Exhibit 99.1
|
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
|
|
Investor Relations/
Media Contact:
Todd
Waltz
(408) 213-0940
|
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/
1
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.
2
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)
3
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
|
4
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
|
5
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
|
6