- Delivered 2023 Gross Profit of
- Improved 2023 Net Loss by
- Signed Letter of Intent with Vault 44.01 for CO2 Storage -
“During 2023, our investments to diversify revenue, improve capacity utilization rates, reduce costs and expand operating margins contributed to our financial improvements and positioned Alto for stronger performance in 2024 and beyond,” said
Alto is implementing a carbon capture and storage (CCS) program. In a separate release issued today, Alto announced it signed a letter of intent with Vault 44.01 to partner for safe and permanent CO2 storage deep underground in a secure geologic reservoir located in close proximity to the company's
“Additionally, we have prioritized our CCS initiative and are encouraged by recent progress on many aspects, including overall system design, community outreach, financing, EPA application preparation, and vendor negotiations. Further, we are evaluating new options that would enable us to substantially reduce the capital required to pursue CCS, lower our carbon footprint, and reduce our long-term energy costs. Although markets are dynamic, we remain agile and financially prudent and seek to capitalize on the most promising and profitable opportunities. We are enthusiastic about our prospects and confident in our long-term growth strategy," concluded McGregor.
Financial Results for the Three Months Ended
- Net sales were
$273.6 million , compared to$328.4 million . - Cost of goods sold was
$276.2 million , compared to$349.8 million . - Gross loss was
$2.5 million , compared to a gross loss of$21.3 million . - Selling, general and administrative expenses were
$8.5 million , compared to$7.6 million . - An asset impairment charge of
$6.0 million resulted from an annual goodwill valuation related to Eagle Alcohol. - Operating loss was
$17.2 million , compared to an operating loss of$31.1 million . - Net loss available to common stockholders was
$19.3 million , or$0.26 per share, compared to$33.4 million , or$0.46 per share. - Adjusted EBITDA was positive
$3.5 million , compared to negative$15.5 million .
Cash and cash equivalents were
The company has engaged equipment manufacturers and independent third-party engineers in conjunction with its vendor, Harvesting Technology, to address issues with the
Financial Results for the Year Ended
- Net sales were
$1,222.9 million , compared to$1,335.6 million . - Cost of goods sold was
$1,207.3 million , compared to$1,363.2 million . - Gross profit was
$15.7 million , compared to a gross loss of$27.6 million . - Selling, general and administrative expenses were
$32.7 million , compared to$31.6 million . - Asset impairment charges of
$6.5 million consist of the aforementioned$6.0 million related to Eagle Alcohol goodwill and$0.5 million in right of use lease impairment. - Operating loss was
$23.8 million , compared to an operating loss of$61.4 million . - Net loss available to common stockholders was
$29.3 million , or$0.40 per share, compared to a loss of$42.9 million , or$0.60 per share. - Adjusted EBITDA was positive
$20.8 million , compared to negative Adjusted EBITDA of$5.7 million .
To increase transparency to operating physical margins, the company now excludes the impact of unrealized non-cash gains and losses on derivative instruments in calculating Adjusted EBITDA. Unrealized gains and losses on derivatives are commodity price driven, mark-to-market non-cash adjustments of derivative instruments for open positions related to future sales. Reconciliations of prior periods reflecting this change are available on the company’s website.
