Alto Ingredients, Inc. Reports Fourth Quarter and Year-end 2024 Results

Core Insights - Alto Ingredients, Inc. has implemented cost-saving initiatives expected to yield approximately $8 million annually starting in Q2 2025, including a 16% reduction in headcount and cold idling of the Magic Valley plant [2][3] - The company has made an accretive acquisition of a beverage-grade liquid CO2 processor, which is anticipated to have a payback period of less than two years and offers opportunities for cost synergies and expanded production [3] - Alto Ingredients is exploring various strategic options, including asset sales, mergers, or other transactions to enhance long-term value [3] Financial Performance - For Q4 2024, net sales were $236.3 million, down from $273.6 million in Q4 2023, while cost of goods sold decreased to $237.7 million from $276.2 million [6][16] - The gross loss for Q4 2024 was $1.4 million, an improvement from a gross loss of $2.5 million in Q4 2023 [6][16] - The net loss attributable to common stockholders for Q4 2024 was $42.0 million, or $0.57 per share, compared to a net loss of $19.3 million, or $0.26 per share in the same quarter of the previous year [6][17] Annual Results - For the full year 2024, net sales totaled $965.3 million, down from $1,222.9 million in 2023 [13] - The net loss attributable to common stockholders for 2024 was $60.3 million, or $0.82 per share, compared to a net loss of $29.3 million, or $0.40 per share in 2023 [13] - Adjusted EBITDA for 2024 was negative $8.5 million, a significant decline from positive $20.8 million in 2023 [13] Cash Position - As of December 31, 2024, cash and cash equivalents were $35.5 million, an increase from $30.0 million at the end of 2023 [5] - The company's borrowing availability was $88.1 million, which includes $23.1 million under the operating line of credit and $65.0 million under the term loan facility [5] Operational Metrics - Total renewable fuel gallons sold in Q4 2024 were 73.4 million, slightly up from 72.4 million in Q4 2023 [26] - Specialty alcohol gallons sold increased to 21.7 million in Q4 2024 from 20.1 million in Q4 2023 [26] - The average sales price per gallon for total sales decreased to $1.88 in Q4 2024 from $2.24 in Q4 2023 [26]