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Alto Ingredients, Inc. Reports Third Quarter 2022 Results
Источник: Nasdaq GlobeNewswire / 07 ноя 2022 16:26:00 America/New_York
- Grew Net Sales to $336.9 Million, Up 10% from Q3 2021
- Secured Up to $125 Million in Available Debt for Large Capital-Intensive Programs
SACRAMENTO, Calif,, Nov. 07, 2022 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols and essential ingredients, reported its financial results for the quarter ended September 30, 2022.
“Focused on long-term growth, we created the financial flexibility to accelerate the next phase of our capital expenditure program, which will build upon strategic repairs and maintenance completed in 2022,” said Mike Kandris, CEO of Alto Ingredients. “Year-to-date, we successfully upgraded equipment and operating systems to increase plant efficiency, reliability, redundancy, and capacity. Regardless, and as expected, our third quarter 2022 results were affected by logistical constraints, increased transportation costs, and low commodity margins. With proceeds from our announced $125 million term debt financing, we will implement larger capital-intensive growth projects to further our specialty alcohols and essential ingredients diversification strategy, minimize the impact of commodity pricing volatility and enrich our margin profile. Opportunities under evaluation include carbon capture sequestration, yeast production, energy supply improvements and more. We are excited about the future and look forward to delivering additional value to all our stakeholders.”
Financial Results for the Three Months Ended September 30, 2022 Compared to 2021
- Net sales were $336.9 million, compared to $305.6 million.
- Cost of goods sold was $356.7 million, compared to $309.0 million.
- Gross loss was $19.8 million, compared to $3.4 million.
- Selling, general and administrative expenses were $7.4 million, compared to $5.5 million, reflecting Eagle Alcohol acquisition-related expenses and higher stock-compensation expenses in the third quarter of 2022.
- Net loss available to common stockholders was $28.4 million, or $0.39 per share, compared to $3.5 million, or $0.05 per share.
- Adjusted EBITDA was negative $20.6 million, compared to Adjusted EBITDA of $3.0 million.
- Cash and cash equivalents were $28.5 million at September 30, 2022, compared to $50.6 million at December 31, 2021. Subsequent to quarter end, the company entered into a new six-year term loan facility allowing for periodic draws in an aggregate amount of up to $125 million.
- Working capital was $131.8 million at September 30, 2022, compared to $159.9 million at December 31, 2021. During the quarter, the company repurchased approximately 250,000 shares of its common stock for $1.0 million.
Third Quarter 2022 Results Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Monday, November 7, 2022, and will deliver prepared remarks via webcast followed by a question-and-answer session.The webcast for the call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, you may register for the conference by navigating to https://dpregister.com/sreg/10170909/f454bd37e8 to receive a number and unique PIN by email or you may dial the following number up to twenty minutes prior to the scheduled conference call time: (833) 630-0017. Internationally please call (412) 317-1806. Please ask to join the Alto Ingredients call.
The webcast will be archived for replay on Alto Ingredients’ website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Monday, November 7, 2022, through 8:00 p.m. Eastern Time on Monday, November 14, 2022. To access the replay, please dial 877-344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 6007653.
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 net income (loss) before interest expense, interest income, provision for income taxes, asset impairments, loss on extinguishment of debt, acquisition-related expense, fair value adjustments, 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 Alto Ingredients, Inc.
