CUPERTINO, Calif. – May 7, 2015 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and renewable chemicals company, today announced its financial results for the three months ended March 31, 2015.
“Our US ethanol operating results reflect the current industry experience of reduced margins during the first quarter, but we are seeing improving margins during the second quarter,” stated Eric McAfee, Chairman and CEO of Aemetis. “Our India biodiesel business benefited from key government policy changes and achieved customer testing milestones during the first quarter. Biodiesel revenues are now growing consistently in India with repeat shipments to bulk customers in the truck, bus and stationary diesel engine markets.”
“Importantly, we received $17 million at a 3% interest rate from EB-5 subordinated debt funding during the first quarter, and have an additional $7 million of EB-5 funding in escrow and $10 million more in proceeds expected to be received by the company later this year. This low-cost funding is being used to repay our senior debt. We also have reduced the number of shares outstanding by 1.5 million shares to 19.5 million shares,” said McAfee.
Financial Results for the Three Months Ended March 31, 2015
Revenues were $34.7 million for the first quarter of 2015, compared to $60.7 million for the first quarter of 2014. Gross loss for the first quarter of 2015 was $0.2 million, compared to a gross profit of $15.6 million in the first quarter of 2014. The decreases in revenues and gross profit were primarily attributable to a decline in ethanol sales price per gallon as well as lower Wet Distiller’s Grain (WDG) sales price per ton. WDG pricing suffered from reduced dairy production in California, as well as lower overall feed prices in the marketplace.
Selling, general and administrative (“SG&A”) expenses were $3.6 million in the first quarter of 2014, compared to $2.8 million in the first quarter of 2014. The increase in SG&A expenses was primarily attributable to an increase in financial and consultant advisory services, including legal and other costs related to the EB-5 offering.
We experienced an operating loss of $4.0 million for the first quarter of 2015, compared to operating income of $12.7 million for the same period in 2014.
Net loss for the first quarter of 2015 was $8.6 million, compared to net income of $7.7 million for the first quarter of 2014.
Adjusted EBITDA for the first quarter of 2015 was a loss of $2.7 million, compared to Adjusted EBITDA of $14.2 million for the same period in 2014.
Cash at the end of the first quarter was $5.5 million, compared to about $300,000 of cash at the close of 2014.
During the first quarter of 2015, $17 million of low-cost EB-5 debt funding was received. Interest costs during the first quarter were $2.5 million, a reduction from $2.9 million of interest costs in the first quarter of 2014.
Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and renewable chemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of first-generation 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 operates a research and development laboratory at the Maryland Biotech Center, and 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 and amortization (income)/expense, depreciation expense, income/(expense) from share-based compensation and (gains)/losses resulting from debt extinguishment.
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.
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 regarding our improving margins for the second quarter of 2015, growing revenues in India and additional EB-5 funding. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “targets,” “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 and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, 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, 2014, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 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.