Alto Ingredients Inc (ALTO) 2019 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Pacific Ethanol, Inc.

女士們，先生們，感謝您的支持，歡迎來到太平洋乙醇公司。

Third Quarter 2019 Financial Results Conference Call.

2019 年第三季度財務業績電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員說明）請注意，今天的會議正在錄製中。

(Operator Instructions)

（操作員說明）

I would now like to hand the conference to your speaker today, Moriah Shilton of LHA Investor Relations.

我現在想把會議交給你今天的演講者，LHA 投資者關係部的 Moriah Shilton。

Please go ahead, madam.

請繼續，女士。

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

謝謝 Joelle，感謝大家今天參加太平洋乙醇公司 2019 年第三季度業績電話會議。

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

Neil 將首先回顧業務亮點，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.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 through November 15.

今天電話會議的電話重播將持續到 11 月 15 日。

The details of which are included in yesterday's earnings press release.

其中的細節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, November 8, and therefore, you are advised that 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（11 月 8 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以前和不時在 Pacific Ethanol 向 SEC 提交的文件中披露的事件、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 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 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？

Thanks, Moriah, and thank you all for joining us today.

謝謝，Moriah，感謝大家今天加入我們。

Before discussing our third quarter results and the current state of the ethanol industry, I would like to provide an update on our strategic initiatives to strengthen our balance sheet, improve our liquidity and reduce our debt.

在討論我們的第三季度業績和乙醇行業的現狀之前，我想提供有關我們加強資產負債表、改善流動性和減少債務的戰略舉措的最新信息。

While concluding these potential transactions has taken longer than originally anticipated, we are supported by an improving overall market and by stakeholders who understand the ethanol industry, appreciate the closing transactions in this environment takes time and retain confidence in the Pacific Ethanol team and strategy.

雖然完成這些潛在交易的時間比最初預期的要長，但我們得到了整體市場改善以及了解乙醇行業的利益相關者的支持，他們意識到在這種環境下完成交易需要時間並保持對太平洋乙醇團隊和戰略的信心。

We're in discussions with multiple parties around the sale of assets and other strategic initiatives and are working diligently on these transactions.

我們正在與多方就出售資產和其他戰略舉措進行討論，並正在努力處理這些交易。

We look forward to providing you substantive updates when we have agreements to announce.

當我們有協議要宣佈時，我們期待為您提供實質性更新。

We are in the process of documenting a short-term extension with CoBank on our Pekin credit facilities.

我們正在與 CoBank 就我們的 Pekin 信貸安排進行短期延期。

Further, we are engaged in collaborative and productive discussions with all of our lenders regarding amendments and extensions.

此外，我們正在與所有貸方就修訂和延期進行協作和富有成效的討論。

Similar to our other strategic objectives.

類似於我們的其他戰略目標。

These activities take time to complete, and we believe we will likely take a step approach initially beginning with shorter-term extensions to align interest and that longer-term agreements to facilitate the effective implementation of our strategic plan.

這些活動需要時間來完成，我們相信我們可能會首先採取一種逐步的方法，從短期延期開始以協調利益，並通過長期協議來促進我們戰略計劃的有效實施。

During the third quarter, the ethanol industry experienced among the worst production margins in years due in large part to the EPA's excessive granting of small refinery exemptions and the continuing trade dispute with China.

第三季度，乙醇行業經歷了多年來最差的生產利潤率，這在很大程度上是由於 EPA 過度授予小型煉油廠豁免以及與中國持續的貿易爭端。

The prolonged negative margin environment resulted in industry production capacity going offline through plant idling and slowdowns.

長期的負利潤率環境導致行業產能因工廠閒置和放緩而下線。

As a company, we continue to have 1 plant in shutdown and are running the rest of our facilities at less than full operating capacity for a combined run rate in the quarter of 82%.

作為一家公司，我們繼續有 1 家工廠處於關閉狀態，並且我們的其餘設施以低於滿負荷的產能運行，本季度的總運行率為 82%。

The industry production cuts have reduced inventory levels, bringing supply and demand more in balance.

行業減產降低了庫存水平，使供需更加平衡。

During the cycle of poor production margins in the last several quarters, we have maintained our focus on reducing operating costs and improving operating efficiencies.

在過去幾個季度利潤率低下的周期中，我們一直專注於降低運營成本和提高運營效率。

Starting at the end of the third quarter and continuing in this quarter, production margins rebounded to levels better than any time in the last 2 years, resulting in positive margins.

