ALTO - Earnings call transcript Q4 2023

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Operator

Good afternoon, and welcome to the Alto Ingredients Fourth Quarter and Year End 2023 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, LHA Investor Relations, a division of Alliance Advisors. Please go ahead.

Kirsten Chapman

Thank you, Gary, and thank you all for joining us today for the Alto Ingredients Fourth Quarter and Year End 2023 Results Conference Call.

are CEO, today CFO, McGregor; call Olander. Rob the President Bryon and and On

a after available details The press today, issued website. the today's of Ingredients webcast Alto release in included available today's is of release. prepared presentation on company's call also that providing A telephone website at the the financial will available are has results. altoingredients.com. company company's a for details closed replay A Ingredients through which be will at also be replay call today's March Alto XX, the market press

information Please note that only this the XX. on March of as today, speaks call

You any involve could results on to, of Alto to Ingredients' to this limited cause assumes statements. differences update not the are differ that disclosed are other time and the previously be Alto with of obligation replay. longer Please states no presentation include, available as Except refer considerations statements Slide time that applicable X online, SEC. by company's law, but and to the could in uncertainties. of statements. or factors from time-sensitive contribute Factors risks filings such actual some in advised Ingredients and required statement comments information which no and of to the may events, harbor from presentation time accurate future at those materially company forward-looking that any forward-looking The the the risks constitute that safe

believes depreciation reconciling will investors company's was loss the or defines Management the extinguishment as and today's debt, The performance measures periods monitor adjusted the loss prepared In included final measures information, performance losses, a press the release. of of consolidated uses derivative on be income impairments, income income, asset measures assist table and these acquisition-related interest operations reported. gains remarks, expenses net amortization. management's company's for review non-GAAP assessing unaudited for company referenced. and To non-GAAP non-GAAP and before will unrealized provision taxes, EBITDA in of to support interest expense, in these

today's will call strategic plan On Bryon my and comment of Bryon and open wrap then on review Bryon activities. Q&A. will Bryon. financial up pleasure a our It results, is McGregor. the provide call, go Rob introduce for to Please now ahead, our will

Bryon McGregor

you, Kirsten. today. us everyone, you, joining for Thank Thank

During produce to long the strategies and rates XXXX, expand a facilities in of the utilization are price These our the impact capacity we to transformation significant in negative ingredients to made term. highest-grade margins fluctuations. beverage We essential beginning variety our and investments our alcohol continued industry. commodity improve of mitigate

We in XXXX. and greater $XX quarter million Although over crush in volatility full outperformed both the those million generated year, XXXX, significantly improvement gross in the XXXX. same $XX margins ethanol profit for periods our year half of exhibited results XXXX an fourth second of

also We of approximately million EBITDA over of prior improvement year. an million $XX $XX for XXXX, reported the positive adjusted

design our campus, XXXX, CCS Section our and current recent priority. top energy CCS profiles, or project from we partners front-end our XXQ exciting and capture the Reduction feed coupled initiatives findings have updated generated on QX project to provides the capture unique and associated Under dynamics, COX interest project or market and we Act, in upgrades, biogenic with economics. of continue is opportunity storage, strategic Inflation a store compelling Pekin to our evaluate our engineering carbon we In and potential studies, from strategic our based return

conversion primary development as future for continue and potential and Given to yeast of time, opportunities this significant development amount biogas projects. decided resources resources to further of we complete necessary financial our project, to have personnel permit. These CCS our be pause

overall system to outreach, procure power include progress recent compression. by application financing, and CCS. alignment negotiations, EPA vendor on install aspects design, encouraged and and preparation requirements are community We equipment many These schedule of

announced In an of our letter are develop that signed CCS agreements project. fact, to definitive today, we we the exclusive with have we nearing nonbinding execution Vault, of and intent

