Alto Ingredients Inc (ALTO) 2007 Q1 法說會逐字稿

Good day, ladies and gentlemen.

女士們，先生們，美好的一天。

We thank you very much for your patience and welcome to the first quarter 2007 Pacific Ethanol Incorporated earnings conference call.

我們非常感謝您的耐心等待，並歡迎您參加 2007 年第一季度太平洋乙醇公司財報電話會議。

My name is Bill and I'll be your conference coordinator for today.

我叫比爾，今天我將擔任您的會議協調員。

[Operator Instructions] As a reminder, today's conference is being recorded for replay purposes.

[操作員說明] 作為提醒，今天的會議正在錄製以供重播。

I would now like to turn the call over to your host for today's presentation, Mr.

我現在想把今天的演講轉給你的主持人，先生。

Gregory Pettit of Hill and Knowlton.

Hill and Knowlton 的格雷戈里·佩蒂特。

Please proceed, sir.

請繼續，先生。

Good morning and thank you for attending.

早上好，感謝您的出席。

I'm here this morning with CEO, Neil Koehler, and COO, John Miller.

今天早上我和首席執行官 Neil Koehler 和首席運營官 John Miller 在這裡。

First let me get through some Safe Harbor language and then we'll get started.

首先讓我了解一些安全港語言，然後我們將開始。

With the exception of historical information, the matters discussed in this conference call are forward-looking statements that involve a number of risks and uncertainties.

除歷史信息外，本次電話會議中討論的事項均為前瞻性陳述，涉及許多風險和不確定性。

The actual future results of Pacific Ethanol could differ from those statements.

Pacific Ethanol 的實際未來結果可能與這些陳述不同。

Factors that could cause or contribute to such differences include, but are not limited to, the ability of Pacific Ethanol to successfully and timely complete in a cost-effective manner construction of its four ethanol plants under construction, the ability of Pacific Ethanol to obtain all necessary financing to complete the construction of its other planned ethanol production facilities, the ability of Pacific Ethanol to timely complete its ethanol plant build-out program and to successfully capitalize on its internal growth initiatives, the ability of Pacific Ethanol to operate its plants at their plant production capacities, the price of ethanol relative to the price of gasoline and the factors contained in the risk factors section of Pacific Ethanol's Form 10K filed with the Securities and Exchange Commission on March 12, 2007.

可能導致或促成此類差異的因素包括但不限於 Pacific Ethanol 以具有成本效益的方式成功並及時完成其在建的四個乙醇工廠的建設的能力、Pacific Ethanol 獲得所有完成其他計劃中的乙醇生產設施建設所需的資金，Pacific Ethanol 及時完成其乙醇工廠擴建計劃並成功利用其內部增長計劃的能力，Pacific Ethanol 在其工廠運營其工廠的能力工廠生產能力、相對於汽油價格的乙醇價格以及太平洋乙醇公司於 2007 年 3 月 12 日向證券交易委員會提交的 10K 表的風險因素部分中包含的因素。

And with that, I'll turn the call over to Neil Koehler.

有了這個，我會把電話轉給 Neil Koehler。

Thank you, Gregory, and welcome everyone to Pacific Ethanol's investor call to discuss our 2007 first quarter financial results.

謝謝您，Gregory，並歡迎大家參加 Pacific Ethanol 的投資者電話會議，討論我們 2007 年第一季度的財務業績。

We are very pleased this morning to report strong operating results for the quarter.

我們很高興今天早上報告了本季度強勁的經營業績。

Our net income grew to $3 million on record revenues of nearly $100 million, compared to a loss of $600,000 on sales of $38 million in the first quarter of 2006.

我們的淨收入增長到 300 萬美元，創紀錄的收入接近 1 億美元，而 2006 年第一季度的銷售額為 3800 萬美元，虧損 60 萬美元。

We sold a record 37.5 million gallons of ethanol in the quarter.

我們在本季度售出了創紀錄的 3750 萬加侖乙醇。

Our gross profit was a record $15 million and our EBITDA for the quarter was a record $4.8 million.

我們的毛利潤達到創紀錄的 1500 萬美元，本季度的 EBITDA 達到創紀錄的 480 萬美元。

Growth and revenues, the net income in the quarter was due both to the continued expansion of our ethanol marketing business and the contribution of profitable production operations in Madera, California, and Windsor, Colorado.

增長和收入，本季度的淨收入是由於我們乙醇營銷業務的持續擴張以及在加利福尼亞州馬德拉和科羅拉多州溫莎的盈利生產業務的貢獻。

Our team did a remarkable job of both managing volatile commodity conditions in our operating business and continuing solid execution on our growth strategy to be the leader in destination ethanol production and marketing.

我們的團隊在管理我們經營業務中波動的商品狀況以及繼續紮實執行我們的增長戰略以成為目的地乙醇生產和營銷的領導者方面做得非常出色。

Our Boardman, Oregon ethanol plant is on track to be operational by the middle of this year and we have commenced construction on facilities in Burley, Idaho, Stockton, California and Calpatria, California in the Imperial Valley.

我們位於俄勒岡州博德曼的乙醇工廠有望在今年年中投入運營，我們已經開始在愛達荷州伯利、加利福尼亞州斯托克頓和加利福尼亞州卡爾帕特里亞帝國谷的設施建設。

All of these facilities will be operational by the middle of 2008.

所有這些設施將於 2008 年年中投入使用。

Beyond these projects, we have a full pipeline of opportunities to meet our objective of 420 million gallons of annual capacity by the end of 2010.

除了這些項目之外，我們還有一整套機會來實現到 2010 年底達到 4.2 億加侖年產能的目標。

This quarter we continue to build our executive team.

本季度我們將繼續建立我們的執行團隊。

We were proud last week to announce the appointment of Doug Jeffries as our new CFO.

上週，我們自豪地宣布任命 Doug Jeffries 為我們的新首席財務官。

Doug's experience as Chief Accounting Officer at eBay and prior public company CFO and controller experience brings exceptional financial expertise to our company as we continue our rapid growth.

Doug 在 eBay 擔任首席會計官的經歷以及之前的上市公司首席財務官和財務總監的經驗為我們公司帶來了卓越的財務專業知識，因為我們將繼續快速發展。

I want to thank John Miller for his yeoman's work as Acting CFO, while we carefully considered our choice for the new CFO.

我要感謝約翰·米勒（John Miller）作為代理首席財務官所做的工作，同時我們仔細考慮了我們對新首席財務官的選擇。

Under his watch, our financial group has met the challenge of timely and accurate financial reporting.

在他的領導下，我們的財務團隊迎接了及時準確的財務報告的挑戰。

During the quarter, we also filled a number of other key positions in the company and we have a financial controls and reporting organization that is well-qualified and highly motivated to manage the profitable growth of our company.

在本季度，我們還擔任了公司的許多其他關鍵職位，我們擁有一個合格且積極主動的財務控制和報告機構來管理我們公司的盈利增長。

We are very excited about the opportunities ahead as we respond to the rapidly increasing demand for renewable fuels to meet the energy, economic and environmental needs of our country.

我們對未來的機遇感到非常興奮，因為我們響應了對可再生燃料的快速增長的需求，以滿足我們國家的能源、經濟和環境需求。

With that, I'd like to now turn it over to John to run through the financial and operating details of our first quarter.

有了這個，我現在想把它交給約翰來介紹我們第一季度的財務和運營細節。

Thank you, Neil, and good morning everyone.

謝謝你，尼爾，大家早上好。

Even though I said on the call last quarter that someone else would be sitting here with Neil today, I am back.

儘管我在上個季度的電話會議上說今天會有其他人和尼爾坐在這裡，但我回來了。

I am very pleased to be here.

我很高興來到這裡。

This quarter we have accomplished a great deal.

這個季度我們取得了很大的成就。

Our business activities produced solid results and we made excellent progress on our business processes.

我們的業務活動取得了豐碩的成果，我們的業務流程取得了良好的進展。

Also, I am delighted that we recently announced that Doug Jeffries will be joining us soon.

此外，我很高興我們最近宣布 Doug Jeffries 將很快加入我們。

I'd like to start with the summary on Slide 1 after the title slide and underscore Neil's comment about execution.

我想從標題幻燈片後的幻燈片 1 的摘要開始，並強調 Neil 關於執行的評論。

We concluded a number of transactions throughout last year.

去年，我們完成了多項交易。

Those transactions were very important because they were key in providing the foundation for the current stage of our strategic plan.

這些交易非常重要，因為它們是為我們當前階段的戰略計劃奠定基礎的關鍵。

The first quarter was one in which the focus on execution was intense and the financial highlights covered here this morning are evidence of that focus.

第一季度對執行的關注度很高，今天上午的財務亮點就是這種關注的證據。

First, we will review the income statement, then look at EBITDA, then review our commodity pricing and, finally, review our balance sheet.

首先，我們將查看損益表，然後查看 EBITDA，然後查看我們的商品定價，最後查看我們的資產負債表。

Then, I'd like to make a couple of comments on other operations and construction status.

然後，我想就其他操作和施工狀態發表一些評論。

Moving to the income statement on Slide 2, net income for the quarter was $2.975 million, which after our preferred dividend, resulted in a diluted earnings per share of $0.05, compared to a loss of $612,000 in Q1 of '06.

轉到幻燈片 2 的損益表，本季度的淨收入為 297.5 萬美元，在我們的優先股利之後，每股攤薄收益為 0.05 美元，而 06 年第一季度虧損 612,000 美元。

The quarter sales increased to $99 million, a jump of 160% over sales for Q1 '06 and a 23% sequential increase over sales during the fourth quarter of '06.

本季度銷售額增至 9900 萬美元，比 06 年第一季度的銷售額增長 160%，比 06 年第四季度的銷售額連續增長 23%。

Total gross profit increased to $15.3 million, which is 16% of sales, up from $11.7 million in Q4, which was 15% of sales and up from $2.3 million in Q1 '06, which was 6% of sales.

總毛利增加到 1530 萬美元，佔銷售額的 16%，高於第四季度的 1170 萬美元，佔銷售額的 15%，高於 06 年第一季度的 230 萬美元，佔銷售額的 6%。

Please take a look at Slide 3 for our steady and significant sales increases are illustrated over the past five quarters.

