Alto Ingredients Inc (ALTO) 2017 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Pacific Ethanol Inc.

女士們，先生們，美好的一天，歡迎來到太平洋乙醇公司。

Fourth Quarter and Year-end 2017 Financial Results Call.

2017 年第四季度和年底財務業績電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員說明）作為提醒，本次會議正在錄製中。

I would now like to introduce your host for today's conference, Ms. Kirsten Chapman, LHA Investor Relations.

我現在想介紹一下今天會議的主持人，LHA 投資者關係部的 Kirsten Chapman 女士。

You may begin.

你可以開始了。

Thank you, Bruce.

謝謝你，布魯斯。

And thank you all for joining us today for the Pacific Ethanol Fourth Quarter and Year-end 2017 Results Conference Call.

感謝大家今天參加太平洋乙醇公司 2017 年第四季度和年終業績電話會議。

On the call today are Neil Koehler, President and CEO; and Bryon McGregor, CFO.

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 will begin with a review of business highlights.

尼爾將首先回顧業務亮點。

Bryon will provide a summary of financial and operating results, and then Neil will return to discuss Pacific Ethanol's outlook and open the call for questions.

Bryon 將提供財務和運營結果摘要，然後 Neil 將返回討論 Pacific Ethanol 的前景並開始提問。

Pacific Ethanol issued a press release yesterday providing details of the company's quarterly results.

Pacific Ethanol 昨天發布了一份新聞稿，提供了公司季度業績的詳細信息。

The company also prepared a presentation for today's call that is available on the company's website at pacificethanol.net.

該公司還為今天的電話會議準備了一份演示文稿，該演示文稿可在公司網站 pacificethanol.net 上查閱。

If you have any questions, please call LHA at 415-433-3777.

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 through March 8, the details of which are included in yesterday's press release.

今天的電話重播將持續到 3 月 8 日，詳細信息包含在昨天的新聞稿中。

A webcast replay will also be available at Pacific Ethanol's website.

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, March 1, and therefore, you are advised that the time-sensitive information may no longer be accurate at the time of any replay.

請注意，本次電話會議中的信息僅適用於今天 3 月 1 日，因此，請注意，在任何重播時，時間敏感信息可能不再準確。

Please refer to the company's safe harbor statement on Slide 2 of the presentation available online, which says that some of the comments in this presentation constitute forward-looking statements and considerations that involve a number of risks and uncertainties.

請參閱公司在網上提供的幻燈片 2 上的安全港聲明，該聲明表示，本演示文稿中的一些評論構成前瞻性陳述和考慮因素，涉及許多風險和不確定性。

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

Pacific Ethanol 的實際未來結果可能與這些陳述存在重大差異。

Factors that could cause or contribute to such differences include, but are not limited to, events, risks and other factors previously and from time to time disclosed in the company's -- Pacific Ethanol's filings with the SEC.

可能導致或促成此類差異的因素包括但不限於該公司之前和不時披露的事件、風險和其他因素——Pacific Ethanol 向美國證券交易委員會提交的文件。

Except as required by applicable law, the company assumes no obligation to update any forward-looking statements.

除適用法律要求外，公司不承擔更新任何前瞻性陳述的義務。

In management's prepared remarks, non-GAAP measures will be referenced.

在管理層準備好的評論中，將引用非公認會計原則措施。

Management uses these non-GAAP measures to monitor the financial performance of operations and believes these measures will assist investors in assessing the company's performance for the periods being reported.

管理層使用這些非公認會計原則措施來監控運營的財務業績，並相信這些措施將幫助投資者評估公司在報告期間的業績。

The company defines adjusted EBITDA as unaudited net income or loss attributed to Pacific Ethanol before interest expense, provision or benefit for income taxes, asset impairments, purchase accounting adjustments, fair value adjustments and depreciation and amortization expense.

該公司將調整後的 EBITDA 定義為在利息費用、所得稅準備金或福利、資產減值、採購會計調整、公允價值調整以及折舊和攤銷費用之前歸屬於太平洋乙醇的未經審計的淨收入或損失。

To support the company's review of non-GAAP measures information, later in this call, a reconciling table was included in yesterday's press release.

為了支持公司對非 GAAP 措施信息的審查，在本次電話會議的稍後部分，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.

現在，我很高興介紹總裁兼首席執行官 Neil Koehler。

Neil?

尼爾？

Thanks, Kirsten, and thanks to everyone for joining us today.

謝謝，克爾斯滕，感謝大家今天加入我們。

For the fourth quarter, net sales were $395 million, total gallons sold were 240 million.

第四季度淨銷售額為 3.95 億美元，總銷量為 2.4 億加侖。

We achieved a quarterly record of 150 million gallons of production gallons sold, reflecting the addition of Illinois Corn Processing, or ICP, assets in July.

我們實現了 1.5 億加侖生產量的季度銷售記錄，這反映了 7 月份伊利諾伊州玉米加工或 ICP 資產的增加。

Net loss available to common stockholders was $13.6 million and adjusted EBITDA was negative $273,000.

普通股股東可獲得的淨虧損為 1360 萬美元，調整後的 EBITDA 為負 273,000 美元。

Our results were impacted by several factors.

我們的結果受到幾個因素的影響。

First, the loss was primarily driven by a sharply lower average ethanol sales price per gallon during the quarter, compressing production margins.

首先，虧損主要是由於本季度每加侖乙醇平均銷售價格大幅下降，壓縮了生產利潤。

The industry's historically high inventory levels negatively impacted ethanol margins in the fourth quarter.

該行業的歷史高庫存水平對第四季度的乙醇利潤率產生了負面影響。

Only recently have we begun to see reductions in industry inventory levels resulting from lower ethanol production and higher domestic and export demand.

直到最近，我們才開始看到由於乙醇產量下降以及國內和出口需求增加而導致行業庫存水平下降。

In response to high inventory levels and lower margins, we began to moderate production in locations most impacted by margin compression and where we weren't otherwise contractually committed.

