Alto Ingredients Inc (ALTO) 2013 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Pacific Ethanol, Inc. first-quarter 2013 financial results call. At this time, all participants are in a listen-only mode. Later we will conduct question-and-answer session and instructions will be given at that time. As a reminder, this conference call is being recorded.

女士們，先生們，美好的一天，歡迎參加 Pacific Ethanol, Inc. 2013 年第一季度財務業績電話會議。此時，所有參與者都處於只聽模式。稍後我們將進行問答環節，屆時將給出說明。提醒一下，正在錄製此電話會議。

I would now like to turn the conference over to your host, Becky Herrick, LHA. You may begin.

我現在想將會議轉交給您的主持人 Becky Herrick，LHA。你可以開始了。

Thank you, Operator. Thank you, everyone, for joining us today for the Pacific Ethanol first-quarter 2013 results conference call. On the call today are Neil Koehler, President and CEO; and Bryon McGregor, CFO. Neil will begin with a review of business highlights, and then Bryon will provide details on the Company's financial and operating results. Neil will then return to discuss Pacific Ethanol's outlook, and open the call for questions.

謝謝你，接線員。感謝大家今天參加太平洋乙醇公司 2013 年第一季度業績電話會議。今天的電話會議是總裁兼首席執行官 Neil Koehler；和首席財務官布賴恩·麥格雷戈。 Neil 將首先回顧業務亮點，然後 Bryon 將提供有關公司財務和運營結果的詳細信息。 Neil 隨後將返回討論 Pacific Ethanol 的前景，並開始提問。

Before we get underway, let me first inform you that Pacific Ethanol issued a press release yesterday that provides details of the Company's quarterly results. The Company also prepared a presentation for today's conference call that is available for download on the Company's website, at pacificethanol.net. If you have any questions, please call LHA at 415-433-3777.

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業績的詳細信息。公司還為今天的電話會議準備了一份演示文稿，可在公司網站 pacificethanol.net 上下載。如果您有任何問題，請致電 415-433-3777 聯繫 LHA。

A telephone replay of today's call will be available until midnight Eastern Time on May 16, the details for which are included in yesterday's press release. A webcast replay will also be available at Pacific Ethanol's website.

今天的電話重播將持續到東部時間 5 月 16 日午夜，詳細信息包含在昨天的新聞稿中。 Pacific Ethanol 的網站也將提供網絡重播。

Please note that information in this call speaks only as of today, May 9, 2013, and therefore you are advised that time-sensitive information may no longer be accurate at the time of any replay. Please refer to the Company's Safe Harbor statement on slide 2 the presentation available online, which says that some of the comments in this presentation may constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, Company performance, and financial results.

請注意，本次電話會議中的信息僅適用於今天，即 2013 年 5 月 9 日，因此建議您在任何重播時，時間敏感信息可能不再準確。請參閱公司在幻燈片 2 上的安全港聲明，該演示文稿可在線獲取，其中表示本演示文稿中的某些評論可能構成前瞻性陳述，反映管理層當前的觀點和對未來經濟狀況、行業狀況、公司業績的估計，和財務結果。

Forward-looking statements are based on many assumptions and factors. Any changes in such assumptions or factors could produce significantly different results. Information about potential factors that could affect the Company's financial results is available in the Company's risk factors, as updated in the Company's SEC filings. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements as a result of new information or future events.

前瞻性陳述基於許多假設和因素。此類假設或因素的任何變化都可能產生顯著不同的結果。有關可能影響公司財務業績的潛在因素的信息可在公司的風險因素中獲得，並在公司向美國證券交易委員會提交的文件中更新。在適用法律允許的範圍內，公司不承擔因新信息或未來事件而更新任何前瞻性陳述的義務。

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. The Company defines adjusted EBITDA as unaudited earnings before interest, taxes, depreciation and amortization, and warrant inducements and fair value adjustment. To support the Company's review of non-GAAP information later in this call, a reconciling table is included in yesterday's press release.

