Form 8-K AEMETIS, INC For: Aug 06
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E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2015
AEMETIS, INC.
(Exact name of registrant as specified in its charter)
______________
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Nevada
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000-51354
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26-1407544
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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20400 Stevens Creek Blvd., Suite 700
Cupertino, California 95014
(Address of Principal Executive Office) (Zip Code)
(408) 213-0940
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 6, 2015, Aemetis, Inc. (the “Company”) issued a press release announcing its financial and operating results for the quarter ended SeJuneer 30, 2015. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No.
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Description
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Press Release dated August 6, 2015.
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2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
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Aemetis, Inc.
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August 6, 2015
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By:
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/s/ Eric A. McAfee
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Eric A. McAfee
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Chief Executive Officer
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3
Exhibit 99.1
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Investor Relations:
Michael Bayes
(415) 389-4670
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Company &Media Contact:
Satya Chillara
(408) 213-0939
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Aemetis, Inc. Reports Second Quarter 2015 Financial Results
CUPERTINO, Calif. – August 6, 2015 - Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and renewable chemicals company, today announced its financial results for the three and six months ended June 30, 2015.
“Our US ethanol business delivered sequential improvement in profitability and revenue,” stated Eric McAfee, Chairman and CEO of Aemetis. “Our India biodiesel business grew 161% sequentially through the development of a sustainable domestic customer base, which was made possible by key government policy changes earlier in the year. Continuation of this rapid customer acceptance and adoption places us on a strong path to year over year revenue growth.”
“Importantly, we received an additional $2.5 million of EB-5 subordinated debt funding during the second quarter. As of July 30, 2015, escrow account holds $11.5 million of EB-5 funding and an additional $3.0 million to be received into escrow later this year. This 3% interest rate funding will redeem higher rate senior debt,” said McAfee.
Financial Results for the Three Months Ended June 30, 2015
Revenues were $38.1 million for the second quarter of 2015, compared to $57.2 million for the second quarter of 2014. Decrease in ethanol and wet distiller’s grain average selling price resulted in revenue decline during the second quarter. Gross profit for the second quarter of 2015 was $2.0 million, compared to $11.4 million in the second quarter of 2014. During this period, ethanol and wet distiller’s grain pricing fell more rapidly than feedstock purchase cost.
Selling, general and administrative expenses were $3.1 million in the second quarter of 2015, compared to $3.4 million in the second quarter of 2014. The decrease in selling, general and administrative expenses was driven by improved efficiencies and lower spending compared to the same period of the prior year.
Operating loss was $1.3 million for the second quarter of 2015 compared to operating income of $7.8 million for the same period in 2014.
Net loss of $6.3 million for the second quarter of 2015 compared to net income of $2.7 million for the second quarter of 2014.
Adjusted EBITDA for the second quarter of 2015 was a loss of $0.2 million, compared to Adjusted EBITDA of $9.1 million for the same period in 2014.
Cash at the end of the second quarter of $3.3 million compared favorably to $0.3 million at the close of 2014.
During the second quarter of 2015, the EB-5 program provided $2.5 million of low-cost debt funding. Interest costs during the second quarter of 2015 were $4.9 million, slightly lower than the interest costs during the second quarter of 2014.
Financial Results for the Six Months Ended June 30, 2015
Revenues were $72.8 million for the first half of 2015, compared to $117.9 million for the first half of 2014. Decrease in ethanol and wet distiller’s grain average selling price resulted in revenue decline for the first 6 months. Gross profit for the first half of 2015 was $1.7 million, compared to $27.0 million during the first half of 2014. During this period, ethanol and wet distiller’s grain pricing fell more rapidly than feedstock purchase cost.
Selling, general and administrative expenses were $6.8 million during the first half of 2015, compared to $6.3 million during the first half of 2014. The increase in selling, general and administrative expenses was primarily attributable to a one-time EB-5 charge taken during the first quarter of 2015.
Operating loss was $5.3 million for the first half of 2015, compared to operating income of $20.4 million for the same period in 2014.
Net loss of $14.9 million for the first half of 2015 compared to net income of $10.4 million during the first half of 2014.
Adjusted EBITDA for the first half of 2015 was $2.5 million, compared to Adjusted EBITDA of $23.2 million for the same period in 2014.
During the first half of 2015, the EB-5 program provided $20.0 million of low-cost EB-5 debt funding. Interest costs during the first half of 2015 were $9.5 million, compared to $10.2 during the first half of 2014 due to the lower cost of EB-5 funds in the capitalization structure.