為了應對高庫存水平和較低的利潤率，我們開始在受利潤率壓縮影響最大的地區以及我們沒有在合同中做出承諾的地方放慢生產。

We also began to reduce contractual sales of third-party gallons and focus our sales efforts, as previously noted, around our production assets where we are best able to maximize profitability and contribute to greater pricing stability.

如前所述，我們還開始減少第三方加侖的合同銷售，並將我們的銷售工作集中在我們最能最大限度地提高盈利能力並有助於提高定價穩定性的生產資產上。

Our focus on managing production and rationalizing marketing volumes has, in part, contributed to improving margins and correcting supply and demand imbalances.

我們對生產管理和營銷量合理化的關注在一定程度上有助於提高利潤率和糾正供需失衡。

Industry ethanol inventories, which hit a record high at the beginning of the year, running 20% higher than the prior year period, are now slightly lower than last year as reported by the EIA this week against higher ethanol demand.

根據 EIA 本週報告，由於乙醇需求增加，工業乙醇庫存在年初創下歷史新高，比去年同期高 20%，現在比去年略低。

This has contributed to margins improving by about $0.15 per gallon from the lows in December.

這導致利潤率從 12 月的低點每加侖提高了約 0.15 美元。

For the full year of 2017, net sales were $1.6 billion, essentially flat year-over-year.

2017 年全年，淨銷售額為 16 億美元，與去年同期基本持平。

Net loss available to common stockholders was $36.2 million and adjusted EBITDA was $13.6 million.

普通股股東可獲得的淨虧損為 3620 萬美元，調整後的 EBITDA 為 1360 萬美元。

Total gallons sold were 952 million and production gallons sold were a record 527 million.

銷售的總加侖量為 9.52 億加侖，生產的銷售加侖量達到創紀錄的 5.27 億加侖。

We are confident we're heading into a stronger 2018 supported by an improved supply and demand balance, ongoing stable corn prices, a strong export market and increasing E15 adoption in the United States.

我們相信，在供需平衡改善、玉米價格持續穩定、出口市場強勁以及美國 E15 採用率增加的支持下，我們將進入更強勁的 2018 年。

Domestic gasoline demand in 2018 is running over 5% higher year-to-date than in 2017.

2018 年國內汽油需求比 2017 年高出 5% 以上。

Exports reached a record level of 1.37 billion gallons in 2017, a 17% increase over 2016, and we expect strong growth again in 2018.

2017 年出口達到創紀錄的 13.7 億加侖，比 2016 年增長 17%，我們預計 2018 年將再次強勁增長。

Also in 2018, we expect to see continued incremental growth in E15 availability and sales.

同樣在 2018 年，我們預計 E15 的可用性和銷售額將繼續增長。

E15 was available at more than 1,200 stations across 29 states as the year began, and we expect that to increase to over 2,000 stations by year-end.

今年年初，E15 在 29 個州的 1,200 多個車站提供，我們預計到年底將增加到 2,000 多個車站。

E15 is a great fuel for cars with a higher octane rating and lower cost at the pump than the standard 10% blends.

與標準的 10% 混合物相比，E15 是辛烷值更高且泵成本更低的汽車燃料。

We are working diligently with the entire industry for E15 and higher blends to gain RVP parity with the standard blend, which will allow it to be sold 12 months of the year across the country.

我們正在與整個行業密切合作，為 E15 和更高級別的混合物獲得與標準混合物相同的 RVP，這將使其能夠在一年中的 12 個月內在全國范圍內銷售。

The low cost, low carbon, high octane and growing supply of ethanol is driving new ethanol demand in transportation fuel markets.

低成本、低碳、高辛烷值和不斷增長的乙醇供應正在推動交通燃料市場對乙醇的新需求。

Our focus remains on implementing initiatives to build our long-term value.

我們的重點仍然是實施旨在建立我們長期價值的舉措。

We are a leading innovator in the ethanol industry, and we are focused on making the appropriate investments to reduce costs, improve our carbon score and support profitable operations.

我們是乙醇行業的領先創新者，我們專注於進行適當的投資以降低成本、提高我們的碳得分並支持盈利的運營。

Our July acquisition of ICP provided us with important product diversification by way of high-quality alcohol products, which help support stronger margins and lessen our exposure to commodity price fluctuations in the fuel, ethanol markets.

我們 7 月份收購 ICP 通過優質酒精產品為我們提供了重要的產品多樣化，這有助於支持更高的利潤率並減少我們在燃料乙醇市場中商品價格波動的風險。

Further, the integration of ICP is tracking well, and we are on target to achieve our goal of recognizing $4.5 million in cost synergies in 2018.

此外，ICP 的整合進展順利，我們有望在 2018 年實現 450 萬美元的成本協同效應。

Of our 2 natural gas-fired cogeneration units in our Stockton, California facility, one is now fully commissioned and power is being generated and used in production at the plant.

在我們位於加利福尼亞州斯托克頓的工廠的 2 台天然氣熱電聯產機組中，一台現已全面投產，正在發電並用於工廠的生產。

The second unit is still in the commissioning stage.

第二台機組仍處於調試階段。

The innovative system allows us to supplement natural gas with waste gases from our production process to deliver usable, clean electricity and steam production back to the plant.

創新系統使我們能夠用生產過程中產生的廢氣補充天然氣，從而將可用、清潔的電力和蒸汽產品輸送回工廠。

In addition to reducing energy purchases by an estimated $4 million annually when fully operational, cogeneration is expected to lower Stockton's carbon and nitrogen oxide emissions.

除了在全面投入運營後每年可減少約 400 萬美元的能源採購外，熱電聯產還有望降低斯托克頓的碳和氮氧化物排放量。

In terms of our previously announced plant improvement initiatives, we received an updated LCFS pathway from CARB for Madera, incorporating the benefit of our industrial scale membrane system.

就我們之前宣布的工廠改進計劃而言，我們收到了來自 CARB 的針對 Madera 的更新 LCFS 途徑，其中包含了我們工業規模膜系統的優勢。

We are realizing a 5% reduction in natural gas use at the plant.

