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November 2023
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EXHIBIT 99.1
External Investor Relations Contact: Kirin Smith PCG Advisory Group (646) 863-6519 ksmith@pcgadvisory.com | Investor Relations/ Media Contact: Todd Waltz (408) 213-0940 investors@aemetis.com |
Aemetis, Inc. Reports Third Quarter 2021 Financial Results
CUPERTINO, Calif. – November 11, 2021 - Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the three and nine months ended September 30, 2021.
“Revenues from North America sales in the third quarter of 2021 increased 50.4% compared to the third quarter of 2020 as economic recovery from COVID-19 continues to create increased demand for liquid transportation fuels along with its associated stronger pricing,” said Todd Waltz, Chief Financial Officer of Aemetis. “North America revenues during the third quarter of 2021 increased to $49.8 million compared to $33.1 million during the third quarter of 2020. Capital expenditures for ultra-low carbon projects were $18.8 million for the first nine months of 2021 as our engineering and construction teams moved forward with the initiatives outlined in our previously announced Five Year Plan,” added Waltz.
“We are pleased with the milestones accomplished during the third quarter of 2021, including commencing construction of the next phase of dairy digesters, building the biogas cleanup facility and work on the utility gas pipeline interconnect that was mechanically completed today,” said Eric McAfee, Chairman and CEO of Aemetis. “The Aemetis Biogas RNG project received a permit from Stanislaus County to construct approximately 20 miles of pipeline using County roads, as well as selecting the contractor who is now installing the biogas pipeline. We also received a drilling study from Baker Hughes confirming the feasibility of injecting CO2 emissions for sequestration in the unique shale formations that extend under our two biofuels plant sites in California. We invite investors to review the updated Aemetis Corporate Presentation and the Aemetis Investor Presentation on the Aemetis home page prior to the earnings call.”
Today, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).
1 |
Live Participant Dial In (Toll Free): +1-877-545-0523 Access Code 492308
Live Participant Dial In (International): +1-973-528-0016 Access Code 492308
Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/43472
For details on the call, please visit http://www.aemetis.com/investors/conference-calls/
2 |
Financial Results for the Three Months Ended September 30, 2021
Revenues during the third quarter of 2021 were $49.9 million compared to $40.9 million for the third quarter of 2020. Our North America operations in the third quarter of 2021, as compared to the third quarter of 2020, experienced an increase in the selling price of ethanol from $1.59 per gallon to $2.84 per gallon, and an increase in the delivered corn price from an average of $4.92 per bushel during the third quarter of 2020 to $7.99 per bushel during the third quarter of 2021.
Gross loss for the third quarter of 2021 was $4.8 million, compared to gross income of $771 thousand during the third quarter of 2020. Gross margin was negatively impacted by the establishment of a reserve of $5.3 million for California emissions compliance for the Keyes ethanol plantmade in September. Our North America segment accounted for all of the reported, consolidated gross profit in both periods.
Selling, general and administrative expenses were $5.1 million during the third quarter of 2021, compared to $4.6 million during the third quarter of 2020 as a result of period expenses, specifically salary and insurance, incurred as part of the development of our ultra-low carbon initiatives.
Operating loss was $9.9 million for the third quarter of 2021, compared to an operating loss of $3.8 million for the third quarter of 2020 principally driven by the establishment of a reserve of $5.3 million.
Interest expense during the third quarter of 2021 was $5.5 million, excluding accretion and other expenses in connection with Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to $6.5 million during the third quarter of 2020. Additionally, our Aemetis Biogas LLC subsidiary recognized $2.2 million of accretion and other expenses in connection with preference payments on its preferred stock during the third quarter of 2021 compared to $1.8 million during the third quarter of 2020.
Net loss was $17.6 million for the third quarter of 2021, compared to a net loss of $12.2 million for the third quarter of 2020.
Cash at the end of the third quarter of 2021 increased to $6.4 million, compared to $0.6 million at the end of 2020. Capital expenditures increased property, plant and equipment by $18.8 million driven by investments in our ultra-low carbon initiatives and company debt decreased by $44.6 million compared to December 31, 2020.
Financial Results for the Nine Months Ended September 30, 2021
Revenues were $147.6 million for the first three quarters of 2021, compared to $128.2 million for the first three quarters of 2020, driven by an increase in the selling price of ethanol from $1.55 per gallon to $2.49 per gallon on increased volumes of 4.1 million gallons from 40.5 million gallons to 44.6 million gallons.