請查看幻燈片 3，了解我們在過去五個季度中穩定而顯著的銷售額增長。

Slide 4 illustrates the strong and growing gross margin resulting from our strategy, a well-executed marketing program supported by a destination model for ethanol production.

幻燈片 4 展示了我們的戰略帶來的強勁且不斷增長的毛利率，這是一項執行良好的營銷計劃，由乙醇生產的目的地模型支持。

Going back to the income statement for a moment, our total SG&A for Q1 '07 was $9.5 million, down from $11.4 million in Q4 '06, but still too high in our view.

回到損益表，我們 07 年第一季度的 SG&A 總額為 950 萬美元，低於 06 年第四季度的 1140 萬美元，但在我們看來仍然太高了。

$1.7 million of that total relates to cost items that we do not expect to recur in subsequent quarters and we plan to see sequential declines through the balance of the year for SG&A as percentage of revenues.

其中 170 萬美元與我們預計不會在隨後幾個季度再次發生的成本項目有關，我們計劃在今年餘下時間看到 SG&A 佔收入百分比的連續下降。

Among those items included in the current quarter's SG&A are one-time cost related to building sound financial and accounting capabilities.

在本季度的 SG&A 中包括的項目包括與建立健全的財務和會計能力相關的一次性成本。

As you know, late last year we were faced with replacing our CFO and getting our business processes certified for Section 404 of Sarbanes-Oxley.

如您所知，去年年底，我們面臨更換首席財務官的問題，並讓我們的業務流程獲得薩班斯-奧克斯利法案 404 條款的認證。

Then in January, we opened our Sacramento headquarters and decided to move our accounting activities as expeditiously as practical.

然後在 1 月，我們開設了薩克拉門托總部，並決定盡可能快地轉移我們的會計活動。

The plan was to find a CFO, revamp the work processes, close '06 as a large accelerated filer, close Q1 '07 from Fresno and then close Q2 '07 from Sacramento.

計劃是尋找一名首席財務官，改進工作流程，以大型加速申報者的身份關閉 06 年，從弗雷斯諾關閉 07 年第一季度，然後從薩克拉門托關閉 07 年第二季度。

The first group of these tasks are complete and we are on target for the last step, that is, closing Q2 from Sacramento.

這些任務的第一組已經完成，我們正朝著最後一步的目標前進，即從薩克拉門托結束第二季度。

To do this, we used, and are continuing to use to some extent, consultants and temporary staff to bridge between people and locations and also to develop processes for SOX certification.

為此，我們使用並在一定程度上繼續使用顧問和臨時員工在人員和地點之間架起橋樑，並開發 SOX 認證流程。

The non-recurring cost of that in Q1 is about $900,000 and we expect that to be about $400,000 in Q2.

第一季度的非經常性成本約為 900,000 美元，我們預計第二季度約為 400,000 美元。

So, to summarize one-time costs during the quarter, in the category of SG&A, we have some one-time expenses related to the SOX 404 certification and the move.

因此，總結本季度的一次性成本，在 SG&A 類別中，我們有一些與 SOX 404 認證和遷移相關的一次性費用。

The expense in Q1 was about $900,000 and we project about $400,000 in Q2.

第一季度的費用約為 900,000 美元，我們預計第二季度約為 400,000 美元。

We do not expect any further expenses related to those items beyond what might be deemed ordinary accounting expense.

除了可能被視為普通會計費用之外，我們預計不會出現與這些項目相關的任何進一步費用。

In addition, also in the SG&A category, we had accelerated amortization of an intangible of $1.5 million related to the Front Range acquisition.

此外，同樣在 SG&A 類別中，我們加快了與 Front Range 收購相關的 150 萬美元無形資產的攤銷。

It is essentially the backlog that we bought with the business.

它本質上是我們與業務一起購買的積壓工作。

We will have that amount recur in Q2 and then it will be fully amortized.

我們將在第二季度重複該金額，然後將其完全攤銷。

In the other income/expense category, we had a portion of the TD Banknorth loan fees which went into other income/expense.

在其他收入/支出類別中，我們有一部分 TD Banknorth 貸款費用用於其他收入/支出。

The amount was approximately $783,000.

金額約為 783,000 美元。

This is a one-time event.

這是一次性事件。

It will not carry into Q2.

它不會進入第二季度。

Looking at Slide 5, the key point in this slide is that we were showing EBITDA for our business activities and our interest in Front Range.

看看幻燈片 5，這張幻燈片的關鍵點是我們展示了我們的業務活動的 EBITDA 以及我們對 Front Range 的興趣。

As a reminder, for Front Range, after we consolidate the financial results into our statements, we then back out the interests of the other owners from our net income.

提醒一下，對於 Front Range，在我們將財務結果合併到我們的報表中之後，我們會從我們的淨收入中扣除其他所有者的利益。

So, what we are showing on this page is EBITDA for just our business activities.

因此，我們在此頁面上顯示的只是我們業務活動的 EBITDA。

We exclude the amounts related to the other ownership interests.

我們不包括與其他所有者權益相關的金額。

Referring to Slide 6, we illustrate in the graph the steady growth of our gallons sold as a result of our marketing strategy.

參考幻燈片 6，我們在圖表中說明了由於我們的營銷策略而銷售的加侖量的穩定增長。

Total gallons sold increased to 37.5 million from 31.7 million in Q4 '06, and 19.8 million in Q1 '06.

總銷量從 06 年第四季度的 3170 萬加侖和 06 年第一季度的 1980 萬加侖增加到 3750 萬加侖。

Referring to Slide 7, the gallons we produced rose 63% to 13.5 million gallons, from 8.3 million gallons in the fourth quarter, which reflects principally a full quarter's production at both our Madera plant and our share of the Front Range facility.

參考幻燈片 7，我們生產的加侖量從第四季度的 830 萬加侖增長了 63% 至 1350 萬加侖，這主要反映了我們馬德拉工廠和 Front Range 工廠份額的整個季度的產量。

We expect production to remain fairly stable until our Columbia plant in Boardman, Oregon contributes to production in Q3.

在我們位於俄勒岡州博德曼的哥倫比亞工廠為第三季度的生產做出貢獻之前，我們預計產量將保持相當穩定。

Commodity margin per production was $1.43 per gallon, compared with $1.45 last quarter, even as our average corn price rose 59% in the period.

儘管我們的平均玉米價格在此期間上漲了 59%，但每件產品的商品利潤率為每加侖 1.43 美元，而上一季度為 1.45 美元。

Our average sales price of ethanol was up 4% to $2.34 per gallon, from $2.26 in Q4, and up 23% over the $1.92 per gallon average we achieved in the same quarter of last year.

我們的乙醇平均銷售價格從第四季度的 2.26 美元上漲 4% 至每加侖 2.34 美元，比去年同一季度實現的每加侖 1.92 美元的平均價格上漲 23%。

Our average delivered price of corn was $3.69 a bushel, an average basis of $0.59, or seep out equivalent of $3.10, which is nearly 23% lower than the $4.01 all end market price during the quarter.

我們的玉米平均交割價為每蒲式耳 3.69 美元，平均基差為 0.59 美元，或相當於 3.10 美元，比本季度 4.01 美元的所有終端市場價格低近 23%。

Our co-product return was 30.9%, which is down from 33.4%, which represents a lag in the effect of WDG prices in cracking corn prices.

我們的聯產品回報率為 30.9%，低於 33.4%，這表明 WDG 價格對玉米價格的影響滯後。

In the next slide, Slide 8, I have one item to point out on the balance sheet.

在下一張幻燈片（幻燈片 8）中，我要在資產負債表上指出一個項目。

Our total assets increased about $100 million from December 31 to March 31.

從 12 月 31 日到 3 月 31 日，我們的總資產增加了約 1 億美元。

This is due to a $76 million increase in restricted funds which are from the multi-plant financing and $52 million in PP&E, offset by a decrease of $30 million in current assets which is primarily cash.

這是由於來自多工廠融資的限制性資金增加了 7600 萬美元，以及 PP&E 增加了 5200 萬美元，被主要是現金的流動資產減少了 3000 萬美元所抵消。

That concludes our discussion of the financial results for this quarter.

我們對本季度財務業績的討論到此結束。

On another subject, as those of you who have followed us for the past several quarters know, management has been focused on improving our internal controls.

在另一個問題上，正如過去幾個季度一直關注我們的人所知道的那樣，管理層一直專注於改善我們的內部控制。

We have made great strides in improving work processes and in preparing for a successful mid-year test program.

我們在改進工作流程和準備成功的年中測試計劃方面取得了長足的進步。

It is our objective that we go into our 2007 year end with all internal systems in place.

我們的目標是在所有內部系統都到位的情況下進入 2007 年年底。

Our 10Q, which will be published later today, itemizes a good deal of detail on our progress, so I will limit our discussion in this area to answering any questions you might have on the subject.

我們將於今天晚些時候發布的 10Q 詳細列出了我們進展的大量細節，因此我將限制我們在這方面的討論，以回答您可能對該主題提出的任何問題。

I'd like to put my operations hat on for a moment and update you on the ethanol and co-products operations.

我想暫時放下我的操作帽子，向您介紹乙醇和副產品操作的最新情況。

First, and most importantly, we continue to operate safely.

首先，也是最重要的，我們繼續安全運營。

Our workforce at our Madera plant has not had an LTA, lost time accident, and we are now at 326 days and counting.

我們在馬德拉工廠的員工沒有發生 LTA 和誤工事故，現在我們已經工作了 326 天，而且還在不斷增加。

We are very pleased with their dedication and their efforts to maintain a safe workplace.

我們對他們的奉獻精神和維護安全工作場所的努力感到非常高興。

Next, our Madera plant recently passed a performance test proving it is capable of operating at a 40 million gallon per year rate.

接下來，我們的馬德拉工廠最近通過了一項性能測試，證明它能夠以每年 4000 萬加侖的速度運行。

Both our Madera and the Front Range facility operated about nameplate levels during the first quarter of the year.

今年第一季度，我們的 Madera 和 Front Range 工廠都在銘牌水平上運營。

At our Columbia facility in Boardman, we are now in the final phases of construction and, if all goes according to plan, we will be grinding corn in the middle of June and making alcohol by the end of the month.

