Aemetis Reports Second Quarter 2023 Financial Results

Date:

Aemetis, Inc.

Aemetis, Inc.

India Biodiesel Generates Revenues of $33.6 million from Supply to India Oil Marketing Companies

CUPERTINO, CA, Aug. 03, 2023 (GLOBE NEWSWIRE) — via NewMediaWire – Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and renewable fuels company focused on negative carbon intensity products, today announced its financial results for the three and six months ended June 30, 2023.

“Revenues of $45.1 million for the second quarter of 2023 reflect our India Biodiesel segment fulfilling $33.6 million of supply contracts from the three Oil Marketing Companies combined with the restart of the Keyes plant in late May as we completed the maintenance cycle which allowed for the acceleration of the implementation of several important ethanol plant efficiency upgrades,” said Todd Waltz, Chief Financial Officer of Aemetis.  “Investments in capital projects were $9.8 million for the first half of 2023 as our engineering and construction teams moved forward with the initiatives outlined in our Five-Year Plan,” added Waltz.

“We are pleased with the many milestones accomplished during the first half of 2023 regarding the Aemetis Biogas assets brought into service including seven biogas digesters and a 40-mile biogas pipeline; our India team fulfilling India government OMC biodiesel sales contracts at our India plant; land and air permitting progress for the Riverbank SAF/RD plant; permitting progress for the Aemetis Carbon Capture business that resulted in the first CO2 characterization well permit issued by the State of California; solar, ZEBREX, MVR and other energy efficiency projects at the Keyes ethanol plant supported by $16.7 million of California Energy Commission and PG&E utility grants; and restarting the Keyes plant in late May during a period of high margins for the ethanol industry,” said Eric McAfee, Chairman and CEO of Aemetis.

We invite investors to review the Aemetis Corporate Presentation on the Aemetis home page prior to the earnings call. On Thursday, August 3, 2023, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).

Live Participant Dial In (Toll Free): +1-888-506-0062 enter code 340104
Live Participant Dial In (International): +1-973-528-0011 enter code 340104
Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/48845

For details on the call, please visit http://www.aemetis.com/investors/conference-calls/

Financial Results for the Three Months Ended June 30, 2023

Revenues during the second quarter of 2023 were $45.1 million compared to $65.9 million for the second quarter of 2022, principally driven by $33.6 million of sales from India Biodiesel. Our California Ethanol operations restarted after an extended maintenance cycle which allowed for the acceleration of the implementation of several important ethanol plant efficiency upgrades, allowing for the generation of $11.3 million of revenues during late May and June. Delivered corn price decreased significantly from an average price of $10.21 per bushel during the second quarter of 2022 to $6.84 per bushel during the second quarter of 2023.

Gross profit for the second quarter of 2023 was $2.0 million, a significant improvement compared to a $0.2 million gross loss during the second quarter of 2022.

Selling, general and administrative expenses were $9.7 million during the second quarter of 2023, compared to $7.4 million during the second quarter of 2022, including $1.3 million for fixed costs of goods sold that were allocated to selling, general and administrative during the Keyes plant maintenance period. SG&A included $1.8 million of non-cash expense related to stock options and other consideration issued under stock incentive plans.

Operating loss was $7.8 million and $7.7 million each for the second quarter of 2023 and 2022.

Interest expense during the second quarter of 2023 was $9.6 million, excluding accretion and other expenses in connection with Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to $6.7 million during the second quarter of 2022. Additionally, our Aemetis Biogas LLC subsidiary recognized $6.9 million of accretion and other expenses in connection with preference payments on its preferred stock during the second quarter of 2023 compared to $1.5 million during the second quarter of 2022.

Net loss was $25.3 million for the second quarter of 2023, compared to a net loss of $209 thousand for the second quarter of 2022, including the impact in 2022 of a grant of $14.2 million received from the United States Department of Agriculture (“USDA”) Biofuel Producer Program and the release of a litigation reserve of $1.4 million.

Our India plant contributed $5.1 million of Adjusted EBITDA during the three months ended June 30, 2023, offset by Adjusted EBITDA from the restart of the Keyes plant and other operations, for a total company negative Adjusted EBITDA of $4.2 million for the second quarter of 2023.

Cash at the end of the quarter was $3.5 million, compared to $4.3 million at the close of 2022.

Financial Results for the Six Months Ended June 30, 2023

Revenues were $47.3 million for the first half of 2023, compared to $118.0 million for the first half of 2022, primarily generated from India Biofuels supplying fuel under contracts with India government oil marketing companies and offset by the extended maintenance cycle which allowed for the acceleration of the implementation of several important ethanol plant efficiency upgrades at the Keyes plant during the first half of 2023.

Gross profit for the first half of 2023 was $661 thousand, a significant improvement compared to a gross loss of $3.3 million during the first half of 2022.

