Q1 2024 Alto Ingredients Inc Earnings Call Transcript
Key Points
- Alto Ingredients Inc (ALTO) reported an increase in sales of high-quality alcohol from their Pekin campus, contributing to improved gross profit and adjusted EBITDA year-over-year.
- The company successfully completed a biennial Pekin campus wet mill outage, which involved over 450 tasks aimed at maintenance and upgrades, enhancing future production reliability and rates.
- Alto Ingredients Inc (ALTO) has contracted approximately 93 million gallons of specialty alcohol at a premium, which is expected to positively impact future revenues.
- The company's carbon capture and storage (CCS) initiative is progressing, with significant developments like the completion of a 2D seismic geologic survey and advancements in EPA Class VI permit applications.
- Alto Ingredients Inc (ALTO) generated $1.4 million in positive cash flow from operations in Q1 2024 and maintained a healthy cash balance and borrowing availability to support ongoing operations and investments.
- Alto Ingredients Inc (ALTO) experienced a decrease in net sales in Q1 2024 compared to Q1 2023, primarily due to lower market prices.
- The company recognized an incremental loss of $4.9 million related to natural gas hedging activities due to historically low market prices.
- Extreme cold weather in January impacted the Pekin campus operations, leading to increased costs and reduced production rates.
- Issues at the Columbia facility with centrifuges led to production hindrances, although upgrades are expected to mitigate future risks.
- Repairs and maintenance expenses were higher in Q1 2024 by $1 million compared to the previous year, reflecting the timing of accelerated costs.
Good day, and welcome to the Alto Ingredients, Inc. First Quarter 2024 Financial Results Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Kirsten Chapman of LHA Investor. Please go ahead.
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Thank you, Cailey, and thank you all for joining us today for the Alta Ingredients First Quarter 2024 Results Conference Call. On the call today are President and CEO, Bryon McGregor; and CFO, Rob Olander. Alto Ingredients issued a press release after market closed today, providing details of the company's financial results. The company has also prepared a presentation for today's call that is available on the company's website at altoingredients.com. A telephone replay of today's call will be made available through May 13, the details of which are included in today's press release. A webcast replay will also be available at Alto Ingredients website. Please note that the
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