Alto Ingredients Inc (ALTO) 2021 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Alto Ingredients, Inc.

下午好，女士們，先生們，歡迎來到 Alto Ingredients, Inc.

Second Quarter 2021 Financial Results Conference Call.

2021 年第二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 turn the conference over to your host, Ms. Moriah Shilton of LHA Investor Relations.

我現在想將會議轉交給您的主持人，LHA 投資者關係部的 Moriah Shilton 女士。

Please go ahead.

請繼續。

Thank you, Jerome, and thank you all for joining us today for the Alto Ingredients' second quarter 2021 results conference call.

謝謝你，杰羅姆，感謝大家今天加入我們參加 Alto Ingredients 的 2021 年第二季度業績電話會議。

On the call today are Mike Kandris, CEO; and Bryon McGregor, CFO.

今天的電話會議是首席執行官 Mike Kandris；和首席財務官布賴恩·麥格雷戈。

Mike will begin with a review of business highlights, Bryon will provide a summary of the financial and operating results, and then Mike will return to discuss Alto Ingredients' outlook and open the call for questions.

Mike 將首先回顧業務亮點，Bryon 將提供財務和運營結果摘要，然後 Mike 將返回討論 Alto Ingredients 的前景並開始提問。

Alto Ingredients issued a press release after the market closed today, providing details of the company's quarterly results.

Alto Ingredients 在今天收盤後發布了一份新聞稿，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 altoingredients.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 altoingredients.com 上找到。

The telephone replay of today's call will be available through August 10, the details of which are included in today's earnings press release.

今天電話的重播將持續到 8 月 10 日，詳細信息包含在今天的收益新聞稿中。

A webcast replay will also be available at Alto Ingredients' website.

Alto Ingredients 的網站也將提供網絡直播重播。

Please note that the information on this call speaks only as of today, August 3. You are advised that time-sensitive information may no longer be accurate at the time of any replay.

請注意，本次電話會議的信息僅在今天（8 月 3 日）發表。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 states 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，該聲明指出，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 Alto Ingredients could differ materially from those statements.

Alto Ingredients 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 Alto Ingredients' filings with the SEC.

可能導致或促成此類差異的因素包括但不限於先前和不時在 Alto Ingredients 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 Alto Ingredients before interest expense, interest income, provision of benefit for income taxes, asset impairments, loss and 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、利息收入、所得稅福利提供、資產減值、債務損失和清償、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 Alto Ingredients 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 today'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，今天的新聞稿中包含了一個核對錶。

It is now my pleasure to introduce Mike Kandris, CEO.

現在我很高興介紹首席執行官 Mike Kandris。

Mike?

麥克風？

Thank you, Moriah, and thank you, everyone, for joining us this afternoon.

謝謝你，Moriah，謝謝大家今天下午加入我們。

In the second quarter, we generated our fifth consecutive quarter of gross profit, producing net income of $8.1 million and adjusted EBITDA of $17 million.

在第二季度，我們連續第五個季度實現了毛利潤，淨利潤為 810 萬美元，調整後的 EBITDA 為 1700 萬美元。

For the first half of the year, revenue was $517 million, net income was over $12 million, and EBITDA was over $30 million.

上半年收入5.17億美元，淨利潤超過1200萬美元，EBITDA超過3000萬美元。

This represents a year-over-year improvement in EBITDA of $14 million, a further testament to the benefits of our transformation efforts to specialty alcohol and essential ingredients.

這意味著 EBITDA 同比增長 1400 萬美元，進一步證明了我們向特種酒精和基本成分轉型所帶來的好處。

As part of these efforts, we continue to improve our balance sheet and align and invest in our infrastructure to meet today's demand, expand our product offering and pursue new long term accretive growth opportunities.

