Alto Ingredients Inc (ALTO) Reports Q3 2023 Earnings, Highlights Operational Challenges
Alto Ingredients Inc (NASDAQ:ALTO) reported Q3 2023 financial results on November 6, 2023
The company's net sales for Q3 2023 were $318.1 million, compared to $336.9 million in Q3 2022
Net loss for the quarter was $3.5 million, compared to a net loss of $28 million in the same period last year
Despite operational challenges, the company delivered positive Adjusted EBITDA and positive operating cash flow for the quarter
Alto Ingredients Inc (NASDAQ:ALTO), a leading producer and distributor of specialty alcohols and essential ingredients, released its financial results for the quarter ended September 30, 2023, on November 6, 2023. The company's transition to provide high margin, differentiated specialty alcohols and essential ingredients has significantly improved its financial profile over the past three years.
Financial Performance and Challenges
Despite operational and commodity market challenges, the company's Q3 2023 results reflect stronger ethanol crush margins partially offset by the impact of unusually high unscheduled downtime. This downtime lowered anticipated production volumes and shifted the mix towards lower margin products. However, the company delivered positive Adjusted EBITDA and positive operating cash flow for the quarter.
Financial Results
For the quarter ended September 30, 2023, Alto Ingredients Inc (NASDAQ:ALTO) reported net sales of $318.1 million, compared to $336.9 million in the same period last year. The net loss for the quarter was $3.5 million, a significant improvement from a net loss of $28 million in Q3 2022. Cash and cash equivalents were $26.2 million at the end of the quarter, compared to $36.5 million at the end of 2022.
Company's Outlook
Despite the challenges, the company remains committed to creating and pursuing opportunities that target long-term profitability and maximize shareholder value. The preliminary findings from the primary yeast front-end engineering design study are promising, yet both revenue upside and projected installation costs increased significantly, reflecting inflationary pressures and supply chain constraints. Based on these findings, the company has extended its EBITDA expansion goals by six to twelve months.
Key Financial Tables
The company's gross profit for Q3 2023 was $4.2 million, compared to a gross loss of $19.8 million in Q3 2022. Selling, general and administrative expenses were $8.5 million, compared to $7.4 million in the same period last year. The company's total current assets were $168.2 million, compared to $199.1 million at the end of 2022.
Conclusion
Despite facing operational and commodity market challenges, Alto Ingredients Inc (NASDAQ:ALTO) has managed to deliver positive Adjusted EBITDA and positive operating cash flow for Q3 2023. The company's strategic realignment and focus on high margin, differentiated specialty alcohols and essential ingredients have significantly improved its financial profile over the past three years. Going forward, the company remains committed to maximizing shareholder value and long-term profitability.
Explore the complete 8-K earnings release (here) from Alto Ingredients Inc for further details.
This article first appeared on GuruFocus.
