• Alto Ingredients, Inc. Reports Second Quarter 2025 Results

    Источник: Nasdaq GlobeNewswire / 06 авг 2025 16:05:44   America/New_York

    - Western Assets Increased Gross Profit by $5.6 Million, Compared to Q2 2024 -

    PEKIN, Ill., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, reported its financial results for the quarter ended June 30, 2025.

    “In 2025, our higher productivity and efficiency initiatives positively impacted our financial position. These successes reflect our commitment to projects with near-term returns and long-term benefits,” said Bryon McGregor, President and Chief Executive Officer of Alto Ingredients. “In the second quarter of 2025, our Western assets generated gross profit, reflecting the positive impact of our liquid CO2 facility acquisition and our decision to cold-idle our Magic Valley facility due to adverse market factors. Our marketing and distribution segment improved because we integrated our bulk sales customers, continued third-party ethanol marketing relationships that met profitability criteria, and transitioned away from business that had limited returns. We partially offset the negative impact of the previously announced loading dock outage at Pekin by capitalizing on our operational flexibility, selling higher-margin ISCC export products into Europe, and rightsizing corporate overhead to align with our current company footprint. In the second quarter of 2025, this corporate reorganization exceeded our annualized savings goal of approximately $8 million.

    “Several positive regulatory developments, including the 45Z credit extension through the end of 2029, are beneficial for the industry. This has improved our earnings profile, increasing the intrinsic valuation of our facilities and creating opportunities for at least two of our plants to apply for credits for up to nearly $18 million in the next two years based on our nameplate and targeted carbon intensity scores. To execute our short-term payback strategy, we are evaluating projects to lower our carbon intensity, to capture more of the benefits from favorable regulations, improve prospects to monetize our Western assets, and increased our CO2 utilization at our Pekin campus and at Columbia. We expect that this approach will support our path to profitability.”

    Financial Results for the Three Months Ended June 30, 2025 Compared to 2024

    • Net sales were $218.4 million, compared to $236.5 million.
    • Cost of goods sold was $220.4 million, compared to $228.9 million.
    • Gross loss was $1.9 million, compared to gross profit of $7.6 million. The year-over-year change in unrealized noncash derivatives was negative $13.2 million and the realized derivatives gain was positive $7.6 million, resulting in a net unfavorable change of $5.6 million. Although the market crush continued to improve in 2025, it was still on average $0.10 lower than in the second quarter of 2024.
    • Selling, general and administrative expenses were $6.2 million, compared to $9.0 million.
    • Interest expense was $2.8 million, compared to $1.7 million.
    • Net loss attributable to common stockholders was $11.3 million, or $0.15 per share, compared to $3.4 million, or $0.05 per share.
    • Adjusted EBITDA was negative $0.2 million, including $4.7 million in realized gains on derivatives, compared to negative $5.9 million, including $2.9 million in realized losses on derivatives.

    Financial Results for the Six Months Ended June 30, 2025 Compared to 2024

    • Net sales were $445.0 million, compared to $477.1 million.
    • Cost of goods sold was $448.7 million, compared to $471.9 million.
    • Gross loss was $3.7 million, compared to a gross profit of $5.2 million. The year-over-year change in unrealized noncash derivatives was negative $14.8 million and the realized derivatives gain was positive $7.6 million, resulting in a net unfavorable impact of $7.2 million. Although the market crush continued to improve in 2025, it was still on average lower than in the first half of 2024.
    • Selling, general and administrative expenses were $13.4 million, compared to $16.9 million.
    • Interest expense was $5.5 million, compared to $3.3 million.
    • Net loss attributable to common stockholders was $23.3 million, or $0.31 per share, compared to $15.5 million, or $0.21 per share.
    • Adjusted EBITDA was negative $4.6 million, including $4.9 million in realized gains on derivatives, compared to negative $13.0 million, including $2.7 million in realized losses on derivatives.

    Cash and cash equivalents at June 30, 2025 were $29.8 million, compared to $26.8 million at March 31, 2025 and $35.5 million at December 31, 2024. At June 30, 2025, the company’s borrowing availability was $70 million including $5 million under the company’s operating line of credit and $65 million under its term loan facility, subject to certain conditions.

    Second Quarter 2025 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, August 6, 2025, and will deliver prepared remarks via webcast followed by a question-and-answer session.

    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 up to twenty minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, August 13, 2025. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 1666529.

    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, unrealized derivative gains and 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 Alto Ingredients, Inc.
    Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. 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’ projected outlook and future performance, including the anticipated timing and effects of its productivity and efficiency initiatives; expectations around, and the anticipated timing and effects of, regulatory developments, including the Section 45Z credit extension and the dollar amounts of credits for which Alto Ingredients may be eligible to apply and receive; 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 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, including from tariffs; Alto Ingredients’ ability to timely and fully realize the results of its productivity and cost saving initiatives; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities, and realize the expected results, under existing and new legislation, including the Section 45Z regulations, and to successfully apply for and receive anticipated credit amounts. 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 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; 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 May 9, 2025.

