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):  March 12, 2020
 
Aemetis, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
 
000-51354
 
26-1407544
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification 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 class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.001
AMTX
NASDAQ Stock 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 March 12, 2020, Aemetis, Inc. (the “Company”) issued a press release announcing its earnings for the three and twelve months ended December 31, 2019.
 
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 March 12, 2020, the Company issued a press release, posted to its web site at www.aemetis.com, announcing its earnings for the three and twelve months ended December 31, 2019, 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
 
 
 
 
Earnings Release dated March 12, 2020
 
 
 
2
 
 
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.
 
 
 
By:
/s/ Eric A. McAfee
 
 
Name:
Eric A. McAfee
 
Title:
Chief Executive Officer
March 12, 2020
 
 (Principal Executive Officer)
 
 
 
 
 
3
 
Exhibit 99.1
 
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
 
Company Contact:
                                                                 Todd Waltz
                                                                 Chief Financial Officer
                                                                 (408) 213-0925
                                                                 [email protected]
 
Aemetis Reports 2019 Fourth Quarter and Year-End Results
Achieves 123% year over year revenue growth at India plant
 
CUPERTINO, Calif. – March 12, 2020 – 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, 2019.
 
“During 2019, our revenues increased 18% to $202 million as we set a sales volume record at our India plant of 47.0 thousand metric tons resulting in a revenue increase from $21.5 million during 2018 to $47.9 million in revenues during 2019 while achieving consistent operational and revenue performance at our Keyes plant,” said Eric McAfee, Chairman and CEO of Aemetis. “Progress continued on the carbon reduction and revenue expansion projects to drive significant revenue increases and positive earnings, including completing the first phase of a $50+ million renewable natural gas project to collect and upgrade biogas from about a dozen dairies near the Keyes plant, completion of the carbon dioxide capture system at our Keyes plant, and solid progress toward commencing construction of our ultra-low carbon content California waste wood ethanol biorefinery. We are excited with the progress and traction we are achieving and look forward to announcing the completion of important milestones throughout 2020.”
 
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/2211/33520
 
For details on the call, please visit http://www.aemetis.com/investors/conference-calls/
 
 
1
 
 
Financial Results for the Three Months Ended December 31, 2019
 
Revenues were $52.1 million for the fourth quarter of 2019, compared to $38.8 million for the fourth quarter of 2018.
 
Gross profit for the three months ended December 31, 2019 was $5.8 million, compared to a gross loss of $1.9 million during the same period in 2018. The gross profit improvement was attributable to increased sales volumes at the India plant along with prices for ethanol increasing from $1.57 per gallon during the three months ended December 31, 2018 to $1.82 per gallon during the three months ended December 31, 2019 in a market where the cost of delivered corn rose slightly from $4.89 to $5.02 during the same respective periods.
 
Selling, general and administrative expenses were $4.7 million during the fourth quarter of 2019, compared to $4.8 million during the fourth quarter of 2018.
 
Operating profit was $1.0 million for the fourth quarter of 2019, compared to an operating loss of $6.7 million during the fourth quarter of 2018.
 
Profits at the India plant resulted in an income tax expense of $1.1 million during the fourth quarter of 2019 compared to negligible income tax expense during the fourth quarter of 2018.
 
Net loss attributable to Aemetis was $6.7 million for the fourth quarter of 2019 with an additional $0.9 million attributable to non-controlling interests for a total net loss of $7.7 million, compared to a net loss attributable to Aemetis of $11.4 million for the fourth quarter of 2018 with an additional $0.9 million attributable to non-controlling interests for a total net loss of $12.3 million.
 
Cash at the end of the fourth quarter of 2019 was $656 thousand, compared to $1.2 million at the end of the fourth quarter of 2018.
 
Financial Results for the Twelve Months Ended December 31, 2019
 
Revenues increased 18% to $202 million for the twelve months ended December 31, 2019, compared to $171.5 million for the same period in 2018. The increase in revenue was primarily attributable to increases in the production and sales of biodiesel and glycerin in India.
 
Gross profit for the twelve months ended December 31, 2019 increased significantly to $12.7 million, compared to $5.4 million during the same period in 2018. Gross profit increase was attributable to higher quantity and margin from biodiesel sales in India.
 
Selling, general and administrative expenses were $17.4 million during the twelve months ended December 31, 2019, compared to $16.1 million during the same period in 2018. The increase in selling, general and administrative expenses was primarily attributable to operational support fees and professional fees that were partially offset by grant receipts for expense reimbursement.
 
Operating loss was $4.9 million for the twelve months ended December 31, 2019, compared to an operating loss of $10.9 million for the same period in 2018.
 
 
2
 
 
Profits at the India plant resulted in an income tax expense of $1.1 million during 2019 compared to negligible income tax expense during the year of 2018.
 
Net loss attributable to Aemetis was $35.7 million for the twelve months ended December 31, 2019 with an additional $3.8 million attributable to non-controlling interests for a total net loss of $39.5 million, compared to a net loss attributable to Aemetis of $33.0 million during the same period in 2018 with an additional $3.3 million attributable to non-controlling interests for a total net loss of $36.3 million.
 
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 is building a biogas digester, pipeline and gas cleanup project to convert dairy waste gas into renewable natural gas, and is developing a plant to convert waste orchard wood into cellulosic ethanol. 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.
 
