Aemetis Reports 2023 Fourth Quarter and Year-End Results
- Aemetis achieved a substantial increase in annual sales from the India biodiesel segment, reaching $77.2 million, representing a 175% growth year-over-year.
- The company's total revenue for 2023 amounted to $186.7 million, supported by revenue growth from the biodiesel and renewable natural gas segments.
- Key financial highlights include a Q4 2023 revenue of $70.8 million, repayment of $50.2 million of debt, positive cash flow of $32.7 million, and progress in several projects outlined in the Five Year Plan.
- Aemetis also successfully commissioned production capacity by 300% in the Aemetis Biogas segment and closed $50 million of new credit facilities related to USDA guaranteed loans.
- None.
Insights
The reported 175% increase in annual sales for Aemetis' India biodiesel segment is a significant development, reflecting a robust expansion in a market that is increasingly conscious of renewable energy sources. The growth in revenue to $77.2 million from this segment is a strong indicator of the company's operational success and its ability to capitalize on the rising demand for cleaner fuels. Furthermore, the $5.5 million revenue from the California Renewable Natural Gas segment suggests a diversification of income streams, which is crucial for stability in volatile markets.
However, investors should consider the extended maintenance and upgrade cycle at the Keyes plant, which resulted in a revenue decrease. While this may affect short-term profitability, the long-term benefits of increased efficiency and reduced carbon intensity could lead to improved margins and a stronger competitive position. The capital expenditures of $33 million for 2023, as part of the company's Five Year Plan, indicate a commitment to future growth but also imply a substantial reinvestment of earnings that might affect dividend payments or require additional financing.
Lastly, the repayment of debt and the extension of loan repayment terms, combined with the sale of IRA investment tax credits, suggest a strategic financial restructuring. These moves could improve the company's balance sheet and reduce interest expenses, potentially enhancing shareholder value over time.
The biodiesel and renewable natural gas industries are experiencing a surge in demand, driven by global efforts to reduce carbon emissions. Aemetis' significant sales increase in the India biodiesel segment indicates a strong foothold in a market with considerable growth potential, especially considering India's large population and increasing industrial activity. Moreover, the company's progress in the sustainable aviation fuel (SAF) and renewable diesel plant at Riverbank Industrial Complex, coupled with the 300% increase in Aemetis Biogas commissioned production capacity, positions it well to meet the expected rise in demand for these fuels.
Strategic environmental permits, such as the Use Permit and CEQA and the Authority to Construct air permits, are crucial for the timely execution of expansion projects. These permits also reflect the company's compliance with regulatory standards, which is increasingly important to environmentally conscious investors. As the company expands its biogas pipeline, it is set to benefit from economies of scale, potentially leading to more competitive pricing and increased market share.
The energy sector is in a transition phase, with renewable energy sources like biodiesel and renewable natural gas gaining prominence. Aemetis' investment in carbon intensity reduction and production expansion is timely and aligns with global trends towards sustainability. The investment tax credits from the IRA and the new credit facilities, including USDA guaranteed loans, provide financial support for these initiatives, reducing the risk associated with such capital-intensive projects.
It is important to note that while the company is expanding its production capacity, the actual impact on the stock market will depend on the execution of these projects and the ability to maintain or increase profit margins. The commissioning of new biogas infrastructure is a positive step, but the full financial benefits will only materialize once the projects are fully operational and integrated into the existing energy market.
Investors should be aware of the potential risks associated with the energy sector, such as fluctuating commodity prices and regulatory changes. However, Aemetis' strategic investments and debt management suggest a proactive approach to navigating these challenges.
India biodiesel segment reports
CUPERTINO, CA, March 07, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on low and negative carbon intensity products, today announced its financial results for the fourth quarter and twelve months ended December 31, 2023.
“Revenues were
During 2023, Aemetis achieved key milestones, including:
| ● | Repaid |
| ● | Adjusted EBITDA plus IRA investment tax credit sales generated |
| ● | Received the key Use Permit and CEQA last year and recently received the Authority to Construct air permits to build a 90 million gallon per year sustainable aviation fuel and renewable diesel plant at Riverbank Industrial Complex; |
| ● | Extended repayment on |
| ● | Received |
| ● | Closed |
| ● | Increased Aemetis Biogas commissioned production capacity by |
| ● | Commissioned 36 miles of biogas pipeline, the biogas-to-RNG production facility, and the utility gas interconnection unit; |
| ● | Received approval of the CEQA environmental review to extend the biogas pipeline to a total of 60 miles allowing for collection of biogas from an aggregate of about 40 dairies; |
| ● | Received approval for the generation of D3 RINs by our Renewable Natural Gas business and completed the first sales of these D3 RINs; |
| ● | Received the first CO2 sequestration characterization well permit issued by the State of California to a private company; |
| ● | Expanded our India biodiesel production capacity to 60 million gallons per year ahead of schedule; and |
| ● | Received allocations for a combined |
“In addition to achieving important operational milestones during 2023 in all of our business segments, we closed one new credit facility and refinanced another construction debt facility for an aggregate of
Today, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).
