CUPERTINO, CA--(Marketwired - May 7, 2015) - Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and renewable chemicals company, today announced its financial results for the three months ended March 31, 2015.

"Our US ethanol operating results reflect the current industry experience of reduced margins during the first quarter, but we are seeing improving margins during the second quarter," stated Eric McAfee, Chairman and CEO of Aemetis. "Our India biodiesel business benefited from key government policy changes and achieved customer testing milestones during the first quarter. Biodiesel revenues are now growing consistently in India with repeat shipments to bulk customers in the truck, bus and stationary diesel engine markets."

"Importantly, we received $17 million at a 3% interest rate from EB-5 subordinated debt funding during the first quarter, and have an additional $7 million of EB-5 funding in escrow and $10 million more in proceeds expected to be received by the company later this year. This low-cost funding is being used to repay our senior debt. We also have reduced the number of shares outstanding by 1.5 million shares to 19.5 million shares," said McAfee.

Financial Results for the Three Months Ended March 31, 2015

Revenues were $34.7 million for the first quarter of 2015, compared to $60.7 million for the first quarter of 2014. Gross loss for the first quarter of 2015 was $0.2 million, compared to a gross profit of $15.6 million in the first quarter of 2014. The decreases in revenues and gross profit were primarily attributable to a decline in ethanol sales price per gallon as well as lower Wet Distiller's Grain (WDG) sales price per ton. WDG pricing suffered from reduced dairy production in California, as well as lower overall feed prices in the marketplace.

Selling, general and administrative ("SG&A") expenses were $3.6 million in the first quarter of 2014, compared to $2.8 million in the first quarter of 2014. The increase in SG&A expenses was primarily attributable to an increase in financial and consultant advisory services, including legal and other costs related to the EB-5 offering.

We experienced an operating loss of $4.0 million for the first quarter of 2015, compared to operating income of $12.7 million for the same period in 2014.

Net loss for the first quarter of 2015 was $8.6 million, compared to net income of $7.7 million for the first quarter of 2014.

Adjusted EBITDA for the first quarter of 2015 was a loss of $2.7 million, compared to Adjusted EBITDA of $14.2 million for the same period in 2014.

Cash at the end of the first quarter was $5.5 million, compared to about $300,000 of cash at the close of 2014.

During the first quarter of 2015, $17 million of low-cost EB-5 debt funding was received. Interest costs during the first quarter were $2.5 million, a reduction from $2.9 million of interest costs in the first quarter of 2014.

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and renewable chemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the 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 the California 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 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 and amortization (income)/expense, depreciation expense, income/(expense) from share-based compensation and (gains)/losses resulting from debt extinguishment.

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 our improving margins for the second quarter of 2015, growing revenues in India and additional EB-5 funding. 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, 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, 2014, our Quarterly Report on Form 10-Q for the quarter ended March 31, 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.

(Tables follow)

   
AEMETIS, INC.  
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS  
(unaudited, in thousands except per share data)  
   
   Three months ended  
   March 31  
   2015    2014  
Revenues   $ 34,726     $ 60,665  
Cost of goods sold     34,954       45,041  
Gross profit/(loss)     (228 )     15,624  
                 
Research and development expenses     109       100  
Selling, general and administrative expenses     3,634       2,842  
Operating income/(loss)     (3,971 )     12,682  
                 
Other income/(expense)                
  Interest expense                
    Interest rate expense     (2,546 )     (2,920 )
    Amortization expense     (1,723 )     (2,118 )
    Loss on debt extinguishment     (330 )     (115 )
  Other income/(expense)     (67 )     164  
Income/(loss) before income taxes     (8,637 )     7,693  
                 
Income tax expense     (6 )     (6 )
                 
Net income/(loss)   $ (8,643 )   $ 7,687  
                 
Net income/(loss) per common share*                
  Basic   $ (0.42 )   $ 0.38  
  Diluted   $ (0.42 )   $ 0.34  
                 
Weighted average shares outstanding*                
  Basic     20,595       20,007  
  Diluted     20,595       22,657  
                 
* The Earnings per share and Weighted average shares outstanding for all periods presented reflect the one-for-ten reverse split, which took effect on May 15, 2014.
   
   
AEMETIS, INC.  
CONSOLIDATED CONDENSED BALANCE SHEETS  
(unaudited, in thousands)  
   
   March 31,
2015		    December 31,
2014		  
Assets                
Current assets:                
  Cash and cash equivalents   $ 5,509     $ 332  
  Accounts receivable     1,651       1,262  
  Inventories     4,641       4,491  
  Prepaid expenses and other current assets     1,317       1,848  
Total current assets     13,118       7,933  
                 
  Property, plant and equipment, net     74,764       75,810  
  Goodwill, intangible and other assets     5,432       5,433  
Total assets  $93,314    $89,176  
                 
Liabilities and stockholders' deficit                
Current liabilities:                
  Accounts payable     8,909       8,339  
  Current portion of long term debt, notes and working capital     12,138       12,746  
  Mandatorily redeemable Series B convertible preferred stock     2,665       2,641  
  Other current liabilities     4,185       3,509  
Total current liabilities     27,897       27,316  
                 
Long term liabilities                
  Senior secured notes     56,157       57,648  
  EB-5 notes     19,075       1,534  
  Other long term     5,784       5,650  
                 
Total stockholders' deficit   $ (15,599 )   $ (2,972 )
                 
Total liabilities and stockholders' deficit  $93,314    $89,176  
                 
 
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
 
   Three months ended
   March 31
   2015    2014
Net income/(loss)   $ (8,643 )   $ 7,687
Adjustments:              
  Interest rate expense     2,546       2,920
  Amortization expense     1,723       2,118
  Loss on debt extinguishment     330       115
  Income tax expense     6       6
  Intangibles and other amortization expense     32       32
  Depreciation expense     1,195       1,152
  Share-based compensation     153       131
Total adjustments     5,985       6,468
Adjusted EBITDA   $ (2,658 )   $ 14,155
               
 
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
 
   Three months ended
March 31
   2015  2014
Ethanol            
Gallons sold (in 000s)     14,242     16,118
Average sales price/gallon   $ 1.67   $ 2.91
             
WDG            
Tons sold (in 000s)     94     112
Average sales price/ton   $ 90.07   $ 98.57
             
Biodiesel            
Metric tons sold     812     993
Average sales price/metric ton   $ 986   $ 968
             
Refined Glycerin            
Metric tons sold     1,059     565
Average sales price/metric ton   $ 679   $ 1,031