EX-99.1 2 amtx_ex991.htm EARNINGS RELEASE Blueprint
 
 Exhibit 99.1
External Investor Relations Contact:
Christine Petraglia
PCG Advisory Group
(646) 731-9817
christine@pcgadvisory.com
 
 
Company Investor Relations & Media Contact:
Satya Chillara
(408) 213-0939
schillara@aemetis.com
 
Aemetis Reports Fourth Quarter and Year-End 2016 Results
 
CUPERTINO, Calif. – March 7, 2017 – 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, 2016.
 
Financial Highlights for 2016
 
●
Revenues of $143 million during 2016
●
Net loss improved by $11.5 million to $15.6 million during 2016
●
Adjusted EBITDA of $5.1 million during 2016 improved by $8.2 million from 2015
●
$10.5 million of EB-5 funding released to the company from escrow during 2016
 
“During 2016, our financial and operational performance improved significantly, driven by higher ethanol prices and lower corn costs. This improvement allowed us to reduce our net loss to $15.6 million and achieve an Adjusted EBITDA of $5.1 million during the twelve months of 2016,” said Eric McAfee, Chairman and CEO of Aemetis. “Going forward, we expect that continued enforcement of the Renewable Fuel Standard will create a healthier supply and demand balance to support expanded investment in the biofuels industry. Growing ethanol exports have also had a positive effect on the market. As part of our Phase I EB-5 offering, 70 foreign investors funded $35 million at a 3% interest rate. In September 2016, we launched a Phase II $50 million EB-5 offering.  The additional EB-5 funding will allow us to significantly reduce interest costs and to fund projects in advanced biofuels and biochemicals that are expected to increase revenues, margins and earnings,” added McAfee.
 
Today, Aemetis will host an earnings review call at 11:00 am Pacific time (PT).
 
Live Participant Dial In (Toll Free): 866-682-6100
Live Participant Dial In (International): 862-255-5401
 
 
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For details on the call, visit: http://www.aemetis.com/investors/conference-calls/.
 
Financial Results for the Three Months Ended December 31, 2016
 
Revenues were $37.4 million for the fourth quarter of 2016, compared to $35.3 million for the fourth quarter of 2015. The increase in revenue was primarily attributable to increases in ethanol pricing and volumes. Gross margin for the fourth quarter of 2016 was $3.9 million, a major improvement over the gross margin of $1.4 million during the fourth quarter of 2015. The gross margin improvement was primarily driven by a 9% increase in ethanol pricing.
 
Selling, general and administrative expenses were $2.9 million in the fourth quarter of 2016, compared to $2.8 million in the fourth quarter of 2015.
 
Operating income was $936 thousand for the fourth quarter of 2016, compared to an operating loss of $1.5 million for fourth quarter of 2015.
 
Net loss was $1.4 million for the fourth quarter of 2016, compared to a net loss of $6.5 million for the fourth quarter of 2015.
 
During the fourth quarter, we repaid the State Bank of India (SBI) debt related to our India biodiesel plant in full, and received $2 million of fee and interest waivers from SBI related to the full repayment.
 
We experienced good operational results from our North America ethanol business with gross margins at 11.1% of segment revenues. Our largest contributor to expenses is interest expense of $4.3 million. We continue our efforts to lower our cost of capital through a combination of debt refinancings, including escrow releases from the EB-5 program.
 
The fundamental health and improvement in our operating North America business is reflected in Adjusted EBITDA for the fourth quarter of 2016, which increased $2.2 million compared to Adjusted EBITDA for the same period in 2015.
 
Cash at the end of the fourth quarter of 2016 was $1.5 million, compared to $283 thousand at the end of the fourth quarter of 2015.
 
Financial Results for the Twelve Months Ended December 31, 2016
 
Revenues were $143.2 million for the twelve months ended December 31, 2016, compared to $146.6 million for the same period in 2015. The decrease in revenue was primarily attributable to decreases in biodiesel volumes and wet distillers grains pricing in the twelve months ended December 31, 2016 compared to the same period in 2015.
 
Gross profit for the twelve months ended December 31, 2016 was $11.6 million, a significant increase from $4.2 million during the same period in 2015. Gross profit growth was attributable to higher ethanol prices and lower corn prices, particularly feedstock in North America, which decreased by 9% to $4.58 per bushel for the year ended December 31, 2016 as compared to 2015.
 
 
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Selling, general and administrative expenses were $12 million during the twelve months ended December 31, 2016, compared to $12.4 million during the same period in 2015. The decrease in selling, general and administrative expenses was primarily attributable to lower professional services fees compared to the same period of the prior year.
 
Operating loss decreased to $781 thousand for the twelve months ended December 31, 2016, compared to an operating loss of $8.6 million for the same period in 2015.
 
Net loss of $15.6 million for the twelve months ended December 31, 2016 decreased in comparison to a net loss of $27.1 million during the same period in 2015.
 
The fundamental improvement in our operating North America business is reflected in Adjusted EBITDA for the twelve months ended December 31, 2016, which was $5.1 million, an approximately $8 million improvement compared to Adjusted EBITDA for the same period in 2015.
 
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 second-generation ethanol and biodiesel plants into advanced biorefineries. Founded in 2006, Aemetis owns and operates a 60 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, the US and Europe. Aemetis operates a research and development laboratory at the Maryland Biotech Center, and 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.
 