Live Participant Dial In (Toll Free): +1-888-506-0062 entry code 971618
Live Participant Dial In (International): +1-973-528-0011 entry code 971618
Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/50051
For the presentation and details on the call, please visit http://www.aemetis.com/investors/conference-calls/.
Financial Results for the Three Months Ended December 31, 2023
Revenues were
Cost of Goods Sold increased from
Gross profit for the fourth quarter of 2023 was
Selling, general and administrative expenses rose from
Operating loss was
Net loss was
Cash at the end of the fourth quarter of 2023 was
Financial Results for the Twelve Months Ended December 31, 2023
Revenues were
Cost of Goods Sold decreased from
Gross profit for the twelve months ended December 31, 2023 was
Selling, general and administrative expenses increased to
Operating loss was
Interest expense was
Net loss was
Cash at the end of the fourth quarter of 2023 was
About Aemetis
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 is operating and actively expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. 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 owns and operates a 60 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 sustainable aviation fuel (SAF) and renewable diesel fuel biorefinery in California to utilize renewable hydrogen, hydroelectric power, and renewable oils to produce low carbon intensity renewable jet and diesel fuel. 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 debt extinguishment, loss on lease termination, USDA cash grants, income tax expense or benefit, intangible and other amortization expense, accretion expense, depreciation expense, gain on litigation, loss on impairment of intangibles 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, for budgeting and planning purposes and as a non-GAAP liquidity measure. 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; trends in market conditions with respect to prices for inputs for our products versus prices for our products; our ability to fund, develop, build, maintain and operate digesters, facilities and pipelines for our Dairy Renewable Natural Gas segment; our ability to fund, develop and operate our Sustainable Aviation Fuel, Renewable Diesel, and Carbon Capture and Sequestration projects, including obtaining required permits; our ability to receive awarded grants by meeting all of the required conditions, including meeting the minimum contributions; our ability to fund, develop and operate our sustainable aviation fuel and renewable biodiesel projects; our intention to repurchase the Series A preferred units relating to our Aemetis Biogas subsidiary and the expected valuation premium thereof; and our ability to raise additional capital. 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 Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filed documents. 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.
External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
Company Contact:
Todd Waltz
Chief Financial Officer
(408) 213-0925
twaltz@aemetis.com
(Tables follow)
AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| For the three months ended December 31, | For the years ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues | $ | 70,764 | $ | 66,732 | $ | 186,717 | $ | 256,513 | ||||||||
| Cost of goods sold | 69,900 | 67,864 | 184,700 | 262,048 | ||||||||||||
| Gross profit (loss) | 864 | (1,132 | ) | 2,017 | (5,535 | ) | ||||||||||
| Research and development expenses | 37 | 41 | 152 | 180 | ||||||||||||
| Selling, general and administrative expenses | 9,786 | 7,520 | 39,266 | 28,686 | ||||||||||||
| Operating loss | (8,959 | ) | (8,693 | ) | (37,401 | ) | (34,401 | ) | ||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | ||||||||||||||||
| Interest rate expense | 8,869 | 6,588 | 32,995 | 21,407 | ||||||||||||
| Debt related fees and amortization expense | 1,792 | 2,164 | 6,524 | 7,363 | ||||||||||||
| Accretion and other expenses of Series A preferred units | 5,125 | 3,968 | 25,313 | 9,888 | ||||||||||||
| Loss on debt extinguishment | - | - | - | 49,386 | ||||||||||||
| Other income | (57 | ) | (43 | ) | (2,077 | ) | (15,740 | ) | ||||||||
| Loss before income taxes | (24,688 | ) | (21,370 | ) | (100,156 | ) | (106,705 | ) | ||||||||
| Income tax expense (benefit) | 754 | 1,040 | (53,736 | ) | 1,053 | |||||||||||
| Net loss | $ | (25,442 | ) | $ | (22,410 | ) | $ | (46,420 | ) | $ | (107,758 | ) | ||||
| Net loss per common share | ||||||||||||||||
| Basic | $ | (0.64 | ) | $ | (0.63 | ) | $ | (1.22 | ) | $ | (3.12 | ) | ||||
| Diluted | $ | (0.64 | ) | $ | (0.63 | ) | $ | (1.22 | ) | $ | (3.12 | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 39,674 | 35,302 | 38,061 | 34,585 | ||||||||||||
