Alto Ingredients Inc (ALTO) 2019 Q1 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。

First Quarter 2019 Financial Results Conference Call.

2019 年第一季度財務業績電話會議。

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

（操作員說明）作為提醒，此電話會議正在錄音中。

I would now like to introduce your host for today's conference, Ms. Moriah Shilton, Ma'am, you may begin.

我現在想介紹一下今天會議的主持人，Moriah Shilton 女士，女士，您可以開始了。

Thank you, Lauren, and thank you all for joining us today for the Pacific Ethanol First Quarter 2019 Results Conference Call.

謝謝你，勞倫，感謝大家今天加入我們參加太平洋乙醇公司 2019 年第一季度業績電話會議。

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 the financial and operating results.

布賴恩將提供財務和運營結果的摘要。

And then Neil will return to discuss Pacific Ethanol's outlook and open the call for questions.

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.com.

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.com 上查閱。

A telephone replay of today's call will be available till May 9. The details of which are included in yesterday's earnings press release.

今天電話的重播將持續到 5 月 9 日。詳細信息包含在昨天的收益新聞稿中。

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 the information in this call speaks only as of today, May 2. 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在今天（5 月 2 日）時發表。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 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太平洋乙醇公司向 SEC 提交的文件中先前和不時披露的事件、風險和其他因素。

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 period 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，並相信這些措施將有助於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 information later in this call, a reconciling table was included in yesterday's press release.

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.

現在，我很高興介紹總裁兼首席執行官 Neil Koehler。

Neil?

尼爾？

Thank you, Moriah, and thank you everyone for joining us today.

謝謝你，Moriah，謝謝大家今天加入我們。

As discussed on our year-end call, we're pursuing a number of strategic initiatives.

正如我們在年終電話會議上所討論的，我們正在推行一系列戰略舉措。

In late March, we amended credit related agreements with certain lenders to provide us with additional flexibility and liquidity as we continue our review of potential sale of production assets, reduction of our debt levels, further strengthening of our cash and liquidity, and opportunities for strategic partnerships and capital raising.

3 月下旬，我們修改了與某些貸方的信貸相關協議，為我們提供額外的靈活性和流動性，因為我們繼續審查生產資產的潛在出售、降低我們的債務水平、進一步加強我們的現金和流動性，以及戰略機會夥伴關係和融資。

We continue to make progress on our plans and believe we're taking the appropriate steps to increase shareholder value, to benefit all our stakeholders and to provide greater financial flexibility to facilitate future growth opportunities.

我們繼續在我們的計劃上取得進展，並相信我們正在採取適當的措施來增加股東價值，使我們所有的利益相關者受益，並提供更大的財務靈活性以促進未來的增長機會。

We look forward to providing you substantive updates as they develop over the coming months.

我們期待在未來幾個月內為您提供實質性更新。

The ethanol market overall is emerging from the bottom of a cycle that occurred in the fourth quarter of 2018 when the crush margin was at a historic low.

整個乙醇市場正在從 2018 年第四季度發生的周期底部走出來，當時壓榨利潤率處於歷史低位。

The first quarter of 2019 results reflect this improvement, resulting in a promising start to the year.

2019 年第一季度的業績反映了這一改善，為今年帶來了一個充滿希望的開端。

Our net sales of $356 million were up 6% sequentially.

我們的淨銷售額為 3.56 億美元，環比增長 6%。

While loss available to common stockholders was [$13 point million], adjusted EBITDA was a positive $1.6 million for the first quarter.

雖然普通股股東可獲得的損失為[13 萬美元]，但第一季度調整後的 EBITDA 為正 160 萬美元。

These results represent a significant improvement over the fourth quarter.

這些結果與第四季度相比有了顯著改善。

When looking at the overall ethanol industry, we continue to believe the compelling cost octane and carbon benefits of ethanol will drive new demand in 2019 above 2018 levels.

縱觀整個乙醇行業，我們仍然認為，乙醇引人注目的成本辛烷值和碳效益將推動 2019 年的新需求高於 2018 年的水平。

Two significant drivers of this expected growth are new exports and E15.