Selling, general and administrative expenses were $20.5 million during the first half of 2023, compared to $14.7 million during the first half of 2022, including $4.0 million of fixed costs of goods sold charged to selling, general and administrative during the Keyes plant maintenance period.

Operating loss was $19.9 million for the first half of 2023, compared to $18.1 million for the first half of 2022.

Interest expense was $18.7 million during the first half of 2023, excluding accretion and other expenses of Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to interest expense of $12.9 million during the first half of 2022. Additionally, our Aemetis Biogas LLC subsidiary recognized $12.4 million of accretion and other expenses in connection with preference payments on its preferred stock during the first half of 2023 compared to $3.1 million during the first half of 2022.

Net loss for the first half of 2023 was $51.7 million and Adjusted EBITDA was negative $11.8 million during the ethanol plant maintenance, upgrade and restart process, compared to a net loss of $18.5 million and Adjusted EBITDA of $3 million during the same period of 2022. Included in net income for 2022 is the receipt of a grant of $14.2 million from the United States Department of Agriculture (“USDA”) Biofuel Producer Program and the release of a litigation reserve of $1.4 million.

Investments in capital projects of $9.8 million were made during the first half of 2023.   Investments in capital projects related to Aemetis Biogas were $7.8 million. Investments in capital projects related to the reduction of the carbon intensity of Aemetis ethanol and other initiatives were $2.0 million.

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, trucks, 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. 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 to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. 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

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, income tax expense, intangible and other amortization expense, accretion expense, depreciation expense, loss on lease termination, gain on litigation, 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 relating to our five-year growth plan, future growth in revenue, expansion into new markets, our ability to commercialize and scale the licensed patented technology, the ability to obtain sufficiently low Carbon Intensity scores to achieve below zero carbon intensity transportation fuels, the development of the Aemetis Biogas Dairy project, the development of the Aemetis Carbon Zero plant at the Riverbank site, the upgrades to the Aemetis Keyes ethanol plant, the development of the Aemetis Carbon Capture projects, and the ability to access the funding required to execute on project construction and operations.  Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “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, 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, 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, 2022, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 and June 30, 2023 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.

External Investor Relations Contact:
Kirin Smith
PCG Advisory Group
(646) 863-6519
[email protected]

 

 

Company Investor Relations/
Media Contact:
Todd Waltz
(408) 213-0940
[email protected]

 

(Tables follow)

AEMETIS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share data)

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

Revenues

$

45,112

 

 

$

65,901

 

 

$

47,263

 

 

$

117,950

 

 

 

 

Cost of goods sold

 

43,156

 

 

 

66,115

 

 

 

46,602

 

 

 

121,249

 

 

 

 

Gross profit (loss)

 

1,956

 

 

 

(214

)

 

 

661

 

 

 

(3,299

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expense

 

37

 

 

 

51

 

 

 

79

 

 

 

87

 

 

 

 

Selling, general and admin. expense

 

9,709

 

 

 

7,421

 

 

 

20,495

 

 

 

14,727

 

 

 

 

Operating loss

 

(7,790

)

 

 

(7,686

)

 

 

(19,913

)

 

 

(18,113

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

Interest rate expense

 

8,299

 

 

 

4,928

 

 

 

15,377

 

 

 

9,363

 

 

 

 

Debt related fees and Amortization expense

 

1,330

 

 

 

1,740

 

 

 

3,299

 

 

 

3,566

 

 

 

 

Accretion and other expenses of Series A
preferred units

 

6,885

 

 

 

1,506

 

 

 

12,449

 

 

 

3,146

 

 

 

 

Gain on litigation

 

 

 

 

(1,400

)

 

 

 

 

 

(1,400

)

 

 

 

Other income

 

(91

)

 

 

(14,254

)

 

 

(167

)

 

 

(14,295

)

 

 

 

Loss before income taxes

 

(24,213

)

 

 

(206

)

 

 

(50,871

)

 

 

(18,493

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

1,066

 

 

 

3

 

 

 

818

 

 

 

10

 

 

 

 

Net loss

$

(25,279

)

 

$

(209

)

 

$

(51,689

)

 

$

(18,503

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.68

)

 

$

(0.01

)

 

$

(1.40

)

 

$

(0.54

)

 

 

 

Diluted

$

(0.68

)

 

$

(0.01

)

 

$

(1.40

)

 

$

(0.54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

Basic

 

37,179

 

 

 

34,536

 

 

 

36,804

 

 

 

34,128

 

 

 

 

Diluted

 

37,179

 

 

 

34,536

 

 

 

36,804

 

 

 

34,128

 

 

 

 

AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited, in thousands)

 

June 30, 2023

 

December 31, 2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,494

 

 

$

4,313

 

Accounts receivable

 

6,157

 

 

 

1,264

 

Inventories

 

7,463

 

 

 

4,658

 

Prepaid and other current assets

 

3,794

 

 

 

7,901

 