The direct capture campus. and the the transporting Pekin surrounding in emissions Alto emissions COX from the to production communities. permanently facilities reduce and involves is close equipment generated project ethanol our intent to in proximity deep installing the reservoir COX geologic and safely value to at to underground secure process a substantially provide storing Vault our located The

provider either energy In X would and addition to energy a pursuing increase capacity Pekin current lowering that operate our greatly estimated. highly CCS, while project our long-term utility may or light and capital Both costs more would regarded attractive result options independent our options own to our with reduce we energy company carbon our campus, are at build, accretive requirements in energy CCS originally options facilities. on-site These being energy than footprint. capital

manufacturing process equipment of Beyond the installation reduce have financial overall its we extended to and longer better months, additional from to our risk. and use XX control, anticipated. to XX time positive our our grown than align schedules EPA make originally approval project this the CCS times and application Accordingly, has intend various

shareholders, Western the Finally, continue our leverage profitability, especially opportunities intend at current assets, as and facilities. strengths these of to applications. locations we equipment and investing our distinctive improve We increase in to evaluate to path and to in deliver new our highest our portfolio by the we return margins, assess

one both we so, the possible may consider disposition also these or doing facilities. of of While

value-enhanced commitment to optimize past effectively in have the to Nebraska value. years of and As make we remain steadfast over stakeholder demonstrated appropriate long-term X we as California our with the decisions sale our facilities,

our February high-efficiency campus. completed we we that that I'll of larger XX have initiatives installation progress in numerous months. or Over X review our are years, over past past XXXX, at some the upgrades. the a completed boiler the completed new Pekin we of In

significantly this increase and our annualized needs We million. to incremental costs. estimate $X boilers, QX. end of by and utilization full energy inefficient EBITDA will expect reduce reach X our replaces will operating boiler high-pressure the by This We

the reduce our flexibility achieved related in goal storage our silo of became lowering quarter increasing costs Pekin's XXXX, of harsh days annualized doubling new a Additionally, quick capacity. to weather and or fully has exceeded of of We shipments of delivering second $X project grain EBITDA already incremental and to million. corn conditions. operational, This during corn premiums target extended last-minute our and weekends

the availability fluctuations We dynamics compression chain continue in new trends. XX product margin the alcohol of growth higher-quality attracted and and our consumer has many and to part for past demand our ability months. supply. market important higher combined to supply in specialty producers, for considering has been expand XXXX, XXXX into margin over having increasing very and with This alcohol offerings In resulted differentiate

became significant neutral XXX more produce low grade spot in of our These the grain new alcohols of moisture XXX market products and proof anticipation sales gross and these leverage our began highly by campus. which We Pekin that spirits, changing sold In unique at in received in proof strategic margin available investments market, XXXX. XXXX, the well capabilities were we differentiated developed a for customers conditions year. bolstering generating early beverage actively our the to our

and XX date, average for per additional of million gallons capacity alcohol have we take To high-quality gallon, $X.XX price, approximately of of contracted renewable with spot to price advantage fuel XXXX, premium to sales. fixed

working to engaged harvest corn modifications in-depth the Magic a QX including Valley challenges. equipment design manufacturers higher-margin pursuit third-party and extensive an independent our our engineers in They conduct at high-protein we achieve consistency. technology, with oil our to of plan, rate, expand our quality plant, system products In intended high-protein production vendor, and the analysis and formulated the to

temporarily the have other production to direct restart complete, our the operation of our costs than the QX We to at Valley margins equipment. equipment. the upgraded upgrades the dry and associated hot mid-January The roll idle to and negative crush additional Technology margins Magic influence the is Harvesting and to minimize mills. regional with to high-protein facility installation their the the out losses intend related will at are in improved. timing system decided decision system We of and facility crush more expedite design the once

Magic feed are to to supply our the requirements. as interim, with operating a facility the we fuel renewable Valley customers also In working meet local and the distributor customers. We're service terminal feed

I the review our I'll to call sustainability Rob, efforts. over Before turn

As published risk our we to for sustainable good implementing business, advancements are practices In our dedicated It sustainability sourcing are planet. and sustainability, company, our a that summary. December, best our first in reviews we our management. vision renewable responsible stakeholders for and and strategy

product environmental, We to to on quality and innovative improvements our continuous carbon are integrating efficiency safety, contribute by diversification practices facilities footprint. optimal a and ensure health lower at focused in

charitable the We are community through food focusing back giving drives organizations. to on and supporting also

customers. our X the across efforts Our agencies, all important sustainability scores improved which rating is to board our with