這一預期增長的兩個重要驅動因素是新出口和 E15。

First, in the export markets, we look forward to resolution of trade disputes with China, which will open up a large new market for U.S. ethanol as China continues on the path to incorporating 10% ethanol blends into its gasoline supply.

首先，在出口市場，我們期待與中國的貿易爭端得到解決，這將為美國乙醇開闢一個巨大的新市場，因為中國繼續將 10% 的乙醇混合物納入其汽油供應。

The steady retail adoption of E15 is reflected by a growing a number of large retailers who currently offer E15 at more than 1,700 stations across 30 states.

越來越多的大型零售商目前在 30 個州的 1,700 多個車站提供 E15，這反映了 E15 的穩定零售採用。

Pre-blended E15 is now available at over 100 terminals in the United States.

預混 E15 現在可在美國的 100 多個航站樓使用。

The EPA is expected to finalize a rule before June 1 that will facilitate the year round use of E15, which will result in incremental demand starting this summer, with material growth in the years to come.

EPA 預計將在 6 月 1 日前敲定一項規則，該規則將促進 E15 的全年使用，這將導致從今年夏天開始的需求增加，並在未來幾年實現實質性增長。

Wholesale ethanol prices are currently trading at a $0.70 discount to wholesale gasoline prices, which also is helping drive both new domestic and export ethanol demand.

乙醇批發價格目前比汽油批發價格低 0.70 美元，這也有助於推動新的國內和出口乙醇需求。

The supply/demand balance is tightening with seasonal increases in demand and lower inventory levels, resulting in improved production margins.

隨著需求的季節性增加和庫存水平的降低，供需平衡正在收緊，從而提高了生產利潤率。

The West Coast carbon markets continue to create strong premiums for our lower carbon ethanol.

西海岸碳市場繼續為我們的低碳乙醇創造強勁溢價。

And with RIN prices now trading near 5-year lows, we see no rationale nor legal basis for the EPA to grant additional small refinery economic exemptions, which will support stronger domestic ethanol demand in 2019.

由於 RIN 價格目前接近 5 年低點，我們認為 EPA 沒有理由或法律依據給予額外的小型煉油廠經濟豁免，這將支持 2019 年更強勁的國內乙醇需求。

Before I turn the call over to Bryon for a financial and operational review of our first quarter 2019 results, I'd like to note that the Airgas Co2 plant at our Stockton facility is commencing commercial operations now and is expected to contribute more than $1 million in EBITDA annualized.

在我將電話轉給布賴恩對我們 2019 年第一季度業績進行財務和運營審查之前，我想指出，我們斯托克頓工廠的 Airgas Co2 工廠現已開始商業運營，預計將貢獻超過 100 萬美元EBITDA 年化。

Bryon?

布賴恩？

Thank you, Neil.

謝謝你，尼爾。

For the first quarter of 2019, net sales were $356 million, compared to $334 million in the fourth quarter.

2019 年第一季度，淨銷售額為 3.56 億美元，而第四季度為 3.34 億美元。

This sequential increase in sales is due in part to an over 5% improvement in our average sales price per gallon of ethanol as well as an over 21% increase in third-party gallons sold, more than offsetting our reduction in production gallons of almost 11%.

銷售額的連續增長部分是由於我們每加侖乙醇的平均銷售價格提高了 5% 以上，以及第三方銷售的加侖量增加了 21% 以上，這抵消了我們近 11 加侖產量的減少。 %。

Our lower production output was intentional and consistent with prior guidance.

我們降低產量是有意的，並且與之前的指導一致。

The increase in third-party gallons sold stems from our need to replace gallons not produced by our plants to fulfill first quarter contractual obligations.

第三方銷售的加侖量的增加源於我們需要更換不是我們工廠生產的加侖量來履行第一季度的合同義務。

Although cost of goods sold was up $3 million sequentially to $358 million, gross profit improved by over $[80] million, reflecting the combination of improved crush spreads, reduced input costs and lower operating expenses, including labor and repair and maintenance.

