Alto Ingredients Inc (ALTO) 2019 Q4 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。

Fourth Quarter and Full Year 2019 Financial Results Conference Call.

2019 年第四季度和全年財務業績電話會議。

(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, ma'am.

請繼續，女士。

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

謝謝 Joelle，感謝大家今天參加太平洋乙醇公司 2019 年第四季度和全年業績電話會議。

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 and year-end results.

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

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。

The telephone replay of today's call will be available through April 3. The details of which are included in yesterday's earnings press release.

今天電話會議的電話重播將持續到 4 月 3 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 information on this call speaks only as of today, March 27, and therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay.

請注意，有關此電話的信息僅在今天 3 月 27 日發布，因此，建議您在任何重播時，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.

請參閱該公司在網上提供的演示文稿幻燈片 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 from income taxes, asset impairment, loss on extinguishment of debt, 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、所得稅撥備或收益、資產減值、債務清償損失、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.

謝謝你，莫里亞。

And thank you, everyone, for joining us today.

感謝大家今天加入我們。

First, as it is top of hearts and minds for all in the country, I'd like to discuss the nationwide spread of the novel coronavirus and how it is affecting our business.

首先，由於它是全國所有人的頭等大事，我想討論新型冠狀病毒在全國范圍內的傳播以及它如何影響我們的業務。

The coronavirus has led to several statewide stay-at-home orders, which in turn has dramatically reduced overall fuel demand.

冠狀病毒導致了全州範圍內的幾項居家訂單，這反過來又大大減少了整體燃料需求。

In all our markets, we have seen significant reductions in ethanol sales to our customers.

在我們所有的市場中，我們看到向客戶銷售的乙醇顯著減少。

We expect in those markets, most impacted, up to a 50% reduction or more during the pendency of the stay-at-home orders.

我們預計在那些受影響最嚴重的市場中，在待定訂單未決期間，將減少 50% 或更多。

As a result of this demand disruption, the market prices for unleaded gasoline and ethanol have plummeted to historically low levels.

由於這種需求中斷，無鉛汽油和乙醇的市場價格暴跌至歷史低位。

Corn prices have also fallen, but less so on a percentage basis.

玉米價格也有所下降，但百分比下降幅度較小。

Accordingly, ethanol plant production margins across the industry are negative.

因此，整個行業的乙醇工廠生產利潤率為負。

The pandemic is compounding the adversities of an already oversupplied ethanol market.

大流行加劇了已經供過於求的乙醇市場的不利因素。

As a result, the industry, as a whole, is shutting down production to reduce supply and avoid negative cash flow operations.

因此，整個行業正在停產以減少供應並避免負現金流操作。

Pacific Ethanol's idling plants during this period and expects to have reduced production by over 60% by the end of March.

Pacific Ethanol 在此期間的閒置工廠預計到 3 月底將減產 60% 以上。

Every plant has customers and commitments to meet fuel and feed demand, so shutting down production needs to occur in an orderly manner with the objective of meeting our contractual commitments while minimizing negative cash impacts.

每個工廠都有滿足燃料和飼料需求的客戶和承諾，因此停產需要有條不紊地進行，以實現我們的合同承諾，同時最大限度地減少負面現金影響。

In response to the coronavirus, our Pekin, Illinois ICP facility is producing and shipping record amounts of high-quality alcohol as a key ingredient in the production of hand sanitizers.

為應對冠狀病毒，我們位於伊利諾伊州北京的 ICP 工廠正在生產和運輸創紀錄數量的高品質酒精，這是生產洗手液的關鍵成分。

Our ICP plant produces primarily high-quality alcohol that is sold into industrial, chemical and beverage-grade markets.

我們的 ICP 工廠主要生產優質酒精，銷往工業、化學和飲料級市場。

Our sales into the hand sanitizer market historically accounts for approximately 10% of total ICP production.

我們在洗手液市場的銷售額歷來約佔 ICP 總產量的 10%。

And with the now increased demand for the product, we are modifying production processes and have more than doubled our sales in this application, and are working diligently to do more to meet this critical need for high-quality alcohol.

