Significant Initiatives Recently Launched in Advanced Ethanol
CUPERTINO, Calif. – March 24, 2016 – 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, 2015.
Financial Highlights for 2015
- Revenues of $147 million in 2015, down from $208 million in 2014
- Adjusted EBITDA of $(3) million in 2015, down from $30 million in 2014
- $22 million of EB-5 funding released to the company from escrow during 2015
“In 2015, our financial and operational performance was affected by excess supply in ethanol markets,” said Eric McAfee, Chairman and Chief Executive Officer of Aemetis. “During this past year, Aemetis significantly increased production at our biodiesel and glycerin biorefinery in India, to take advantage of deregulation and the removal of subsidies in the diesel market. The biodiesel domestic market in India continues to grow, with our expanding sales of B100 as a transportation fuel to replace diesel. In 2016, we plan to increase the profitability of our ethanol business by the adoption of patented technologies for the production of cellulosic ethanol and related products at the Keyes plant,” added McAfee.
Today, Aemetis will host an earnings review call at 10:00 am Pacific (PT). For details on the call, visit: https://www.aemetis.com/investors/conference-call/
Financial Results for the Year Ended December 31, 2015
Revenues of $147 million during 2015 represent a 29% year-over-year decline from revenues of $208 million during 2014. For the year ended December 31, 2015, 56 million gallons of ethanol and 360 thousand tons of wet distillers grains were produced at our Keyes plant and sold at an average sales price of $1.74 per gallon and $80 per ton, respectively. For the year ended December 31, 2014, 60 million gallons of ethanol and 408 thousand tons of wet distillers grains were produced at our Keyes plant and sold at an average sales price of $2.54 per gallon and $92 per ton, respectively. Overall softness in the ethanol market due to a delay in the enforcement of the Renewable Fuel Standard by the EPA led us to operate the Keyes plant at 101% of nameplate capacity during 2015 compared to 109% of nameplate capacity during 2014. The lower ethanol production combined with the decrease in the average sales price per gallon of ethanol sold resulted in lower sales from our North America segment.
Our India subsidiary produced 19,523 metric tons of biodiesel and 4,653 metric tons of refined glycerin, resulting in 2015 revenue of $17 million, representing growth of 41% year-over-year from 2014. Significantly, biodiesel revenues from domestic India customers during 2015 were $14.1 million, a 265% increase from revenues of $3.86 million during 2014, with major milestones achieved in August 2015 from the approval of direct bulk biodiesel sales and in October 2015 from the removal of the tax on feedstock for biodiesel production.
Gross profit during 2015 of $4.2 million was down from gross profit of $37 million during 2014, primarily due to excess ethanol supply and the spread between ethanol and corn pricing in the market. Operating loss during2015 was $8.6 million, down from operating income of $24 million in 2014.
Selling, general and administrative expenses were largely unchanged from $12.3 million during the year ended December 31, 2015 to $12.6 million during the same period of 2014.
Interest expense during the year ended December 31, 2015 of $17.2 million was largely unchanged from interest expense of $17.4 million during the same period of 2014, primarily due to the delay in realizing EB-5 monies from the escrow account and lower level of expense acceleration due to loss on debt extinguishment.
Net loss during 2015 of $27 million, or $1.37 per diluted share, compared to net income of $7.1 million or $0.34 per diluted share during 2014. Adjusted EBITDA for the twelve months ended December 31, 2015 was a loss of $3.1 million, compared to adjusted EBITDA of $30 million for the same period in 2014.
Financial Results for the Three Months Ended December 31, 2015
Revenues of $35.3 million in the fourth quarter of 2015 declined 15% from $41.5 million in the fourth quarter of 2014, primarily due to a decline in ethanol sales price per gallon, as well as lower wet distillers grains sales price per ton. During the fourth quarter of 2015, gross profit declined to $1.4 million from $2.5 million during the fourth quarter of 2014.
During the fourth quarter of 2015, selling, general and administrative (“SG&A”) expenses decreased slightly to $2.8 million, compared to SG&A expense of $3.3 million during the fourth quarter of 2014. Interest and amortization expense increased slightly to $3.8 million in the fourth quarter of 2015, compared to $3.0 million in the fourth quarter of 2014 due to higher cost of debt payments.
The operating loss for the fourth quarter of 2015 of $6.5 million compares to $3.7 million of operating income during the same period of 2014. Adjusted EBITDA during the fourth quarter of 2015, resulting in a loss of $260 thousand, compared to a gain of $655 thousand of adjusted EBITDA for the same period in 2014.
“Subdued performance during 2015 reflects excess supply of ethanol in the North America segment where we continue to derive a majority of our revenues. We have been diligent in controlling our selling, general and administrative expenses,” said Todd Waltz, Chief Financial Officer of Aemetis. “We have ongoing interest expense reductions through refinance activities currently underway, including $12.5 million in 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 unit and adopt patented technologies for the production of cellulosic ethanol and related products at our Keyes ethanol plant and further reductions in our outstanding debt. 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, risks associated with the conversion of the Keyes plant to the use of sorghum for ethanol production; and other risks detailed in our reports filed or to be filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2015, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 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.
Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemical company focused on the production of advanced fuels and chemicals through the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by 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 Keyes, California. 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 Europe and Asia. 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.