在我們位於博德曼的哥倫比亞工廠，我們現在正處於建設的最後階段，如果一切按計劃進行，我們將在 6 月中旬研磨玉米，並在月底前生產酒精。

Our operating team has been hired and is commencing formal training next week.

我們的運營團隊已被聘用，下週將開始正式培訓。

Slide 9 has a current picture of the site along with visual updates on the other construction projects.

幻燈片 9 展示了該網站的當前圖片以及其他建設項目的視覺更新。

Magic Valley in Burley, Idaho will be ready to go in the first quarter of 2008 and Imperial and Stockton will follow in the second quarter of the year.

愛達荷州伯利的魔術谷將於 2008 年第一季度準備就緒，帝國和斯托克頓將在今年第二季度跟進。

And with that, I will hand the microphone back to Neil.

有了這個，我會把麥克風還給尼爾。

John, thank you.

約翰，謝謝。

Before opening up the lines for Q&A, I wanted to spend just a few moments discussing our business strategy and touch on a key public policy initiative here in California.

在開啟問答環節之前，我想花一點時間討論我們的業務戰略，並談談加州的一項關鍵公共政策倡議。

We will continue to expand on our differentiated strategy of producing and marketing renewable fuels and high value feed in the largest market for these products.

我們將繼續擴展我們在這些產品的最大市場中生產和銷售可再生燃料和高價值飼料的差異化戰略。

Our destination strategy we believe sustains a low cost position and a high value market position for our company.

我們相信我們的目的地戰略為我們的公司維持了低成本和高價值的市場地位。

Our continued investment in both production and distribution assets in the heart of the largest gasoline market in the world is a key to our company's success.

我們在全球最大的汽油市場中心對生產和分銷資產的持續投資是我們公司成功的關鍵。

But, it's also a critical component of adding new infrastructure necessary to accommodate new demand for renewable fuels across the markets.

但是，它也是增加新基礎設施以適應市場對可再生燃料的新需求的關鍵組成部分。

It is our strong belief that the urgent need to reduce net CO2 emissions from transportation is a large driver in significantly increasing the demand for renewable fuels in this country and worldwide.

我們堅信，減少交通運輸中二氧化碳淨排放的迫切需求是顯著增加該國和全球對可再生燃料的需求的重要驅動力。

In the near term, displacing gasoline with ethanol is the single most effective way to reduce net CO2 emissions from transportation fuels.

在短期內，用乙醇代替汽油是減少運輸燃料二氧化碳淨排放量的最有效方法。

A key objective of our company is to be the leader in low carbon renewable fuel production.

我們公司的一個關鍵目標是成為低碳可再生燃料生產的領導者。

Our destination strategy reduces our fossil fuel energy inputs by 30%, since we sell all of our co-product feed locally at the wet feed, avoiding the drying of this product, which is necessary for shipment over longer distances.

我們的目的地戰略將我們的化石燃料能源投入減少了 30%，因為我們在當地以濕飼料銷售我們所有的副產品飼料，避免了這種產品的干燥，這是長距離運輸所必需的。

We are exploring conversion technology utilizing bio-mass to generate process steam and electricity for our four ethanol facilities and to ultimately allow for the conversion of this bio-mass into ethanol.

我們正在探索利用生物質為我們的四個乙醇設施產生工藝蒸汽和電力的轉化技術，並最終將這種生物質轉化為乙醇。

This approach offers the multiple benefits of lower carbon fuel production, lower cost and a bridge to cellulose ethanol production in the future.

這種方法提供了低碳燃料生產、低成本和未來纖維素乙醇生產橋樑的多重好處。

We believe that low carbon fuel production will give us a significant competitive advantage in the marketplace.

我們相信，低碳燃料生產將使我們在市場上具有顯著的競爭優勢。

California Governor Arnold Schwarzenegger has by executive order mandated a minimum 10% reduction in CO2 emissions from transportation by the year 2020, with credit given to early action.

加利福尼亞州州長阿諾德施瓦辛格已通過行政命令要求到 2020 年將交通運輸中的二氧化碳排放量至少減少 10%，這歸功於早期行動。

This is truly a transformational policy that is a model for climate change initiatives elsewhere.

這確實是一項轉型政策，是其他地方氣候變化倡議的典範。

Increasing the amount of ethanol use in California will give immediate and substantial CO2 credits for California refiners to comply with this order.

增加加利福尼亞州的乙醇使用量將為加利福尼亞州的煉油廠提供立即和大量的二氧化碳信用，以遵守該命令。

It is the demonstrated and certifiable positive lifecycle energy balance of ethanol that delivers net CO2 reductions from ethanol use.

乙醇的使用證明和可證明的正生命週期能量平衡可實現乙醇使用的二氧化碳淨減少。

This policy, combined with the compelling blend economics of ethanol, should resulting the migration from 6 to 10% ethanol blends in California over the next 12 months.

這項政策，再加上令人信服的乙醇混合經濟性，應該會在未來 12 個月內導致加利福尼亞州的乙醇混合物從 6% 遷移到 10%。

This change alone would result in 700 million gallons per year of new ethanol demand in California.

僅這一變化就將導致加州每年新增 7 億加侖的乙醇需求。

We are also seeing substantial new growth in ethanol demand in other Western states where we offer it.

我們還看到我們提供乙醇的其他西部州的乙醇需求出現了新的大幅增長。

On a national basis, we see the ethanol market naturally growing to a 10% blend in the entire gasoline pool.

在全國范圍內，我們看到乙醇市場自然增長到整個汽油池中 10% 的混合物。

That translates into annual demand for nearly 15 billion gallons of ethanol.

這意味著每年對近 150 億加侖乙醇的需求量。

There are now active discussions between fuel providers, automakers and policymakers around increasing ethanol blends beyond 10%, up to 20% for use in all cars, which would create an annual demand for ethanol of 30 billion gallons.

現在，燃料供應商、汽車製造商和政策制定者之間正在積極討論將乙醇混合物的比例提高到 10% 以上，在所有汽車中使用到 20%，這將產生 300 億加侖的乙醇年需求量。

Considering constraints on gasoline refining capacity and continued increase in worldwide demand for transportation fuels, we remain very optimistic on the strong growth in ethanol demand over the years to come.

考慮到汽油精煉能力的限制以及全球對運輸燃料的需求持續增長，我們對未來幾年乙醇需求的強勁增長仍然非常樂觀。

And with that, Bill, John and I would be happy to answer any questions.

有了這個，比爾、約翰和我很樂意回答任何問題。

Thank you very much, sir.

先生非常感謝您。

[Operator Instructions] And our first question comes from the line of Mike Judd of Greenwich Consultants.

[操作員說明] 我們的第一個問題來自 Greenwich Consultants 的 Mike Judd。

Please proceed.

請繼續。

Congratulations on a good quarter.

祝賀一個好季度。

Thank you, Mike.

謝謝你，邁克。

You were kind enough to give us the equity volumes, but, unfortunately I was a little slow in writing down the numbers.

您很友好地向我們提供了股票交易量，但不幸的是，我在寫下這些數字時有點慢。

Could you repeat those please for last quarter and this quarter?

你能在上個季度和這個季度重複一遍嗎？

Yes, we would be happy to do that.

是的，我們很樂意這樣做。

So, this quarter the total sales of 37.5 million gallons of which 13.5 were from production operations.

因此，本季度總銷售額為 3750 萬加侖，其中 13.5 加侖來自生產運營。

That's our share of Front Range, plus 100% of Madera and 24 million of third party sales.

這是我們在 Front Range 中的份額，加上 100% 的 Madera 和 2400 萬的第三方銷售額。

Okay.

好的。

What was it last quarter again?

上個季度又是什麼情況？

I don't have- - I believe it was- -

我沒有——我相信是——

Hang on, we've got the number here.

等一下，我們這裡有電話號碼。

We can look it up and I can give it back to you.

我們可以查一下，我可以把它還給你。

Okay.

好的。

And while we're on, just switching to a separate subject.

當我們開始時，只需切換到一個單獨的主題。

It appears that you guys did a pretty good job in getting higher prices for the distillers' grants.

看來你們在提高酒廠補助金方面做得很好。

I know you gave us something where we could basically calculate it, but I just want to make sure my calculations are right.

我知道你給了我們一些我們基本上可以計算出來的東西，但我只是想確保我的計算是正確的。

Do you have an actual average DDS price for the quarter?

您是否有該季度的實際平均 DDS 價格？

We do.

我們的確是。

On a dry distiller's grade basis, it would work out to roughly $125 per ton.

以乾蒸餾器的等級為基礎，它的價格約為每噸 125 美元。

It's a wet distillers grade product that's roughly between 30, 35% solids and our average price in the quarter was approximately $45 per ton.

這是一種濕蒸餾級產品，固體含量大約在 30% 到 35% 之間，我們本季度的平均價格約為每噸 45 美元。

Okay, great.

好，太棒了。

Thanks for the help.

謝謝您的幫助。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of [Ronan Walsdorf] of Cowen and Company.

女士們先生們，你們的下一個問題來自 Cowen and Company 的 [Ronan Walsdorf]。

Please proceed.

請繼續。

Good morning.

早上好。

Congrats on a strong quarter.

祝賀一個強勁的季度。

I just wanted to try to understand a little bit better how to be modeling SG&A through the remainder of the year.

我只是想嘗試更好地了解如何在今年剩下的時間里為 SG&A 建模。

I appreciate the clarification around some of these one-time, non-recurring costs.

我很欣賞對其中一些一次性、非經常性費用的澄清。

But if you could give us a sense of what your, what the ramp may be, what the sort of normalized level is.

但是，如果您可以讓我們了解您的情況，坡道可能是什麼，標準化水平是什麼。

Then I just have quick follow up.

然後我只是快速跟進。

In the last call, we talked about our SG&A not exceeding last year's levels during the coming year.

在上次電話會議中，我們談到來年我們的 SG&A 不超過去年的水平。

And we are staying with that projection.

我們堅持這一預測。

We would exclude from that the amortization of the costs related to the Front Range acquisition.

我們將排除與 Front Range 收購相關的成本攤銷。

So, both one-time costs in the first quarter of $1.5 million and in the second quarter of the same amount would be in addition to last year's SG&A level.