隨著現在對該產品的需求增加，我們正在修改生產流程，並將我們在此應用中的銷售額翻了一番以上，並且正在努力做更多的事情來滿足對高品質酒精的這一關鍵需求。

We are also working with local health organizations and first responders in Pekin to produce and donate hand sanitizer in that community to frontline health workers who are attending to those impacted by the coronavirus.

我們還與北京的當地衛生組織和急救人員合作，在該社區生產和捐贈洗手液給前線衛生工作者，他們正在照顧受冠狀病毒影響的人。

This is a time when we all need to work together to help stop this pandemic.

這是我們所有人都需要共同努力幫助阻止這種流行病的時候。

Now we'd like to provide an update on our strategic initiatives.

現在，我們想提供有關我們戰略計劃的最新信息。

As we announced yesterday, we have deferred the payment of principal and interest of our secured debt through May 20, which gives us additional runway to complete additional strategic initiatives.

正如我們昨天宣布的那樣，我們已將有擔保債務的本金和利息的支付推遲到 5 月 20 日，這為我們提供了完成額外戰略計劃的額外跑道。

While neither our lenders nor the company expected the continued and now acute adverse market conditions, the extensions demonstrate the constructive relationships we have with our lenders to restructure our balance sheet and improve liquidity while continuing to pursue our initiatives.

雖然我們的貸方和公司都沒有預料到持續且現在嚴重的不利市場條件，但延期證明了我們與貸方建立的建設性關係，以重組我們的資產負債表並提高流動性，同時繼續推行我們的舉措。

To support us in these efforts, as we also announced yesterday, we have engaged a Chief Restructuring Officer, Winston Mar, on a consulting basis.

為了支持我們的這些努力，正如我們昨天宣布的那樣，我們聘請了首席重組官 Winston Mar，以提供諮詢。

We welcome him to the executive management team as an added resource to assist the company in negotiating with lenders and implementing strategic initiatives.

我們歡迎他加入執行管理團隊，作為補充資源，協助公司與貸方進行談判並實施戰略計劃。

In February, we completed a significant step by signing a definitive agreement to sell our 74% ownership interest in Pacific Aurora to Aurora Cooperative Elevator Company for $52.8 million of consideration, subject to certain working capital adjustments.

2 月，我們完成了重要的一步，簽署了一項最終協議，以 5280 萬美元的對價將我們在 Pacific Aurora 的 74% 所有權權益出售給 Aurora Cooperative Elevator Company，但需進行一定的營運資金調整。

We are working diligently to close this transaction as soon as possible.

我們正在努力盡快完成這筆交易。

We are in discussions with multiple parties regarding the sale or strategic partnerships for various other assets.

我們正在與多方就各種其他資產的銷售或戰略合作夥伴關係進行討論。

We are actively working on these transactions.

我們正在積極處理這些交易。

On the regulatory front, the EPA has decided not to appeal the 10th Circuit ruling on the Small Refinery Exemptions, that if applied nationally as expected, will eliminate the inappropriate granting of SREs and will restore over 1 billion gallons of annual demand for renewable fuels going forward.

在監管方面，EPA 決定不對第 10 巡迴法院關於小型煉油廠豁免的裁決提出上訴，該裁決如果按預期在全國范圍內實施，將消除 SRE 的不當授予，並將恢復每年超過 10 億加侖的可再生燃料需求。向前。

As an industry, we'll be working to restore the volumes illegally lost over the past 3 years to be added to future annual obligations.

作為一個行業，我們將努力恢復過去 3 年非法損失的數量，以添加到未來的年度義務中。

This was the right and timely thing for the EPA to do, and will be supportive for long-term ethanol demand as we recover from the current market crisis.

這是 EPA 做的正確和及時的事情，並且隨著我們從當前的市場危機中恢復過來，將支持長期的乙醇需求。

The final rule for the 2020 Renewal Fuel Standard blending requirements was released in late December.

2020 年更新燃料標準混合要求的最終規則於 12 月下旬發布。

Conventional biofuel volumes primarily met by corn ethanol will be maintained at the minimum 15 billion-gallon target set by Congress for 2020.

主要由玉米乙醇滿足的常規生物燃料量將保持在國會為 2020 年設定的最低 150 億加侖目標。

As markets return to normal levels after the pandemic, this will drive more demand and use of E15 in certain markets.

