Exhibit 99.1



Alto Ingredients Reports First Quarter 2021 Results


First Quarter Net Income of $4.4 million, or $0.06 per share

First Quarter Adjusted EBITDA of $13.6 million

Further optimized fuel-grade ethanol production footprint with announced sale of Madera, CA production facility


Sacramento, CA, May 12, 2021 – Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer of specialty alcohols and essential ingredients, reported its financial results for the first quarter ended March 31, 2021.


“We had a solid first quarter to start 2021,” said Mike Kandris, CEO of Alto Ingredients. “Sales of our specialty alcohols came from contracted volumes, spot sales and exports. We generated our fourth consecutive quarter of gross profit, and had net income of $4.4 million and Adjusted EBITDA of $13.6 million in the first quarter. We remain on track with $18 million in capital improvement projects in 2021 that are expected to expand revenue and increase efficiencies and plant reliability at our Pekin campus. We also took another step to further optimize our fuel-grade ethanol production footprint by contracting to sell our Madera, California production facility.


“Over the past 12 months, we improved operations, reduced controllable expenses and our overall cost of capital, and improved our production footprint. Today, we are reinvesting in quality, proven and high-value projects, building an even better balance sheet and pursuing the last steps in optimizing our West Coast fuel-grade ethanol production. We have a strong foundation to pursue opportunities to enhance and expand our long-term growth.”


Financial Results for the Three Months Ended March 31, 2021 Compared to 2020


Net sales were $218.7 million, compared to $311.4 million.
Cost of goods sold was $204.9 million, compared to $324.3 million.
Gross profit was $13.8 million, compared to a gross loss of $12.9 million.
Selling, general and administrative expenses were $7.0 million, compared to $10.2 million.
Operating income was $5.6 million, compared to an operating loss of $23.1 million.
Net income available to common stockholders was $4.4 million, or $0.06 per share, compared to a net loss of $25.4 million, or $0.47 per share.
Adjusted EBITDA was positive $13.6 million, compared to negative $12.4 million.






Cash and cash equivalents were $44.1 million at March 31, 2021, compared to $47.7 million at December 31, 2020. Subsequent to quarter-end, on April 28, 2021, the company announced it signed a definitive agreement with Seaboard Energy California, LLC to sell the company’s fuel-grade ethanol production facility in Madera, California for total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities.


First Quarter 2021 Results Conference Call


Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, May 12, 2021, and will deliver prepared remarks via webcast followed by a question-and-answer session.


The webcast for the call can be accessed from Alto Ingredients website at www.altoingredients.com. Alternatively, you may dial the following number up to ten minutes prior to the scheduled conference call time: (877) 847-6066. International callers should dial 00-1 (970) 315-0267. The pass code will be 3595104. If you are unable to participate in the live call, the webcast will be archived for replay on the Alto Ingredients website for one year. In addition, a telephonic replay will be available at 8:00 p.m. Eastern Time on Wednesday, May 12, 2021 through 8:00 p.m. Eastern Time on Wednesday, May 19, 2021. To access the replay, please dial (855) 859-2056. International callers should dial 00-1 (404) 537-3406. The pass code will be 3595104.


Use of Non-GAAP Measures


Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited net income (loss) attributed to Alto Ingredients, Inc. before interest expense, provision (benefit) for income taxes, asset impairments, loss on extinguishment of debt, purchase accounting adjustments, fair value adjustments, and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss) attributed to Alto Ingredients, Inc. Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) attributed to Alto Ingredients, Inc. or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.






About Alto Ingredients, Inc.


Alto Ingredients, Inc. (ALTO), formerly known as Pacific Ethanol, Inc., is a leading producer of specialty alcohols and essential ingredients. The company is focused on products for four key markets: Health, Home & Beauty; Food & Beverage; Essential Ingredients; and Renewable Fuels. The company’s customers include major food and beverage companies and consumer products companies. For more information please visit www.altoingredients.com.


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995


Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ capital improvement projects and their effects; the anticipated sale of Alto Ingredients’ fuel-grade ethanol production facility in Madera, California; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business. These factors include, among others, Alto Ingredients’ ability to timely and effectively complete its capital improvement projects, and to operate them as expected; Alto Ingredients’ ability to close the sale of its fuel-grade ethanol production facility in Madera, California, which is subject to customary and other closing conditions; adverse economic and market conditions, including for specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; and the effects – both positive and negative – of the coronavirus pandemic and its resurgence or abatement. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the specialty alcohol production and marketing industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ distilleries, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 26, 2021.


