Alto Ingredients, Inc. Reports First Quarter 2024 Results

– Improved Q1 2024 Gross Profit by $0.8 Million, Net Loss by $1.4 Million and Adjusted EBITDA by $3.4 Million over Q1 2023 –

PEKIN, Ill., May 06, 2024 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a producer and distributor of renewable fuel and essential ingredients and the largest producer of specialty alcohols in the U.S., reported its financial results for the quarter ended March 31, 2024. For the first quarter of 2024, gross loss improved by $0.8 million, net loss improved by $1.4 million and Adjusted EBITDA improved by $3.4 million over the first quarter of 2023.

Bryon McGregor, President and CEO of Alto Ingredients, said, “Our strategies to diversify revenue, improve capacity utilization rates, reduce costs and expand operating margins are coming to fruition. Our first quarter 2024 financial results benefited from improved crush margins and our efforts to increase essential ingredient returns and operating efficiencies. However, various weather factors materially impacted our first quarter’s performance. In January, a cold spike at our Pekin campus increased transportation related expenses, reduced production rates and caused a shift to lower margin feed products. For the remainder of the quarter, unseasonably moderate weather conditions and ensuing low natural gas prices resulted in an incremental loss of $4.9 million from our energy hedging activities.

“Our scheduled biennial outage at our Pekin wet mill was completed in April 2024 and will result in more consistent and higher production rates, improving reliability as we approach the summer driving season. The market outlook for the rest of 2024 remains favorable, supported by solid corn inventories, improved export demand for ethanol and the EPA’s summer waiver for 15% blends.

“We continue to progress our strategic carbon capture and storage (CCS) initiative that will substantially reduce our carbon footprint. CCS stands to create value for the communities surrounding the Pekin campus, our customers and Alto,” concluded McGregor.

In March, Alto announced that it had signed a letter of intent with Vault 44.01, a leading CCS developer focused on the development, capitalization and operation of carbon storage assets. The company continues to negotiate the terms of its proposed agreements with potential financial partners and with Vault. The plan is to partner for safe and permanent CO2 storage deep underground in a secure geological reservoir close to the Pekin campus. Vault completed the 2D seismic geological survey and has begun data analysis. They have advanced the work required to submit the EPA Class VI permit application.

Financial Results for the Three Months Ended March 31, 2024 Compared to 2023

  • Net sales were $240.6 million, compared to $313.9 million.
  • Cost of goods sold was $243.0 million, compared to $317.1 million.
  • Gross loss, including a $4.9 million incremental loss related to natural gas hedging activities, was $2.4 million, compared to a gross loss of $3.2 million.
  • Selling, general and administrative expenses were $7.9 million for both periods.
  • Operating loss was $10.3 million, compared to an operating loss of $11.6 million, which included an asset impairment charge of $0.6 million.
  • Net loss available to common stockholders was $12.0 million, or $0.17 per share, compared to $13.5 million, or $0.18 per share.
  • Adjusted EBITDA was negative $7.1 million, compared to negative $10.4 million.

Cash and cash equivalents were $29.3 million at March 31, 2024, compared to $30.0 million at December 31, 2023. At March 31, 2024, the company’s borrowing availability was $90.9 million including $25.9 million under the company’s operating line of credit and $65.0 million under its term loan facility, subject to certain conditions.

First 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 Monday, May 6, 2024, 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 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 Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Monday, May 6, 2024 through 8:00 p.m. Eastern Time on Monday, May 13, 2024. To access the replay, please dial 877-344-7529. International callers should dial 00-1 412-317-0088. The pass code will be 8726641.

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 Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) produces and distributes renewable fuel and essential ingredients and is the largest producer of specialty alcohols in the United States. 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

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, as well as repair and maintenance projects, and their financing, costs, timing and effects; 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, Alto Ingredients’ ability to finalize definitive documentation with Vault on acceptable terms and to fund and execute the CCS project as intended; 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’ plant improvement 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; 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’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2024.

Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755,

IR Agency Contact:
Kirsten Chapman, LHA Investor Relations, 415-433-3777,


(unaudited, in thousands, except per share data)
  Three Months Ended
March 31,
    2024       2023  
Net sales $ 240,629     $ 313,891  
Cost of goods sold   243,029       317,055  
Gross loss   (2,400 )     (3,164 )
Selling, general and administrative expenses   (7,932 )     (7,882 )
Asset impairments         (574 )
Loss from operations   (10,332 )     (11,620 )
Interest expense, net   (1,634 )     (1,565 )
Other income, net   241       19  
Loss before provision for income taxes   (11,725 )     (13,166 )
Provision for income taxes          
Net loss $ (11,725 )   $ (13,166 )
Preferred stock dividends $ (315 )   $ (312 )
Net loss available to common stockholders $ (12,040 )   $ (13,478 )
Net loss per share, basic and diluted $ (0.17 )   $ (0.18 )
Weighted-average shares outstanding, basic and diluted   72,766       73,815  

(unaudited, in thousands, except par value)
ASSETS March 31,
December 31,
Current Assets:
Cash and cash equivalents $ 29,310     $ 30,014  
Restricted cash   12,762       15,466  
Accounts receivable, net   58,081       58,729  
Inventories   42,610       52,611  
Derivative instruments   52       2,412  
Other current assets   8,028       9,538  
Total current assets   150,843       168,770  
Property and equipment, net   248,901       248,748  
Other Assets:              
Right of use operating lease assets, net   21,506       22,597  
Intangible assets, net   8,351       8,498  
Other assets   5,034       5,628  
Total other assets   34,891       36,723  
Total Assets $ 434,635     $ 454,241  

