Northstar Clean Technologies
DevvStream

Plug Into More Green Stock News

Tap into the pulse of emerging green sectors every morning. Top daily headlines from clean energy, cleantech, cannabis, and sustainable transport stocks:

Please review our Disclaimer and Privacy Policy before subscribing. One-click unsubscribe at any time.

Alto Ingredients Reports Fourth Quarter and Full Year 2021 Results

  • Increased Net Sales 128% to $385 Million and Gross Profit 209% to $42 Million in Q4 2021 vs. Q4 2020
  • Improved Net Income Available to Common Stockholders to $35 Million from Net Loss of $21 Million and Adjusted EBITDA 168% to $43 Million in Q4 2021 vs. Q4 2020
  • Grew Net Sales 35% to $1.2 Billion and Gross Profit 28% to $68 Million in 2021 vs. 2020
  • Improved Net Income Available to Common Stockholders to $44 Million and Adjusted EBITDA 15% to $77 Million in 2021 vs. 2020
  • Acquired Specialty Alcohol Distributor, Eagle Alcohol, in January 2022

SACRAMENTO, Calif., March 10, 2022 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols and essential ingredients, reported its fourth quarter and full year 2021 financial results for the year ended December 31, 2021.

“In 2021, by focusing on higher margin, consistent revenue markets, we succeeded in becoming a profitable business with significant, unique opportunities for top- and bottom-line growth,” said Mike Kandris, CEO of Alto Ingredients. “During 2021, we invested in capacity, expanded our protein strategy, optimized assets, and secured valuable certifications. As a result, net sales reached $1.2 billion, up 35% over 2020, reflecting the solid specialty alcohol and essential ingredients business throughout the year and exceptional renewable fuel margins in the fourth quarter of 2021. In January 2022, we completed a downstream integration by acquiring a small-package distributor, Eagle Alcohol. Eagle fits perfectly into our strategic roadmap as we continue to raise the quality of our production to the highest grades of grain neutral spirits by further enhancing our distillation process, optimizing our production capabilities and integrating Eagle’s strong distribution and sales services. Also, Eagle further diversifies our business with less emphasis on revenue related to commodities. Looking ahead, we plan to invest further in key differentiating assets as well as evaluate capital expenditure programs to create long-term stakeholder value.”

Financial Results for the Three Months Ended December 31, 2021 Compared to 2020

  • Net sales were $385.5 million, compared to $168.8 million.
  • Cost of goods sold was $343.4 million, compared to $155.2 million.
  • Gross profit was $42.1 million, compared to $13.6 million.
  • Selling, general and administrative expenses were $9.4 million, compared to $6.7 million.
  • Operating income was $37.3 million, compared to an operating loss of $14.2 million.
  • Net income available to common stockholders was $35.4 million, or $0.49 per diluted share, compared a net loss of $20.5 million, or $0.30 per share.
  • Adjusted EBITDA was $43.4 million, compared to $16.2 million.
  • Cash and cash equivalents were $50.6 million at December 31, 2021, compared to $47.7 million at December 31, 2020.
  • On November 8, 2021, the company announced the sale of its renewable fuel production facility in Stockton, California for $24.0 million in cash.

Financial Results for the Twelve Months Ended December 31, 2021 Compared to 2020

  • Net sales were $1.2 billion, compared to $897.0 million.
  • Cost of goods sold was $1.1 billion, compared to $844.2 million.
  • Gross profit was $67.8 million, compared to $52.9 million.
  • Selling, general and administrative expenses were $29.2 million, compared to $32.0 million.
  • Operating income was $40.1 million, compared to $9.9 million.
  • Net income available to common stockholders was $44.2 million, or $0.61 per diluted share, compared to a net loss of $16.4 million, or $0.28 per share.
  • Adjusted EBITDA was $76.8 million, compared to $66.6 million.

Fourth Quarter 2021 Results Conference Call

Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Thursday, March 10, 2022, and will deliver prepared remarks via webcast followed by a question-and-answer session.

The webcast for the call can be accessed from Alto Ingredients’ website at www.altoingredients.com. Alternatively, you may dial the following number up to ten minutes prior to the scheduled conference call time: (877) 847-6066. International callers should dial 00-1 (970) 315-0267. The pass code will be 3612369. If you are unable to participate in the live call, the webcast will be archived for replay on Alto Ingredients’ website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Thursday, March 10, 2022, through 8:00 p.m. Eastern Time on Thursday, March 17, 2022. To access the replay, please dial (855) 859-2056. International callers should dial 00-1 (404) 537-3406. The pass code will be 3612369.

Use of Non-GAAP Measures

Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited net income (loss) attributed to Alto Ingredients, Inc. before interest expense, interest income, provision (benefit) for income taxes, asset impairments, loss on extinguishment of debt, purchase accounting adjustments, fair value adjustments, and depreciation expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss) attributed to Alto Ingredients, Inc. Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) attributed to Alto Ingredients, Inc. or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.