作為這些努力的一部分，我們將繼續改善我們的資產負債表，調整和投資我們的基礎設施，以滿足當今的需求，擴大我們的產品供應並尋求新的長期增值增長機會。

Looking ahead, we are expanding, deepening and strengthening our relationships with key customers as a certified leading producer of a growing variety of specialty alcohols that are used in common everyday consumer goods, including vinegars, spirits, mouthwash, asthmatics and cleaning products.

展望未來，我們正在擴大、深化和加強與主要客戶的關係，作為認證的領先生產商，生產越來越多的特種酒精，這些特種酒精用於常見的日常消費品，包括醋、烈酒、漱口水、哮喘藥和清潔產品。

Through the integration of operations and production at our Pekin campus, along with our enhanced certifications, we can provide surety of quality, supply and redundancy, all material differentiators among a growing supply base.

通過我們北京園區的運營和生產整合，以及我們增強的認證，我們可以提供質量、供應和冗餘的保證，這些都是不斷增長的供應基礎中的重要差異化因素。

These and other distinctions position us well as we contract specialty alcohol volumes for 2022 and beyond.

這些和其他區別使我們處於有利地位，因為我們在 2022 年及以後簽訂了特種酒精產量合同。

Thus, improving over time, the utilization of our expanded specialty alcohol production capacity.

因此，隨著時間的推移，我們擴大了特種酒精生產能力的利用率。

As we announced on May 17, we sold our fuel-grade ethanol production facility in Madera, California to Seaboard Energy for a total consideration of $28.3 million, comprised of $19.5 million in cash and $8.8 million in assumption of liabilities.

正如我們在 5 月 17 日宣布的那樣，我們將位於加利福尼亞州馬德拉的燃料級乙醇生產設施出售給 Seaboard Energy，總對價為 2830 萬美元，其中包括 1950 萬美元的現金和 880 萬美元的負債承擔。

We use the cash proceeds to retire company debt, which will save approximately $700,000 per quarter in interest expense and an additional $400,000 per quarter in negative EBITDA carrying cost for this facility.

我們使用現金收益來償還公司債務，這將每季度節省約 700,000 美元的利息費用，並為該設施每季度額外節省 400,000 美元的負 EBITDA 持有成本。

We have been working diligently on the sale of our fuel-grade ethanol facility in Stockton, California and have interested parties that will either restart or repurpose the facility, and we will share more when appropriate.

我們一直在努力出售我們在加利福尼亞州斯托克頓的燃料級乙醇設施，並且有興趣方將重新啟動或重新利用該設施，我們將在適當的時候分享更多信息。

Our capital improvement projects this year are on track and expected to expand revenue and increase efficiencies and plant reliability.

我們今年的資本改進項目正在按計劃進行，預計將增加收入並提高效率和工廠可靠性。

Our yeast expansion and Pekin facility upgrade projects alone are scheduled for completion in Q3 and will be fully operational before year end.

僅我們的酵母擴建和北京設施升級項目就計劃在第三季度完成，並將在年底前全面投入運營。

We expect the projects to contribute approximately $5 million annually in EBITDA, representing a full payback in less than 2 years.

我們預計這些項目每年將貢獻約 500 萬美元的 EBITDA，即在不到 2 年的時間內獲得全部回報。

Additionally, we are expanding our annual corn oil production capacity at our Pekin site by approximately 4,000 tons, which will contribute an estimated $4.5 million in EBITDA annually beginning in 2020.

此外，我們正在將我們在北京工廠的玉米油年產能擴大約 4,000 噸，從 2020 年開始，這將每年貢獻約 450 萬美元的 EBITDA。

In preparation for these improvements, and taking advantage of what we expect will be choppy market conditions in Q3, resulting from low pre-harvest corn inventories and tight fuel ethanol margins, we have scheduled in mid-August a repair and maintenance shutdown at our Pekin wet mill.

為做好這些改進的準備，並利用我們預計第三季度由於收穫前玉米庫存低和燃料乙醇利潤緊張導致的波動市場狀況，我們計劃在 8 月中旬對我們的北京進行維修和維護停產濕磨。

We expect the impact to be limited to the third quarter in terms of reduced revenues and an increased repair and maintenance expenses.