Media Contact:

Bryon McGregor, Alto Ingredients, Inc., 916-403-2768, mediarelations@altoingredients.com


Company IR Contact:

Michael Kramer, Alto Ingredients, Inc., 916-403-2755, Investorrelations@altoingredients.com


IR Agency Contact:

Moriah Shilton, LHA Investor Relations, 415-433-3777, Investorrelations@altoingredients.com







(unaudited, in thousands, except per share data)


   Three Months Ended
March 31,
   2021   2020 
Net sales  $218,734   $311,404 
Cost of goods sold   204,897    324,294 
Gross profit (loss)   13,837    (12,890)
Selling, general and administrative expenses   7,014    10,212 
Asset impairment   1,200     
Income (loss) from operations   5,623    (23,102)
Fair value adjustments       673 
Interest expense, net   (1,885)   (5,307)
Other income, net   940    580 
Income (loss) before benefit for income taxes   4,678    (27,156)
Benefit for income taxes        
Consolidated net income (loss)   4,678    (27,156)
Net loss attributed to noncontrolling interests       2,056 
Net income (loss) attributed to Alto Ingredients, Inc.  $4,678   $(25,100)
Preferred stock dividends  $(312)  $(315)
Net income (loss) available to common stockholders  $4,366   $(25,415)
Net income (loss) per share, basic and diluted  $0.06   $(0.47)
Weighted-average shares outstanding, basic   70,351    53,828 
Weighted-average shares outstanding, diluted   72,464    53,828 






(unaudited, in thousands, except par value)


   March 31,
   December 31,
Current Assets:        
Cash and cash equivalents  $44,146   $47,667 
Accounts receivable, net   56,458    43,491 
Inventories   55,216    37,925 
Prepaid inventory   1,021    891 
Derivative instruments   22,355    17,149 
Assets held-for-sale   57,053    58,295 
Other current assets   5,339    8,628 
Total current assets   241,588    214,046 
Property and equipment, net   226,183    229,486 
Other Assets:          
Right of use operating lease assets, net   11,704    11,046 
Notes receivable   13,556    14,337 
Intangible asset   2,678    2,678 
Other assets   5,407    5,225 
Total other assets   33,345    33,286 
Total Assets  $501,116   $476,818 






(unaudited, in thousands, except par value)


   March 31,
   December 31,
Current Liabilities:        
Accounts payable – trade  $23,171   $13,047 
Accrued liabilities   13,623    11,101 
Current portion – operating leases   2,581    2,180 
Current portion – long-term debt   37,581    25,533 
Derivative instruments   4,741     
Liabilities held-for-sale   19,231    19,542 
Other current liabilities   11,822    15,524 
Total current liabilities   112,750    86,927 
Long-term debt, net of current portion   64,396    71,807 
Operating leases, net of current portion   8,956    8,715 
Other liabilities   13,332    13,134 
Total Liabilities   199,434    180,583 
Stockholders’ Equity:          
Alto Ingredients, Inc. Stockholders’ Equity:          
Preferred stock, $0.001 par value; 10,000 shares authorized; Series A: no shares issued and outstanding as of
March 31, 2021 and December 31, 2020
Series B: 927 shares issued and outstanding as of
March 31, 2021 and December 31, 2020
   1    1 
Common stock, $0.001 par value; 300,000 shares authorized; 73,161 and 72,487 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively   73    72 
Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of March 31, 2021 and December 31, 2020        
Additional paid-in capital   1,037,718    1,036,638 
Accumulated other comprehensive expense   (3,878)   (3,878)
Accumulated deficit   (732,232)   (736,598)
Total Stockholders’ Equity   301,682    296,235 
Total Liabilities and Stockholders’ Equity  $501,116   $476,818 







Reconciliation of Adjusted EBITDA to Net Loss



Three Months Ended

March 31,

(in thousands) (unaudited)  2021   2020 
Net income (loss) attributed to Alto Ingredients, Inc.  $4,678   $(25,100)
Interest expense   1,885    5,307 
Asset impairment   1,200     
Fair value adjustments       (673)
Depreciation and amortization expense*   5,860    8,116 
Total adjustments   8,945    12,750 
Adjusted EBITDA  $13,623   $(12,350)


*Adjusted for noncontrolling interests.


Commodity Price Performance



Three Months Ended

March 31,

(unaudited)  2021   2020 
Fuel-grade ethanol production gallons sold (in millions)   39.0    100.2 
Specialty alcohol production gallons sold (in millions)   19.0    22.3 
Third party fuel-grade ethanol gallons sold (in millions)   54.0    62.4 
Total gallons sold (in millions)   112.0    184.9 
Total gallons produced (in millions)   58.0    116.2 
Production capacity utilization   52%   77%
Average sales price per gallon  $1.94   $1.51 
Average CBOT ethanol price per gallon  $1.60   $1.24 
Corn cost per bushel – CBOT equivalent  $4.98   $3.79 
Average basis  $0.29   $0.44 
Delivered corn cost  $5.27   $4.23 
Total essential ingredients tons sold (in thousands)   276.9    671.9 
Co-product return % (1)   40.0%   37.0%


(1)Essential ingredients revenue as a percentage of delivered cost of corn.