March 12, 2015

Aemetis Reports Fourth Quarter and Record Year-End 2014 Results

Annual revenues grow 17% and EBITDA of $30 million

 

CUPERTINO, Calif. – March 12, 2015 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the fourth quarter and twelve months ended December 31, 2014.

 

Financial Highlights for 2014

 

  • Record revenues of $208 million in 2014, up from $178 million in 2013
  • Record adjusted EBITDA of $30 million in 2014, up from $10 million in 2013
  • Gross profit of $37 million in 2014, up from $18 million in 2013
  • Operating income of $24.1 million, up from $2.5 million in 2013
  • Net income of $7.1 million or $0.35 per share
  • Term debt net cash payments of $29.6 million
  • 34% reduction in interest and amortization expense compared to 2013
  • $18.5 million of EB-5 funding approved or released to the company from escrow

 

 

“In 2014, our financial and operational performance was very strong, setting new records for revenue, adjusted EBITDA and gross profit,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis.  “During this past year, Aemetis also achieved several additional milestones, including a NASDAQ listing in June, a $3 million grant from the State of California in July for grain sorghum feedstock development, and the October announcement of plans to construct and operate a liquid CO2 unit at our Keyes ethanol plant.  This year, we intend to continue to build on our strong momentum from 2014 as we increase production at our biodiesel and glycerin biorefinery in India, as well as we seek to expand our business into rapidly growing markets with new technologies and products,” added McAfee.

 

Today, Aemetis will host an earnings review and business update call at 1:15 pm Pacific (PT). For details on the call, visit: https://www.aemetis.com/investors/conference-call/

 

 

Financial Results for the Year Ended December 31, 2014

 

Revenues during 2014 grew to a record $208 million, a 17% year-over-year growth from revenues during 2013 of $178 million. For the year ended December 31, 2014, a record 60.2 million gallons of ethanol and 408,000 tons of wet distiller’s grains (WDG) were produced at our Keyes plant and sold. For the year ended December 31, 2014, Keyes ethanol plant operations averaged 109% of nameplate capacity compared to 103% for the nine months of operations during 2013. In addition, our India subsidiary produced 9,000 metric tons of biodiesel and 2,200 metric tons of refined glycerin.

 

Gross profit during 2014 of $37 million was up from gross profit of $18 million during 2013, primarily due to strong production margins in the first two quarters of 2014. Operating income of $24.1 million in 2014 surpassed operating income of $2.5 million in 2013 by $21.6 million.

 

Selling, general and administrative expenses decreased from $15.3 million during the year ended December 31, 2013 to $12.6 million during the same period of 2014 primarily due to higher 2013 US legal settlement payments and lower 2014 India subsidiary operating expense, which further contributed to overall profitability.

 

Interest expense during the year ended December 31, 2014 of $17.4 million decreased from interest expense of $28 million during the same period of 2013, primarily due to positive overall 2014 financial performance generating positive cash flow and resulting debt principal reductions made during 2014.

 

Net income during 2014 of $7.1 million, or $0.35 per diluted share, exceeded the net loss of $24.4 million or $1.28 loss per diluted share during 2013. Adjusted EBITDA for the twelve months ended December 31, 2014 was $30 million, compared to adjusted EBITDA of $10 million for the same period in 2013.

 

Financial Results for the Three Months Ended December 31, 2014

 

Revenues of $41.5 million in the fourth quarter of 2014 declined 23% from $54.1 million in the 2013 fourth quarter, primarily due to a decline in ethanol sales price per gallon, as well as lower WDG sales price per ton. During the fourth quarter of 2014, gross profits declined to $2.5 million from $11.3 million during the stronger 2013 fourth quarter. Increased rail transportation costs during the fourth quarter contributed to these results.

 

During the fourth quarter of 2014, selling, general and administrative (“SG&A”) expenses at $3.3 million remained at similar levels to the $3.2 million in SG&A expenses during the fourth quarter of 2013. Interest and amortization expense declined 45% to $3 million in the fourth quarter of 2014, compared to $5.4 million in the fourth quarter of 2013 due to debt payments from favorable financial performance in the first three quarters of 2014.

 

The operating loss for the fourth quarter of 2014 of $1 million compares to $8.0 million of operating income during the same period of 2013. The net loss of $3.7 million during the fourth quarter of 2014 compares to $3.3 million in net income for the fourth quarter of 2013. Adjusted EBITDA during the fourth quarter of 2014 of $0.6 million was lower than $9.9 million of adjusted EBITDA for the same period in 2013.

 

“Improved performance during 2014 reflects strong gross profits from a favorable margin environment combined with reductions in both selling, general and administrative expenses as well as interest expense,” said Todd Waltz, Chief Financial Officer of Aemetis. “Our ability to generate strong EBITDA during the year allowed us to reduce our debt obligations resulting in lower interest cost and increased equity for shareholders. We have ongoing interest expense reductions through refinance activities currently underway, including $18.5 million in cash approved or released from escrow to the company from the EB-5 program, that we believe will further lower the interest costs of the company,” added Waltz.

 

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, statements regarding funds to be received under our EB-5 loan program, our refinancing activities, increasing production at our biodiesel and glycerin biorefinery in India, expanding our business into rapidly growing markets with new technologies and products, our plans to construct and operate a liquid CO2 unity