Alto Ingredients, Inc. (ALTO) is a leading producer and distributor of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information, please visit www.altoingredients.com.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’ near- and long-term outlook; its capital projects and business strategy, and their outcomes 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. These factors include, among others, adverse economic and market conditions, including for 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; the cost, timing and effects of, including the financial results deriving from, Alto Ingredients’ capital improvement projects; and the effects of the coronavirus pandemic, and its resurgence or abatement, and governmental, business and consumer responses to the pandemic. These factors also include, among others, the inherent uncertainty associated with financial and other projections; 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 specialty alcohol production and marketing 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; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2022.Media Contact:
Bryon McGregor, Alto Ingredients, Inc., 916-403-2768, mediarelations@altoingredients.comCompany IR Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755, investorrelations@altoingredients.comIR Agency Contact:
Kirsten Chapman, LHA Investor Relations, 415-433-3777, investorrelations@altoingredients.comALTO INGREDIENTS, INC
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)Three Months Ended
September 30,Nine Months Ended
September 30,2022 2021 2022 2021 Net sales $ 336,877 $ 305,556 $ 1,007,184 $ 822,400 Cost of goods sold 356,716 308,955 1,013,406 796,729 Gross profit (loss) (19,839 ) (3,399 ) (6,222 ) 25,671 Selling, general and administrative expenses (7,403 ) (5,533 ) (24,028 ) (19,777 ) Asset impairments — — — (3,100 ) Income (loss) from operations (27,242 ) (8,932 ) (30,250 ) 2,794 Interest expense, net (340 ) (429 ) (859 ) (3,359 ) Income from loan forgiveness — 5,973 — 9,860 Income from cash grant — — 22,652 — Other income (expense), net (456 ) 256 (68 ) 641 Income (loss) before provision for income taxes (28,038 ) (3,132 ) (8,525 ) 9,936 Provision for income taxes — — — — Net income (loss) $ (28,038 ) $ (3,132 ) $ (8,525 ) $ 9,936 Preferred stock dividends $ (319 ) $ (319 ) $ (946 ) $ (946 ) Income allocated to participating securities — — — (120 ) Net income (loss) available to common stockholders $ (28,357 ) $ (3,451 ) $ (9,471 ) $ 8,870 Net income (loss) per share, basic $ (0.39 ) $ (0.05 ) $ (0.13 ) $ 0.12 Net income (loss) per share, diluted $ (0.39 ) $ (0.05 ) $ (0.13 ) $ 0.12 Weighted-average shares outstanding, basic 73,011 71,383 71,815 71,002 Weighted-average shares outstanding, diluted 73,011 71,383 71,815 72,260
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)September 30, December 31, ASSETS 2022 2021 Current Assets: Cash and cash equivalents $ 28,458 $ 50,612 Restricted cash 3,955 11,513 Accounts receivable, net 76,455 86,888 Inventories 61,088 54,373 Derivative instruments 7,384 15,839 Other current assets 8,966 10,301 Total current assets 186,306 229,526 Property and equipment, net 233,475 222,550 Other Assets: Right of use operating lease assets, net 12,895 13,413 Notes receivable, noncurrent — 11,641 Intangible assets, net 9,234 2,678 Goodwill 5,970 — Other assets 6,788 5,145 Total other assets 34,887 32,877 Total Assets $ 454,668 $ 484,953
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)September 30, December 31, LIABILITIES AND STOCKHOLDERS’ EQUITY 2022 2021 Current Liabilities: Accounts payable – trade $ 17,493 $ 23,251 Accrued liabilities 22,172 21,307 Current portion – operating leases 3,646 3,909 Derivative instruments 1,106 13,582 Other current liabilities 10,096 7,553 Total current liabilities 54,513 69,602 Long-term debt 45,888 50,361 Operating leases, net of current portion 9,201 9,382 Other liabilities 10,068 10,394 Total Liabilities 119,670 139,739 Stockholders’ Equity: Alto Ingredients, Inc. Stockholders’ Equity: Preferred stock, $0.001 par value; 10,000 shares authorized;