我們正在實現工廠的天然氣使用量減少 5%。

We are in the process of evaluating the technology for potential implementation at other Pacific Ethanol facilities.

我們正在評估該技術，以便在其他 Pacific Ethanol 設施中實施。

We continue to produce commercial levels of cellulosic ethanol at our Stockton, Madera and Magic Valley plants.

我們繼續在斯托克頓、馬德拉和魔術谷工廠生產商業水平的纖維素乙醇。

The installation of the solar system at Madera is moving ahead on budget and on schedule pending interconnection with our local utility.

在馬德拉太陽能係統的安裝正在按預算和按時推進，等待與我們當地公用事業公司的互連。

The system is expected to reduce our utility costs by approximately $1 million annually and lower our carbon score.

該系統預計每年可將我們的公用事業成本降低約 100 萬美元，並降低我們的碳分數。

With that, I'll turn the call over to our CFO, Bryon McGregor.

有了這個，我將把電話轉給我們的首席財務官布賴恩·麥格雷戈。

Thank you, Neil.

謝謝你，尼爾。

Just a note before I comment specifically on our financial performance.

在我具體評論我們的財務業績之前，請注意。

Fourth quarter 2017 is the second quarter in which the operating results of ICP are consolidated with our quarterly results.

2017年第四季度是ICP的經營業績與我們的季度業績合併的第二個季度。

While we do not normally disclose detailed information on each plant's contribution, consistent with our reporting requirements for recent business combinations, we note that for the fourth quarter, ICP contributed approximately 10% of net sales and $2.3 million in pretax net income.

雖然我們通常不會披露每家工廠的貢獻的詳細信息，但符合我們對近期業務合併的報告要求，但我們注意到第四季度，ICP 貢獻了大約 10% 的淨銷售額和 230 萬美元的稅前淨收入。

I'll now provide a few highlights of the quarter and full year 2017.

我現在將提供 2017 年季度和全年的一些亮點。

For additional detail, you can refer to our results in our press release or related presentation for the full financials.

有關更多詳細信息，您可以在我們的新聞稿或相關演示文稿中參考我們的結果以獲取完整的財務數據。

For the fourth quarter 2017 compared to the fourth quarter of 2016, net sales were $395.3 million, down $46.4 million compared to $441.7 million, largely the result of a decline in our average sales price per gallon.

與 2016 年第四季度相比，2017 年第四季度的淨銷售額為 3.953 億美元，與 4.417 億美元相比下降了 4640 萬美元，這主要是由於我們每加侖的平均銷售價格下降。

Total gallons sold were 240 million, including record production gallons sold of 150 million, primarily attributable to our ICP acquisition.

總銷量為 2.4 億加侖，其中包括創紀錄的 1.5 億加侖銷量，主要歸功於我們的 ICP 收購。

We had an overall negative gross margin for the quarter due to compressed margins from lower average sales price per gallon.

由於每加侖平均銷售價格降低導致利潤率下降，我們本季度的總體毛利率為負。

Fourth quarter SG&A expenses, on an absolute basis, were relatively flat compared to the fourth quarter of 2016 and were in line with our 2017 guidance.

與 2016 年第四季度相比，第四季度的 SG&A 費用絕對值相對持平，符合我們 2017 年的指引。

It is notable that while our SG&A costs were unchanged, they now include expenses related to ICP.

值得注意的是，雖然我們的 SG&A 成本沒有變化，但它們現在包括與 ICP 相關的費用。

Bottom line, adjusted EBITDA was negative $273,000 compared to positive adjusted EBITDA of $27.4 million in the year-ago period.

總而言之，調整後的 EBITDA 為負 273,000 美元，而去年同期調整後的 EBITDA 為正 2740 萬美元。

For the full year 2017, net sales were $1.6 billion, consistent with the year-ago period, as the decrease in our average sales price per gallon was offset by higher total gallons sold, including record production volumes.

2017 年全年，淨銷售額為 16 億美元，與去年同期一致，因為我們每加侖平均銷售價格的下降被更高的總加侖銷量（包括創紀錄的產量）所抵消。

Significantly lower corn crush margins in 2017 as compared to 2016 negatively impacted our gross margin for the year, and our gross profit was $5.9 million compared to $54.4 million in 2016.

與 2016 年相比，2017 年玉米壓榨利潤率顯著下降，對我們今年的毛利率產生了負面影響，我們的毛利潤為 590 萬美元，而 2016 年為 5440 萬美元。

As a percentage of revenue, SG&A remained consistent in 2017.

SG&A 佔收入的百分比在 2017 年保持不變。

For 2018, we expect SG&A expenses to continue to approximate $34 million for the year or $8.5 million per quarter.

對於 2018 年，我們預計全年 SG&A 費用將繼續約為 3400 萬美元或每季度 850 萬美元。

Bottom line adjusted EBITDA was $13.6 million compared to $58.9 million in 2016.

底線調整後的 EBITDA 為 1360 萬美元，而 2016 年為 5890 萬美元。

I'd now like to briefly discuss the new federal tax bill that was in place by quarter-end.

我現在想簡要討論一下季度末出台的新聯邦稅收法案。

Under the new tax bill, we revalued our deferred tax liabilities resulting in a tax benefit of $300,000.

根據新的稅收法案，我們重新評估了我們的遞延所得稅負債，從而獲得了 300,000 美元的稅收優惠。

Given that a significant amount of our tax -- excuse me, given the significant amount of our deferred tax assets are comprised of net operating losses and are fully reserved, we expect any taxable income in 2018 would be offset, and thus, we would not expect an effective tax rate of any significance for the near future.

鑑於我們的大量稅收——對不起，鑑於我們的大量遞延所得稅資產由淨經營虧損組成並已完全保留，我們預計 2018 年的任何應稅收入都將被抵消，因此，我們不會預計在不久的將來會有任何重要的有效稅率。

Now turning to our balance sheet.

現在轉向我們的資產負債表。

Cash and cash equivalents were $49.5 million at December 31, 2017, compared to $64.3 million at December 31, 2016.

