Alto Ingredients, Inc. · NASDAQ:ALTO
Alto Ingredients — Q3 2024 Earnings Presentation
22 slides from Alto Ingredients's earnings presentation, Nov 6, 2024
Slide 1: Alto Ingredients, Inc. Q3 2024 Investor Presentation
Alto Ingredients, Inc. Q3 2024 Investor Presentation November 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 the highest-quality, sustainable ingredients
Transforming corn into the highest-quality, sustainable ingredients that make everyday products better 3
Slide 4: Producer and distributor of specialty alcohols, renewable fuels and essential ingredients
Producer and distributor of specialty alcohols, renewable fuels and essential ingredients 4
Slide 5: Key Initiatives
Key Initiatives Improving Profitability and Reducing Impact of Commodity Pricing Targeting premium markets with high-quality products Supporting the reduction in carbon emissions by pursuing CCS Optimizing asset base & executing efficiency initiatives Advancing traceability & sustainability certific
Slide 6: Targeting Premium Markets
Targeting Premium Markets ALTO Columbia, LLC ALTO Pekin, LLC Making everyday products better: Dry Mill Boardman, Oregon Headquarters Dry Mill Wet Mill & Distillery • Health, Home & Beauty Yeast Plant Pekin, Illinois • Food & Beverage • Industry & Agriculture • Essential Ingredients • Renewable Fuels
Slide 7: Making Everyday Products Better
Making Everyday Products Better Health, Home Food & Industry & Essential Renewable & Beauty Beverage Agriculture Ingredients Fuels Alto’s 100% bio-based renewable ingredients API Grade Ethyl Grain Neutral Spirits Industrial Grade Alto Yeast Transportation Fuel Alcohol Ethyl Alcohol • Ethanol Corn Ge
Slide 8: Pursuing Carbon Capture & Storage (CCS)
Pursuing Carbon Capture & Storage (CCS) • Entered CO2 Transportation and Sequestration Agreement (TSA) for Vault 44.01 to handle the transportation, injection and sequestration of CO2 from the Pekin campus into the Mt. Simon sandstone formation in Illinois. Next steps: • Submit to EPA submission and
Slide 9: Sustainability Efforts
Sustainability Efforts Published Second Sustainability Report in October 2024 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 environmenta
Slide 10: Certifications Create Differentiation
Certifications Create Differentiation Deepen Relationships and Open Doors to New Customers Specialty Alcohols & Essential Ingredients: More challenging to produce Required audits, equipment and testing validation, and other prerequisite programs Create significant product performance impact for a sm
Slide 11: 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 11
Slide 12: Financial Highlights
Financial Highlights Improving Plant Performance Strong Liquidity • Pekin Campus contributed GP of $6.2M in Q3 2024, • $27M available under operating line of credit up from $0.6M in Q3 2023 • $65M available under term loan, subject to certain conditions unaudited, $ in thousands Sept. 30, 2024 Dec.
Slide 13: Expanding Higher-Margin Production and Improving Profitability
Expanding Higher-Margin Production and Improving Profitability Targeting premium markets with high quality products Supporting the reduction in carbon emissions by pursuing CCS Optimizing asset base & executing efficiency initiatives Advancing traceability & sustainability certifications & programs
Slide 14: Appendix
Appendix 14
Slide 15: Building on a Rich Foundation
Building on a Rich Foundation 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 17 years with Alto 2 years with Alto 17 years with Alto Prior Experience Prior Experience Prior Experience Patrick McKenzie John Shriver Stacy Swanson VP, Busine
Slide 18: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Ended Nine Months Ended September 30, 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 e
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 Nine Months Ended September 30, 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) Unrealiz
Slide 22: Segment Results
Segment Results Three Months Ended Nine Months Ended September 30, 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 sales 41,217 51,634 127,297 169,220 Intersegment sales 321 363 927 1,120 Total Pe