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。非公認會計原則財務措施應被視為根據公認會計原則確定的報告財務結果的補充，而不是替代。公司將調整後的 EBITDA 定義為未經審計的利息、稅項、折舊和攤銷前收益以及權證誘因和公允價值調整。為了支持公司稍後在本次電話會議中對非公認會計原則信息的審查，昨天的新聞稿中包含了一個核對錶。

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, Becky, and thank you all for joining us this morning. 2013 is off to a promising start, as we have accomplished key goals over the last several months that are augmented by improvements in the ethanol market. In particular, we have a plan in place to eliminate all our debt due in June 2013. The key components includes the reverse stock split and shareholder approval of the recently completed convertible debt financing.

謝謝你，貝基，謝謝大家今天早上加入我們。 2013 年開局良好，因為我們在過去幾個月中實現了關鍵目標，而乙醇市場的改善進一步增強了這些目標。特別是，我們制定了一項計劃，以消除我們在 2013 年 6 月到期的所有債務。關鍵部分包括反向股票分割和股東批准最近完成的可轉換債務融資。

These steps, in addition to the recent improvements made to our balance sheet and our increased ownership in the Pacific Ethanol plants to 83% put us in a more favorable position to benefit as the overall market environment is strengthening. In fact, revenue was up 14%, and gross profit increased by $8 million when compared to the same period last year. Improvements in gross and operating margins in the latter part of the first quarter contributed to a positive adjusted EBITDA of $355,000, a $3 million improvement over the same quarter last year.

除了最近對我們的資產負債表進行的改進以及我們將太平洋乙醇工廠的所有權增加到 83% 之外，這些步驟使我們處於更有利的位置，可以隨著整體市場環境的加強而受益。事實上，與去年同期相比，收入增長了 14%，毛利潤增加了 800 萬美元。第一季度後期毛利率和營業利潤率的改善促成了 355,000 美元的正調整 EBITDA，比去年同期增加了 300 萬美元。

Now I would like to briefly review our recent accomplishments and progress. This quarter, we refinanced all but $4 million of the remaining plant debt. We executed on our strategy to buy additional plant ownership at attractive valuations, compared with replacement costs and market valuations.

現在我想簡要回顧一下我們最近的成就和進展。本季度，我們為剩餘工廠債務中的 400 萬美元以外的所有債務進行了再融資。與重置成本和市場估值相比，我們執行了以有吸引力的估值購買額外工廠所有權的策略。

With our ownership interest in the plants now at 83%, and in the current crush margin environment, we can better benefit from these valuable assets and have secured a competitive and low-cost ownership basis for our shareholders. At the current production margins, the plants are operating profitably. And they contribute significantly to the overall financials of the Company.

由於我們現在對工廠的所有權權益為 83%，並且在當前的壓榨利潤環境下，我們可以更好地從這些寶貴的資產中受益，並為我們的股東確保了具有競爭力和低成本的所有權基礎。在目前的生產利潤率下，這些工廠正在盈利。他們對公司的整體財務狀況做出了重大貢獻。

At the plants, we continue to drive efficiencies and increase yields. This is integral, as 1% improvement in yield will result in about a $3 million increase in gross margin annually, at current margins and operating rates. We are also focused on reducing energy use, thereby improving the carbon intensity of our ethanol, which in turn sells at a higher value in the California Low Carbon Fuel Standard markets.

在工廠，我們繼續提高效率並增加產量。這是不可或缺的，因為按照目前的利潤率和運營率，產量提高 1% 將導致每年毛利率增加約 300 萬美元。我們還專注於減少能源使用，從而提高乙醇的碳強度，從而在加州低碳燃料標準市場以更高的價格銷售。

Feedstock for the plants continues to be a mix of corn and sorghum. We benefit from being able to source feedstock from Midwest, local, and international markets. We are completing the corn oil separation projects at the Magic Valley and Stockton plants. We have experienced some construction delays related to customization of corn oil systems to meet the requirements of our plants. We are confident these units will operate efficiently and provide immediate incremental earnings to the plants, as we sell into the feed and biodiesel markets. We expect to begin producing corn oil at Magic Valley in May, and be fully operational in this second quarter. We expect to bring the corn oil system at our Stockton plant online early in the third quarter.