Looking additional obtain awards. verifications, ahead, and transportation safety we are working greenhouse gas third-party to earning improved EcoVadis

to call our the Rob turn CFO, Olander. I'll Now

Robert Olander

year and XXXX, greater financial quarter bottom I'll review despite contributed fluctuations Bryon. Thanks, full our full improved stronger lower line enjoyed of quarter commodity results XXXX year rates. volatile plant the the and the price in initiatives results and detail. fourth margins for efficiency and gross to We for fourth utilization

XXXX, in back margins fuel were strong. Looking over and QX QX, renewable

advantage back of production to fuel So margins. of take portion shifted a the renewable to higher we our

impacted volatility we dropping to in As the peaking Bryon the negative contracting. willing sell did in and second to mid-XXs margins at and sell, sales noted, which were in we ethanol of slightly in extreme volume the with fluctuations September These exhibited crush XXXX, third-party price the half gallons the December.

XXX and compared in and XXXX, for and margins associated costs the the Valley $X.X compared XXX million the of we with XXXX, $XXX XXXX. XXXX million gallons Valley $XXX $X.X QX XXXX, in to Magic navigating were item in to Net gallons crush XXXX billion the periods year aforementioned facility full in In million the for the billion in sales Magic million challenges sold installation. same weaker with the our QX reflecting primarily opportunity QX

compared a XXXX, improving million, QX to $XX loss QX In of we XXXX. million $X reported gross

of year the million, to full profit XXXX. $XX $XX XXXX, of compared generated million increasing gross For we

compared was During million maintenance to XXXX. to million QX, XXXX. brought million million QX for XXXX maintenance expense This $XX $X.X total to and $XX.X for repairs and compared $X.X repairs

and wet greater differentiation campus driving. capabilities use production our typical Our significant at distillery facility than and capabilities mill Pekin provides the

and That smaller and efficient and upgrades To outages years. sustainable maintain integral capital ongoing maintenance and these approximately facilities conduct assets. repairs said, our needed reliable the of normally the to consistent performance concerns modernization scheduled operations, every and and larger address of as we nature require X longevity, age

mill our our wet large last originally call, XXXX. scheduled Pekin on noted As campus outage for August we

April crush supply margins until motivated XXXX. favorable postpone to However, downtime the and us sufficient corn

a to negative XXXX, our for on charge fixed recognized indeed of slightly heading QX million into margins related continuing crush gain in $X.X fuel or thus renewable foreign far This in a QX, and market cost we lower purchase commitments. year-end XXXX. With compares $XXX,XXX QX and of inventories

QX, adjustments to charge goodwill we market charge annual an $X acquisition recorded impairment to of reflects of Eagle million Alcohol to current XXXX. valuation. premiums asset and revisions During the our with associated in goodwill projections our required This in

our synergies, our of transportation improving portion a we additional Eagle third-party trucking costs our Incorporating to Alcohol's entire margins. logistical expertise and replacing platform reducing intend leverage across services,

are new the territory geographies expanding Southern such as in into distribution We also process of our California.

$X EBITDA improving positive XXXX. million compared For was QX of XXXX, QX to adjusted $XX million,

improvement For EBITDA grants. compared year $XX cash significant company This the million year-over-year to million, considering up USDA XXXX, $XX XXXX, that particularly million in more full in received is the $XX positive was adjusted a XXXX.

