Alto Ingredients, Inc. Files 10-Q for Period Ended March 31, 2024

TL;DR

<b>Alto Ingredients, Inc. has filed its Q1 2024 10-Q report, detailing its financial performance and operational status.</b>

AI Summary

Alto Ingredients, Inc. (ALTO) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Alto Ingredients, Inc. filed its quarterly report (10-Q) for the period ended March 31, 2024. The company is registered with the SEC under Central Index Key 0000778164. Its common stock trades under the symbol ALTO on The Nasdaq Stock Market LLC. Alto Ingredients, Inc. was formerly known as Pacific Ethanol, Inc. The company's principal executive offices are located in Pekin, Illinois.

Why It Matters

For investors and stakeholders tracking Alto Ingredients, Inc., this filing contains several important signals. This filing provides investors with the latest financial data and operational insights for Alto Ingredients, Inc., crucial for evaluating the company's current standing and future prospects. As an accelerated filer, Alto Ingredients, Inc. is subject to specific SEC reporting requirements, ensuring a certain level of transparency and compliance for its shareholders.

Risk Assessment

Risk Level: medium — Alto Ingredients, Inc. shows moderate risk based on this filing. The company's status as an accelerated filer suggests it has met certain size and filing history requirements, but the lack of 'large accelerated filer' status may indicate it is not yet a top-tier public company, implying a medium level of risk.

Analyst Insight

Review the full 10-Q filing for detailed financial statements, management discussion, and risk factors to assess Alto Ingredients, Inc.'s performance and outlook.

Key Numbers

• 20240331 — Period End Date (Quarterly report period)
• 000-21467 — Commission File Number (SEC filing identifier)
• 0000778164 — Central Index Key (Registrant identifier)
• 412170618 — IRS Number (Employer Identification Number)

Key Players & Entities

• Alto Ingredients, Inc. (company) — Registrant name
• 0000778164 (other) — Central Index Key
• 2860 (other) — Standard Industrial Classification
• 412170618 (other) — IRS Number
• DE (other) — State of Incorporation
• 1231 (other) — Fiscal Year End
• 20240331 (date) — Conformed Period of Report
• ALTO (ticker) — Trading Symbol

FAQ

Industry Context

Alto Ingredients, Inc. operates in the industrial organic chemicals sector, focusing on the production of specialty alcohols and essential ingredients.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934, including the filing of quarterly reports (10-Q).

What Investors Should Do

1. Analyze the financial statements within the 10-Q for revenue, expenses, and profitability trends.
2. Review the Management's Discussion and Analysis section for insights into operational performance and strategic initiatives.
3. Examine any disclosed risk factors to understand potential challenges facing the company.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the quarter ended March 31, 2024, following previous filings for the fiscal year 2023.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value ALTO The Nasdaq Stock Market

Filing Documents

• ea0205290-10q_altoingred.htm (10-Q) — 847KB
• ea020529001ex10-1_altoingred.htm (EX-10.1) — 17KB
• ea020529001ex10-3_altoingred.htm (EX-10.3) — 64KB
• ea020529001ex31-1_altoingred.htm (EX-31.1) — 9KB
• ea020529001ex31-2_altoingred.htm (EX-31.2) — 9KB
• ea020529001ex32-1_altoingred.htm (EX-32.1) — 6KB
• 0001213900-24-040876.txt (&nbsp;) — 4317KB
• alto-20240331.xsd (EX-101.SCH) — 37KB
• alto-20240331_cal.xml (EX-101.CAL) — 32KB
• alto-20240331_def.xml (EX-101.DEF) — 170KB
• alto-20240331_lab.xml (EX-101.LAB) — 300KB
• alto-20240331_pre.xml (EX-101.PRE) — 167KB
• ea0205290-10q_altoingred_htm.xml (XML) — 464KB

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS. Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 1 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited) 3 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 (unaudited) 5

