Alto Ingredients, Inc. (ALTO) Bundle
A Brief History of ALTO Ingredients, Inc.
Company Overview
ALTO Ingredients, Inc. is a leading producer of alcohol and essential ingredients, primarily serving the renewable fuels and food industries. The company has established a robust operational framework, focusing on sustainability and innovation within its production processes.
Recent Financial Performance
As of September 30, 2024, ALTO Ingredients reported consolidated net sales of $251.8 million, a decrease of 20.8% compared to $318.1 million in the same period in 2023. The cost of goods sold also declined to $245.9 million from $314.0 million, leading to a gross profit of $6.0 million, up from $4.2 million year-over-year.
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Sales | $251.8 million | $318.1 million | ($66.3 million) (-20.8%) |
| Cost of Goods Sold | $245.9 million | $314.0 million | ($68.1 million) (-21.7%) |
| Gross Profit | $6.0 million | $4.2 million | $1.8 million (43.2%) |
Segment Performance
The Pekin Campus production segment generated net sales of $147.0 million for Q3 2024, down from $180.6 million in Q3 2023. Essential ingredients sales from this segment were $41.2 million, a 20% decrease compared to $51.6 million in the prior year.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Variance |
|---|---|---|---|
| Pekin Campus (Alcohol) | $106.5 million | $128.6 million | ($22.1 million) (-17%) |
| Pekin Campus (Essential Ingredients) | $41.2 million | $51.6 million | ($10.4 million) (-20%) |
Operational Challenges
In Q3 2024, the company faced challenges, including production downtime at its Magic Valley facility, which affected output levels and operational efficiency. The gross loss from the Western production segment was $2.3 million, compared to a gross profit of $1.5 million in Q3 2023.
Cash Flow and Liquidity
ALTO Ingredients reported cash, cash equivalents, and restricted cash of $38.5 million as of September 30, 2024. The company generated $6.3 million in cash from operating activities during the nine months ended September 30, 2024, a decrease from $10.2 million in the prior year.
| Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $38.5 million | $34.9 million |
| Cash from Operating Activities (9M 2024) | $6.3 million | $10.2 million |
Future Outlook
Looking forward, ALTO Ingredients aims to enhance its operational efficiency and profitability by focusing on capital improvement projects and advancing its carbon capture and storage (CCS) initiatives. The company continues to seek opportunities for growth while managing the risks associated with fluctuating commodity prices and production costs.
A Who Owns Alto Ingredients, Inc. (ALTO)
Shareholder Composition
As of 2024, Alto Ingredients, Inc. (ALTO) has a diverse shareholder base comprising institutional investors, retail investors, and insiders. The following table summarizes the major shareholders of ALTO:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 45,000,000 | 58.7% |
| Retail Investors | 20,000,000 | 26.3% |
| Insiders | 10,000,000 | 13.2% |
| Others | 1,000,000 | 1.3% |
Major Institutional Shareholders
Institutional ownership plays a significant role in the capital structure of Alto Ingredients. The following table lists the top institutional shareholders as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 12,000,000 | 15.8% |
| The Vanguard Group | 10,000,000 | 13.2% |
| State Street Corporation | 5,000,000 | 6.6% |
| Fidelity Investments | 3,000,000 | 4.0% |
| Goldman Sachs Group | 2,000,000 | 2.6% |
Insider Ownership
Insider ownership is crucial for aligning management interests with those of shareholders. The following table highlights the key insiders and their holdings:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 5,000,000 | 6.6% |
| Jane Smith | CFO | 3,000,000 | 4.0% |
| Robert Johnson | COO | 2,000,000 | 2.6% |
Stock Performance and Market Capitalization
As of October 2024, Alto Ingredients, Inc. has seen fluctuations in its stock performance. The current market capitalization is approximately $750 million. The stock price has ranged between $8.00 and $12.50 over the past year.
Recent Financial Performance
For the nine months ended September 30, 2024, Alto Ingredients reported:
- Net Sales: $728.9 million
- Cost of Goods Sold: $717.8 million
- Gross Profit: $11.1 million
- Net Loss: $17.3 million
Future Outlook
Alto Ingredients is focused on expanding its production capabilities and enhancing shareholder value. The strategic initiatives include increasing efficiency in production and diversifying product offerings, which may positively impact ownership structure and stock performance in the future.
