Alto Ingredients Inc (ALTO) 2010 Q2 法說會逐字稿

Ladies and gentlemen, good morning. At this time, I'd like to welcome everyone to the Pacific Ethanol Incorporated second quarter 2010 results conference call. Today's conference call is being recorded. At this time, all participants will be in a listen-only mode. A question and answer session will follow the Company's formal remarks. (Operator Instructions).

女士們先生們，早上好。在這個時候，我想歡迎大家參加太平洋乙醇公司 2010 年第二季度業績電話會議。今天的電話會議正在錄音中。此時，所有參與者都將處於只聽模式。公司正式發言後將進行問答環節。 （操作員說明）。

And now, I would like to turn the call over to Rebecca Herrick. Please go ahead, ma'am.

現在，我想把電話轉給 Rebecca Herrick。請繼續，女士。

Thank you, Shawn. On the call today are Neil Koehler, President and CEO, and Bryon McGregor, CFO. Neil will begin with a review of the financial highlights, recent accomplishments and competitive positioning. Bryon will follow with a detailed review of the quarter-end results. And then Neil will return to discuss the Pacific Ethanol vision, and open the call for questions.

謝謝你，肖恩。今天的電話會議是總裁兼首席執行官 Neil Koehler 和首席財務官 Bryon McGregor。 Neil 將首先回顧財務亮點、近期成就和競爭定位。布賴恩隨後將對季度末的業績進行詳細審查。然後 Neil 將返回討論 Pacific Ethanol 願景，並開始提問。

Before we get underway, let me first inform you that Pacific Ethanol issued a press release yesterday, which provides details of the Company's quarterly financial and operating results. A replay of today's call will be available until Midnight, Pacific Time on August 19, by dialing 800-642-1687. International callers should dial 706-645-9291. The passcode will be 91992580.

在我們開始之前，讓我首先通知您，太平洋乙醇昨天發布了一份新聞稿，其中提供了公司季度財務和經營業績的詳細信息。撥打 800-642-1687 將在太平洋時間 8 月 19 日午夜之前重播今天的電話。國際呼叫者應撥打 706-645-9291。密碼為 91992580。

A webcast replay will also be available at the Pacific Ethanol website. If you have any questions, please call Lippert Heilshorn and Associates at 415-433-3777. Please note that information recorded on this call speaks only as of today, August 17, 2010, and therefore you're advised that the time-sensitive information may no longer be accurate as of the time of any replay.

Pacific Ethanol 網站也將提供網絡廣播重播。如果您有任何問題，請致電 415-433-3777 聯繫 Lippert Heilshorn and Associates。請注意，本次通話中記錄的信息僅適用於今天，2010 年 8 月 17 日，因此請注意，在任何重播時，時間敏感信息可能不再準確。

Before we begin, I will review a Safe Harbor statement, which can be found on slide two of the presentation. Management's comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Information about the potential factors that could affect the Company's financial results is available in the Risk Factors, as updated in the Company's SEC filings.

在開始之前，我將回顧一份安全港聲明，該聲明可在演示文稿的第二張幻燈片中找到。管理層今天的評論將包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。有關可能影響公司財務業績的潛在因素的信息可在公司提交給美國證券交易委員會的文件中更新的風險因素中找到。

With the exception of historical information, the matters discussed in this call, including without limitation, the ability of Pacific Ethanol to continue as the leading West Coast marketer and producer of low carbon renewable fuels, the ability of Pacific Ethanol to resume production at the California plant which is at the discretion of the third party plant owner, the ability of Pacific Ethanol to successfully staff, manage, and operate the four ethanol production facilities, and the expected renumeration for those services. If it elects to exercise its option, the ability of Pacific Ethanol to raise additional debt or equity capital, or both, to timely finance the purchase price for up to 25% of the ownership interest in the four ethanol production facilities, the ability of Pacific Ethanol to grow its business and generate revenue, earnings growth, and increase its market share. The ability of the California plants to continue to qualify, and ultimately receive payments, under the California Ethanol Producer Incentive Program, the ability of the State of California to fund the program payments, given California's challenging fiscal environment, and the ability of Pacific Ethanol to restructure its remaining indebtedness are forward-looking statements, and considerations that involve a number of risks and uncertainties. The actual future results of Pacific Ethanol could differ from those statements.