Gross loss for the first three quarters of 2021 was $4.7 million, compared to gross profit of $14.4 million during the first three quarters of 2020, primarily attributable to high grade alcohol sales during 2020 and of the establishment of a reserve of $5.3 million for a Carbon Credit Allowances made in September 2021.
Selling, general and administrative expenses were $16.2 million during the first three quarters of 2021, compared to $12.5 million during the first three quarters of 2020 as a result of period expenses, specifically salary, professional fees and insurance, incurred as part of the development of our ultra-low carbon initiatives.
3 |
Operating loss was $21.0 million for the first three quarters of 2021, compared to an operating income of $1.7 million for the first three quarters of 2020.
Interest expense was $17.9 million during the first three quarters of 2021, excluding accretion and other expenses of Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to interest expense of $19.5 million during the first three quarters of 2020. Additionally, our Aemetis Biogas LLC subsidiary recognized $7.9 million of accretion and other expenses in connection with preference payments on its preferred stock during the first three quarters of 2021 compared to $4.1 million during the first three quarters of 2020.
Net loss for the first three quarters of 2021 was $46.3 million, compared to a net loss of $22.1 million in 2020.
About Aemetis
Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today's infrastructure.
Aemetis Carbon Zero products include zero-carbon fuels that can "drop-in" to be used in airplanes, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle.
Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel, and biochemicals company focused on the acquisition, development, and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas (RNG). Aemetis owns and operates a 65 million gallon per year ethanol production facility in California's Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India, producing high-quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero Sustainable Aviation Fuel (SAF) and renewable diesel fuel biorefineries in California from renewable oils and orchard and forest waste. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals. For additional information about Aemetis, please visit www.aemetis.com.
4 |
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, gain on extinguishment, income tax expense, intangible and other amortization expense, accretion and other expenses of Series A preferred units, 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. Adjusted EBITDA measures are not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison between companies.
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 relating to our five-year growth plan, expansion of our biogas digestor network, development of our carbon sequestration projects and development of our cellulosic ethanol business in North America. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “view,” “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, biodiesel 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, demand for high grade alcohol and related products, including hand sanitizers, 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, 2020, our Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and September 30, 2021 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.
(Tables follow)
5 |
AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)
|
| Three months ended |
|
| Nine months ended |
| ||||||||||
|
| September 30, |
|
| September 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Revenues |
| $ | 49,895 |
|
| $ | 40,923 |
|
| $ | 147,586 |
|
| $ | 128,227 |
|
Cost of goods sold |
|
| 54,680 |
|
|
| 40,152 |
|
|
| 152,333 |
|
|
| 113,830 |
|
Gross profit (loss) |
|
| (4,785 | ) |
|
| 771 |
|
|
| (4,747 | ) |
|
| 14,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expense |
|
| 22 |
|
|
| 37 |
|
|
| 66 |
|
|
| 175 |
|
Selling, general and admin. expense |
|
| 5,087 |
|
|
| 4,563 |
|
|
| 16,222 |
|
|
| 12,548 |
|
Operating income (loss) |
|
| (9,894 | ) |
|
| (3,829 | ) |
|
| (21,035 | ) |
|