從第三季度末開始並持續到本季度，生產利潤率回升至過去兩年中任何時候都更好的水平，從而實現了正利潤率。

These improved margins can be sustainable with continued discipline on the production side and increased demand spurred by incremental E15 sales, the reallocation of ethanol volumes from small refinery exemptions by the EPA and resolution of the U.S.-China trade dispute, which has suppressed ethanol export demand.

這些提高的利潤率可以持續下去，因為生產方面的持續紀律和增加的 E15 銷售刺激的需求增加、EPA 對小型煉油廠豁免的乙醇產量的重新分配以及美中貿易爭端的解決，這抑制了乙醇出口需求.

On the regulatory front, we are confident that the final rule for the 2020 Renewable Fuel Standard blending requirements will result in greater ethanol use in the domestic market.

在監管方面，我們相信 2020 年可再生燃料標準混合要求的最終規則將導致國內市場更多地使用乙醇。

Over the last 3 years, the abuse of the small refinery exemption provision of the RFS has resulted in a de facto requirement of closer to an average of 13.6 billion gallons, which has been very damaging to the ethanol demand and economics.

在過去 3 年中，RFS 中小型煉油廠豁免條款的濫用導致實際需求接近平均 136 億加侖，這對乙醇需求和經濟造成了極大損害。

With the Trump administration's stated commitment to prospectively redistribute in exempting gallons to the other obligated parties, the agricultural and biofuel groups are united in pressing this as a threshold political issue in an election year cycle.

隨著特朗普政府承諾重新分配豁免加侖給其他有義務的政黨，農業和生物燃料團體團結一致，將其作為選舉年周期中的一個門檻政治問題。

Given this and the continued compelling cost octane and carbon benefits of ethanol, we believe that the industry will be back on a growth trajectory.

鑑於這一點以及乙醇持續引人注目的成本辛烷值和碳效益，我們相信該行業將重回增長軌道。

Exports are on pace to reach just over 1.5 billion gallons this year, which while down slightly from last year, will still be the second largest year for export volumes.

今年的出口量有望達到略高於 15 億加侖，雖然比去年略有下降，但仍將是出口量第二大的年份。

With an expected resolution of the China trade disputes and incremental growth in other export markets, we could set a new record for ethanol exports in 2020.

隨著中國貿易爭端的解決和其他出口市場的逐步增長，我們可以在 2020 年創造乙醇出口的新紀錄。

The support of low carbon fuel policies and market development remains a core strategy of Pacific ethanol.

支持低碳燃料政策和市場開發仍然是太平洋乙醇的核心戰略。

The California low carbon fuel standard continues to provide significant reductions in carbon emitted from transportation fuels, and ethanol is the single largest contributor to reduced carbon levels.

加州低碳燃料標準繼續顯著減少運輸燃料排放的碳，而乙醇是降低碳水平的最大因素。

The Oregon Clean Fuels Program is falling in the same path as California.

俄勒岡清潔燃料計劃與加利福尼亞走上了同樣的道路。

And at both markets, the carbon value continues to be at historic highs, with the California price currently trading at over $200 per ton.

在這兩個市場，碳價值繼續處於歷史高位，目前加州的交易價格超過每噸 200 美元。

Adding premium pricing to the low-carbon ethanol we produce at our West Coast plants.

為我們在西海岸工廠生產的低碳乙醇增加溢價。

The industry is beginning to see additional support of carbon policies.

該行業開始看到額外的碳政策支持。

In Washington, the Puget Sound Clean Air Agency is proposing a draft clean fuel standard that would apply to transportation fuels supplied or sold in the 4-county Puget Sound Area.

在華盛頓，普吉特灣清潔空氣機構正在提議一項清潔燃料標準草案，該標準將適用於普吉特灣地區 4 個縣供應或銷售的運輸燃料。

In addition, other states and areas are evaluating new clean fuel standards, including Colorado, the regional Midwest and New York.

此外，其他州和地區正在評估新的清潔燃料標準，包括科羅拉多州、中西部地區和紐約。

Near term, we continue to keep a close eye on operating costs across all our plants and remain focused on yield improvements, energy reductions and reductions in carbon intensity.

近期，我們將繼續密切關注我們所有工廠的運營成本，並繼續專注於提高產量、減少能源和降低碳強度。

I'd now like to turn the call over to Bryon for a financial review of our third quarter results.