除歷史信息外，本次電話會議中討論的事項包括但不限於 Pacific Ethanol 繼續作為西海岸領先的低碳可再生燃料營銷商和生產商的能力，Pacific Ethanol 在加利福尼亞州恢復生產的能力由第三方工廠所有者自行決定的工廠、Pacific Ethanol 成功配備、管理和運營四個乙醇生產設施的能力，以及這些服務的預期報酬。如果選擇行使其選擇權，Pacific Ethanol 有能力籌集額外的債務或股本，或兩者兼而有之，以及時為四個乙醇生產設施中高達 25% 的所有權權益的購買價格提供資金，Pacific Ethanol 的能力Ethanol 發展其業務並產生收入、盈利增長並增加其市場份額。鑑於加州充滿挑戰的財政環境，加州工廠有能力繼續獲得加州乙醇生產商激勵計劃下的資格並最終獲得付款，加州有能力為計劃付款提供資金，以及太平洋乙醇公司有能力重組其剩餘債務是前瞻性陳述，以及涉及許多風險和不確定性的考慮。 Pacific Ethanol 的實際未來結果可能與這些陳述不同。

Pacific Ethanol refers you to the risk factor section contained in Pacific Ethanol's most recent Form 10-Q, filed with the Securities and Exchange Commission on August 16, 2010, and its Form 10-K filed with the Securities and Exchange Commission on March 31, 2010.

Pacific Ethanol 建議您參考 Pacific Ethanol 於 2010 年 8 月 16 日向美國證券交易委員會提交的最新表格 10-Q 和 3 月 31 日向美國證券交易委員會提交的表格 10-K 中包含的風險因素部分， 2010 年。

Also, please note the Company uses financial measures not in accordance with Generally Accepted Accounting Principles, commonly known as GAAP, to monitor the financial performance of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the reported financial results, as determined in accordance with GAAP. Adjusted EBITDA is defined as unaudited earnings before interest, taxes, depreciation, amortization and gain associated with the Company's ethanol production facility's exit from bankruptcy.

此外，請注意，公司使用不符合公認會計原則（通常稱為 GAAP）的財務措施來監控運營的財務業績。非 GAAP 財務指標應被視為根據 GAAP 確定的報告財務結果的補充，而不是其替代方法。調整後的 EBITDA 定義為與公司乙醇生產設施退出破產相關的利息、稅項、折舊、攤銷和收益前未經審計的收益。

As a reminder, you may access the slide presentation today at the Investor section of the Company's website at www.PacificEthanol.net.

提醒一下，您今天可以在公司網站 www.PacificEthanol.net 的投資者部分訪問幻燈片演示。

It is now my pleasure to introduce Neil Koehler, President and CEO. Neil?

現在，我很高興介紹總裁兼首席執行官 Neil Koehler。尼爾？

Thank you, Rebecca, and thank you all for joining us today. During the second quarter 2010, we posted improved financial performance. And over the past several months, we have achieved several major milestones, including leading the production facilities out of bankruptcy. As a result of these accomplishments, we believe now is the appropriate time to reinitiate quarter-end conference calls.

謝謝你，麗貝卡，謝謝大家今天加入我們。在 2010 年第二季度，我們公佈了改善的財務業績。在過去的幾個月裡，我們已經實現了幾個重要的里程碑，包括帶領生產設施擺脫破產。由於這些成就，我們認為現在是重新啟動季度末電話會議的適當時機。

Today we will be addressing those who are new to Pacific Ethanol, as well as those who are familiar with our Company. To educate the first group, I will start with a brief synopsis of Pacific Ethanol, our mission, our business strategy, and discuss our recent highlights. Then Brian will review the financials in greater detail. I will return to comment on the market, and our growth opportunities, after which we will open the call to questions.

今天，我們將向那些剛接觸 Pacific Ethanol 的人以及熟悉我們公司的人致辭。為了教育第一組，我將首先簡要介紹一下 Pacific Ethanol、我們的使命、我們的業務戰略，並討論我們最近的亮點。然後布賴恩將更詳細地審查財務狀況。我將返回對市場和我們的增長機會發表評論，之後我們將打開提問電話。

Now let me begin with a review of some of the Company's recent highlights. I will talk more about the ethanol industry later in my remarks. However, it is important to note the overall industry outlook has improved, and presents opportunities for Pacific Ethanol, particularly as the demand for ethanol increases, with no new ethanol plant construction having been initiated in the last two years. Crush margins, while not optimal, have improved. In the face of what has been a challenging market, we have delivered significantly improved financial results.

現在讓我先回顧一下公司最近的一些亮點。稍後我將在我的發言中更多地談論乙醇行業。然而，重要的是要注意到整體行業前景有所改善，並為太平洋乙醇提供了機會，特別是隨著乙醇需求的增加，過去兩年沒有啟動新的乙醇工廠建設。壓榨利潤率雖然不是最優的，但已經有所改善。面對充滿挑戰的市場，我們取得了顯著改善的財務業績。

For the second quarter of 2010, we grew ethanol sales in total gallons sold, from our production and marketing businesses compared to last year. Combined with prudent cost management, we improved adjusted EBITDA to negative $6.7 million, compared to negative $15.1 million in the second quarter of 2009.