 
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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, the impact of the EPA’s continued enforcement of the Renewable Fuel Standard on the biofuel industry, the timing and consummation of our EB-5 program, the expected effect of debt repayment on our interest expense and net income, and our expectations for growth in the overall ethanol market. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “targets,” “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 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, completion of our acquisition of Edeniq, 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, 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)
 
 
 
 
 
 
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AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
 
 
Three months ended
 
 
Year ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Revenues
 $37,396 
 $35,346 
 $143,158 
 $146,649 
Cost of goods sold
  33,493 
  33,902 
  131,559 
  142,450 
Gross profit
  3,903 
  1,444 
  11,599 
  4,199 
 
    
    
    
    
Research and development expenses
  79 
  117 
  369 
  447 
Selling, general and administrative expenses
  2,888 
  2,805 
  12,011 
  12,361 
Operating income/(loss)
  936 
  (1,478)
  (781)
  (8,609)
 
    
    
    
    
Interest rate expense
  2,814 
  2,523 
  11,493 
  10,164 
Amortization expense
  1,454 
  1,329 
  5,723 
  6,715 
Loss/(gain) on debt extinguishment
  (2,033)
  - 
  (2,033)
  330 
Loss on impairment of goodwill and intangibles
  - 
  1,044
 
  - 
  1,044
 
Other expense/(income)
  146 
  79 
  (334)
  270 
Income/(loss) before income taxes
  (1,445)
  (6,453)
  (15,630)
  (27,132)
 
    
    
    
    
Income tax expense
  - 
  - 
  (6)
  (6)
 
    
    
    
    
Net income/(loss)
 $(1,445)
 $(6,453)
 $(15,636)
 $(27,138)
 
    
    
    
    
Net Income/(loss) per common share
    
    
    
    
Basic
 $(0.07)
 $(0.33)
 $(0.79)
 $(1.37)
Diluted
 $(0.07)
 $(0.33)
 $(0.79)
 $(1.37)
 
    
    
    
    
Weighted average shares outstanding
    
    
    
    
Basic
  19,858 
  19,598 
  19,771 
  19,823 
Diluted
  19,858 
  19,598 
  19,771 
  19,823 
 
 
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AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
 
 
 
Year ended December 31,
 
 
 
2016
 
 
2015
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $1,486 
 $283 
Accounts receivable
  1,557 
  1,166 
Inventories
  3,241 
  4,804 
Prepaid and other expenses
  761 
  1,749 
Total current assets
  7,045 
  8,002 
 
    
    
Property, plant and equipment, net
  66,370 
  70,718 
Goodwill, intangibles and other assets
  4,395 
  4,421 
Total assets
 $77,810 
 $83,141 
 
    
    
Liabilities and stockholders' deficit
    
    
Current liabilities:
    
    
Accounts payable
 $7,842 
 $10,183 
Current portion of long term debt, notes and working capital
  11,409 
  11,947 
Mandatorily redeemable Series B convertible preferred stock
  2,844 
  2,742 
Other current liabilities
  5,121 
  4,425 
Total current liabilities
  27,216 
  29,297 
 
    
    
Total long term liabilities
  100,407 
  89,138 
 
    
    
Stockholders' deficit:
    
    
Series B convertible preferred stock
  1 
  1 
Common stock
  20 
  20 
Additional paid-in capital
  83,441 
  82,115 
Accumulated deficit
  (129,887)
  (114,251)
Accumulated other comprehensive loss
  (3,388)
  (3,179)
Total stockholders' deficit
  (49,813)
  (35,294)
 
    
    
Total liabilities and stockholders' deficit
 $77,810 
 $83,141 
 
 
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RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/ (LOSS)
(In thousands)
 
 
 
Three months ended December 31,
 
 
Year ended December 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Net income/(loss)
 $(1,445)
 $(6,453)
 $(15,636)
 $(27,138)
Adjustments:
    
    
    
    
Interest expense
  2,814 
  2,523 
  11,493 
  10,164 
Amortization expense
  1,454 
  1,329 
  5,723 
  6,715 
Loss on debt extinguishment
  (2,033)
  - 
  (2,033)
  330 
Income tax expense
  - 
  - 
  6 
  6 
Intangibles and other amortization expense
  31 
  33 
  126 
  129 
Loss on impairment of intangibles
  - 
  1,044 
  - 
  1,044 
Depreciation expense
  1,147 
  1,170 
  4,670 
  4,730 
Share-based-compensation
  174 
  244 
  747 
  938 
Total adjustments
  3,587 
  6,343 
  20,732 
  24,056 
Adjusted EBITDA
 $2,142 
 $(110)
 $5,096 
 $(3,082)
 
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
 
 
 
Three months ended
 
 
Year ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Ethanol
 
 
 
 
 
 
 
 
 
 
 
 
Gallons Sold (in 000s)
  14,595 
  13,187 
  55,641 
  55,787 
Average Sales Price/Gallon
 $1.90 
 $1.74 
 $1.78 
 $1.74 
WDG
    
    
    
    
Tons Sold (in 000s)
  95 
  84 
  372 
  360 
Average Sales Price/Ton
 $65 
 $71 
 $71 
 $80 
Biodiesel
    
    
    
    
Metric tons sold
  2,142 
  7,442 
  16,080 
  19,523 
Average Sales Price/Metric ton
 $778 
 $707 
 $739 
 $724 
Refined Glycerin
    
    
    
    
Metric tons sold
  1,770 
  693 
  4,413 
  4,653 
Average Sales Price/Metric ton
 $567 
 $671 
 $582 
 $668 
 
 
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