隨著大流行後市場恢復正常水平，這將推動某些市場對 E15 的更多需求和使用。

Exports were seasonally strong in the fourth quarter of 2019, and for the full year, were down slightly from 2018.

2019 年第四季度的出口季節性強勁，全年出口較 2018 年略有下降。

At this time, we expect exports to be about the same as last year, but the coronavirus has had a negative impact on worldwide trade and remains an evolving unknown.

目前，我們預計出口將與去年大致相同，但冠狀病毒對全球貿易產生了負面影響，並且仍然是一個不斷變化的未知數。

With China being the first country to emerge from coronavirus impacts, we are optimistic that China may step in as a significant buyer of U.S. ethanol as part of the Phase 1 trade deal between United States and China.

由於中國是第一個擺脫冠狀病毒影響的國家，我們樂觀地認為，作為中美第一階段貿易協議的一部分，中國可能會成為美國乙醇的重要買家。

The support of low carbon fuel policies and market development, which reward fuels or technologies based on their life cycle carbon emission reductions remains a core strategy of Pacific Ethanol.

支持低碳燃料政策和市場開發，根據燃料或技術的生命週期碳減排獎勵它們，仍然是太平洋乙醇的核心戰略。

We are working with other jurisdictions to expand low carbon markets across the country, which will provide value to the low carbon ethanol we produce.

我們正在與其他司法管轄區合作，在全國范圍內擴大低碳市場，這將為我們生產的低碳乙醇提供價值。

I'd now like to turn the call over to Bryon for a financial and operational review of our fourth quarter and full year 2019 results.

我現在想把電話轉給布賴恩，對我們的第四季度和 2019 年全年業績進行財務和運營審查。

Bryon?

布賴恩？

Thank you, Neil.

謝謝你，尼爾。

For the fourth quarter of 2019, net sales were $358 million compared to $365 million in the third quarter, decreasing due to a reduction in total gallons sold, offset in part by an increase in average price per gallon sold.

2019 年第四季度的淨銷售額為 3.58 億美元，而第三季度為 3.65 億美元，這是由於銷售的總加侖數減少，部分被銷售的每加侖平均價格的增加所抵消。

Cost of goods sold was $354 million, which drove a gross profit of $3.2 million compared to a gross loss of $14.8 million in the prior quarter.

商品銷售成本為 3.54 億美元，毛利潤為 320 萬美元，而上一季度的毛虧損為 1480 萬美元。

SG&A expenses were $11.8 million compared to $8.7 million in the third quarter, reflecting an increase in professional services associated with our strategic initiatives and loan amendments.

SG&A 費用為 1180 萬美元，而第三季度為 870 萬美元，反映了與我們的戰略舉措和貸款修訂相關的專業服務的增加。

Although we expect general SG&A expenses in 2020 to be significantly lower as we execute on our initiatives, professional fees will, out of necessity, be higher through at least the first half of the year.

儘管我們預計 2020 年的一般 SG&A 費用會在我們執行我們的計劃時顯著降低，但出於必要性，至少在今年上半年，專業費用將更高。

Loss available to common shareholders was $41.4 million or $0.85 per share, and included a $29.3 million asset impairment charge related to the pending sale of our membership interest in Pacific Aurora LLC and a $6.5 million loss on debt extinguishment related to the amendment of our secured debt obligations.

普通股股東可獲得的損失為 4140 萬美元或每股 0.85 美元，其中包括與出售我們在 Pacific Aurora LLC 的會員權益相關的 2930 萬美元的資產減值費用，以及與修改我們的擔保債務有關的 650 萬美元的債務清償損失義務。

This loss compared to $27.3 million or $0.58 per share in the third quarter, which did not have such a charge.

這一損失與第三季度的 2730 萬美元或每股 0.58 美元相比，沒有這樣的費用。

Adjusted EBITDA was positive $1.9 million compared to negative $12.4 million in the third quarter of 2019.

調整後的 EBITDA 為正 190 萬美元，而 2019 年第三季度為負 1240 萬美元。

For the full year 2019, net sales were $1.42 billion compared to $1.52 billion in 2018, which declined year-to-year due to fewer gallons sold, partially offset by higher average sales price per gallon.