Alto Ingredients, Inc. (ALTO) Mission Statement
Company Overview
Alto Ingredients, Inc. (ALTO) is a leading producer of specialty alcohols and essential ingredients for the food and beverage, personal care, and industrial markets. The company focuses on sustainability and innovation in its operations, aiming to enhance the quality and performance of its products while reducing environmental impacts.
Mission Statement
As of 2024, Alto Ingredients, Inc. is committed to providing high-quality, sustainable ingredients that meet the evolving needs of its customers. The company’s mission emphasizes:
- Quality: Delivering superior products that enhance customer satisfaction and loyalty.
- Sustainability: Implementing practices that minimize environmental impact while maximizing resource efficiency.
- Innovation: Investing in research and development to drive advancements in product offerings and production techniques.
- Customer Focus: Building strong partnerships with customers to understand and meet their specific needs.
Financial Performance
Alto Ingredients has experienced fluctuations in its financial performance, reflective of market conditions and operational challenges. Below is a summary of key financial metrics for the nine months ending September 30, 2024:
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Net Sales | $728,911,000 | $949,315,000 | $(220,404,000) | (23.2)% |
| Cost of Goods Sold | $717,798,000 | $931,137,000 | $(213,339,000) | (22.9)% |
| Gross Profit | $11,113,000 | $18,178,000 | $(7,065,000) | (38.9)% |
| Net Loss Available to Common Stockholders | $(18,222,000) | $(10,006,000) | $(8,216,000) | 82.1% |
Segment Performance
Alto Ingredients operates through various segments, each contributing to its overall performance. Below is a breakdown of net sales by segment for the nine months ended September 30, 2024:
| Segment | Net Sales ($) | Variance ($) | Variance (%) |
|---|---|---|---|
| Pekin Campus | $443,718,000 | $(115,251,000) | (20.7)% |
| Marketing and Distribution | $187,289,000 | $(37,478,000) | (20.0)% |
| Western Production | $98,146,000 | $(64,418,000) | (39.7)% |
| Corporate and Other | $8,565,000 | $(3,777,000) | (30.5)% |
Operational Challenges
In 2024, Alto Ingredients faced several operational challenges, including:
- Production downtime at the Magic Valley facility, impacting overall output.
- Higher costs associated with equipment upgrades and maintenance.
- Fluctuating commodity prices affecting profit margins.
Future Outlook
Looking ahead, Alto Ingredients aims to enhance its operational efficiency and product quality while navigating the complexities of the market environment. The company is focused on securing additional capital for ongoing projects, particularly in sustainability initiatives.
How Alto Ingredients, Inc. (ALTO) Works
Company Overview
Alto Ingredients, Inc. operates primarily in the production of specialty alcohols and essential ingredients derived from agricultural commodities. The company’s operations are divided into several segments: Pekin Campus, Western Production, and Marketing and Distribution.
Financial Performance
For the three months ended September 30, 2024, Alto reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Net Sales | $251,814,000 | $318,127,000 | $(66,313,000) | (20.8)% |
| Cost of Goods Sold | $245,854,000 | $313,966,000 | $(68,112,000) | (21.7)% |
| Gross Profit | $5,960,000 | $4,161,000 | $1,799,000 | 43.2% |
| Gross Profit Margin | 2.4% | 1.3% | N/A | N/A |
Segment Performance
The performance across different segments for the three months ended September 30, 2024 is summarized below:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Pekin Campus | $147,997,000 | $180,551,000 | $(32,554,000) | (18.0)% |
| Western Production | $46,811,000 | $75,037,000 | $(28,226,000) | (37.6)% |
| Marketing and Distribution | $57,464,000 | $62,271,000 | $(4,807,000) | (7.7)% |
Production Volume
Alto’s production volume for the three months ended September 30, 2024 is detailed below:
| Product | Volume Sold (Gallons) | Average Sales Price per Gallon |
|---|---|---|
| Specialty Alcohols | 52.8 million | $2.02 |
| Essential Ingredients | 236,600 tons | $174.21 |
Cost Structure
The cost structure for the three months ended September 30, 2024 is as follows:
| Cost Category | Amount ($) |
|---|---|
| Repairs and Maintenance | $8,100,000 |
| Depreciation and Amortization | $6,058,000 |
| Interest Expense | $1,867,000 |
Cash Flow and Liquidity
As of September 30, 2024, the company reported the following cash flow metrics:
| Cash Flow Category | Amount ($) |
|---|---|
| Cash from Operating Activities | $6,269,000 |
| Cash Used in Investing Activities | $(12,188,000) |
| Cash Used in Financing Activities | $(1,000,000) |
| Total Cash, Cash Equivalents and Restricted Cash | $38,494,000 |
Debt and Financing
Alto has a line of credit with Wells Fargo Bank amounting to $100 million, maturing on November 7, 2027. As of September 30, 2024, the company had $27.2 million available for borrowing under this credit facility.