| 1,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate expense |
|
| 4,408 |
|
|
| 5,796 |
|
|
| 14,902 |
|
|
| 16,956 |
|
Debt related fees and Amortization expense |
|
| 1,140 |
|
|
| 674 |
|
|
| 3,045 |
|
|
| 2,578 |
|
Accretion and other expenses of Series A preferred units |
|
| 2,185 |
|
|
| 1,765 |
|
|
| 7,928 |
|
|
| 4,087 |
|
Gain on debt extinguishment |
|
| - |
|
|
| -- |
|
|
| (1,134 | ) |
|
| -- |
|
Other expense (income) |
|
| (30 | ) |
|
| 153 |
|
|
| 483 |
|
|
| 393 |
|
Loss before income taxes |
|
| (17,597 | ) |
|
| (12,217 | ) |
|
| (46,259 | ) |
|
| (22,340 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
|
| -- |
|
|
| -- |
|
|
| 7 |
|
|
| (263 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
| $ | (17,597 | ) |
| $ | (12,217 | ) |
| $ | (46,266 | ) |
| $ | (22,077 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (0.55 | ) |
| $ | (0.59 | ) |
| $ | (1.55 | ) |
| $ | (1.06 | ) |
Diluted |
| $ | (0.55 | ) |
| $ | (0.59 | ) |
| $ | (1.55 | ) |
| $ | (1.06 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 31,857 |
|
|
| 20,861 |
|
|
| 29,818 |
|
|
| 20,732 |
|
Diluted |
|
| 31,857 |
|
|
| 20,861 |
|
|
| 29,818 |
|
|
| 20,732 |
|
6 |
AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
|
| September 30, 2021 |
|
| December 31, 2020 |
| ||
Assets |
| (Unaudited) |
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 6,389 |
|
| $ | 592 |
|
Accounts receivable |
|
| 1,621 |
|
|
| 1,821 |
|
Inventories |
|
| 4,862 |
|
|
| 3,969 |
|
Prepaid and other current assets |
|
| 4,141 |
|
|
| 2,301 |
|
Total current assets |
|
| 17,013 |
|
|
| 8,683 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
| 124,915 |
|
|
| 109,880 |
|
Right-of-use and other assets |
|
| 5,051 |
|
|
| 6,576 |
|
Total assets |
| $ | 146,979 |
|
| $ | 125,139 |
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 13,887 |
|
| $ | 20,739 |
|
Current portion of long term debt |
|
| 9,962 |
|
|
| 44,974 |
|
Short term borrowings |
|
| 13,901 |
|
|
| 14,541 |
|
Mandatorily redeemable Series B stock |
|
| 3,328 |
|
|
| 3,252 |
|
Accrued property taxes |
|
| 6,801 |
|
|
| 5,674 |
|
Accrued contingent litigation fees |
|
| 6,200 |
|
|
| 6,200 |
|
Current portion of Series A preferred units |
|
| 8,660 |
|
|
| 2,015 |
|
Other liabilities |
|
| 11,866 |
|
|
| 4,840 |
|
Total current liabilities |
|
| 74,605 |
|
|
| 102,235 |
|
|
|
|
|
|
|
|
|
|
Total long term liabilities |
|
| 204,467 |
|
|
| 207,648 |
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit: |
|
|
|
|
|
|
|
|
Series B convertible preferred stock |
|
| 1 |
|
|
| 1 |
|
Common stock |
|
| 33 |
|
|
| 23 |
|
Additional paid-in capital |
|
| 192,520 |
|
|
| 93,426 |
|
Accumulated deficit |
|
| (320,346 | ) |
|
| (274,080 | ) |
Accumulated other comprehensive loss |
|
| (4,301 | ) |
|
| (4,114 | ) |
Total stockholders’ deficit |
|
| (132,093 | ) |
|
| (184,744 | ) |
Total liabilities and stockholders' deficit |
| $ | 146,979 |
|
| $ | 125,139 |
|
7 |
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited, in thousands)
Three Months Ended |
|
| Nine Months Ended |
| ||||||||||||
September 30, |
|
| September 30, |
| ||||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Net loss |
| $ | (17,597 | ) |
| $ | (12,217 | ) |
| $ | (46,266 | ) |
| $ | (22,077 | ) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
| 5,548 |
|
|
| 6,470 |
|
|
| 17,947 |
|
|
| 19,534 |
|
Depreciation expense |
|
| 1,342 |
|
|
| 1,253 |
|
|
| 4,106 |
|
|
| 3,515 |
|
Accretion and other expenses of Series A preferred units |
|
| 2,185 |
|
|
| 1,765 |
|
|
| 7,928 |
|
|
| 4,087 |
|
Share-based compensation |
|
| 285 |
|
|
| 191 |
|
|
| 1,401 |
|
|
| 826 |
|
Intangibles and other amortization expense |
|
| 11 |
|
|
| 12 |
|
|
| 35 |
|
|
| 36 |
|
Gain on debt extinguishment |
|
| -- |
|
|
| -- |
|
|
| (1,134 | ) |
|
| -- |
|
Income tax expense (benefit) |
|
| -- |
|
|
| -- |
|
|
| 7 |
|
|
| (263 | ) |
Total adjustments |
|
| 9,371 |
|
|
| 9,691 |
|
|
| 30,290 |
|
|
| 27,735 |
|
Adjusted EBITDA |
| $ | (8,226 | ) |
| $ | (2,526 | ) |
| $ | (15,976 | ) |
| $ | 5,658 |
|
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
|
| Three months ended September 30, |
|