2019 年全年，淨銷售額為 14.2 億美元，而 2018 年為 15.2 億美元，由於銷售的加侖數減少，部分被每加侖平均銷售價格的上漲所抵消。

Cost of goods sold was $1.43 billion, resulting in a gross loss of $9.9 million compared to a gross loss of $15.2 million in the prior year.

商品銷售成本為 14.3 億美元，與去年同期的 1520 萬美元相比，總虧損為 990 萬美元。

SG&A expenses were $35.5 million, an improvement from $36.4 million in the prior year due to our ongoing effort to lower overhead costs.

由於我們不斷努力降低管理費用，SG&A 費用為 3550 萬美元，比上一年的 3640 萬美元有所改善。

As previously noted, these improvements are currently obscured and offset by professional expenses associated with our restructuring efforts.

如前所述，這些改進目前被與我們的重組工作相關的專業費用所掩蓋和抵消。

Loss available to common shareholders was $90.2 million or $1.90 per share compared to $61.5 million or $1.42 per share in the prior year.

普通股股東可獲得的損失為 9020 萬美元或每股 1.90 美元，而上一年為 6150 萬美元或每股 1.42 美元。

The principal difference being an earlier mentioned asset impairment charge.

主要差異是前面提到的資產減值費用。

Adjusted EBITDA was negative $1.7 million compared to $5.1 million in 2018.

調整後的 EBITDA 為負 170 萬美元，而 2018 年為 510 萬美元。

Turning to our balance sheet.

轉向我們的資產負債表。

At December 31, 2019, our cash and cash equivalents were $19 million compared to $18.9 million at September 30, 2019.

截至 2019 年 12 月 31 日，我們的現金和現金等價物為 1900 萬美元，而 2019 年 9 月 30 日為 1890 萬美元。

Upon the close of sale of our ownership interest in Pacific Aurora LLC, we will receive approximately $27 million in cash and $16.5 million in promissory notes.

在出售我們在 Pacific Aurora LLC 的所有權權益後，我們將收到約 2700 萬美元的現金和 1650 萬美元的期票。

With that, I will 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。

These are challenging times for our country and for our company.

對於我們的國家和我們的公司來說，這是充滿挑戰的時期。

Even so given the continued compelling cost, octane and carbon benefits of ethanol, we firmly believe in the industry's long-term growth prospects, which is why we are working all levers to put the company in the best position to thrive in the future.

即便如此，鑑於乙醇持續具有引人注目的成本、辛烷值和碳效益，我們堅信該行業的長期增長前景，這就是為什麼我們正在努力使公司處於未來發展的最佳位置。

We have already taken a few key steps in our strategic initiatives, including restructuring agreements with our bank lenders and senior noteholders and extending the payment terms.

我們已經在我們的戰略舉措中採取了一些關鍵步驟，包括與我們的銀行貸方和高級票據持有人重組協議以及延長付款期限。

We also signed a definitive agreement to sell our ownership interest in Pacific Aurora, and we are in discussions with multiple parties around the sale or strategic partnerships of various other assets, and we will provide updates as appropriate.

我們還簽署了出售我們在 Pacific Aurora 的所有權權益的最終協議，我們正在與多方就各種其他資產的出售或戰略合作夥伴關係進行討論，我們將酌情提供更新。

With that, Joelle, I'd 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。

Wanted just -- I just wanted to confirm the utilization at your plants and by when?

只是想要——我只是想確認你們工廠的利用率以及何時使用？

And I assume that that would be for all plants other than ICP, which I would guess you're going to run full out.

我認為這將適用於 ICP 以外的所有工廠，我猜你會用完。

That is to some level of idling, that is correct.

那是某種程度的空轉，這是正確的。

And as we said in the prepared remarks, that it would be over a 60% reduction at this time by the end of March on total production.

正如我們在準備好的評論中所說，到 3 月底，此時總產量將減少 60% 以上。

Okay.

好的。

Got it.

知道了。

And then I mean at ICP, is there any ability, I mean even if it's for a short-term to run that above nameplate, given that you've, obviously got -- there would be demand or there is demand in the market for that product?

然後我的意思是在 ICP，是否有任何能力，我的意思是，即使是在短期內運行高於銘牌，鑑於你顯然已經得到 - 會有需求或市場上有需求那個產品？

We are doing everything humanly possible to increase the capacity to meet the current demand.