$XX total XXXX, loan cash $XX and operations our to of support investment million December XX, our initiatives. capital As was balance our borrowing business availability was and million

from $XX Our million, confidence of subject loan lenders. line We borrowing our million $XX term and our appreciate under our under facility. credit to the and includes support operating conditions certain continued availability

plan's the $XX planned We for in million CapEx the to million $X inception. repurchased on and bringing In $XX the our compared operations period from total since $XX $X to up we bringing XXXX. XXX,XXX to invested million for was year-end shares common million flow total $XX QX, million million, stock $X annual Cash QX, of to the for QX, million. $XX to same bringing repurchases total million

reporting our performance. in improvement well as continual our to as committed are We

when to management to of how period evaluating losses to our to impact the transparency First, EBITDA. losses goods sales of derivative mark-to-market reconciliations purchases have and positions performance, Alto's and calculating reporting open our exclude added adjustments physical conform and are increase Unrealized to historical instruments adjusted noncash margins unrealized derivative part operating derivative we gains and on as sold. is will recorded are future noncash related of Updated that cost of website. been gains

metrics Data and Interactive we and unaudited section included flakes of Financial The sales, Next, today's quarterly production corn metrics seen the our have website. ]. the [ as new in press for segmented updated release in data

consider of the will metrics additional we frequency both that. providing and forward, Going

we them individually, into capital in Finally, as X will aggregate, we our categories. not projects discuss place

includes projects. in First, completed operation

that expected for resources Second, goals. evaluation with near-term under attractive returns opportunities includes as strategic to our opportunities development support well greatest as the high that have future priority return And initiatives includes operational as third, be permit. assessed potential

as Now alcohol freeze of experienced of in impacted production better looking crush result negatively our at conditions. XXXX. Midwest per approximately ] a beginning of The both operations compared significant end X a river Vault for response to to January this million in year feed seasonality ahead margin logistics by the gallons at and timely are typical This efforts, the time Pekin shift same over $X.XX lower-margin improve the frozen XXXX. year. [ Despite reduced preparations products we trends February Further, the and margins campus. approximately to said, and of last January, and the recovery are

our QX. discussed, facility, Valley will comparison should higher for idle, gallons As be third-party to Bryon in be the total due to ethanol sold QX but Alto's hot Magic lower, production

that design targets April. outage in the is high maintenance well note modifications XXXX. It is repairs achieving our mill and in confidence have important our extensive and corn We also wet for scheduled protein biannual underway and to

to approximately Pekin approximately million. lower take cost We days, expect it and in which QX campus XX will production $X of

the of biannual maintenance For $XX to the XXXX, to $XX bringing to including track we run year expense the total, full rate typical outage our repairs million, expect million. and approximately

Regarding stronger biannual ongoing outages CapEx, $XX much paybacks. and rates. improvements upgrades, and These approximately increased projects to capital equipment production as future. and process historically plan invest on improvements position we efforts short-term run for million reliability maintenance The a Alto

more effects positive into benefit particular these robust will we in summer XXXX, months. head expect We as

call turn I'll to that, the back With Bryon.

Bryon McGregor

the for Currently, XXXX overall Thank is outlook Rob. you, favorable.

summer inventories, demand that domestic few next the ethanol regulatory expected positive prices, corn margin -- create an good through improvements support months crush should gas year. blending corn most and environment have We These U.S. through globally. growth for of the spreads and ethanol natural over in U.S. for low the the sugar higher prices, and -- produce factors results most

Although on are remain profitable markets we capitalize financially most and prudent and seek and dynamic, opportunities. the agile to promising

long-term growth our and confident about prospects enthusiastic in are We our strategy.

ROTH be week, please see the we're next to will to there. and open I note call we I Before questions, Operator, you hope that ready at Annual begin. the Conference to

Operator

with question Instructions] [Operator Our Wainwright. H.C. first today is from Amit Dayal

Amit Dayal

respect high overcome challenges to the begin these with at just oil are cetera, et improve Or corn Bryon, with looking -- Valley? are just Valley, to any looking that yields? to and the protein, issues there other you Magic are to Magic just you're