我們預計，就收入減少和維修和維護費用增加而言，影響將僅限於第三季度。

This, however, will not impact our ability to meet our contractual supply obligations for specialty alcohol or essential ingredients but will instead improve our efficiency and reliability and better align our production with customer demand.

然而，這不會影響我們履行特種酒精或基本成分合同供應義務的能力，而是會提高我們的效率和可靠性，並更好地使我們的生產與客戶需求保持一致。

Finally, looking to the future, there are opportunities for us to enhance our protein production at our dry mills that will grow and diversify our revenue sources and bolster our quality and quantity of earnings.

最後，展望未來，我們有機會提高乾磨機的蛋白質產量，這將增加和多樣化我們的收入來源，並提高我們的收入質量和數量。

We continue to make good progress and look forward to sharing more information soon.

我們繼續取得良好進展，並期待盡快分享更多信息。

We also remain actively engaged in discussions with various parties to develop a carbon capture program at our Pekin site.

我們還繼續積極與各方進行討論，以在我們的北京工廠開發碳捕集計劃。

We look forward to sharing more information over the next few quarters regarding this profitable opportunity.

我們期待在接下來的幾個季度分享更多有關這一有利可圖機會的信息。

With that, I'd now like to turn the call over to Bryon for a discussion of the financials.

有了這個，我現在想把電話轉給布賴恩討論財務問題。

Bryon?

布賴恩？

Thank you, Mike.

謝謝你，邁克。

I'll discuss a few financial highlights and metrics for the quarter and provide an update on our expectations on certain metrics for the year.

我將討論本季度的一些財務亮點和指標，並提供我們對本年度某些指標的預期的最新信息。

For the second quarter of 2021, net sales were $298 million, up from $219 million in the first quarter due to an increase in specialty alcohols, fuel-grade ethanol and third-party gallons sold as well as an increase in the average price per gallon sold.

2021 年第二季度的淨銷售額為 2.98 億美元，高於第一季度的 2.19 億美元，原因是特種酒精、燃料級乙醇和第三方加侖的銷量增加，以及每加侖平均價格的上漲賣。

Of the 65 million production gallons sold in the second quarter, 24 million gallons consisted of specialty alcohols, up 5 million gallons sequentially over last quarter.

在第二季度售出的 6500 萬加侖生產中，2400 萬加侖是特種酒精，比上一季度增加了 500 萬加侖。

Most of the specialty alcohols sold during the quarter was under fixed-price contracts established last fall.

本季度銷售的大部分特種酒精都是根據去年秋天建立的固定價格合同進行的。

While the average price of this contracted volume was lower than current prices, so was the price of corn, which we hedge concurrently, locking in positive margins.

雖然該合同量的平均價格低於當前價格，但我們同時對沖的玉米價格也低於當前價格，從而鎖定了正利潤率。

Now sales of specialty alcohol during Q2 were at higher prices but at tighter margins to corn.

現在，第二季度特種酒精的銷售價格較高，但相對於玉米的利潤率較低。

The Q2 year-over-year decline in total specialty gallons sold reflects more the uniqueness of last year's transitory spike in sanitizer and disinfectant demand, obscuring our growth in other specialty alcohol products sold.

第二季度銷售的特種加侖總量同比下降更多地反映了去年消毒劑和消毒劑需求短暫飆升的獨特性，這掩蓋了我們銷售的其他特種酒精產品的增長。

To this point, the comparative Q2 year-over-year decline in sanitizer and disinfectant consumption was partially offset by our increased fixed-price contracted in specialty alcohol sales last fall, and growing specialty alcohol exports.

到目前為止，第二季度消毒劑和消毒劑消費量的同比下降部分被我們去年秋天特種酒精銷售固定價格合同的增加以及特種酒精出口的增長所抵消。

While we anticipate continued volatility in sanitizer and disinfectant demand over the foreseeable future, we expect a more stable new demand supply equilibrium will ultimately be achieved as COVID impacts dissipate.

