Financial Data and Key Metrics Changes - Q3 2023 results showed positive adjusted EBITDA of $4.7 million, a significant improvement from negative $20.6 million in Q3 2022 [15] - Gross profit improved due to strong crush margins, although unexpected repair and maintenance costs tempered results [14] - Cash flow from operations was $23 million for Q3 2023, with a cash balance of $26 million as of September 30, 2023 [18] Business Line Data and Key Metrics Changes - Specialty alcohol sales were impacted by lower consumer demand, leading to lower sales and profitability than expected for Q3 2023 [15] - The company is on track to achieve 90 million gallons for 2024, with efforts to roll over some 2023 contracted volumes into 2024 [29] Market Data and Key Metrics Changes - Corn basis levels increased by $0.31 compared to Q2 2023, reflecting a sharp increase sequentially [14] - The company faced challenges with production volumes due to significant downtime and repair costs, impacting its hedging strategy [14][15] Company Strategy and Development Direction - The company is transitioning from low-margin commodities to high-margin specialty alcohols and essential ingredients [6] - Strategic initiatives include expanding high-quality alcohol products and evaluating capital-intensive projects like carbon capture and sequestration [8][12] - The company aims to increase annual adjusted EBITDA by over $65 million by mid-2026 and by approximately $125 million by year-end 2027 [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges and intermittent commodity market issues but remains optimistic about future performance [7][19] - The company is committed to fiscal responsibility while pursuing long-term profitability and maximizing shareholder value [19] Other Important Information - The Pekin facility received a third-party product safety certification, enhancing product differentiation [13] - The company plans to publish a sustainability report by year-end, reflecting its commitment to community stewardship [12] Q&A Session Summary Question: What areas are driving the six to twelve months timeline extension? - The timeline extension includes the yeast project and the implementation of high-protein installations, with a focus on ensuring successful completion before broader rollout [21][23] Question: Can you provide an update on carbon capture? - The company is actively negotiating for the sequestration project and remains optimistic about its transformative potential [25][26] Question: What caused the extended downtime? - Extended downtime was due to scheduled maintenance and unexpected operational challenges, including water balance and dryer issues [32][34] Question: Are there additional funding needs for projects? - Additional capital is needed for specific projects like the yeast project, but the company has sufficient working capital for operations [36][37] Question: What caused the year-over-year decline in third-party renewable fuel gallons? - The decline was attributed to the sale of California plants and timing issues with product in transit [38][39]

Alto Ingredients, Inc. Q3 2023 Investor Presentation November 6, 2023 ...

Alto Ingredients, Inc. Q2 2023 Investor Presentation August 7, 2023 ...