我現在想將電話轉給布賴恩，以對我們第三季度的業績進行財務審查。

Thank you, Neil.

謝謝你，尼爾。

For the third quarter of 2019, net sales were $365 million compared to $346 million in the second quarter, with most of this growth coming from third-party gallons sold.

2019 年第三季度的淨銷售額為 3.65 億美元，而第二季度為 3.46 億美元，其中大部分增長來自第三方銷售的加侖。

Cost of goods sold was $380 million.

商品銷售成本為 3.8 億美元。

The quarterly increase in average corn prices without a material corresponding increase in ethanol prices resulted in a gross loss of $14.8 million compared to a gross profit of $4 million in the prior quarter.

平均玉米價格的季度上漲而乙醇價格沒有相應的大幅上漲導致毛虧損 1480 萬美元，而上一季度的毛利潤為 400 萬美元。

SG&A expenses were $8.7 million compared to $6.7 million in the second quarter, reflecting an increase in professional services and in employee medical benefits.

SG&A 費用為 870 萬美元，而第二季度為 670 萬美元，這反映了專業服務和員工醫療福利的增加。

Loss available to common shareholders was $27.6 million or $0.58 per share compared to $8 million or $0.17 per share in the second quarter.

普通股股東可獲得的損失為 2760 萬美元或每股 0.58 美元，而第二季度為 800 萬美元或每股 0.17 美元。

Adjusted EBITDA was negative $12.4 million compared to $7.2 million in the second quarter of 2019.

調整後的 EBITDA 為負 1240 萬美元，而 2019 年第二季度為 720 萬美元。

Our capital expenditures through the first 9 months of 2019 totaled to $2.1 million, mostly attributable to ongoing repair and maintenance of our facilities.

我們在 2019 年前 9 個月的資本支出總額為 210 萬美元，主要歸功於我們設施的持續維修和保養。

Turning to our balance sheet.

轉向我們的資產負債表。

At September 30, 2019, our cash and cash equivalents were $18.9 million compared to $16.5 million at June 30, 2019.

截至 2019 年 9 月 30 日，我們的現金和現金等價物為 1890 萬美元，而 2019 年 6 月 30 日為 1650 萬美元。

As Neil mentioned earlier, we are working with our lenders to amend and extend our existing term loan facilities and notes.

正如尼爾之前提到的，我們正在與我們的貸方合作，以修改和擴展我們現有的定期貸款設施和票據。

These discussions are occurring in parallel with the strategic initiatives also highlighted.

這些討論與強調的戰略舉措同時進行。

CoBank is in documentation to extend this forbearance and deferral for the Pekin credit facilities in order to evaluate a longer-term solution, which may first take the form of short-term extensions to provide lenders with time to evaluate, establish and execute a longer-term solution.

CoBank 正在記錄延長對 Pekin 信貸便利的這種寬容和延期，以評估長期解決方案，該解決方案可能首先採取短期延期的形式，為貸方提供時間來評估、建立和執行更長期的-長期解決方案。

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 closing, we are encouraged by the positive margins thus far in the fourth quarter.

最後，我們對第四季度迄今為止的正利潤率感到鼓舞。

Industry ethanol inventories are near 2-year lows, and supply and demand is more balanced than any time this year and regulatory and trade developments promise to increase the demand for low carbon, high-octane ethanol moving into 2020.

工業乙醇庫存接近 2 年低點，供需比今年任何時候都更加平衡，監管和貿易發展有望在 2020 年增加對低碳、高辛烷值乙醇的需求。

With this backdrop, we are working diligently on closing a number of transactions that will strengthen our balance sheet and position the company and its shareholders to benefit from the improving market environment and growth opportunities ahead.

在此背景下，我們正在努力完成多項交易，這些交易將加強我們的資產負債表，並使公司及其股東能夠從不斷改善的市場環境和未來的增長機會中受益。

With that, Joelle, I would like to open the call for questions.

有了這個，喬爾，我想打開提問的電話。

(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 quick on the quarter.

所以在這個季度快點。

It looked like basis was elevated in the quarter?

看起來本季度的基礎有所提高？

And also co-product return or co-product volumes a bit depressed versus some previous quarters.

與前幾個季度相比，聯產品退貨或聯產品量也有些低迷。

So maybe just some color on that, some of the things that occurred there during the quarter.

所以也許只是一些顏色，本季度發生的一些事情。

And then maybe an outlook for both going forward.

然後也許是兩者的前景。

Sure.