| Nine months ended September 30, |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Ethanol and high grade alcohol |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gallons sold (in millions) |
|
| 13.8 |
|
|
| 15.0 |
|
|
| 44.6 |
|
|
| 40.5 |
|
Average sales price/gallon |
| $ | 2.84 |
|
| $ | 1.59 |
|
| $ | 2.49 |
|
| $ | 1.55 |
|
Percentage of nameplate capacity |
|
| 100 | % |
|
| 111 | % |
|
| 108 | % |
|
| 109 | % |
WDG |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons sold (in thousands) |
|
| 93.2 |
|
|
| 94.2 |
|
|
| 298.6 |
|
|
| 292.2 |
|
Average sales price/ton |
| $ | 96 |
|
| $ | 76 |
|
| $ | 102 |
|
| $ | 79 |
|
Delivered cost of corn |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bushels ground (in millions) |
|
| 4.8 |
|
|
| 5.2 |
|
|
| 15.6 |
|
|
| 15.8 |
|
Average delivered cost / bushel |
| $ | 7.99 |
|
| $ | 4.92 |
|
| $ | 7.62 |
|
| $ | 4.87 |
|
Biodiesel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metric tons sold (in thousands) |
|
| 0.0 |
|
|
| 8.1 |
|
|
| 0.5 |
|
|
| 14.3 |
|
Average sales price/metric ton |
| $ | 0 |
|
| $ | 901 |
|
| $ | 1,024 |
|
| $ | 855 |
|
Percentage of nameplate capacity |
|
| 0 | % |
|
| 22 | % |
|
| 1 | % |
|
| 7 | % |
Refined glycerin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metric tons sold (in thousands) |
|
| 0.0 |
|
|
| 0.6 |
|
|
| 0.1 |
|
|
| 1.1 |
|
Average sales price/metric ton |
| $ | 0 |
|
| $ | 807 |
|
| $ | 956 |
|
| $ | 817 |
|
8 |
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Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Aemetis, Inc.
Aemetis, Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:
Rating
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We are actively seeking higher value markets for our ethanol in an effort to improve our overall margins and to add incremental income to the North America segment, including the development of the Carbon Zero Plants, the expansion of the Biogas Project, and the implementation of the Solar Microgrid System, the installation of the membrane dehydration system and other technologies.
The increase in SG&A expenses for the three months ended September 30, 2021 was due to increases in salaries and wages of $0.2 million, in insurance expense of $0.3 million, in other taxes, interest and penalties of $0.1 million, in professional fees of $0.1 million, and in marketing costs and other of $0.2 million.
The decrease in gross profit was attributable to the decrease of biodiesel and refined glycerin metric tons sold as production of these products became unviable.
This was partially offset by a decrease in bad debt expense of $0.6 million.
The decrease in gross profit was attributable to decrease in the sales volume of all products of 96% to 584 metric tons.
Ethanol pricing is influenced by...Read more
Interest expense decreased in the...Read more
Interest expense decreased in the...Read more
SG&A expenses increased as result...Read more
Gross profit decreased due a...Read more
In addition, refined glycerin sales...Read more
The non-cash charges consisted of:...Read more
The decrease in cost of...Read more
The decrease in biodiesel volumes...Read more
Other (income) expense consists primarily...Read more
Biodiesel sales volume decreased to...Read more
Funding for continued construction is...Read more
In the three months ended...Read more
The average price of WDG...Read more
The average sales price of...Read more
To the extent that we...Read more
Cash provided by financing activities...Read more
Other expenses decreased due to...Read more
SG&A expenses as a percentage...Read more
The decrease in revenues for...Read more
43 For the India plant,...Read more
SG&A as a percentage of...Read more
Factors that could cause or...Read more
We operate in a volatile...Read more
For the Keyes Plant, we...Read more
SG&A expenses as a percentage...Read more
The fair value of stock...Read more
Our average cost of corn...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Aemetis, Inc provided additional information to their SEC Filing as exhibits
Ticker: AMTX
CIK: 738214
Form Type: 10-Q Quarterly Report
Accession Number: 0001654954-21-012030
Submitted to the SEC: Fri Nov 12 2021 8:31:07 AM EST
Accepted by the SEC: Fri Nov 12 2021
Period: Thursday, September 30, 2021
Industry: Industrial Organic Chemicals