儘管商品銷售成本環比增長 300 萬美元，達到 3.58 億美元，但毛利潤增加了超過 [80] 萬美元，這反映了壓榨價差的改善、投入成本的降低以及包括勞動力和維修保養在內的運營費用的降低。

We reduced SG&A expenses by approximately $1 million sequentially to $8.2 million, largely a reflection of reduced professional fees and other operating expenses.

我們連續減少了約 100 萬美元的 SG&A 費用至 820 萬美元，這主要反映了專業費用和其他運營費用的減少。

Loss available to common stockholders was $13.2 million or $0.29 per share, a $19 million improvement when compared to the $32.3 million or $0.74 per share in the fourth quarter.

普通股股東的損失為 1320 萬美元或每股 0.29 美元，與第四季度的 3230 萬美元或每股 0.74 美元相比，減少了 1900 萬美元。

Adjusted EBITDA was positive $1.6 million, also a significant improvement over the negative $18 million in the fourth quarter.

調整後的 EBITDA 為正 160 萬美元，與第四季度的負 1800 萬美元相比也有了顯著改善。

Turning to our balance sheet.

轉向我們的資產負債表。

At March 31, 2019, cash and cash equivalents were $21.8 million, compared to $26.6 million at December 31, 2018.

截至 2019 年 3 月 31 日，現金和現金等價物為 2180 萬美元，而 2018 年 12 月 31 日為 2660 萬美元。

This decline is attributable to a combination of lingering tight margins, mandatory capital expenditures and amortizing debt payments.

這一下降歸因於持續的低利潤率、強制性資本支出和攤銷債務支付。

Although cash may appear tighter, better advanced rates under Kinergy line of credit alone improved liquidity further by nearly $8 million.

儘管現金可能看起來更緊張，但僅 Kinergy 信貸額度項下更好的高級利率就將流動性進一步提高了近 800 萬美元。

For the first quarter of 2019, our capital expenditures totaled $1.1 million, mostly attributable to ongoing repair and maintenance of our facilities.

2019 年第一季度，我們的資本支出總計 110 萬美元，主要歸因於我們設施的持續維修和保養。

Consistent with prior guidance, planned capital expenditures for the year 2019 are expected to total $4 million, again, almost solely related to normal repair and maintenance of our facilities.

與先前的指導一致，2019 年的計劃資本支出預計將達到 400 萬美元，這幾乎完全與我們設施的正常維修和維護有關。

Finally, of note, in the first quarter, we adopted a new accounting standard for leases under which operating leases are reflected on our balance sheet, adding $43.8 million in right-of-use assets and lease liabilities.

最後，值得注意的是，在第一季度，我們採用了新的租賃會計準則，根據該準則，經營租賃反映在我們的資產負債表上，增加了 4380 萬美元的使用權資產和租賃負債。

The preponderance of these leases consist of our operating railcar and land leases.

這些租賃的主要部分包括我們經營的軌道車和土地租賃。

The adoption of this new provision did not have a significant impact on our consolidated statement of operations.

採用這項新規定對我們的綜合經營報表沒有重大影響。

Additional details will be provided in our Form 10-Q.

更多詳細信息將在我們的 10-Q 表格中提供。

With that, I'll turn the call back to Neil.

有了這個，我會把電話轉回給尼爾。

Thank you, Bryon.

謝謝你，布賴恩。

In summary, we believe conditions in the overall ethanol market will continue to improve, and 2019 domestic and export demand will surpass the record total output and export volumes set in 2018.

綜上所述，我們認為整體乙醇市場狀況將繼續改善，2019 年國內和出口需求將超過 2018 年創下的總產量和出口量的紀錄。

We are pursuing several strategic initiatives to strengthen our balance sheet and provide us with greater financial flexibility to take advantage of the expected improved conditions.

我們正在推行多項戰略舉措，以加強我們的資產負債表，並為我們提供更大的財務靈活性，以利用預期的改善條件。

We look forward to updating you on our progress in these areas.