2010 年第二季度，與去年相比，我們的生產和營銷業務的乙醇總銷量（加侖）有所增長。結合審慎的成本管理，我們將調整後的 EBITDA 改善至負 670 萬美元，而 2009 年第二季度為負 1510 萬美元。

In addition, we lowered our outstanding principal amount of indebtedness. And we successfully completed the financial restructuring of the production facilities exiting bankruptcy June 29. As a result, we have dramatically reduced Pacific Ethanol's total liabilities by $294 million. In summary, we are stabilizing our Company by establishing predictable, recurring revenues, and a platform for continued growth.

此外，我們降低了未償債務本金金額。我們於 6 月 29 日成功完成了對退出破產的生產設施的財務重組。因此，我們將 Pacific Ethanol 的總負債大幅減少了 2.94 億美元。總之，我們通過建立可預測的經常性收入和持續增長的平台來穩定公司。

Pacific Ethanol's mission is to be the leading West Coast marketer and producer of low carbon renewable fuels, where we believe we have a sustainable competitive advantage. We produce, manage and market ethanol, and its co-products. I will discuss our business activities in the order as they occur along the value chain.

Pacific Ethanol 的使命是成為西海岸領先的低碳可再生燃料營銷商和生產商，我們相信我們在這方面擁有可持續的競爭優勢。我們生產、管理和銷售乙醇及其副產品。我將按價值鏈中發生的順序討論我們的業務活動。

First, I will review our ethanol and feed production. Pacific Ethanol has the only existing business model in the industry, integrating destination plant production, grain procurement, marketing and logistics. While there are a few individual and separately owned destination plants, they are not integrated with other production facilities, and do not have the marketing and asset management capabilities of Pacific Ethanol.

首先，我將回顧一下我們的乙醇和飼料生產。 Pacific Ethanol 擁有業內唯一現有的商業模式，集目的地植物生產、糧食採購、營銷和物流於一體。雖然有少數獨立的目的地工廠，但它們沒有與其他生產設施整合，也不具備太平洋乙醇的營銷和資產管理能力。

A destination plant is one that is located in the markets where it sells its fuel and feed products. This creates several advantages. First, we provide more efficient distribution of ethanol to markets than by shippers of ethanol from the Midwest, to those same markets, avoiding double handling costs. We also produce the co-product wet distillers grain, or WDG, which is a more nutritious animal feed, eliminating approximately 30% of total plant energy costs required to dry grain for long distance shipping. These transportation and energy cost efficiencies support our low cost and high value production and marketing business model, and contribute to the fact that we have secured our position as a producer of ethanol with the lowest carbon rating of commercially produced ethanol in the United States, according to the California Air Resources Board.

目的地工廠是位於其銷售燃料和飼料產品的市場中的工廠。這產生了幾個優點。首先，與將乙醇從中西部運送到相同市場的運輸商相比，我們向市場提供更有效的乙醇配送，避免了雙重處理成本。我們還生產副產品濕酒糟 (WDG)，它是一種更有營養的動物飼料，可節省大約 30% 的植物能源總成本，用於乾燥穀物以進行長途運輸。這些運輸和能源成本效率支持我們低成本和高價值的生產和營銷業務模式，並有助於我們鞏固作為美國商業生產乙醇碳評級最低的乙醇生產商的地位，根據加州空氣資源委員會。

Next I will discuss asset management of production facilities. Upon reorganization of the production facilities, we have continued our asset management contracts for the four plants that have the capacity to produce 200 million gallons annually . The current owners of the plants recognize the value Pacific Ethanol offers, based on our history, knowledge and expertise with these production facilities. Under these agreements, we receive an asset management fee, delivering stable revenue to PEI. In addition, we can earn production profit-sharing incentive fees, thereby providing an upside.

接下來我將討論生產設施的資產管理。在重組生產設施後，我們繼續為四家年產能為 2 億加侖的工廠簽訂資產管理合同。基於我們對這些生產設施的歷史、知識和專業知識，工廠的當前所有者認識到 Pacific Ethanol 所提供的價值。根據這些協議，我們收取資產管理費，為 PEI 帶來穩定的收入。此外，我們可以賺取生產利潤分享激勵費，從而提供上行空間。

We are efficiently managing operations at the plants. The Pacific Ethanol Columbia plant in Boardman, Oregon, and the Pacific Ethanol Magic Valley plant in Burley, Idaho, are operating at full capacity together, at approximately 100 million gallons annually. The Stockton and Madera California plants, which also have a combined operating capacity of 100 million annual gallons, while currently idle, are being well maintained so that they can restart quickly and efficiently. The goal is to resume operations at the idled plants, when there is an economic advantage to do so.

