“Our scheduled biennial outage at our
“We continue to progress our strategic carbon capture and storage (CCS) initiative that will substantially reduce our carbon footprint. CCS stands to create value for the communities surrounding the
In March, Alto announced that it had signed a letter of intent with Vault 44.01, a leading CCS developer focused on the development, capitalization and operation of carbon storage assets. The company continues to negotiate the terms of its proposed agreements with potential financial partners and with Vault. The plan is to partner for safe and permanent CO2 storage deep underground in a secure geological reservoir close to the
Financial Results for the Three Months Ended
- Net sales were
$240.6 million , compared to$313.9 million . - Cost of goods sold was
$243.0 million , compared to$317.1 million . - Gross loss, including a
$4.9 million incremental loss related to natural gas hedging activities, was$2.4 million , compared to a gross loss of$3.2 million . - Selling, general and administrative expenses were
$7.9 million for both periods. - Operating loss was
$10.3 million , compared to an operating loss of$11.6 million , which included an asset impairment charge of$0.6 million . - Net loss available to common stockholders was
$12.0 million , or$0.17 per share, compared to$13.5 million , or$0.18 per share. - Adjusted EBITDA was negative
$7.1 million , compared to negative$10.4 million .
Cash and cash equivalents were
First Quarter 2024 Results Conference Call
Management will host a conference call at
The webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, to receive a number and unique PIN by email, register here. To dial directly twenty minutes prior to the scheduled call time, dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the
Use of Non-GAAP Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, loss on extinguishment of debt, unrealized derivative gains (losses), acquisition-related expense and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.
About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ projected outlook, future performance, margin improvements and crush spreads; Alto Ingredients’ plant improvement and other capital projects, including CCS, as well as repair and maintenance projects, and their financing, costs, timing and effects; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others, Alto Ingredients’ ability to finalize definitive documentation with Vault on acceptable terms and to fund and execute the CCS project as intended; adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints; and the cost, ability to fund, timing and effects of, including the financial and other results deriving from, Alto Ingredients’ plant improvement and other capital projects, including CCS, and other business initiatives and strategies. These factors also include, among others, the inherent uncertainty associated with financial and other projections and large-scale capital projects; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies, including with respect to the Inflation Reduction Act’s tax and other benefits
Company IR and Media Contact:
IR Agency Contact:
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net sales | $ | 240,629 | $ | 313,891 | |||
Cost of goods sold | 243,029 | 317,055 | |||||
Gross loss | (2,400 | ) | (3,164 | ) | |||
Selling, general and administrative expenses | (7,932 | ) | (7,882 | ) | |||
Asset impairments | — | (574 | ) | ||||
Loss from operations | (10,332 | ) | (11,620 | ) | |||
Interest expense, net | (1,634 | ) | (1,565 | ) | |||
Other income, net | 241 | 19 | |||||
Loss before provision for income taxes | (11,725 | ) | (13,166 | ) | |||
Provision for income taxes | — | — | |||||
