Aemetis(AMTX)2024-11-12 20:34Revenue Performance - For the three months ended September 30, 2024, total revenues increased by 18.6% to $81.4 million compared to $68.7 million in the same period of 2023[130] - The California Ethanol segment reported revenues of $44.9 million, a decrease of 5.3% from $47.4 million in 2023, primarily due to a 20% reduction in the average sales price of ethanol[131] - The California Dairy Renewable Natural Gas segment saw a significant revenue increase of 283.9%, reaching $4.3 million compared to $1.1 million in 2023, driven by increased production and sales of renewable natural gas[131] - The India Biodiesel segment generated $32.3 million in revenues, a 60.1% increase from $20.1 million in 2023, attributed to higher sales volume of biodiesel[131] - Total revenues for the nine months ended September 30, 2024, increased by 90.3% to $220.6 million compared to $116.0 million in the same period of 2023[144] - California Ethanol segment revenues rose by 104.5% to $121.2 million, driven by the operation of the Keyes Plant for a full nine months in 2024[144] - California Dairy Renewable Natural Gas segment revenues surged by 533.0% to $9.6 million, reflecting increased production and sales[144] Cost and Profit Analysis - Cost of goods sold for the total operations increased by 13.7% to $77.6 million, with the California Ethanol segment's costs decreasing by 8.3% to $44.8 million due to lower corn prices[134] - The gross profit for the total operations increased by 688.2% to $3.9 million, with the California Ethanol segment achieving a gross income of $0.1 million compared to a loss of $1.5 million in 2023[137] - The California Dairy Renewable Natural Gas segment reported a gross income of $1.9 million, a significant improvement from a loss of $0.8 million in the same period last year[137] - The India Biodiesel segment experienced a gross profit decrease of 31.6%, amounting to $1.9 million, primarily due to a 31% increase in feedstock costs[138] - Cost of Goods Sold (COGS) for the nine months ended September 30, 2024, increased by 90.9% to $219.2 million compared to $114.8 million in 2023[147] - Gross profit for the California Ethanol segment decreased by 149.4% to a loss of $9.5 million, attributed to a 28% decrease in ethanol prices[152] Operational Developments - The company is actively expanding its biogas operations, with nine operating digesters and five more under construction, aiming to increase dairy waste processing capacity[124] - Planned sustainable aviation fuel and renewable diesel production plant is designed to produce 90 million gallons per year, with ongoing development activities including permitting and financing[126] - The Keyes Plant aims to enhance financial performance through new technologies and process changes, focusing on energy efficiency and cost reduction[164] - Dairy RNG production is expanding with new digesters and pipeline extensions, expecting full-year revenue from D3 RIN sales and LCFS credits in 2024, which will improve liquidity[165] - The Kakinada Plant plans to enter cost-plus contracts with OMCs and upgrade capacity, with positive gross income expected to continue[166] - The Riverbank SAF/RD production plan is in the engineering phase, seeking both debt and equity funding for development and construction[167] Financial Position - Cash and cash equivalents were $296 thousand as of September 30, 2024, down from $2.67 million at December 31, 2023[160] - The current ratio decreased to 0.26 at September 30, 2024, compared to 0.43 at December 31, 2023[159] - As of September 30, 2024, the outstanding balance on Third Eye Capital Notes was $205.3 million, with maturity dates extending into 2026[169] - Net cash used in operating activities for the nine months ended September 30, 2024, was $20.4 million, with a net loss of $71.3 million[173] - Cash used in investing activities totaled $13.5 million for capital projects, offset by $3.0 million in grant proceeds[174] - Cash provided by financing activities was $27.8 million, primarily from common stock sales and borrowings[175] - Working capital changes included a $1.5 million increase in inventories and a $0.7 million decrease in accounts receivable[171] Management and Strategy - SG&A expenses for the nine months ended September 30, 2024, decreased by 4.0% to $28.4 million compared to $29.6 million in 2023[157] - Interest expense increased by 20.6% to $29.1 million due to rising interest rates and new debt arrangements[157] - The company plans to pursue strategies to improve business performance amid reliance on senior secured lenders for debt management[163] - The company is implementing a remediation plan to address material weaknesses in internal controls over financial reporting[179]