截至 2017 年 12 月 31 日，現金和現金等價物為 4950 萬美元，而 2016 年 12 月 31 日為 6430 萬美元。

Cash usage was primarily driven by our ICP acquisition.

現金使用主要是由我們的 ICP 收購推動的。

For the fourth quarter of 2017, our capital expenditures totaled $8 million, primarily related to plants' improvement initiatives.

2017 年第四季度，我們的資本支出總計 800 萬美元，主要與工廠的改進計劃有關。

This brings our 12-month total to $21 million.

這使我們 12 個月的總額達到 2100 萬美元。

For 2018, we currently expect our capital expenditures to approximate our 2017 spend.

對於 2018 年，我們目前預計我們的資本支出將接近 2017 年的支出。

We may adjust the amount based on industry economics and company performance.

我們可能會根據行業經濟和公司業績調整金額。

With that, I will return the call back to Neil.

有了這個，我會把電話回給尼爾。

Thank you, Bryon.

謝謝你，布賴恩。

Going into 2018, we are encouraged by the continued strength in gasoline demand, increasing penetration of higher ethanol blends and growing export opportunities.

進入 2018 年，我們對汽油需求的持續強勁、高級乙醇混合物的滲透率不斷提高以及出口機會的增長感到鼓舞。

The long-term growth in demand for ethanol continues to be supported by the octane, carbon and cost benefits of ethanol.

乙醇的辛烷值、碳和成本優勢繼續支持乙醇需求的長期增長。

Key to our strategy is to leverage our operating platform to drive growth.

我們戰略的關鍵是利用我們的運營平台來推動增長。

Our strategically located biorefineries enable us to serve multiple markets.

我們位於戰略位置的生物精煉廠使我們能夠服務於多個市場。

The diversity of our production, geography, technology, feedstocks and logistics helps mitigate exposure to commodity price risks.

我們的生產、地理、技術、原料和物流的多樣性有助於減輕商品價格風險。

And our focus on innovation supports our goal to increase efficiencies in yields through the implementation of plant improvements.

我們對創新的關注支持我們通過實施工廠改進來提高產量效率的目標。

With that, Bruce, I'd like to open the call for Q&A.

有了這個，布魯斯，我想打開問答電話。

(Operator Instructions) And our first question comes from the line of Eric Stine from Craig-Hallum.

（操作員說明）我們的第一個問題來自 Craig-Hallum 的 Eric Stine。

It's Aaron Spychalla on for Eric.

是埃里克的亞倫·斯皮查拉。

First, maybe on exports.

首先，也許是關於出口。

Can you kind of talk about your kind of overall expectation for 2018 and some of the markets that are driving that, maybe specifically China, with their kind of E10 goals over time?

您能否談談您對 2018 年的總體預期以及推動這一目標的一些市場，尤其是中國，以及隨著時間推移的 E10 目標？

And then Brazil with the ethanol tariff?

然後是巴西的乙醇關稅？

Yes.

是的。

As I've said in the prepared remarks, 1.7 -- a 17% increase year-over-year from '16' to '17 to that 1.37 billion gallons.

正如我在準備好的評論中所說，1.7 - 從“16”到“17”到 13.7 億加侖，同比增長 17%。

We anticipate a similar, if not greater, growth rate in 2018.

我們預計 2018 年的增長率會相似，甚至更高。

There have been -- sort of the conventional wisdom has been gravitating around at 1.6 billion to 1.8 billion gallons.

有 - 某種傳統觀念一直在吸引大約 16 億至 18 億加侖。

And certainly based on the exports that we're seeing in Q1, that appears to be a fair number.

當然，根據我們在第一季度看到的出口，這似乎是一個合理的數字。

We are now involved with exports with quite a bit of our product out of Nebraska going down to the Gulf.

我們現在參與出口，我們的相當多的產品從內布拉斯加州出口到海灣地區。

So we are definitely seeing the uptick in demand ourselves.

因此，我們自己肯定看到了需求的上升。

As it relates to China, they were virtually nothing in '17 and have already booked a few hundred million gallons, certainly, 200 million gallons of ethanol in the first half of this year.

就中國而言，他們在 17 年幾乎一無所有，並且已經預訂了幾億加侖，當然，今年上半年有 2 億加侖乙醇。

So we are seeing strong demand in support of their initiative to have 10% ethanol blends in place by 2020.

因此，我們看到支持他們到 2020 年實現 10% 乙醇混合物的倡議的強勁需求。

And there's a huge gap there between their 1 billion gallons of production and a 3.5 billion gallons requirement that, that 10% would represent.

他們 10 億加侖的產量和 35 億加侖的需求之間存在巨大差距，這 10% 將代表。

So we do see that.

所以我們確實看到了。

While they can be up and down, we see China as a very positive in this year and potentially years to come.

雖然它們可能會起起落落，但我們認為中國在今年和未來幾年都非常積極。

Brazil, with their initiatives to continue to support local blending as part of their carbon reduction target under the tariff's protocols, they still need ethanol.

巴西根據關稅協議繼續支持當地混合作為其碳減排目標的一部分，他們仍然需要乙醇。

They are structurally short.

它們在結構上很短。

And even with the tariff there, even though there is some discussion that the tariff might be lifted, they continue to be a very, very strong market as well.

即使有關稅，即使有一些關於關稅可能會取消的討論，它們仍然是一個非常非常強大的市場。

Seeing growth in the historic markets India.

看到印度歷史悠久的市場的增長。

With the cost benefits and octane benefits in markets like the Mid East, we're seeing that pickup and in other Asia markets as well.

憑藉中東等市場的成本效益和辛烷值優勢，我們看到這種回升以及其他亞洲市場也是如此。

So Canada continues to be the -- Brazil and Canada, they continue to be the workforces in terms of the outlets for our exports, but we are seeing growth in other markets as well.

因此，加拿大仍然是——巴西和加拿大，就我們的出口渠道而言，它們仍然是勞動力，但我們也看到其他市場的增長。

All right.

好的。

Good.

好的。

And then maybe on kind of RINs overall and potentially E15.

