8-K
Aemetis, Inc (AMTX)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 13, 2020
Aemetis, Inc.
(Exact name of registrant as specified in its charter)
| Nevada | 001-36475 | 26-1407544 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation) | (Commission File<br>Number) | (IRS Employer Identification<br>No.) |
20400 Stevens Creek Blvd., Suite 700
Cupertino, CA 95014
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(408) 213-0940
(Former name or former address, if changed since last report.)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each<br>class | Trading<br>Symbol(s) | Name of each<br>exchange on which registered |
|---|---|---|
| Common Stock,<br>par value $0.001 | AMTX | NASDAQ Stock<br>Market |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
☐ Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( 240.12b-2 of this chapter)
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On August 13, 2020, Aemetis, Inc. (the “Company”) issued a press release announcing its earnings for the three and six months ended June 30, 2020.
The press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
This Form 8-K and Exhibit 99.1 hereto shall be deemed “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any registration statement of the issuer.
Item 7.01 Regulation FD Material.
On August 13, 2020, the Company issued a press release, posted to its web site at www.aemetis.com, announcing its earnings for the three and six months ended June 30, 2020, a copy of which is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| EXHIBIT NUMBER | DESCRIPTION |
|---|---|
| Exhibit<br>99.1 | Earnings Release dated August 13,<br>2020 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AEMETIS, INC. | ||
|---|---|---|
| August 13,<br>2020 | By: | /s/ Eric A.<br>McAfee |
| Name: | Eric A.<br>McAfee | |
| Title: | Chief<br>Executive Officer<br><br><br>(Principal Executive<br>Officer) |
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amtx_ex991
Exhibit 99.1
| External Investor Relations Contact:<br><br><br>Kirin Smith<br><br><br>PCG Advisory Group<br><br><br>(646) 863-6519<br><br><br>ksmith@pcgadvisory.com | Investor Relations/<br><br><br>Media Contact:<br><br><br>Todd<br>Waltz<br><br><br>(408) 213-0940<br><br><br>investors@aemetis.com |
|---|
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, Calif. – 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/
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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.
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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)
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AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
| Three months<br>ended | Six months<br>ended | |||
|---|---|---|---|---|
| June<br>30, | June<br>30, | |||
| 2020 | 2019 | 2020 | 2019 | |
| Revenues | $47,824 | $50,619 | $87,304 | $92,507 |
| Cost of goods<br>sold | 33,765 | 47,346 | 73,678 | 89,585 |
| Gross<br>profit | 14,059 | 3,273 | 13,626 | 2,922 |
| Research and<br>development expense | 21 | 90 | 138 | 123 |
| Selling, general<br>and admin. expense | 4,049 | 3,945 | 7,985 | 8,186 |
| Operating income<br>(loss) | 9,989 | (762) | 5,503 | (5,387) |
| Interest<br>expense | ||||
| Interest rate<br>expense | 5,574 | 5,190 | 11,160 | 10,176 |
| Amortization<br>expense | 614 | 1,396 | 1,904 | 2,619 |
| Accretion of Series<br>A preferred units | 1,362 | 471 | 2,322 | 920 |
| Loss contingency on<br>litigation | -- | 6,200 | -- | 6,200 |
| Other (income)<br>expense | 303 | (89) | 240 | (712) |
| Income (loss)<br>before income taxes | 2,136 | (13,930) | (10,123) | (24,590) |
| Income tax expense<br>(benefit) | (56) | -- | (263) | 7 |
| Net income<br>(loss) | $2,192 | $(13,930) | $(9,860) | $(24,597) |
| Non-controlling<br>interest | -- | (994) | -- | (1,932) |