    Company IR and Media Contact:
    Michael Kramer, Alto Ingredients, Inc., 916-403-2755
    Investorrelations@altoingredients.com

    IR Agency Contact:
    Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777
    altoinvestor@allianceadvisors.com

     
    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)
       
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2025 2024 2025 2024
            
    Net sales$218,436 $236,468 $444,976 $477,097
    Cost of goods sold220,373 228,915 448,720 471,944
    Gross profit (loss)(1,937) 7,553 (3,744) 5,153
    Selling, general and administrative expenses6,171 8,961 13,361 16,893
    Loss from operations(8,108) (1,408) (17,105) (11,740)
    Interest expense, net(2,811) (1,669) (5,540) (3,303)
    Other income (expense), net(78) (29) (31) 212
    Loss before provision for income taxes(10,997) (3,106) (22,676) (14,831)
    Provision for income taxes— — — —
    Net loss$ (10,997) $(3,106) $(22,676) $(14,831)
    Preferred stock dividends$(315) $(316) $(627) $(631)
    Net loss attributable to common stockholders$ (11,312) $(3,422) $(23,303) $(15,462)
    Net loss per share, basic and diluted$(0.15) $(0.05) $(0.31) $(0.21)
    Weighted-average shares outstanding, basic and diluted74,611 73,486 74,232 73,126



    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)
        
    ASSETS
    		June 30,
    2025    		 December 31,
    2024
    Current Assets:   
    Cash and cash equivalents$29,768 $35,469
    Restricted cash723 742
    Accounts receivable, net57,454 58,217
    Inventories53,867 49,914
    Derivative instruments2,563 3,313
    Other current assets5,350 5,463
    Total current assets149,725 153,118
    Property and equipment, net207,997 214,742
    Other Assets: 
    Right of use operating lease assets, net19,255 20,553
    Intangible assets, net7,885 4,509
    Other assets8,203 8,516
    Total other assets35,343 33,578
    Total Assets$393,065 $401,438


    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
        
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    		June 30,
    2025    		 December 31,
    2024
    Current Liabilities:   
    Accounts payable$15,705 $20,369
    Accrued liabilities16,021 24,214
    Current portion – operating leases4,984 4,851
    Derivative instruments910 1,177
    Other current liabilities4,893 7,193
    Total current liabilities42,513 57,804
        
    Long-term debt, net118,323 92,904
    Operating leases, net of current portion15,414 16,913
    Other liabilities8,970 8,754
    Total Liabilities185,220 176,375
        
    Stockholders’ Equity:   
    Preferred stock, $0.001 par value; 10,000 shares authorized;
     Series A: no shares issued and outstanding as of June 30, 2025 and December 31, 2024
     Series B: 927 shares issued and outstanding as of June 30, 2025 and December 31, 2024    		1 1
    Common stock, $0.001 par value; 300,000 shares authorized; 77,201 and 76,565 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively77 77
    Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of June 30, 2025 and December 31, 2024— —
    Additional paid-in capital1,050,261 1,044,176
    Accumulated other comprehensive income4,975 4,975
    Accumulated deficit(847,469) (824,166)
    Total Stockholders’ Equity207,845 225,063
    Total Liabilities and Stockholders’ Equity$393,065 $401,438
         

    Reconciliation of Adjusted EBITDA to Net Loss

     
    		Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in thousands) (unaudited)          2025 2024 2025 2024
    Net loss$(10,997) $(3,106) $(22,676) $(14,831)
    Adjustments:       
    Interest expense2,811 1,669 5,540 3,303
    Interest income(67) (150) (150) (325)
    Unrealized derivative losses (gains)2,117 (11,089) 483 (14,279)
    Acquisition-related (income) expense(460) 675 (460) 1,350
    Depreciation and amortization expense6,365 6,074 12,631 11,802
    Total adjustments10,766 (2,821) 18,044 1,851
    Adjusted EBITDA$(231) $(5,927) $(4,632) $(12,980)
            

    Sales and Operating Metrics (unaudited)

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2025 2024 2025 2024
    Alcohol Sales (gallons in millions)       
    Pekin Campus renewable fuel gallons sold28.8 30.7 61.4 62.5
    Western production renewable fuel gallons sold8.3 9.0 16.6 20.2
    Third-party renewable fuel gallons sold29.7 34.4 54.1 64.1
    Total renewable fuel gallons sold66.8 74.1 132.1 146.8
    Specialty alcohol gallons sold19.9 21.0 44.2 47.3
    Total gallons sold86.7 95.1 176.3 194.1
            
