Alto Ingredients Inc (ALTO) 2020 Q2 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。

Second Quarter 2020 Financial Results Conference Call.

2020 年第二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 over to your speaker today, Ms. 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 女士。

Thank you.

謝謝你。

Please go ahead, ma'am.

請繼續，女士。

Thank you, Daniel, and thank you all for joining us today for the Pacific Ethanol Second Quarter 2020 Results Conference Call.

謝謝丹尼爾，感謝大家今天加入我們參加太平洋乙醇公司 2020 年第二季度業績電話會議。

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

今天的電話會議是聯合首席執行官 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 Pacific Ethanol's 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 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.

該公司還為今天的電話會議準備了一份演示文稿。

It is available on the company's website at pacificethanol.com.

可在公司網站 pacificethanol.com 上獲取。

The telephone replay of today's call will be available through August 19, the details of which are included in yesterday's earnings press release.

今天電話的重播將持續到 8 月 19 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 in this call speaks only as of today, August 12.

請注意，本次電話會議中的信息僅適用於今天，即 8 月 12 日。

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

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 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之前和不時在 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 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 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、所得稅撥備或福利、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 Mike Kandris, co-CEO.

現在我很高興介紹聯席首席執行官 Mike Kandris。

Mike?

麥克風？

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。

Before I get started, let me update you on our succession plan.

在開始之前，讓我向您介紹我們的繼任計劃。

Since Neil announced his retirement as CEO in May, the 2 of us have worked closely together as co-CEOs to facilitate a smooth transition.

自 Neil 於 5 月宣布辭去 CEO 一職以來，我們兩人作為聯席 CEO 密切合作，以促進平穩過渡。

We would like to acknowledge Neil for his leadership since co-founding the company over 17 years ago, and wish him well on his upcoming retirement in September.

我們要感謝 Neil 自 17 年前共同創立公司以來所發揮的領導作用，並祝愿他在即將於 9 月退休時一切順利。

Now turning to our results for the second quarter.

現在轉向我們第二季度的業績。

I am pleased to share with you our strong financial results, including net income of $14.6 million and adjusted EBITDA of $28.8 million.

我很高興與您分享我們強勁的財務業績，包括 1460 萬美元的淨收入和 2880 萬美元的調整後 EBITDA。

These results reflect the benefit of our diversification strategy and expanded production of high-quality alcohol.

這些結果反映了我們多元化戰略和擴大優質酒精生產的好處。

In the second quarter, demand for our products used in sanitizers increased significantly due to the ongoing COVID-19 crisis.

在第二季度，由於持續的 COVID-19 危機，對我們用於消毒劑的產品的需求顯著增加。

To meet this demand, we focused on debottlenecking production and other process improvements to generate additional production capacity of 25 million gallons per year of high-quality alcohol at our Pekin campus.

為了滿足這一需求，我們專注於消除生產瓶頸和其他工藝改進，以在我們的北京園區增加每年 2500 萬加侖優質酒精的生產能力。

Furthermore, as recently announced, we are modifying and refurbishing existing equipment to increase production capacity of USP-grade alcohol by an additional 30 million gallons by the end of 2020.

此外，正如最近宣布的那樣，我們正在改造和翻新現有設備，到 2020 年底將 USP 級酒精的產能再增加 3000 萬加侖。

Entering 2021, our Pekin campus will have the capacity to produce a total of 140 million gallons of high-quality alcohol per year, the majority of which meets or exceeds USP specifications.

進入 2021 年，我們的北京校區將有能力每年生產總計 1.4 億加侖的優質酒精，其中大部分符合或超過 USP 規範。

While there are some incremental production cost to manufacture these higher quality products, they consistently achieve better EBITDA margins over fuel ethanol.

雖然生產這些更高質量的產品會增加一些生產成本，但它們始終能實現比燃料乙醇更好的 EBITDA 利潤率。

Further, high-quality alcohol is traditionally sold at fixed prices and volumes with longer commitments than ethanol.

此外，與乙醇相比，高品質酒精傳統上以固定價格和數量銷售，承諾時間更長。

This allows us to lock in our input costs over the contract term and better secure margins and favorable spreads.

這使我們能夠在合同期限內鎖定我們的投入成本，並更好地確保利潤和有利的價差。

Most of our high-quality alcohol production is contracted through 2020, and we are building a strong sales book for 2021 as we add new contracts and renew contracts signed last fall.

我們的大部分優質酒精生產合同到 2020 年，我們正在為 2021 年建立強大的銷售賬簿，因為我們增加了新合同並續簽了去年秋天簽署的合同。

It is important to note that the high-quality alcohol market requires manufacturers to not only have specialized equipment systems, but also have strong quality controls, experience and the operational capabilities to create products that meet customers' precise and unique specifications.

