Aemetis, Inc. Reports Third Quarter 2021 Financial Results
Aemetis (NASDAQ:AMTX) reported a 50.4% increase in North America revenues to $49.8 million in Q3 2021, driven by rising demand and pricing in the liquid transportation fuel market. Capital expenditures for ultra-low carbon projects reached $18.8 million. However, the company faced a gross loss of $4.8 million, largely due to a $5.3 million reserve for California emissions compliance. The net loss expanded to $17.6 million from $12.2 million year-over-year. Overall revenues for the first nine months of 2021 increased to $147.6 million, yet gross loss was reported at $4.7 million.
- North America revenues increased 50.4% to $49.8 million in Q3 2021.
- Capital expenditures of $18.8 million for ultra-low carbon projects.
- Cash increased to $6.4 million at the end of Q3 2021.
- Gross loss of $4.8 million in Q3 2021, compared to gross income of $771 thousand in Q3 2020.
- Net loss widened to $17.6 million in Q3 2021 from $12.2 million in Q3 2020.
- Operating loss of $21.0 million for the first three quarters of 2021, compared to operating income of $1.7 million in 2020.
CUPERTINO, CA / ACCESSWIRE / November 11, 2021 / Aemetis, Inc. (NASDAQ:AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the three and nine months ended September 30, 2021.
"Revenues from North America sales in the third quarter of 2021 increased
"We are pleased with the milestones accomplished during the third quarter of 2021, including commencing construction of the next phase of dairy digesters, building the biogas cleanup facility and working on the utility gas pipeline interconnect that was mechanically completed today," said Eric McAfee, Chairman and CEO of Aemetis. "The Aemetis Biogas RNG project received a permit from Stanislaus County to construct approximately 20 miles of pipeline using County roads, as well as selecting the contractor who is now installing the biogas pipeline. We also received a drilling study from Baker Hughes confirming the feasibility of injecting CO2 emissions for sequestration in the unique shale formations that extend under our two biofuels plant sites in California. We invite investors to review the updated Aemetis Corporate Presentation and the Aemetis Investor Presentation on the Aemetis home page prior to the earnings call."
Today, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).
Live Participant Dial In (Toll Free): +1-877-545-0523 Access Code 492308
Live Participant Dial In (International): +1-973-528-0016 Access Code 492308
Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/43472
For details on the call, please visit http://www.aemetis.com/investors/conference-calls/
Financial Results for the Three Months Ended September 30, 2021
Revenues during the third quarter of 2021 were
Gross loss for the third quarter of 2021 was
Selling, general and administrative expenses were
Operating loss was
Interest expense during the third quarter of 2021 was
Net loss was
Cash at the end of the third quarter of 2021 increased to
Financial Results for the Nine Months Ended September 30, 2021
Revenues were
Gross loss for the first three quarters of 2021 was
Selling, general and administrative expenses were
Operating loss was
Interest expense was
Net loss for the first three quarters of 2021 was
About Aemetis
Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today's infrastructure.
Aemetis Carbon Zero products include zero-carbon fuels that can "drop-in" to be used in airplanes, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle.
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel, and biochemicals company focused on the acquisition, development, and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas (RNG). Aemetis owns and operates a 65 million gallon per year ethanol production facility in California's Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India, producing high-quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel biorefineries in California from renewable oils and orchard and forest waste. Aemetis holds a portfolio of patents and exclusive technology licenses to produce 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, gain on extinguishment, income tax expense, intangible and other amortization expense, accretion and other expenses of Series A preferred units, depreciation expense, 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. Adjusted 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, statements relating to our five-year growth plan, expansion of our biogas digestor network, development of our carbon sequestration projects 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, 2020, our Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and September 30, 2021 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 September 30, | Nine months ended September 30, | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Revenues | $ | 49,895 | $ | 40,923 | $ | 147,586 | $ | 128,227 | |||||||||
Cost of goods sold | 54,680 | 40,152 | 152,333 | 113,830 | |||||||||||||
Gross profit (loss) | (4,785 | ) | 771 | (4,747 | ) | 14,397 | |||||||||||
Research and development expense | 22 | 37 | 66 | 175 | |||||||||||||