因此，第一季度 150 萬美元的一次性成本和第二季度相同金額的一次性成本都將超出去年的 SG&A 水平。

Okay.

好的。

And then, you're talking about the Schwarzenegger initiative and there are others obviously at the federal level to push biofuels.

然後，你說的是施瓦辛格倡議，顯然還有其他人在聯邦一級推動生物燃料。

Are you seeing, what are you seeing from Detroit or from the Japanese or German automakers as far as their appetite to bring to market flex-fuel vehicles?

您是否看到，您從底特律或日本或德國汽車製造商那裡看到了他們將靈活燃料汽車推向市場的意願？

We are seeing some discussions at Toyota and certainly there have been other discussions with the foreign automakers.

我們在豐田看到了一些討論，當然也與外國汽車製造商進行了其他討論。

But, clearly, it is the U.S.

但是，很明顯，是美國。

domestic automakers who have led the way on flex-fuel vehicles.

在靈活燃料汽車方面處於領先地位的國內汽車製造商。

But, as the fuel becomes more prevalent in the marketplace and the demand for the vehicles becomes more prevalent, we certainly believe that all automakers will respond.

但是，隨著燃料在市場上變得越來越普遍以及對車輛的需求變得越來越普遍，我們當然相信所有汽車製造商都會做出回應。

Thanks very much.

非常感謝。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of Phillip [Chen] of [Arbor] Capital.

女士們，先生們，你們的下一個問題來自 [Arbor] Capital 的 Phillip [Chen]。

Please proceed.

請繼續。

Good morning.

早上好。

Good morning.

早上好。

Wanted to get a sense of, or what kind of growth you anticipate for Kinergy's operations in the remainder of '07?

想了解一下，或者您預計 Kinergy 在 07 年剩餘時間內的運營會出現什麼樣的增長？

We don't give any particular guidance on that, so we really can't discuss that in any detail other than to look at the past record of growth and we continue to expand in all the markets that we are operating and we expect growth, both from our production, as well as our marketing operations.

我們對此沒有提供任何具體指導，因此除了查看過去的增長記錄之外，我們真的無法詳細討論這一點，我們將繼續在我們運營的所有市場中擴張，我們預計會增長，既來自我們的生產，也來自我們的營銷業務。

Okay.

好的。

And the other question I had was, could you provide us some more color as to your initiatives to develop cellulosic ethanol?

我的另一個問題是，您能否為我們提供更多關於您開發纖維素乙醇的舉措的信息？

Yes.

是的。

We as a company are extremely careful about not making commitments until we have a plan and are ready to announce specific initiatives.

作為一家公司，我們非常謹慎，在我們制定計劃並準備宣布具體舉措之前不做出承諾。

And we do not have any specific initiatives to announce today, but we can say that we, like others, are deeply engaged in exploring all of the opportunities out there.

我們今天沒有任何具體的舉措要宣布，但我們可以說，我們和其他人一樣，正在深入探索那裡的所有機會。

We are in discussions with technology providers, strategic partners, that can help us understand the opportunities in cellulose and we are in the research and development of the appropriate strategy going forward.

我們正在與技術供應商、戰略合作夥伴進行討論，這可以幫助我們了解纖維素的機會，我們正在研究和開發適當的未來戰略。

Okay.

好的。

And earlier in the call you had mentioned that you were using biomass to develop process heat, as well as electricity.

在電話會議的早些時候，您曾提到您正在使用生物質來開發過程熱量以及電力。

Correct.

正確的。

To what degree have you implemented those technologies and, if not, what kind of horizon to you see?

你在多大程度上實施了這些技術，如果沒有，你看到什麼樣的前景？

Well, we have not yet implemented those technologies.

好吧，我們還沒有實施這些技術。

So, what we have done to be a first mover in the market was developed a strategy around a cookie cutter plant that we could put down in all these various locations that we are simultaneously building in.

因此，我們為成為市場的先行者所做的工作是圍繞一個千篇一律的工廠製定了一項戰略，我們可以在我們同時建造的所有這些不同的地點放下它。

And that involved natural gas boilers for the production of the steam and buying electricity off the grid.

這涉及用於生產蒸汽和從電網購買電力的天然氣鍋爐。

So, what we are looking at in a couple of locations is to come back in and install biomass combustion and look at that as a way to produce the steam and potentially electricity as well.

所以，我們在幾個地方正在研究的是回來並安裝生物質燃燒，並將其視為產生蒸汽和潛在電力的一種方式。

So, we believe that would be an initiative that we would be implementing in 2008 at one or more of our facilities.

因此，我們相信這將是我們將在 2008 年在我們的一個或多個工廠實施的一項舉措。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of Preeti Dubey of Thomas Weisel Partners.

女士們先生們，你們的下一個問題來自 Thomas Weisel Partners 的 Preeti Dubey。

Please proceed.

請繼續。

Yes, hi.

是的，你好。

I'm trying to understand what are trying to do in 2008.

我試圖了解 2008 年要做什麼。

So, in 2008, when you have a lot of your own production come in, would you be focusing on third party sales as much as you are doing right now?

那麼，在 2008 年，當你有很多自己的產品進來時，你會像現在一樣專注於第三方銷售嗎？

Or, should we see a shift of more towards own production marketing vis--vis for a third party?

或者，我們是否應該看到更多地轉向自己的生產營銷相對於第三方？

It is our objective to continue to expand the marketing of ethanol, along with our production.

我們的目標是繼續擴大乙醇的營銷以及我們的生產。

And I think if you go back to my comment on the, what we consider to be, the inevitable move here in California from a 7 or 6% blend to a 10% and 700 million gallons of new demand.

而且我認為，如果您回到我對我們認為是加利福尼亞州不可避免地從 7% 或 6% 的混合物轉變為 10% 和 7 億加侖的新需求的評論。

And you look at even with our 2010 plan to be producing 420 million gallons.

即使按照我們 2010 年生產 4.2 億加侖的計劃，你也會看到。

That's just a little more than half of the incremental new demand.

這只是增量新需求的一半多一點。

So, we see tremendous opportunities for growth in the market and growth in our marketing business along with our production.

因此，我們看到了市場增長的巨大機會，我們的營銷業務與我們的生產一起增長。

And we also are honored to have commitments to market ethanol for a number of other producers and so we will continue to expand those relationships as well.

我們也很榮幸能夠承諾為許多其他生產商銷售乙醇，因此我們也將繼續擴大這些關係。

Okay.

好的。

And the other question I have is more of a clarification.

我的另一個問題更多的是澄清。

I'm trying to get, when I calculate your total ethanol [Inaudible], which I do by multiplying 37.5 times the average ethanol price, the difference that I get between the reported the number and the ethanol sales is about 11.5 million.

我試圖得到，當我計算你的總乙醇[聽不清]，我乘以平均乙醇價格的 37.5 倍，我得到的報告數字和乙醇銷售量之間的差異約為 1150 萬。

Is that all due to co-product sales or is there something else also included in it?

這完全是由於聯產品銷售還是其中還包括其他東西？

You know, I'm not sure I understand that question.

你知道，我不確定我是否理解這個問題。

Could you rephrase it?

你能改寫一下嗎？

Okay.

好的。

I'm trying to understand what exactly were your sales for co-product in the quarter and what I'm trying to do here is I think the difference between the sales figure that you have reported, which is 99.2 million and I subtract from it the total ethanol sales, which is 37.5 million gallons times 2.34 for a gallon.

我試圖了解您在本季度的副產品銷售額到底是多少，而我在這裡要做的是我認為您報告的銷售數字之間的差異是 9920 萬，我從中減去乙醇總銷量為 3750 萬加侖乘以 2.34 加侖。

And the difference that I get is about $11 million.

我得到的差額約為 1100 萬美元。

And I'm trying to understand, is that all due to co-product sales or is there something else also?

我試圖了解，這一切都是由於聯產品銷售還是還有其他原因？

No, it's all co-product sales.

不，這都是副產品銷售。

Well, there is about $2.5 million worth of corn sales.

好吧，玉米銷售額約為 250 萬美元。

That's correct.

這是正確的。

Okay, that's the- -

好的，就是這樣——

So, it's about 7.5 of co-product, or WBG, and about 2.5 million of corn.

因此，它大約是 7.5 個副產品或 WBG，以及大約 250 萬個玉米。

That's the missing link.

這就是缺失的環節。

Thank you.

謝謝你。

So, that's a good point John brings up, which I think shows also how we have leveraged our position in these feed markets to sell not only the wet distillers grain, but we have been also in the business of providing rolled corn to the dairy market here in California.

所以，這是約翰提出的一個很好的觀點，我認為這也表明了我們如何利用我們在這些飼料市場的地位，不僅銷售濕酒糟，而且我們還從事向乳製品市場提供玉米卷的業務在加利福尼亞這裡。

So, we are a seller of corn, processed corn, to the dairies, along with our wet distillers product.

因此，我們是向乳製品廠銷售玉米、加工玉米以及我們的濕蒸餾器產品的賣家。

Thank you.

謝謝你。

Thank you very much, ma'am.

非常感謝您，女士。

Ladies and gentlemen, your next question comes from the line of Paul Resnik of Dutton Associates.

女士們先生們，你們的下一個問題來自 Dutton Associates 的 Paul Resnik。

Please proceed.

請繼續。

Good morning.

早上好。

Hi, Paul.

嗨，保羅。

Two questions.

兩個問題。

One, any trend you see in rail costs you see at this point for the corn shipment?

一，您在鐵路成本方面看到的任何趨勢，您在這一點上看到的玉米運輸？

Neil Koehler; The trend in transportation costs generally with higher fuel and higher demand on all of the modes of transportation, the rates are going higher.

尼爾·克勒；運輸成本的趨勢通常隨著燃料的增加和對所有運輸方式的需求的增加，費率正在走高。

As it relates to the relative increases between unitrains of corn and single manifest cars of ethanol and distillers grain, the increases in the more efficient shipments of unitrains have gone up at a slower rate than the single cars and actually at a slower rate than even the unitrains of ethanol.

由於它與玉米單元火車與乙醇和酒糟的單一載貨汽車之間的相對增加有關，因此更有效的單元火車運輸的增長速度比單一汽車慢，實際上甚至比單車慢。單鏈乙醇。

So, just another supporting factor in the spread analysis, which is essentially at the heart of our transportation advantage, bringing corn to our facilities in the unitrains shipments.