植物的原料仍然是玉米和高粱的混合物。我們受益於能夠從中西部、本地和國際市場採購原料。我們正在完成魔術谷和斯托克頓工廠的玉米油分離項目。我們經歷了一些與玉米油系統定制相關的建設延誤，以滿足我們工廠的要求。我們有信心這些單位將有效運作，並在我們向飼料和生物柴油市場銷售時為工廠提供即時的增量收益。我們預計將於 5 月在 Magic Valley 開始生產玉米油，並在第二季度全面投入運營。我們預計將在第三季度初將我們斯托克頓工廠的玉米油系統上線。

In the latter half of the first quarter, and so far the second quarter, production margins have recovered to more favorable levels, while the supply and demand for ethanol have achieved a much better balance. We are optimistic about the second quarter, as April production margins demonstrated an even greater improvement, especially when compared to the historic lows experienced in 2012.

一季度後半期，二季度至今，生產利潤率恢復到較為有利的水平，而乙醇的供需平衡也得到了較好的平衡。我們對第二季度持樂觀態度，因為 4 月份的生產利潤率顯示出更大的改善，尤其是與 2012 年的歷史低點相比。

Our financial and operational achievements, combined with recovery in the industry, contributed to better financial results. In view of these improving results, and steps we have taken to improve our balance sheet, we are better capitalized and positioned to execute on our current initiatives.

我們的財務和運營成就，加上行業復甦，為更好的財務業績做出了貢獻。鑑於這些改善的結果，以及我們為改善資產負債表所採取的步驟，我們擁有更好的資本並有能力執行我們當前的計劃。

The near-term industry outlook is improving, and the long-term outlook remains positive. Fundamental industry drivers demonstrate the sustainable opportunity for ethanol production as the renewable fuel standard, or RFS, supports a steady growth in ethanol demand. In addition to reducing the US dependence on foreign oil, the RFS stimulates investment in domestic renewable energy, which diversifies the nation's energy sources and results in reducing greenhouse gas emissions from transportation fuels.

近期行業前景正在改善，長期前景依然樂觀。基本行業驅動因素表明乙醇生產的可持續機會，因為可再生燃料標准或 RFS 支持乙醇需求的穩定增長。除了減少美國對外國石油的依賴外，RFS 還刺激了對國內可再生能源的投資，這使國家的能源多樣化，並減少了交通燃料的溫室氣體排放。

The additional gallons of renewable fuel required to meet the RFS will primarily come from advanced biofuels, which can be well integrated within existing ethanol plants. An important part of our long-term strategy is to process corn, other grains, and cellulosic feedstocks for production of advanced biofuels. It is our goal to produce advanced biofuels at each of our facilities.

滿足 RFS 所需的額外加侖可再生燃料將主要來自先進的生物燃料，這些燃料可以很好地整合到現有的乙醇工廠中。我們長期戰略的一個重要部分是加工玉米、其他穀物和纖維素原料以生產先進的生物燃料。我們的目標是在我們的每個設施中生產先進的生物燃料。

Also, ethanol prices continue to trade at a discount to gasoline prices. Increasing ethanol blends, as supported by the RFS, is a practical and immediate opportunity to reduce the price of gasoline for consumers. Demand for ethanol will be supported by increasing the blend level to 15%, as supported by the EPA's E15 approval. We are confident, as consumers are given true choice at the pump, and refiners blend E15 to meet the requirements of the RFS, we will see higher inclusion rates of ethanol and other renewable fuels in the nation's fuel supply.

此外，乙醇價格繼續以低於汽油價格的價格交易。在 RFS 的支持下，增加乙醇混合物是降低消費者汽油價格的切實可行的直接機會。正如 EPA 的 E15 批准所支持的那樣，將混合水平提高到 15% 將支持對乙醇的需求。我們有信心，隨著消費者在泵上獲得真正的選擇，並且煉油廠混合 E15 以滿足 RFS 的要求，我們將看到乙醇和其他可再生燃料在國家燃料供應中的包含率更高。

I would like now to turn the call over to our CFO, Bryon McGregor, to review the numbers. Bryon?