Alto Ingredients, Inc. (NASDAQ:ALTO) Q2 2023 Results Earnings Conference Call August 7, 2023 5:00 PM ET Company Participants Kirsten Chapman - LHA Investor Relations Mike Kandris - Interim Chief Operating Officer Bryon McGregor - President and Chief Executive Officer Rob Olander - Chief Financial Officer Conference Call Participants Eric Stine - Craig-Hallum Capital Group Sameer Joshi - H.C. Wainwright & Co., LLC Operator Good day. And welcome to the Alto Ingredients Second Quarter 2023 Financial Results Co ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk, and internal controls [FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for the periods ended June 30, 2023, and 2022, including balance sheets, statements of operations, cash flows, and stockholders' equity, with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets slightly decreased to $471.4 million, liabilities remained stable, and stockholders' equity decreased to $300.8 million Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2023 (unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $179,529 | $199,121 | | **Total Assets** | $471,410 | $478,321 | | **Total Current Liabilities** | $58,686 | $78,017 | | **Total Liabilities** | $170,617 | $170,232 | | **Total Stockholders' Equity** | $300,793 | $308,089 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2023 net income was $7.6 million on $317.3 million net sales, compared to $22.1 million on $362.2 million net sales in Q2 2022, which included a $22.7 million grant Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $317,297 | $362,189 | $631,188 | $670,307 | | **Gross profit** | $17,181 | $8,844 | $14,017 | $13,617 | | **Income (loss) from operations** | $9,270 | $(152) | $(2,350) | $(3,008) | | **Income from cash grant** | — | $22,652 | — | $22,652 | | **Net income (loss)** | $7,595 | $22,115 | $(5,571) | $19,513 | | **Net income (loss) per share, diluted** | $0.10 | $0.29 | $(0.08) | $0.26 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $12.9 million for the six months ended June 30, 2023, a shift from $20.7 million provided in the prior year, leading to a $24.4 million decrease in total cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(12,904) | $20,695 | | **Net cash used in investing activities** | $(21,468) | $(9,651) | | **Net cash provided by financing activities** | $9,937 | $1,568 | | **Net change in cash, cash equivalents and restricted cash** | $(24,435) | $12,612 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased by $7.3 million to $300.8 million due to net loss, share repurchases, and preferred stock dividends - Total stockholders' equity decreased by **$7.3 million** in the first six months of 2023, from **$308.1 million** to **$300.8 million**[19](index=19&type=chunk) - Key activities affecting equity included a net loss for the period, stock repurchases of **$2.7 million**, and preferred stock dividends paid[19](index=19&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's organization, accounting policies, segment reporting, inventories, derivative instruments, debt structure, and commitments - The company operates in three segments: (1) marketing and distribution, (2) Pekin production, and (3) Other production[33](index=33&type=chunk) - As of June 30, 2023, the company had **$49.4 million** in unused borrowing availability under the Kinergy line of credit and **$40.0 million** available under the Orion term loan[50](index=50&type=chunk) - The company uses derivative instruments (exchange-traded futures) to hedge commodity price risk for corn and alcohols, recognizing net gains of **$5.2 million** for the six months ended June 30, 2023[43](index=43&type=chunk)[169](index=169&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=21&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reported improved crush margins and positive Adjusted EBITDA for Q2 2023, despite lower net sales, while investing in capital projects to diversify revenue and increase future EBITDA Key Performance Indicators (in millions) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net Sales** | $317.3M | $362.2M | | **Gross Profit** | $17.2M | $8.8M | | **Net Income (loss)** | $7.6M | $22.1M | | **Adjusted EBITDA** | $15.5M | $29.9M | - The decline in net sales was primarily due to fewer gallons of specialty alcohol sold and lower average sales prices for both alcohol and essential ingredients[112](index=112&type=chunk) - The company is focused on strategic capital projects, including carbon capture and sequestration (CCS), which is expected to generate over **$30 million** in annual EBITDA. The long-term goal is to increase annualized EBITDA by approximately **$125 million** by the end of 2026 through these