雖然我們預計在可預見的未來，消毒劑和消毒劑的需求將持續波動，但隨著 COVID 影響的消散，我們預計最終將實現更穩定的新需求供應平衡。

The sequential increase in quarterly sales of fuel-grade ethanol is attributable to both the steadier production from our Pekin dry mill and the increase in third-party gallons -- third-party gallon sales, the latter of which was driven by terminal constraints in California and our ability to service customers by using our Stockton facility as a terminal.

燃料級乙醇的季度銷售額環比增長歸因於我們的北京干法工廠的生產穩定以及第三方加侖的增長——第三方加侖的銷售，後者受到加利福尼亞終端限制的推動以及我們使用斯托克頓設施作為終端服務客戶的能力。

The average price per gallon of fuel-grade ethanol largely reflects the current high correlation between ethanol and elevated corn prices.

每加侖燃料級乙醇的平均價格很大程度上反映了當前乙醇與玉米價格上漲之間的高度相關性。

We should also note that while demand and prices for certain essential ingredient products have risen, industry-wide co-product prices, on average, have not kept pace with rise in corn prices, resulting in declining co-product returns, both sequentially and year-over-year.

我們還應該注意到，雖然某些基本成分產品的需求和價格已經上漲，但整個行業的副產品價格平均沒有跟上玉米價格的上漲，導致副產品回報率下降，無論是環比還是年- 超過一年。

Gross profit was $15.2 million, up from $13.8 million last quarter due to additional specialty alcohol and fuel-grade ethanol sales.

由於特種酒精和燃料級乙醇的銷售增加，毛利潤為 1520 萬美元，高於上一季度的 1380 萬美元。

SG&A expense in the quarter was $7.2 million, generally in line sequentially, although was slightly inflated due to heightened costs related to our strategic initiatives.

本季度的 SG&A 費用為 720 萬美元，與上一季度基本一致，但由於與我們的戰略舉措相關的成本增加而略有誇大。

Accordingly, we are revising our guidance to account for this activity and now expect SG&A to range from $27 million to $30 million for the full year of 2021.

因此，我們正在修改我們的指導以說明這一活動，現在預計 2021 年全年的 SG&A 將在 2700 萬美元至 3000 萬美元之間。

We have a $1.9 million asset impairment this quarter, reflecting results from our negotiations for the sale of our Canton, Illinois assets.

本季度我們有 190 萬美元的資產減值，反映了我們出售伊利諾伊州坎頓資產的談判結果。

Since our acquisition of Aventine in 2015, we've used this non-operating facility as a source for spare parts and supplies at our other operating facilities.

自 2015 年收購 Aventine 以來，我們一直使用這個非運營設施作為我們其他運營設施的備件和供應源。

Having largely used all productive and complementary equipment, we are now in negotiations to sell the remaining parts, along with the associated property and hope to complete the sale before year end.

在很大程度上使用了所有生產和補充設備後，我們現在正在談判出售剩餘部分以及相關財產，並希望在年底前完成銷售。

Our interest expense in the second quarter was $1 million, 45% lower than the $1.9 million we paid in Q1 and 78% reduction from the same quarter last year as we continue to pay down high interest rate debt.

我們第二季度的利息支出為 100 萬美元，比我們在第一季度支付的 190 萬美元低 45%，比去年同期減少 78%，因為我們繼續償還高利率債務。

The outstanding balance of our senior notes currently is $700,000.

我們優先票據的未償餘額目前為 700,000 美元。

We expect to fully repay the remaining term debt in 2021.

我們預計將在 2021 年全額償還剩餘的定期債務。

During the second quarter, we recorded income from loan forgiveness of $3.9 million, which is related to one of our payroll protection program loans from last year.

在第二季度，我們記錄了 390 萬美元的貸款減免收入，這與我們去年的工資保護計劃貸款之一有關。

We've applied for forgiveness for the remaining $6 million loan and are awaiting SBA approval.

