Financial Data and Key Metrics Changes - In Q3 2024, consolidated gross profit improved to $6 million compared to $4.2 million in Q3 2023, while adjusted EBITDA was $12.2 million, down from $13.6 million in the same period last year [9][25][30] - Net sales decreased to $252 million in Q3 2024 from $318 million in Q3 2023 due to lower market prices [25] - The consolidated net loss was $2.4 million, an improvement from a net loss of $3.5 million in Q3 2023 [29] Business Line Data and Key Metrics Changes - The Pekin campus contributed $6.2 million to gross profit, improving tenfold year-over-year, driven by productivity improvements and a positive sales mix [26] - Specialty alcohol sales increased by 4 million gallons compared to the same period last year, reaching 42% of total Pekin sales volume [12][26] - The Western facilities reported a gross loss of $2.3 million, a decline of $3.8 million year-over-year, primarily due to downtime and costs associated with upgrading the Magic Valley facility [28] Market Data and Key Metrics Changes - Q3 2024 began with solid ethanol crush margins supported by strong exports, but domestic demand weakened due to a decline in miles driven [15] - Carbon prices were approximately 80% lower in Oregon and Washington and 20% lower in California compared to the same period last year [16] - Corn prices are expected to remain low, which may increase demand for US corn exports but also strain logistics and drive up transportation costs [17] Company Strategy and Development Direction - The company is focused on sustainability, having finalized a CO2 transportation and sequestration agreement with Vault, aiming to lower its carbon footprint [10][11] - Plans to modernize equipment and facilities are ongoing, including the construction of a second alcohol loading dock at the Pekin campus to improve logistics [13] - The company is exploring alternatives to monetize or optimize its Western assets, including potential partnerships [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that market conditions have changed dramatically, impacting the original EBITDA uplift expectations for the Magic Valley facility [39] - The company remains optimistic about future profitability improvements and is committed to managing changing market dynamics [37] - Despite challenges, management believes that the fundamentals of the technology at Magic Valley are sound and that significant benefits are still expected [43] Other Important Information - The company generated $18.6 million in cash flow from operations in Q3, bringing the year-to-date total to $6.3 million [31] - The company invested $500,000 in CapEx during Q3, with a year-to-date total of $9.8 million [32] - The company completed its 2023 sustainability report, increasing disclosures on environmental, health, safety, and quality metrics [22] Q&A Session Summary Question: What is the outlook for Magic Valley's targeted annual EBITDA uplift? - Management indicated that original expectations are difficult to ascertain due to significant changes in market conditions affecting corn oil and protein values [39] Question: Will there be changes to the moratorium timeline for new permits due to recent ADM leaks? - Management noted no outward response from the EPA and highlighted improvements in operational practices since ADM's approval [41] Question: Have you considered seeking recourse against harvesting technologies for losses incurred? - Management is exploring all options, including potential recourse, but emphasized that the current market state is not permanent [43][44] Question: What is the purpose of engaging Guggenheim Securities? - The engagement aims to evaluate all options for maximizing returns, including partnerships, asset sales, or further improvements [45][46] Question: Will the review consider the sale of the entire company? - Management stated that all options, including the sale of the company, are always considered in the interest of shareholders [47]

Core Viewpoint - Alto Ingredients reported a quarterly loss of $0.04 per share, missing the Zacks Consensus Estimate of $0.02, and showing a year-over-year improvement from a loss of $0.05 per share [1][2] Financial Performance - The company posted revenues of $251.81 million for the quarter ended September 2024, which was 8.41% below the Zacks Consensus Estimate and down from $318.13 million in the same quarter last year [2] - Over the last four quarters, Alto Ingredients has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Performance - Alto Ingredients shares have declined approximately 27.4% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $292.05 million, while for the current fiscal year, the estimate is -$0.04 on revenues of $1.04 billion [7] - The trend of estimate revisions for Alto Ingredients is mixed, which may change following the recent earnings report [6] Industry Context - Alto Ingredients operates within the Consumer Products - Discretionary industry, which is currently ranked in the bottom 29% of over 250 Zacks industries [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Performance - Net sales for Q3 2024 were $251.8 million, down from $318.1 million in Q3 2023, representing a decrease of approximately 21% year-over-year[3][4]. - For the nine months ended September 30, 2024, net sales were $728.9 million, down from $949.3 million in the same period of 2023, a decrease of approximately 23%[7][8]. - Net sales reported for the three months ended September 2024 were $251,814,000, a decrease of 21% compared to $318,127,000 for the same period in 2023[25]. - Total Pekin Campus sales for the nine months ended September 2024 were $443,718,000, down 21% from $558,969,000 in the prior year[25]. Profitability - Gross profit improved over 40% year-over-year to $6.0 million, compared to $4.2 million in the prior year, despite market fluctuations[2][4]. - Adjusted EBITDA was positive $12.2 million in Q3 2024, down from $13.6 million in Q3 2023, reflecting a decrease of approximately 10%[6]. - Adjusted EBITDA for the three months ended September 30, 2024, was $12,164 thousand, compared to $13,596 thousand for the same period in 2023, a decrease of about 10.5%[20]. - The net loss available to common stockholders was $2.8 million, or $0.04 per share, compared to a net loss of $3.8 million, or $0.05 per share in the prior year[5][14]. - The company reported a net loss of $18.2 million for the nine months ended September 30, 2024, compared to a net loss of $10.0 million in the same period of 2023[8][14]. Sales Breakdown - Specialty alcohol sold increased by 4 million gallons compared to the same quarter last year, positively impacting the sales mix[2]. - Alcohol sales at the Pekin Campus for the three months ended September 2024 were $106,459,000, a decline of 17% from $128,554,000 in the same quarter of 2023[25]. - Essential ingredient sales for the three months ended September 2024 were $41,217,000, down 20% from $51,634,000 in the prior year[25]. - Total marketing and distribution sales for the three months ended September 2024 were $57,464,000, a decrease of 8% compared to $62,271,000 in the same period of 2023[25]. - Western production sales for the three months ended September 2024 were $46,811,000, down 38% from $75,037,000 in the same quarter of 2023[25]. Cost and Expenses - Selling, general and administrative expenses decreased to $7.5 million from $8.5 million year-over-year[4]. - Cost of goods sold for the three months ended September 2024 was $245,854,000, a decrease of 22% from $313,966,000 in the same period of 2023[25]. Assets and Liabilities - Cash and cash equivalents increased to $33.6 million at September 30, 2024, compared to $30.0 million at December 31, 2023[7][15]. - Total current liabilities decreased from $65,288 thousand to $45,102 thousand, a reduction of approximately 31%[17]. - Long-term debt increased slightly from $82,097 thousand to $83,342 thousand, reflecting a 1.5% increase[17]. - Total stockholders' equity decreased from $279,557 thousand to $263,925 thousand, a decline of about 5.6%[18]. Market Trends - Average PLATTS ethanol price per gallon decreased from $2.29 to $1.81, a decline of approximately 20.9%[23]. - Corn cost per bushel decreased from $6.60 to $4.68, a reduction of approximately 29%[21]. - Total renewable fuel gallons sold decreased from 78.5 million to 74.3 million, a decline of approximately 2.7%[21]. - Total essential ingredients sold decreased from 423.2 thousand tons to 391.4 thousand tons, a reduction of about 7.5%[23]. - Consolidated total return on essential ingredients increased from 40.4% to 42.8%, an improvement of 2.4 percentage points[23]. Sustainability Initiatives - The company entered into a CO2 Transportation and Sequestration Agreement with Vault 44.01, marking a significant step towards sustainability[1][3].