我們期待向您通報我們在這些領域取得的進展。

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

有了這個，勞倫，我想打開問題的電話。

(Operator Instructions) Our first question comes from Eric Stine with Craig-Hallum.

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

So just thinking about the overall industry and I know as of late there has been modest market improvement.

因此，只要考慮整個行業，我就知道最近市場出現了適度的改善。

Just curious, well, first of all, how you envision your production or utilization levels here in Q2 and going forward?

只是好奇，首先，您如何設想您在第二季度和未來的生產或利用率水平？

And where you see the industry?

你在哪裡看到這個行業？

Do you think that the industry is going to be more thoughtful about this?

您認為業界會對此更加深思熟慮嗎？

Or as you get into summer driving season where potentially production comes back faster than it probably should?

或者當您進入夏季駕駛季節時，潛在的生產恢復速度可能比預期的要快？

Well, that's always a challenge.

嗯，這總是一個挑戰。

I do think that the industry has -- on a relative historical basis has been more thoughtful.

我確實認為該行業 - 在相對歷史的基礎上更加深思熟慮。

We have seen inventories decline by about 7% from what was a record high in March, and we're seeing the demand increasing.

我們看到庫存比 3 月份的創紀錄高位下降了約 7%，而且我們看到需求在增加。

So where we sit today, supply and demand, as I mentioned in the prepared marks is better balanced.

因此，正如我在準備好的分數中提到的那樣，我們今天所處的供需關係更加平衡。

And it's -- it is a market that still could use a catalyst, and China would be that catalyst in getting this final rule on E15 done, becomes a catalyst, because we do need that incremental demand.

這是一個仍然可以使用催化劑的市場，中國將成為完成 E15 最終規則的催化劑，成為催化劑，因為我們確實需要這種增量需求。

Production, this last week running at about 15.7 billion.

上週的產量約為 157 億。

That's substantially less than the total capacity of the industry, which has shown that it can be closer to 17 billion.

這大大低於該行業的總產能，後者表明它可以接近 170 億。

So we are seeing some level of restraint.

因此，我們看到了某種程度的克制。

We as a company are doing the same, our run rates in the quarter we just reported on were about 83%.

作為一家公司，我們也在做同樣的事情，我們剛剛報告的季度的運行率約為 83%。

We've come up slightly from that, but now continue to run at lower levels and then have made up our contractual obligations by buying additional gallons from our third-party sources.

我們已經從中略有上升，但現在繼續以較低的水平運行，然後通過從我們的第三方來源購買額外的加侖來彌補我們的合同義務。

So that's -- it's shown the strength of our production marketing model being able to do that.

這就是 - 它顯示了我們的生產營銷模式能夠做到這一點的實力。

And when others need to sell ethanol, we can be there to help, buy it, and support markets.

當其他人需要銷售乙醇時，我們可以幫助、購買和支持市場。

So we're cautiously optimistic that with the catalyst of additional export demand from China, and E15, and some, as you say, thoughtful consideration on the part of producers that we will see a better margin environment as the year progresses.

因此，我們謹慎樂觀地認為，隨著中國和 E15 的額外出口需求的推動，以及正如您所說，生產商方面的一些深思熟慮的考慮，隨著時間的推移，我們將看到更好的利潤率環境。

Got it.

知道了。

And then just thinking about the overall market also, I mean, obviously Q1, there were some pretty big pockets of severe weather, but it doesn't seem like it really had that much of an impact or a lasting impact on production.

然後只是考慮整個市場，我的意思是，顯然第一季度，有一些相當大的惡劣天氣，但它似乎並沒有真正對生產產生太大影響或持久影響。

It was more on logistics of ethanol and corn?

更多的是關於乙醇和玉米的物流？

Just curious in that light how you see the West Coast premium?

只是好奇您如何看待西海岸的溢價？

I know that was in part a driver of results this quarter.

我知道這在一定程度上是本季度業績的推動因素。

I mean, it seems like it's come back in a little bit.

我的意思是，它似乎又回來了一點點。

It's still elevated.

它仍然升高。

I mean, do you see that persisting for some time?