| Diluted | 39,674 | 35,302 | 38,061 | 34,585 | ||||||||||||
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
| As of December 31, | ||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,667 | $ | 4,313 | ||||
| Accounts receivable | 8,633 | 1,264 | ||||||
| Inventories | 18,291 | 4,658 | ||||||
| Prepaid and other current assets | 6,809 | 7,901 | ||||||
| Total current assets | 36,400 | 18,136 | ||||||
| Property, plant and equipment, net | 195,108 | 180,441 | ||||||
| Other assets | 11,898 | 8,537 | ||||||
| Total assets | $ | 243,406 | $ | 207,114 | ||||
| Liabilities and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 32,132 | $ | 26,168 | ||||
| Current portion of long term debt | 13,585 | 12,465 | ||||||
| Short term borrowings | 23,443 | 36,754 | ||||||
| Mandatorily redeemable Series B convertible preferred stock | 4,521 | 4,082 | ||||||
| Other current liabilities | 10,708 | 8,812 | ||||||
| Total current liabilities | 84,389 | 88,281 | ||||||
| Total long term liabilities | 375,994 | 320,687 | ||||||
| Stockholders' deficit: | ||||||||
| Series B convertible preferred stock | - | 1 | ||||||
| Common stock | 41 | 36 | ||||||
| Additional paid-in capital | 264,058 | 232,546 | ||||||
| Accumulated deficit | (475,405 | ) | (428,985 | ) | ||||
| Accumulated other comprehensive loss | (5,671 | ) | (5,452 | ) | ||||
| Total stockholders' deficit | (216,977 | ) | (201,854 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 243,406 | $ | 207,114 | ||||
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME / (LOSS)
(In thousands, unaudited)
| For the three months ended December 31, | For the years ended December 31, | |||||||||||||||
| EBITDA Calculation | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net loss | (25,442 | ) | (22,410 | ) | (46,420 | ) | (107,758 | ) | ||||||||
| Adjustments | ||||||||||||||||
| Interest expense | 10,661 | 8,752 | 39,519 | 28,770 | ||||||||||||
| Depreciation expense | 1,725 | 1,496 | 6,933 | 5,535 | ||||||||||||
| Accretion of Series A preferred units | 5,125 | 3,968 | 25,313 | 9,888 | ||||||||||||
| Share-based compensation | 1,437 | 1,476 | 7,660 | 6,410 | ||||||||||||
| Intangibles and other | 36 | 12 | 72 | 46 | ||||||||||||
| Loss on debt extinguishment | - | - | - | 49,386 | ||||||||||||
| Loss on lease termination | - | - | - | 736 | ||||||||||||
| USDA cash grants | - | - | (1,774 | ) | (14,100 | ) | ||||||||||
| Gain on litigation | - | - | - | (1,400 | ) | |||||||||||
| Income tax expense (benefit) | 754 | 1,040 | (53,736 | ) | 1,053 | |||||||||||
| Total adjustments | 19,738 | 16,744 | 23,987 | 86,324 | ||||||||||||
| Adjusted EBITDA | (5,704 | ) | (5,666 | ) | (22,433 | ) | (21,434 | ) | ||||||||
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
| Three Months ended December 31, | Years ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Ethanol | ||||||||||||||||
| Gallons sold (in millions) | 15.0 | 13.4 | 32.1 | 59.0 | ||||||||||||
| Average sales price/gallon | $ | 2.20 | $ | 2.65 | $ | 2.44 | $ | 2.81 | ||||||||
| Percent of nameplate capacity | 109 | % | 98 | % | 58 | % | 107 | % | ||||||||
| WDG | ||||||||||||||||
| Tons sold (in thousands) | 102.6 | 90.0 | 225.3 | 396.9 | ||||||||||||
| Average sales price/ton | $ | 97 | $ | 125 | $ | 97 | $ | 128 | ||||||||
| Delivered Cost of Corn | ||||||||||||||||
| Bushels ground (in millions) | 5.2 | 4.3 | 11.5 | 20.2 | ||||||||||||
| Average delivered cost / bushel | $ | 6.70 | $ | 10.05 | $ | 7.11 | $ | 9.65 | ||||||||
| Dairy Renewable Natural Gas | ||||||||||||||||
| MMBtu external sales (in thousands) | 52.2 | 8.4 | 194.2 | 8.4 | ||||||||||||
| MMBtu stored as inventory (in thousands) | 68.0 | 9.0 | 68.0 | 9.0 | ||||||||||||
| MMBtu intercompany sales (in thousands) | - | 4.4 | - | 48.6 | ||||||||||||
| Biodiesel | ||||||||||||||||
| Metric tons sold (in thousands) | 18.3 | 10.7 | 60.5 | 17.7 | ||||||||||||
| Average Sales Price/Metric ton | $ | 1,157 | $ | 1,511 | $ | 1,232 | $ | 1,526 | ||||||||
| Percent of Nameplate Capacity | 49 | % | 29 | % | 40 | % | 12 | % | ||||||||
| Refined Glycerin | ||||||||||||||||
| Metric tons sold (in thousands) | 1.3 | 1.2 | 4.2 | 1.2 | ||||||||||||
| Average Sales Price/Metric ton | $ | 616 | $ | 845 | $ | 640 | $ | 850 | ||||||||
FAQ
What was Aemetis, Inc.'s (AMTX) annual sales figure for the India biodiesel segment?
What was Aemetis, Inc.'s (AMTX) total revenue for 2023?
What was the revenue for the fourth quarter of 2023?
What were some key financial highlights for Aemetis, Inc. (AMTX) in 2023?
What percentage increase did Aemetis achieve in annual sales from the India biodiesel segment?
