Alto Ingredients(US:ALTO)2024-11-06 21:19Financial 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].