Total current assets

 

20,908

 

 

 

18,136

 

 

 

 

 

Property, plant and equipment, net

 

182,783

 

 

 

180,441

 

Other assets

 

8,894

 

 

 

8,537

 

Total assets

$

212,585

 

 

$

207,114

 

 

 

 

 

Liabilities and stockholders’ deficit

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

30,306

 

 

$

26,168

 

Current portion of long-term debt

 

21,458

 

 

 

12,465

 

Short term borrowings

 

41,396

 

 

 

36,754

 

Mandatorily redeemable Series B stock

 

4,289

 

 

 

4,082

 

Accrued property taxes and other liabilities

 

11,472

 

 

 

8,812

 

Total current liabilities

 

108,921

 

 

 

88,281

 

 

 

 

 

Total long term liabilities

 

342,601

 

 

 

320,687

 

 

 

 

 

Total stockholders’ deficit:

 

 

 

 

 

 

 

Series B convertible preferred stock

 

1

 

 

 

1

 

Common stock

 

38

 

 

 

36

 

Additional paid-in capital

 

247,017

 

 

 

232,546

 

Accumulated deficit

 

(480,674

)

 

 

(428,985

)

Accumulated other comprehensive loss

 

(5,319

)

 

 

(5,452

)

Total stockholders’ deficit

 

(238,937

)

 

 

(201,854

)

Total liabilities and stockholders’ deficit

$

212,585

 

 

$

207,114

 

 

 

 

 

 

RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited, in thousands)

 

Three Months Ended

 

Six Months Ended
June 30,

 

 

June 30,

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

Net loss

$

(25,279

)

 

$

(209

)

 

$

(51,689

)

 

$

(18,503

)

 

Adjustments:

 

 

 

 

 

 

 

 

Interest expense

 

9,629

 

 

 

6,668

 

 

 

18,676

 

 

 

12,929

 

 

Depreciation expense

 

1,671

 

 

 

1,325

 

 

 

3,461

 

 

 

2,661

 

 

Accretion and other expenses of Series
A preferred units

 

6,885

 

 

 

1,506

 

 

 

12,449

 

 

 

3,146

 

 

Share-based compensation

 

1,755

 

 

 

1,349

 

 

 

4,417

 

 

 

3,389

 

 

Intangibles and other amortization

 

11

 

 

 

11

 

 

 

23

 

 

 

23

 

 

Loss on lease termination

 

 

 

 

736

 

 

 

 

 

 

736

 

 

Gain on litigation

 

 

 

 

(1,400

)

 

 

 

 

 

(1,400

)

 

Income tax expense

 

1,066

 

 

 

3

 

 

 

818

 

 

 

10

 

 

Total adjustments

 

21,017

 

 

 

10,198

 

 

 

39,844

 

 

 

21,494

 

 

Adjusted EBITDA

$

(4,262

)

 

$

9,989

 

 

$

(11,845

)

 

$

2,991

 

 

PRODUCTION AND PRICE PERFORMANCE
(unaudited)

 

 

 

 

 

 

 

 

 

 

Three months ended
June 30,

 

 

Six months ended
June 30,

 

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

2022

 

Ethanol

 

 

 

 

 

 

 

 

 

Gallons sold (in millions)

 

2.8

 

 

 

15.2

 

 

 

2.9

 

 

 

29.9

 

 

 

Average sales price/gallon

$

3.12

 

 

$

3.13

 

 

$

3.08

 

 

$

2.86

 

 

 

Percentage of nameplate capacity

 

20

%

 

 

111

%

 

 

11

%

 

 

109

%

 

 

WDG

 

 

 

 

 

 

 

 

 

Tons sold (in thousands)

 

24.3

 

 

 

104.0

 

 

 

24.3

 

 

 

204.4

 

 

 

Average sales price/ton

$

105

 

 

$

146

 

 

$

105

 

 

$

130

 

 

 

Delivered cost of corn

 

 

 

 

 

 

 

 

 

Bushels ground (in millions)

 

1.4

 

 

 

5.3

 

 

 

1.4

 

 

 

10.4

 

 

 

Average delivered cost / bushel

$

6.84

 

 

$

10.21

 

 

$

7.17

 

 

$

9.50

 

 

 

Dairy Renewable Natural Gas

 

 

 

 

 

 

 

 

 

MMBtu produced (in thousands)

 

54.1

 

 

 

14.9

 

 

 

75.4

 

 

 

28.9

 

 

 

MMBtu stored as inventory (in thousands)

 

86.7

 

 

 

 

 

 

 

 

 

Biodiesel

 

 

 

 

 

 

 

 

 

Metric tons sold (in thousands)

 

25.7

 

 

 

 

 

 

28.1

 

 

 

 

 

 

Average sales price per metric ton

$

1,276

 

 

 

 

 

$

1,210

 

 

 

 

 

 

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