Selling, general and admin. expense | 5,087 | 4,563 | 16,222 | 12,548 | |||||||||||||
Operating income (loss) | (9,894 | ) | (3,829 | ) | (21,035 | ) | 1,674 | ||||||||||
Interest expense | |||||||||||||||||
Interest rate expense | 4,408 | 5,796 | 14,902 | 16,956 | |||||||||||||
Debt related fees and Amortization expense | 1,140 | 674 | 3,045 | 2,578 | |||||||||||||
Accretion and other expenses of Series A preferred units | 2,185 | 1,765 | 7,928 | 4,087 | |||||||||||||
Gain on debt extinguishment | - | -- | (1,134 | ) | -- | ||||||||||||
Other expense (income) | (30 | ) | 153 | 483 | 393 | ||||||||||||
Loss before income taxes | (17,597 | ) | (12,217 | ) | (46,259 | ) | (22,340 | ) | |||||||||
Income tax expense (benefit) | -- | -- | 7 | (263 | ) | ||||||||||||
Net loss | $ | (17,597 | ) | $ | (12,217 | ) | $ | (46,266 | ) | $ | (22,077 | ) | |||||
Net loss per common share | |||||||||||||||||
Basic | $ | (0.55 | ) | $ | (0.59 | ) | $ | (1.55 | ) | $ | (1.06 | ) | |||||
Diluted | $ | (0.55 | ) | $ | (0.59 | ) | $ | (1.55 | ) | $ | (1.06 | ) | |||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 31,857 | 20,861 | 29,818 | 20,732 | |||||||||||||
Diluted | 31,857 | 20,861 | 29,818 | 20,732 | |||||||||||||
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
September 30, 2021 (Unaudited) | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,389 | $ | 592 | ||||
Accounts receivable | 1,621 | 1,821 | ||||||
Inventories | 4,862 | 3,969 | ||||||
Prepaid and other current assets | 4,141 | 2,301 | ||||||
Total current assets | 17,013 | 8,683 | ||||||
Property, plant and equipment, net | 124,915 | 109,880 | ||||||
Right-of-use and other assets | 5,051 | 6,576 | ||||||
Total assets | $ | 146,979 | $ | 125,139 | ||||
Liabilities and stockholders' deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 13,887 | $ | 20,739 | ||||
Current portion of long term debt | 9,962 | 44,974 | ||||||
Short term borrowings | 13,901 | 14,541 | ||||||
Mandatorily redeemable Series B stock | 3,328 | 3,252 | ||||||
Accrued property taxes | 6,801 | 5,674 | ||||||
Accrued contingent litigation fees | 6,200 | 6,200 | ||||||
Current portion of Series A preferred units | 8,660 | 2,015 | ||||||
Other liabilities | 11,866 | 4,840 | ||||||
Total current liabilities | 74,605 | 102,235 | ||||||
Total long term liabilities | 204,467 | 207,648 | ||||||
Stockholders' deficit: | ||||||||
Series B convertible preferred stock | 1 | 1 | ||||||
Common stock | 33 | 23 | ||||||
Additional paid-in capital | 192,520 | 93,426 | ||||||
Accumulated deficit | (320,346 | ) | (274,080 | ) | ||||
Accumulated other comprehensive loss | (4,301 | ) | (4,114 | ) | ||||
Total stockholders' deficit | (132,093 | ) | (184,744 | ) | ||||
Total liabilities and stockholders' deficit | $ | 146,979 | $ | 125,139 | ||||
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited, in thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Net loss | $ | (17,597 | ) | $ | (12,217 | ) | $ | (46,266 | ) | $ | (22,077 | ) | |||||
Adjustments: | |||||||||||||||||
Interest expense | 5,548 | 6,470 | 17,947 | 19,534 | |||||||||||||
Depreciation expense | 1,342 | 1,253 | 4,106 | 3,515 | |||||||||||||
Accretion and other expenses of Series A preferred units | 2,185 | 1,765 | 7,928 | 4,087 | |||||||||||||
Share-based compensation | 285 | 191 | 1,401 | 826 | |||||||||||||
Intangibles and other amortization expense | 11 | 12 | 35 | 36 | |||||||||||||
Gain on debt extinguishment | -- | -- | (1,134 | ) | -- | ||||||||||||
Income tax expense (benefit) | -- | -- | 7 | (263 | ) | ||||||||||||
Total adjustments | 9,371 | 9,691 | 30,290 | 27,735 | |||||||||||||
Adjusted EBITDA | $ | (8,226 | ) | $ | (2,526 | ) | $ | (15,976 | ) | $ | 5,658 | ||||||
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
Three months ended September 30, | Nine months ended September 30 | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Ethanol and high grade alcohol | ||||||||||||||||
Gallons sold (in millions) | 13.8 | 15.0 | 44.6 | 40.5 | ||||||||||||
Average sales price/gallon | $ | 2.84 | $ | 1.59 | $ | 2.49 | $ | 1.55 | ||||||||
Percentage of nameplate capacity | 100 | % | 111 | % | 108 | % | 109 | % | ||||||||
WDG | ||||||||||||||||
Tons sold (in thousands) | 93.2 | 94.2 | 298.6 | 292.2 | ||||||||||||
Average sales price/ton | $ | 96 | $ | 76 | $ | 102 | $ | 79 | ||||||||
Delivered cost of corn | ||||||||||||||||
Bushels ground (in millions) | 4.8 | 5.2 | 15.6 | 15.8 | ||||||||||||
Average delivered cost / bushel | $ | 7.99 | $ | 4.92 | $ | 7.62 | $ | 4.87 | ||||||||
Biodiesel | ||||||||||||||||
Metric tons sold (in thousands) | 0.0 | 8.1 | 0.5 | 14.3 | ||||||||||||
Average sales price/metric ton | $ | 0 | $ | 901 | $ | 1,024 | $ | 855 | ||||||||
Percentage of nameplate capacity | 0 | % | 22 | % | 1 | % | 7 | % | ||||||||
Refined glycerin | ||||||||||||||||
Metric tons sold (in thousands) | 0.0 | 0.6 | 0.1 | 1.1 | ||||||||||||
Average sales price/metric ton | $ | 0 | $ | 807 | $ | 956 | $ | 817 | ||||||||
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
ksmith@pcgadvisory.com
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/672213/Aemetis-Inc-Reports-Third-Quarter-2021-Financial-Results
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