Alto Ingredients, a prominent producer and distributor of specialty alcohols and essential ingredients, disclosed its financial results for the third quarter (Q3) concluding on September 30, 2023. Following the announcement, the stock of Alto Ingredients experienced a significant downturn.
At the time of this publication, Alto Ingredients Inc stock (ALTO) has witnessed a decline.
Alto Ingredients Inc
Current Price: $2.04
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Alto Ingredients Q3 Results Three Months Ended September 30, 2023 Compared to 2022
In the three months ended September 30, 2023, net sales amounted to $318.1 million, marking a decrease from the previous year’s figure of $336.9 million. The cost of goods sold stood at $314.0 million, a decline from the $356.7 million recorded in the same period in 2022. Notably, the gross profit for Q3 2023 was $4.2 million, in contrast to a gross loss of $19.8 million in the previous year’s comparable period. Selling, general, and administrative expenses totaled $8.5 million, slightly higher than the $7.4 million reported in 2022. The operating loss for Q3 2023 was $4.3 million, a notable improvement from the operating loss of $27.2 million in the same period last year.
The net loss available to common stockholders, which includes a $2.8 million USDA cash grant, was $3.8 million, or $0.05 per share, compared to $28.4 million, or $0.39 per share, in 2022. Adjusted EBITDA, factoring in the aforementioned USDA cash grant, showed a positive $4.7 million, contrasting with the negative $20.6 million recorded in the previous year.
As of September 30, 2023, Alto Ingredients held cash and cash equivalents totaling $26.2 million, a decrease from the $36.5 million reported at the close of December 31, 2022. Additionally, the company’s borrowing availability included $53.4 million under its operating line of credit and $40 million under its term loan facility, with an option to request an additional $25 million under the facility.
Alto Ingredients Q3 Results Nine Months Ended September 30, 2023 Compared to 2022
For the nine months ending on September 30, 2023, Alto Ingredients reported net sales of $949.3 million, down from $1,007.2 million in the same period in 2022. The cost of goods sold for this period amounted to $931.1 million, compared to $1,013.4 million in the previous year. Gross profit for the nine-month period in 2023 was $18.2 million, a notable improvement from the gross loss of $6.2 million in 2022.
Selling, general, and administrative expenses for the nine months totaled $24.3 million, slightly higher than the $24.0 million reported in 2022. The operating loss for the nine months ending September 30, 2023, was $6.7 million, demonstrating a significant improvement from the operating loss of $30.3 million recorded in the same period last year. The net loss available to common stockholders, which includes a $2.8 million USDA cash grant, was $10.0 million, or $0.14 per share, compared to $9.5 million, including a $22.7 million USDA cash grant, or $0.13 per share, in 2022.
Adjusted EBITDA for the nine months, inclusive of the $2.8 million USDA cash grant, was $15.7 million, a rise from $13.7 million, including the aforementioned $22.7 million USDA cash grant in the previous year.