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 regarding development of our waste wood ethanol and biogas 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, 2019 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
(In thousands, except per share data)
 
 
 
Three months ended
 
 
Year ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Revenues
 $52,102 
 $38,845 
 $201,998 
 $171,526 
Cost of goods sold
  46,308 
  40,742 
  189,300 
  166,121 
Gross profit (loss)
  5,794 
  (1,897)
  12,698 
  5,405 
 
    
    
    
    
Research and development expenses
  45 
  55 
  205 
  246 
Selling, general and administrative expenses
  4,709 
  4,796 
  17,424 
  16,085 
Operating profit (loss)
  1,040 
  (6,748)
  (4,931)
  (10,926)
 
    
    
    
    
Interest rate expense
  5,517 
  4,775 
  21,089 
  18,170 
Amortization expense
  1,101 
  1,125 
  4,666 
  7,520 
Accretion of Series A preferred
  748 
  44 
  2,257 
  44 
Loss on impairment of intangibles
  - 
  865 
  - 
  865 
Loss contingency on litigation
  - 
  - 
  6,200 
  - 
Other expense/(income)
  204 
  (1,247)
  (797)
  (1,245)
Loss before income taxes
  (6,530)
  (12,310)
  (38,346)
  (36,280)
 
    
    
    
    
Income tax expense
  1,124 
  1 
  1,131 
  7 
 
    
    
    
    
Net loss
 $(7,654)
 $(12,311)
 $(39,477)
 $(36,287)
Non controlling interest
  (929)
  (885)
  (3,761)
  (3,271)
Net loss attributable to Aemetis
 $(6,725)
 $(11,426)
 $(35,716)
 $(33,016)
 
    
    
    
    
Net loss per common share
    
    
    
    
Basic
 $(0.33)
 $(0.56)
 $(1.75)
 $(1.63)
Diluted
 $(0.33)
 $(0.56)
 $(1.75)
 $(1.63)
 
    
    
    
    
Weighted average shares outstanding
    
    
    
    
Basic
  20,570 
  20,346 
  20,467 
  20,252 
Diluted
  20,570 
  20,346 
  20,467 
  20,252 
 
 
4
 
 
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
 
 
 
Year ended December 31,
 
 
 
2019
 
 
2018
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $656 
 $1,188 
Accounts receivable
  2,036 
  1,096 
Inventories
  6,518 
  6,129 
Prepaid and other current assets
  3,366 
  1,898 
Total current assets
  12,576 
  10,311 
 
    
    
Property, plant and equipment, net
  84,226 
  78,492 
Other assets
  3,094 
  3,018 
Total assets
 $99,896 
 $91,821 
 
    
    
Liabilities and stockholders' deficit
    
    
Current liabilities:
    
    
Accounts payable
 $15,968 
 $13,500 
Current portion of long term debt
  5,792 
  2,396 
Short term borrowings
  16,948 
  14,902 
Mandatorily redeemable Series B convertible preferred stock
  3,149 
  3,048 
Accrued property taxes and other liabilities
  15,962 
  8,733 
Total current liabilities
  57,819 
  42,579 
 
    
    
Total long term liabilities
  196,449 
  164,824 
 
    
    
Stockholders' deficit:
    
    
Series B convertible preferred stock
  1 
  1 
Common stock
  21 
  20 
Additional paid-in capital
  86,852 
  85,917 
Accumulated deficit
  (237,421)
  (193,204)
Accumulated other comprehensive loss
  (3,825)
  (3,576)
Total stockholders' deficit attributable to Aemetis, Inc.
  (154,372)
  (110,842)
  Non-controlling interests
  - 
  (4,740)
Total liabilities and stockholders' deficit
 $99,896 
 $91,821 
 
 
5
 
 
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME / (LOSS)
(In thousands)
 
 
 
Three months ended
December 31,
 
 
Year ended
December 31,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Net loss attributable to Aemetis, Inc.
 $(6,725)
 $(11,426)
 $(35,716)
 $(33,016)
Adjustments:
    
    
    
    
Interest expense
  5,800 
  4,944 
  22,420 
  22,135 
Depreciation expense
  1,097 
  1,123 
  4,434 
  4,580 
Accretion of Series A preferred
  748 
  - 
  2,257 
  - 
Share-based-compensation
  144 
  198 
  774 
  1,003 
Intangibles and other expense
  12 
  900 
  48 
  1,005 
Loss contingency on litigation
  - 
  - 
  6,200 
  - 
Income tax expense
  1,124 
  1 
  1,131 
  7 
Total adjustments
  8,925 
  7,166 
  37,264 
  28,730 
Adjusted EBITDA
 $2,200 
 $(4,260)
 $1,548 
 $(4,286)
 
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
 
 
 
Three months ended
 
 
Year ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Ethanol
 
 
 
 
 
 
 
 
 
 
 
 
Gallons Sold (in millions)
  16.6 
  16.5 
  64.7 
  65.6 
Average Sales Price/Gallon
 $1.82 
 $1.57 
 $1.77 
 $1.74 
Percent of nameplate capacity
  120%
  120%
  118%
  119%
WDG
    
    
    
    
Tons Sold (in thousands)
  108 
  108 
  428 
  424 
Average Sales Price/Ton
 $78 
 $74 
 $81 
 $76 
Delivered Cost of Corn
    
    
    
    
Bushels ground (in millions)
  5.8 
  5.8 
  22.7 
  22.9 
Average delivered cost / bushel
 $5.02 
 $4.89 
 $5.28 
 $4.91 
Biodiesel
    
    
    
    
Metric tons sold (in thousands)
  11.9 
  4.3 
  47.0 
  19.8 
Average Sales Price/Metric ton
 $861 
 $811 
 $904 
 $857 
Percent of Nameplate Capacity
  32%
  11%
  31%
  13% 
Refined Glycerin
    
    
    
    
Metric tons sold (in thousands)
  1.2 
  1.0 
  5.2 
  4.7 
Average Sales Price/Metric ton
 $508 
 $692 
 $543 
 $941 
 
 
6