然後可能是整體上的 RIN，可能是 E15。

Can you just kind of give your latest thoughts on some of the meetings that are occurring or might be occurring?

您能否就一些正在或可能正在發生的會議發表您的最新想法？

And just whether -- if you get the year-round waver for E15, I mean, do you think that offsets some of the stuff that's been kind of rumored on the give side of things?

以及是否 - 如果你對 E15 全年都動搖，我的意思是，你認為這抵消了一些傳聞中的東西嗎？

Yes.

是的。

No question.

沒有問題。

And there's lots of discussion and lots of political intrigue out there.

那裡有很多討論和很多政治陰謀。

And there is a meeting today in the White House and -- from our industry's view, and we're very united in this position.

今天在白宮舉行了一次會議 - 從我們行業的角度來看，我們在這個立場上非常團結。

It's a very simple equation.

這是一個非常簡單的等式。

The RIN prices are high because we're not getting enough market access to blend more ethanol and other renewable fuels as the Renewable Fuel Standards intended to do.

RIN 價格很高，因為我們沒有足夠的市場准入來混合更多的乙醇和其他可再生燃料，因為可再生燃料標準打算這樣做。

And the RVP parity for E15 and higher blends would immediately resolve that issue.

E15 和更高混合的 RVP 平價將立即解決該問題。

The EPA has the discretion to make that happen.

EPA 有權自行決定是否實現這一目標。

It would result -- if it were done today, result in significantly more if E15 blended this summer.

結果是——如果今天完成，如果今年夏天 E15 混合，結果會顯著增加。

And with the ethanol that we sell at a discount to gasoline, at cash to that is basically a free RIN.

我們以比汽油折扣價出售的乙醇，以現金出售，基本上是免費的 RIN。

So it is a very, very simple equation that if we put more ethanol into the mix through -- to the 15% blends that we would resolve any RIN price volatility.

所以這是一個非常非常簡單的等式，如果我們將更多的乙醇加入到混合物中 - 到 15% 的混合物，我們將解決任何 RIN 價格波動。

RINs would drop to single digits, and the Renewable Fuel Standard would continue to be the great success that it is.

RIN 將降至個位數，而可再生燃料標準將繼續取得巨大成功。

There's no reason to trade that for anything because that is such a simple straightforward solution that protects the integrity of the RFS and continues to build this industry and provide the economic, environmental and energy security benefits that our fuel is delivering every day.

沒有理由用它來交換任何東西，因為這是一個如此簡單直接的解決方案，可以保護 RFS 的完整性，並繼續建立這個行業，並提供我們的燃料每天提供的經濟、環境和能源安全效益。

All right.

好的。

And then maybe last from me.

然後也許是我最後一次。

Just on a corn basis, in light of corn prices kind of increasing here recently.

就玉米而言，鑑於最近這裡的玉米價格有所上漲。

Can you just talk about that?

你能談談嗎？

And what you're seeing in the market today and kind of your outlook here in the near term?

您今天在市場上看到了什麼，以及您在短期內的前景如何？

Can you kind of keep that same basis number?

你能保持相同的基數嗎？

We've definitely seeing basis under pressure.

我們肯定看到基礎承壓。

Exports of corn have been up.

玉米出口增加。

There have been logistical issues.

存在後勤問題。

The board price has been at or in some cases, below the cost of production.

電路板價格已經或在某些情況下低於生產成本。

So there's certainly been a sentiment on the part of farmers not to sell at these prices and hold on in on-farm storage and in elevators to the corn.

因此，農民們肯定有一種情緒，不要以這些價格出售，而是保留在農場儲存和玉米電梯中。

And as the ethanol industry and other users of corn need the product, they have to bid it up through basis.

由於乙醇行業和其他玉米用戶需要該產品，他們必須通過基差來投標。

So we certainly have seen a firming of basis, probably even a bit more out West given that the freight issues.

因此，我們當然已經看到了堅實的基礎，考慮到運費問題，甚至可能更加穩固。

So basis is up in the quarter, but we anticipate, given that we have plenty of corn in storage and have a huge crop and projected to be another strong planting this spring that in the relative short term, that will resolve itself, and we will get basis numbers that are more historically normal over the last 1 to 2 years.

因此，本季度的基差有所上升，但我們預計，鑑於我們有大量玉米庫存並且有大量收成，預計今年春季將再次強勁播種，在相對短期內，這將自行解決，我們將獲得過去 1 到 2 年曆史上更正常的基數。

And our next question comes from the line of Craig Irwin from Roth Capital.

我們的下一個問題來自 Roth Capital 的 Craig Irwin。

Neil, I wanted to ask a little bit about spot margins, what you're seeing across the platform today and how volatile they've been in the last number of weeks?

尼爾，我想問一些關於現貨保證金的問題，你今天在整個平台上看到了什麼，以及過去幾週它們的波動性如何？

There's been a fair amount of volatility in margins in the ethanol industry for many years, and that continues.

多年來，乙醇行業的利潤率一直存在相當大的波動，而且這種情況仍在繼續。

As I stated earlier, we definitely saw a pretty significant fall off in margins in the fourth quarter.

正如我之前所說，我們肯定看到第四季度的利潤率大幅下降。

And it is all about supply and demand and days of supply.

這一切都與供需和供應天數有關。

And it got to be at historic high levels and has come down since then.

它必須處於歷史最高水平，並且從那以後一直在下降。

The demand piece has been very good, on the gasoline side and on the export side.

汽油方面和出口方面的需求一直非常好。

And we also have seen production levels moderate.

我們還看到生產水平適中。

So we're basically at the same level of production year-to-date that we were a year ago.

因此，今年迄今為止，我們基本上處於與一年前相同的生產水平。

And that's the first time that, I think, in a year or 2 that we can say that.

這是第一次，我認為，在一兩年內，我們可以這麼說。

So we're definitely seeing a little more discipline on the production front with incremental increases in demand and that has supported better margins.

因此，隨著需求的逐步增加，我們肯定會在生產方面看到更多的紀律，這支持了更高的利潤率。

They are not anywhere where they should be, given some areas where basis is higher.

