CUPERTINO, CA / ACCESSWIRE / March 7, 2017 / Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company,
today announced its financial results for the three and twelve months ended December 31, 2016.
Financial Highlights for 2016
- Revenues of $143 million during 2016 - Net loss improved by $11.5 million to $15.6 million
during 2016 - Adjusted EBITDA of $5.1 million during 2016 improved by $8.2 million from 2015 - $10.5 million of EB-5 funding
released to the company from escrow during 2016
"During 2016, our financial and operational performance improved significantly, driven by higher ethanol prices and lower corn
costs. This improvement allowed us to reduce our net loss to $15.6 million and achieve an adjusted EBITDA of $5.1 million during
the twelve months of 2016," said Eric McAfee, Chairman and CEO of Aemetis. "Going forward, we expect that continued enforcement of
the Renewable Fuel Standard will create a healthier supply and demand balance to support expanded investment in the biofuels
industry. Growing ethanol exports have also had a positive effect on the market. As part of our Phase I EB-5 offering, 70 foreign
investors funded $35 million at a 3% interest rate. In September 2016, we launched a Phase II $50 million EB-5 offering. The
additional EB-5 funding will allow us to significantly reduce interest costs and to fund projects in advanced biofuels and
biochemicals that are expected to increase revenues, margins and earnings," added McAfee.
Today, Aemetis will host an earnings review call at 11:00 am Pacific time (PT).
Live Participant Dial In (Toll Free): 866-682-6100 Live Participant Dial In (International): 862-255-5401
For details on the call, visit: http://www.aemetis.com/investors/conference-calls/.
Financial Results for the Three Months Ended December 31, 2016
Revenues were $37.4 million for the fourth quarter of 2016, compared to $35.3 million for the fourth quarter of 2015. The
increase in revenue was primarily attributable to increases in ethanol pricing and volumes. Gross margin for the fourth quarter of
2016 was $3.9 million, a major improvement over the gross margin of $1.4 million during the fourth quarter of 2015. The gross
margin improvement was primarily driven by a 9% increase in ethanol pricing.
Selling, general and administrative expenses were $2.9 million in the fourth quarter of 2016, compared to $2.8 million in the
fourth quarter of 2015.
Operating income was $936 thousand for the fourth quarter of 2016, compared to an operating loss of $1.5 million for fourth
quarter of 2015.
Net loss was $1.4 million for the fourth quarter of 2016, compared to a net loss of $6.5 million for the fourth quarter of
2015.
During the fourth quarter, we repaid the State Bank of India (SBI) debt related to our India biodiesel plant in full, and
received $2 million of fee and interest waivers from SBI related to the full repayment.
We experienced good operational results from our North America ethanol business with gross margins at 11.1% of segment revenues.
Our largest contributor to expenses is interest expense of $4.3 million. We continue our efforts to lower our cost of capital
through a combination of debt refinancings including escrow releases from the EB-5 program.
The fundamental health and improvement in our operating North America business is reflected in Adjusted EBITDA for the fourth
quarter of 2016, which increased $2.2 million compared to Adjusted EBITDA for the same period in 2015.
Cash at the end of the fourth quarter of 2016 was $1.5 million, compared to $283 thousand at the end of the fourth quarter of
2015.
Financial Results for the Twelve Months Ended December 31, 2016
Revenues were $143.2 million for the twelve months ended December 31, 2016, compared to $146.6 million for the same period in
2015. The decrease in revenue was primarily attributable to decreases in biodiesel volumes and wet distillers grains pricing in the
twelve months ended December 31, 2016 compared to the same period in 2015.
Gross profit for the twelve months ended December 31, 2016 was $11.6 million, a significant increase from $4.2 million during
the same period in 2015. Gross profit growth was attributable to higher ethanol prices and lower corn prices, particularly
feedstock in North America, which decreased by 9% to $4.58 per bushel for the year ended December 31, 2016 as compared to 2015.
Selling, general and administrative expenses were $12 million during the twelve months ended December 31, 2016, compared to
$12.4 million during the same period in 2015. The decrease in selling, general and administrative expenses was primarily
attributable to lower professional services fees compared to the same period of the prior year.
Operating loss decreased to $781 thousand for the twelve months ended December 31, 2016, compared to an operating loss of $8.6
million for the same period in 2015.
Net loss of $15.6 million for the twelve months ended December 31, 2016 decreased in comparison to a net loss of $27.1 million
during the same period in 2015.
The fundamental improvement in our operating North America business is reflected in Adjusted EBITDA for the twelve months ended
December 31, 2016, which was $5.1 million, an approximately $8 million improvement compared to Adjusted EBITDA for the same period
in 2015.