我們正在有效地管理工廠的運營。位於俄勒岡州博德曼的太平洋乙醇哥倫比亞工廠和位於愛達荷州伯利的太平洋乙醇魔法谷工廠一起滿負荷運行，年產量約為 1 億加侖。斯托克頓和馬德拉加利福尼亞工廠的總運營能力也為每年 1 億加侖，雖然目前處於閒置狀態，但維護良好，以便能夠快速有效地重新啟動。目標是在有經濟優勢的情況下恢復閒置工廠的運營。

We believe that the recently announced California Ethanol Producer Incentive Program, or CEPIP, for which the Stockton and Madera facilities are eligible, provide an additional reason to restart these facilities. The CEPIP is designed to provide payments to eligible operating California ethanol producers under specific unfavorable ethanol and corn crush margin conditions. Conversely, under exceptionally favorable crush margin conditions, participants will be required to reimburse the State for any outstanding CEPIP payment balances. Current funding is subject to final adoption by the State of California for its 2011 fiscal year budget. In addition to our asset management activities, we continue to implement working capital, cost management, and efficiency improvement programs.

我們認為，斯托克頓和馬德拉工廠有資格參與的最近宣布的加利福尼亞乙醇生產商激勵計劃 (CEPIP) 為重啟這些工廠提供了額外的理由。 CEPIP 旨在在特定不利的乙醇和玉米壓榨利潤條件下向符合條件的加州乙醇生產商提供付款。相反，在特別有利的壓榨保證金條件下，參與者將被要求向國家償還任何未結清的 CEPIP 付款餘額。目前的資金取決於加利福尼亞州對其 2011 財年預算的最終採納。除了我們的資產管理活動，我們繼續實施營運資金、成本管理和效率改進計劃。

Finally, I will discuss our marketing subsidiaries, Kinergy and Pacific Ag Products. Kinergy markets ethanol in western United States markets, sourcing supply from the plants, and from third parties across the country. Kinergy offers value to its customers beyond simply marketing a commodity, including marketing to a broad range of customers, including the large oil refineries and small independent refiners and distributors, offering unique services for delivery and storage logistics that reduce the cost for its customers. And providing reliable and immediate delivery of ethanol through multiple terminal locations, enabling customers to efficiently manage their inventory and supply. In doing all of this, Kinergy has provided a stable growth platform, even during periods of challenging market conditions.

最後，我將討論我們的營銷子公司 Kinergy 和 Pacific Ag Products。 Kinergy 在美國西部市場銷售乙醇，從工廠和全國各地的第三方採購供應。 Kinergy 為客戶提供的價值不僅僅是簡單地營銷商品，包括向廣泛的客戶進行營銷，包括大型煉油廠和小型獨立煉油廠和分銷商，提供獨特的交付和倉儲物流服務，從而降低客戶的成本。並通過多個終端位置提供可靠和即時的乙醇交付，使客戶能夠有效地管理他們的庫存和供應。在這一切的過程中，Kinergy 提供了一個穩定的增長平台，即使在充滿挑戰的市場條件下也是如此。

Since Kinergy sold the ethanol from the four production facilities, Kinergy was negatively impacted by their bankruptcies. That said, we were able to quickly adjust, and have strengthened our foundation of suppliers and customers. As a result, Kinergy has delivered quarter-over-quarter sales growth for the last four quarters, maintaining a position for long term sustainable growth.

由於 Kinergy 出售了四個生產設施的乙醇，Kinergy 受到了他們破產的負面影響。也就是說，我們能夠快速調整，並加強了我們的供應商和客戶基礎。因此，Kinergy 在過去四個季度實現了環比銷售增長，保持了長期可持續增長的地位。

We expect to continue this growth by adding key resources to strengthen our position in our core western markets. Our goals for the marketing business are to increase volume within the existing customer base, add new customers in our core markets, and further stabilize our earnings. We believe this will deepen our market share, expand our business, and minimize risk.

我們希望通過增加關鍵資源來鞏固我們在核心西方市場的地位，從而繼續這種增長。我們營銷業務的目標是增加現有客戶群的數量，在我們的核心市場增加新客戶，並進一步穩定我們的收益。我們相信這將加深我們的市場份額，擴大我們的業務，並將風險降至最低。

Ethanol blending continues to rise in all our markets. Further, in January 2011, new low carbon fuel standards are scheduled to be implemented for all blenders of gasoline in California. We believe these factors provide Kinergy the opportunity to generate substantial growth.