我們已申請免除剩餘的 600 萬美元貸款，正在等待 SBA 批准。

Income available to common shareholders was $8.1 million or $0.11 per diluted share compared to income of $4.4 million or $0.06 per diluted share in the first quarter.

普通股股東可獲得的收入為 810 萬美元或每股攤薄收益 0.11 美元，而第一季度的收入為 440 萬美元或每股攤薄收益 0.06 美元。

Turning to our balance sheet.

轉向我們的資產負債表。

On June 30, 2021, our cash and cash equivalents were $50.8 million compared to $44.1 million on March 31, 2021.

2021 年 6 月 30 日，我們的現金和現金等價物為 5080 萬美元，而 2021 年 3 月 31 日為 4410 萬美元。

With the cash proceeds of $19.5 million from the sale of our Madera plant, we reduced our high interest rate parent debt outstanding, bringing our remaining term and plant debt loan balances to less than $18 million.

憑藉出售馬德拉工廠的 1950 萬美元現金收益，我們減少了未償還的高利率母公司債務，使我們的剩餘期限和工廠債務貸款餘額低於 1800 萬美元。

Proceeds from the future sale -- or for future asset sales will be used to further retire debt, bolster liquidity and fund future capital projects.

未來出售或未來資產出售的收益將用於進一步償還債務、增強流動性和為未來的資本項目提供資金。

In closing, let me provide some additional detail around our anticipated 10-day wet mill outage, Mike mentioned earlier.

最後，讓我提供一些關於我們預期的 10 天濕磨機停運的更多細節，Mike 之前提到過。

We've budgeted approximately $4 million in one-time repair and maintenance expenses in Q3 related to the outage.

我們在第三季度與停電相關的一次性維修和維護費用預算約為 400 萬美元。

To minimize the impact of lost revenues and higher cost of goods sold, we scheduled our repairs during what we believe will otherwise be a challenging operating environment due to low pre-harvest corn supplies and excess fuel-grade ethanol inventories and elevated production.

為了最大限度地減少收入損失和銷售商品成本增加的影響，我們將維修安排在我們認為由於收穫前玉米供應量低、燃料級乙醇庫存過剩和產量增加而將是一個充滿挑戰的經營環境期間。

We do not expect the impact of this outage to impact our $60 million gross profit on our contracted specialty alcohol guidance provided earlier this year.

我們預計此次停電不會影響我們今年早些時候提供的合同特種酒精指導的 6000 萬美元毛利潤。

Mike, back to you.

邁克，回到你身邊。

Thank you, Bryon.

謝謝你，布賴恩。

To summarize, over the past year, we have rationalized our operating footprint to focus on our profitable and most strategic operations, and at the same time, we significantly improved our balance sheet.

總而言之，在過去的一年裡，我們已經合理化了我們的運營足跡，專注於我們的盈利和最具戰略性的業務，同時，我們顯著改善了我們的資產負債表。

As such, we are now actively pursuing opportunities to expand through enhanced service and product offerings and accretive vertical integration.

因此，我們現在正積極尋求通過增強服務和產品供應以及增值垂直整合的機會。

And while our transformation is ongoing, we have a solid profitable platform for long-term growth, which will create value for shareholders, partners and employees.

在轉型過程中，我們擁有穩固的盈利平台，可實現長期增長，為股東、合作夥伴和員工創造價值。

Operator, with that, we'll open up the call for Q&A.

接線員，我們將打開問答電話。

(Operator Instructions) Your first question comes from Amit Dayal with H.C. Wainwright.

（操作員說明）您的第一個問題來自 H.C. 的 Amit Dayal。溫賴特。

First question, I guess, is on the gross margin guidance.

我想，第一個問題是關於毛利率的指導。

The $60 million you are continuing to guide from specialty alcohol sales, how much impact, whether positive or negative, can we see to this from any ethanol sales for the year?