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 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 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, expectations for year over year revenue growth driven by increasing sales in India, expectations for uses of EB-5 funding and expectations for receipt of 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, 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, 2014, our Quarterly Report on Form 10-Q for the quarter ended June 30, 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)
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For the three months ended June 30
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For the six months ended June 30
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(in thousands, except per share)
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2015
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2014
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2015
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2014
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Revenues
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$ | 38,067 | $ | 57,195 | $ | 72,793 | $ | 117,860 | ||||||||
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Cost of goods sold
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36,118 | 45,842 | 71,072 | 90,883 | ||||||||||||
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Gross profit
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1,949 | 11,353 | 1,721 | 26,977 | ||||||||||||
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Research and development expenses
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104 | 141 | 213 | 241 | ||||||||||||
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Selling, general and administrative expenses
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3,149 | 3,449 | 6,782 | 6,291 | ||||||||||||
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Operating income/(loss)
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(1,303 | ) | 7,763 | (5,274 | ) | 20,445 | ||||||||||
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Interest rate expense
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(2,485 | ) | (2,530 | ) | (5,031 | ) | (5,450 | ) | ||||||||
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Amortization expense
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(2,405 | ) | (2,502 | ) | (4,128 | ) | (4,620 | ) | ||||||||
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Loss on debt extinguishment
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- | - | (330 | ) | (115 | ) | ||||||||||
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Gain (loss) on sale or disposal of assets
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- | (119 | ) | - | (119 | ) | ||||||||||
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Other income/(expense)
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(94 | ) | 110 | (161 | ) | 274 | ||||||||||
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Income/(loss) before income taxes
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(6,287 | ) | 2,722 | (14,924 | ) | 10,415 | ||||||||||
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Income tax expense
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- | - | (6 | ) | (6 | ) | ||||||||||
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Net income/(loss)
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$ | (6,287 | ) | $ | 2,722 | $ | (14,930 | ) | $ | 10,409 | ||||||
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Net Income/(loss) per common share*
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Basic
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$ | (0.32 | ) | $ | 0.13 | $ | (0.74 | ) | $ | 0.52 | ||||||
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Diluted
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$ | (0.32 | ) | $ | 0.13 | $ | (0.74 | ) | $ | 0.49 | ||||||
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Weighted average shares outstanding*
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Basic
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19,590 | 20,284 | 20,090 | 20,146 | ||||||||||||
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Diluted
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19,590 | 20,948 | 20,090 | 21,299 | ||||||||||||
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* The Earnings per share and Weighted average shares outstanding for all periods presented reflect the one-for-ten reverse split, which took effect May 15, 2014.
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AEMETIS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited, in thousands)
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June 30,
2015
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December 31, 2014
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Assets
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||||||||
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Current assets:
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Cash and cash equivalents
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$ | 3,325 | $ | 332 | ||||
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Accounts receivable
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2,143 | 1,262 | ||||||
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Inventories
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5,427 | 4,491 | ||||||
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Prepaid expenses and Other current assets
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1,364 | 1,848 | ||||||
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Total current assets
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12,259 | 7,933 | ||||||
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Property, plant and equipment, Net
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73,376 | 75,810 | ||||||
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Goodwill, Intangibles and Other assets
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5,516 | 5,433 | ||||||
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Total assets
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$ | 91,151 | $ | 89,176 | ||||
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Liabilities and stockholders' equity/(deficit)
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Current liabilities:
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| Accounts payable | 8,208 | 8,339 | ||||||
| Current portion of long term debt, notes and working capital | 6,399 | 6,032 | ||||||
| Short term borrowings | 8,382 | 6,714 | ||||||
| Mandatorily redeemable Series B convertible preferred stock | 2,690 | 2,641 | ||||||
| Other current liabilities | 4,294 | 3,590 | ||||||
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Total current liabilities
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29,973 | 27,316 | ||||||
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Long term liabilities
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Senior secured notes
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57,375 | 57,648 | ||||||
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EB-5 notes
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21,685 | 1,534 | ||||||
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Other long term
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5,800 | 5,650 | ||||||
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Stockholders' deficit
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(23,682 | ) | (2,972 | ) | ||||
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Total liabilities and stockholders' equity/(deficit)
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$ | 91,151 | $ | 89,176 | ||||
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME/(LOSS)
(unaudited, in thousands)
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For the three months ended June 30
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For the six months ended June 30
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2015
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2014
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2015
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2014
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Net income/(loss)
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$ | (6,287 | ) | $ | 2,722 | $ | (14,930 | ) | $ | 10,409 | ||||||
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Adjustments:
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Interest rate expense
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2,485 | 2,530 | 5,031 | 5,450 | ||||||||||||
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Amortization expense
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2,405 | 2,502 | 4,128 | 4,620 | ||||||||||||
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Loss on debt extinguishment
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- | - | 330 | 115 | ||||||||||||
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Income tax expense
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- | - | 6 | 6 | ||||||||||||
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Intangibles and other amortization expense
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32 | 32 | 64 | 64 | ||||||||||||
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Depreciation expense
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1,193 | 1,150 | 2,388 | 2,302 | ||||||||||||
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Share-based compensation
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380 | 159 | 533 | 290 | ||||||||||||
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Total adjustments
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6,495 | 6,373 | 12,480 | 12,847 | ||||||||||||
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Adjusted EBITDA
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$ | 208 | $ | 9,095 | $ | (2,450 | ) | $ | 23,256 | |||||||
PRODUCTION AND PRICE PERFORMANCE
(unaudited)
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For the three months ended June 30,
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For the six months ended June 30,
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2015
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2014
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2015
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2014
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Ethanol
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Gallons sold (in millions)
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14.2 | 14.9 | 28.4 | 31.0 | ||||||||||||
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Average sales price/gallon
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$ | 1.78 | $ | 2.74 | $ | 1.73 | $ | 2.83 | ||||||||
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WDG
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Tons sold (in thousands)
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93.5 | 101.9 | 187.2 | 214.4 | ||||||||||||
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Average sales price/ton
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$ | 82 | $ | 115 | $ | 86 | $ | 106 | ||||||||
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Biodiesel
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Metric tons sold (in thousands)
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3.6 | 3.1 | 4.4 | 4.1 | ||||||||||||
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Average sales price/metric ton
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$ | 802 | $ | 921 | $ | 836 | $ | 933 | ||||||||
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Refined Glycerin
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Metric tons sold (in thousands)
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1.6 | 0.4 | 2.7 | 1.0 | ||||||||||||
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Average sales price/metric ton
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$ | 661 | $ | 964 | $ | 668 | $ | 1,004 | ||||||||
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