• Alto Ingredients, Inc. Reports Third Quarter 2024 Results

    Источник: Nasdaq GlobeNewswire / 06 ноя 2024 15:07:00   America/Chicago

    - Enters CO2 Transportation and Sequestration Agreement with Vault 44.01 -

    PEKIN, Ill., Nov. 06, 2024 (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 September 30, 2024. In a separate press release, the company announced it entered into a CO2 Transportation and Sequestration Agreement (TSA) with Vault 44.01 to transport, inject and sequester carbon from the company’s Pekin campus into the Mt. Simon sandstone formation in Illinois.

    Bryon McGregor, President and CEO of Alto Ingredients, said, “Our team is committed to delivering the highest quality products to our customers while improving profitability on a consistent basis. In Q3 2024, we increased the production capabilities and uptime at our Pekin campus, compared to the prior year quarter, reflecting the success of our scheduled repairs and maintenance outage in Q2. As a result, specialty alcohol sold increased by 4 million gallons compared to last year, positively shifting our sales mix. Consolidated gross profit for the quarter improved over 40% year-over-year to $6.0 million despite fluctuating market conditions.

    “We are managing through the current market dynamics and positioning the company to leverage the opportunities presented by our unique facilities. In addition, consistent with our strategy to lower our carbon footprint, we entered into an agreement for the safe transportation and storage of our CO2 emissions from our Pekin campus. While we await EPA submission and approval, address financing and source equipment, the TSA marks a significant milestone on our path toward a more sustainable and prosperous future.”

    Financial Results for the Three Months Ended September 30, 2024 Compared to 2023

    • Net sales were $251.8 million, compared to $318.1 million.
    • Cost of goods sold was $245.9 million, compared to $314.0 million.
    • Gross profit was $6.0 million, including $3.6 million in realized gains on derivatives, compared to a gross profit of $4.2 million, including $6.2 million in realized gains on derivatives.
    • Selling, general and administrative expenses were $7.5 million, compared to $8.5 million.
    • Gain on sale of certain idled assets was $0.8 million, compared to none in the prior year period.
    • Income from cash grant was $2.8 million in 2023, while none in 2024 as the USDA closed out the Biofuel Producer Program associated with the pandemic.
    • Net loss available to common stockholders was $2.8 million, or $0.04 per share, compared to $3.8 million, or $0.05 per share.
    • Adjusted EBITDA was positive $12.2 million, including $3.6 million in realized gains on derivatives, compared to positive $13.6 million, including $6.2 million dollars in realized gains on derivatives and $2.8 million income from cash grant.

    Cash and cash equivalents were $33.6 million at September 30, 2024, compared to $30.0 million at December 31, 2023. At September 30, 2024, the company’s borrowing availability was $92.2 million including $27.2 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

    Financial Results for the Nine Months Ended September 30, 2024 Compared to 2023

    • Net sales were $728.9 million, compared to $949.3 million.
    • Net loss available to common stockholders was $18.2 million, or $0.25 per share, compared to $10.0 million, or $0.14 per share.
    • Adjusted EBITDA was negative $0.8 million, including $0.9 million in realized gains on derivatives and $5.4 million in costs related to the biennial outage in the second quarter, compared to positive $17.2 million, including $4.0 million in realized gains on derivatives and the aforementioned $2.8 million USDA cash grant.

    Third Quarter 2024 Results Conference Call
    Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, November 6, 2024, 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, November 6, 2024, through 8:00 p.m. Eastern Time on Wednesday, November 13, 2024. To access the replay, please dial (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 8828903.

    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) produces and distributes specialty alcohols, essential ingredients and renewable fuels. 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; Alto Ingredients’ repair and maintenance programs, plant improvements and other capital projects, including its carbon capture and storage (CCS) project, 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 adverse economic and market conditions, including for specialty alcohols, renewable fuels 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’ repair and maintenance programs, plant improvements 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, including CCS; 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 Alto Ingredients expects to derive from CCS; 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 8, 2024.