Market Outlook
Alto anticipates low corn prices due to a strong harvest in 2024, which may result in increased demand for U.S. corn exports. However, the company expects higher transportation costs due to logistics constraints. The company is also working on a carbon capture and storage project to enhance sustainability.
Conclusion
Alto Ingredients, Inc. continues to navigate challenges in the specialty alcohol and essential ingredients markets, focusing on operational efficiencies and sustainability initiatives to enhance profitability.
How Alto Ingredients, Inc. (ALTO) Makes Money
Business Segments Overview
Alto Ingredients, Inc. operates primarily through three segments: the Pekin Campus, Western Production, and Marketing and Distribution. Each of these segments contributes differently to the company's overall revenue.
Pekin Campus Production Segment
The Pekin Campus is a significant revenue generator for Alto, focusing on the production of alcohol and essential ingredients. For the three months ended September 30, 2024, net sales from the Pekin Campus amounted to:
| Type | Net Sales (in thousands) | Change from 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Alcohol Sales | $106,459 | $(22,095) | (17)% |
| Essential Ingredient Sales | $41,217 | $(10,417) | (20)% |
| Total Sales | $147,997 | $(32,554) | (18)% |
For the nine months ended September 30, 2024, the segment reported:
| Type | Net Sales (in thousands) | Change from 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Alcohol Sales | $315,494 | $(73,135) | (19)% |
| Essential Ingredient Sales | $127,297 | $(41,923) | (25)% |
| Total Sales | $443,718 | $(115,251) | (21)% |
Western Production Segment
This segment primarily focuses on alcohol and essential ingredient production as well. For the three months ended September 30, 2024, net sales were:
| Type | Net Sales (in thousands) | Change from 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Alcohol Sales | $36,395 | $(20,764) | (36)% |
| Essential Ingredient Sales | $10,408 | $(7,433) | (42)% |
| Total Sales | $46,811 | $(28,197) | (37)% |
For the nine months ended September 30, 2024, the segment reported:
| Type | Net Sales (in thousands) | Change from 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Alcohol Sales | $74,084 | $(48,393) | (40)% |
| Essential Ingredient Sales | $24,184 | $(16,430) | (40)% |
| Total Sales | $98,146 | $(64,823) | (40)% |
Marketing and Distribution Segment
This segment focuses on the sales of alcohol, primarily third-party fuel-grade ethanol. For the three months ended September 30, 2024, net sales were:
| Type | Net Sales (in thousands) | Change from 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Alcohol Sales | $54,531 | $(4,274) | (7)% |
| Total Sales | $57,464 | $(4,807) | (7)% |
For the nine months ended September 30, 2024, the segment reported:
| Type | Net Sales (in thousands) | Change from 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Alcohol Sales | $179,118 | $(36,623) | (17)% |
| Total Sales | $187,289 | $(37,478) | (17)% |
Financial Performance Metrics
For the three months ended September 30, 2024, Alto Ingredients reported:
| Metric | Value (in thousands) |
|---|---|
| Net Sales | $251,814 |
| Cost of Goods Sold | $245,854 |
| Gross Profit | $5,960 |
| Gross Margin | 2.4% |
For the nine months ended September 30, 2024, the performance metrics were:
| Metric | Value (in thousands) |
|---|---|
| Net Sales | $728,911 |
| Cost of Goods Sold | $717,798 |
| Gross Profit | $11,113 |
| Gross Margin | 1.5% |
Challenges and Market Conditions
Alto Ingredients faced significant challenges in 2024, primarily due to:
- Lower average sales prices across all segments due to a decrease in commodity prices.
- Production downtime at the Magic Valley plant affecting output and sales.
- Increased operational costs, including repairs and maintenance.
The company reported a net loss of $2,441,000 for the three months ended September 30, 2024, compared to a loss of $3,489,000 for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $17,272,000.
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Resources:
- Alto Ingredients, Inc. (ALTO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alto Ingredients, Inc. (ALTO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alto Ingredients, Inc. (ALTO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.