Aemetis, Inc. Reports Second Quarter 2020 Financial Results
Aemetis, Inc. (NASDAQ:AMTX) reported a net income of $2.2 million and earnings of $0.10 per share for Q2 2020, driven by a surge in high-grade alcohol sales for hand sanitizer due to COVID-19. Revenues for the quarter were $47.8 million, slightly down from $50.6 million in Q2 2019. Gross profit increased significantly to $14.1 million from $3.3 million year-over-year. Aemetis plans to produce USP grade alcohol by Q1 2021 and is expanding its marketing channels for sanitizer products.
- Net income of $2.2 million for Q2 2020, up from a net loss of $13.9 million in Q2 2019.
- Gross profit increased to $14.1 million in Q2 2020, compared to $3.3 million in Q2 2019.
- Adjusted EBITDA of $11.2 million for Q2 2020, significantly higher than in prior year.
- Revenues decreased to $47.8 million in Q2 2020 from $50.6 million in Q2 2019.
- Net loss of $9.9 million for the first half of 2020, although improved from $24.6 million in 2019.
Earnings of
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
Gross profit for the second quarter of 2020 rose to
Selling, general and administrative expenses were
Operating income increased to
Interest expense during the second quarter of 2020 was
Net income was
Adjusted EBITDA increased to
Cash at the end of the second quarter of 2020 increased to
Financial Results for the Six Months Ended June 30, 2020
Revenues were
Selling, general and administrative expenses were
Operating income increased to
Interest expense was
Net loss for the first half of 2020 was
Adjusted EBITDA was
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.
View source version on accesswire.com:
https://www.accesswire.com/601527/Aemetis-Inc-Reports-Second-Quarter-2020-Financial-Results
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