您將繼續從特種酒精銷售中獲得 6000 萬美元的指導，無論是正面還是負面的影響，我們可以從今年的任何乙醇銷售中看到這一點嗎？

Amit, it's Bryon.

阿米特，是布賴恩。

I would say that fuel ethanol has not been overly contributory to that year-to-date.

我想說的是，燃料乙醇對今年迄今為止的貢獻並沒有太大的影響。

Indeed, if you'll recall, in January and February of this year, ethanol margins were generally $0.30 to $0.40 negative.

事實上，如果您回想一下，今年 1 月和 2 月，乙醇利潤率通常為負 0.30 美元至 0.40 美元。

They started to recover, and we saw some pretty good recovery in Q2.

他們開始恢復，我們在第二季度看到了一些相當不錯的恢復。

They have been volatile as of late and have sometimes materially lagged increases in corn prices.

它們最近一直在波動，有時嚴重滯後於玉米價格的上漲。

But I would say, year-to-date that margins overall have been -- have not yet recovered to breakeven or better.

但我想說，今年迄今為止，整體利潤率一直 - 尚未恢復到盈虧平衡或更好。

Now that does not mean that we haven't been operating at -- above breakeven fuel margins, it just means that it's been a hole that we've had to fill if you're looking at it on a year-to-date basis.

現在這並不意味著我們沒有在盈虧平衡的燃料利潤率之上運營，這只是意味著如果您從年初至今的基礎上查看它，我們必須填補這個漏洞.

Understood.

明白了。

And then, you are indicating that there is maybe some softness in terms of capacity going towards sanitizer and disinfectant sales, is that gap being filled already with sales to other applications?

然後，您的意思是說，消毒劑和消毒劑的銷售能力可能有些疲軟，這個缺口是否已經被其他應用的銷售填補了？

It's certainly a significant -- it's made a significant -- what's the word I'm looking for?

這當然很重要——它已經很重要了——我要找的詞是什麼？

The gain last year that we had in Q2 and Q3 was an anomaly, right?

去年我們在第二季度和第三季度的收益是異常的，對吧？

Those are unique.

那些是獨一無二的。

Those are black swan events.

這些都是黑天鵝事件。

And so, we were able to take advantage of the opportunities.

因此，我們能夠利用這些機會。

Those are not necessarily easily duplicatable, but we have, to a significant degree, been able to replace at least the volume sales through either the contracted volume we made last fall and as well spot and industrial sales this year.

這些不一定很容易複製，但在很大程度上，我們至少能夠通過去年秋天的合同量以及今年的現貨和工業銷售來取代批量銷售。

But they would not be at the same prices that you were able to get at peak -- prices in Q2 or Q3 of last year.

但它們的價格與您在高峰時能夠獲得的價格不同——去年第二季度或第三季度的價格。

That's understandable.

這是可以理解的。

And just last question on asset sales that you are still pursuing, are you expecting to be potentially done with the asset sales by the end of this year or could this get pushed out to next year potentially?

最後一個關於您仍在追求的資產出售的問題，您是否期望在今年年底之前完成資產出售，或者這可能會推遲到明年？

No, I think, definitely, our intention is to complete that in the near term.

不，我認為，肯定的是，我們的意圖是在短期內完成。

And again, as I mentioned in the remarks, we're -- the Stockton, California facility that we are working with, we would hope to be able to announce something on that definitely by year end.

同樣，正如我在評論中提到的那樣，我們是 - 我們正在與之合作的加利福尼亞州斯托克頓工廠，我們希望能夠在年底前明確宣布一些事情。

So that is definitely our intention, and we're working hard at it.

所以這絕對是我們的意圖，我們正在努力。

(Operator Instructions) Your next question comes from Eric Stine with Craig-Hallum.

（操作員說明）您的下一個問題來自 Craig-Hallum 的 Eric Stine。

And just sticking on the asset side, I know that the Idaho and Oregon facilities are a bit unique.

