May 12, 2016
Aemetis, Inc. Reports First Quarter 2016 Financial Results
Company expects closing in June of acquisition of Edeniq, a proven cellulosic ethanol technology company
CUPERTINO, Calif. – May 12, 2016 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the three months ended March 31, 2016. The Company also announced that it expects to close in June on its acquisition of Edeniq, a proven cellulosic ethanol technology company with about 30 installations operating at six ethanol plants.
On May 5, 2016, the Company entered into a definitive agreement to acquire Edeniq. Edeniq has developed patented innovations that unlock cellulosic and starch sugars through a combination of patented mechanical and biological processes. In 2015, Edeniq generated about $20 million in revenues and about $6 million of EBITDA.
“The overall ethanol market improvement we saw at the end of the first quarter, combined with the pending acquisition of Edeniq, positions Aemetis for positive margin growth in the second half of 2016,” stated Eric McAfee, Chairman and CEO of Aemetis, Inc.
Today, Aemetis will host an earnings review call at 10:00 am Pacific (PT).
Live Participant Dial In (Toll Free): 877-407-8133
Live Participant Dial In (International): 201-689-8040
For details on the call, visit: https://www.aemetis.com/investors/conference-call/. Please download presentation regarding acquisition of Edeniq on Aemetis home page, www.aemetis.com.
Financial Results for the Three Months Ended March 31, 2016
Revenues were $33.3 million for the first quarter of 2016, compared to $34.7 million for the first quarter of 2015. The decline in revenue was primarily attributable to decreases in ethanol and wet distiller’s grain average selling prices and volumes. Gross margin for the first quarter of 2016 was $2.1 million, compared to negative gross margin of $228 thousand during the first quarter of 2015. The increase in gross margin was primarily attributable to the lower price of feedstock compared to the same period of the prior year.
Selling, general and administrative expenses were $3.0 million in the first quarter of 2016, compared to $3.6 million in the first quarter of 2015. The decrease in selling, general and administrative expenses was driven by lower spending in the areas of financial and consulting advisory fees compared to the same period of the prior year.
Operating loss was $1.0 million for the first quarter of 2016, compared to an operating loss of $4.0 million for the same period in 2015.
Net loss was $5.1 million for the first quarter of 2016, compared to a net loss of $8.6 million for the first quarter of 2015.
Adjusted EBITDA for the first quarter of 2016 was $244 thousand, compared to Adjusted EBITDA loss of $2.7 million for the same period in 2015.
Cash at the end of the first quarter of 2016 was $325,000 compared to $283,000 at the end of the fourth quarter of 2015.
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 second-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 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 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 expense, loss on extinguishment, income tax expense, intangible and other amortization expense, 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. 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, the consummation and anticipated timing for completion of the Edeniq acquisition, the impact of the Edeniq acquisition on our margin growth and our expectations for growth in the overall ethanol market. 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, 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 our Annual Report on Form 10-K for the year ended December 31, 2015, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 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.
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