Aemetis, Inc. (AMTX) saw its loss widen to $8.53 million, or $0.43 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $5.11 million, or $0.26 a share.
Revenue during the quarter dropped 5.26 percent to $31.57 million from $33.33 million in the previous year period. Gross margin for the quarter stood at negative 1.86 percent as compared to a positive 6.26 percent for the previous year period. Operating margin for the quarter stood at negative 12.57 percent as compared to a negative 3.03 percent for the previous year period.
Operating loss for the quarter was $3.97 million, compared with an operating loss of $1.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.41 million compared with $0.25 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.63 percent for the quarter compared to 0.75 percent in the last year period.
"During the first quarter, ethanol revenues increased by 12% on higher ethanol volume and prices compared to the first quarter of 2016, but gross margins were negatively impacted by an increase in feedstock costs due to an unusually wet winter in California and the resulting higher rail costs," stated Eric McAfee, chairman and chief executive officer of Aemetis. "During the second quarter, rail costs have returned to more normal levels and ethanol margins have improved as corn prices remain moderated. Our business in India has entered a growth phase by recently winning a biodiesel supply contract with domestic Oil Marketing Companies in India, and we are finalizing an international biodiesel supply contract with a major oil company. These new customers are in addition to our existing bulk and fleet customers in India."
Working capital remains negative
Working capital of Aemetis, Inc. was negative $24.07 million on Mar. 31, 2017 compared with negative $21.47 million on Mar. 31, 2016. Current ratio was at 0.17 as on Mar. 31, 2017, down from 0.23 on Mar. 31, 2016.
Cash conversion cycle (CCC) was almost stable at 6 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 4 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 11 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Aemetis, Inc. has recorded a decline in total debt over the last one year. It stood at $12.86 million as on Mar. 31, 2017, down 87.69 percent or $91.57 million from $104.43 million on Mar. 31, 2016. Total debt was 17.15 percent of total assets as on Mar. 31, 2017, compared with 129.67 percent on Mar. 31, 2016.
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