就資產方面而言，我知道愛達荷州和俄勒岡州的設施有點獨特。

I mean, it sounds like those aren't necessarily in your plans as far as the sales.

我的意思是，就銷售而言，聽起來這些不一定在您的計劃中。

So maybe confirm that, if you can?

所以也許可以確認一下，如果可以的話？

And then, maybe discuss how they're unique and what types of potential investments you might make to make those more -- I guess, more important to the platform?

然後，也許討論它們的獨特之處以及您可能會進行哪些類型的潛在投資以使這些投資更多——我猜，對平台更重要？

Okay.

好的。

So let's take Idaho first.

所以讓我們先看看愛達荷州。

Idaho, if you remember or recall, we sold the grain handling assets of that facility to the person that had been our marketer for many years, and had performed very well for us.

愛達荷州，如果您記得或記得，我們將該設施的穀物處理資產賣給了我們多年的營銷人員，並且對我們表現非常好。

We think, we have unique opportunity in that market that, that would be a place we would look at if we were -- from a repurposing standpoint, protein makes a lot of sense in that area, and that's one of the things, when I mentioned that we are exploring different possibilities with increasing protein, that would be a place we would definitely look at that.

我們認為，我們在那個市場上有獨特的機會，如果我們是的話，那將是一個我們會關注的地方——從再利用的角度來看，蛋白質在那個領域很有意義，這就是其中之一，當我提到我們正在探索增加蛋白質的不同可能性，那將是我們肯定會關注的地方。

It's a very unique market, there's not a lot of other players in the area.

這是一個非常獨特的市場，該地區沒有很多其他參與者。

And we have an affiliation with a really good marketer in that area.

我們與該領域的一位非常優秀的營銷人員有聯繫。

So that's Idaho.

這就是愛達荷州。

As far as Oregon goes, right now, we are working with a -- we have a CO2 plant adjacent to our facility in Oregon, and we're working with that group on evaluating longer-term prospects and possibilities.

就俄勒岡州而言，目前，我們正在與一家位於俄勒岡州工廠附近的二氧化碳工廠合作，我們正在與該小組合作評估長期前景和可能性。

So right now, our focus mainly is on Stockton, and we have repurposing opportunities and thoughts around Idaho and Oregon.

所以現在，我們的重點主要放在斯托克頓，我們在愛達荷州和俄勒岡州有重新利用的機會和想法。

Got it.

知道了。

No, that's helpful.

不，這很有幫助。

And maybe then just turning to the upcoming contracting season, I know that with your volumes and the timing of you bringing them online, did you miss the window with some of those volumes?

也許然後只是轉向即將到來的合同季節，我知道你的數量和你將它們上線的時間，你是否錯過了其中一些數量的窗口？

I mean, maybe steps you're taking in advance to the window.

我的意思是，也許你提前到窗口採取的步驟。

I mean, if you have any early indications of what the demand might be.

我的意思是，如果您有任何早期跡象表明需求可能是什麼。

And I am curious, of the 140 million gallons, do you kind of have a number in mind that would be ideal to contracts and leave the rest at spot?

而且我很好奇，在這 1.4 億加侖中，您是否有一個理想的數字來簽訂合同並將其餘的留在現場？

Well, I think ideally, we would like to have a very large percentage of that contracted.

好吧，我認為理想情況下，我們希望有很大比例的合同。

We're realistic in the fact that it's a -- it does take time to get to that point.

我們很現實，因為它確實需要時間才能達到這一點。

We have been working very diligently our quality crew.

我們一直在努力工作，我們的質量團隊。

One of the reasons we work very hard to get the enhanced certifications was to be able to qualify product with a larger variety of customers out there.

我們非常努力地獲得增強認證的原因之一是能夠讓更多種類的客戶對產品進行認證。

We've been working with our existing customers to expand within their organization.

我們一直在與現有客戶合作，在他們的組織內進行擴展。

That is a process, and it's something that is part of the transformation.

