Alto Ingredients, Inc. Q4 2022 Investor Presentation March 9, 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 "antici ...

Alto Ingredients, Inc. (NASDAQ:ALTO) Q3 2022 Earnings Conference Call November 7, 2022 5:00 PM ET Company Participants Kirsten Chapman - LHA, Investor Relations Mike Kandris - Director & Chief Executive Officer Bryon McGregor - Chief Financial Officer Conference Call Participants Eric Stine - Craig-Hallum Amit Dayal - H.C. Wainwright David Bastian - Kingdom Capital Advisors Operator Good afternoon. And welcome to the Alto Ingredients Incorporated. Third Quarter 2022 Results Conference Call. All participants ...

Alto Ingredients, Inc. (NASDAQ:ALTO) Q2 2022 Earnings Conference Call August 8, 2022 5:00 PM ET Company Participants Kirsten Chapman - LHA, Investor Relations Mike Kandris - Director and Chief Executive Officer Bryon McGregor - Chief Financial Officer Conference Call Participants Constantine Lednev - Guggenheim Partners Eric Stine - Craig Hallum Capital Group Amit Dayal - HC Wainwright David Bastian - Kingdom Capital Advisors Operator Good afternoon. And welcome to Alto Ingredients Second Quarter 2022 Resu ...

Company Overview - Alto Ingredients operates 3 biorefinery campuses and 1 distribution center, with a total production capacity of 350 million gallons per year (MGY)[5] - The company serves four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels[5] - Alto Ingredients acquired Eagle Alcohol on January 14, 2022, for $15.3 million in cash plus a potential earnout of up to $14 million ($9 million in cash and $5 million in common stock)[23] Financial Performance - In the three months ended June 30, 2022, Alto Ingredients reported net sales of $362189 thousand, compared to $298110 thousand for the same period in 2021[34] - Adjusted EBITDA for the three months ended June 30, 2022, was $29892 thousand, compared to $16960 thousand for the same period in 2021[34] - For the six months ended June 30, 2022, net sales were $670307 thousand, compared to $516844 thousand for the same period in 2021[34] - Adjusted EBITDA for the six months ended June 30, 2022, was $34340 thousand, compared to $30397 thousand for the same period in 2021[34] - Eagle Alcohol generated $35 million in revenue and $4 million in Adjusted EBITDA in 2021[23] Strategic Initiatives - Alto Ingredients plans to install Harvesting Technology's CoPromax™ at its Magic Valley, ID facility, expecting to produce over 33000 tons of 50+% protein content feed and increase corn oil yields by approximately 9 million pounds, contributing over $9 million in Adjusted EBITDA annually[17] - The company has a $50 million+ 3-year EBITDA growth plan[25] - Alto Ingredients has a strong balance sheet with working capital of $178.4 million as of June 30, 2022[30]

Production Capacity and Operations - The company has an annual alcohol production capacity of 350 million gallons and marketed approximately 480 million gallons of alcohols and fuel-grade ethanol in 2021[82]. - The company operates five production facilities, with significant logistical advantages for both domestic and international markets[88]. - Production capacity utilization improved to 88% for the three months ended June 30, 2022, compared to 59% in the same period of 2021[113]. - The installation of Harvesting Technology's CoPromax system at the Magic Valley facility is expected to produce over 33,000 tons of high-protein feed and contribute over $9.0 million in EBITDA annually[98]. - The expansion of corn storage capacity at the Pekin Campus is projected to yield over $2.0 million in EBITDA annually starting in Q4 2022[99]. Financial Performance - Net income for the three months ended June 30, 2022, was $22.1 million, compared to $8.4 million for the same period in 2021, representing a 163.5% increase[107]. - Adjusted EBITDA for the three months ended June 30, 2022, was $29.9 million, up from $17.0 million in the same period of 2021, reflecting a 75.5% increase[108]. - Net sales for the three months ended June 30, 2022, were $362.2 million, a 21.5% increase from $298.1 million in the same period of 2021[115]. - Consolidated gross profit declined to $8.8 million, representing a gross profit margin of 2.4%, for the three months ended June 30, 2022, compared to $15.2 million, representing a gross profit margin of 5.1%, for the same period in 2021[135]. - Net income available to common stockholders increased by $13.5 million (170.1%) for the three months ended June 30, 2022, and by $6.4 million (51.8%) for the six months ended June 30, 2022, primarily due to the cash grant from the CARES Act[149]. Costs and Expenses - Cost of goods sold for the three months ended June 30, 2022, was $353.3 million, up 24.9% from $282.9 million in the same period of 2021[115]. - Selling, general and administrative (SG&A) expenses increased by $1.8 million (24.4%) for the three months ended June 30, 2022, and by $2.4 million (16.7%) for the six months ended June 30, 2022, primarily due to increased stock compensation expenses and acquisition-related accruals[143]. - Interest expense declined by $726,000 (69.5%) for the three months ended June 30, 2022, and by $2.4 million (82.3%) for the six months ended June 30, 2022, due to lower debt balances[146]. Market and Risk Management - Ethanol sales are sensitive to global supply, crude oil prices, government regulations, and consumer demand for alternative fuels[169]. - The company is exposed to market risk regarding corn pricing, influenced by weather, planting decisions, and international trade policies[170]. - The company employs risk management strategies, including derivatives like futures and options, to mitigate market risks associated with ethanol and corn prices[171]. - For the six months ended June 30, 2022, the company recognized net gains of $21.9 million from changes in the fair values of derivative contracts[172]. - A sensitivity analysis estimated a potential adverse pre-tax income change of $32.3 million for a 10% decrease in ethanol prices based on a volume of 210.3 million gallons[173]. Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash increased by $12.6 million (20.3%) to $74.7 million as of June 30, 2022, compared to $62.1 million at December 31, 2021[153]. - Working capital improved to $178.4 million at June 30, 2022, from $159.9 million at December 31, 2021, reflecting an increase in current assets[154]. - Cash provided by operating activities was $20.7 million for the six months ended June 30, 2022, compared to $4.0 million for the same period in 2021[156]. Strategic Investments and Acquisitions - The acquisition of Eagle Alcohol Company LLC for $14.0 million is expected to contribute $4.0 million in EBITDA for 2022 and between $8.0 million and $9.0 million annually starting in 2023[85][103]. - The company invested over $15.0 million in capital improvements and repair projects, including the purchase of two new boilers to enhance steam capabilities[96]. - The company is in the engineering phase of a project to bypass the local natural gas utility, expected to yield approximately $5.0 million in EBITDA annually beginning in 2024[101]. Sales and Production Trends - Total gallons sold for the three months ended June 30, 2022, decreased by 14.3% to 107.1 million gallons compared to 125.0 million gallons in the same period of 2021[113]. - Average sales price per gallon increased by 17.8% to $2.84 for the three months ended June 30, 2022, compared to $2.41 in the same period of 2021[117]. - Specialty alcohol production for the three months ended June 30, 2022, was 25.8 million gallons, consistent with the contracted volume of 90 million gallons for 2022[116]. - Net sales of essential ingredients increased by $10.3 million, or 21%, to $59.9 million for the three months ended June 30, 2022, compared to $49.6 million for the same period in 2021[119]. - Net sales of fuel-grade ethanol from the marketing and distribution segment decreased by $23.0 million, or 26%, to $63.8 million for the three months ended June 30, 2022, compared to $86.8 million for the same period in 2021[121].