因此，這只是價差分析中的另一個支持因素，它本質上是我們運輸優勢的核心，將玉米帶到我們的單位運輸設施中。

We have seen those rates go up at a slower rate than other increases.

我們已經看到這些利率的上升速度比其他增長速度要慢。

Very good.

很好。

And secondly, with the high price of corn, have you had an opportunity to access increased corn production in local markets?

其次，在玉米價格高企的情況下，您是否有機會在當地市場獲得增加的玉米產量？

We are having conversations on a daily basis with farmers in the Western United States.

我們每天都在與美國西部的農民進行對話。

So, it is really a matter of price, as you point out, and we are seeing a great deal of interest in our local markets and we do believe that we will have incremental corn from local growers.

因此，正如您所指出的，這實際上是價格問題，我們看到當地市場對我們的極大興趣，我們相信我們將從當地種植者那裡獲得更多玉米。

I think on a macro basis, you can look at the planning and tension report.

我認為在宏觀的基礎上，你可以看看規劃和緊張報告。

On a nationwide basis we saw increases in corn acreage of 15%.

在全國范圍內，我們看到玉米種植面積增加了 15%。

In California that number was 20%.

在加利福尼亞，這個數字是 20%。

So, the market is responding.

因此，市場正在做出反應。

We're seeing corn being produced in areas, incrementally produced in areas outside of the traditional corn belt.

我們看到玉米在一些地區生產，在傳統玉米帶以外的地區逐漸生產。

And that is one more option for us and gives us, you know, we believe additional opportunity to leverage our destination position to lower our cost of corn.

這對我們來說是另一種選擇，你知道，我們相信有更多機會利用我們的目的地位置來降低我們的玉米成本。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of Jonathan Lichter of Sidoti and Company.

女士們先生們，您的下一個問題來自 Sidoti and Company 的 Jonathan Lichter。

Please proceed.

請繼續。

Can you give us- -

能不能給我們——

Good morning.

早上好。

Good morning.

早上好。

Can you give us a sense of if you will still have favorable corn hedges in Q2 and beyond?

您能否告訴我們您在第二季度及以後是否仍會有有利的玉米對沖？

We have a very active risk management program and clearly that showed the benefit to our company in this quarter.

我們有一個非常積極的風險管理計劃，並且清楚地表明了本季度對我們公司的好處。

We will continue and have a number of positions on corn on for the subsequent periods.

在隨後的時期內，我們將繼續持有一些玉米頭寸。

If you look at our 10Q filing of this afternoon, we do report both on a dollar basis and a volume basis our corn position on a go-forward basis.

如果你看一下我們今天下午提交的 10 季度報告，我們確實會以美元和數量為基礎報告我們的玉米頭寸。

And to summarize those numbers and actually do the implied math that would be required by looking at that, we have, as of the end of March, between the Front Range and the Madera facilities, we had a total of 12 million bushels of corn that had been fixed-price.

總結這些數字，並通過查看這些數字實際進行隱含的數學運算，截至 3 月底，在 Front Range 和 Madera 工廠之間，我們總共有 1200 萬蒲式耳玉米一直是固定價格。

For the subsequent periods at an average CBOT equivalent price of about $3.57 a bushel.

在隨後的時期內，CBOT 平均等價價格約為每蒲式耳 3.57 美元。

Okay.

好的。

Thanks.

謝謝。

And one question on, you mentioned the possibility of blends beyond, I guess, 10% blends.

還有一個問題，你提到了混合的可能性，我猜是 10% 的混合。

Can you comment on the GM Vice Chairman, I think it was last month, mentioned that current engines couldn't really handle anything beyond E10.

你能評論一下通用汽車副主席嗎，我想是上個月提到的，目前的發動機無法真正處理 E10 以外的任何事情。

Certainly that has been the position of the automakers, but I can say that of late we have had conversations with GM and other automakers about what might be an appropriate blend beyond 10%.

當然，這一直是汽車製造商的立場，但我可以說，最近我們與通用汽車和其他汽車製造商就什麼可能是超過 10% 的適當混合進行了對話。

And I would point out, just from the underwriter laboratory's position on the fuel dispenser equipment, it's all currently registered up to 15%.

我要指出，僅從保險商實驗室在燃油加油機設備上的立場來看，目前註冊率都高達 15%。

In Brazil, they run cars that are very similar to the cars on the road here, up to 25%.

在巴西，他們駕駛的汽車與這裡的道路上的汽車非常相似，高達 25%。

It is certainly our belief and we think that through testing that is going on between the industry and State of Minnesota and the car manufacturers today, that we will see some results here in the next number of months on that pilot program that will demonstrate that all cars can run on, certainly blends up to 15%, and we believe that up to 20% is possible as well.

這當然是我們的信念，並且我們認為，通過行業和明尼蘇達州以及今天的汽車製造商之間正在進行的測試，我們將在接下來的幾個月中看到該試點計劃的一些結果，這將證明所有汽車可以繼續行駛，當然混合高達 15%，我們相信高達 20% 也是可能的。

But we certainly think an intermediate plan certainly, 11%, 12, up to 15, would be very viable in today's cars.

但我們當然認為中間計劃肯定是 11%、12 到 15，在今天的汽車中是非常可行的。

It would take the EPA from a legal standpoint to allow anything more than 10% to be a legal fuel, which it's not today.

從法律的角度來看，EPA 將允許任何超過 10% 的燃料成為合法燃料，而今天不是這樣。

Okay.

好的。

Thank you.

謝謝你。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of Ian Horowitz of Soleil Securities.

女士們先生們，你們的下一個問題來自 Soleil Securities 的 Ian Horowitz。

Please proceed.

請繼續。

Good morning, Neil, John.

早上好，尼爾，約翰。

Good morning, Ian.

早上好，伊恩。

Good morning.

早上好。

Congratulations, guys, by the way.

順便說一句，恭喜，伙計們。

Couple of questions.

幾個問題。

I think the first one would just be kind of maybe your macro thoughts on ethanol to CARBOB gained some real spread compression year over the first quarter.

我認為第一個可能只是你對乙醇到 CARBOB 的宏觀想法在第一季度獲得了一些真正的利差壓縮。

A, what's your thought on why that happened?

A，您對為什麼會發生這種情況有何看法？

What do you think is a much more reasonable spread between the two products?

您認為這兩種產品之間更合理的價差是多少？

Well in terms of CARBOB, what we see in California, and this really gives significant additional underlying value to ethanol, that wholesale gasoline prices in California historically always run above the rest of the country.

就我們在加利福尼亞看到的 CARBOB 而言，這確實為乙醇提供了顯著的額外潛在價值，即加利福尼亞的批發汽油價格在歷史上總是高於全國其他地區。

And in the last number of months, really over the last year, that spread has even grown to be much larger.

在過去的幾個月裡，實際上是在過去的一年裡，這種傳播甚至變得更大了。

$0.15 to $0.20 premiums in the past have been typical, but we've seen $0.25, $0.30 as being more typical in the last quarter or two with that spread blowing out as high as $0.60.

過去 0.15 美元至 0.20 美元的保費是典型的，但我們已經看到 0.25 美元、0.30 美元在最後一兩個季度更為典型，價差高達 0.60 美元。

So, that just gives ethanol, which has its own supply and demand economics, that much more value in the markets that we are in.

因此，這只會讓具有自身供需經濟學的乙醇在我們所處的市場中具有更大的價值。

On a macro basis, looking at whether it's CARBOB or RBOB, the spread between ethanol and gasoline certainly has eroded of late.

從宏觀上看，無論是 CARBOB 還是 RBOB，乙醇和汽油之間的價差最近肯定已經縮小。

But I would point out that that is a very recent phenomenon.

但我要指出，這是最近才出現的現象。

As recently as a couple of months ago, we were trading at and above the historically normal spreads, call it $0.40, $0.50 a gallon, over gasoline.

就在幾個月前，我們的交易價格處於歷史正常點差之上，稱之為 0.40 美元，每加侖 0.50 美元，高於汽油。

What we've seen in the last number of weeks is a very rapid run-up in price of gasoline and not atypical, we've seen a lag on ethanol.

我們在過去幾週看到的是汽油價格的快速上漲，而不是非典型的，我們看到乙醇價格滯後。

So, it's- -

所以是- -

Do you think it's a lag rather than a disconnect?

您認為這是滯後而不是斷開連接嗎？

That certainly is our belief.

這當然是我們的信念。

When you have very high gasoline prices, I guess we would expect if they were to sustain at levels in the $2 and $2.50 range on wholesale gasoline, that you might see a larger spread, because it still generates a very solid operating margin for ethanol producers and gives refiners some additional incentive to open up new blend markets in the Southeast and other areas that will be critically important to the continued growth in the marketplace.

當汽油價格非常高時，我想我們預計，如果批發汽油價格維持在 2 美元和 2.50 美元之間，您可能會看到更大的價差，因為它仍然為乙醇生產商帶來非常可觀的營業利潤並為煉油廠提供一些額外的動力，以在東南部和其他地區開闢新的混合市場，這對市場的持續增長至關重要。

But, no, we do not see that there has been, in some way, some sort of shift that we have a new relationship between ethanol and gasoline.

但是，不，我們沒有看到，在某種程度上，我們在乙醇和汽油之間建立了新的關係。

But that will have a lot to do with what the absolute price of gasoline is on a go-forward basis.

但這與未來汽油的絕對價格有很大關係。

Right.

正確的。

Okay.

好的。

And then, talk to me a little bit, Stockton and your other California facility, as well as Madera.

然後，和我聊聊，斯托克頓和你在加州的其他工廠，還有馬德拉。

I mean, they all make sense in terms of the local market.

我的意思是，就當地市場而言，它們都是有意義的。

But, talk to me a little bit about your thoughts on Burley and Madera.

但是，請和我談談您對伯利和馬德拉的看法。

Are you looking to sell directly into those local markets?

您是否希望直接向當地市場銷售產品？

Or is there a logistical backend to this that you can be considering?

或者您是否可以考慮為此提供後勤後端？

Well, certainly, Burley would be the one plant where we're already engaged in market development.