鑑於某些基礎較高的領域，它們不在應有的位置。

We're still at break or even or in some cases, negative margins.

我們仍然處於休息狀態，甚至在某些情況下，利潤率為負。

And in other markets, we're seeing decidedly positive margins.

在其他市場，我們看到了明顯的正利潤率。

So it's trending in the right direction.

所以它的趨勢是正確的。

Q1s tend not to be great margin environments for the ethanol industry.

對於乙醇行業來說，第一季度往往不是利潤豐厚的環境。

We actually have been encouraged by seeing here in February, before we even get into March, an improvement.

實際上，在我們進入 3 月之前，我們在 2 月份就看到了這裡的進步，這讓我們感到鼓舞。

But it's still clarifying itself on the forward curve, and we anticipate better margins in March forward and are doing everything we can to support that development through our own cost initiatives as well as keeping a lid on our own production levels.

但它仍然在遠期曲線上澄清自己，我們預計 3 月份的利潤率會更高，並且正在盡我們所能通過我們自己的成本計劃以及控制我們自己的生產水平來支持這一發展。

So the second question I want to ask about is about your slowdowns.

所以我想問的第二個問題是關於你的減速。

Can you maybe quantify the impact of your slowdowns on a gallons or sort of percent of capacity basis?

您能否以加侖或容量百分比為單位量化減速的影響？

I would say that -- and it's being evaluated daily.

我會這麼說——而且每天都在評估它。

And it moves up and down, but we're in that 10% reduction level.

它上下移動，但我們處於 10% 的減少水平。

And in some plants, more than that; in other plants, less than that.

在某些植物中，不止於此；在其他植物中，少於此。

Okay.

好的。

And then another question.

然後是另一個問題。

I know you guys are much more conservative -- or you have been over the last year about calling out one-time items, unusual items on the expense side.

我知道你們要保守得多——或者在過去的一年裡，你們一直在談論一次性物品，在費用方面不尋常的物品。

And that you've been really no longer capitalizing certain expenses that -- maintenance expenses that maybe some others would have in the past.

而且你真的不再將某些費用資本化 - 過去可能其他人可能會有的維護費用。

Can you maybe discuss with us if there were any significant items on the P&L that hopefully would not repeat in the back end of '18?

您能否與我們討論一下損益表上是否有任何重要的項目希望不會在 18 年的後端重複？

Nothing that I would call out specifically, Craig.

沒有什麼我會特別指出的，克雷格。

And you're right, we're very conservative in that regard and try not to make excuses by way of those unless they really rise to a very extreme level.

你說得對，我們在這方面非常保守，除非他們真的上升到非常極端的水平，否則盡量不要以此為藉口。

I will say that we are very focused on keeping our repairs and maintenance costs under control.

我要說的是，我們非常專注於控制維修和維護成本。

Cost containment initiatives, whether it's chemicals, whether it's repairs and maintenance, whether it's labor, energy, all of the aspects, we have a great operating team that is working on that.

成本控制舉措，無論是化學品，還是維修和保養，無論是勞動力、能源，所有方面，我們都有一支優秀的運營團隊正在努力。

We have been modernizing, certainly the older facilities we have in Pekin, and do feel that the cost structure of those plants and the -- that which we can control on operating performance in '18 will be noticeably better than in '17.

我們一直在進行現代化改造，當然是我們在北京擁有的舊設施，並且確實認為這些工廠的成本結構以及我們在 18 年可以控制的運營績效將明顯優於 17 年。

Great.

偉大的。

And then last question.

然後最後一個問題。

I guess 2:00 p.m.

我猜是下午 2:00

today is a big meeting, particularly given, let's just say, the drama in the Tuesday meeting, people being ambushed by unreasonable demands.

今天是個大會議，特別是給定了，比如說，週二會議的鬧劇，人們被無理要求埋伏。

Right.

正確的。

Some people are believing that the irrational demands made by a senator, who's either looking for his next job or desperately fighting to keep his seat, that they've actually opened the door to some concrete action near term.

一些人認為，參議員提出的非理性要求，要么正在尋找下一份工作，要么正在拼命爭取保住席位，他們實際上已經為近期的一些具體行動打開了大門。

So on the biodiesel side, people I met with yesterday were optimistic that this could actually help get the 5-year reinstatement of blenders and producers.

所以在生物柴油方面，我昨天遇到的人很樂觀，認為這實際上可以幫助攪拌機和生產商恢復 5 年。

I'm assuming that it could help with the RVP waivers and some other items that the ethanol industry has been asking for.

我假設它可能有助於 RVP 豁免和乙醇行業一直要求的其他一些項目。

What's your best scenario as far as ethanol regulations that could come out of this meeting?

就本次會議可能產生的乙醇法規而言，您的最佳方案是什麼？

Well, that scenario which I'm not predicting because I think the political stalemate really continues.

好吧，我沒有預測到這種情況，因為我認為政治僵局確實還在繼續。

But the best and most appropriate outcome is what I outlined, which is on the ethanol side that there's RVP parity for higher blends.

但最好和最合適的結果是我所概述的，即在乙醇方面，更高混合物的 RVP 平價。

That is pure and simply the way to resolve any concern about RIN prices.

這是解決對 RIN 價格的任何擔憂的純粹而簡單的方法。

The industry has said, we'll talk about RIN transparency.

業內人士表示，我們將討論 RIN 透明度。

I mean, if there's ways to regulate that market to downplay any distortions on the way of speculation, those are things that can be on the table.

我的意思是，如果有辦法監管該市場以淡化投機方式的任何扭曲，那麼這些都是可以擺在桌面上的事情。

But notions of RINs for exports or RIN caps, I mean, these are demand destroyers and are completely inconsistent with the letter and the intent of the RFS.

但是關於出口的 RIN 或 RIN 上限的概念，我的意思是，這些都是需求破壞者，完全不符合 RFS 的文字和意圖。

And as long -- or any in the program in 2022.

並且只要 - 或 2022 年計劃中的任何時間。

As long as those are the demands from the other side, there isn't going to be any deal, and we'll continue to have a stalemate.