About Alto Ingredients, Inc.

Alto Ingredients, Inc. (ALTO) is a leading producer and distributor of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information, please visit www.altoingredients.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

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 “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning the benefits of the acquisition of Eagle Alcohol; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business. These factors include, among others, adverse economic and market conditions, including for specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; and the effects – both positive and negative – of the coronavirus pandemic and its resurgence or abatement. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the specialty alcohol production and marketing industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2021.

Media Contact:
Bryon McGregor, Alto Ingredients, Inc., 916-403-2768, This email address is being protected from spambots. You need JavaScript enabled to view it.
Company IR Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755, This email address is being protected from spambots. You need JavaScript enabled to view it.
IR Agency Contact:
Kirsten Chapman, LHA Investor Relations, 415-433-3777, This email address is being protected from spambots. You need JavaScript enabled to view it.

 
ALTO INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
 
 Three Months Ended
December 31,
 Year Ended
December 31,
 2021  2020 2021 2020
     
Net sales$385,492  $168,818  $1,207,892  $897,023 
Cost of goods sold 343,379   155,181   1,140,108   844,164 
Gross profit 42,113   13,637   67,784   52,859 
Selling, general and administrative expenses (9,408)  (6,735)  (29,185)  (31,980)
Gain on sale of assets 4,571   3,223   4,571   1,580 
Gain on litigation settlement          11,750 
Asset impairments    (24,356)  (3,100)  (24,356)
Income (loss) from operations 37,276   (14,231)  40,070   9,853 
Income from loan forgiveness       9,860    
Interest expense, net (228)  (3,790)  (3,587)  (17,943)
Fair value adjustments    (2,462)     (9,959)
Other income, net 567   271   1,208   750 
Income (loss) before income taxes 37,615   (20,212)  47,551   (17,299)
Provision (benefit) for income taxes 1,469   (17)  1,469   (17)
Consolidated net income (loss) 36,146   (20,195)  46,082   (17,282)
Net loss attributed to noncontrolling interests          2,166 
Net income (loss) attributed to Alto Ingredients, Inc.$36,146  $(20,195) $46,082  $(15,116)
Preferred stock dividends$(319) $(319) $(1,265) $(1,268)
Income allocated to participating securities$(477) $  $(600) $ 
Net income (loss) available to common stockholders$35,350  $(20,514) $44,217  $(16,384)
Net income (loss) per share, basic$0.50  $(0.30) $0.62  $(0.28)
Net income (loss) per share, diluted$0.49  $(0.30) $0.61  $(0.28)
Weighted-average shares outstanding, basic 71,387   67,512   71,098   58,609 
Weighted-average shares outstanding, diluted 72,222   67,512   72,219   58,609 

 

 
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
     
 December 31, December 31,
ASSETS2021 2020
Current Assets:    
Cash and cash equivalents$50,612 $47,667
Restricted cash 11,513  520
Accounts receivable, net 86,888  43,491
Inventories 54,373  37,925
Derivative assets 15,839  17,149
Assets held-for-sale 1,000  58,295
Other current assets 9,301  8,999
Total current assets 229,526  214,046
Property and equipment, net 222,550  229,486
Other Assets:  
Right of use operating lease assets, net 13,413  11,046
Notes receivable 11,641  14,337
Other assets 7,823  7,903
Total other assets 32,877  33,286
Total Assets$484,953 $476,818

 

 
ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)
   
 December 31, December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY2021 2020
Current Liabilities:     
Accounts payable – trade$23,251  $13,047 
Accrued liabilities 21,307   11,101 
Current portion – operating leases 3,909   2,180 
Current portion – long-term debt    25,533 
Derivative liabilities 13,582    
Liabilities held-for-sale    19,542 
Other current liabilities 7,553   15,524 
Total current liabilities 69,602   86,927 
   
Long-term debt, net of current portion 50,361   71,807 
Operating leases, net of current portion 9,382   8,715 
Other liabilities 10,394   13,134 
Total Liabilities 139,739   180,583 
   
Stockholders’ Equity:  
Alto Ingredients, Inc. Stockholders’ Equity:  
Preferred stock, $0.001 par value; 10,000 shares authorized;
   Series A: 0 shares issued and outstanding as of
   December 31, 2021 and 2020
   Series B: 927 shares issued and outstanding as of
   December 31, 2021 and 2020
 1   1 
Common stock, $0.001 par value; 300,000 shares authorized;
   72,778 and 72,487 shares issued and outstanding as of
   December 31, 2021 and 2020, respectively
 73   72 
Non-voting common stock, $0.001 par value; 3,553 shares
   authorized; 1 share issued and outstanding as of
   December 31, 2021 and 2020
     