Fourth Quarter and Year-end 2023 Results Conference Call
Management will host a conference call at
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 twenty minutes prior to the scheduled call time, dial (833) 630-0017 domestically and (412) 317-1806 internationally. The webcast will be archived for replay on the
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, loss on extinguishment of debt, unrealized derivative gains (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
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, future performance, margin improvements and crush spreads; Alto Ingredients’ plant improvement and other capital projects, including CCS and its financing, costs, timing and effects; the timing and effects of Alto Ingredients’ efforts to correct production rate, quality and consistency challenges of its corn oil and high-protein system at its
Company IR and Media Contact:
IR Agency Contact:
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net sales | $ | 273,625 | $ | 328,437 | $ | 1,222,940 | $ | 1,335,621 | ||||||||
Cost of goods sold | 276,150 | 349,765 | 1,207,287 | 1,363,171 | ||||||||||||
Gross profit (loss) | (2,525 | ) | (21,328 | ) | 15,653 | (27,550 | ) | |||||||||
Selling, general and administrative expenses | (8,523 | ) | (7,551 | ) | (32,664 | ) | (31,579 | ) | ||||||||
Loss on disposal of assets | (153 | ) | (2,230 | ) | (293 | ) | (2,230 | ) | ||||||||
Asset impairments | (5,970 | ) | — | (6,544 | ) | — | ||||||||||
Loss from operations | (17,171 | ) | (31,109 | ) | (23,848 | ) | (61,359 | ) | ||||||||
Income from cash grant | — | — | 2,812 | 22,652 | ||||||||||||
Interest expense, net | (2,126 | ) | (968 | ) | (7,425 | ) | (1,827 | ) | ||||||||
Other income, net | 449 | 930 | 553 | 862 | ||||||||||||
Loss before provision for income taxes | (18,848 | ) | (31,147 | ) | (27,908 | ) | (39,672 | ) | ||||||||
Provision for income taxes | 97 | 1,925 | 97 | 1,925 | ||||||||||||
Consolidated net loss | $ | (18,945 | ) | $ | (33,072 | ) | $ | (28,005 | ) | $ | (41,597 | ) | ||||
Preferred stock dividends | $ | (319 | ) | $ | (319 | ) | $ | (1,265 | ) | $ | (1,265 | ) | ||||
Net loss available to common stockholders | $ | (19,264 | ) | $ | (33,391 | ) | $ | (29,270 | ) | $ | (42,862 | ) | ||||
Net loss per share, basic and diluted | $ | (0.26 | ) | $ | (0.46 | ) | $ | (0.40 | ) | $ | (0.60 | ) | ||||
Weighted-average shares outstanding, basic and diluted | 72,969 | 73,276 | 73,339 | 71,944 |
CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value) | ||||
ASSETS | 2023 | 2022 | ||
Current Assets: | ||||
Cash and cash equivalents | $ | 30,014 | $ | 36,456 |
Restricted cash | 15,466 | 13,069 | ||
Accounts receivable, net | 58,729 | 68,655 | ||
Inventories | 52,611 | 66,628 | ||
Derivative instruments | 2,412 | 4,973 | ||
Other current assets | 9,538 | 9,340 | ||
Total current assets | 168,770 | 199,121 | ||
Property and equipment, net | 248,748 | 239,069 | ||
Other Assets: | ||||
Right of use operating lease assets, net | 22,597 | 18,937 | ||
Intangible assets, net | 8,498 | 9,087 | ||
— | 5,970 | |||
Other assets | 5,628 | 6,137 | ||
Total other assets | 36,723 | 40,131 | ||
Total Assets | $ | 454,241 | $ | 478,321 |
CONSOLIDATED BALANCE SHEETS (CONTINUED) (unaudited, in thousands, except par value) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | 2023 | 2022 | ||||
Current Liabilities: | ||||||
Accounts payable | $ | 20,752 | $ | 28,115 | ||
Accrued liabilities | 20,205 | 26,556 | ||||
Current portion – operating leases | 4,333 | 3,849 | ||||
Derivative instruments | 13,849 | 6,732 | ||||
Other current liabilities | 6,149 | 12,765 | ||||
Total current liabilities | 65,288 | 78,017 | ||||
