Aemetis Inc., an advanced renewable fuels and renewable chemicals company, today announced its financial results for the three and nine months ended Sept. 30.
 
“Our India biodiesel revenues grew 56 percent sequentially quarter over quarter through the development of a sustainable domestic customer base, which was made possible by key government policy changes earlier in the year.  On October 21, 2015, the Indian Government removed a key tax barrier for the production of biodiesel, enabling Aemetis to source feedstock worldwide and expand our business in India much more rapidly,” stated Eric McAfee, chairman and CEO of Aemetis.  “Our US ethanol business is showing steady signs of improvement driven by increased demand, but low prices caused by excess supply due to the two year delay by the EPA in establishing the renewable fuel standard mandate.”
 
“Importantly, we received an additional $2 million of EB-5 subordinated debt funding during the third quarter, totaling $23.5 million of funding released to Aemetis. As of September 30, 2015, our escrow account holds an additional $11.5 million of EB-5 funding.  With one investor approved for funding and one investor identified for the last available unit, the offering is nearly complete. This 3 percent interest rate funding will be used to redeem higher rate senior debt,” said McAfee.
 
Revenues were $38.5 million for the third quarter of 2015, compared to $48.3 million for the third quarter of 2014. Decreases in ethanol and wet distiller’s grain average selling prices and volumes resulted in revenue declining during the third quarter as compared to the same period of the prior year.  Gross profit for the third quarter of 2015 was $1 million, compared to $7.7 million in the third quarter of 2014.  During this period, ethanol and wet distiller’s grain pricing fell more rapidly than feedstock purchase costs.
 
Selling, general and administrative expenses were $2.8 million in the third quarter of 2015, compared to $3.0 million in the third 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 $1.9 million for the third quarter of 2015, compared to operating income of $4.6 million for the same period in 2014. Net loss was $5.8 million for the third quarter of 2015, compared to net income of $0.5 million for the third quarter of 2014. Adjusted EBITDA for the third quarter of 2015 was a loss of $0.5 million, compared to Adjusted EBITDA of $6.1 million for the same period in 2014. Cash at the end of the third quarter of $2.5 million compared favorably to $0.3 million at the close of 2014.
 
During the third quarter of 2015, the EB-5 program provided $2 million of low-cost debt funding.  Interest costs during the third quarter of 2015 were $3.9 million, compared to interest cost of $4.3 million during the third quarter of 2014.
 
Revenues were $111.3 million for the nine months of 2015, compared to $166.2 million for nine months of 2014.  Decreases in ethanol and wet distiller’s grain average selling prices and volumes in the nine months of 2015 compared to same period in 2014 resulted in revenue declining for the first nine months of 2015.  Gross profit for the nine months of 2015 was $2.8 million, compared to $34.7 million during the same period in 2014.  During this period, ethanol and wet distiller’s grain pricing fell more rapidly than feedstock purchase costs.
 
Selling, general and administrative expenses were $9.6 million during the nine months of 2015, compared to $9.3 million during the nine months of 2014.  The increase in selling, general and administrative expenses was primarily attributable to financial advisory fees. Operating loss was $7.1 million for the nine months of 2015, compared to operating income of $25.1 million for the same period in 2014.
 
Net loss was $20.7 million for the nine months of 2015, compared to net income of $10.9 million for the same period in 2014. Adjusted EBITDA for the nine months of 2015 was loss of $3.0 million, compared to adjusted EBITDA of $29.4 million for the same period in 2014.
 
During the nine months of 2015, the EB-5 program provided $22 million of low-cost EB-5 debt funding.  Interest costs during the nine months of 2015 were $13.4 million, compared to $14.4 during the nine months of 2014 due to the lower cost of EB-5 funds in the capitalization structure.