initiatives[95](index=95&type=chunk)[100](index=100&type=chunk) - As of June 30, 2023, the company had **$25.1 million** in cash and cash equivalents, plus **$49.4 million** available on its line of credit and **$40 million** on its term loan, which management believes provides sufficient liquidity for the next twelve months[145](index=145&type=chunk) [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=37&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is commodity price volatility for ethanol, corn, and natural gas, mitigated by derivatives, with a 10% adverse price change potentially impacting pre-tax income by over $30 million - The business is highly sensitive to changes in the prices of ethanol and corn[165](index=165&type=chunk) - The company uses derivative instruments, such as futures and options, to manage and reduce the impact of commodity price changes[168](index=168&type=chunk) Market Risk Sensitivity Analysis (in millions) | Commodity | Approximate Adverse Change to Pre-Tax Income (from 10% price change) | | :--- | :--- | | Ethanol | $(30.9) | | Corn | $(30.4) | [CONTROLS AND PROCEDURES](index=38&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[171](index=171&type=chunk) - There were no material changes to the company's internal control over financial reporting during the most recently completed fiscal quarter[172](index=172&type=chunk) [PART II OTHER INFORMATION](index=39&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and other disclosures [LEGAL PROCEEDINGS](index=39&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings, which management believes will not materially adversely affect financial condition or results - The company is subject to legal proceedings arising in the ordinary course of business[175](index=175&type=chunk) - Management does not expect these proceedings to have a material adverse impact on the company's financial condition or results[175](index=175&type=chunk) [RISK FACTORS](index=39&type=section&id=ITEM%201A.%20RISK%20FACTORS) Major risks include volatile commodity prices, operational disruptions, substantial debt, and changes to federal renewable fuel mandates - Business results are highly dependent on volatile commodity prices, including corn, natural gas, and alcohols, which are subject to forces beyond the company's control[177](index=177&type=chunk) - The company faces risks from production or distribution disruptions caused by weather, equipment failures, and other operational hazards, including those related to climate change[189](index=189&type=chunk)[193](index=193&type=chunk) - Substantial indebtedness may limit operational flexibility and expose the company to risks if it cannot generate sufficient cash to service its debt[203](index=203&type=chunk) - The fuel-grade ethanol industry is highly dependent on federal and state laws, and any changes, such as reductions in the Renewable Fuel Standard, could materially harm results[215](index=215&type=chunk)[217](index=217&type=chunk) [UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=50&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered equity sales occurred, but the company repurchased 389,000 shares for $1.0 million under a program limited by lender consent - No unregistered sales of equity securities were made during the period[234](index=234&type=chunk) Share Repurchases - Q2 2023 (in thousands, except per share data) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Three months ended June 30, 2023 | 389,000 | $2.57 | - The share repurchase program is authorized for up to **$50 million**, but lender consent is required for amounts over **$5 million**, and board/preferred stockholder authorization is needed for amounts over **$10 million**[239](index=239&type=chunk) [DEFAULTS UPON SENIOR SECURITIES](index=52&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Not applicable - Not applicable[243](index=243&type=chunk) [MINE SAFETY DISCLOSURES](index=52&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable - Not applicable[243](index=243&type=chunk) [OTHER INFORMATION](index=52&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers reported adoption or termination of Rule 10b5-1 trading arrangements during the quarter - No directors or officers reported the adoption or termination of a Rule 10b5-1 trading arrangement during the quarter[244](index=244&type=chunk) [EXHIBITS](index=53&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits including CEO/CFO certifications and Inline XBRL data files - The report includes required CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[245](index=245&type=chunk) - Inline XBRL documents, including schema, calculation, definition, label, and presentation linkbases, are filed as exhibits[245](index=245&type=chunk)