Bryon McGregor

-- wasn't Magic that not faced challenge at the surprising that Amit, we that at this we given faced bolt-on Valley system. have is a

at equipment additional brought consistent it able product as capacity be maximum and found to the produce materials, times to in qualities. at difficult we So we and

some expand to we and be are determined to the produce be work of to within tolerances need needed of in able flexibility that These able that capacity move systems the beyond the to dynamic need some be able and system. produce. be to to evaluated we make enhancements as to we have certain actually to the we to order capacities to able products improvements the equipment to that, overall So better

be we it best those region, So were decided margins, needed in the looked actually the do particularly as to we I taking what advantage in what say, then the would we of -- -- be at and produce would of that -- weak and and Idaho facility of upgrades the expediting much back of and it bring sustainable [indiscernible] or system to -- in to then higher-quality able to the online and product. the up be highlighting the QX able repair company more a

Amit Dayal

With looks challenging, of more like but little of still sort it bit respect going looks going it from your to commentary, are 'XX crush optimistic the year. forward, on a your view the XQ just about you margins be to rest like is

to that sentiment? see what Just trying is driving

Bryon McGregor

of that I to U.S. and contribute ethanol there's compelling. U.S. or And factors price other export that products would growing what that, mentioned with to number which compete we be not really only expect think given a value the internationally, a macro we as market is I

are for seen bode as exports lot well capacity into questions on we've request to and those corn also So which and seen a even and well, We're lines. carryout prices, We've good strong information more sugar demand Those lower along XXXX prices with for just seeing supply. what production year good of low should contributing things gas and pricing a and contributing -- all couple to we would Brazil. corn factors, a year. natural be these of should but what prices, good to be expect

Robert Olander

I'll off January positive, But just Amit, I'll that. gallon starting add we last slightly -- negative, than about time year. been February for turning higher to per and has breakeven, improving we date just are to recently. did margins crush QX this year the $X.XX

as So well. that's reassuring

Bryon McGregor

I'd of And to the volume having should year then we again, that thesis. fixed is, this volume thing add last do that in the price able also were support that help -- maybe we contracted amount

Amit Dayal

it. Got

forward? obviously, we the But for may little any revenues Was any bit at moving last big be to? bit should in now? required? me for this little there a into I playing looking play Just significant milestone for CCS, that mean, the project probably to like that background all milestone a come respect investments is what's one Or are forward away. with next this

Bryon McGregor

the filing fairly would as permit. be next be major with would be probably of then Those Vault milestones. would VI -- other the one one Class be agreements definitive ones identify the would one, the Probably and the would I

Operator

Stine Eric from is with Craig-Hallum. question next The

Eric Stine

here kind you first piece. about more talk kind math, first, brought projects we I maybe the as of I the of just seems announced. million alcohol I you'll do already way number to Can to have that that EBITDA carbon stand? to storage XX and these level maybe now But guess think actually just you where just set things capital about can mid-'XX. like prioritize transition understand maybe maybe If of been you talking XX it the by that. talked talking prioritizing capture you it a have you I make versus the you step just now about most confirm about start incremental that good is them. And how on and $XX to like of and plus the I'd specialty through like how

Bryon McGregor

So I think fair, Eric. that's

think -- I yes, close map. that's enough

some with means to to to lot have level the to feed the I ago, the there But was that like, investors we studies, could as think were this years when bear. time indication that information to if unique to what work and response future indicate, like there provide understand and to in only -- far And right? to would to had And would we shareholders what bring -- what well. we able it growth what -- in in do profitability I still we many and the started as requests be investors were from making provide to is so. there years of as very in setting wanted look able we regards an that to and ago, details you a be was that would growth projects interesting opportunities sure getting over into department still but not well as X profile though, a providing those we also to try X.X look in done

risen that lot resources of to to thought have we well there And that projects opportunities projects we we those There our to as So the are company. give expensive and change needed those certain would. very that going come compelling we that -- resources on given will the as projects, unique bring But have are forward. They're those top. can a very over to then that they have more what clearly in we work still and than others. as others number through priority

Eric Stine

mean the I that's an understand. just has changed carbon somewhat since came then on those I a environment totally guess capture understatement. capital question. No, Yes. previous out, the Maybe follow-up

guess about been annual be would that first? be to you deck, this adjusted you've your your talking portion, to time, -- your I'd case, be some it and would in confirm you're confirm. I EBITDA, for talking want targeting some partner, where When that would splitting but So right, just I like you're I with in about this mean Vault.