Net loss | $ | (11,725 | ) | $ | (13,166 | ) | |
Preferred stock dividends | $ | (315 | ) | $ | (312 | ) | |
Net loss available to common stockholders | $ | (12,040 | ) | $ | (13,478 | ) | |
Net loss per share, basic and diluted | $ | (0.17 | ) | $ | (0.18 | ) | |
Weighted-average shares outstanding, basic and diluted | 72,766 | 73,815 |
CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value) | ||||||||||
ASSETS | 2024 | 2023 | ||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | $ | 29,310 | $ | 30,014 | ||||||
Restricted cash | 12,762 | 15,466 | ||||||||
Accounts receivable, net | 58,081 | 58,729 | ||||||||
Inventories | 42,610 | 52,611 | ||||||||
Derivative instruments | 52 | 2,412 | ||||||||
Other current assets | 8,028 | 9,538 | ||||||||
Total current assets | 150,843 | 168,770 | ||||||||
Property and equipment, net | 248,901 | 248,748 | ||||||||
Other Assets: | ||||||||||
Right of use operating lease assets, net | 21,506 | 22,597 | ||||||||
Intangible assets, net | 8,351 | 8,498 | ||||||||
Other assets | 5,034 | 5,628 | ||||||||
Total other assets | 34,891 | 36,723 | ||||||||
Total Assets | $ | 434,635 | $ | 454,241 |
CONSOLIDATED BALANCE SHEETS (CONTINUED) (unaudited, in thousands, except par value) | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | 2024 | 2023 | |||||||||||||||
Current Liabilities: | |||||||||||||||||
Accounts payable | $ | 18,508 | $ | 20,752 | |||||||||||||
Accrued liabilities | 18,166 | 20,205 | |||||||||||||||
Current portion – operating leases | 4,486 | 4,333 | |||||||||||||||
Derivative instruments | 8,299 | 13,849 | |||||||||||||||
Other current liabilities | 5,595 | 6,149 | |||||||||||||||
Total current liabilities | 55,054 | 65,288 | |||||||||||||||
Long-term debt | 84,069 | 82,097 | |||||||||||||||
Operating leases, net of current portion | 17,895 | 19,029 | |||||||||||||||
Other liabilities | 8,958 | 8,270 | |||||||||||||||
Total Liabilities | 165,976 | 174,684 | |||||||||||||||
Stockholders’ Equity: | |||||||||||||||||
Preferred stock, Series B: 927 shares issued and outstanding as of | 1 | 1 | |||||||||||||||
Common stock, | 77 | 76 | |||||||||||||||
Non-voting common stock, | — | — | |||||||||||||||
Additional paid-in capital | 1,042,053 | 1,040,912 | |||||||||||||||
Accumulated other comprehensive income | 2,481 | 2,481 | |||||||||||||||
Accumulated deficit | (775,953 | ) | (763,913 | ) | |||||||||||||
Total Stockholders’ Equity | 268,659 | 279,557 | |||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 434,635 | $ | 454,241 | |||||||||||||
Reconciliation of Adjusted EBITDA to Net Loss
Three Months Ended | |||||||
(in thousands) (unaudited) | 2024 | 2023 | |||||
Net loss | $ | (11,725 | ) | $ | (13,166 | ) | |
Adjustments: | |||||||
Interest expense | 1,634 | 1,565 | |||||
Interest income | (175 | ) | (221 | ) | |||
Unrealized derivatives gains | (3,190 | ) | (5,926 | ) | |||
Acquisition-related expense | 675 | 700 | |||||
Asset impairments | — | 574 | |||||
Depreciation and amortization expense | 5,728 | 6,055 | |||||
Total adjustments | 4,672 | 2,747 | |||||
Adjusted EBITDA | $ | (7,053 | ) | $ | (10,419 | ) | |
Segment Financials
(in thousands) (unaudited) | Three Months Ended | ||||||||||||||
2024 | 2023 | ||||||||||||||
Net sales | |||||||||||||||
Pekin Campus production, recorded as gross: | |||||||||||||||
Alcohol sales | $ | 108,350 | $ | 132,381 | |||||||||||
Essential ingredient sales | 46,709 | 63,631 | |||||||||||||
Intersegment sales | 321 | 313 | |||||||||||||
Total Pekin Campus sales | 155,380 | 196,325 | |||||||||||||
Marketing and distribution: | |||||||||||||||
Alcohol sales, gross | $ | 54,431 | $ | 84,381 | |||||||||||
Alcohol sales, net | 34 | 114 | |||||||||||||
Intersegment sales | 2,752 | 2,843 | |||||||||||||