嗯，當然，Burley 將是我們已經從事市場開發的唯一一家工廠。

We can sell 100% of the ethanol we produce in Idaho in Idaho.

我們可以在愛達荷州出售我們在愛達荷州生產的 100% 的乙醇。

If the state were blending 10% ethanol, it would be a market for ethanol that would exceed 100 million gallons.

如果該州混合 10% 的乙醇，這將是一個超過 1 億加侖的乙醇市場。

We are working with the fuel, the oil companies, in Idaho to put in place the infrastructure that will allow 10% ethanol blending.

我們正在與愛達荷州的燃料公司、石油公司合作，以建立允許 10% 乙醇混合的基礎設施。

Does Idaho have a blending requirement now?

愛達荷州現在有混合要求嗎？

There is not a blending requirement, no.

沒有混合要求，沒有。

There is actually a state tax incentive for blenders, so that gives some additional impetus for the growth in the market.

實際上對攪拌機有國家稅收優惠，因此這為市場的增長提供了一些額外的動力。

So, Idaho is the one plant where we modeled it.

因此，愛達荷州是我們對其進行建模的唯一工廠。

We will sell probably 50% in the Idaho market, but then it is a very good staging point for shipments into Salt Lake, which is also a very close market, and into Las Vegas market, potentially Northern California and the Northwest.

我們可能會在愛達荷州市場出售 50% 的股份，但這是一個非常好的中轉站，可以將貨物運往鹽湖城，這也是一個非常接近的市場，並運往拉斯維加斯市場，可能是北加州和西北部。

So, there will be some shipment of ethanol from our Idaho facility by rail.

因此，我們的愛達荷工廠將通過鐵路運輸一些乙醇。

But we certainly have the opportunity to sell all of it locally as the infrastructure is developed.

但隨著基礎設施的發展，我們當然有機會在當地出售所有這些。

All the wet distillers grain will be sold locally in what is the Magic Valley there, the largest dairy shed in the region.

所有濕酒糟都將在當地最大的奶牛棚——魔法谷出售。

Madera is sold locally.

馬德拉在當地出售。

Virtually all of Madera is sold into Fresno California by the blending facility there in Fresno for that surrounding region.

幾乎所有的馬德拉都通過弗雷斯諾的混合設施出售到加利福尼亞的弗雷斯諾，用於該周邊地區。

And Boardman?

和博德曼？

Boardman, 100% of the ethanol we are presuming will be sold in, there's a local market, Pasco, is a blending facility, and the balance would go to Portland.

Boardman，我們假設 100% 的乙醇將在其中銷售，當地市場 Pasco 是一個混合設施，其餘的將流向波特蘭。

Okay.

好的。

And then, now what do you think, last summer we had some serious issues in California with temperature and being able to offload product and you guys were able to take a little bit of advantage of that because of your, with the Kinergy side, with your local production and delivery.

然後，現在你怎麼看，去年夏天我們在加利福尼亞遇到了一些嚴重的溫度問題，並且能夠卸載產品，你們能夠利用這一點，因為你們，在 Kinergy 方面，與您當地的生產和交付。

Do you think that everyone's kind of working on figuring out this issue for the July/August timeframe in California?

你認為每個人都在努力解決加州 7 月/ 8 月時間範圍內的這個問題嗎？

Or is that still an exposure there, to high temperatures?

還是那裡仍然暴露在高溫下？

No, I don't see that as a high exposure.

不，我不認為這是高曝光率。

I see the issue in California and generally in the marketplace as demand is increasing, need for infrastructure.

隨著需求的增加，對基礎設施的需求，我看到了加利福尼亞和市場普遍存在的問題。

The industry and certainly Midwest producers have done a great job of improving the efficiencies of delivery, moving to unitrains of ethanol in the market.

該行業，當然還有中西部的生產商在提高交付效率方面做得很好，轉向市場上的乙醇聯合系統。

We at the marketing company have been adding to the infrastructure to make sure the ethanol is where it needs to be when it needs to be for the blending with the gasoline.

我們營銷公司一直在增加基礎設施，以確保乙醇在需要與汽油混合時處於需要的位置。

So, we see improvements, both on the origin and the destination, improving the logistics.

因此，我們看到出發地和目的地的改進，改善了物流。

But certainly it is a key advantage of ours with our Kinergy marketing company to be truck-delivered provider of ethanol to the final point of wholesale distribution.

但可以肯定的是，我們的 Kinergy 營銷公司的一個關鍵優勢是成為乙醇的卡車運輸供應商，直至批發分銷的最終點。

So, when there are moments in time, as there will continue to be, railcars are not where they need to be when they need to be, we are there as a very reliable supplier.

因此，當某些時刻（將來會繼續存在）時，軌道車不在他們需要的地方，我們作為一個非常可靠的供應商在那裡。

On short notice we can deliver ethanol to blending racks anywhere in our marketplace.

我們可以在短時間內將乙醇運送到我們市場的任何地方的混合架。

And then, can you give in the queue, or are you willing to give kind of an estimate of geographic breakdown on your corn pull?

然後，您能否在隊列中給出，或者您是否願意對您的玉米拉動的地理細分做出某種估計？

On our corn what?

在我們的玉米上是什麼？

On your corn supply?

關於你的玉米供應？

Where it's coming from?

它來自哪裡？

It again is an advantage of ours that we operate on two railroads at our various plants.

我們在不同工廠的兩條鐵路上運營，這也是我們的一個優勢。

And we can pull corn from virtually anywhere it is grown.

我們幾乎可以從任何種植玉米的地方提取玉米。

So, that moves around in time, depending upon where we can get the lowest cost, source of corn.

所以，這會隨著時間的推移而變化，這取決於我們在哪裡可以獲得成本最低的玉米來源。

Do you have any breakout for what you did for the first quarter?

您對第一季度所做的工作有任何突破嗎？

No, we don't.

不，我們沒有。

Okay.

好的。

Thanks.

謝謝。

I'll get back in queue.

我會回到隊列中。

Congratulations.

恭喜。

Thank you.

謝謝你。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of Pavel Molchanov of Raymond James.

女士們先生們，你們的下一個問題來自 Raymond James 的 Pavel Molchanov。

Please proceed.

請繼續。

Hi, guys.

嗨，大家好。

This is actually [Cory].

這實際上是[Cory]。

I'm filling in for Pavel.

我正在為帕維爾填補空缺。

Great quarter, by the way.

順便說一句，很棒的季度。

Thank you.

謝謝你。

Kind of touching back on the previous question, you were able to achieve that premier pricing over CBOT in the past two quarters and I'm wondering if you can see this trend continuing and really on a company-specific basis, if you could throw a little more color into it?

稍微回顧一下上一個問題，在過去兩個季度中，您能夠實現高於 CBOT 的最高定價，我想知道您是否可以看到這種趨勢持續下去，並且真的是在特定於公司的基礎上，如果您可以拋出一個多一點顏色進去嗎？

Well, we don't give any specific guidance, because obviously we can't tell the future.

好吧，我們不給出任何具體的指導，因為顯然我們無法預測未來。

But we manage our risk exposure to the best of our abilities and so we have taken some significant positions on forward corn and we do that in conjunction primarily with positions that we take on selling ethanol and we then are able to lock a margin that we find to be acceptable.

但是我們會盡我們最大的能力管理我們的風險敞口，因此我們在遠期玉米上採取了一些重要的頭寸，我們主要與我們在出售乙醇的頭寸相結合，然後我們能夠鎖定我們發現的保證金可以接受。

So, that's the strategy.

所以，這就是策略。

What corn does from here, it's certainly a very volatile environment.

玉米從這裡做什麼，這肯定是一個非常不穩定的環境。

We've seen just in the last week moves where it's gone up $0.10 a bushel in a day and down $0.10 the next.

我們剛剛在上週看到價格在一天內上漲 0.10 美元/蒲式耳，隨後又下跌 0.10 美元。

Our position right now on cost is slightly better than market, but if we were to see some significant falloff in corn prices here over the next period, then obviously it would be a different situation.

我們目前在成本方面的立場略好於市場，但如果我們在下一個時期看到這裡的玉米價格出現大幅下跌，那麼顯然情況會有所不同。

Conversely, if corn goes right back up, we'll be in a very advantaged position.

相反，如果玉米價格回升，我們將處於非常有利的位置。

So, it's hard to call.

所以，很難打電話。

What we really do is look at it from a margin management standpoint and what the markets then do on a daily spot basis is not as important as what we've been able to lock in terms of a gross margin.

我們真正要做的是從利潤管理的角度來看它，然後市場在每日現貨基礎上所做的事情並不像我們能夠鎖定的毛利率那麼重要。

Sure.

當然。

And as far as ethanol sales, as well.

就乙醇銷售而言，也是如此。

Is that kind of a regional thing as far as the premium receipt and all that?

就保費收據和所有這些而言，這是一種區域性的事情嗎？

Yes, I mean, if you look in a balanced market, the value of ethanol in our markets is going to be Midwest plus freight.

是的，我的意思是，如果你看一個平衡的市場，我們市場中乙醇的價值將是中西部加上運費。

And so that is why you would expect an actual premium.

這就是為什麼您會期望實際溢價。

I would also point out that our competitors also sell a great deal of ethanol in California and other destination markets.

我還要指出，我們的競爭對手也在加利福尼亞和其他目的地市場銷售大量乙醇。

So, their price is partly reflecting that premium as well.

因此，它們的價格也部分反映了這種溢價。

We then have an added premium where, when ethanol comes to California, for instance, it typically- - from the Midwest- - typically receives, comes into terminals where it's received by rail.

然後，我們有一個額外的溢價，例如，當乙醇進入加利福尼亞時，它通常 - 來自中西部 - 通常接收，進入通過鐵路接收的終端。

But then it has to be double-handled and trucked back out to the final point of wholesale distribution.

但隨後它必須經過雙重處理並用卡車運回批發分銷的最終點。

Our model is that we don't double-handle the ethanol.

我們的模型是我們不對乙醇進行雙重處理。

We bring corn in once to our plant.

我們將玉米一次帶到我們的工廠。

We ship products, ethanol and distillers grain, out directly to the final point of distribution and consumption.

我們將產品、乙醇和酒糟直接運送到分銷和消費的最終點。

And that is also a cost advantage.