我們正在竭盡全力提高滿足當前需求的能力。

Yes, we can sell anything we can produce there.

是的，我們可以出售我們在那裡生產的任何東西。

And we have been able to make some incremental improvements in that regard.

我們已經能夠在這方面做出一些漸進式的改進。

Okay.

好的。

I mean as you look at, obviously, you're doing it, have seen some other plants shutting down, but others that still have not made an indication that they are.

我的意思是，當你看到時，顯然，你正在這樣做，已經看到其他一些工廠關閉，但其他工廠仍然沒有表明它們正在關閉。

I mean is this something that you think of this environment, as severe as it is, is what finally kind of means a structural change to production in the industry because, I mean over the last 1.5 year or more, there have been some pretty challenging environments where the thought was production, industry-wide, would come off?

我的意思是，你對這種環境的看法，儘管如此嚴峻，最終意味著行業生產的結構性變化，因為，我的意思是在過去的 1.5 年或更長時間裡，出現了一些相當具有挑戰性的事情整個行業的想法是生產的環境會消失嗎？

And if it did, it was very temporary.

如果確實如此，那也只是暫時的。

I mean how do you see -- once we come out of this, what do you see production looking like and maybe the response whether people stay offline or come back as they have in the past?

我的意思是你怎麼看——一旦我們擺脫這種情況，你會看到生產是什麼樣的，也許人們會像過去一樣保持離線或回來的反應？

That's a good question, Eric.

這是個好問題，埃里克。

I think as painful as it is, it is probably the -- to your point, a shock to the system that the industry, in some respects, needed to really get the capacity down.

我認為儘管很痛苦，但在你看來，這可能是對系統的衝擊，該行業在某些方面需要真正降低產能。

Obviously, it's down quite extremely, I believe.

很明顯，我相信它已經非常下降了。

According to the RFA, there's over 3 billion gallons just as of the -- now that are offline.

根據 RFA 的數據，截至目前，有超過 30 億加侖的石油處於離線狀態。

And it takes time as you run through fermenters and let your customers adjust, take some time to shut plants down.

當您運行發酵罐並讓您的客戶進行調整時，需要一些時間來關閉工廠。

So there is a bit of delay, but it's just imperative because the demand is not there for the product and the margins are so negative.

所以會有一點延遲，但這只是必要的，因為對產品的需求不存在，而且利潤率非常低。

That's what's happening.

這就是正在發生的事情。

Once plants go down, and it is -- you don't -- as opposed to what was happening, let's say, in the summer when we did see a significant reduction.

一旦植物倒下，它就是 - 你沒有 - 與正在發生的事情相反，比方說，在我們確實看到顯著減少的夏天。

That was mostly slowdowns, some shutdowns, but a lot of it was either companies with multiple plants taking a plant or 2 down or just general slowdowns.

這主要是放緩，一些停工，但其中很多是擁有多家工廠的公司關閉了一家或兩家工廠，或者只是普遍的放緩。

And you're right, when the margins came back, the industry then overreacted and increased the production even before the coronavirus to levels that were above the demand.

你是對的，當利潤率恢復時，該行業反應過度，甚至在冠狀病毒爆發之前就將產量提高到高於需求的水平。

And we started to see the margins fall in December and January, and then obviously, exacerbated by the recent events.

我們開始看到利潤率在 12 月和 1 月開始下降，然後很明顯，最近的事件加劇了這種情況。

Once plants are down and they're cold idled, bringing them back is a different case.

一旦植物倒下並且它們被冷閒置，將它們帶回來是不同的情況。

And I think that there is a reasonable expectation that we will see a more balanced market coming out of this crisis.

而且我認為有合理的預期，我們將看到一個更加平衡的市場從這場危機中走出來。

And we will come out of it.

我們將擺脫它。

It's just a matter of when we really are able to get the spread of the pandemic under control, lift the stay-at-home orders and probably be a lot of pent-up demand for people to travel around.

這只是我們何時能夠真正控制住大流行的蔓延、解除居家令以及可能對人們四處旅行的大量被壓抑的需求的問題。

And we'll see gasoline demand come back to normal.

我們將看到汽油需求恢復正常。

Yes.

是的。

Got it.

知道了。

And maybe last one for me.

