Alto Ingredients(ALTO) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 were $236.3 million, a decrease of 13.7% from $273.6 million in Q4 2023[4] - For the full year 2024, net sales were $965.3 million, down from $1,222.9 million in 2023, representing a decline of 21.1%[9] - Total net sales for the three months ended December 31, 2024, were $236.3 million, a decrease of 13.7% compared to $273.6 million for the same period in 2023[22] - Alcohol sales from the Pekin Campus decreased to $100.2 million in Q4 2024 from $113.6 million in Q4 2023, representing a 11.5% decline[22] - The average sales price per gallon decreased to $1.88 in Q4 2024 from $2.24 in Q4 2023, reflecting a 16.1% drop[24] Cost and Expenses - Cost of goods sold for Q4 2024 was $237.7 million, down from $276.2 million in Q4 2023, reflecting a reduction of 13.9%[4] - The total cost of goods sold for the year ended December 31, 2024, was $955.5 million, down from $1.2 billion in 2023, a decrease of 20.9%[22] Net Loss and EBITDA - The net loss attributable to common stockholders for Q4 2024 was $42.0 million, or $0.57 per share, compared to a net loss of $19.3 million, or $0.26 per share in Q4 2023[4] - The company reported a net loss of $41.7 million for the three months ended December 31, 2024, compared to a net loss of $18.9 million for the same period in 2023[21] - Adjusted EBITDA for Q4 2024 was negative $7.7 million, compared to positive $3.5 million in Q4 2023[4] - Adjusted EBITDA for the three months ended December 31, 2024, was $(7.7) million, a decline from $3.5 million in the same period of 2023[21] Asset Management - The company recognized over $30 million in asset impairments during Q4 2024, including $24.8 million related to the Magic Valley and Eagle Alcohol acquisitions[3] - The acquisition of a beverage-grade liquid CO2 processor is expected to provide a payback of less than two years and enhance asset valuation[3] - The company is considering asset sales, a merger, or other strategic transactions to align with long-term value potential[3] Cash and Equity - Cash and cash equivalents increased to $35.5 million at December 31, 2024, up from $30.0 million at December 31, 2023[5] - The company’s total liabilities increased slightly to $176.4 million as of December 31, 2024, compared to $174.7 million as of December 31, 2023[20] - Stockholders' equity decreased to $225.1 million as of December 31, 2024, from $279.6 million as of December 31, 2023, a decline of 19.5%[20] Operational Metrics - Total gallons sold increased to 95.1 million in Q4 2024 from 92.5 million in Q4 2023, marking a 2.8% increase[24] - Essential ingredients sold totaled 426.3 thousand tons for the three months ended December 31, 2024, compared to 434.1 thousand tons in the same period of 2023, a decrease of 1.8%[25] Cost-Saving Initiatives - The company implemented cost-saving initiatives expected to yield approximately $8 million annually starting in Q2 2025, including a 16% reduction in headcount[2]