CUPERTINO, CA -- (Marketwired) -- 03/12/15 --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: http://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 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, 2014, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014 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.
About Aemetis
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.
AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
Three months ended Year ended
December 31 December 31
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Revenues $ 41,475 $ 54,053 $ 207,683 $ 177,514
Cost of goods sold 39,023 42,793 170,539 159,220
--------- --------- --------- ---------
Gross profit 2,452 11,260 37,144 18,294
Research and development expenses 117 71 459 539
Selling, general and
administrative expenses 3,332 3,197 12,595 15,275
--------- --------- --------- ---------
Operating income/(loss) (997) 7,992 24,090 2,480
Interest rate expense (2,315) (3,291) (10,052) (11,808)
Amortization expense (677) (2,103) (6,038) (12,467)
Loss on debt extinguishment - - (1,346) (3,709)
Other income/(expense) 249 660 485 1,073
--------- --------- --------- ---------
Income/(loss) before income taxes (3,740) 3,258 7,139 (24,431)
Income tax expense - - (6) (6)
--------- --------- --------- ---------
Net income/(loss) $ (3,740) $ 3,258 $ 7,133 $ (24,437)
========= ========= ========= =========
Net Income/(loss) per common
share*
Basic $ (0.18) $ 0.16 $ 0.35 $ (1.28)
Diluted $ (0.18) $ 0.16 $ 0.34 $ (1.28)
Weighted average shares
outstanding*
Basic 20,630 19,806 20,371 19,101
Diluted 20,630 20,272 21,047 19,101
* The Earnings per share and Weighted average shares outstanding for all
periods presented reflect the one-for-ten reverse split, which took effect
May 15, 2014.
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited, in thousands)
Year ended
December 31
----------------------
2014 2013
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 332 $ 4,926
Accounts receivable 1,262 2,764
Inventories 4,491 4,098
Prepaid and other expenses 1,848 919
---------- ----------
Total current assets 7,933 12,707
Property, plant and equipment, net 75,810 78,928
Goodwill, intangibles and other assets 5,433 5,507
---------- ----------
Total assets $ 89,176 $ 97,142
========== ==========
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable $ 8,339 $ 9,366
Current portion of long term debt, notes and
working capital 12,746 17,966
Mandatorily redeemable Series B convertible
preferred stock 2,641 2,540
Other current liabilities 3,590 6,245
---------- ----------
Total current liabilities 27,316 36,117
Total long term liabilities 64,832 73,792
Stockholders' deficit:
Series B convertible preferred stock 2 2
Common stock 21 20
Additional paid-in capital 87,080 84,373
Accumulated deficit (87,113) (94,246)
Accumulated other comprehensive loss (2,962) (2,916)
---------- ----------
Total stockholders' deficit $ (2,972) $ (12,767)
---------- ----------
Total liabilities and stockholders' deficit $ 89,176 $ 97,142
========== ==========
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
Three months ended Year ended
December 31 December 31
------------------- -------------------
2014 2013 2014 2013
-------- --------- --------- --------
Net income/(loss) $ (3,740) $ 3,258 $ 7,133 $(24,437)
Adjustments:
Interest rate expense 2,315 3,291 10,052 11,808
Amortization expense 677 2,103 6,038 12,467
Loss on debt extinguishment - - 1,346 3,709
Income tax expense - - 6 6
Intangibles and other
amortization expense 31 90 126 254
Depreciation expense 1,195 1,165 4,681 4,636
Share-based compensation 177 175 624 1,760
-------- --------- --------- --------
Total adjustments 4,395 6,824 22,873 34,640
-------- --------- --------- --------
Adjusted EBITDA $ 655 $ 10,082 $ 30,006 $ 10,203
======== ========= ========= ========
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
Three months ended Year ended
December 31 December 31
------------------- -------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Ethanol
Gallons Sold (in 000s) 14,463 15,927 60,197 42,390
Average Sales Price/Gallon $ 2.19 $ 2.46 $ 2.54 $ 2.62
WDG
Tons Sold (in 000s) 98 110 408 301
Average Sales Price/Ton $ 67 $ 103 $ 92 $ 100
Biodiesel
Metric tons sold 1,437 794 9,036 19,354
Average Sales Price/Metric ton $ 892 $ 968 $ 985 $ 929
Refined Glycerin
Metric tons sold 655 1,448 2,236 4,913
Average Sales Price/Metric ton $ 778 $ 973 $ 933 $ 940
Investor Relations:
Michael Bayes
(415) 389-4670
michaelbayes@liviakis.com
Company Contact:
Todd Waltz
(408) 213-0925
twaltz@aemetis.com
Media Contact:
Melanie Borchardt
(408) 213-0938
mborchardt@aemetis.com
