Alto Ingredients, Inc. · NASDAQ:ALTO
Alto Ingredients — Q2 2024 Earnings Presentation
22 slides from Alto Ingredients's earnings presentation, Aug 6, 2024
Slide 1: Alto Ingredients, Inc. Q2 2024 Investor Presentation
Alto Ingredients, Inc. Q2 2024 Investor Presentation August 6, 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 existin
Slide 3: Transforming corn into higher-margin specialty alcohol and essential ingredients
Transforming corn into higher-margin specialty alcohol and essential ingredients used in a wide range of consumer and commercial products 3
Slide 4: Producer and distributor of renewable fuel, essential ingredients and specialty alcohols
Producer and distributor of renewable fuel, essential ingredients and specialty alcohols 4
Slide 5: Key Initiatives
Key Initiatives Improving Profitability and Reducing Impact of Commodity Pricing Targeting higher-margin markets with premium products Pursuing carbon capture & storage Optimizing asset base & executing efficiency initiatives Advancing traceability & sustainability certifications & programs Broadeni
Slide 6: Targeting Higher-margin Markets
Targeting Higher-margin Markets Making everyday products better: Columbia Boardman, Oregon Pekin Campus • Health, Home & Beauty Headquarters Pekin, Illinois • Food & Beverage • Industry & Agriculture • Essential Ingredients • Renewable Fuels Engaging in decarbonization to support sustainability Magi
Slide 7: Making Everyday Products Better
Making Everyday Products Better Providing Customers with Ingredients Used in Premium Products Health, Home Food & Industry & Essential Renewable & Beauty Beverage Agriculture Ingredients Fuels API Grade Ethyl Grain Neutral Spirits Industrial Grade Ethyl Alto Yeast Transportation Fuel Alcohol Alcohol
Slide 8: Capital Initiatives to Enhance Premier Assets
Capital Initiatives to Enhance Premier Assets Diversifying revenue, creating differentiation, increasing efficiencies and optimizing facilities In Operation Under Development For Future Evaluation • CCS related market Pekin opportunities: Specialty Campus: Building 2nd Carbon - Sustainable Alcohol a
Slide 9: Pursuing Carbon Capture & Storage (CCS)
Pursuing Carbon Capture & Storage (CCS) • Engaging in productive discussions with potential partners while aligning interests • Assessing Illinois SAFE CCS Act, which establishes stringent safety, financial and insurance requirements on carbon dioxide pipelines and a moratorium on pipeline construct
Slide 10: Sustainability Efforts
Sustainability Efforts Published Inaugural Sustainability Report in December 2023 Earned at Pekin campus • Safe Food/Safe Feed - a third-party product safety certification • 2 EcoVadis Bronze Medals, 35th percentile among peers Completed materiality survey and initial roadmap • Strengthened environm
Slide 11: Certifications Create Differentiation
Certifications Create Differentiation Deepen Relationships and Open Doors to New Customers Specialty Alcohols & Essential Ingredients: More challenging to produce Required audits, process verification and document retention Create significant product performance impact for a small percentage of thei
Slide 12: Expanding Customer Base
Expanding Customer Base Customers prioritize Alto’s certifications, reliability, service and quality Sample list follows: Health, Home Food & Industry & Essential Renewable & Beauty Beverage Agriculture Ingredients Fuels 12
Slide 13: Financial Highlights
Financial Highlights Improving Plant Performance Strong Liquidity • Pekin Campus contributed GP of $10.1M (including $5.4M in • $30M available under operating line of credit planned outage related expenses), up from $4.3M in Q1 2024 • $65M available under term loan, subject to certain conditions una
Slide 14: Expanding Higher-margin Production and Improving Profitability
Expanding Higher-margin Production and Improving Profitability Targeting higher-margin markets with premium products Pursuing carbon capture & storage Optimizing asset base & executing efficiency initiatives Advancing traceability & sustainability certifications & programs Broadening customer base 1
Slide 15: Appendix
Appendix 15
Slide 16: Experienced Leadership Team
Experienced Leadership Team Bryon McGregor Todd Benton Rob Olander, CPA Jim Sneed Auste Graham President & CEO Chief Operating Officer Chief Financial Officer Chief Commercial Officer General Counsel 16 years with Alto 25 years with Alto(1) 17 years with Alto 32 years with Alto(1) 2 years with Alto
Slide 17: Senior Management with Deep Bench Strength
Senior Management with Deep Bench Strength Ed Baker Dan Croghan Michael Kramer VP, Human Resources VP, Eagle General Manager VP, Treasurer 16 years with Alto 2 years with Alto 17 years with Alto Prior Experience Prior Experience Prior Experience (1) Patrick McKenzie John Shriver (1) Stacy Swanson VP
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net sales $ 236,468 $ 317,297 $ 477,097 $ 631,188 Cost of goods sold 228,915 300,116 471,944 617,171 Gross profit 7,553 17,181 5,153 14,017 Selling, general and administrative expenses 8,9
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 19
Slide 20: Use of Non-GAAP Measures
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 i
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended Six Months Ended June 30, June 30, (in thousands) (unaudited) 2024 2023 2024 2023 Net income (loss) $ (3,106) $ 7,595 $ (14,831) $ (5,571) Adjustments: Interest expense 1,669 1,734 3,303 3,299 Interest income (150) (190) (325) (411) Unrealized deriva
Slide 22: Segment Results
Segment Results Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net Sales Pekin Campus, recorded as gross: Alcohol sales $ 100,687 $ 127,694 $ 209,035 $ 260,075 Essential ingredient sales 39,371 53,954 86,080 117,585 Intersegment sales 286 444 606 757 Total Pekin Campus sal