant, and engineering the Aemetis Riverbank advanced biofuels plant,” stated Eric McAfee, Chairman and CEO of Aemetis. “These four business units have provided solid revenue growth during 2019 and positioned Aemetis as a leading producer of low carbon renewable fuels and chemicals that improve air quality, reduce greenhouse gas emissions, expand employment, and reduce dependence on imported crude oil in the U.S. and India.”

In addition to four upgrades at the Aemetis ethanol plant near Modesto, Aemetis is completing the first phase of a $50+ million renewable natural gas project to collect and upgrade biogas from about a dozen dairies. Aemetis continues to advance its ultra-low carbon California cellulosic ethanol biorefinery, which is expected, upon completion, to add approximately $80 million of high margin revenues. Utilizing thousands of tons of waste wood from California’s Central Valley, the Aemetis cellulosic ethanol biorefinery is expected to produce the state’s lowest carbon ethanol fuel and reduce greenhouse gas emissions in the process.

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-calls/

Financial Results for the Three Months Ended September 30, 2019

Revenues were $57.4 million for the third quarter of 2019 compared to $44.6 million for the third quarter of 2018, driven by a 222% increase in biodiesel sales volumes from 6.0 thousand metric tons to 19.3 thousand metric tons. In addition, quarter over quarter volumes for biodiesel grew by 6.8 thousand metric tons, or 54%, from 12.5 thousand metric tons during the second quarter of 2019, and 5.3 thousand metric tons during the first quarter of 2019. Revenues from the India segment were $19.6 million and accounted for 34% of total revenue. North America segment revenues softened by 2% from $38.6 million during the third quarter of 2018 to $37.8 million during the third quarter of 2019.

Gross profit for the third quarter of 2019 rose to $4.0 million, compared to a gross profit of $2.7 million during the third quarter of 2018. India segment accounted for $4.2 million of the reported, consolidated gross profits.

Selling, general and administrative expenses were $4.5 million during the third quarter of 2019, compared to $3.9 million during the third quarter of 2018.

Operating loss was $0.6 million for the third quarter of 2019, a reduction from the operating loss of $1.3 million for the third quarter of 2018.

Interest expense during the third quarter of 2019, excluding accretion in connection with preference payments on the Series A preferred units in the Aemetis Biogas LLC subsidiary, was $6.3 million, compared to $5.4 million during the third quarter of 2018. Additionally, the Aemetis Biogas initiative recognized $589 thousand of accretion in connection with preference payments on its preferred stock.

Net loss was $7.2 million for the third quarter of 2019, compared to a net loss of $6.6 million for the third quarter of 2018.

Cash at the end of the third quarter of 2019 was $0.9 million, compared to $1.2 million at the end of 2018.

Financial Results for the Nine Months Ended September 30, 2019

Revenues were $149.9 million for the first three quarters of 2019, an increase of $17.2 million compared to $132.7 million for the first three quarters of 2018. This increase in revenues was driven by strong demand for biodiesel in India during the second and third quarters of 2019, as a result of supplying the India oil marketing companies s as well as domestic retail, mining and bulk customers with biodiesel product. North America segment remained steady between the two periods.

Selling, general and administrative expenses were $12.7 million during the first three quarters of 2019, compared to $11.3 million during the first three quarters of 2018.

Operating loss increased to $6.0 million for the first three quarters of 2019, compared to an operating loss of $4.2 million for the first three quarters of 2018.

Interest expense, excluding accretion in connection with preference payments on Series A preferred units in the Aemetis Biogas LLC subsidiary, decreased to $19.1 million during the first three quarters of 2019, compared to interest expense of $19.8 million during the first three quarters of 2018. Additionally, the Aemetis Biogas initiative recognized $1.5 million of accretion in connection with preference payments on its preferred stock.

Net loss was $31.8 million for the first three quarters of 2019, compared to a net loss of $24.0 million during the first three quarters of 2018, due to a second quarter one-time charge of $6.2 million for loss contingency on litigation.

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, 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 biogas and cellulosic ethanol businesses 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 September 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.