這也是成本優勢。

It's also a price premium because a lot of our ethanol is truck-delivered to these points of distribution, where we're able to build in that added value of avoiding the terminaling and secondary transportation in our markets.

這也是一種價格溢價，因為我們的許多乙醇都是通過卡車運送到這些配送點，我們能夠在這些配送點建立附加價值，避免在我們的市場中進行終端和二級運輸。

All right.

好的。

Thank you.

謝謝你。

And one final question.

最後一個問題。

Looking at your marketing margins, it seems like they were a little above the historical norms, or at least what we were modeling.

查看您的營銷利潤率，它們似乎略高於歷史標準，或者至少高於我們所建模的水平。

Can you speak on any particular reason for this or how we can model this going forward?

您能否談談對此的任何具體原因，或者我們如何才能對此進行建模？

Any trends you see?

你看到了什麼趨勢？

We don't offer any specific guidance on our margins and in fact I'm not sure where you're deriving margins from, since we don't break it out separately.

我們沒有就我們的利潤提供任何具體的指導，事實上我不確定你從哪裡獲得利潤，因為我們沒有單獨列出它。

It is the case that, if you look at when we were a marketer only before we were a producer, our margins did exceed what would be considered more of a normal 1% margin.

情況是這樣的，如果你在我們成為生產商之前只是一個營銷人員，我們的利潤確實超過了被認為是正常的 1% 的利潤率。

We've been able to take positions in the market at times, trade in and around our system to add some margin to that.

我們有時能夠在市場上建立頭寸，在我們的系統中和周圍進行交易以增加一些保證金。

But, on a, the way we look at it, we have contractual commitments where we are limited to 1% margin and so we see that business in a steady state as a 1% margin business.

但是，從我們的角度來看，我們有合同承諾，我們被限制在 1% 的利潤率，因此我們認為該業務處於穩定狀態，即 1% 的利潤率業務。

But certainly that can flex around that number based upon our ability to position ourselves in the marketplace.

但可以肯定的是，這可以根據我們在市場中定位自己的能力來調整這個數字。

All right.

好的。

Thank you, guys.

感謝你們。

Great quarter.

很棒的季度。

Thanks.

謝謝。

Thank you very much, sir.

先生非常感謝您。

[Operator Instructions] Our next question comes as a follow up from Preeti Dubey of Thomas Weisel Partners.

[操作員說明] 我們的下一個問題來自 Thomas Weisel Partners 的 Preeti Dubey。

Please proceed.

請繼續。

Hi, actually, I just noticed that inventories were up quite a bit, about 17 million.

嗨，實際上，我剛剛注意到庫存增加了很多，大約 1700 萬。

Is that all due to ethanol, which is being stored in one of your facilities?

這完全是由於儲存在您的設施之一中的乙醇造成的嗎？

It actually would be combination of ethanol and corn.

它實際上是乙醇和玉米的組合。

So, we were, certainly with the price of corn being what it was in the quarter, we made an effort to maximize the amount of corn that we had stored by the end of the quarter.

因此，我們當然是在玉米價格與本季度一樣的情況下，我們努力在本季度末將我們儲存的玉米數量最大化。

So, there was a fair amount of that was corn.

所以，其中有相當一部分是玉米。

There also, we ended the year based upon just sales at the end of the year, we ended with a very, very low ethanol inventory, so we returned to more normal, yet still relatively minimal, amounts of ethanol inventory on hand at the end of the quarter.

此外，我們在年底僅根據銷售量結束了這一年，我們以非常非常低的乙醇庫存結束，所以我們最終恢復到更正常但仍然相對較少的乙醇庫存量本季度。

So, it was a combination of both ethanol and corn.

所以，它是乙醇和玉米的混合物。

Okay.

好的。

And just one more question.

還有一個問題。

What's the reason for moving your headquarters to Sacramento?

將總部搬到薩克拉門託的原因是什麼？

I think that was in the press release.

我認為那是在新聞稿中。

Well, if you look at Sacramento and you look at the Western region where we are currently focused, Sacramento is really the epicenter certainly of the agricultural and political heartbeat of California.

好吧，如果你看看薩克拉門托，看看我們目前關注的西部地區，薩克拉門托確實是加州農業和政治心跳的中心。

And it makes it a good place to be.

它使它成為一個好地方。

In that regard, it's very central.

在這方面，它非常重要。

It's a city that is larger than Fresno.

這是一個比弗雷斯諾更大的城市。

We're still very committed to the central valley of California and maintaining a strong regional office down there.

我們仍然非常致力於加利福尼亞的中央山谷，並在那里維持強大的區域辦事處。

But, as we are growing rapidly and trying to attract additional talent, Sacramento becomes a very good place to be able to attract that talent.

但是，隨著我們快速發展並試圖吸引更多的人才，薩克拉門托成為了一個能夠吸引這些人才的好地方。

Just from a logistics standpoint, with all of the travel that we do, both inside the company and with people visiting us, Sacramento with its transportation hub here, it's also a very good place to be.

僅從物流的角度來看，我們所做的所有旅行，無論是在公司內部還是與來訪的人，薩克拉門托及其交通樞紐都在這裡，這也是一個非常好的地方。

So, we're involved in the policy and the regulatory work on literally a daily basis, so being right here in the seat of the state's capitol is very helpful as we work through all of the issues of the day.

因此，我們每天都參與政策和監管工作，所以在州議會大廈所在地對我們處理當天的所有問題非常有幫助。

Thank you.

謝謝你。

Thank you very much, ma'am.

非常感謝您，女士。

[Operator Instructions] Our next question comes from the line of Joe [Arsenio] from Arsenio Capital.

[操作員說明] 我們的下一個問題來自 Arsenio Capital 的 Joe [Arsenio]。

Please proceed, sir.

請繼續，先生。

Yes, thanks.

對了謝謝。

In taking a look at the P&L, you have this entity that you reference as a non-controlling interest and variable interest entity.

在查看損益表時，您將這個實體稱為非控制性權益和可變權益實體。

And you subtract out, I guess, the profits that appropriate for that entity.

我猜你減去了適合該實體的利潤。

It's hard to detect how this moves proportionate to sales.

很難發現這與銷售額成正比。

Are you in the position to describe that relationship?

你能描述這種關係嗎？

No, we're not.

沒有，我們沒有。

The accounting rules that drive the consolidation of the numbers are pretty well set.

推動數字合併的會計規則設置得很好。

We're following those.

我們正在關注那些。

The results that you see are the results of those guidelines.

您看到的結果是這些準則的結果。

So, we have a couple of ways of doing that.

所以，我們有幾種方法可以做到這一點。

The decision is driven by, again, the accounting rules.

再次，該決定是由會計規則驅動的。

We are following those and so what we do is consolidate all of the financial results of the entity into our results and then subtract out, as you say, the interest of the other parties and subtract that from our net income.

我們正在關注這些，因此我們所做的是將實體的所有財務業績合併到我們的業績中，然後如您所說，減去其他方的利益並從我們的淨收入中減去。

And why is that interest of the other party described as variable?

為什麼對方的利益被描述為可變的？

It's the, oh, the variable interest entity?

它是，哦，可變利益實體？

Correct.

正確的。

That's a technical term related to the way that that is categorized.

這是一個與分類方式相關的技術術語。

This is a, there is a set of guidelines that dictate how an entity is categorized within the accounting arrangements.

這是一個，有一套指導方針，規定了一個實體在會計安排中的分類方式。

I don't have the expertise to fully describe that to you.

我沒有足夠的專業知識向你完全描述。

We'd be happy to do it in a separate call.

我們很樂意在單獨的電話中這樣做。

But, there are guidelines under 1046 that you can refer to that will take you down the same path that we've been down for how we treat the Front Range interest and you'll see how the tests occur and what drives us to that particular conclusion.

但是，您可以參考 1046 下的指導方針，這些指導方針將帶您走上與我們在對待 Front Range 利益的方式相同的道路上，您會看到測試是如何發生的，以及是什麼驅使我們去那個特定的結論。

Okay.

好的。

And will there be any more description of this relationship in the notes to your financials or some other way that we can try to pin down this relationship with the entity?

是否會在您的財務說明中對這種關係進行更多描述，或者我們可以嘗試確定與實體的這種關係的其他方式？

Because it's hard to deduce from what you've presented.

因為很難從你所呈現的內容中推斷出來。

The transaction was fully described in the 10K at the end of the year and I think that's your best reference document.

該交易在年底的 10K 中得到了充分的描述，我認為這是你最好的參考文件。

There's no, if there's no changes going ahead, and we don't anticipate that there will be, there won't be any notes in the Q.

沒有，如果沒有變化，我們預計不會有，Q 中不會有任何音符。

Okay, thank you.

好的謝謝你。

You're welcome.

別客氣。

Thank you very much, sir.

先生非常感謝您。

[Operator Instructions] And we do have a follow up from Ian Horowitz of Soleil Securities.

[操作員說明] 我們確實有來自 Soleil Securities 的 Ian Horowitz 的跟進。

Please proceed.

請繼續。

Hey, Neil.

嘿，尼爾。

Any comments on bottlenecks at the EPC level or the equipment level?

對 EPC 級別或設備級別的瓶頸有何評論？

Is anything getting easier or getting harder for you guys to work with?

對你們來說，有什麼事情變得更容易或更難了嗎？

On the equipment front we saw- - this is John.

在我們看到的設備方面——這是約翰。

I'll answer that question.

我會回答這個問題。

On the equipment front, we saw a pretty tight market last year.

在設備方面，去年我們看到市場相當緊張。

It has opened up over the last few months we are noticing.

我們注意到它在過去幾個月裡已經開放。

We, as we pointed out I think, we have pre-ordered the equipment for the sites that we're developing right now, or that we're constructing right now.

正如我們所指出的，我認為，我們已經為我們正在開發或正在建設的站點預訂了設備。

So, we're in good shape.

所以，我們的狀態很好。

Our prices are locked in and we don't see any issues related to the projects that we're working on right now.

我們的價格被鎖定，我們沒有看到與我們目前正在開展的項目相關的任何問題。

That's on, you know, on a price issue and I totally understand that.