我現在想將電話轉給我們的首席財務官 Bryon McGregor，以查看這些數字。布賴恩？

Thank you, Neil. For the first quarter of 2013 we reported net sales of $225 million, compared to $198 million in the first quarter of 2012. The growth in net sales reflects an increase in average sales price per gallon of ethanol sold, from $2.34 to $2.60. Gross profit for the first quarter of 2013 was $850,000 compared to a gross loss of $7.5 million in the first quarter of 2012 due to improvements in crush and commodity margins in the latter part of the quarter.

謝謝你，尼爾。 2013 年第一季度，我們報告的淨銷售額為 2.25 億美元，而 2012 年第一季度為 1.98 億美元。淨銷售額的增長反映了每加侖乙醇的平均銷售價格從 2.34 美元增加到 2.60 美元。 2013 年第一季度的毛利潤為 850,000 美元，而 2012 年第一季度的毛虧損為 750 萬美元，原因是該季度後期壓榨和商品利潤率的提高。

SG&A expenses were $4 million in the first quarter of 2013. SG&A would have been materially lower but for one-time professional expenses incurred to complete our financing transactions. Consolidated net loss was $6.6 million, a 53% reduction from the loss of $14 million in March 2012, driven by significantly better margins. Although consolidated loss declined 53%, because our ownership and Pacific Ethanol plants increased from an average of 34% last year to an average of 80% this year, we absorbed more of the current-quarter losses incurred at the Pacific Ethanol plant level, resulting in a net loss available to common stockholders at $5.8 million, compared to $5.3 million last year.

2013 年第一季度的 SG&A 費用為 400 萬美元。如果不考慮為完成我們的融資交易而產生的一次性專業費用，SG&A 會大幅減少。綜合淨虧損為 660 萬美元，比 2012 年 3 月的虧損 1400 萬美元減少了 53%，主要是由於利潤率顯著提高。雖然綜合虧損下降了 53%，但由於我們的所有權和太平洋乙醇工廠從去年的平均 34% 增加到今年的平均 80%，我們吸收了更多在太平洋乙醇工廠層面發生的本季度虧損，導致普通股股東的淨虧損為 580 萬美元，而去年為 530 萬美元。

Adjusted EBITDA, which excludes warrant inducement and fair value adjustments, was a positive $355,000 in the first quarter of 2013, compared to a negative $2.5 million in the first quarter of 2012.

2013 年第一季度調整後的 EBITDA（不包括權證誘導和公允價值調整）為正 355,000 美元，而 2012 年第一季度為負 250 萬美元。

Turning to our balance sheet, cash and cash equivalents were $4.2 million at March 31, 2013, compared to $7.6 million at December 31, 2012. This reduction in cash is attributable to our decision to use $2 million to retire senior debt, and an additional $2 million to purchase plant debt and equity, thereby strengthening our balance sheet and lowering interest expense. As of March 31, we had total unused lines of credit of over $22 million, with immediate access to $13 million in availability.

轉向我們的資產負債表，截至 2013 年 3 月 31 日，現金和現金等價物為 420 萬美元，而 2012 年 12 月 31 日為 760 萬美元。現金減少的原因是我們決定使用 200 萬美元來償還高級債務，以及額外的200 萬美元用於購買工廠債務和股權，從而加強我們的資產負債表並降低利息支出。截至 3 月 31 日，我們的未使用信貸額度總額超過 2200 萬美元，可立即使用 1300 萬美元。

Working capital for the Company declined $2.7 million to $42.3 million at the end of March, from $45 million at the end of 2012. Our still-strong working capital position reflects the benefits of our ongoing efforts to maintain a solid liquidity level.

公司的營運資金從 2012 年底的 4,500 萬美元下降到 3 月底的 270 萬美元至 4,230 萬美元。我們仍然強勁的營運資金狀況反映了我們持續努力保持穩定流動性水平的好處。

I'd like to provide additional perspective on the increased ownership of the Pacific Ethanol plants, from 34% to 83% over the past 12 months. Although increasing our equity interest in plant assets by almost 2.5 times in a [poorer] margin environment negatively impacted earnings, we believed last year's margins were unsustainable, and that the spread between corn and ethanol prices would improve. Consequently, as opportunities arose, we increased our ownership interest in the plant assets at a significant discount to market and replacement value.