Additional paid-in capital 1,037,205   1,036,638 
Accumulated other comprehensive loss (284)  (3,878)
Accumulated deficit (691,781)  (736,598)
Total Stockholders’ Equity 345,214   296,235 
Total Liabilities and Stockholders’ Equity$484,953  $476,818 
        

Reconciliation of Adjusted EBITDA to Net Income (Loss)

 Three Months Ended
December 31,
 Years Ended
December 31,
(unaudited)2021 2020 2021 2020
Net income (loss) attributed to Alto Ingredients, Inc.$36,146  $(20,195) $46,082  $(15,116)
Adjustments:               
Interest expense 228   3,790   3,587   17,943 
Interest income (177)  (190)  (730)  (768)
Asset impairments    24,356   3,100   24,356 
Fair value adjustments    2,462      9,959 
Provision (benefit) for income taxes 1,469   (17)  1,469   (17)
Depreciation expense 5,772   6,015   23,292   30,269 
Total adjustments 7,292   36,416   30,718   81,742 
Adjusted EBITDA$43,438  $16,221  $76,800  $66,626 
                

Commodity Price Performance

 Three Months Ended
December 31,
 Years Ended
December 31,
(unaudited)2021 2020 2021 2020
Renewable fuel production gallons sold (in millions) 42.6  33.0  161.1  181.0
Specialty alcohol production gallons sold (in millions) 26.3  16.0  89.5  90.9
Third party renewable fuel gallons sold (in millions) 48.5  51.6  229.0  264.4
Total gallons sold (in millions) 117.4  100.6  479.6  536.3
            
Total gallons produced (in millions) 69.6  53.0  251.7  262.1
Production capacity utilization 74%  47%  60%  53%
            
Average sales price per gallon$3.04 $1.72 $2.46 $1.63
Average CBOT ethanol price per gallon$2.19 $1.41 $2.11 $1.25
            
Corn cost – CBOT equivalent$5.69 $3.79 $5.70 $3.56
Average basis$0.49 $0.27 $0.52 $0.28
Delivered cost of corn$6.18 $4.06 $6.22 $3.84
            
Total essential ingredient tons sold (in thousands) 349.7  270.0  1,236.2  1,447.5
Essential ingredient return % (1) 33.5%  42.6%  33.7%  44.1%
________________           
(1) Essential ingredient revenue as a percentage of delivered cost of corn.           
            

Segment Financials

(unaudited)
Three Months Ended
December 31,
 Years Ended
December 31,
 
2021
 
2020
 
2021
 2020
Net sales               


Pekin Campus production, recorded as gross:
               
Alcohol sales$156,227  $71,854  $498,195  $330,432 
Essential ingredient sales 48,865   32,103   189,535   130,270 
Intersegment sales 273   218   1,193   645 
Total Pekin Campus sales 205,365   104,175   688,923   461,347 


Marketing and distribution:
               
Alcohol sales, gross$123,720  $43,585  $379,422  $256,209 
Alcohol sales, net 264   405   1,753   1,529 
Intersegment sales 2,784   1,898   10,061   9,648 
Total marketing and distribution sales 126,768   45,888   391,236   267,386 
                
Other production, recorded as gross:               
Alcohol sales$44,622  $15,800  $107,931  $137,703 
Essential ingredient sales 11,794   5,071   31,056   40,880 
Intersegment sales 68   187   964   1,309 
Total Other production sales 56,484   21,058   139,951   179,892 
                
Intersegment eliminations (3,125)  (2,303)  (12,218)  (11,602)
Net sales as reported$385,492  $168,818  $1,207,892  $897,023 
                
Cost of goods sold:               
Pekin Campus production$169,595  $89,316  $638,371  $389,125 
Marketing and distribution 125,567   42,637   371,371   253,465 
Other production 49,348   25,069   136,401   206,412 
Intersegment eliminations (1,131)  (1,841)  (6,035)  (4,838)
Cost of goods sold as reported$343,379  $155,181  $1,140,108  $844,164 
                
Gross profit (loss):               
Pekin Campus production$35,770  $14,859  $50,552  $72,222 
Marketing and distribution 1,201   3,251   19,865   13,921 
Other production 7,136   (4,011)  3,550   (26,520)
Intersegment eliminations (1,994)  (462)  (6,183)  (6,764)
Gross profit as reported$42,113  $13,637  $67,784  $52,859 

Plug Into More Green Stock News

Tap into the pulse of emerging green sectors every morning. Top daily headlines from clean energy, cleantech, cannabis, and sustainable transport stocks:

Please review our Disclaimer and Privacy Policy before subscribing. One-click unsubscribe at any time.
Northstar Clean Technologies

Northstar Clean Technologies is a cleantech company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar’s mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America...

CLICK TO LEARN MORE
GreenPower Motor

GreenPower Motor designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van, and a cab and chassis...

CLICK TO LEARN MORE

COPYRIGHT ©2022 GREEN STOCK NEWS