Record quarterly gross profit, operating income and adjusted EBITDA
Record annual gross profit, operating income and adjusted EBITDA
$4.9 million of cash as of December 31, 2013
Paid more than $12.0 million of principal and interest on debt during 2013 and during the first quarter of 2014
Aemetis, Inc. (OTC.QB: AMTX), the largest producer of biofuels in California and the largest US-owned biofuels producer in Asia, today announced its financial results for the three- and twelve-months ended December 31, 2013.
“Our fourth quarter 2013 results reflect a year of record financial performance and significant progress for Aemetis,” said Eric McAfee, Chairman and CEO of Aemetis, Inc. “During 2013, we diversified our feedstock. After retrofitting and restarting our plant in May 2013, we processed about 84 million pounds (42,000 tons) of grain sorghum; became the first US ethanol plant approved by the EPA to produce lower-carbon, higher-value Advanced Biofuels (and to receive D5 RINs) using sorghum/biogas/CHP; and upgraded our India plant by constructing and commissioning a biodiesel distillation unit. These efforts translated into record levels of revenue from our India operations, and company-wide records for operating income and Adjusted EBITDA,” added McAfee.
Financial Results for the Three Months Ended December 31, 2013
Revenues were $54.1 million for the fourth quarter of 2013, compared to $47.2 million for the fourth quarter of 2012. The increase in revenues was primarily attributable to an increase ethanol production by consistently operating the Keyes plant above nameplate capacity.
Gross profit was a record $11.3 million for the fourth quarter of 2013, compared to a gross loss of $2.4 million in the fourth quarter of 2012. The improvement in gross profit was driven by significantly improved production margins.
Selling, general and administrative (“SG&A”) expenses were $3.2 million in the fourth quarter of 2013, compared to $4.7 million in the fourth quarter of 2012. The decrease in SG&A expenses was primarily attributable to one-time financial advisory service fees during the fourth quarter of 2012.
Operating income for the fourth quarter of 2013 was a record $8.0 million, compared to an operating loss of $7.2 million for the same period in 2012.
Net Income for the fourth quarter of 2013 was $3.3 million, compared to a loss of $12.2 million for the fourth quarter of 2012.
Adjusted EBITDA for the fourth quarter of 2013 was a record $9.9 million, compared to Adjusted EBITDA of negative $6.2 million for the same period in 2012.
“We paid more than $12.0 million of principal and interest on debt during 2013 and during the first quarter of 2014. This debt reduction lowers our interest costs each month and increases shareholder equity. In addition to the pay down of debt using positive cash flow from operations, we have ongoing debt reduction and refinance activities underway that we believe will further lower the interest costs incurred by the company and support increased profitability in the future,” said Todd Waltz, EVP and CFO of Aemetis.
Financial Results for the Year Ended December 31, 2013
For the full year 2013, revenues were $177.5 million, compared to $189.0 million for the 2012 year. The decrease in revenues was attributable to the idling of our ethanol plant for approximately three months during Q1 and Q2 2013. While idled, the plant was retrofitted to process grain sorghum (qualifying for Advanced Biofuels D5 RINs). The plant was restarted in May 2013.
Gross profit was a record $18.3 million for 2013, compared to a gross loss of $8.9 million for 2012. Operating income for 2013 was a record $2.5 million, compared to an operating loss of $21.2 million for the same period in 2012, representing an improvement of $23.7million year-over-year. Net loss for the full year 2013 was $24.4 million, compared to a loss of $4.3 million for the same period in 2012.
Adjusted EBITDA for the full year 2013 was a record $8.4 million, compared to Adjusted EBITDA of negative $17.9 million for the same period in 2012.
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 (income)/expense, income tax (benefit)/expense, depreciation and amortization, (gain)/loss on bargain purchase 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/(loss) 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 under the Private Securities Litigation Reform Act of 1995
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 ability to leverage approved feedstock pathways; our ability to refinance our debt, further reduce our interest costs and increase profitability; and our ability to continue to fund operations with cash from operations. 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, risks associated with the conversion of the Keyes plant to the use of sorghum for ethanol production; 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, 2013, 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.
Headquartered in Cupertino, California, Aemetis is an advanced fuels and renewable chemicals company that was founded in 2006. Aemetis owns and operates a 55 million gallon ethanol and 420,000 ton animal feed plant in California that is the first upgraded facility approved by the EPA to produce D5 Advanced Biofuels using the milo/biogas/CHP pathway. Aemetis also built, owns and operates a 50 million gallon capacity renewable chemicals and advanced fuels production facility on the East Coast of India producing high quality, distilled biodiesel and refined glycerin for customers in Europe and Asia. Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds five granted patents on its Z-microbe and related technology for the production of renewable fuels and biochemicals. For additional information about Aemetis, please visit aemetis.com.
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