(unaudited, in thousands, except par value)
  December 31,
Current Liabilities:              
Accounts payable $ 18,508     $ 20,752  
Accrued liabilities   18,166       20,205  
Current portion – operating leases   4,486       4,333  
Derivative instruments   8,299       13,849  
Other current liabilities   5,595       6,149  
Total current liabilities   55,054       65,288  
Long-term debt   84,069       82,097  
Operating leases, net of current portion   17,895       19,029  
Other liabilities   8,958       8,270  
Total Liabilities   165,976       174,684  
Stockholders’ Equity:              
Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of March 31, 2024 and December 31, 2023
Series B: 927 shares issued and outstanding as of March 31, 2024 and December 31, 2023
  1       1  
Common stock, $0.001 par value; 300,000 shares authorized; 77,018 and 75,703 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively   77       76  
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2024 and December 31, 2023          
Additional paid-in capital   1,042,053       1,040,912  
Accumulated other comprehensive income   2,481       2,481  
Accumulated deficit   (775,953 )     (763,913 )
Total Stockholders’ Equity   268,659       279,557  
Total Liabilities and Stockholders’ Equity $ 434,635     $ 454,241  

Reconciliation of Adjusted EBITDA to Net Loss

  Three Months Ended
March 31,
(in thousands) (unaudited)             2024       2023  
Net loss $ (11,725 )   $ (13,166 )
Interest expense   1,634       1,565  
Interest income   (175 )     (221 )
Unrealized derivatives gains   (3,190 )     (5,926 )
Acquisition-related expense   675       700  
Asset impairments         574  
Depreciation and amortization expense   5,728       6,055  
Total adjustments   4,672       2,747  
Adjusted EBITDA $ (7,053 )   $ (10,419 )

Segment Financials

(in thousands) (unaudited)   Three Months Ended
March 31,
    2024       2023  
Net sales              
Pekin Campus production, recorded as gross:              
Alcohol sales $ 108,350     $ 132,381  
Essential ingredient sales   46,709       63,631  
Intersegment sales   321       313  
Total Pekin Campus sales   155,380       196,325  
Marketing and distribution:    
Alcohol sales, gross $ 54,431     $ 84,381  
Alcohol sales, net   34       114  
Intersegment sales   2,752       2,843  
Total marketing and distribution sales   57,217       87,338  
Western production, recorded as gross:    
Alcohol sales $ 20,231     $ 20,932  
Essential ingredient sales   7,826       8,353  
Intersegment sales         1  
Total Western production sales   28,057       29,286  
Corporate and other   3,048       4,099  
Intersegment eliminations   (3,073 )     (3,157 )
Net sales as reported $ 240,629     $ 313,891  
Cost of goods sold:              
Pekin Campus production $ 151,112     $ 198,178  
Marketing and distribution   53,685       83,126  
Western production   36,517       33,982  
Corporate and other   2,794       2,369  
Intersegment eliminations   (1,079 )     (600 )
Cost of goods sold as reported $ 243,029     $ 317,055  
Gross profit (loss):              
Pekin Campus production $ 4,268       (1,853 )
Marketing and distribution   3,532       4,212  
Western production   (8,460 )     (4,696
Corporate and other   254       1,730  
Intersegment eliminations   (1,994 )     (2,557 )
Gross loss as reported $ (2,400     $ (3,164 )

Sales and Operating Metrics (unaudited)      
    Three Months Ended
March 31,
        2024       2023  
Alcohol Sales (gallons in millions)      
Pekin Campus renewable fuel gallons sold     31.8       35.3  
Western production renewable fuel gallons sold     11.2       7.9  
Third party renewable fuel gallons sold     29.7       33.9  
Total renewable fuel gallons sold     72.7       77.1  
Specialty alcohol gallons sold     26.3       21.4  
Total gallons sold     99.0       98.5  
Sales Price per Gallon      
Pekin Campus   $ 1.90     $ 2.38  
Western production   $ 1.80     $ 2.64  
Marketing and distribution   $ 1.83     $ 2.49  
Total   $ 1.86     $ 2.43  
Alcohol Production (gallons in millions)      
Pekin Campus     53.6       53.3  
Western production     9.7       7.3  
Total     63.3       60.6  
Corn Cost per Bushel      
Pekin Campus   $ 4.73     $ 6.83  
Western production   $ 5.89     $ 9.34  
Total   $ 4.92     $ 7.07  
Average Market Metrics      
PLATTS Ethanol price per gallon   $ 1.56     $ 2.19  
CME Corn cost per bushel   $ 4.35     $ 6.58  
Board corn crush per gallon (1)   $ 0.01     $ (0.16 )
Essential Ingredients Sold (thousand tons)      
Pekin Campus:      
  Distillers grains     87.7       90.8  
  CO2     39.1       42.3  
  Corn wet feed     25.6       26.7  
  Corn dry feed     18.9       21.5  
  Corn oil and germ     17.8       19.3  
  Syrup and other     9.5       10.5  
  Corn meal     8.3       9.4  
  Yeast     5.7       6.4  
  Total Pekin Campus essential ingredients sold   212.6       226.9  
Western production:      
  Distillers grains     71.8       54.0  
  Syrup and other     14.2       3.5  
  CO2     13.3       13.6  
  Corn oil     1.5       1.3  
  Total Western production essential ingredients sold   100.8       72.4  
Total Essential Ingredients Sold     313.4       299.3  
Essential Ingredients Return % (2)      
Pekin Campus return     52.1 %     46.2 %
Western production return     39.3 %     40.0 %
Consolidated total return     49.8 %     45.4 %
(1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
(2) Essential ingredient revenues as a percentage of total corn costs consumed.

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Source: Alto Ingredients, Inc.