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 Ended

June 30,

Six Months Ended

June 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 other

amortization 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.

ReleaseID: 601527