我的意思是，你看到這種情況持續了一段時間嗎？

Or do you see that kind of returning to normal levels here in the near future?

或者您是否看到這種情況在不久的將來會恢復到正常水平？

Well, that's hard to clearly project, but I think certainly the history would be more normal, so something in that $0.20, $0.20 plus, we're running about $0.30 premium to the West Coast today.

嗯，這很難明確預測，但我認為歷史肯定會更正常，所以在 0.20 美元、0.20 美元以上，我們今天比西海岸溢價約 0.30 美元。

I think as you see the carbon requirements increase that that will support higher spreads as we get a tighter supply/demand balance on ethanol that can participate in those markets.

我認為，當您看到碳需求增加時，這將支持更高的價差，因為我們對可以參與這些市場的乙醇的供需平衡更加緊張。

So that is helpful.

所以這很有幫助。

Yes, it helped us in Q1.

是的，它在第一季度幫助了我們。

But that was offset by same sort of premiums on corn.

但這被玉米的同類溢價所抵消。

We've seen those come in and we've seen the ethanol premiums stay out, so that's actually been helpful to us.

我們已經看到那些進來了，我們已經看到乙醇溢價留在外面，所以這實際上對我們有幫助。

But I think our expectation would be that we could see these premiums hold at slightly better than average, but they probably, if anything, will come in a bit.

但我認為我們的期望是我們可以看到這些溢價保持在略高於平均水平，但如果有的話，它們可能會出現一點。

Okay.

好的。

Got it.

知道了。

And then last one from me, just on the strategic process.

然後是我的最後一個，只是關於戰略過程。

And I know you may be limited as to what you can say.

而且我知道你的發言可能有限。

But if you're able to, any commentary on interest levels or confidence in terms of timing.

但是，如果可以的話，請對興趣水平或時間方面的信心發表任何評論。

I think you could kind of target it as a 6-month process, so maybe in the August time frame.

我認為您可以將其定為 6 個月的過程，所以可能在 8 月的時間範圍內。

Just any thoughts around that would be helpful?

有什麼想法會有所幫助嗎？

Yes, we have a number of initiatives and a number of interested parties that we're speaking to on these initiatives and are optimistic that we will meet our targets and that achieve our objectives.

是的，我們有一些倡議和一些利益相關方，我們正在就這些倡議與我們交談，並對我們將實現我們的目標並實現我們的目標持樂觀態度。

(Operator Instructions) Our next question comes from Sameer Joshi with H.C. Wainwright.

（操作員說明）我們的下一個問題來自與 H.C. 的 Sameer Joshi。溫賴特。

In terms of the gross margin improvement quarter-over-quarter, was it driven more by increased third-party gallons or was it driven more by the crush spread?

就毛利率的環比改善而言，是更多地受到第三方加侖量增加的推動，還是更多地受到壓榨價差的推動？

It was a combination of both.

這是兩者的結合。

And I think, again, that is the advantage of our models where margins were generally negative in the industry, across the board, where we could reduce production and then go out and buy in at a small margin that was better than losing money on our own gallons.

而且我認為，這也是我們模型的優勢，在該模型中，整個行業的利潤率普遍為負，我們可以減少產量，然後以小幅度買入，這比在我們的業務上虧本要好。自己的加侖。

So that was helpful.

所以這很有幫助。

But we definitely did see an improvement in the overall crush margin.

但我們確實看到整體壓榨利潤率有所改善。

And then the third factor was the cost cutting that we did.

然後第三個因素是我們所做的成本削減。

So I think it's really a combination of all three of those.

所以我認為這實際上是這三者的結合。

Okay.

好的。

I noticed that the crush spreads are actually slightly lower as of today compared to what they were at the end of the quarter.

我注意到，與季度末相比，截至今天，粉碎價差實際上略低。

Do you see the same?

你看一樣嗎？

Yes, we do.

是的，我們有。

It has certainly come off a few pennies here.

它肯定在這裡掉了幾便士。

And, again, we were a little surprised that there wasn't a more positive reaction to this week's report with the production down and inventories down slightly as well.