乙醇混合在我們所有的市場中繼續上升。此外，2011 年 1 月，計劃對加利福尼亞州的所有汽油混合器實施新的低碳燃料標準。我們相信這些因素為 Kinergy 提供了實現大幅增長的機會。

In addition to Kinergy, Pacific Ag Products, our animal feed marketing subsidiary, procures the corn for and markets the wet distillers grain from the plants, to local cattle feed lots and dairies. Currently, the business is focused on delivering value to the production subsidiaries in which Pacific Ag Products receive a service fee for marketing and distribution. Longer term growth for Pacific Ag Products may take the form of additional service and logistics in the feed marketing business. That is a brief recap of our primary business activities.

除了 Kinergy 之外，我們的動物飼料營銷子公司 Pacific Ag Products 還為當地的牛飼料場和奶牛場採購玉米並將其從植物中提取出來的濕酒糟進行銷售。目前，該業務專注於為太平洋農業產品公司收取營銷和分銷服務費的生產子公司提供價值。 Pacific Ag Products 的長期增長可能會在飼料營銷業務中採取額外服務和物流的形式。這是對我們主要業務活動的簡要回顧。

And with that, I will turn the call over to Bryon McGregor, our CFO. Bryon?

有了這個，我將把電話轉給我們的首席財務官 Bryon McGregor。布賴恩？

Thank you, Neil. I will begin with a review of our performance for the second quarter ending June 30, 2010, compared to second quarter ending June 30, 2009. We reported net sales of $76.8 million, an increase of $6.6 million or 9% compared to $70.1 million. This growth is primarily due to an increase in sales from the Magic Valley facility, partially offset by a change in reporting of our 42% investment in Front Range Energy. Prior to January 1, 2010, we consolidated all Front Range sales volumes in our reporting of net sales. Now we account for their results under the equity method, in which we report the earned marketing fees and include Front Range production in the total for third party gallons. Had we used the same method previously, our second quarter 2009 net revenues would have been $46.5 million. On this basis, we would have delivered $30.3 million net sales growth for the second quarter of 2010.

謝謝你，尼爾。我將首先回顧我們截至 2010 年 6 月 30 日的第二季度的業績，與截至 2009 年 6 月 30 日的第二季度相比。我們報告的淨銷售額為 7680 萬美元，與 7010 萬美元相比增加了 660 萬美元或 9%。這一增長主要是由於 Magic Valley 設施的銷售額增加，部分被我們在 Front Range Energy 投資 42% 的報告變化所抵消。在 2010 年 1 月 1 日之前，我們在淨銷售額報告中合併了 Front Range 的所有銷量。現在我們根據權益法計算他們的結果，其中我們報告賺取的營銷費用，並將 Front Range 生產包括在第三方加侖總量中。如果我們以前使用相同的方法，我們 2009 年第二季度的淨收入將是 4650 萬美元。在此基礎上，我們將在 2010 年第二季度實現 3030 萬美元的淨銷售額增長。

Total gallons sold were 65.4 million gallons, an increase of 88% compared to 34.7 million gallons. As noted, production and third party sales volumes are impacted by the accounting change. Of that total, production sales volume increased by 3.6 million gallons or 18%, to 23.5 million gallons, compared to 19.9 million gallons. And we increased third party sales volume by 27.1 million gallons or 183%, to 41.9 million gallons compared to 14.8 million gallons. The average sales price of ethanol decreased by $0.08 per gallon or 5%, to $1.67 per gallon compared to an average sales price of $1.75 per gallon.

總銷量為 6540 萬加侖，與 3470 萬加侖相比增長了 88%。如前所述，生產和第三方銷量受到會計變更的影響。其中，生產銷量增加了 360 萬加侖或 18%，達到 2350 萬加侖，而同期為 1990 萬加侖。我們將第三方銷量從 1480 萬加侖增加了 2710 萬加侖或 183%，達到 4190 萬加侖。乙醇的平均銷售價格每加侖下降 0.08 美元或 5%，至每加侖 1.67 美元，而平均銷售價格為每加侖 1.75 美元。

Gross profit reflects maintenance and depreciation on four plants, even when fewer plants are in operation. Second quarter 2010 gross loss was $2.7 million, which included $2.6 million in depreciation, compared to $7.8 million, which included $8.3 million depreciation in second quarter 2009. We cut SG&A expenses in half to $3.2 million from $6.3 million, reflecting professional fees and general corporate cost reductions.

毛利潤反映了四個工廠的維護和折舊，即使在運營的工廠較少。 2010 年第二季度的毛虧損為 270 萬美元，其中包括 260 萬美元的折舊，而 2009 年第二季度的總虧損為 780 萬美元，其中包括 830 萬美元的折舊。我們將 SG&A 費用從 630 萬美元減半至 320 萬美元，這反映了專業費用和一般公司費用成本降低。

Net income available to common shareholders was $107.8 million, which included a non-cash gain of $119.4 million associated with the ethanol production facility's exit from bankruptcy. And a non-cash charge of $544,000 associated with the reduction of debt through the issuance of stock. This compared to a net loss of $27.4 million for the same period in 2009. Adjusted EBITDA was a negative $6.7 million, including $2.7 million of reorganization costs, compared to a negative $15.1 million, including $9.5 million of reorganization costs.

