Alto Ingredients, Inc.NASDAQ: ALTO

Alto Ingredients, Inc. Reports Fourth Quarter and Year-end 2024 Results

· Issued by Alto Ingredients, Inc. via GlobeNewswire

Key figures

  • Net sales were $236.3 million, compared to $273.6 million.
  • Cost of goods sold was $237.7 million, compared to $276.2 million.
  • 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.
  • 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.

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- 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 (877) 344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 5306551.

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
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
December 31,

Years Ended
December 31,

2024

2023

2024

2023

Net sales

$

236,347

$

273,625

$

965,258

$

1,222,940

Cost of goods sold

237,738

276,150

955,536

1,207,287

Gross profit (loss)

(1,391

)

(2,525

)

9,722

15,653

Selling, general and administrative expenses

(7,358

)

(7,823

)

(29,736

)

(29,864

)

Acquisition-related expenses

(5,676

)

(700

)

(7,701

)

(2,800

)

Gain (loss) on sale of assets

—

(153

)

830

(293

)

Asset impairments

(24,790

)

(5,970

)

(24,790

)

(6,544

)

Loss from operations

(39,215

)

(17,171

)

(51,675

)

(23,848

)

Interest expense, net

(2,474

)

(2,126

)

(7,644

)

(7,425

)

Income from cash grant

—

—

—

2,812

Other income, net

150

449

508

553

Loss before provision for income taxes

(41,539

)

(18,848

)

(58,811

)

(27,908

)

Provision for income taxes

173

97

173

97

Net loss

$

(41,712

)

$

(18,945

)

$

(58,984

)

$

(28,005

)

Preferred stock dividends

$

(319

)

$

(319

)

$

(1,269

)

$

(1,265

)

Net loss attributable to common stockholders

$

(42,031

)

$

(19,264

)

$

(60,253

)

$

(29,270

)

Net loss per share, basic and diluted

$

(0.57

)

$

(0.26

)

$

(0.82

)

$

(0.40

)

Weighted-average shares outstanding, basic and diluted

73,835

72,969

73,482

73,339

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


ASSETS

December 31,
2024

December 31,
2023

Current Assets:

Cash and cash equivalents

$

35,469

$

30,014

Restricted cash

742

15,466

Accounts receivable, net

58,217

58,729

Inventories

49,914

52,611

Derivative instruments

3,313

2,412

Other current assets

5,463

9,538

Total current assets

153,118

168,770

Property and equipment, net

214,742

248,748

Other Assets:

Right of use operating lease assets, net

20,553

22,597

Intangible assets, net

4,509

8,498

Other assets

8,516

5,628

Total other assets

33,578

36,723

Total Assets

$

401,438

$

454,241

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


LIABILITIES AND STOCKHOLDERS’ EQUITY

December 31,
2024

December 31,
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
December 31,

Years Ended
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
December 31,

Years Ended
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

(1) – includes depreciation and amortization expense
(2) - includes unrealized gain (loss) on derivatives

Sales and Operating Metrics (unaudited)

Three Months Ended
December 31,

Years Ended
December 31,

2024

2023

2024

2023

Alcohol Sales (gallons in millions)

Pekin Campus renewable fuel gallons sold

32.1

31.8

125.7

136.2

Western production renewable fuel gallons sold

22.3

20.4

60.5

67.0

Third party renewable fuel gallons sold

19.0

20.2

108.3

102.6

Total renewable fuel gallons sold

73.4

72.4

294.5

305.8

Specialty alcohol gallons sold

21.7

20.1

91.5

76.7

Total gallons sold

95.1

92.5

386.0

382.5

Sales Price per Gallon

Pekin Campus

$

1.89

$

2.23

$

1.95

$

2.40

Western production

$

1.86

$

2.18

$

1.91

$

2.49

Marketing and distribution

$

1.96

$

2.32

$

2.00

$

2.56

Total

$

1.88

$

2.24

$

1.95

$

2.47

Alcohol Production (gallons in millions)

Pekin Campus

55.4

51.6

212.4

209.7

Western production

21.2

20.8

58.7

68.1

Total

76.6

72.4

271.1

277.8

Corn Cost per Bushel

Pekin Campus

$

4.17

$

5.10

$

4.45

$

6.32

Western production

$

5.79

$

6.44

$

5.73

$

7.45

Total

$

4.63

$

5.46

$

4.72

$

6.58

Average Market Metrics

PLATTS Ethanol price per gallon

$

1.60

$

1.96

$

1.69

$

2.22

CME Corn cost per bushel

$

4.26

$

4.76

$

4.24

$

5.64

Board corn crush per gallons (1)

$

0.08

$

0.26

$

0.18

$

0.21

Essential Ingredients Sold (thousand tons)

Pekin Campus:

Distillers grains

85.3

80.2

336.4

332.7

CO2

52.7

43.4

188.6

182.4

Corn wet feed

41.4

25.0

121.8

95.0

Corn dry feed

22.0

23.3

87.2

90.6

Corn oil and germ

21.0

18.2

75.1

73.8

Syrup and other

10.0

12.7

38.6

41.2

Corn meal

9.3

9.0

35.4

36.8

Yeast

5.4

6.2

23.2

25.9

Total Pekin Campus essential ingredients sold

247.1

218.0

906.3

878.4

Western production:

Distillers grains

144.3

152.0

394.5

459.7

CO2

14.6

13.8

57.7

55.5

Syrup and other

17.2

47.5

54.8

119.1

Corn oil

3.1

2.8

7.6

8.0

Total Western production essential ingredients sold

179.2

216.1

514.6

642.3

Total Essential Ingredients Sold

426.3

434.1

1,420.9

1,520.7

Essential ingredients return % (2)

Pekin Campus return

49.5%

51.9%

49.7%

45.7%

Western production return

30.3%

36.3%

32.0%

33.4%

Consolidated total return

43.1%

46.8%

45.2%

42.4%

________________
(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.

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