Long-term debt, net | 82,097 | 68,356 | ||||
Operating leases, net of current portion | 19,029 | 15,062 | ||||
Other liabilities | 8,270 | 8,797 | ||||
Total Liabilities | 174,684 | 170,232 | ||||
Stockholders’ Equity: | ||||||
Preferred stock, | 1 | 1 | ||||
Common stock, | 76 | 75 | ||||
Non-voting common stock, | — | — | ||||
Additional paid-in capital | 1,040,912 | 1,040,834 | ||||
Accumulated other comprehensive income | 2,481 | 1,822 | ||||
Accumulated deficit | (763,913 | ) | (734,643 | ) | ||
Total Stockholders’ Equity | 279,557 | 308,089 | ||||
Total Liabilities and Stockholders’ Equity | $ | 454,241 | $ | 478,321 |
Reconciliation of Adjusted EBITDA to Net Loss
Three Months Ended | Years Ended | ||||||||||||||||
(unaudited) | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Consolidated net loss | $ | (18,945 | ) | $ | (33,072 | ) | $ | (28,005 | ) | $ | (41,597 | ) | |||||
Adjustments: | |||||||||||||||||
Interest expense, net | 2,126 | 968 | 7,425 | 1,827 | |||||||||||||
Interest income | (265 | ) | (169 | ) | (854 | ) | (510 | ) | |||||||||
Unrealized derivative losses | 8,162 | 8,037 | 9,679 | 4,017 | |||||||||||||
Acquisition-related expense | 700 | 875 | 2,800 | 3,500 | |||||||||||||
Asset impairments | 5,970 | — | 6,544 | — | |||||||||||||
Provision for income taxes | 97 | 1,925 | 97 | 1,925 | |||||||||||||
Depreciation and amortization expense | 5,698 | 5,973 | 23,080 | 25,095 | |||||||||||||
Total adjustments | 22,488 | 17,609 | 48,771 | 35,854 | |||||||||||||
Adjusted EBITDA | $ | 3,543 | $ | (15,463 | ) | $ | 20,766 | $ | (5,743 | ) |
Segment Financials
(unaudited) | Three Months Ended | Years Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Net sales | ||||||||||||
Pekin Campus production, recorded as gross: | ||||||||||||
Alcohol sales | $ | 113,588 | $ | 127,775 | $ | 502,217 | $ | 521,273 | ||||
Essential ingredient sales | 48,483 | 56,201 | 217,702 | 225,871 | ||||||||
Intersegment sales | 307 | 353 | 1,427 | 1,212 | ||||||||
Total Pekin Campus sales | 162,378 | 184,329 | 721,346 | 748,356 | ||||||||
Marketing and distribution: | ||||||||||||
Alcohol sales, gross | $ | 46,844 | $ | 54,879 | $ | 262,587 | $ | 227,626 | ||||
Alcohol sales, net | 73 | 250 | 365 | 1,225 | ||||||||
Intersegment sales | 2,920 | 3,099 | 11,654 | 12,459 | ||||||||
Total marketing and distribution sales | 49,837 | 58,228 | 274,606 | 241,310 | ||||||||
Western production, recorded as gross: | ||||||||||||
Alcohol sales | $ | 44,496 | $ | 62,124 | $ | 166,971 | $ | 253,605 | ||||
Essential ingredient sales | 16,650 | 23,461 | 57,264 | 90,209 | ||||||||
Intersegment sales | 35 | 7 | 134 | 22 | ||||||||
Total Western production sales | 61,181 | 85,592 | 224,369 | 343,836 | ||||||||
Corporate and other | 3,491 | 3,747 | 15,834 | 15,812 | ||||||||
Intersegment eliminations | (3,262 | ) | (3,459 | ) | (13,215 | ) | (13,693 | ) | ||||
Net sales as reported | $ | 273,625 | $ | 328,437 | $ | 1,222,940 | $ | 1,335,621 | ||||
Cost of goods sold: | ||||||||||||
Pekin Campus production | $ | 163,497 | $ | 200,240 | $ | 710,088 | $ | 772,755 | ||||
Marketing and distribution | 46,311 | 55,620 | 259,234 | 229,288 | ||||||||
Western production | 65,042 | 92,260 | 230,445 | 353,775 | ||||||||
Corporate and other | 2,802 | 3,173 | 12,122 | 12,167 | ||||||||
Intersegment eliminations | (1,502 | ) | (1,528 | ) | (4,602 | ) | (4,814 | ) | ||||
Cost of goods sold as reported | $ | 276,150 | $ | 349,765 | $ | 1,207,287 | $ | 1,363,171 | ||||
Gross profit (loss): | ||||||||||||
Pekin Campus production | $ | (1,119 | ) | $ | (15,911 | ) | $ | 11,258 | $ | (24,399 | ) | |
Marketing and distribution | 3,526 | 2,608 | 15,372 | 12,022 | ||||||||