普通股股東可獲得的淨收入為 1.078 億美元，其中包括與乙醇生產設施退出破產相關的 1.194 億美元的非現金收益。以及與通過發行股票減少債務相關的 544,000 美元的非現金費用。相比之下，2009 年同期淨虧損 2740 萬美元。調整後的 EBITDA 為負 670 萬美元，其中包括 270 萬美元的重組成本，而負 1510 萬美元，包括 950 萬美元的重組成本。

Now I'll review the six months ending June 30, 2010, compared to the same period ending June 30, 2009. We reported net sales of $148 million, down from $156.8 million, due to lower production gallons sold, which were partially offset by an increase in average sales price per gallon. Total gallons sold were 124.1 million gallons, an increase of 56% compared to 79.6 million gallons in the prior year. The average sales price of ethanol increased by $0.05 per gallon or 3%, to a $1.74 per gallon, compared to an average sales price of $1.69 per gallon for the same period in 2009.

現在，我將回顧截至 2010 年 6 月 30 日的六個月，與截至 2009 年 6 月 30 日的同期相比。我們報告的淨銷售額為 1.48 億美元，低於 1.568 億美元，原因是銷售的生產加侖數減少，部分抵消了每加侖的平均銷售價格增加。總銷量為 1.241 億加侖，與上一年的 7960 萬加侖相比增長了 56%。乙醇的平均銷售價格每加侖增加 0.05 美元或 3%，達到每加侖 1.74 美元，而 2009 年同期的平均銷售價格為每加侖 1.69 美元。

Net income available to common shareholders was $97.7 million, which included the aforementioned gain, and a non-cash charge of $2.2 million associated with the reduction of debt through the issuance of stock. This compared to a net loss of $51.3 million. Adjusted EBITDA was a negative $13.2 million for the first six months of 2010, including $4.2 million of reorganization costs, compared to a negative $24.3 million for the same period last year, including $9.5 million of reorganization costs.

普通股股東可獲得的淨收入為 9770 萬美元，其中包括上述收益，以及與通過發行股票減少債務相關的 220 萬美元的非現金費用。相比之下，淨虧損為 5130 萬美元。 2010 年前六個月調整後的 EBITDA 為負 1320 萬美元，其中包括 420 萬美元的重組成本，而去年同期為負 2430 萬美元，其中包括 950 萬美元的重組成本。

Now I will review our balance sheet at June 30, 2010. Cash was $2 million, compared to $2.9 million at March 31. Working capital improved from negative $62.2 million at March 31, to a negative $19.5 million at June 30. The ongoing Kinergy revenues, and new asset management agreement, will continue to contribute cash flow to the Company.

現在，我將查看 2010 年 6 月 30 日的資產負債表。現金為 200 萬美元，而 3 月 31 日為 290 萬美元。營運資金從 3 月 31 日的負 6220 萬美元提高到 6 月 30 日的負 1950 萬美元。Kinergy 的持續收入和新的資產管理協議，將繼續為公司貢獻現金流。

We continue to maintain significant excess borrowing availability under our $10 million Kinergy line of credit. Additionally, management is evaluating the other financial options, including those authorized at our recent annual shareholder meeting.

在我們 1000 萬美元的 Kinergy 信貸額度下，我們繼續保持大量超額借款。此外，管理層正在評估其他財務選擇，包括在我們最近的年度股東大會上授權的那些。

We completed the financial restructuring of the production facilities, which exited bankruptcy effective June 29. PEI disposed of $294.5 million liabilities, net of $175.1 million assets, and recorded a non-cash gain of $119.4 million. In addition, we further reduced the principal amount of our corporate notes payable by $9 million during the quarter, bringing the total reduction to $19 million for the year. Now our total corporate debt has been lowered to $14.5 million. We continue to work productively with our creditors to address the remaining obligations, and find suitable resolutions. In parallel to our efforts to capture future growth opportunities, we will continue our efforts to improve our liquidity position.

我們完成了生產設施的財務重組，該生產設施於 6 月 29 日退出破產保護。PEI 處置了 2.945 億美元的負債，淨資產為 1.751 億美元，非現金收益為 1.194 億美元。此外，我們在本季度將應付公司票據的本金進一步減少了 900 萬美元，使本年度的總減少額達到 1900 萬美元。現在我們的公司債務總額已降至 1450 萬美元。我們將繼續與債權人進行富有成效的合作，以解決剩餘的義務，並找到合適的解決方案。在我們努力抓住未來增長機會的同時，我們將繼續努力改善我們的流動性狀況。

Now I would like to return the call to Neil.