當然。

This has been, certainly, a tough year on corn basis with the late planting, concerns over the crop itself, which actually is turning out to be just fine.

毫無疑問，這對玉米來說是艱難的一年，因為播種較晚，人們擔心作物本身，但事實證明情況還不錯。

But certainly, dislocations, certain areas are better than others.

但可以肯定的是，錯位，某些領域比其他領域更好。

Harvest is slow.

收穫很慢。

Some areas have barely begun, particularly in the Upper Midwest.

一些地區才剛剛開始，特別是在中西部上游。

So it has created a situation where farmers have not been as interested in selling.

因此，它造成了農民對銷售不感興趣的情況。

Pricing hasn't been as elevated as they would like to see.

定價並沒有像他們希望的那樣高。

You have a lot of on-farm storage.

你有很多農場存儲。

And with the concerns around supply, a lot more holding onto that storage and not letting go.

由於對供應的擔憂，更多的人堅持儲存而不放手。

So that has resulted in the overall corn basis levels that have been higher than average.

因此，這導致整體玉米基差水平高於平均水平。

So that did impact the quarter, for certain.

因此，這確實影響了本季度。

As we move into the late harvest, we've seen elevated corn basis that started in the quarter.

隨著我們進入晚收，我們已經看到從本季度開始的玉米基差上漲。

Certain areas worse than others, but it's had an impact.

某些領域比其他領域更糟糕，但它產生了影響。

We are still seeing that in today's environment.

在今天的環境中，我們仍然可以看到這一點。

So looking forward, we do believe that -- and if you look at some of the forward offers.

所以展望未來，我們確實相信——如果你看看一些遠期報價。

Once we get this harvest in the bins, and we'll have an update from the USDA this morning on their outlook, but it is still looking like a solid crop and projecting solid carryouts next year and potentially even the greater ones in the year after with expected strong plantings and assuming a more normal production and yield.

一旦我們將收成放入垃圾箱，我們將在今天早上收到美國農業部關於他們前景的最新消息，但它看起來仍然是一個穩定的收成，預計明年的收成很穩定，後年甚至可能更大預計播種強勁，並假設產量和產量更正常。

So we are seeing basis levels as you move to the end of the year and into the first quarter starting to relax and move to more historical normal levels.

因此，隨著您進入年底並進入第一季度，我們看到基礎水平開始放鬆並進入更多的歷史正常水平。

On the co-product return, there has been some softness in distillers grain and corn oil, we're seeing a little strengthening today.

在副產品回報方面，酒糟和玉米油有所疲軟，我們今天看到有所增強。

So I would say, between the 2, the corn basis has been more of an impact than the co-product return in the quarter results.

所以我想說，在這兩者之間，玉米基差對季度業績的影響比聯產品回報更大。

Got it.

知道了。

And then just thinking about the overall market.

然後只考慮整個市場。

I mean, there are kind of differing views that production has come off-line, and you saw 2 more this week, but then also this kind of the concern that as plants kind of -- they come out of their turnarounds, does that production ramp back up.

我的意思是，對於生產已經下線，有不同的看法，你本週又看到了兩個，但也有這樣的擔憂，即作為工廠的那種——他們從周轉中走出來，生產回升。

So I mean where do you kind of stand in that debate?

所以我的意思是你在這場辯論中的立場是什麼？

I mean it sounds like, obviously, things have improved quite a bit here in the fourth quarter, but where do you stand on the debate of how things trend with production for the industry?

我的意思是，很明顯，第四季度的情況已經有了很大的改善，但是你對行業生產趨勢的爭論持何立場？

Well, we certainly -- even with the increased production over the last several weeks, we're still running about 5% to 6% below year-before levels.

好吧，我們當然——即使過去幾週產量增加，我們的產量仍然比去年同期低 5% 到 6%。

And the same is true on inventory, running about 5% or 6% below.

庫存也是如此，大約低於 5% 或 6%。

The margin environment has improved.

利潤率環境有所改善。

But it's not gotten to the point where -- and not enough forward clarity, you still have an inverted market where the forward curve is not showing the kind of profitability we're seeing today.

但它還沒有達到 - 並且沒有足夠的遠期清晰度，你仍然有一個反向市場，其中遠期曲線沒有顯示出我們今天看到的那種盈利能力。

We think as we roll forward, that we'll continue to see it.