Western production | (3,861 | ) | (6,668 | ) | (6,076 | ) | (9,939 | ) | ||||
Corporate and other | 689 | 574 | 3,712 | 3,645 | ||||||||
Intersegment eliminations | (1,760 | ) | (1,931 | ) | (8,613 | ) | (8,879 | ) | ||||
Gross profit (loss) as reported | $ | (2,525 | ) | $ | (21,328 | ) | $ | 15,653 | $ | (27,550 | ) |
Sales and Operating Metrics (unaudited) | |||||||||||
Three Months Ended | Years Ended | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Alcohol Sales (gallons in millions) | |||||||||||
Pekin Campus renewable fuel gallons sold | 31.8 | 31.9 | 136.2 | 116.1 | |||||||
Western production renewable fuel gallons sold | 20.4 | 23.4 | 67.0 | 92.4 | |||||||
Third party renewable fuel gallons sold | 20.2 | 29.5 | 102.6 | 117.9 | |||||||
Total renewable fuel gallons sold | 72.4 | 84.8 | 305.8 | 326.4 | |||||||
Speciality alcohol gallons sold | 20.1 | 20.2 | 76.7 | 92.5 | |||||||
Total gallons sold | 92.5 | 105.0 | 382.5 | 418.9 | |||||||
Pekin Campus sales price per gallon | $ | 2.23 | $ | 2.50 | $ | 2.40 | $ | 2.55 | |||
Western production sales price per gallon | $ | 2.18 | $ | 2.66 | $ | 2.49 | $ | 2.75 | |||
Marketing and distribution sales price per gallon | $ | 2.32 | $ | 2.64 | $ | 2.56 | $ | 2.83 | |||
Consolidated total sales price per gallon | $ | 2.24 | $ | 2.56 | $ | 2.47 | $ | 2.64 | |||
Alcohol Production (gallons in millions) | |||||||||||
Pekin Campus gallons produced | 51.6 | 51.1 | 209.7 | 208.8 | |||||||
Western production gallons produced | 20.8 | 22.9 | 68.1 | 91.2 | |||||||
Total gallons produced | 72.4 | 74.0 | 277.8 | 300 | |||||||
Corn Cost per Bushel | |||||||||||
Pekin Campus corn cost per bushel | $ | 5.10 | $ | 7.09 | $ | 6.32 | $ | 7.32 | |||
Western production corn cost per bushel | $ | 6.44 | $ | 9.20 | $ | 7.45 | $ | 8.97 | |||
Consolidated total corn cost per bushel | $ | 5.46 | $ | 7.73 | $ | 6.58 | $ | 7.77 | |||
Average Market Metrics | |||||||||||
PLATTS Ethanol price per gallon | $ | 1.96 | $ | 2.42 | $ | 2.22 | $ | 2.47 | |||
CME Corn cost per bushel | $ | 4.76 | $ | 6.68 | $ | 5.64 | $ | 6.94 | |||
Board crush per gallon(1) | $ | 0.26 | $ | 0.03 | $ | 0.21 | $ | - | |||
(1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn | |||||||||||
Sales and Operating Metrics (unaudited) - Continued | ||||||||||
Three Months Ended | Years Ended | |||||||||
2023 | 2022 | 2023 | 2022 | |||||||
Essential Ingredients Sold (thousand tons) | ||||||||||
Pekin Campus: | ||||||||||
Distillers grains | 80.2 | 79.8 | 332.7 | 334.4 | ||||||
CO2 | 43.4 | 43.5 | 182.4 | 164.8 | ||||||
Corn wet feed | 25.0 | 20.9 | 95.0 | 89.9 | ||||||
Corn dry feed | 23.3 | 18.0 | 90.6 | 81.6 | ||||||
Corn oil and germ | 18.2 | 16.8 | 73.8 | 66.7 | ||||||
Syrup and other | 12.7 | 13.0 | 41.2 | 56.9 | ||||||
Corn meal | 9.0 | 8.0 | 36.8 | 32.1 | ||||||
Yeast | 6.2 | 5.4 | 25.9 | 23.9 | ||||||
Total Pekin Campus essential ingredients sold | 218.0 | 205.4 | 878.4 | 850.3 | ||||||
Western Production: | ||||||||||
Distillers grains | 152.0 | 160.9 | 459.7 | 643.7 | ||||||
Syrup and other | 47.5 | 19.5 | 119.1 | 77.4 | ||||||
CO2 | 13.8 | 14.1 | 55.5 | 55.8 | ||||||
Corn oil | 2.8 | 2.6 | 8.0 | 10.2 | ||||||
Total Western production essential ingredients sold | 216.1 | 197.1 | 642.3 | 787.1 | ||||||
Total Essential Ingredients Sold | 434.1 | 402.5 | 1,520.7 | 1,637.4 | ||||||
Essential Ingredients Return % (2) | ||||||||||
Pekin Campus return | 51.9 | % | 42.6 | % | 45.7 | % | 41.3 | % | ||
Western production return | 36.3 | % | 32.7 | % | 33.4 | % | 31.6 | % | ||
Consolidated total return | 46.8 | % | 39.1 | % | 42.4 | % | 37.9 | % | ||
(2) Essential ingredient revenues as a percentage of total corn costs consumed | ||||||||||
Source:
2024 GlobeNewswire, Inc., source