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 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 $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.

 

 

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.