    Sales Price per Gallon       
    Pekin Campus production$1.95 $1.98 $1.92 $1.94
    Western production$2.00 $1.94 $1.98 $1.86
    Marketing and distribution$1.96 $2.04 $1.98 $1.94
    Consolidated sales price per gallon$1.95 $2.00 $1.94 $1.93
            
    Alcohol Production (gallons in millions)       
    Pekin Campus production50.9 50.0 105.2 103.6
    Western production8.3 8.6 16.6 18.3
    Total production gallons59.2 58.6 121.8 121.9
            
    Corn Cost per Bushel       
    Pekin Campus production$4.86 $4.50 $4.75 $4.62
    Western production$5.71 $5.78 $5.83 $5.84
     Consolidated cost per bushel$4.98 $4.68 $4.89 $4.81


    Sales and Operating Metrics (unaudited)       
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2025 2024 2025 2024
    Average Market Metrics       
    PLATTS Ethanol price per gallon$1.72 $1.79 $1.72 $1.67
    CME Corn cost per bushel$4.51 $4.43 $4.62 $4.39
    Board corn crush per gallons (1)$0.11 $0.21 $0.07 $0.10
            
    Essential Ingredients Sold (thousand tons)       
    Pekin Campus production:       
    Distillers grains70.2 79.7 160.9 167.4
    CO245.1 43.3 90.4 82.4
    Corn wet feed28.7 24.8 63.2 50.4
    Corn dry feed21.4 19.8 45.2 38.7
    Corn oil and germ18.9 17.5 38.5 35.3
    Syrup and other11.7 11.1 19.9 20.6
    Corn meal8.3 8.0 17.7 16.3
    Yeast5.7 5.8 12.1 11.5
    Total Pekin Campus essential ingredients sold210.0 210.0 447.9 422.6
            
    Western production:       
    Distillers grains61.8 61.8 119.9 133.6
    CO214.4 15.1 27.0 28.4
    Syrup and other1.2 2.0 2.0 16.2
    Corn oil1.0 0.9 2.4 2.4
    Total Western production essential ingredients sold78.4 79.8 151.3 180.6
            
    Total Essential Ingredients Sold288.4 289.8 599.2 603.2
            
            
    Essential ingredients return % (2)       
    Pekin Campus return44.2% 48.8% 46.1% 50.0%
    Western production return50.8% 35.1% 49.9% 37.4%
    Consolidated total return45.2% 45.6% 46.7% 47.8%
            

    ________________

    (1)   Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.

    (2)   Essential ingredients revenues as a percentage of total corn costs consumed.

    Segment Financials (unaudited, in thousands)

     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2025 2024 2025 2024
    Net Sales       
     
    Pekin Campus production, recorded as gross:    		       
    Alcohol sales$94,155 $100,687 $201,390 $209,035
    Essential ingredient sales39,565 39,371 84,183 86,080
    Intersegment sales183 286 481 606
    Total Pekin Campus sales133,903 140,344 286,054 295,721
            
    Marketing and distribution:       
    Alcohol sales, gross$58,106 $70,157 $107,101 $124,587
    Alcohol sales, net80 64 142 98
    Intersegment sales2,334 2,388 4,840 5,140
    Total marketing and distribution sales60,520 72,609 112,083 129,825
            
    Western production, recorded as gross:       
    Alcohol sales$16,604 $17,456 $32,798 $37,690
    Essential ingredient sales8,250 5,950 16,058 13,776
    Intersegment sales505 — 769 (130)
    Total Western production sales25,359 23,406 49,625 51,336
            
    Corporate and other1,676 2,783 3,304 5,831
    Intersegment eliminations(3,022) (2,674) (6,090) (5,616)
    Net sales as reported$218,436 $236,468 $444,976 $477,097
            
    Cost of goods sold:       
    Pekin Campus production$139,748 $130,200 $294,974 $281,311
    Marketing and distribution56,518 69,437 104,167 123,123
    Western production23,501 27,167 49,024 63,683
    Corporate and other1,705 2,943 3,386 5,738
    Intersegment eliminations(1,099) (832) (2,831) (1,911)
    Cost of goods sold as reported$220,373 $228,915 $448,720 $471,944
            
    Gross profit (loss):       
    Pekin Campus production$(5,845) $10,144 $(8,920) $14,410
    Marketing and distribution4,002 3,172 7,916 6,702
    Western production1,858 (3,761) 601 (12,347)
    Corporate and other(29) (160) (82) 93
    Intersegment eliminations(1,923) (1,842) (3,259) (3,705)
    Gross profit (loss) as reported$(1,937) $7,553 $(3,744) $5,153

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