我想就過去 12 個月太平洋乙醇工廠的所有權從 34% 增加到 83% 提供更多的觀點。儘管在[較差的]利潤率環境中將我們在植物資產中的股權增加近 2.5 倍對收益產生了負面影響，但我們認為去年的利潤率是不可持續的，玉米和乙醇價格之間的價差將會改善。因此，隨著機會的出現，我們以相對於市場和重置價值的大幅折扣增加了我們對工廠資產的所有權權益。

We also refinanced significant portions of short-term debt with lower-cost, longer-maturing facilities, while addressing the Company's liquidity and working capital needs. Although this has required the periodic use of equity with inherent dilution, these actions have always been done with the shareholders' best interests in mind, and with the intent to increase the earning potential of the Company; establish greater control over core assets; and improve long-term returns for shareholders.

我們還通過成本更低、期限更長的融資為大部分短期債務進行了再融資，同時滿足了公司的流動性和營運資金需求。儘管這需要定期使用具有內在稀釋性的股權，但這些行動始終以股東的最佳利益為出發點，並旨在增加公司的盈利潛力；加強對核心資產的控制；並提高股東的長期回報。

In the current positive operating margin environment, we are beginning to see the multiple benefits from these actions; and expect, with sustained or improved commodity margins, to produce increasingly positive results. Last week we announced our decision to adjourn our special meeting of stockholders from April 30 to May 10. While a significant majority of the votes received are in favor of the proposal, insufficient votes have been received to achieve a majority of the outstanding shares required to effectuate a reverse split.

在當前積極的營業利潤率環境下，我們開始看到這些行動帶來的多重好處；並期望在商品利潤率持續或提高的情況下產生越來越積極的結果。上週，我們宣布決定從 4 月 30 日至 5 月 10 日將我們的股東特別會議休會。雖然收到的絕大多數票贊成該提案，但沒有收到足夠的票數來實現發行所需的大多數流通股。實現反向拆分。

We strongly believe this proposal is in the best interest of Pacific Ethanol and its shareholders, as a reverse split is necessary for the Company to retain its listing on the NASDAQ capital market by raising the trading range of the Company's stock above $1, the minimum bid price needed to remain compliant with NASDAQ's listing standards.

我們堅信這一提議符合太平洋乙醇公司及其股東的最佳利益，因為通過將公司股票的交易區間提高到最低出價 1 美元以上，公司有必要進行反向拆分，以保持其在納斯達克資本市場的上市地位價格需要保持符合納斯達克的上市標準。

Our shareholders benefit from an active liquid market and well-regulated exchange in which to trade our stock. Retaining a liquid market for our stock is important to our shareholders and to the Company. And retaining our listing on the NASDAQ capital market is a condition of our senior lenders, and integral to our plans to service the plant debt due this June.

我們的股東受益於活躍的流動性市場和監管良好的交易所交易我們的股票。為我們的股票保持流動性市場對我們的股東和公司都很重要。保留我們在納斯達克資本市場的上市是我們高級貸款人的條件，也是我們為今年 6 月到期的工廠債務償還計劃不可或缺的一部分。

Independent governance advisors, ISS and Glass Lewis, have both recommended that shareholders vote in favor. ISS recently reaffirmed their recommendation in response to the recent adjournment. Shareholders who have not yet voted are urged to review our press release issued on April 30 for directions on voting by telephone or over the Internet. These directions are also posted on our website.

獨立治理顧問 ISS 和 Glass Lewis 均建議股東投贊成票。國際空間站最近重申了他們的建議，以回應最近的休會。敦促尚未投票的股東查看我們於 4 月 30 日發布的新聞稿，以了解有關通過電話或互聯網投票的指示。這些指示也發佈在我們的網站上。

In summary, we are focused on shareholder value. Decisions to raise equity and equitize debt have been made only after pursuing all viable alternatives and determining the path that either best preserves or enhances shareholder value. Having done so, we have been able to increase plant yields, reduce costs, improve operating margins, and comply with our debt obligations. Any decision in the future to use equity will be, as always, with a focus toward accretive investments.