只要是對方的要求，就不會有任何交易，我們還會繼續僵持下去。

Right now, existing law is our friend and on our side to support the continued growth of renewable fuels.

目前，現行法律是我們的朋友，支持可再生燃料的持續增長。

So cautiously optimistic at the end of the day, which may not be today.

在一天結束時如此謹慎樂觀，這可能不是今天。

It may be some time from now that saner minds will prevail and the appropriate public policy will move forward.

從現在開始可能需要一段時間，更清醒的頭腦將佔上風，適當的公共政策將向前推進。

And our next question comes from the line of Carter Driscoll from B. Riley.

我們的下一個問題來自 B. Riley 的 Carter Driscoll。

This is [Carson Sipple] on for Carter Driscoll.

這是 Carter Driscoll 的 [Carson Sipple]。

Given the overall supply of ethanol, do you think there's going to be any industry consolidation?

鑑於乙醇的整體供應，您認為會有任何行業整合嗎？

Or do you think the export markets can make up for it?

或者你認為出口市場可以彌補嗎？

Well, I think both are possible.

好吧，我認為兩者都是可能的。

We haven't seen much in the way of M&A activity in the ethanol industry for a while.

我們已經有一段時間沒有看到乙醇行業的併購活動了。

Do we think more is possible?

我們認為更多是可能的嗎？

Absolutely.

絕對地。

You have 6 players.

你有 6 個玩家。

We're #6 that control about 50% of production.

我們是第六名，控制著大約 50% 的生產。

It would be not uncommon in a commodity business like this as it matures for 5 or 6 players to actually control something closer to 60% or 70%.

在這樣的商品業務中並不少見，因為它已經成熟，5 或 6 名玩家實際控制接近 60% 或 70% 的東西。

So that will be healthy, but not necessarily seeing that in the near term.

所以這將是健康的，但不一定在短期內看到。

On overall supply-demand, we are cautiously optimistic on that.

在整體供需方面，我們對此持謹慎樂觀的態度。

If you look at the numbers, last year, we produced 15.8 billion gallons.

如果你看一下這些數字，去年我們生產了 158 億加侖。

So even if we're producing -- today's rate is 16 billion, even if we end up producing 16.2 billion, 16.3 billion, you run those numbers and you have 14.4 billion or so.

所以即使我們正在生產——今天的速度是 160 億，即使我們最終生產 162 億、163 億，你計算這些數字，你就有 144 億左右。

And that's just on a 10% blend and add 1.7 billion, 1.8 billion gallons of exports and incremental E15 of whatever it might be on the low end of 50 million, it could be high as 150 million.

這只是 10% 的混合，加上 17 億、18 億加侖的出口和增量 E15，無論它可能在 5000 萬的低端，它可能高達 1.5 億。

You then start seeing a draw on inventories and a much better supply-demand balance, if not tightening up, particularly in the driving season and a scenario that supports better margins.

然後，您會開始看到庫存減少和供需平衡（如果不是收緊的話）要好得多，尤其是在駕駛季節和支持更高利潤率的情況下。

Definitely, we've had an overhang on supply, but you look at it in terms of days of supply, running at about 24 days.

毫無疑問，我們的供應過剩，但你可以從供應天數的角度來看待它，大約 24 天。

You can look at the numbers historically and 20 to 21 and lower do support strong margins but also point out that with exports being an increasing piece of it, the supply chain is longer.

您可以查看歷史上的數字，20 到 21 及更低的數字確實支持強勁的利潤率，但也指出隨著出口的增加，供應鏈會更長。

So it could be something that is only a couple of days off where we are to really have it be a much more snug supply-demand balance.

因此，可能只有幾天的休息時間，我們才能真正實現更加緊密的供需平衡。

And we're talking 150 million gallons of the 1 billion gallons of -- roughly 1 billion gallons of inventory out there.

我們說的是 10 億加侖中的 1.5 億加侖——大約 10 億加侖的庫存。

So it wouldn't take much of a draw to tighten this up and support a better, more sustained margin.

因此，收緊這一點並支持更好、更持續的利潤率並不需要太多的平局。

And we're seeing the -- on the sources and uses, we're seeing a scenario that would suggest that we should see a tightening as we move into the second and third quarters.

我們看到 - 在來源和用途上，我們看到的情況表明，隨著我們進入第二和第三季度，我們應該看到收緊。

Great.

偉大的。

And then also, if you don't mind, could you address your capital availability and the flexibility, given the rising interest rate?

然後，如果您不介意，您能否在利率上升的情況下解決您的資本可用性和靈活性問題？

And I'll get back in the queue.

我會回到隊列中。

Yes.

是的。

Sure.

當然。

We still have significant excess availability and cash reserves on hand.

我們手頭仍有大量過剩的可用性和現金儲備。

And our work that we did or continue to do, but the work that we completed in December of 2016, significantly lowering our overall capital cost to borrow certainly will benefit us in a rising interest rate environment.

我們所做的或繼續做的工作，但我們在 2016 年 12 月完成的工作，顯著降低了我們藉貸的整體資本成本，肯定會使我們在利率上升的環境中受益。

So we're still looking at -- from an historic basis, significantly lower cost of borrow for our company than what we've seen in the past.

所以我們仍在考慮——從歷史的角度來看，我們公司的借貸成本比我們過去看到的要低得多。

And our next question comes from the line of Sameer Joshi from H.C. Wainwright.

我們的下一個問題來自 H.C. 的 Sameer Joshi。溫賴特。

Just a housekeeping question first.

首先只是一個家政問題。

What is the actual total of products and capacity of all your plants?

你們所有工廠的實際產品總量和產能是多少？

605 million gallons per year.

每年 6.05 億加侖。

605.

605。

Right, right.

是的是的。

Yes.

是的。

Talking about the Stockton cogen unit.

談論斯托克頓熱電聯產機組。

I know one of them was commissioned earlier -- recently.

我知道其中一個是早些時候委託的——最近。

And then you -- on the call, I heard you mentioned there is another unit that is possibly coming online.