| Net income (loss)<br>attributable to Aemetis, Inc. | 2,192 | (12,936) | (9,860) | (22,665) |
| Net income (loss)<br>per common share | ||||
| Basic | $0.11 | $(0.63) | $(0.48) | $(1.11) |
| Diluted | $0.10 | $(0.63) | $(0.48) | $(1.11) |
| Weighted average<br>shares outstanding | ||||
| Basic | 20,683 | 20,375 | 20,668 | 20,371 |
| Diluted | 21,153 | 20,375 | 20,668 | 20,371 |
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AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
| June<br>30,<br><br><br>2020<br><br><br>(Unaudited) | December<br>31,<br><br><br>2019 | |
|---|---|---|
| Assets | ||
| Current<br>assets: | ||
| Cash and cash<br>equivalents | $3,410 | $656 |
| Accounts<br>receivable | 5,202 | 2,036 |
| Inventories | 7,290 | 6,518 |
| Prepaid and other<br>current assets | 2,034 | 3,366 |
| Total current<br>assets | 17,936 | 12,576 |
| Property,<br>plant and equipment, net | 98,525 | 84,226 |
| Right-of-use and<br>other assets | 5,697 | 3,094 |
| Total<br>assets | $122,158 | $99,896 |
| Liabilities<br>and stockholders' deficit | ||
| Current<br>liabilities: | ||
| Accounts<br>payable | $16,367 | $15,968 |
| Current portion of<br>long term debt | 7,569 | 5,792 |
| Short term<br>borrowings | 16,096 | 16,948 |
| Mandatorily<br>redeemable Series B stock | 3,200 | 3,149 |
| Accrued property<br>taxes and other current liabilities | 16,766 | 15,962 |
| Total current<br>liabilities | 59,998 | 57,819 |
| Total long term<br>liabilities | 226,359 | 196,449 |
| Stockholders'<br>deficit: | ||
| Series<br>B convertible preferred stock | 1 | 1 |
| Common<br>stock | 21 | 21 |
| Additional<br>paid-in capital | 87,580 | 86,852 |
| Accumulated<br>deficit | (247,281) | (237,421) |
| Accumulated<br>other comprehensive loss | (4,520) | (3,825) |
| Total<br>stockholders’ deficit | (164,199) | (154,372) |
| Total<br>liabilities and stockholders' deficit | $122,158 | $99,896 |
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RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited, in thousands)
| Three Months<br>Ended June<br>30, | Six<br>Months Ended June 30, | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Net income (loss)<br>attributable to Aemetis, Inc. | $2,192 | $(12,936) | $(9,860) | $(22,665) |
| Adjustments: | ||||
| Interest<br>expense | 6,188 | 5,694 | 13,064 | 11,075 |
| Loss contingency on<br>litigation | -- | 6,200 | -- | 6,200 |
| Depreciation<br>expense | 1,172 | 1,096 | 2,262 | 2,234 |
| Accretion of Series<br>A preferred units | 1,362 | 471 | 2,322 | 920 |
| Share-based<br>compensation | 325 | 196 | 635 | 486 |
| Intangibles and<br>other amortization expense | 12 | 12 | 24 | 24 |
| Income tax expense<br>(benefit) | (56) | -- | (263) | 7 |
| Total<br>adjustments | 9,003 | 13,669 | 18,044 | 20,946 |
| Adjusted<br>EBITDA | $11,195 | $733 | $8,184 | $(1,719) |
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
| Three months<br>ended June 30, | Six months ended<br>June 30, | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Ethanol | ||||
| Gallons sold (in<br>millions) | 13.8 | 16.2 | 29.6 | 32.4 |
| Average sales<br>price/gallon | $2.63 | $1.84 | $2.08 | $1.76 |
| Percentage of<br>nameplate capacity | 100% | 118% | 108% | 118% |
| WDG | ||||
| Tons sold (in<br>thousands) | 90.9 | 106.9 | 198.0 | 213.8 |
| Average sales<br>price/ton | $82 | $81 | $80 | $81 |
| Delivered<br>cost of corn | ||||
| Bushels ground (in<br>millions) | 4.9 | 5.7 | 10.6 | 11.3 |
| Average delivered<br>cost / bushel | $4.46 | $5.37 | $4.84 | $5.29 |
| Biodiesel | ||||
| Metric tons sold<br>(in thousands) | 2.6 | 13.0 | 6.3 | 18.2 |
| Average sales<br>price/metric ton | $835 | $833 | $786 | $830 |
| Percentage of<br>nameplate capacity | 7% | 35% | 8% | 24% |
| Refined<br>glycerin | ||||
| Metric tons sold<br>(in thousands) | 0.4 | 0.6 | 0.6 | 2.0 |
| Average sales<br>price/metric ton | $901 | $560 | $772 | $618 |
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