Aemetis' (AMTX) CEO Eric McAfee on Q2 2016 Results - Earnings Call Transcript
Greetings and welcome to the Aemetis Second Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Todd Waltz, Chief Financial Officer for Aemetis. Please go ahead sir.
Thank you, Kevin. We welcome our shareholders and financial market professionals to today's Aemetis second quarter 2016 earnings review conference call. We suggest visiting the website at aemetis.com to review today's earnings press release, the updated corporate presentation, filings with the SEC, recent press releases, and previous earnings conference calls.
This presentation is available for review or download on the aemetis.com home page. Before we begin our discussion today, I'd like to read the following disclaimer statement. During today's call we'll be making forward-looking statements, including, without limitation statements with respect to our future stock performance, plans, opportunities, and expectations with respect to financing activities.
These statements must be considered in conjunction with the disclosures and cautionary warnings that appear in our SEC filings. Investors are cautioned that all forward-looking statements made on this call involve risks and uncertainties, and that future events may differ materially from the statements made. For additional information, please refer to the company's SEC Commission filings, which are posted on our website and are available from the Company without charge.
Our discussion on this call will include a review of non-GAAP measures as a supplement to financial results reported on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in our earnings release for the quarter ended on June 30, 2016, which is available on our website.
Adjusted EBITDA is defined as net income or loss plus, to the extent deducted and calculating such net income, interest expense, loss on extinguishment, income tax expense, intangible and other amortization expense, depreciation expense, and share-based expense.
Now, I'd like to review financial results for the second quarter of 2016. Revenues were $33.1 million for the second quarter of 2016 compared to $38.1 million for the second quarter of 2015. The decline in revenue was primarily attributable to decreases in ethanol and wet distiller’s grain volumes.
Gross margin for the second quarter of 2016 was $1.9 million, the same as the gross margin of $1.9 million during the second quarter of 2015.
Selling, general and administrative expenses were $2.9 million in the second quarter of 2016 compared to $3.1 million in the second quarter of 2015. The decrease in selling, general and administrative expense was driven by lower spending in the areas of salary and stock compensation compared to the same quarter of the prior year.
Operating loss was $1.1 million for the second quarter of 2016 compared to an operating loss above $1.3 million for the same period in 2015.
Net loss was $5 million for the second quarter of 2016 compared to a net loss of $6.3 million for the second quarter of 2015. We continue to experience good operational results from our North American ethanol business with gross margins at 7.5% of segment revenue.
Our largest contributor to the net loss is interest expense of $4.4 million. We continue to search for lower cost capital through a combination of debt refinancing as well as escrow releases from the first EB-5 financing.
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