然後你——在電話會議上，我聽說你提到有另一個單位可能會上線。

What is the timing on that?

時間是什麼？

And is the $1 million cost savings that you spoke about only for the first unit or for both units?

您所說的 100 萬美元成本節約是僅針對第一個單元還是針對兩個單元？

Yes.

是的。

On cogen, it's $4 million of annualized savings.

在熱電聯產方面，每年可節省 400 萬美元。

And so the 1 unit is running pretty much at capacity, so that would annualize pretty close to half of that.

所以 1 台設備的運行能力幾乎是滿負荷運轉的，因此年化率將接近一半。

The -- as we've mentioned before, this is sort of -- it is standard natural gas cogeneration technology with serial #1, very innovative technology on the ability to use a oxidizer to burn the waste gases off the facility rather than incinerate them through a thermal oxidizer.

- 正如我們之前提到的，這有點像 - 它是標準的天然氣熱電聯產技術，序列號 #1，非常創新的技術，能夠使用氧化劑將廢氣從設施中燃燒掉而不是焚燒通過熱氧化器。

And it's very good technology and having some fine-tuning issues on the units, which is taking more time to get both of them up.

這是非常好的技術，並且在單元上存在一些微調問題，這需要更多時間才能讓它們都起來。

One is now where it needs to be.

一個現在是它需要的地方。

The other is still in fine-tuning, and we anticipate that, that will certainly be up and running and fully operational in Q2 at the latest.

另一個仍在微調中，我們預計，最遲在第二季度肯定會啟動並運行並全面運行。

And are there any plans to replicate this across other plants and other facilities?

是否有計劃在其他工廠和其他設施中復制這一點？

The cogeneration?

熱電聯產？

For the cogen.

對於熱電。

Yes.

是的。

That's -- it's particularly valuable where we have a very high electricity rates, which would be California.

那是 - 在我們有非常高的電費的地方，它特別有價值，那就是加利福尼亞。

So certainly, as we get this up and prove its performance and verify that it's generating the savings and the efficiencies, we would look at expanding that first to Madera.

因此，當然，當我們啟動它並證明它的性能並驗證它正在產生節約和效率時，我們會首先考慮將其擴展到馬德拉。

Okay.

好的。

Going to the ICP acquisition.

去ICP收購。

I know you spoke about the $4.5 million savings in costs and then your current SG&A costs are fairly -- are like slightly lower, but it includes the ICP costs.

我知道您談到節省了 450 萬美元的成本，然後您當前的 SG&A 成本相當——略低，但它包括 ICP 成本。

Are you actually realizing those $4.5 million combined?

你真的實現了這 450 萬美元的總和嗎？

Like it's difficult to see it from where we stand.

就像從我們所處的位置很難看到它一樣。

Right.

正確的。

On an annualized basis, as we go into 2018, we are realizing about $3 million of that $4.5 million.

按年計算，隨著我們進入 2018 年，我們在 450 萬美元中實現了約 300 萬美元。

So some other initiatives that are mostly around logistical opportunities in savings through optimizing the use of the direct access we have now to the river, we fully implemented that on ethanol and barging, and we're in the process on distiller grains, most of which we export from Pekin.

因此，其他一些主要是通過優化使用我們現在通往河流的直接通道來節省物流機會的其他舉措，我們在乙醇和駁船方面完全實施了這一點，我們正在處理酒糟，其中大部分我們從北京出口。

So that would be the largest opportunity.

所以這將是最大的機會。

There are some other smaller opportunities as well, but we expect that to be in place certainly in the last half of the year at the latest on that.

還有一些其他較小的機會，但我們預計最遲在今年下半年肯定會出現。

Okay.

好的。

And then one last one.

然後是最後一個。

You mentioned your CapEx for 2018 should approximately be at the same levels as 2017, which was $21 million.

您提到 2018 年的資本支出應該與 2017 年大致相同，即 2100 萬美元。

Can you provide a little bit more granularity on where this will be spent?

您能否更詳細地說明這筆費用將用於何處？

Mostly what we have identified in that budget number are projects throughout that platform that are both necessary for just basic maintenance CapEx as well as some initiatives that have already been in place.

我們在該預算數字中確定的大部分項目是整個平台的項目，這些項目對於基本維護資本支出以及已經實施的一些舉措都是必要的。

Finishing up solar, certainly, finishing up the cogen, we have some dryer work at Pekin, some items that are really both very quick payback in terms of new projects and very necessary just to maintain safe and efficient operations at all the facilities.

完成太陽能，當然，完成熱電聯產，我們在北京有一些烘乾機工作，一些項目在新項目方面確實是非常快速的回報，而且對於維持所有設施的安全和高效運營非常必要。

So it's a bay float.

所以它是一個海灣漂浮物。

As Bryon mentioned, depending on where margins are and market conditions, we certainly have other innovative projects that we could do, but we're going to be very careful to make sure that we are stewarding our capital resources prudently, and we'll monitor that and calibrate that as the year progresses.

正如布賴恩所說，根據利潤率和市場條件，我們當然還有其他可以做的創新項目，但我們會非常小心，以確保我們謹慎地管理我們的資本資源，我們將監控並隨著時間的推移對其進行校準。

(Operator Instructions) And I'm showing no further questions at this time.

（操作員說明）目前我沒有再提出任何問題。

I'd like to turn the call back to Neil for any closing remarks.

我想把電話轉回給 Neil 來做結束語。

Thank you, Bruce.

謝謝你，布魯斯。

And thank you all for joining us today and your continued support of Pacific Ethanol, and we will work hard to improve the operating results of the company and deliver profitability and look forward to talking to you next quarter.

也感謝大家今天加入我們以及您對太平洋乙醇的持續支持，我們將努力提高公司的經營業績並實現盈利，期待下個季度與您交談。

Ladies and gentlemen, thank you for your participation in today's conference.

女士們，先生們，感謝你們參加今天的會議。

This does conclude the program.

這確實結束了程序。

You may all disconnect.

你們都可以斷開連接。

Everyone, have a great day.

大家，有一個美好的一天。