而且，我們對本週的報告沒有更積極的反應感到有點驚訝，因為產量下降，庫存也略有下降。

So it's definitely the market that's hard to evaluate from week-to-week.

因此，這絕對是每週都難以評估的市場。

But we do believe that the fundamentals do support a better margin environment going forward.

但我們確實相信，基本面確實支持未來更好的利潤率環境。

Yes.

是的。

And with the gas prices where they are, that certainly should help as well in adoption of the ethanol.

鑑於目前的天然氣價格，這肯定也有助於乙醇的採用。

But as far as E15 goes, the final ruling I know is expected before June, but what are the chances and what are the remaining steps before that can be implemented?

但就 E15 而言，我所知道的最終裁決預計會在 6 月之前進行，但在此之前執行的機會和剩餘步驟是什麼？

Well the comment period ended on Monday.

好吧，評論期於週一結束。

And so it's up to the EPA now to consider the myriad of comments they received and to promulgate a final rule as you said before June 1. They've been very consistent in their public statements that that is their objective and intent.

因此，現在要由 EPA 來考慮他們收到的無數意見，並如您在 6 月 1 日之前所說的那樣頒布最終規則。他們在公開聲明中一直非常一致地表明這是他們的目標和意圖。

And we will take them at their word on that.

我們會相信他們的話。

And then its -- we're already seeing retailers starting to gear up and introduce E15 where they have not before because of the lack of ability to keep it in the stations year around.

然後它 - 我們已經看到零售商開始加速並推出他們以前沒有的 E15，因為缺乏將它全年保持在車站的能力。

We're not looking for this to be a watershed moment this summer.

我們不希望這是今年夏天的分水嶺。

It's going to be slow and steady.

這將是緩慢而穩定的。

But it will accelerate and where, if you look at this, the overall market, I mean, we do believe that over time, this market for good reasons, economic and environmental, carbon-based will -- economic development helps through the farmers, will migrate to these higher blends and that's a 7-plus billion gallon market opportunity.

但它會加速，如果你看一下整個市場，我的意思是，我們確實相信，隨著時間的推移，這個市場有充分的理由，經濟和環境，基於碳的意願——經濟發展通過農民幫助，將遷移到這些更高的混合物，這是一個超過 7 億加侖的市場機會。

If E15 becomes 1 billion or 2 billion over the next 2, 3 years, that is achievable.

如果 E15 在未來 2、3 年內達到 10 億或 20 億，那是可以實現的。

And obviously, it would be very significant to the industry.

顯然，這對行業來說意義重大。

Okay.

好的。

And then just last one on SG&A.

然後是 SG&A 的最後一個。

It's good to see the improvements there.

很高興看到那裡的改進。

Has -- does this also include the effect of lower legal costs that you had before?

有 - 這是否還包括您以前擁有的較低法律費用的影響？

Yes.

是的。

It does, Sameer.

確實如此，薩米爾。

It is difficult to measure exactly, and it's actually why we haven't given much guidance, but if you want to be somewhere around -- somewhere between the numbers that we reported for Q1, and our kind of run rate of $9 million, probably not a bad number to be at.

很難準確衡量，這實際上是我們沒有給出太多指導的原因，但如果你想在某個地方——介於我們報告的第一季度數字和我們那種 900 萬美元的運行率之間，可能不錯的數字。

Thank you.

謝謝你。

And I'm not showing any further questions at this time.

我目前沒有提出任何進一步的問題。

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

我現在想將電話轉回給管理層，以獲取任何結束語。

Thank you, Lauren, and thank you all for joining us today on the call.

謝謝你，勞倫，感謝大家今天加入我們的電話會議。

We appreciate the interest and support of the company.

我們感謝公司的關注和支持。

And have a great day.

祝你有美好的一天。

And we'll speak to you soon.

我們很快就會和你說話。

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

女士們，先生們，感謝你們參加今天的會議。

This does conclude today's program, and you may all disconnect.

今天的節目到此結束，你們可能都斷線了。

Everyone, have a great day.

大家，有一個美好的一天。