November 12, 2020

Aemetis, Inc. Reports Third Quarter 2020 Financial Results

Download the complete earnings report

CUPERTINO, Calif. – November 12, 2020 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company innovating the reduction of carbon intensity, today announced its financial results for the three and nine months ended September 30, 2020.

Aemetis’ third quarter of 2020 included significant announcements and financial achievements:

  • Ethanol and high-grade alcohol gallons sold increased 11% to 15.2 million gallons compared to the second quarter of 2020
  • Biodiesel metric tons sold increased 216% compared to the second quarter of 2020
  • Revenues were $40.9 million during the third quarter
  • Net Loss was $12.2 million ($0.59 per share)

“In the third quarter, the Aemetis Biogas team achieved several significant milestones by completing the first phase of our dairy digester cluster project, including the commissioning of a four mile Aemetis-owned pipeline and two dairy digesters that are now producing below zero carbon intensity biogas,” said Eric McAfee, Chairman & CEO of Aemetis, Inc.  “The biogas team is working to rapidly build 16 additional dairy digesters under 25 year contracts, a centralized gas clean up unit, and about 26 more miles of pipeline in the Aemetis dairy digester cluster, which is expected to be fully completed within about 18 months.  In 2021, Aemetis will be able to inject dairy renewable natural gas into the common carrier pipeline and utilize an onsite renewable compressed natural gas fueling station,” McAfee added.

Demand for high grade alcohol for sanitizer production and shipments of bulk alcohol to sanitizer alcohol customers launched strongly in the second quarter of 2020 at the onset of the COVID-19 pandemic, but then softened during the third quarter of 2020 due to inferior product from overseas and customer resulting demand for United States Pharmacopeia grade alcohol.  Responding to this continued market demand for high-quality sanitizer and health products, Aemetis expanded its sustainable advantage as the largest West Coast producer of high grade alcohol for sanitizer and health products by launching Aemetis Health Products.  This new subsidiary extended the business into the production and distribution of branded and private label blended liquid and gel sanitizer and other health safety products.

“After obtaining the Food and Drug Administration National Drug Code for sanitizer products, Aemetis Health Products began production during the third quarter to expand product offerings into key markets for hand sanitizers, personal care and cleaning products.  Sales of the new sanitizer products are planned to be supported by production of United States Pharmacopeia medical grade alcohol beginning in the first half of 2021,” said McAfee.

To reduce the carbon intensity of our products, Aemetis commenced project development for two significant ethanol plant energy upgrade projects, including a large solar microgrid that is expected to produce approximately 1.5MW of renewable energy at the Keyes plant, and a mechanical vapor recompression (MVR) upgrade that, when combined with the solar project, is engineered to reduce the plant’s natural gas steam usage by approximately 85%.  The combined solar and MVR projects were awarded $14 million of grants from the California Energy Commission in 2020, with construction expected to commence in the second half of 2021.

Today, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).

Live Participant Dial In (Toll Free): +1-844-407-9500
Live Participant Dial In (International): +1-862-298-0850

Webcast URL:  https://www.webcaster4.com/Webcast/Page/2211/38376

For details on the call, please visit https://www.aemetis.com/investors/conference-calls/

 

Financial Results for the Three Months Ended September 30, 2020

Revenues were $40.9 million for the third quarter of 2020 compared to $57.4 million for the third quarter of 2019, driven by the reduction in the price of ethanol and delays in the India government oil marketing companies biodiesel bidding process.

Gross profit for the third quarter of 2020 was $771 thousand, compared to a gross profit of $4.0 million during the third quarter of 2019.

Selling, general and administrative expenses remained flat at $4.6 million during the third quarter of 2020, compared to $4.5 million during the third quarter of 2019.

Operating loss increased to $3.8 million for the third quarter of 2020, compared to an operating loss of $0.6 million for the third quarter of 2019.

Interest expense during the third quarter of 2020 was $6.5 million, excluding accretion in connection with Series A preferred units in the Aemetis Biogas LLC subsidiary, compared to $6.3 million during the third quarter of 2019.  The Aemetis Biogas LLC subsidiary recognized $1.8 million of accretion in connection with preference payments on its preferred stock units compared to $0.6 during the third quarter of 2019.

Net loss was $12.2 million for the third quarter of 2020, compared to a net loss of $7.2 million for the third quarter of 2019.

Adjusted EBITDA was negative $2.5 million for the three months ended September 30, 2020.

Cash at the end of the third quarter of 2020 was $79 thousand, compared to $656 thousand at the end of 2019.

Financial Results for the Nine Months Ended September 30, 2020

Revenues were $128.2 million for the first three quarters of 2020, compared to $149.9 million for the first three quarters of 2019.

Selling, general and administrative expenses were $12.5 million during the first three quarters of 2020, compared to $12.7 million during the first three quarters of 2019.

Operating income was $1.7 million for the first three quarters of 2020, compared to an operating loss of $6.0 million for the first three quarters of 2019.

Interest expense was $19.5 million during the first three quarters of 2020, excluding accretion of Series A preferred units in the Aemetis Biogas LLC subsidiary, compared to interest expense of $19.1 million during the first three quarters of 2019.  Additionally, the Aemetis Biogas LLC subsidiary recognized $4.1 million of accretion in connection with preference payments on its preferred stock during the first three quarters of 2020.

 

 

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 f