| PARENT COMPANY FINANCIALS. |
|
11. |
PARENT
COMPANY FINANCIALS. |
Restricted
Net Assets – At June 30, 2021, the Company had approximately $245.7 million of net
assets at its subsidiaries that were not available for transfer to Alto Ingredients in the form of dividends, distributions, loans or
advances due to restrictions contained in the credit facilities of these subsidiaries.
Parent
company financial statements for the periods covered in this report are set forth below (in thousands):
| |
|
June
30,
2021 |
|
|
December 31,
2020 |
|
| ASSETS |
|
|
|
|
|
|
| Current Assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
15,128 |
|
|
$ |
25,632 |
|
| Receivables from subsidiaries |
|
|
13,460 |
|
|
|
15,548 |
|
| Other current assets |
|
|
2,588 |
|
|
|
1,836 |
|
| Total current assets |
|
|
31,176 |
|
|
|
43,016 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
108 |
|
|
|
142 |
|
| Other Assets: |
|
|
|
|
|
|
|
|
| Investments in subsidiaries |
|
|
264,645 |
|
|
|
246,518 |
|
| Alto West, LLC receivable |
|
|
27,592 |
|
|
|
42,649 |
|
| Right of use operating lease assets, net |
|
|
2,844 |
|
|
|
2,985 |
|
| Other assets |
|
|
796 |
|
|
|
1,088 |
|
| Total other assets |
|
|
295,877 |
|
|
|
293,240 |
|
| Total Assets |
|
$ |
327,161 |
|
|
$ |
336,398 |
|
| Current Liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
5,439 |
|
|
$ |
2,001 |
|
| Accrued Alto Op Co. purchase |
|
|
3,829 |
|
|
|
3,829 |
|
| Current portion of long-term debt |
|
|
6,696 |
|
|
|
25,533 |
|
| Other current liabilities |
|
|
329 |
|
|
|
473 |
|
| Total current liabilities |
|
|
16,293 |
|
|
|
31,836 |
|
| |
|
|
|
|
|
|
|
|
| Long-term debt, net of current portion |
|
|
— |
|
|
|
5,564 |
|
| Other liabilities |
|
|
2,849 |
|
|
|
2,763 |
|
| Total Liabilities |
|
|
19,142 |
|
|
|
40,163 |
|
| Stockholders’ Equity: |
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
1 |
|
|
|
1 |
|
| Common and non-voting common stock |
|
|
73 |
|
|
|
72 |
|
| Additional paid-in capital |
|
|
1,035,980 |
|
|
|
1,036,638 |
|
| Accumulated other comprehensive loss |
|
|
(3,878 |
) |
|
|
(3,878 |
) |
| Accumulated deficit |
|
|
(724,157 |
) |
|
|
(736,598 |
) |
| Total Alto Ingredients, Inc. stockholders’ equity |
|
|
308,019 |
|
|
|
296,235 |
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
327,161 |
|
|
$ |
336,398 |
|
| |
|
Three
Months Ended
June 30, |
|
|
Six
Months Ended
June 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Management fees from subsidiaries |
|
$ |
2,486 |
|
|
$ |
2,873 |
|
|
$ |
5,012 |
|
|
$ |
6,126 |
|
| Selling, general and administrative expenses |
|
|
4,393 |
|
|
|
4,308 |
|
|
|
9,044 |
|
|
|
9,685 |
|
| Income (loss) from operations |
|
|
(1,907 |
) |
|
|
(1,435 |
) |
|
|
(4,032 |
) |
|
|
(3,559 |
) |
| Fair value adjustments |
|
|
— |
|
|
|
(1,314 |
) |
|
|
— |
|
|
|
(641 |
) |
| Interest expense, net |
|
|
(704 |
) |
|
|
(1,721 |
) |
|
|
(1,731 |
) |
|
|
(3,297 |
) |
| Other income (expense) |
|
|
410 |
|
|
|
(140 |
) |
|
|
1,218 |
|
|
|
(162 |
) |
| Loss before benefit for income taxes |
|
|
(2,201 |
) |
|
|
(4,610 |
) |
|
|
(4,545 |
) |
|
|
(7,659 |
) |
| Benefit for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net loss |
|
|
(2,201 |
) |
|
|
(4,610 |
) |
|
|
(4,545 |
) |
|
|
(7,659 |
) |
| Equity in income (losses) of subsidiaries |
|
|
10,591 |
|
|
|
19,574 |
|
|
|
17,613 |
|
|
|
(2,477 |
) |
| Net income (loss) attributed to Alto Ingredients, Inc. |
|
$ |
8,390 |
|
|
$ |
14,964 |
|
|
$ |
13,068 |
|
|
$ |
(10,136 |
) |
| |
|
For
the Six Months Ended
June 30, |
|
| |
|
2021 |
|
|
2020 |
|
| Operating Activities: |
|
|
|
|
|
|
| Net income (loss) |
|
$ |
13,068 |
|
|
$ |
(10,136 |
) |
| Adjustments to reconcile net income (loss) to cash used in operating activities: |
|
|
|
|
|
|
|
|
| Equity in (income) losses of subsidiaries |
|
|
(17,613 |
) |
|
|
2,477 |
|
| Fair value adjustments |
|
|
— |
|
|
|
(641 |
) |
| Depreciation |
|
|
33 |
|
|
|
67 |
|
| Amortization of debt (premiums) discounts |
|
|
409 |
|
|
|
(115 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
2,088 |
|
|
|
(1,207 |
) |
| Other assets |
|
|
(319 |
) |
|
|
714 |
|
| Accounts payable and accrued expenses |
|
|
(2,416 |
) |
|
|
— |
|
| Accounts payable with subsidiaries |
|
|
37 |
|
|
|
475 |
|
| Net cash used in operating activities |
|
|
(4,713 |
) |
|
|
(8,366 |
) |
| Investing Activities: |
|
|
|
|
|
|
|
|
| Additions to property and equipment |
|
|
— |
|
|
|
— |
|
| Net cash used in investing activities |
|
|
— |
|
|
|
— |
|
| Financing Activities: |
|
|
|
|
|
|
|
|
| Proceeds from issuances of common stock |
|
|
462 |
|
|
|
282 |
|
| Proceeds from plant receivables |
|
|
15,057 |
|
|
|
5,813 |
|
| Proceeds from long-term debt |
|
|
— |
|
|
|
5,973 |
|
| Payments on senior notes |
|
|
(24,810 |
) |
|
|
— |
|
| Dividend from subsidiary |
|
|
3,500 |
|
|
|
— |
|
| Net cash provided by (used in) financing activities |
|
|
(5,791 |
) |
|
|
12,068 |
|
| Net change in cash and cash equivalents |
|
|
(10,504 |
) |
|
|
3,702 |
|
| Cash and cash equivalents at beginning of period |
|
|
25,632 |
|
|
|
4,985 |
|
| Cash and cash equivalents at end of period |
|
$ |
15,128 |
|
|
$ |
8,687 |
|
|