Aemetis, Inc. Reports Second Quarter 2016 Financial Results

Aemetis, Inc. an advanced renewable fuels and biochemicals company, today announced its financial results for the three and six months ended June 30, 2016.

“Pricing during the quarter improved compared to the same period last year, and gross profit for the first half of 2016 improved significantly over the first half of 2015 based upon favorable pricing on inputs and finished products as well as a grant from the California Energy Commission,” said Eric McAfee, Chairman and CEO of Aemetis, Inc. “We expect to implement Edeniq’s cellulosic ethanol technology at our Keyes plant in the first quarter of 2017, which we believe will substantially improve cash flow by increasing the number of gallons of ethanol and distillers oil produced at our plant, as well as generating valuable D3 biofuel RINs when the EPA approves Edeniq’s company registration,” added McAfee.

Aemetis is working to close the acquisition of Edeniq in the third quarter.

Today, Aemetis will host an earnings review call at 10:00 am Pacific (PT).

Live Participant Dial In (Toll Free): 877-407-8133
Live Participant Dial In (International): 201-689-8040

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

Financial Results for the Three Months Ended June 30, 2016

Revenues were $33.1 million for the second quarter of 2016, compared to $38.1 million for the second quarter of 2015. The decline in revenue was primarily attributable to decreases in ethanol and wet distiller’s grain volumes. Gross margin for the second quarter of 2016 was $1.9 million, the same as the gross margin of $1.9 million during the second quarter of 2015.

Selling, general and administrative expenses were $2.9 million in the second quarter of 2016, compared to $3.1 million in the second quarter of 2015. The decrease in selling, general and administrative expenses was driven by lower spending in the areas of salaries and stock compensation compared to the same period of the prior year.

Operating loss was $1.1 million for the second quarter of 2016, compared to an operating loss of $1.3 million for the same period in 2015.

Net loss was $5.0 million for the second quarter of 2016, compared to a net loss of $6.3 million for the second quarter of 2015.

We continue to experience good operational results from our North America ethanol business with gross margins at 7.5% of segment revenues. Our largest contributor to the net loss is interest expense of $4.4 million. We continue to search for lower cost capital through a combination of debt refinancing as well as escrow releases from the first EB-5 financing.

The fundamental health and improvement in our operating North America business is reflected in Adjusted EBITDA for the second quarter of 2016, which increased to $960 thousand compared to Adjusted EBITDA of $208 thousand for the same period in 2015.

Cash at the end of the second quarter of 2016 was $591 thousand compared to $283 thousand at the end of the fourth quarter of 2015.

Financial Results for the Six Months Ended June 30, 2016

Revenues were $66.4 million for the first half of 2016, compared to $72.8 million for the first half of 2015. Decrease in ethanol and wet distiller’s grain volumes in the first half of 2016 compared to the first half of 2015 resulted in revenue decline for the first 6 months of 2016. Gross profit for the first half of 2016 was $4.0 million, a significant increase from $1.7 million during the first half of 2015. During this period, gross profit growth was attributable to ethanol pricing improving slightly in addition to the receipt of sorghum grant funds from the California Energy Commission.

Selling, general and administrative expenses were $5.9 million during the first half of 2016, compared to $6.8 million during the first half of 2015. The decrease in selling, general and administrative expenses was primarily attributable to decreases in both salaries and stock compensation and professional fees during the first half of 2016.

Operating loss decreased to $2.1 million for the first half of 2016, compared to operating loss of $5.3 million for the same period in 2015.

Net loss of $10.1 million for the first half of 2016 decreased in comparison to a net loss of $14.9 million during the first half of 2015.

Our largest contributor to the net loss is interest expense during the first half of 2016 of $8.5 million, compared to $9.2 million during the first half of 2015 due to the lower cost of EB-5 funds, at a 3% interest, in the capitalization structure.

The fundamental health and improvement in our operating North America business is reflected in Adjusted EBITDA for the first half of 2016, which was $1.2 million, an improvement of $3.6 million compared to Adjusted EBITDA loss of $2.5 million for the same period in 2015.

During the first half of 2016, we signed two licensing technology agreements related to the upgrade of the Keyes plant to produce cellulosic ethanol.