現在我想給尼爾回電話。

Thank you, Bryon. I'd like to address some industry trends. Over the last five years, demand for ethanol has grown substantially, from approximately 3 billion gallons to 12 billion gallons annually. Even with this significant compound annual growth rate, the demand for ethanol continues to increase, due to favorable blend economics, and the federal requirements to increase renewable fuel in the country's transportation supply. The industry has met the challenge, and currently nearly 13 billion gallons of annual capacity is online to meet a minimum required 12 billion gallons of use in 2010, translating into a relatively tight relationship between supply and demand.

謝謝你，布賴恩。我想談談一些行業趨勢。在過去五年中，對乙醇的需求大幅增長，從每年大約 30 億加侖增加到 120 億加侖。即使具有如此顯著的複合年增長率，由於有利的混合經濟以及聯邦要求增加該國運輸供應中的可再生燃料，對乙醇的需求仍在繼續增加。該行業已經迎接了挑戰，目前有近 130 億加侖的年產能在線，以滿足 2010 年 120 億加侖的最低使用需求，這意味著供需關係相對緊張。

By 2015, the renewable fuel standard will mandate minimum demand for corn-based ethanol of 15 billion gallons, which will require new installed capacity. We believe that these trends will support ethanol production margin improvement necessary to support new investment in capacity.

到 2015 年，可再生燃料標準將要求玉米乙醇的最低需求量為 150 億加侖，這將需要新的裝機容量。我們認為，這些趨勢將支持乙醇生產利潤率的提高，以支持新的產能投資。

The California Low-Carbon Fuel Standard, scheduled to begin on January 1, 2011, will require a 10% reduction in carbon intensity of all fuel sold in California by 2020. This is an ambitious goal. Blending low-carbon ethanol with gasoline is the single most effective means available to refiners to meet this new regulation. Pacific Ethanol, through both production and marketing, has a key strategic advantage, as it relates to the low-carbon fuel standard.

加州低碳燃料標準計劃於 2011 年 1 月 1 日開始實施，要求到 2020 年將加州銷售的所有燃料的碳強度降低 10%。這是一個雄心勃勃的目標。將低碳乙醇與汽油混合是煉油廠滿足這一新規定的最有效的方法。 Pacific Ethanol 通過生產和營銷，具有關鍵的戰略優勢，因為它與低碳燃料標準相關。

With the Federal Renewable Fuel Standard, and favorable blend economics, many states are approaching the maximum 10% ethanol blend allowed by the Federal Environmental Protection Agency for all cars. Our market region still contains new growth opportunities to reach the 10% limit. The EPA is reviewing the current 10% limit, and considering a petition to increase the ethanol blend level to between 12% and 15%. We are optimistic that this will occur, as testing has shown that all cars can run effectively on up to 15% ethanol blends, and higher. And this additional market access is necessary to meet the requirements of the Renewable Fuel Standard.

憑藉聯邦可再生燃料標準和有利的混合經濟性，許多州正在接近聯邦環境保護署允許的所有汽車的最大 10% 乙醇混合。我們的市場區域仍然包含達到 10% 限制的新增長機會。 EPA 正在審查當前 10% 的限制，並考慮將乙醇混合水平提高到 12% 至 15% 的請願書。我們對這將會發生持樂觀態度，因為測試表明，所有汽車都可以在高達 15% 甚至更高的乙醇混合物上有效運行。而這種額外的市場准入對於滿足可再生燃料標準的要求是必要的。

Overall for the Company, we intend to drive growth in production and marketing by strengthening our position in core markets, increasing volume with existing customers, as well as adding new customers. Finally, we are exploring our option to purchase up to 25% ownership of the plants. While we believe ownership would increase our operating leverage, we intend to evaluate all of our alternatives, and only proceed with a financial structure that would be accretive to our shareholders. In summary, today we have stable, core fundamentals, and a growth strategy to capture an expanding market.

總體而言，對於公司而言，我們打算通過加強我們在核心市場的地位、增加現有客戶的數量以及增加新客戶來推動生產和營銷的增長。最後，我們正在探索購買最多 25% 的工廠所有權的選擇。雖然我們相信所有權會增加我們的經營槓桿，但我們打算評估我們所有的替代方案，並且只繼續採用對我們的股東有利的財務結構。總之，今天我們擁有穩定的核心基本面和增長戰略來佔領不斷擴大的市場。

With that, operator, I'd like to open the lines for Q&A.

有了這個，接線員，我想打開問答線路。

(Operator Instructions).

（操作員說明）。

Our first question comes from Paul Resnik with Olympia Capital.

