Aemetis reports record revenues in 2014 results

By Erin Voegele | March 13, 2015

Aemetis Inc. has released 2014 financial results, reporting record revenues of $208 million, up from $178 million in 2013. Record adjusted EBITDA was $30 million in 2014, up from $10 million in the prior year. Gross profit was $37 million last year, up from $18 million in 2013. Operating income was also up, reaching $24.1 million, compared to $2.5 million the prior year. Net income was $7.1 million, or 35 cents per share.

For the fourth quarter, Aemetis reported $41.5 million in revenues, down 23 percent from the $54.1 million reported for the same period of 2013. The drop is attributed to a decline in ethanol sales price per gallon and lower wet distillers grain (WDG) sales price per ton. During the quarter, profit declined to $2.5 million, from $11.3 million during the fourth quarter of 2013. According to Aemetis, increased rail transportation costs contributed to the quarterly results. Aemetis reported an operating loss of $1 million for the fourth quarter, compared to an operating income of $8 million during the same three months of 2013. The net loss for the fourth quarter was $3.3 million, compared to a net income of $3.3 million for the same period of the previous year. Adjusted EBTIDA was $600,000, down from $9.9 million during the fourth quarter of 2013.

According to its financial report, Aemetis sold 60.2 million gallons of ethanol last year, up from 42.39 million gallons in 2013. The average sales price was $2.54 per gallon, down from $2.62 per gallon in 2013. The company sold 408,000 tons of WDG, down from 301,000 tons. The average price in 2014 was $92 per ton, down from $100 per ton in 2013.

During the fourth quarter, Aemetis sold 14.46 million gallons of ethanol, down from 15.93 million gallons during the same period of 2013. The average price was $2.19 per gallon, down from $2.46 per gallon during the final quarter of 2013. The company sold 98,000 tons of WDG during the fourth quarter, with an average sales price of $67 per ton. During the same period of 2013, Aemetis sold 110,000 tons of WDG at an average price of $103 per ton.

“Aemetis continues to achieve important milestones that are creating significant value for shareholders,” said Eric McAfee, chairman and CEO of Aemetis, during an investor call. “Aemetis is seeking to commercialize the conversion of first generation biodiesel and ethanol plants into integrated production facilities that produce an expanded portfolio of higher value products, such as renewable jet fuel, renewable diesel, renewable chemicals, as well as valuable products from liquefied CO2.”

McAfee said a key accomplishment in 2014 was that the company approved or received $18.5 million from the EB-5 escrow fund for transfer to Aemetis company accounts. He explained that an approval is the receipt from the U.S. Customs and Immigration Service of an I-526 approval that allows the company to disburse from the escrow account to Aemetis the $500,000 from an investor.

“As of the end of 2014, we had only $1.5 million in Aemetis company accounts from EBU5 funding, so Q1 2015 has increased that funding amount by $17 million as of today,” McAfee said. “We are well along the way to securing $36 million of sub-debt financing through the EBU5 program, at 3 percent interest rate and no principal payments for four years. This attractive financing is allocated to the repayment of the Third Eye Capital bridge financing that was provided for the acquisition, upgrade and operation of our wholly owned biofuels facilities.”

According to McAfee, Congress created the EB-5 program in 1990 to benefit the U.S. economy and create new jobs by attracting investment from qualified foreign investors, who are granted a path to U.S. citizenship through a $500,000 investment into a qualified project. "To date, Aemetis has received into escrow $24 million through the EBU5 program, and we expect to have the full $36 million fully funded into escrow in 2015, with a substantial portion or potentially the entire $36 million approved or transferred into Aemetis accounts from the escrow,” McAfee continued, noting the company plans to launch additional projects using the same financing model.

McAfee also spoke about the $3 million grant his company was awarded from the state of California to develop a sorghum development program and noted Aemetis was the first domestic ethanol producer granted a new pathway by the U.S. EPA to qualify for higher-value D5 advanced biofuel renewable identification numbers (RINs) by producing ethanol from grain sorghum in conjunction with biogas and the combined-heat-and-power (CHP) system at the company’s Keyes plant. He also briefly addressed Aemetis’ October 2014 announcement that it would build and operate a liquid CO2 plant at the Keyes facility. In addition, McAfee spoke about the global technology license his company has signed with ChevronLummus/ARA for the production of 100 percent drop-in renewable jet fuel and diesel, and mentioned that Aemetis has developed and acquired patented microbe technology that can covert agricultural waste to ethanol.