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 6 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 14 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. 26 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES. 27 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. 29 ITEM 1A. RISK FACTORS. 29 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. 42 ITEM 3. DEFAULTS UPON SENIOR SECURITIES. 42 ITEM 4. MINE SAFETY DISCLOSURES. 42 ITEM 5. OTHER INFORMATION. 42 ITEM 6. EXHIBITS. 43

SIGNATURES

SIGNATURES 44 -i- PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. ALTO INGREDIENTS, INC. CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, 2024 2023 (unaudited) * ASSETS Current Assets: Cash and cash equivalents $ 29,310 $ 30,014 Restricted cash 12,762 15,466 Accounts receivable (net of allowance for credit losses of $ 58 and $ 85 , respectively) 58,081 58,729 Inventories 42,610 52,611 Derivative instruments 52 2,412 Other current assets 8,028 9,538 Total current assets 150,843 168,770 Property and equipment, net 248,901 248,748 Other Assets: Right of use operating lease assets, net 21,506 22,597 Intangible assets, net 8,351 8,498 Other assets 5,034 5,628 Total other assets 34,891 36,723 Total Assets $ 434,635 $ 454,241 * Amounts derived from the audited financial statements for the year ended December 31, 2023. See accompanying notes to consolidated financial statements. -1- ALTO INGREDIENTS, INC. CONSOLIDATED BALANCE SHEETS (CONTINUED) (in thousands, except par value) March 31, December 31, 2024 2023 (unaudited) * LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 18,508 $ 20,752 Accrued liabilities 18,166 20,205 Current portion – operating leases 4,486 4,333 Derivative instruments 8,299 13,849 Other current liabilities 5,595 6,149 Total current liabilities 55,054 65,288 Long-term debt 84,069 82,097 Operating leases, net of current portion 17,895 19,029 Other liabilities 8,958 8,270 Total Liabilities 165,976 174,684 Commitments and Contingencies (Note 6) Stockholders' Equity: Preferred stock, $ 0.001 par value; 10,000 shares authorized; Series A: 1,684 shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023; Series B: 1,581 shares authorized; 927 shares issued and outstanding as of March 31, 2024 and December 31, 2023; liquidation preference of $ 18,075 as of March 31, 2024 1 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION AND BASIS OF PRESENTATION. Organization and Business – The consolidated financial statements include, for all periods presented, the accounts of Alto Ingredients, Inc., a Delaware corporation, and its direct and indirect wholly-owned subsidiaries (collectively, the "Company"), including Kinergy Marketing LLC, an Oregon limited liability company ("Kinergy"), Alto Nutrients, LLC, a California limited liability company, Eagle Alcohol Company, LLC, a Delaware limited liability company ("Eagle Alcohol"), Alto Op Co., a Delaware corporation, Alto Pekin, LLC, a Delaware limited liability company, and Alto ICP, LLC, a Delaware limited liability company, and the Company's production facilities in Oregon and Idaho. The Company produces and distributes renewable fuel, essential ingredients and specialty alcohols. The Company also specializes in purchase and break bulk distribution of specialty alcohols produced by the Company and third parties. The Company's production facilities in Pekin, Illinois are located in the heart of the Corn Belt. The Company's two production facilities in Oregon and Idaho are located in close proximity to both feed and fuel-grade ethanol customers. The Company has a combined alcohol production capacity of 350 million gallons per year and produces, on an annualized basis, over 1.6 million tons of essential ingredients, such as dried yeast, corn protein meal, corn protein feed, corn germ, and distillers grains and liquid feed used in commercial animal feed and pet foods. In addition, the Company markets and distributes renewable fuel produced by third parties. The Company focuses on five key markets: Health, Home & Beauty ; Food & Beverage ; Industry & Agriculture; Essential Ingredients ; and Renewable Fuels . Products for the Health, Home & Beauty market include specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants and cleaners.

View Full Filing

View this 10-Q filing on SEC EDGAR