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 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, the US 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 impact of the EPA's continued enforcement of the Renewable Fuel
Standard on the biofuel industry, the timing and consummation of our EB-5 program, the expected effect of debt repayment on our
interest expense and net income, 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, completion of our acquisition of
Edeniq, 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, 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.
AEMETIS, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three months ended
Year ended December 31, December 31, 2016 2015 2016 2015 Revenues $ 37,396 $ 35,346 $ 143,158 $ 146,649 Cost of goods sold 33,493
33,902 131,559 142,450 Gross profit 3,903 1,444 11,599 4,199 Research and development expenses 79 117 369 447 Selling, general and
administrative expenses 2,888 2,805 12,011 12,361 Operating income/(loss) 936 (1,478 ) (781 ) (8,609 ) Interest rate expense 2,814
2,523 11,493 10,164 Amortization expense 1,454 1,329 5,723 6,715 Loss/(gain) on debt extinguishment (2,033 ) - (2,033 ) 330 Loss on
impairment of goodwill and intangibles - 1044 - 1044 Other expense/(income) 146 79 (334 ) 270 Income/(loss) before income taxes
(1,445 ) (6,453 ) (15,630 ) (27,132 ) Income tax expense - - (6 ) (6 ) Net income/(loss) $ (1,445 ) $ (6,453 ) $ (15,636 ) $
(27,138 ) Net Income/(loss) per common share Basic $ (0.07 ) $ (0.33 ) $ (0.79 ) $ (1.37 ) Diluted $ (0.07 ) $ (0.33 ) $ (0.79 ) $
(1.37 ) Weighted average shares outstanding Basic 19,858 19,598 19,771 19,823 Diluted 19,858 19,598 19,771 19,823 AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) Year ended December 31, 2016 2015 Assets Current assets: Cash and cash
equivalents $ 1,486 $ 283 Accounts receivable 1,557 1,166 Inventories 3,241 4,804 Prepaid and other expenses 761 1,749 Total
current assets 7,045 8,002 Property, plant and equipment, net 66,370 70,718 Goodwill, intangibles and other assets 4,395 4,421
Total assets $ 77,810 $ 83,141 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 7,842 $ 10,183 Current
portion of long term debt, notes and working capital 11,409 11,947 Mandatorily redeemable Series B convertible preferred stock
2,844 2,742 Other current liabilities 5,121 4,425 Total current liabilities 27,216 29,297 Total long term liabilities 100,407
89,138 Stockholders' deficit: Series B convertible preferred stock 1 1 Common stock 20 20 Additional paid-in capital 83,441 82,115
Accumulated deficit (129,887 ) (114,251 ) Accumulated other comprehensive loss (3,388 ) (3,179 ) Total stockholders' deficit
(49,813 ) (35,294 ) Total liabilities and stockholders' deficit $ 77,810 $ 83,141 RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/
(LOSS) (In thousands) Three months ended December 31, Year ended December 31, 2016 2015 2016 2015 Net income/(loss) $ (1,445 ) $
(6,453 ) $ (15,636 ) $ (27,138 ) Adjustments: Interest expense 2,814 2,523 11,493 10,164 Amortization expense 1,454 1,329 5,723
6,715 Loss on debt extinguishment (2,033 ) - (2,033 ) 330 Income tax expense - - 6 6 Intangibles and other amortization expense 31
33 126 129 Loss on impairment of intangibles - 1,044 - 1,044 Depreciation expense 1,147 1,170 4,670 4,730 Share-based-compensation
174 244 747 938 Total adjustments 3,587 6,343 20,732 24,056 Adjusted EBITDA $ 2,142 $ (110 ) $ 5,096 $ (3,082 ) PRODUCTION AND
PRICE PERFORMANCE (unaudited) Three months ended Year ended December 31, December 31, 2016 2015 2016 2015 Ethanol Gallons Sold (in
000s) 14,595 13,187 55,641 55,787 Average Sales Price/Gallon $ 1.90 $ 1.74 $ 1.78 $ 1.74 WDG Tons Sold (in 000s) 95 84 372 360
Average Sales Price/Ton $ 65 $ 71 $ 71 $ 80 Biodiesel Metric tons sold 2,142 7,442 16,080 19,523 Average Sales Price/Metric ton $
778 $ 707 $ 739 $ 724 Refined Glycerin Metric tons sold 1,770 693 4,413 4,653 Average Sales Price/Metric ton $ 567 $ 671 $ 582 $
668
External Investor Relations Contact: Christine Petraglia PCG Advisory Group (646) 731-9817 christine@pcgadvisory.com
Investor
Relations and Media Contact: Satya Chillara (408) 213-0939 schillara@aemetis.com
SOURCE: Aemetis, Inc.