也許對我來說是最後一個。

I mean good to see the deferment for 2 months on the interest and principal.

我的意思是很高興看到利息和本金延期 2 個月。

Your commentary certainly does imply that there are some things on the front burner and could be potentially near term.

你的評論確實暗示了一些事情在前面，並且可能是近期的。

But just on the Chief Restructuring Officer addition there, just maybe some of the other options you're looking at as part of that process as it's kind of hand-in-hand with the strategic initiative?

但是，就在那裡增加首席重組官而言，也許您正在考慮將其他一些選項作為該過程的一部分，因為它與戰略計劃密切相關？

Yes.

是的。

I mean it's -- as we publicly announced and with the actual announcement of the Pacific Aurora sale, looking at the potential other sales of assets and partnerships and working with lenders to outline the best terms, going forward, that meet the needs of all stakeholders.

我的意思是——正如我們公開宣布的那樣，隨著太平洋奧羅拉 (Pacific Aurora) 出售的實際宣布，著眼於潛在的其他資產出售和合作夥伴關係，並與貸方合作，勾勒出未來滿足所有利益相關者需求的最佳條款.

(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。

With this EPA decision not to appeal the waiver ruling, it seems like a good first step.

環保署決定不對豁免裁決提出上訴，這似乎是一個很好的第一步。

But there appears to be several underlying issues that still need to be resolved before the benefits begin to accrue, at least, materially.

但是，在收益開始產生之前，似乎還有幾個潛在的問題需要解決，至少是實質性的。

Could you share your views on how this may play out as next steps?

您能否分享您對下一步將如何進行的看法？

Yes, that's a good question, Amit.

是的，這是個好問題，阿米特。

The ruling takes effect immediately when it was -- when the -- when it came down.

該裁決在它被推翻時立即生效。

So in the 10th Circuit, which I believe is about 30% of all the refined gallons, mostly in the central part of the southwest of the country, that the Small Refinery Exemptions granted have to be only refiners that receive exemptions when the automatic blanket SREs back in, I believe, 2012, were eliminated.

因此，在第 10 巡迴賽中，我認為約佔所有精煉加侖的 30%，主要位於該國西南部的中部，授予的小型煉油廠豁免必須是在自動覆蓋 SRE 時獲得豁免的煉油廠早在2012年，我相信就被淘汰了。

There's only 2 refiners that qualify for that.

只有 2 家煉油廠符合條件。

So basically says there will be no Smaller Refinery Exemptions.

所以基本上說不會有小型煉油廠豁免。

The real question now is, will the EPA take this legal precedent and apply it nationally.

現在真正的問題是，環保署是否會採取這一法律先例並在全國范圍內實施。

And it's hard to imagine that they wouldn't because that -- the principle that was put down in this case is clearly national and its implication.

很難想像他們不會因為那樣——在這種情況下制定的原則顯然是國家的及其含義。

And if the EPA were not to do that, then there would be an additional legal action to apply it nationally.

如果 EPA 不這樣做，那麼將有額外的法律行動在全國范圍內實施。

It would also put one refinery at competitive disadvantage to another.

這也會使一個煉油廠在競爭中處於劣勢。

So there's a fairness issue.

所以有一個公平的問題。

And in discussions with EPA, that was our indication that they agreed with that.

在與 EPA 的討論中，這表明他們同意這一點。

So there are steps if the 2 refiners have appealed for a rehearing in the 10th Circuit, less than 10% of those requests are granted.

因此，如果這 2 家煉油廠已在第十巡迴上訴法院進行重審，那麼這些請求中只有不到 10% 被批准。

So just the law of averages there would suggest there will be no rehearing.

因此，只有平均定律表明，不會再進行複審。

There could be an appeal to the Supreme Court.

可能會向最高法院提出上訴。

We find that to be unlikely as well.

我們發現這也不太可能。

So now it's about how does this get implemented, and that's going to be up to the EPA to provide indications that we would have expected fairly immediately.

所以現在是關於如何實施的問題，這將取決於 EPA 提供我們本應立即預期的跡象。

But given that coronavirus, there may be some delays in that to say how they are going to apply this nationally and what the implications are.