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

    IR Agency Contact:
    Kirsten Chapman, LHA Investor Relations, 415-433-3777, Investorrelations@altoingredients.com



    ALTO INGREDIENTS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited, in thousands, except per share data)

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    		 
      2024  2023  2024  2023 
         
    Net sales$251,814 $318,127 $        728,911 $        949,315 
    Cost of goods sold 245,854  313,966          717,798          931,137 
    Gross profit 5,960  4,161  11,113  18,178 
    Selling, general and administrative expenses (7,510) (8,488) (24,403) (24,281)
    Gain on sale of assets 830  —  830  — 
    Asset impairments —  —  —  (574)
    Loss from operations (720) (4,327) (12,460) (6,677)
    Interest expense, net (1,867) (2,000) (5,170) (5,299)
    Income from cash grant —  2,812  —  2,812 
    Other income, net 146  26  358  104 
    Loss before provision for income taxes (2,441) (3,489) (17,272) (9,060)
    Provision for income taxes —  —  —  — 
    Net loss$(2,441)$(3,489)$        (17,272)$        (9,060)
    Preferred stock dividends$(319)$(319)$        (950)$        (946)
    Net loss available to common stockholders$(2,760)$(3,808)$        (18,222)$        (10,006)
    Net loss per share, basic and diluted$        (0.04)$        (0.05)$         (0.25)$         (0.14)
    Weighted-average shares outstanding, basic and diluted         73,835          73,191          73,364          73,464 
     


    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands, except par value)

    ASSETSSeptember 30,
    2024    		  December 31,
    2023
    Current Assets:  
    Cash and cash equivalents$33,591 $30,014
    Restricted cash4,903  15,466
    Accounts receivable, net52,038  58,729
    Inventories48,014  52,611
    Derivative instruments36  2,412
    Other current assets6,568  9,538
    Total current assets145,150  168,770
    Property and equipment, net238,892  248,748
    Other Assets:
    Right of use operating lease assets, net19,283  22,597
    Intangible assets, net8,057  8,498
    Other assets6,029  5,628
    Total other assets33,369  36,723
    Total Assets$417,411 $454,241
     


    ALTO INGREDIENTS, INC.
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    (unaudited, in thousands, except par value)
        
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    		 September 30,
    2024    		  December 31,
    2023    		 
    Current Liabilities:    
    Accounts payable$        17,205 $        20,752 
    Accrued liabilities 14,255  20,205 
    Current portion – operating leases 4,440  4,333 
    Derivative instruments 3,394  13,849 
    Other current liabilities 5,808        6,149 
    Total current liabilities 45,102  65,288 
       
    Long-term debt, net 83,342  82,097 
    Operating leases, net of current portion 15,740  19,029 
    Other liabilities 9,302  8,270 
    Total Liabilities 153,486  174,684 
       
    Stockholders’ Equity:  
    Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of September 30, 2024 and December 31, 2023 Series B: 927 shares issued and outstanding as of September 30, 2024 and December 31, 2023 1  1 
    Common stock, $0.001 par value; 300,000 shares authorized; 76,625 and 75,703 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 77  76 
    Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of September 30, 2024 and December 31, 2023 —  — 
    Additional paid-in capital 1,043,501  1,040,912 
    Accumulated other comprehensive income 2,481  2,481 
    Accumulated deficit (782,135) (763,913)
    Total Stockholders’ Equity 263,925  279,557 
    Total Liabilities and Stockholders’ Equity
    		$417,411 $454,241 
     


    Reconciliation of Adjusted EBITDA to Net Loss

    		 
     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,    		 
    (in thousands) (unaudited)           2024  2023  2024  2023 
    Net loss$(2,441)$(3,489)$(17,272)$(9,060)
    Adjustments:    
    Interest expense, net 1,867  2,000  5,170  5,299 
    Interest income (194) (179) (519) (590)
    Unrealized derivative (gains) losses 6,199  8,917  (8,079) 1,517 
    Acquisition-related expense 675  700  2,025  2,100 
    Asset impairments —  —  —  574 
    Depreciation and amortization expense 6,058  5,647  17,860  17,382 
    Total adjustments 14,605  17,085  16,457  26,282 
    Adjusted EBITDA$12,164 $13,596 $ (815)$17,222 


    Sales and Operating Metrics (unaudited)

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024  2023  2024  2023
    Alcohol Sales (gallons in millions)    
    Pekin Campus renewable fuel gallons sold 31.1  34.4  93.6  104.4
    Western production renewable fuel gallons sold 18.0  22.2  38.2  46.6
    Third party renewable fuel gallons sold 25.2  21.9  89.3  82.4
    Total renewable fuel gallons sold 74.3  78.5  221.1  233.4
    Specialty alcohol gallons sold 22.5  18.6  69.8  56.6
    Total gallons sold 96.8  97.1  290.9  290.0
         