Core Insights - Alto Ingredients, Inc. reported its Q3 2024 financial results, highlighting a significant increase in gross profit and a new CO2 Transportation and Sequestration Agreement with Vault 44.01 aimed at reducing carbon emissions [1][2][3]. Financial Performance - For Q3 2024, net sales were $251.8 million, down from $318.1 million in Q3 2023 [4]. - Cost of goods sold decreased to $245.9 million from $314.0 million year-over-year [4]. - Gross profit improved over 40% year-over-year to $6.0 million, despite market fluctuations [2][4]. - Selling, general and administrative expenses were reduced to $7.5 million from $8.5 million [4]. - The net loss available to common stockholders was $2.8 million, or $0.04 per share, compared to a loss of $3.8 million, or $0.05 per share in the prior year [4]. Production and Sales Metrics - Specialty alcohol sales increased by 4 million gallons year-over-year, contributing positively to the sales mix [2]. - Total renewable fuel gallons sold in Q3 2024 were 74.3 million, down from 78.5 million in Q3 2023 [17]. - The average sales price per gallon for the Pekin campus was $2.02, compared to $2.48 in the previous year [17]. Cash and Liquidity - Cash and cash equivalents at September 30, 2024, were $33.6 million, up from $30.0 million at the end of 2023 [5]. - The company's borrowing availability was $92.2 million, including $27.2 million under the operating line of credit and $65.0 million under the term loan facility [5]. Strategic Initiatives - The company is focused on improving profitability and reducing its carbon footprint through the new CO2 Transportation and Sequestration Agreement [3][2]. - The agreement aims to transport and sequester carbon emissions from the Pekin campus into the Mt. Simon sandstone formation in Illinois [1][3].

PEKIN, Ill., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, announced it will release its third quarter 2024 financial results after the close of market on Wednesday, November 6, 2024. Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time and will deliver prepared remarks via webcast followed by a question-and-answer session. How to participate: T ...

PEKIN, Ill., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuel and essential ingredients, provided updates on its Magic Valley facility in Idaho where it has installed Harvesting Technology’s patented system to capture its high protein and corn oil products. For October to date, the new equipment and system modifications to improve capacity at the Magic Valley facility are delivering the following metrics: Averag ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

1 Alto Ingredients, Inc. Q2 2024 Investor Presentation August 6, 2024 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 existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as "antic ...

Alto Ingredients, Inc. (NASDAQ:ALTO) Q2 2024 Earnings Conference Call August 6, 2024 5:00 PM ET Company Participants Kirsten Chapman - LHA Investor Relations Bryon McGregor - President and Chief Executive Officer Rob Olander - Chief Financial Officer Conference Call Participants Sameer Joshi - H.C. Wainwright Eric Stine - Craig-Hallum Capital Group Justin Dopierala - DOMO Capital Management, LLC Operator Good afternoon, and welcome to the Alto Ingredients Inc. Second Quarter 2024 Financial Results Conferenc ...

NEW YORK, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Palo Alto Networks (NASDAQ: PANW) on behalf of long-term stockholders following a class action complaint that was filed against Palo Alto Networks on February 26, 2024 with a Class Period from August 18, 2023 to February 20, 2024. Our investigation concerns whether the board of directors of Palo Alto Networks have breached their fiduciary dut ...