Total marketing and distribution sales | 57,217 | 87,338 | |||||||||||||
Western production, recorded as gross: | |||||||||||||||
Alcohol sales | $ | 20,231 | $ | 20,932 | |||||||||||
Essential ingredient sales | 7,826 | 8,353 | |||||||||||||
Intersegment sales | — | 1 | |||||||||||||
Total Western production sales | 28,057 | 29,286 | |||||||||||||
Corporate and other | 3,048 | 4,099 | |||||||||||||
Intersegment eliminations | (3,073 | ) | (3,157 | ) | |||||||||||
Net sales as reported | $ | 240,629 | $ | 313,891 | |||||||||||
Cost of goods sold: | |||||||||||||||
Pekin Campus production | $ | 151,112 | $ | 198,178 | |||||||||||
Marketing and distribution | 53,685 | 83,126 | |||||||||||||
Western production | 36,517 | 33,982 | |||||||||||||
Corporate and other | 2,794 | 2,369 | |||||||||||||
Intersegment eliminations | (1,079 | ) | (600 | ) | |||||||||||
Cost of goods sold as reported | $ | 243,029 | $ | 317,055 | |||||||||||
Gross profit (loss): | |||||||||||||||
Pekin Campus production | $ | 4,268 | (1,853 | ) | |||||||||||
Marketing and distribution | 3,532 | 4,212 | |||||||||||||
Western production | (8,460 | ) | (4,696 | ) | |||||||||||
Corporate and other | 254 | 1,730 | |||||||||||||
Intersegment eliminations | (1,994 | ) | (2,557 | ) | |||||||||||
Gross loss as reported | $ | (2,400 | $ | (3,164 | ) |
Sales and Operating Metrics (unaudited) | |||||||||
Three Months Ended | |||||||||
2024 | 2023 | ||||||||
Alcohol Sales (gallons in millions) | |||||||||
Pekin Campus renewable fuel gallons sold | 31.8 | 35.3 | |||||||
Western production renewable fuel gallons sold | 11.2 | 7.9 | |||||||
Third party renewable fuel gallons sold | 29.7 | 33.9 | |||||||
Total renewable fuel gallons sold | 72.7 | 77.1 | |||||||
Specialty alcohol gallons sold | 26.3 | 21.4 | |||||||
Total gallons sold | 99.0 | 98.5 | |||||||
Sales Price per Gallon | |||||||||
Pekin Campus | $ | 1.90 | $ | 2.38 | |||||
Western production | $ | 1.80 | $ | 2.64 | |||||
Marketing and distribution | $ | 1.83 | $ | 2.49 | |||||
Total | $ | 1.86 | $ | 2.43 | |||||
Alcohol Production (gallons in millions) | |||||||||
Pekin Campus | 53.6 | 53.3 | |||||||
Western production | 9.7 | 7.3 | |||||||
Total | 63.3 | 60.6 | |||||||
Corn Cost per Bushel | |||||||||
Pekin Campus | $ | 4.73 | $ | 6.83 | |||||
Western production | $ | 5.89 | $ | 9.34 | |||||
Total | $ | 4.92 | $ | 7.07 | |||||
Average Market Metrics | |||||||||
PLATTS Ethanol price per gallon | $ | 1.56 | $ | 2.19 | |||||
CME Corn cost per bushel | $ | 4.35 | $ | 6.58 | |||||
Board corn crush per gallon (1) | $ | 0.01 | $ | (0.16 | ) | ||||
Essential Ingredients Sold (thousand tons) | |||||||||
Pekin Campus: | |||||||||
Distillers grains | 87.7 | 90.8 | |||||||
CO2 | 39.1 | 42.3 | |||||||
Corn wet feed | 25.6 | 26.7 | |||||||
Corn dry feed | 18.9 | 21.5 | |||||||
Corn oil and germ | 17.8 | 19.3 | |||||||
Syrup and other | 9.5 | 10.5 | |||||||
Corn meal | 8.3 | 9.4 | |||||||
Yeast | 5.7 | 6.4 | |||||||
Total Pekin Campus essential ingredients sold | 212.6 | 226.9 | |||||||
Western production: | |||||||||
Distillers grains | 71.8 | 54.0 | |||||||
Syrup and other | 14.2 | 3.5 | |||||||
CO2 | 13.3 | 13.6 | |||||||
Corn oil | 1.5 | 1.3 | |||||||
Total Western production essential ingredients sold | 100.8 | 72.4 | |||||||
Total Essential Ingredients Sold | 313.4 | 299.3 | |||||||
Essential Ingredients Return % (2) | |||||||||
Pekin Campus return | 52.1 | % | 46.2 | % | |||||
Western production return | 39.3 | % | 40.0 | % | |||||
Consolidated total return | 49.8 | % | 45.4 | % | |||||
(1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn. | |||||||||
(2) Essential ingredient revenues as a percentage of total corn costs consumed. | |||||||||
Source:
2024 GlobeNewswire, Inc., source