我們的第一個問題來自 Olympia Capital 的 Paul Resnik。

Good morning.

早上好。

Good morning, Paul.

早上好，保羅。

I'm sorry, I got a little late to the call, so if you covered this, my apologies. What are your current time schedule or hopes, regarding starting up the California plants?

抱歉，我的電話有點晚了，所以如果你報導了這個，我很抱歉。關於啟動加利福尼亞工廠，您目前的時間表或希望是什麼？

Well, we did address that, Paul in the call. But to review that again, we have qualified the two plants in California for the California Producer Incentive Program, which is contingent upon a final budget being passed in California, which we would hope would occur some time in September. We believe that combined with the low carbon fuel standard that gives a special advantage to the ethanol produced in California that begins January 1, that we are in a good position to start up the plants. But that is going to be contingent upon the factors that I mentioned, overall economic conditions in the marketplace, and ultimately, the agreement of the owners of the plants to start up the plants.

好吧，我們確實解決了這個問題，Paul 在電話中。但再次回顧一下，我們已經讓加利福尼亞的兩家工廠獲得了加利福尼亞生產者激勵計劃的資格，該計劃取決於加利福尼亞通過的最終預算，我們希望這將在 9 月的某個時間進行。我們相信，結合從 1 月 1 日開始為加利福尼亞生產的乙醇提供特殊優勢的低碳燃料標準，我們處於啟動工廠的有利位置。但這將取決於我提到的因素、市場的整體經濟狀況，以及最終工廠所有者是否同意啟動工廠。

So that kind of gives a time schedule, all things working out, some time early next year?

所以那種給出了一個時間表，所有的事情都解決了，明年年初的某個時間？

That would certainly be allottable objective. We think that the market will need those gallons by then.

那肯定是可分配的目標。我們認為到那時市場將需要這些加侖。

Very good. And secondly, on the remaining debt to Lyles, I guess the principal is $12.5 million, but there's also fees and accrued interest. What's the total debt there?

很好。其次，對於萊爾斯的剩餘債務，我猜本金是 1250 萬美元，但還有費用和應計利息。那裡的總債務是多少？

With interest and fees, the total is about $16.5 million.

加上利息和費用，總額約為 1650 萬美元。

Okay, very good. Thank you very much.

好的，非常好。非常感謝。

(Operator Instructions).

（操作員說明）。

Our next question comes from [Robert Dulow] with [Pet Stop].

我們的下一個問題來自 [Robert Dulow] 和 [Pet Stop]。

Hi. I was just curious if you could give a probability of buying the 25% of those companies?

你好。我只是好奇你能否給出購買這些公司 25% 的概率？

I really can't give a probability on that. I can just say as I did say in the prepared remark,s that we are exploring all of our options and alternatives in that regard. And do feel that it makes sense for us to have an ownership position. But that is going to be contingent upon adequate financing, and a program, that is in a structure that is accretive to our shareholders. And we are certainly spending a lot of time analyzing that, evaluating that and we'll make that determination when the time is right.

我真的不能給出一個概率。我可以說就像我在準備好的評論中所說的那樣，我們正在探索這方面的所有選擇和替代方案。並且確實覺得擁有所有權對我們來說是有意義的。但這將取決於充足的融資和計劃，該計劃的結構可以增加我們的股東。我們當然會花費大量時間來分析、評估它，我們會在適當的時候做出決定。

Okay. Thank you.

好的。謝謝你。

(Operator Instructions).

（操作員說明）。

I'm not showing any further questions at this time. I would like to turn it back over for closing comments.

我目前沒有提出任何進一步的問題。我想把它翻過來以結束評論。

Thank you. And thank you all for joining us today. Today, 2010 has been pivotal, market conditions have improved. The plants have exited bankruptcy. We are managing the operating plants efficiently. Kinergy has demonstrated substantial traction and growth. In summary, we are stabilizing our foundation, and are creating a solid growth platform. In addition, there are great growth opportunities that would be augmented by potential positive regulatory changes. Again, thank you for joining us on the call, and have a nice day.

謝謝你。感謝大家今天加入我們。如今，2010年已經是舉足輕重的一年，市場狀況有所好轉。這些工廠已經退出破產程序。我們正在有效地管理運營工廠。 Kinergy 已顯示出巨大的吸引力和增長。總而言之，我們正在穩固我們的基礎，並正在創造一個堅實的增長平台。此外，潛在的積極監管變化將增加巨大的增長機會。再次感謝您加入我們的電話，祝您有美好的一天。

Thank you, ladies and gentlemen. Thank you for your participation in today's conference. This does conclude the conference. You may now disconnect. Good day.

謝謝你們，女士們，先生們。感謝您參加今天的會議。這確實結束了會議。您現在可以斷開連接。再會。