這是一個過程，也是轉型的一部分。

When we say the transformation is ongoing, that's all a part of it, and you have to get qualified.

當我們說轉型正在進行時，這就是它的一部分，你必須獲得資格。

We're feeling very good about Q4 -- going into Q4.

我們對第四季度感覺非常好——進入第四季度。

We feel it will be an improvement.

我們認為這將是一個進步。

But again, it's a process that you have to go through and it takes time.

但同樣，這是一個你必須經歷的過程，需要時間。

So we look at it as 2022, 2023.

因此，我們將其視為 2022 年、2023 年。

And again, we'd like to have a high percentage of that, but we do -- we would want to keep 10%, 15% for spot.

再一次，我們希望有很高的百分比，但我們確實 - 我們希望保留 10%、15% 的現貨。

Okay.

好的。

Got it.

知道了。

Maybe then just last one for me on the co-products.

也許那隻是我最後一個關於聯合產品的。

You mentioned that the spot pricing hasn't necessarily kept up or mirrored what's happened with corn.

您提到現貨價格不一定跟上或反映玉米的情況。

I mean, is that kind of your expectation for the remainder of the year going forward?

我的意思是，你對今年剩餘時間的期望是這樣的嗎？

Or I mean, do you see any indications that, that could -- that, that gap could close a little bit?

或者我的意思是，你是否看到任何跡象表明，這可能——那個差距可能會縮小一點？

I would think -- it's Bryon.

我想——是布賴恩。

I would think that the gap would close.

我認為差距會縮小。

I mean, it's actually near a fairly low point in kind of the averages where you see co-products trade in relation to the dry matter -- on a dry matter basis to corn.

我的意思是，它實際上接近一個相當低的平均水平，你看到與乾物質相關的副產品貿易 - 以乾物質為基礎，以玉米為基礎。

If you look back a year ago, it was trading over 120% to corn.

如果你回顧一年前，它與玉米的交易量超過 120%。

And today, you're looking at mid-70s.

而今天，你看到的是 70 年代中期。

And I'm not just talking about if this is not Alto-specific, this is an industry-wide phenomenon.

而且我不只是在談論這是否不是 Alto 特有的，這是一個全行業的現象。

And it largely is being driven by a couple of things, one is just a significant amount of supply or excess supply.

它在很大程度上是由幾件事驅動的，一個只是大量的供應或供應過剩。

As you've seen, growth in demand for soybean and other proteins.

如您所見，對大豆和其他蛋白質的需求增長。

And so we would expect that to be more normalized.

因此，我們希望這會更加正常化。

The dry -- on a dry matter basis, these high-value proteins should be trading at -- if not, at a premium to corn values.

乾物質——在乾物質的基礎上，這些高價值蛋白質的交易價格應該高於玉米價值——如果不是的話。

Currently, I'm showing no further questions at this time.

目前，我目前沒有進一步的問題。

I would now like to turn the conference back to CEO, Mike Kandris.

我現在想把會議轉回 CEO Mike Kandris。

Thank you, and thank you again for joining us today and your ongoing support.

謝謝您，再次感謝您今天加入我們以及您一直以來的支持。

As you can tell, we are very excited about the progress we have made and the bright future we have ahead of us.

如您所知，我們對我們取得的進展和我們面前的光明未來感到非常興奮。

We will be attending virtually the upcoming H.C. Wainwright 23rd Annual Global Investment Conference in September, and we look forward to continuing our dialog with you as we make further progress.

我們幾乎將參加即將舉行的 H.C. Wainwright 第 23 屆年度全球投資會議將於 9 月舉行，我們期待在我們取得進一步進展的同時繼續與您對話。

Thank you, all.

謝謝你們。

Ladies and gentlemen, this concludes today's conference.

女士們，先生們，今天的會議到此結束。

Thank you for your participation, and have a wonderful day.

感謝您的參與，祝您有美好的一天。

You may all disconnect.

你們都可以斷開連接。