Bryon McGregor

correct. And and would fees X that paid certain that with Alto. Vault services this. would be the That's -- there'd the be would Yes, for be be arrangement

For and transportation the pipeline, that product. for of the sequestration

Eric Stine

view decide that different on potentially the route I if to then some lean the this mean, should for this for go we needs? -- would is a that others And of I and number a as -- your capital you light is energy number

Bryon McGregor

No. their on would own Those stand actually as well.

actually So prepared -- and increase remarks, actually, a in I as there's well, my potential is number. over a we there wasn't or see that that think, material comments Rob, mentioned to his actually would as in potential

as in incremental that annualized natural and previously, for to recall gas the for out we value assign cogeneration. You'll a EBITDA broke we used

indicative able for and a they're the sequestration still operations we compelling to being -- -- to to going yet, foundational on foundation amount provided and While sufficiently to economics very have forward. that good on carbon are an number those build bring

Eric Stine

there, last you capital lay are now this. you track? exact least needs don't getting if in near-term just maybe and and one they without want of capital I an to Maybe I for did Maybe were when Magic needs right to did each much on pretty needs the gave you your focusing I haircut at on sense, out project these carbon know attribute term capture with me. significant -- mean idea out, specific near Valley have doesn't just number, that make goals you that don't I but how mean an the capital but for

Bryon McGregor

Sure.

but they on with there partners be to working make associated that the intent, more certainly capital So our costs some Eric, changes with to is Valley, any our -- the Magic we've as in that of spend may had incremental again, date.

able to -- expect dry other With the They regards we're be mills. roll how we're determine that going costs and we Valley. to extent one we do hasn't going on much. Magic what those been comparable different do Magic to would at successful on we've to Each to to be is the to out have Valley that to on would changed but what slightly depending needs,

about power site, to With the if regards talking natural you we're and -- cost of think replacing about gas $XXX Pekin at million. the over well

and as able overall right? but in a facilities. not to basis high being can material demand and at, be not facilities to actually to well on leverage intensity be blush to scores, to Pekin money only make about So able right? -- have and that cost very to a It's significant able and savings something lower that are These it's spend is nothing high excited difference, be savings to carbon steam generate not energy

significantly anything So beneficial. is to can make do we more much them efficient

Operator

The comes Management. from next [Operator Capital DOMO Justin Instructions] question Dopierala from

Justin Dopierala

guess few were maybe of I I at questions, the couple loss, million. a walk better little the could $X.X a through you Pekin side if us was wondering specifically answered. gross bit

you $X.XX the crush of over financials For provided here, -- show example, a kind you on $X.XX a margin.

much operating different maybe your QX, have it might and around result. had year, again, based a financials, was $X.XX. it I you think in think on last been guys And I negative

don't even there, if I something was are there number. the maybe know Pekin with that? is I wondering, within there that -- compared in QX, just derivative playing to that's So losses

Bryon McGregor

alcohol large that think sales the do on associated they of with include specialty a derivative Justin, derivative with is significant as basis. losses, and obligations normal all that's for natural if amount sales and will facility -- and about volumes aligned that, most gas fixed we Yes, associated particularly of hedge the a also the with you the it, is that our of is like

Justin Dopierala

mean, I think number over was So million. $X I that

example, out, million is account, $X is gain thing. if for we take a So more the that backing losses then those of derivative into one Pekin

Bryon McGregor

math makes quick Yes, that sense.

Justin Dopierala

Okay. guess understand I that. just And to further

natural the end year. So gas the as mentioned, into you fell prices of

you are derivative sales, I of right? derivatives to large specifically on part hedge that's So assume took to of But alcohol your the the a in margins those the hit specialty losses.

Bryon McGregor

Yes.