(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,  
 
  2019     2018     2019     2018  
Revenues
  $ 57,389     $ 44,635     $ 149,896     $ 132,681  
Cost of goods sold
    53,407       41,967       142,992       125,379  
Gross profit
    3,982       2,668       6,904       7,302  
 
                               
Research and development expense
    37       74       160       191  
Selling, general and admin. expense
    4,529       3,893       12,715       11,289  
Operating loss
    (584 )     (1,299 )     (5,971 )     (4,178 )
 
                               
Interest expense
                               
Interest rate expense
    5,396       4,692       15,572       13,395  
Debt related fees and amort. expense
    946       719       3,565       6,395  
Accretion of preference payments on Series A preferred units
    589             1,509        
Loss contingency on litigation
                6,200        
Other (income) expense
    (289 )     (61 )     (1,001 )     2  
Loss before income taxes
    (7,226 )     (6,649 )     (31,816 )     (23,970 )
 
                               
Income tax expense
                7       6  
 
                               
Net loss
  $ (7,226 )   $ (6,649 )   $ (31,823 )   $ (23,976 )
 
                               
Less: Net loss attributable to non-controlling interest
    (900 )     (792 )     (2,832 )     (2,386 )
Net loss attributable to Aemetis, Inc.
    (6,326 )     (5,857 )     (28,991 )     (21,590 )
 
                               
Net loss per common share
                               
Basic
  $ (0.31 )   $ (0.29 )   $ (1.42 )   $ (1.07 )
Diluted
  $ (0.31 )   $ (0.29 )   $ (1.42 )   $ (1.07 )
 
                               
Weighted average shares outstanding
                               
Basic
    20,554       20,252       20,433       20,220  
Diluted
    20,554       20,252       20,433       20,220  

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

 
  September 30, 2019
(Unaudited)
    December 31, 2018  
Assets
           
Current assets:
           
Cash and cash equivalents
  $ 919     $ 1,188  
Accounts receivable
    5,421       1,096  
Inventories
    3,521       6,129  
Prepaid and other current assets
    2,744       1,898  
Total current assets
    12,605       10,311  
Property, plant and equipment, net
    80,843       78,492  
Other assets
    3,235       3,018  
Total assets
  $ 96,683     $ 91,821  
 
               
Liabilities and stockholders’ deficit
               
Current liabilities:
               
Accounts payable
  $ 17,453     $ 13,500  
Current portion of long term debt
    5,059       2,396  
Short term borrowings
    17,417       14,902  
Mandatorily redeemable Series B stock
    3,124       3,048  
Other current liabilities
    15,429       8,733  
Total current liabilities
    58,482       42,579  
 
               
Total long term liabilities
    184,953       164,824  
 
               
Stockholders’ deficit:
               
Series B convertible preferred stock
    1       1  
Common stock
    21       21  
Additional paid-in capital
    86,708       85,917  
Accumulated deficit
    (222,195 )     (193,204 )
Accumulated other comprehensive loss
    (3,715 )     (3,576 )
Non-controlling interest
    (7,572 )     (4,740 )
Total stockholders’ deficit
    (146,752 )     (115,582 )
Total liabilities and stockholders’ deficit
  $ 96,683     $ 91,821  

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

 
  Three Months Ended     Nine Months Ended  
 
  September 30,     September 30,  
 
  2019     2018     2019     2018  
Net loss attributable to Aemetis, Inc.
  $ (6,326 )   $ (5,857 )   $ (28,991 )   $ (21,590 )
Adjustments:
                               
Interest expense
    5,545       4,708       16,620       17,725  
Loss contingency on litigation
                6,200        
Depreciation expense
    1,103       1,158       3,337       3,457  
Accretion of preference payments on Series A preferred units
    589             1,509        
Share-based compensation
    144       202       630       805  
Intangibles and other
amortization expense
    12       35       36       105  
Income tax expense
                7       6  
Total adjustments
    7,393       6,103       28,339       22,098  
Adjusted EBITDA
  $ 1,067     $ 246     $ (652 )   $ 508  

PRODUCTION AND PRICE PERFORMANCE
(unaudited)

 
  Three months ended
September 30,
   
Nine months ended
September 30,
 
 
  2019     2018     2019     2018  
Ethanol
                       
Gallons sold (in millions)
    15.8       16.7       48.1       49.1  
Average sales price/gallon
  1.74     1.78     1.75     1.79  
WDG
                               
Tons sold (in thousands)
    106.2       108.5       319.9       316.2  
Average sales price/ton
  83     75     82     77  
Delivered cost of corn
                               
Bushels ground (in millions)
    5.6       5.8       16.9       17.1  
Average delivered cost / bushel
  5.53     4.78     5.37     4.91  
Biodiesel
                               
Metric tons sold (in thousands)
    19.3       6.0       37.1       15.2  
Average sales price/metric ton
  882     867     868     893  
Refined glycerin
                               
Metric tons sold (in thousands)
    2.0       1.0       3.9       3.7  
Average sales price/metric ton
  470     852     554     1,010  

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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