Series A: 0 shares issued and outstanding as of
September 30, 2022 and December 31, 2021
Series B: 927 shares issued and outstanding as of
September 30, 2022 and December 31, 20211 1 Common stock, $0.001 par value; 300,000 shares authorized; 73,956 and 72,778 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 74 73 Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of September 30, 2022 and December 31, 2021 — — Additional paid-in capital 1,036,459 1,037,205 Accumulated other comprehensive loss (284 ) (284 ) Accumulated deficit (701,252 ) (691,781 ) Total Stockholders’ Equity 334,998 345,214 Total Liabilities and Stockholders’ Equity $ 454,668 $ 484,953 Reconciliation of Adjusted EBITDA to Net Income (Loss)
Three Months Ended
September 30,Nine Months Ended
September 30,(in thousands) (unaudited) 2022 2021 2022 2021 Net income (loss) $ (28,038 ) $ (3,132 ) $ (8,525 ) $ 9,936 Adjustments: Interest expense 340 429 859 3,359 Interest income (38 ) (183 ) (341 ) (553 ) Asset impairments — — — 3,100 Acquisition-related expense 875 — 2,625 — Provision for income taxes — — — — Depreciation and amortization expense 6,260 5,851 19,122 17,520 Total adjustments 7,437 6,097 22,265 23,426 Adjusted EBITDA $ (20,601 ) $ 2,965 $ 13,740 $ 33,362 Commodity Price Performance
Three Months Ended
September 30,Nine Months Ended
September 30,(unaudited) 2022 2021 2022 2021 Renewable fuel production gallons sold (in millions) 53.0 38.3 153.4 118.6 Specialty alcohol production gallons sold (in millions) 23.3 19.7 72.4 63.1 Third party renewable fuel gallons sold (in millions) 27.6 67.2 88.4 180.5 Total gallons sold (in millions) 103.9 125.2 314.2 362.2 Total gallons produced (in millions) 74.7 60.6 226.0 182.2 Production capacity utilization 85 % 59 % 86 % 57 % Average sales price per gallon $ 2.70 $ 2.47 $ 2.66 $ 2.27 Average CBOT ethanol price per gallon $ 2.16 $ 2.25 $ 2.16 $ 2.08 Corn cost per bushel – CBOT equivalent $ 7.27 $ 6.09 $ 6.98 $ 5.71 Average basis 1.08 0.89 0.80 0.53 Delivered cost of corn $ 8.35 $ 6.98 $ 7.78 $ 6.24 Total essential ingredients tons sold (in thousands) 422.0 305.6 1,234.9 886.5 Essential ingredients revenues as % of delivered cost of corn 30.4 % 29.5 % 33.2 % 33.8 % Segment Financials
Three Months Ended
September 30,Nine Months Ended
September 30,2022 2021 2022 2021 Net sales
Pekin Campus production, recorded as gross:Alcohol sales $ 133,680 $ 114,587 $ 393,498 $ 341,967 Essential ingredient sales 54,537 46,016 169,670 140,670 Intersegment sales 332 293 857 919 Total Pekin Campus sales 188,549 160,896 564,025 483,556
Marketing and distribution:Alcohol sales, gross $ 55,262 $ 112,393 $ 172,746 $ 255,702 Alcohol sales, net 308 505 975 1,489 Intersegment sales 3,121 2,415 9,360 7,277 Total marketing and distribution sales 58,691 115,313 183,081 264,468 Other production, recorded as gross: Alcohol sales $ 64,492 $ 25,188 $ 191,483 $ 63,311 Essential ingredient sales 24,439 6,867 66,748 19,261 Intersegment sales 3 259 14 896 Total Other production sales 88,934 32,314 258,245 83,468 Corporate and other 4,159 — 12,064 — Intersegment eliminations (3,456 ) (2,967 ) (10,231 ) (9,092 ) Net sales as reported $ 336,877 $ 305,556 $ 1,007,184 $ 822,400 Cost of goods sold: Pekin Campus $ 207,939 $
169,720$
572,512$ 468,970 Marketing and distribution 55,159 105,903 173,670 245,606 Other production 91,663 35,613 261,514 87,055 Corporate and other 2,925 — 8,995 — Intersegment eliminations (970 ) (2,281 ) (3,285 ) (4,902 ) Cost of goods sold as reported $ 356,716 $
308,955$ 1,013,406 $ 796,729 Gross profit (loss): Pekin Campus $ (19,390 ) $ (8,824 ) $ (8,487 ) $ 14,586 Marketing and distribution 3,532 9,410 9,411 18,862 Other production (2,729 ) (3,299 ) (3,269 ) (3,587 ) Corporate and other 1,234 — 3,069 — Intersegment eliminations (2,486 ) (686 ) (6,946 ) (4,190 ) Gross profit (loss) as reported $ (19,839 ) $ (3,399 ) $ (6,222 ) $ 25,671 