Alto Ingredients, Inc. (NASDAQ:ALTO) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET Company Participants Kirsten Chapman - LHA Investor Relations Mike Kandris - Chief Executive Officer Bryon McGregor - Chief Financial Officer Conference Call Participants Amit Dayal - H.C. Wainwright & Co, LLC Eric Stine - Craig-Hallum Capital Group LLC David Bastian - Kingdom Capital Advisors Operator Good day, and welcome to the Alto Ingredients First Quarter 2023 Financial Results Conference Call. All participant ...

Alto Ingredients, Inc. Q1 2023 Investor Presentation May 8, 2023 1 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 "anticipa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 000-21467 ALTO INGREDIENTS, INC. (Exact name of registrant as specified in its charter) | --- | --- | |---------------- ...

Sales Performance - The Pekin Campus production segment generated net sales of $521.3 million in 2022, up from $498.2 million in 2021 and $330.4 million in 2020 from alcohol sales[51]. - The Other production segment reported net sales of $253.6 million in 2022, compared to $107.9 million in 2021 and $137.7 million in 2020 from alcohol sales[52]. - The marketing and distribution segment generated net sales of $228.9 million in 2022, down from $381.2 million in 2021 and $257.7 million in 2020 from alcohol sales[52]. - The company sold approximately 201.1 million gallons of alcohols in 2022, a decrease from 213.0 million gallons in 2021 and an increase from 193.9 million gallons in 2020[51]. Strategic Initiatives - The company is pursuing strategic opportunities such as joint ventures and synergistic acquisitions as financial resources allow[22]. - The company completed Together for Sustainability certification at its Pekin Campus in February 2023, enhancing its corporate social responsibility standards[22]. Market Trends - The essential ingredients market is expected to grow significantly due to global demand for higher-grade protein feed[36]. - The Renewable Fuel Standard mandates the use of 15.0 billion gallons of conventional ethanol for 2023, increasing to 15.25 billion gallons for 2024 and 2025[38]. - The domestic fuel-grade ethanol industry produced 15.4 billion gallons in 2022, up from 15.0 billion gallons in 2021[39]. Customer and Supplier Relationships - The company has extensive customer relationships, with sales to its two largest customers representing approximately 20% of net sales in 2022[54]. - In 2022, purchases of corn from the two largest suppliers represented approximately 27% of total corn purchases, up from 16% in both 2021 and 2020[56]. - Approximately 69% of total third-party ethanol purchases in 2022 came from the four largest suppliers, down from 76% in 2021[58]. Production Capacity and Operations - The company operates five production facilities with an annual alcohol production capacity of 350 million gallons, including 210 million gallons of fuel-grade ethanol and up to 140 million gallons of specialty alcohols[59]. - The company has an annual production capacity of 60 million gallons at its idled facility in Burley, ID, and 40 million gallons at its operating facility in Boardman, OR[62]. - The company purchased and resold approximately 220 million gallons of fuel-grade ethanol in 2022, compared to 204 million gallons in 2021 and 163 million gallons in 2020[57]. Price Fluctuations and Risk Management - Fuel-grade ethanol prices ranged from $2.00 to $2.88 per gallon in 2022, while corn prices ranged from $5.64 to $8.18 per bushel during the same period[64]. - The company employs various risk mitigation techniques to manage commodity price fluctuations, including purchasing forward a portion of corn and natural gas requirements[63]. - The price of corn is subject to wide fluctuations due to factors like weather conditions, governmental policies, and global supply and demand[262]. - The company enters into volume contracts with corn vendors to fix purchase prices, which exposes it to market risk if prices decrease after the price is fixed[262]. - The company employs risk management and hedging strategies, including the use of derivative financial instruments such as futures and options[263]. Financial Performance and Sensitivity Analysis - The company recognized net gains of $19.3 million, $21.6 million, and $14.8 million related to the change in the fair values of derivative contracts for the years ended December 31, 2022, 2021, and 2020, respectively[264]. - A sensitivity analysis estimated that a hypothetical 10% adverse change in ethanol prices could result in a pre-tax income change of approximately $65.1 million, based on an expected volume of 418.9 million gallons[265]. - For corn, a 10% adverse price change could lead to a pre-tax income change of approximately $74.6 million, based on an expected volume of 107.5 million bushels[265]. - Changes in the fair values of derivative contracts are recorded on the balance sheet and recognized immediately in cost of goods sold[264]. - The analysis of market risk does not factor in future contracted volumes, indicating potential variability in actual results[264]. Workforce and Labor Relations - The company has approximately 439 employees, with 44% represented by a labor union[81]. - The company is the largest producer of specialty alcohols in the United States, competing with significant producers like Archer-Daniels-Midland Company and MGP Ingredients[68].

Alto Ingredients, Inc. (NASDAQ:ALTO) Q4 2022 Earnings Conference Call March 9, 2023 5:00 PM ET Company Participants Kirsten Chapman - Investor Relations Mike Kandris - Chief Executive Officer Bryon McGregor - Chief Financial Officer Conference Call Participants Eric Stine - Craig-Hallum David Bastian - Kingdom Capital Advisors Operator Good afternoon, and welcome to the Alto Ingredients Fourth Quarter 2022 Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After t ...