Alto Ingredients Inc. released second quarter financial results on Aug. 3, reporting that specialty alcohol accounted for more than one-third of the ethanol it sold during the period. Company officials also discussed plans to sell the company’s Stockton, California, plant.
Alto Ingredients sold its fuel ethanol plant in Madera, California, to Seaboard Energy in May. During an earnings call, Mike Kandris, CEO of Alto Ingredients, discussed efforts to sell its remaining California facility, a 60 MMgy facility located in Stockton.
“We have been working diligently on the sale of our fuel-grade ethanol facility in Stockton, California,” Kanrdis said, noting the company has interested parties that will either restart or repurpose the facility. “We will share more when appropriate,” he added.
Kandris also discussed progress Alto Ingredients is making with capital improvement projects, which aim to expand revenue and increase efficiencies and plant reliability. The yeast expansion and Pekin upgrade projects are scheduled to be complete in the third quarter and be fully operational before the end of the year, he said.
Moving into the future, Kandris said Alto Ingredients is exploring opportunities to enhance protein production at its dry mill facilities. The company is also actively engaged in discussions with various parties to develop a carbon capture program at its site in Pekin, Illinois.
Bryan McGregor, chief financial officer of Alto Ingredients, said net sales for the second quarter reached $298 million, up from $219 million reported for the previous quarter. He attributed the growth to an increase in specialty alcohols, fuel-grade ethanol, and third-party gallons sold, as well as an increase in the average price per gallon.
Of the 65 million gallons sold during the quarter, McGregor said specialty alcohols accounted for 24 million gallons, up 5 million gallons when compared to the first quarter.
Net sales for the second quarter were at $298.1 million, up from $212.1 million reported for the same period of last year. Gross profit was $15.2 million, down from $31.2 million. Operating income was $6.1 million, compared to $22.6 million. Income available to common stockholders was $8.1 million, or 11 cents per share, compared to $14.6 million, or 27 cents per share. Adjusted EBITDA was $17 million, compared to $28.8 million.