Alto Ingredients : Earnings Release (2025 03 05 Alto Ingredients Inc Reports Fourth Quarter and 633)
ALTO
March 5, 2025
Alto Ingredients, Inc. Reports Fourth Quarter and Year-end 2024 Results
- Implemented Cost Savings Expected to Yield Approximately $8 Million Annually - - Integrated Accretive Acquisition of a Beverage-grade Liquid CO2 Processor -
- Considering Asset Sales, a Merger or Other Strategic Transactions -
PEKIN, Ill., March 05, 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 and year ended December 31, 2024.
Bryon McGregor, President and Chief Executive Officer of Alto Ingredients said, "During the fourth quarter of 2024 and the first quarter of 2025, we implemented cost saving initiatives, including cold idling our Magic Valley plant, and lowering total company headcount by 16%. We expect these staffing reductions to save approximately $8 million annually beginning in the second quarter of 2025. While ensuring high customer service, we rightsized the company to our smaller organizational footprint to position for long-term sustainable growth.
"On January 1st, we acquired a beverage-grade liquid carbon dioxide processor adjacent to our Columbia site. Bolstering economics and increasing asset valuation, this immediately accretive transaction has a compelling payback of less than two years as well as opportunities for cost synergies and expanded production. At our Pekin Campus, we continue to diligently pursue opportunities to optimize carbon, which has been historically underutilized and undervalued. Lastly, with the assistance of our financial and legal advisors, we are considering a broad range of options, including asset sales, a merger or other strategic transactions to better align the long-term value potential of the company."
Chief Financial Officer Rob Olander added, "Our restructuring has improved Alto's financial position going forward. In doing so, during the fourth quarter of 2024, we recognized over $30 million in asset impairments and prior acquisition-related expenses, which reset our base. Combining our reduced expense run rate with our improved performance at the Pekin wet mill, our synergistic acquisition of premium liquid CO2 processing and our entry into the European market, we are optimistic about 2025."
Financial Results for the Three Months Ended December 31, 2024 Compared to 2023
Net sales were $236.3 million, compared to $273.6 million.
Cost of goods sold was $237.7 million, compared to $276.2 million.
Gross loss was $1.4 million, including $3.5 million in realized losses on derivatives,
compared to a gross loss of $2.5 million, including $2.3 million in realized losses on derivatives.
Selling, general and administrative expenses were $7.4 million, compared to $7.8 million.
Expenses related to the Eagle Alcohol acquisition were $5.7 million, compared to $0.7 million.
Asset impairments were $24.8 million comprised of $21.4 million related to Magic Valley and $3.4 million related to Eagle Alcohol, compared to $6.0 million related to Eagle Alcohol.
Net loss attributable to common stockholders was $42.0 million, or $0.57 per share, compared to $19.3 million, or $0.26 per share.
Adjusted EBITDA was negative $7.7 million, including $3.5 million in realized losses on derivatives, compared to positive $3.5 million, including $2.3 million in realized losses on derivatives.
Cash and cash equivalents were $35.5 million at December 31, 2024, compared to $30.0 million at December 31, 2023. At December 31, 2024, the company's borrowing availability was $88.1 million including $23.1 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 Twelve Months Ended December 31, 2024 Compared to 2023
Net sales were $965.3 million, compared to $1,222.9 million.
Net loss attributable to common stockholders was $60.3 million, including $32.5 million in expenses related to asset impairments and the company's Eagle Alcohol acquisition, or $0.82 per share. This compares to $29.3 million, including $6.5 million in net expenses related to asset impairments, the company's Eagle Alcohol acquisition and a USDA cash grant, or $0.40 per share.
Adjusted EBITDA was negative $8.5 million, including $2.5 million in realized losses on derivatives and $5.4 million in costs related to the biennial outage in the second quarter, compared to positive $20.8 million, including $1.6 million in realized gains on derivatives.
Fourth 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, March 5, 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, March 5, 2025, through 8:00 p.m. Eastern Time on Wednesday, March 12, 2025. To access the replay, please dial
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 timing and effects of its cost savings initiatives and its acquisition of a liquid carbon dioxide processor adjacent to its Columbia plant; Alto Ingredients' capital projects, including its carbon capture and storage (CCS) project and opportunities to optimize carbon; 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; 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 November 8, 2024.
Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755
IR Agency Contact:
Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777 [email protected]
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Net sales
Cost of goods sold Gross profit (loss)
Selling, general and administrative expenses Acquisition-related expenses
Gain (loss) on sale of assets Asset impairments
Loss from operations Interest expense, net Income from cash grant Other income, net
Loss before provision for income taxes Provision for income taxes
Net loss
Preferred stock dividends
Net loss attributable to common stockholders Net loss per share, basic and diluted Weighted-average shares outstanding, basic and diluted
$
236,347
$
273,625
$
965,258
$
1,222,940
237,738
276,150
955,536
1,207,287
(1,391)
(2,525)
9,722
15,653
(7,358)
(7,823)
(29,736)
(29,864)
(5,676)
(700)
(7,701)
(2,800)
-
(153)
830
(293)
(24,790)
(5,970)
(24,790)
(6,544)
(39,215)
(17,171)
(51,675)
(23,848)
(2,474)
(2,126)
(7,644)
(7,425)
-
-
-
2,812
150
449
508
553
(41,539)
(18,848)
(58,811)
(27,908)
173
97
173
97
$
(41,712)
$
(18,945)
$
(58,984)
$
(28,005)
$
(319)
$
(319)
$
(1,269)
$
(1,265)
$
(42,031)
$
(19,264)
$
(60,253)
$
(29,270)
$
(0.57)
$
(0.26)
$
(0.82)
$
(0.40)
73,835
72,969
73,482
73,339
Current Assets:
Cash and cash equivalents
Restricted cash
Accounts receivable, net
Inventories
Derivative instruments
Other current assets
Total current assets
Property and equipment, net
Other Assets:
Right of use operating lease assets, net Intangible assets, net
Other assets Total other assets
Total Assets
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
ASSETS
December 31,
December 31,
2024
2023
$
35,469
$
30,014
742
15,466
58,217
58,729
49,914
52,611
3,313
2,412
5,463
9,538
153,118
168,770
214,742
248,748
20,553
22,597
4,509
8,498
8,516
5,628
33,578
36,723
$
401,438
$
454,241
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31,
December 31,
2024
2023
Current Liabilities:
Accounts payable
$
20,369
$
20,752
Accrued liabilities
24,214
20,205
Current portion - operating leases
4,851
4,333
Derivative instruments
1,177
13,849
Other current liabilities
7,193
6,149
Total current liabilities
57,804
65,288
Long-term debt, net
92,904
82,097
Operating leases, net of current portion
16,913
19,029
Other liabilities
8,754
8,270
Total Liabilities
176,375
174,684
Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000 shares authorized;
Series A: no shares issued and outstanding as of
December 31, 2024 and 2023
Series B: 927 shares issued and outstanding as of
December 31, 2024 and 2023
1
1
Common stock, $0.001 par value; 300,000 shares authorized;
76,565 and 75,703 shares issued and outstanding as of
December 31, 2024 and 2023, respectively
77
76
Non-voting common stock, $0.001 par value; 3,553 shares authorized;
1 share issued and outstanding as of December 31, 2024 and 2023
-
-
Additional paid-in capital
1,044,176
1,040,912
Accumulated other comprehensive income
4,975
2,481
Accumulated deficit
(824,166)
(763,913)
Total Stockholders' Equity
225,063
279,557
Total Liabilities and Stockholders' Equity
$
401,438
$
454,241
Reconciliation of Adjusted EBITDA to Net Loss
Three Months Ended
Years Ended
December 31,
December 31,
(in thousands) (unaudited)
2024
2023
2024
2023
Net loss
$
(41,712)
$
(18,945)
$
(58,984)
$
(28,005)
Adjustments:
Interest expense
2,474
2,126
7,644
7,425
Interest income
(112)
(265)
(689)
(854)
Unrealized derivative (gains) losses
(5,495)
8,162
(13,574)
9,679
Acquisition-related expense
5,676
700
7,701
2,800
Provision for income taxes
173
97
173
97
Asset impairments
24,790
5,970
24,790
6,544
Depreciation and amortization expense
6,548
5,698
24,408
23,080
Total adjustments
34,054
22,488
50,453
48,771
Adjusted EBITDA
$
(7,658)
$
3,543
$
(8,531)
$
20,766
Segment Financials (unaudited, in thousands)
Three Months Ended
Years Ended
December 31,
December 31,
2024
2023
2024
2023
Net Sales
Pekin Campus, recorded as gross:
Alcohol sales
$
100,216
$
113,588
$
415,710
$
502,217
Essential ingredient sales
42,011
48,483
169,308
217,702
Intersegment sales
316
307
1,243
1,427
Total Pekin Campus sales
142,543
162,378
586,261
721,346
Marketing and distribution:
Alcohol sales, gross
$
37,230
$
46,844
$
216,295
$
262,587
Alcohol sales, net
60
73
229
365
Intersegment sales
2,831
2,920
10,833
11,654
Total marketing and distribution sales
40,121
49,837
227,357
274,606
Western production, recorded as gross:
Alcohol sales
$
41,306
$
44,496
$
115,389
$
166,971
Essential ingredient sales
12,769
16,650
36,953
57,264
Intersegment sales
-
35
(122)
134
Total Western production sales
54,075
61,181
152,220
224,369
Corporate and other
2,755
3,491
11,374
15,834
Intersegment eliminations
(3,147)
(3,262)
(11,954)
(13,215)
Net sales as reported
$
236,347
$
273,625
$
965,258
$
1,222,940
Cost of goods sold:
Pekin Campus (1) (2)
$
139,899
$
163,497
$
563,033
$
710,089
Marketing and distribution
36,348
46,311
213,023
259,234
Western production (1)
59,449
65,042
172,209
230,444
Corporate and other
3,592
2,802
12,285
12,122
Intersegment eliminations
(1,550)
(1,502)
(5,014)
(4,602)
Cost of goods sold as reported
$
237,738
$
276,150
$
955,536
$
1,207,287
Gross profit (loss):
Pekin Campus
$
2,644
$
(1,119)
$
23,228
$
11,257
Marketing and distribution
3,773
3,526
14,334
15,372
Western production
(5,374)
(3,861)
(19,989 )
(6,075)
Corporate and other
(837)
689
(911 )
3,712
Intersegment eliminations
(1,597)
(1,760)
(6,940 )
(8,613)
Gross profit (loss) as reported
$
(1,391)
$
(2,525)
$
9,722
$
15,653
Sales and Operating Metrics (unaudited)
Disclaimer
Alto Ingredients Inc. published this content on March 05, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 05, 2025 at 21:52:37.157.