我們認為，隨著我們向前推進，我們將繼續看到它。

But if you're a plant that's shut down today, you're going to want to see more clarity on that forward curve before you're going to bring the people back to work and commit the working capital to fire that plant back up.

但是，如果您是一家今天關閉的工廠，您將希望在讓人們重返工作崗位並投入營運資金來重新啟動該工廠之前，更清楚地看到這條前進曲線。

I do think that we have an industry that is, while we can do more work in this area, is more disciplined than it's been in the past.

我確實認為我們有一個行業，雖然我們可以在這個領域做更多的工作，但比過去更加自律。

And that we are cautiously optimistic that we will see an industry that will continue to keep supply and demand in better balance.

我們謹慎樂觀地認為，我們將看到一個將繼續保持供需更好平衡的行業。

But you're right, there's always that risk that with the positive margins, which we have not seen in quite some time, that we overdo it as an industry and we ramp up production, and we get back out of balance.

但是你是對的，總是存在這樣的風險，即我們在很長一段時間內沒有看到的正利潤率，我們作為一個行業過度使用它並且我們增加了產量，我們又失去了平衡。

So I -- we also, in the prepared remarks, wanted to note where we see the demand, because it's really important that ultimately, we do have an industry that is capable of producing more than the current market is demanding.

所以我 - 我們也在準備好的評論中想指出我們看到需求的地方，因為最終我們確實擁有一個能夠生產超過當前市場需求的行業，這一點非常重要。

And so incremental demand is critical as we move into next year.

因此，隨著我們進入明年，增量需求至關重要。

And we truly believe that with the EPA, while still a bit of an arm wrestle on the final rule, we are confident that, that rule is going to result in more domestic demand starting next year, and as we move forward.

我們真的相信，在 EPA 的幫助下，雖然在最終規則上仍有一些爭論，但我們相信，從明年開始，隨著我們向前發展，該規則將導致更多的國內需求。

And then we will see continued growth in exports.

然後我們將看到出口持續增長。

And with the China resolution, that could be a real shot in the arm to where we quickly could move to where, even running closer to full capacity, we will be struggling to meet the demand for ethanol.

有了中國的決議，這可能是一個真正的強心劑，我們可以快速移動到哪裡，即使接近滿負荷，我們也將努力滿足對乙醇的需求。

Okay.

好的。

Last one for me.

最後一個給我。

Just on the strategic review, and I can appreciate you can't give specifics.

只是關於戰略審查，我很感激你不能給出細節。

This is underway.

這正在進行中。

But I mean, it sounds like, given the environment, things may be getting a little bit easier on that front.

但我的意思是，聽起來，考慮到環境，這方面的事情可能會變得容易一些。

Are there -- I mean, can you speak to, are there any potential sales or other things that you've got going that would be triggered, say, by a favorable 2020 RVO or favorable movement in regard to China and trade?

有沒有——我的意思是，你能談談嗎，是否有任何潛在的銷售或其他事情會觸發，例如，有利的 2020 RVO 或有關中國和貿易的有利變動？

Yes.

是的。

As we said, I mean, it's -- everybody gets a bit myopic on these transactions.

正如我們所說，我的意思是，每個人都對這些交易有點短視。

And so when things are very bad, it's like, well, how can we do this?

所以當事情非常糟糕時，就像，好吧，我們怎麼能做到這一點？

But so having a favorable current market and a favorable outlook as we move into next year, it is very helpful and conducive in being able to complete transactions.

但是，當我們進入明年時，擁有有利的當前市場和有利的前景，這對完成交易非常有幫助和有利。

(Operator Instructions) Our next question comes from Amit Dayal with H.C. Wainwright.

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

Just on sort of the E15 availability now in the market in a more sort of regular basis.

就目前市場上的 E15 可用性而言，這種情況更為常見。

Has that impacted -- or how has that impacted, from an industry perspective, the production and demand side of things?

從行業的角度來看，這是否影響了——或者如何影響了事物的生產和需求方面？

It's been incremental, but very modest to date, and that's why the proper implementation of the RFS is critical.

它是漸進式的，但迄今為止非常溫和，這就是正確實施 RFS 至關重要的原因。

We really need that driver to say you have to blend more than 10%, at least in some markets.

我們真的需要那個司機說你必須混合超過 10%，至少在某些市場上是這樣。

We have nearly 2,000 stations.

我們有近 2,000 個站點。

The economics of E15 continue to be excellent.