X we know we So as that had are normally is would to sure be is a in the it's to crystal what the weather wish natural as much derivatives going prices, factors. in, to to year we've locked in carry right, make One our difficult year ball out, that gas we like in just do. locations

So to short time, very the only avoid spike gas see next hundreds best as dollars, can thousands that is period of where the make dollars sure of happen a risk to significant right, not over that of thing we you natural well. prices but

as makes it So in that, side. to around strip avoid electricity to to sense winter lock costs the well as doing able some that to be cover those

is that that spread fixed extent and to those do as back delivered because will of and out well. those that, we're effectively in that corn the lock -- the go Most out largely able lock to you're fuel into then the sales. Alcohol procure it's difficult take and fixed prices, sales, the facility. we in able floating between To to On swap to spread

Justin Dopierala

of alcohol then the sold, specialty are -- loss? So the so as a derivatives more paper

Robert Olander

Correct. To prices. of your the point, were gas natural gas that natural as part hedges

on So premium it QX mind, all locking extent, XXXX. was that our in we in for Keep mainly the in contract. related and high-quality QX of but that contracted to volume a to large we

product unravel unrealized QX loss, as a fell, we an the next ratable physically. when loss. loss the continue those those. And market unrealized timing an on of unrealized take the course deliver derivatives them as to we're And taking so with positions actually to we will on prices year float QX the and throughout

Bryon McGregor

hedges the lock you -- the you well whole we will we and quarter, burden have the or benefit sales price year work And Justin, in to effectively the that to this our at the in X loss where the or because made derivatives to through the this or get the following historically that experience of then change, fourth quarters. experienced you're we trying for up make in loss reason or is and following times trying -- we'll of as fixed gain carry remainder you you whole have

And so didn't distraction we is company, are we why impact reflect out now them and the actually which thought were backing a true instead it would that of best of be those financial the EBITDA. really

Justin Dopierala

as only hoping I quarter, looks then Got a about if it. last you're like were we million like looks for don't then And know think any to guys that year. the sales, million. target maybe had expect for so comments specialty hit you alcohol far you it higher the $XX for you XXXX? I as $XX at what and It full could on at have

Bryon McGregor

Yes.

So because consistent negotiated. my saw we the regards changes only we pricing we to in earlier compression, protected I were not from with of prices marketplace, that market comments with think that the

challenges for much taking as to customers that the product, alcohol as were as products change were that the started adjustments saw different you well. they how make well to demand to demand, However, consumer in well our have as

XXXX there is you So will, volume. a, if

margin. XXXX to of to that and able that XXXX continue being was preserve volume that Some rolled into

Justin Dopierala

'XX? sold, expect should material we alcohol a increase in for So especially gallons

Bryon McGregor

goal. the That's

Justin Dopierala

of it of great safe comment. potential then guess the really your likely assets assume just of competitors statements And guess to comments would And is It's on public lot value that to given facilities, the stronger your the Western hear over dispose I the assets. be any million? of potentially disposition willingness by and to one made a Western last $XXX I

Bryon McGregor

will that we it hope difficult would be mean changed. never has million. really right? -- I we would I we have as evaluate have indicated, assess, to $XXX opportunities message always It's

to unique mean assets, to have say and only all this. goes assets, not consider it's for us We not for So opportunities. right? the reasonable but this viable Western I

so And that to assets we what ourselves. said, not that found have we date do with otherwise the could opportunities exceeded

the that company And that do and means the thing and will so take vigilant we That the to we invest remain certainly continue it changes, will redeploy we right extent reinvest. will and for money those that, and shareholders. to and in the for

these of extract if unique And drive assets and certainly So the not, a out we'll home we'll do in value greater that. profitability.

Operator

closing like Bryon question-and-answer would our for conference the back session. to turn over McGregor concludes This to I remarks. any

Bryon McGregor

Thank again feedback ongoing day. your good joining a and you, Have We support. us today. operator. for Thanks appreciate

Operator

now Thank The today's for presentation. conference has you concluded. attending

may disconnect. now You

Alto Ingredients (ALTO) 11 Mar 242023 Q4 Earnings call transcript