Alto Ingredients, Inc. Reports Third Quarter 2024 Results

Core Insights - Alto Ingredients, Inc. reported its Q3 2024 financial results, highlighting a significant increase in gross profit and a new CO2 Transportation and Sequestration Agreement with Vault 44.01 aimed at reducing carbon emissions [1][2][3]. Financial Performance - For Q3 2024, net sales were $251.8 million, down from$318.1 million in Q3 2023 [4]. - Cost of goods sold decreased to $245.9 million from$314.0 million year-over-year [4]. - Gross profit improved over 40% year-over-year to $6.0 million, despite market fluctuations [2][4]. - Selling, general and administrative expenses were reduced to$7.5 million from $8.5 million [4]. - The net loss available to common stockholders was$2.8 million, or $0.04 per share, compared to a loss of$3.8 million, or $0.05 per share in the prior year [4]. Production and Sales Metrics - Specialty alcohol sales increased by 4 million gallons year-over-year, contributing positively to the sales mix [2]. - Total renewable fuel gallons sold in Q3 2024 were 74.3 million, down from 78.5 million in Q3 2023 [17]. - The average sales price per gallon for the Pekin campus was$2.02, compared to $2.48 in the previous year [17]. Cash and Liquidity - Cash and cash equivalents at September 30, 2024, were$33.6 million, up from $30.0 million at the end of 2023 [5]. - The company's borrowing availability was$92.2 million, including $27.2 million under the operating line of credit and$65.0 million under the term loan facility [5]. Strategic Initiatives - The company is focused on improving profitability and reducing its carbon footprint through the new CO2 Transportation and Sequestration Agreement [3][2]. - The agreement aims to transport and sequester carbon emissions from the Pekin campus into the Mt. Simon sandstone formation in Illinois [1][3].