總之，我們專注於股東價值。只有在尋求所有可行的替代方案並確定最能保留或提高股東價值的路徑之後，才能做出提高股權和將債務股權化的決定。這樣做之後，我們已經能夠提高工廠產量、降低成本、提高營業利潤率並遵守我們的債務義務。未來任何使用股權的決定都將一如既往地專注於增值投資。

With that, I'd like to return the call to Neil.

有了這個，我想給尼爾回電話。

Thanks, Bryon. We are off to a strong start so far in 2013. And we are cautiously optimistic the improved production margins will continue and ethanol demand will increase, bringing growth to the industry and our Company. Furthermore, we believe Pacific Ethanol presents a compelling value proposition to investors.

謝謝，布賴恩。到目前為止，我們在 2013 年開局良好。我們謹慎樂觀地認為，利潤率將繼續提高，乙醇需求將增加，從而為行業和公司帶來增長。此外，我們認為 Pacific Ethanol 為投資者提供了極具吸引力的價值主張。

First, the long-term demand for ethanol remains strong. Federal and state regulations, such as the RFS and California Low Carbon Fuel Standard, require the increased use of renewable fuels. In addition, ethanol continues to trade at a discount that of gasoline, providing a clear economic incentive to refiners and consumers. Refiners are further incented to blend at higher levels, as ethanol's high-octane content establishes it as the highest performing fuel in the market.

首先，乙醇的長期需求依然強勁。聯邦和州法規，例如 RFS 和加利福尼亞低碳燃料標準，要求增加使用可再生燃料。此外，乙醇繼續以低於汽油的價格交易，為煉油商和消費者提供了明顯的經濟激勵。由於乙醇的高辛烷值使其成為市場上性能最高的燃料，因此進一步激勵煉油廠進行更高水平的混合。

Second, our destination model and West Coast locations are distinctive competitive advantages. Our model enables us to reduce costs related to transporting ethanol and co-products, lowers our carbon footprint, and provides low carbon fuel into California markets, for which we receive today an approximate $0.035 per gallon premium. In addition, our proximity to local markets provides quick and reliable access to ethanol and feed customers, as well as optimizes the quality and supply of our feedstock.

其次，我們的目的地模式和西海岸位置具有鮮明的競爭優勢。我們的模型使我們能夠降低與運輸乙醇和副產品相關的成本，降低我們的碳足跡，並為加利福尼亞市場提供低碳燃料，我們今天收到每加侖約 0.035 美元的溢價。此外，我們靠近當地市場，可以快速可靠地接觸乙醇和飼料客戶，並優化我們原料的質量和供應。

Third, Pacific Ethanol is poised to capitalize on growth in our market. We have taken a number of steps recently to address debt obligations, improve our balance sheet, and increase our ownership in the Pacific Ethanol plants. We are confident that the steps we have taken to date have put us on strong footing for profitable growth as the markets continue to improve.

第三，太平洋乙醇準備利用我們市場的增長。我們最近採取了一些措施來解決債務問題，改善我們的資產負債表，並增加我們在太平洋乙醇工廠的所有權。我們相信，隨著市場的不斷改善，我們迄今為止所採取的措施已使我們為實現盈利增長奠定了堅實的基礎。

We remain committed to our strategic goals for 2013. We intend to continue to improve operating efficiencies at the plants, diversify our revenue and feedstock, increase product values by further reducing the carbon intensity of our ethanol, and return the Company to profitability. We look forward to keeping you updated on our progress.

我們仍然致力於實現 2013 年的戰略目標。我們打算繼續提高工廠的運營效率，使我們的收入和原料多樣化，通過進一步降低乙醇的碳強度來提高產品價值，並使公司恢復盈利。我們期待您隨時了解我們的進展。

With that, Mercy, I'd like to open the call for questions.

有了這個，Mercy，我想打開提問的電話。

(Operator Instructions). Paul Resnik, Uncommon Equities.