但考慮到冠狀病毒，可能會有一些延遲，以說明他們將如何在全國范圍內應用它以及影響是什麼。

The most immediate action will be how the EPA acts upon the Small Refinery Exemptions that are in front of them retroactive to 2019.

最直接的行動將是 EPA 如何處理他們面前的小型煉油廠豁免，這些豁免可追溯至 2019 年。

And we would expect that most of those because of the -- this ruling will not be granted.

我們預計，其中大多數是因為 - 該裁決不會被批准。

And as you recall, we already had had a victory on the regulatory front when the EPA said that they would reallocate the anticipated Small Refinery Exemption gallons, and they essentially added about 770 million gallons to the RVOs for 2020 because that was what they anticipated based on the 3 years of DOE averages, the recommendations that they would be granting.

你還記得，當 EPA 表示他們將重新分配預期的小型煉油廠豁免加侖時，我們已經在監管方面取得了勝利，他們基本上在 2020 年向 RVO 增加了約 7.7 億加侖，因為這是他們基於預期的根據能源部 3 年的平均值，他們將給予的建議。

Our view now is that they will have a very hard time granting any of the Small Refinery Exemptions.

我們現在的觀點是，他們將很難授予任何小型煉油廠豁免。

And that would then translate into a higher RVO than was passed with the 2020 RVOs.

然後，這將轉化為比 2020 RVO 更高的 RVO。

So positive.

如此積極。

There are steps along the way.

沿途有台階。

It's really up to the EPA now to indicate how they are going to manage this new law of the land going forward.

現在真的要由 EPA 來說明他們將如何管理這項新的土地法。

And we will continue, obviously, as an industry and with our champions to be very diligent on this point because it's a critical issue.

顯然，我們將繼續作為一個行業和我們的擁護者在這一點上非常努力，因為這是一個關鍵問題。

All right.

好的。

Great.

偉大的。

Understood.

明白了。

On the operating side, do you have visibility right now in terms of what your cash burn could be for 2020?

在運營方面，您現在對 2020 年的現金消耗量有了解嗎？

It's a really good question, Amit.

這是一個非常好的問題，阿米特。

It's really difficult to assess at this point.

在這一點上真的很難評估。

As Neil said in his prepared remarks, our focus is on operating plants that are profitable, right?

正如尼爾在他準備好的講話中所說，我們的重點是運營盈利的工廠，對嗎？

So our expectation is to -- our efforts are to reduce any and all cash burn that we need to achieve profitability.

因此，我們的期望是——我們的努力是減少實現盈利所需的任何和所有現金消耗。

That will come at -- with efforts as well in working with our CRO and with our lenders to -- with regards to restructuring our debt and executing on our other initiatives.

這將在與我們的 CRO 和我們的貸方合作的努力中實現 - 關於重組我們的債務和執行我們的其他舉措。

So it's difficult at this time to actually give you a -- any kind of an estimate.

所以目前很難給你一個——任何類型的估計。

But we're working hard to limit cash burn and also as part of that is to reduce our overhead.

但我們正在努力限制現金消耗，其中一部分是減少我們的開銷。

So the costs that we can control, we're very focused on reducing those costs.

所以我們可以控制的成本，我們非常專注於降低這些成本。

Understood.

明白了。

And maybe just one last one from me.

也許只是我的最後一個。

On closing the Aurora transaction, has this coronavirus issue -- is there any impact on the timing for closing this?

在完成 Aurora 交易時，是否存在冠狀病毒問題——對完成此交易的時間有影響嗎？

Or are things still on track?

還是事情還在進行中？

It is still on track.

它仍然在軌道上。

It's -- there's certainly uncertainty in all aspects of the economy with the coronavirus.

這是 - 冠狀病毒在經濟的各個方面肯定存在不確定性。

But at this juncture, it is on track.

但在這個關鍵時刻，它正在步入正軌。

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 closing remarks.

我現在想把電話轉回給 Neil Koehler 做結束語。

Thank you all for joining us.

感謝大家加入我們。

And especially in these difficult times, we appreciate your support of the company, and we hope you all stay safe.

尤其是在這些困難時期，我們感謝您對公司的支持，並希望大家保持安全。

And together, we'll get through this current crisis.

我們將一起度過當前的危機。

Thank you, and have a good day.

謝謝你，有一個美好的一天。

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。