    Sales Price per Gallon    
    Pekin Campus$2.02 $2.48 $1.96 $2.46
    Western production$2.02 $2.57 $1.94 $2.63
    Marketing and distribution$2.17 $2.69 $2.01 $2.62
    Total$2.06 $2.56 $1.97 $2.53
         
    Alcohol Production (gallons in millions)    
    Pekin Campus 53.4  51.8  157.0  158.1
    Western production 19.2  22.5  37.5  47.3
    Total 72.6  74.3  194.5  205.4
         
    Corn Cost per Bushel    
    Pekin Campus$4.40 $6.29 $4.55 $6.72
    Western production$5.52 $7.37 $5.69 $7.91
    Total$4.68 $6.60 $4.76 $6.98
         


    Sales and Operating Metrics (unaudited)

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024   2023   2024   2023
     Average Market Metrics    
    PLATTS Ethanol price per gallon$1.81  $2.29  $1.72  $2.32
    CME Corn cost per bushel$3.92  $4.98  $4.23  $5.94
    Board corn crush per gallons (1)$0.41  $0.51  $0.21  $0.20
         
    Essential Ingredients Sold (thousand tons)    
    Pekin Campus:    
    Distillers grains 83.7   85.3   251.1   252.5
    CO2 53.5   48.9   135.9   139.0
    Corn wet feed 30.0   28.3   80.4   70.0
    Corn dry feed 26.5   22.1   65.2   67.3
    Corn oil and germ 18.8   17.8   54.1   55.6
    Syrup and other 8.0   9.2   28.6   28.5
    Corn meal 9.8   8.2   26.1   27.8
    Yeast 6.3   6.4   17.8   19.7
    Total Pekin Campus essential ingredients sold 236.6   226.2   659.2   660.4
         
    Western production:    
    Distillers grains 116.6   144.6   250.2   307.7
    CO2 14.7   14.9   43.1   41.7
    Syrup and other 21.4   35.2   37.6   71.6
    Corn oil 2.1   2.3   4.5   5.2
    Total Western production essential ingredients sold 154.8   197.0   335.4   426.2
         
    Total Essential Ingredients Sold 391.4   423.2   994.6   1,086.6
         
         
    Essential ingredients return % (2)     
    Pekin Campus return 49.0%   44.8%   49.7%   44.1% 
    Western production return 28.6%   31.3%   33.0%   32.3% 
    Consolidated total return 42.8%   40.4%   46.0%   41.2% 
          

                                                

    (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
    September 30,    		 Nine Months Ended
    September 30,
     2024 2023  2024 2023
    Net Sales        


    Pekin Campus, recorded as gross:    		        
    Alcohol sales$106,459 $128,554  $315,494 $388,629
    Essential ingredient sales41,217 51,634  127,297 169,220
    Intersegment sales321 363  927 1,120
    Total Pekin Campus sales147,997 180,551  443,718 558,969
             
    Marketing and distribution:        
    Alcohol sales, gross$54,531 $58,805  $179,118 $215,741
    Alcohol sales, net71 74  169 292
    Intersegment sales2,862 3,392  8,002 8,734
    Total marketing and distribution sales57,464 62,271  187,289 224,767
             
    Western production, recorded as gross:        
    Alcohol sales$36,395 $57,159  $74,084 $122,477
    Essential ingredient sales10,408 17,841  24,184 40,614
    Intersegment sales8 37  (122) 99
    Total Western production sales46,811 75,037  98,146 163,190
             
    Corporate and other2,733 4,060  8,565 12,342
    Intersegment eliminations(3,191) (3,792)  (8,807) (9,953)
    Net sales as reported$251,814 $318,127  $728,911 $949,315
             
    Cost of goods sold:        
    Pekin Campus$141,823 $179,995  $423,135 $546,591
    Marketing and distribution53,553 58,051  176,676 212,923
    Western production49,079 73,584  112,762 165,401
    Corporate and other2,952 3,538  8,690 9,322
    Intersegment eliminations(1,553) (1,202)  (3,465) (3,100)
    Cost of goods sold as reported$245,854 $313,966  $717,798 $931,137
             
    Gross profit (loss):        
    Pekin Campus$6,174 $556  $20,583 $12,378
    Marketing and distribution3,911 4,220  10,613 11,844
    Western production(2,268) 1,453  (14,616) (2,211)
    Corporate and other(219) 522  (125) 3,020
    Intersegment eliminations(1,638) (2,590)  (5,342) (6,853)
    Gross profit (loss) as reported$5,960 $4,161  $11,113 $18,178



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