你知道，這是關於價格問題的，我完全理解這一點。

But, from a physical issue, I mean, are these, is there still a bottleneck delivering these pieces of equipment out to the facilities?

但是，從物理問題來看，這些設備是否仍然存在瓶頸？

I think- - in terms of the availability of the equipment?

我認為——就設備的可用性而言？

Yes.

是的。

Availability has improved slightly over the last few months.

在過去幾個月中，可用性略有改善。

Ian, this is Neil.

伊恩，這是尼爾。

There's no question there's long lead times on these, on key pieces of equipment.

毫無疑問，這些關鍵設備的交貨時間很長。

But we fully anticipated that.

但我們完全預料到了這一點。

And again, it's part of our strategy is to have expertise internally that manages these processes.

同樣，我們戰略的一部分是在內部擁有管理這些流程的專業知識。

And we feel that we've done a very good job of making sure that any of those items that we order them far enough in advance to not interrupt our schedule.

而且我們認為我們已經做得非常好，以確保我們提前足夠遠地訂購的任何物品不會中斷我們的日程安排。

And we've been able to manage that successfully.

我們已經能夠成功地做到這一點。

And managing construction plugs has been fairly easy with Delta T?

使用 Delta T 管理建築插頭相當容易？

It has been.

它一直。

The format that we've taken is one where we manage a lot of the aspects of the project ourselves.

我們採用的格式是我們自己管理項目的許多方面。

So, we worked with Delta T for example.

因此，我們以 Delta T 為例。

We work with our constructors.

我們與我們的構造函數一起工作。

We work with other key suppliers on an individual basis.

我們單獨與其他主要供應商合作。

And we pull that package together.

我們把這個包裹放在一起。

And using that format, we have been able to deal with both the equipment supply and the timelines that we're up against.

使用這種格式，我們已經能夠處理設備供應和我們面臨的時間表。

So, we have been able- - Oregon, I think is a good example.

所以，我們已經能夠- - 俄勒岡州，我認為是一個很好的例子。

We started that project when things were fairly tight.

當事情相當緊張時，我們開始了那個項目。

We have with our construction team, which has really proven themselves here in the last few months, been able to do work-arounds on a number of issues.

我們的施工團隊在過去幾個月裡已經在這裡證明了自己，能夠解決一些問題。

We're able to stay on budget and on schedule for that project.

我們能夠保持該項目的預算和進度。

Okay.

好的。

Great.

偉大的。

Thanks, guys.

多謝你們。

Thank you very much, sir.

先生非常感謝您。

Ladies and gentlemen, your next question comes from the line of Michael [Cohen] of Pacific American Securities.

女士們先生們，你們的下一個問題來自 Pacific American Securities 的 Michael [Cohen]。

Please proceed.

請繼續。

Congratulations, guys.

恭喜，伙計們。

Thanks.

謝謝。

Thanks.

謝謝。

Neil, I was wondering, when the Columbia plant comes online mid-year, do you expect non-produced sales through Kinergy to decline to kind of take up that kind of shock?

尼爾，我想知道，當哥倫比亞工廠在年中上線時，您是否預計 Kinergy 的非生產銷售會下降以承受這種衝擊？

Or do you think that non-produced sales will stay pretty flat?

還是您認為非生產銷售將保持平穩？

It is certainly our objective to look at that plant and other plants as incremental to our overall marketing program.

我們的目標當然是將該工廠和其他工廠視為我們整體營銷計劃的增量。

So, no, we do not expect them to decline.

所以，不，我們預計它們不會下降。

Okay.

好的。

And I was wondering if you could talk a little bit about your ethanol sales contracts.

我想知道你能否談談你的乙醇銷售合同。

Do they tend to be for a specific term and is there a period when there's large expirations?

它們是否傾向於特定期限，是否有一段時間到期？

I will answer that question in sort of a market general sort of way.

我將以一種市場通用的方式回答這個問題。

We don't give specific information on our contracts, either term or price, customers, et cetera.

我們不提供關於我們的合同的具體信息，無論是條款還是價格、客戶等等。

But it is fairly typical in the market that there are terms of from spot to six months, occasionally 12 months, where we have seen- - it's somewhat ironic- - but on the one hand, there is definitely a longer term commitment on the part of the oil industry to continuing and expanding the use of ethanol.

但在市場上，從即期到六個月，有時是 12 個月，這是相當典型的，我們已經看到 - 這有點諷刺 - 但一方面，這部分肯定有更長期的承諾石油工業繼續擴大乙醇的使用。

But given the volatility in markets for both ethanol and gasoline, if anything, the time frame of the contracts has actually contracted to where they are shorter term and there is- - it used to be very typically, you would have these two 6-month blocks of time where the bulk of the contracts were done, the October through March and April through September periods.

但是考慮到乙醇和汽油市場的波動，如果有的話，合同的時間框架實際上已經收縮到它們的短期內並且存在 - 它過去非常典型，你會有這兩個 6 個月完成大部分合同的時間段，即 10 月至 3 月和 4 月至 9 月期間。

And I would say that, while there still are those periods, that it is broken up and we have a much more diverse set of buying and selling habits out there.

我想說的是，雖然仍然存在這些時期，但它已經被打破，我們有一套更加多樣化的買賣習慣。

We also have a much more diverse set of pricing mechanisms.

我們還有一套更加多樣化的定價機制。

Typically, fixed price contracts were the flavor of the day a number of years ago.

通常，固定價格合同是幾年前的主流。

Today, it's a mix of fixed and then index pricing, both to gasoline and to ethanol postings.

今天，它是固定定價和指數定價的混合，包括汽油和乙醇的發布。

Okay.

好的。

And you sell your distiller grains wet.

你賣你的酒糟濕了。

I was wondering, have you ever quantified the savings that you get by being able to sell them wet as opposed to having to put all of the energy into drying it?

我想知道，你有沒有量化過將它們濕賣而不是把所有的能量都放在烘乾上所節省的錢？

Yes, that's a very good question and it's obviously very central to our competitive advantage.

是的，這是一個非常好的問題，顯然這對我們的競爭優勢非常重要。

It all depends on the price of energy, which is an interesting hedge, because as natural gas prices go up, that cost advantage actually becomes greater.

這一切都取決於能源價格，這是一種有趣的對沖方式，因為隨著天然氣價格上漲，這種成本優勢實際上會變得更大。

So, if you look at, take today's range, $7, $8 and then MMBTU and we use 30% less BTUs in our process than if you were drying the distillers grain.

所以，如果你看看今天的範圍，7 美元，8 美元，然後是 MMBTU，我們在我們的過程中使用的 BTU 比你乾燥酒糟時少 30%。

That equates on an ethanol per gallon basis of roughly $0.06, $0.07 per gallon of energy savings.

這相當於每加侖乙醇大約 0.06 美元，每加侖節能 0.07 美元。

Okay.

好的。

And my last question is, I'm trying to figure out how to model SG&A and it's been down significantly this quarter compared to the last.

我的最後一個問題是，我正試圖弄清楚如何對 SG&A 進行建模，與上一季度相比，這個季度已經顯著下降。

And I was wondering if you could talk why your SG&A was lower.

我想知道您是否可以談談為什麼您的 SG&A 較低。

The primary reason that it was lower was that there was, we had a non-cash expense in Q4 of '06 related to compensation.

它較低的主要原因是，我們在 06 年第四季度有一筆與薪酬相關的非現金支出。

So, it was, Q4 '06 was larger than, spiked up due to that reason.

因此，由於這個原因，06 年第 4 季度比飆升。

Is that something we'll always see in Q4?

這是我們在第四季度總是會看到的嗎？

No, you will not.

不，你不會的。

That was a one-time event.

那是一次性事件。

What we are doing now is amortizing that cost over each quarter as we have done in Q1.

我們現在正在做的是在每個季度攤銷該成本，就像我們在第一季度所做的那樣。

So, Q1 reflected the run rate, so to speak, absent the one-time costs that I pointed out earlier.

因此，可以說，第一季度反映了運行率，沒有我之前指出的一次性成本。

So, Q2, you don't see anything that would be a significant change really from Q1, probably pretty quiet?

所以，第二季度，你沒有看到任何與第一季度相比真正有重大變化的東西，可能很安靜？

Other than we have some ongoing costs related to the move and to our Sarbanes-Oxley testing, which we projected at about $400,000.

除了我們有一些與搬遷和薩班斯-奧克斯利法案測試相關的持續成本，我們預計約為 400,000 美元。

Other than that, we are pretty much at a steady run rate.

除此之外，我們幾乎處於穩定的運行速度。

Small bump.

小疙瘩。

Okay, thank you.

好的謝謝你。

Thank you very much, sir.

先生非常感謝您。

[Operator Instructions] At this time, we have no further questions in queue.

[操作員說明] 目前，我們沒有其他問題在排隊。

I'd like to turn the call back over to our speakers for any closing remarks they may have.

我想將電話轉回給我們的發言人，以了解他們可能有的任何結束語。

Great.

偉大的。

Thank you, Bill.

謝謝你，比爾。

I want to just quickly to get back to Mike Judd's question on Q4 of '06.

我想盡快回到 Mike Judd 在 06 年第四季度提出的問題。

We pulled those numbers up.

我們把這些數字拉高了。

We had total sales of 32 million gallons, of which 7 were from production and 25 were from marketing.

我們的總銷售額為 3200 萬加侖，其中 7 來自生產，25 來自營銷。

That was the startup mode at Madera.

這就是 Madera 的啟動模式。

So, that's why the number was less in the fourth quarter than first quarter.

所以，這就是為什麼第四季度的數字低於第一季度的原因。

And with that, I would like to thank everybody for participating.

在此，我要感謝大家的參與。

I would like to thank shareholders for supporting our company, thank our employees for their continued dedicated work.

我要感謝股東對我們公司的支持，感謝我們的員工一直以來的辛勤工作。

And look forward to speaking with you all again next quarter.

並期待下個季度再次與大家交談。

Thank you very much, sir.

先生非常感謝您。

Thank you, ladies and gentlemen, for your participation in today's conference call.

女士們，先生們，感謝你們參加今天的電話會議。

This concludes your presentation and you may now disconnect.

您的演示到此結束，您現在可以斷開連接。

Have a good day.

祝你有美好的一天。

Thank you.

謝謝你。

11

11