Alto Ingredients(US:ALTO)2021-09-16 19:39Business Transformation & Focus - Alto Ingredients is transforming corn into specialty alcohol and high-value essential ingredients for consumer and commercial products[3] - The company is focusing on four key areas: Health, Home & Beauty, Food & Beverage, Essential Ingredients, and Renewable Fuels[3] - Approximately 50% of Alto Ingredients' production is specialty alcohols, which are high-margin products with low price volatility[6, 13] Production & Capacity - Alto Ingredients has 5 facilities with a combined alcohol production capacity of 410 MGY (Million Gallons per Year)[3] - The company has 140 MGY capacity in specialty alcohols, with 120 MGY idled[3] - The Pekin campus has a total alcohol production capacity of approximately 250 MGY, with roughly 50% dedicated to specialty alcohols and 50% to fuel-grade ethanol[16] Financial Performance & Visibility - As of June 30, 2021, Alto Ingredients had $508 million in cash and cash equivalents[11] - For the six months ended June 30, 2021, net sales were $516844 million and gross profit was $29070 million[11] - Alto Ingredients is targeting $60 million in gross profit from the production of specialty alcohols in 2021[13] - Over 80% of specialty alcohol sales are contracted annually in advance, providing good visibility on near-term results[13] Debt & Capitalization - Alto Ingredients is net "term debt" free, with $193 million in net proceeds from asset sales used to prepay senior notes[11] - The company has less than $18 million remaining in term and plant debt loan balances[13]