（操作員說明）。 Paul Resnik，稀有股票。

With regard to corn oil, what level of production would you expect from a 60-million-gallon plant?

關於玉米油，您預計 6000 萬加侖工廠的產量是多少？

That works out to be, I believe, about 5 million gallons, at the industry average and target. And we expect to hit this and above; it would be about 0.6 pounds of corn oil per bushel of corn used.

我相信，按行業平均水平和目標計算，這大約是 500 萬加侖。我們希望達到這個及以上；每蒲式耳使用的玉米大約需要 0.6 磅玉米油。

Okay. And what's the current price of corn oil in the marketplace?

好的。目前市場上玉米油的價格是多少？

It is running at $0.40 a pound; that would be a FOB value at our plants. Really, it's that or slightly above. It's been a very strong market. And we see great opportunities in both the feed, but also as we look forward in California, the value of biodiesel is being very material in meeting the Low Carbon Fuel Standard.

它的價格為每磅 0.40 美元；這將是我們工廠的 FOB 值。真的，就是這樣或略高於。這是一個非常強勁的市場。我們在飼料中看到了巨大的機會，而且正如我們在加利福尼亞州所展望的那樣，生物柴油的價值在滿足低碳燃料標準方面非常重要。

It's been noted that you're diversifying your feedstock. Now, corn prices -- and, of course, now we're waiting for drier weather to hit the Midwest -- but assuming that if the crop does progress, corn prices are now, in the out months, down to $5.30, $5.40, $5.50. If corn were to go below $5, how competitive with sorghum be as a feedstock?

有人注意到您正在使您的原料多樣化。現在，玉米價格——當然，現在我們正在等待乾燥的天氣襲擊中西部——但假設如果作物確實取得進展，玉米價格現在，在接下來的幾個月裡，將跌至 5.30 美元、5.40 美元， 5.50 美元。如果玉米價格低於 5 美元，作為原料，與高粱的競爭力如何？

Sorghum historically trades at a discount price to corn, regardless of where the corn price is, so we would expect that to continue. We also view sorghum as very integral into our efforts to reduce our carbon intensity in California, and to put us on a pathway to qualify for advanced biofuel status at the federal level. At which point, even if we were paying the same price for sorghum, it would be a significant advantage.

歷史上，無論玉米價格在哪裡，高粱的交易價格都低於玉米，因此我們預計這種情況會持續下去。我們還認為，高粱是我們在加州降低碳強度的努力中不可或缺的一部分，並使我們走上一條有資格獲得聯邦一級先進生物燃料地位的途徑。在這一點上，即使我們為高粱支付相同的價格，這將是一個顯著的優勢。

Okay.

好的。

We are very optimistic about the corn crop. You pointed out getting into the fields; that's, in many respects, a good problem to have, that we have as much soil moisture. And expectations are still very strong on a record corn crop.

我們對玉米收成非常樂觀。你指出要進入領域；從許多方面來說，這是一個很好的問題，即我們擁有同樣多的土壤水分。對創紀錄的玉米收成的預期仍然非常強烈。

It looks like next week might be a little sunnier in the Midwest. And with regard -- in your presentation, you support the concept of RFS. And of course the flip side of that is that there are people who oppose it. Could you give a little color on what's going on in Congress this spring?

看起來下週在中西部可能會更陽光一些。關於 - 在您的演示中，您支持 RFS 的概念。當然，另一方面是有人反對。您能否對今年春天國會發生的事情稍作說明？

Sure. I actually was back in Washington, DC, a week or so ago, and there have been bills introduced to modify or eliminate the RFS. It is our strong view, and the view of our industry experts and advocates, that there really is no appetite for modifying the RFS this year; that a bill will not make it through the Congress. It may make it through a committee or two and that would be the end of it.

