Aemetis(US:AMTX)2024-05-09 21:15Revenue Growth - For the three months ended March 31, 2024, total revenues increased to $72.634 million, a 3276.8% increase compared to $2.151 million for the same period in 2023[152]. - The California Ethanol segment generated $36.089 million in revenue, a 7497.7% increase from $475 thousand in the prior year, attributed to the Keyes plant operating for the full quarter[152][153]. - The California Dairy Renewable Natural Gas segment reported revenues of $3.792 million, up 1740.8% from $206 thousand, driven by increased production and sales of renewable natural gas[152][154]. - The India Biodiesel segment's revenue rose to $32.753 million, a 2128.1% increase from $1.470 million, primarily due to successful tender offers from India's Oil Market Companies[152][155]. Cost and Profit Analysis - Cost of Goods Sold for the California Ethanol segment was $41.747 million, an increase of 8472.3% from $487 thousand, reflecting the costs associated with operating the Keyes plant[156]. - The gross profit for the California Dairy Renewable Natural Gas segment improved to $2.210 million, compared to a gross loss of $773 thousand in the prior year[158][159]. - The India Biodiesel segment achieved a gross profit of $2.836 million, a significant increase from a gross loss of $510 thousand, driven by a 2789% increase in biodiesel sales volume[158][159]. Future Development Plans - The company plans to develop a sustainable aviation fuel and renewable diesel plant with a capacity of 90 million gallons per year, with ongoing development activities including permitting and financing[147]. - Aemetis is also pursuing Carbon Capture and Underground Sequestration (CCUS) projects aimed at sequestering over two million metric tons of CO₂ annually, with initial projects in California[148]. - The company is focused on energy efficiency initiatives to lower the carbon intensity of its fuels, which include implementing high-efficiency systems and utilizing renewable energy sources[143]. Financial Performance - Selling, general and administrative (SG&A) expenses decreased by $1.978 million, or 18.3%, from $10.828 million in 2023 to $8.850 million in 2024[162]. - Interest expense increased by $2.014 million, or 28.5%, from $7.078 million in 2023 to $9.092 million in 2024, primarily due to new debt and rising interest rates[163]. - Cash and cash equivalents decreased from $2.667 million at December 31, 2023, to $1.629 million at March 31, 2024, reflecting a decline of $1.038 million[166]. - The current ratio fell from 0.43 at December 31, 2023, to 0.28 at March 31, 2024, indicating a decrease in liquidity[164]. - Net cash used in operating activities was $10.3 million for the three months ended March 31, 2024, with a net loss of $24.2 million[176]. - Cash used in investing activities totaled $3.6 million, offset by $1.9 million in grant proceeds and reimbursements[177]. - Cash provided by financing activities was $10.6 million, including $5.5 million from common stock issuance and $6.2 million from borrowings[177]. - The outstanding balance of principal, interest, and fees on Third Eye Capital Notes was $186 million as of March 31, 2024[172]. - The company plans to improve financial performance at the Keyes Plant by adopting new technologies and executing awarded grants for energy efficiency[169]. - The company expects to generate significant liquidity from D3 RIN sales and LCFS credits, with a full year of revenue anticipated in 2024[170]. Production Estimates - Estimated biodiesel production for the next three months is 27.5 thousand tons, with a 10% price change resulting in an income effect of $3.10 million[190]. - Renewable natural gas production is estimated at 75.0 thousand MMBtu, with a 10% price change leading to an income effect of $0.03 million[192]. Debt and Interest Rate Sensitivity - The company has $217.2 million in outstanding variable interest-rate debt, with a 1% increase in the Prime Rate increasing annual interest costs by approximately $1.7 million[193]. - A 1% increase in the five-year Treasury Constant Maturity Rate would increase annual interest costs by approximately $0.4 million[193]. Foreign Currency Impact - The company recognized a foreign currency translation loss of $44 thousand for the three months ended March 31, 2024, compared to a gain of $117 thousand for the same period in 2023[195]. - A 10-point increase in the INR to USD exchange rate could impact net income by $141 thousand and total liabilities by $1.2 million[195]. - The company has no outstanding derivative financial instruments or foreign currency contracts as of March 31, 2024[196]. Market Sensitivity - Biodiesel prices are sensitive to crude oil supply and demand, with local prices influenced by Oil Marketing Companies' monthly pricing models[189]. - The availability and pricing of feedstock for biodiesel production are affected by global demand, weather conditions, and governmental policies[189]. - Dairy renewable natural gas prices are influenced by weather factors and the price of environmental attributes like Renewable Fuel Standard D3 RINs[191].