E15 的經濟性仍然非常出色。

The performance, you have virtually every car on the road today is approved for using E15, either through warranty or by the EPA.

性能，你今天幾乎每輛車都被批准使用 E15，無論是通過保修還是通過 EPA。

So all of the pieces are there.

所以所有的碎片都在那裡。

But we do need a little push to get it into the marketplace, and that's where a minimum of 15 billion gallons of conventional ethanol under the RFS is critical.

但我們確實需要一點點推動才能將其推向市場，這就是 RFS 下至少 150 億加侖的傳統乙醇至關重要的地方。

At 143 billion gallon market, that's 14.3 billion of E10 -- ethanol to produce E10 and to find a home for another 700-plus million gallons because we do believe that 15 billion is the floor, it's not the ceiling.

在 1430 億加侖的市場上，有 143 億的 E10 - 用於生產 E10 的乙醇並為另外 700 多萬加侖找到一個家，因為我們確實相信 150 億是最低限度，而不是最高限度。

That will necessitate higher blends, both in the form of incremental E15 and E85.

這將需要更高的混合，以增量 E15 和 E85 的形式。

So we do believe that compelling economics of E15, with the proper regulatory signal, we will see a good increase in the blending of E15 next year and in years to come.

因此，我們確實相信 E15 令人信服的經濟性，以及適當的監管信號，我們將看到明年和未來幾年 E15 的混合有很好的增長。

I'd also note that we're working very collaboratively and expeditiously with the state of California to approve the use of E15 in the state of California, which will be a very important tool for further compliance under the low carbon fuel standard.

我還要指出，我們正在與加利福尼亞州密切合作並迅速批准在加利福尼亞州使用 E15，這將是進一步遵守低碳燃料標準的一個非常重要的工具。

So we're very optimistic on higher blends, not only E15 in the near to midterm, but higher blends, E25, E30 as we move towards higher octane fuels and higher compression combustion engines.

因此，我們對更高的混合物非常樂觀，不僅是近期到中期的 E15，而且隨著我們轉向更高辛烷值的燃料和更高壓縮比的內燃機，更高的混合物、E25、E30。

Understood.

明白了。

And then on the regulatory front, you -- there were some expectations that some final ruling would have already come into play.

然後在監管方面，你 - 有些人期望一些最終裁決已經開始發揮作用。

But this kind of keeps getting put out.

但這種情況不斷被淘汰。

Is there a time line you have or the industry has on when something could come about?

您是否有時間表或行業有什麼時間可能發生的事情？

Or does this become a 2020 type of thing?

或者這會成為 2020 年的事情嗎？

No, it will quite definitely be this year.

不，肯定會是今年。

The EPA has committed to that, the President has committed to that.

環保署已經承諾了這一點，總統也承諾了這一點。

And it -- because of the proposed supplemental rule, which is in play now, which is how we get to the at least 15 billion gallons, meaning 15 billion gallons.

而且——由於提議的補充規則，現在正在發揮作用，這就是我們如何達到至少 150 億加侖，也就是 150 億加侖。

The timetable has slipped from the end of November to sometime in December.

時間表已從 11 月底推遲到 12 月的某個時間。

But the commitment, and we believe it will be fulfilled, is that this rule will be final before the end of the year and will be in effect in 2020.

但我們相信它會兌現的承諾是，該規則將在今年年底之前成為最終規則，並將於 2020 年生效。

Got it.

知道了。

And lastly, just on the strategic initiatives, and I know Eric asked this as well.

最後，就戰略舉措而言，我知道 Eric 也問過這個問題。

But with sort of some of these improvements now taking place in the market, are all the options you have been considering still on the table?

但是隨著現在市場上出現了其中一些改進，您一直在考慮的所有選擇是否仍在桌面上？

Or has anything changed for you right now?

或者你現在有什麼改變嗎？

All options are on the table.

所有選項都擺在桌面上。

And as we continue to work hard on it, additional opportunities present themselves.

隨著我們繼續努力，更多的機會出現了。

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 would now like to turn the call back over to Neil Koehler for any further remarks.

我現在想將電話轉回給 Neil Koehler 以徵求任何進一步的意見。

Thank you, Joelle, and thank you all for joining us today and your continued support of Pacific Ethanol.

謝謝 Joelle，感謝大家今天加入我們，感謝你們對 Pacific Ethanol 的持續支持。

Look forward to speaking with you soon.

期待很快與您交談。

Have a great day.

祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference call.

女士們，先生們，今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。