當然。實際上，大約一周前，我回到了華盛頓特區，並且已經提出了修改或取消 RFS 的法案。我們強烈的觀點以及我們行業專家和倡導者的觀點是，今年確實沒有修改 RFS 的興趣；一項法案不會通過國會。它可能會通過一兩個委員會，這將是它的結束。

The RFS continues to be the best energy policy we have ever had in reducing our dependence on foreign oil. There continues to be very strong, bipartisan support. As I think, as we are seeing a very strong corn crop and seeing $1 come off the price of corn in the last month or so -- and as you pointed out, the forward curve shows another $1 coming off -- that that undermines a lot of the arguments against the RFS.

RFS 仍然是我們減少對外國石油依賴的最佳能源政策。仍然有非常強大的兩黨支持。正如我認為的那樣，由於我們看到玉米收成非常強勁，並且在過去一個月左右的時間裡玉米價格下跌了 1 美元——正如你所指出的，遠期曲線顯示又下跌了 1 美元——這破壞了很多反對RFS的論點。

So we remain confident the RFS stays in place, and is a strong engine of growth for the Company and the industry.

因此，我們仍然相信 RFS 將繼續存在，並且是公司和行業增長的強大引擎。

With regard to ethanol, I noticed the May 3 supply inventory levels -- ethanol stocks -- were 16.8 million barrels. And that's the lowest since November of 2011, and seasonally way off the 20 million, 21 million in the past couple of years. Is there any possibility that -- I know this is mind-boggling -- that some markets may find themselves with a tight ethanol supply?

關於乙醇，我注意到 5 月 3 日的供應庫存水平——乙醇庫存——為 1680 萬桶。這是自 2011 年 11 月以來的最低值，季節性地低於過去幾年的 2000 萬和 2100 萬。有沒有可能——我知道這令人難以置信——一些市場可能會發現自己的乙醇供應緊張？

Well, with the very tight supply of railcars -- and this has benefited us, where we don't use railcars to move our ethanol that we produce -- we have seen some tightness, and that's we've seen some very strong ethanol prices out West. The market is being supplied; the market will continue to be supplied there. We always see some imports, when the market does domestically get so tight that there are issues in regards to meeting the demand. So we are very confident that the industry will continue to meet the demand, and the growing demand, for ethanol.

好吧，由於軌道車供應非常緊張——這使我們受益，我們不使用軌道車來運輸我們生產的乙醇——我們看到了一些供應緊張，那就是我們看到了一些非常強勁的乙醇價格西出。市場正在供應；那裡的市場將繼續供應。當國內市場確實變得如此緊張以至於在滿足需求方面存在問題時，我們總是會看到一些進口產品。因此，我們非常有信心該行業將繼續滿足對乙醇的需求以及不斷增長的需求。

What you point out, though, is true. We have -- inventories are lower than they've been in 18 months. We finally have hit an inventory level that matches the 20 day supply that is considered to be a relatively tight supply/demand balance. That is why we are seeing good margins in the business. We hope that the industry continues to maintain a discipline so that we don't expand those inventories back to levels that tend to depress margins.

不過，你指出的是真的。我們有 - 庫存低於 18 個月以來的水平。我們終於達到了與 20 天供應量相匹配的庫存水平，這被認為是供需平衡相對緊張。這就是為什麼我們在業務中看到了良好的利潤率。我們希望該行業繼續保持紀律，這樣我們就不會將這些庫存擴大到傾向於壓低利潤率的水平。

Very good. That's all I have this morning.

很好。這就是我今天早上所擁有的一切。

Thank you very much, Paul.

非常感謝你，保羅。

Sure.

當然。

Thank you. We have no more questions. Thank you, I'll turn the call over to Neil Koehler for closing remarks.

謝謝你。我們沒有更多的問題。謝謝，我將把電話轉給 Neil Koehler 做結束語。

Mercy, thank you. And thank you, again, everybody, for joining us. We appreciate your interest and support of Pacific Ethanol. And we look forward to speaking with you again soon. Have a great day.

慈悲，謝謝。再次感謝大家加入我們。感謝您對 Pacific Ethanol 的關注和支持。我們期待很快再次與您交談。祝你有美好的一天。

Ladies and gentlemen, this does conclude today's conference. You may now disconnect. Thank you.

女士們，先生們，今天的會議到此結束。您現在可以斷開連接。謝謝你。