需要注意的是，高品質酒類市場要求製造商不僅要有專門的設備系統，還要有強大的質量控制、經驗和運營能力，以創造滿足客戶精確和獨特規格的產品。

Because of the pandemic, demand for hand sanitizer outstripped available supply.

由於大流行，對洗手液的需求超過了可用供應。

In response, the federal government temporarily loosened quality control requirements.

作為回應，聯邦政府暫時放寬了質量控制要求。

This had the unintended side effect of allowing questionable products to enter the marketplace.

這會產生意想不到的副作用，即允許有問題的產品進入市場。

We expect this will eventually lead to the retightening of quality control regulations.

我們預計這最終將導致質量控制法規的重新收緊。

Given our capabilities in quality control, we will continue to meet or exceed customer and regulatory standards.

鑑於我們在質量控制方面的能力，我們將繼續達到或超過客戶和監管標準。

We have been at this for a long time.

我們在這方面已經很長時間了。

Indeed, our Pekin campus has been producing industrial, chemical and beverage-grade alcohol for over 100 years.

事實上，我們北京校區生產工業級、化學級和飲料級酒精已有 100 多年的歷史。

We have new as well as many long-standing relationships with key domestic and international customers, who benefit from our quality product, service and logistic advantages, which includes our ability to ship products via truck, rail or barge.

我們與主要的國內和國際客戶建立了新的以及許多長期的關係，他們受益於我們的優質產品、服務和物流優勢，其中包括我們通過卡車、鐵路或駁船運輸產品的能力。

Turning to our high-protein meal and dried yeast business.

轉向我們的高蛋白粉和乾酵母業務。

We continue to experience strong demand for these products, which our Pekin facilities have manufactured for over 2 decades.

我們繼續感受到對這些產品的強勁需求，我們的北京工廠已經生產了 2 多年。

Examples of this include a unique, high-quality yeast used in pet and human food and a high-protein corn meal used in poultry, pet food and aquaculture.

這方面的例子包括用於寵物和人類食品的獨特優質酵母，以及用於家禽、寵物食品和水產養殖的高蛋白玉米粉。

Despite the slowdown of fuel ethanol production and associated co-products during the pandemic, we have been able to consistently maintain production of these valuable products at our Pekin campus resulting in strong co-product returns.

儘管在大流行期間燃料乙醇和相關副產品的生產放緩，但我們能夠在北京園區持續維持這些有價值產品的生產，從而帶來強勁的副產品回報。

Finally, let me provide some color on our fuel-grade ethanol operations.

最後，讓我為我們的燃料級乙醇業務提供一些顏色。

Industry-wide ethanol production had declined by more than 50% at the beginning of the second quarter.

第二季度初，全行業的乙醇產量下降了 50% 以上。

Although we have seen some resurgence in both demand and production, the current market continues to be volatile and uncertain with overall demand off by over 10% from a year ago.

儘管我們看到需求和生產都出現了一些回升，但目前的市場仍然不穩定且不確定，總體需求比一年前下降了 10% 以上。

Further, ethanol production crush margins remain variable without long-term forward predictability.

此外，乙醇生產壓榨利潤率仍然不穩定，沒有長期的前瞻性可預測性。

Given these conditions, we do not expect to reopen our idled fuel ethanol plants until we can better secure positive forward operating margins for the facilities.

鑑於這些情況，在我們能夠更好地確保設施的正遠期營業利潤率之前，我們預計不會重新開放我們閒置的燃料乙醇工廠。

Reopening would be achieved through either repurposing or restarting with high-value complementary or differentiated products.

重新開放將通過重新利用或重新啟動高價值互補或差異化產品來實現。

Further, we continue to consider all options for maximizing or monetizing the value of these plants.

此外，我們將繼續考慮將這些植物的價值最大化或貨幣化的所有選項。

And we are in discussions with various parties in this regard.

在這方面，我們正在與各方進行討論。

I'll now turn the call over to Bryon to review the financial results in further detail.

我現在將把電話轉給布賴恩，以進一步詳細審查財務結果。

Thank you, Mike.

謝謝你，邁克。

For the second quarter of 2020, net sales were $212 million compared to $311 million in the first quarter, the decline resulting from the reduction in fuel ethanol production gallons sold.

2020 年第二季度的淨銷售額為 2.12 億美元，而第一季度為 3.11 億美元，這是由於銷售的燃料乙醇產量減少所致。

More specifically, and as previously reported last quarter, we responded quickly to the decline in ethanol demand by idling the majority of our fuel ethanol production.

更具體地說，正如上個季度之前報告的那樣，我們通過閒置大部分燃料乙醇生產來迅速應對乙醇需求的下降。

This remains the case today, and our production gallons were down 52% year-over-year for the second quarter.

今天仍然如此，第二季度我們的加侖產量同比下降了 52%。

Most of our commitments for ethanol were met through third-party marketing business, resulting in no material change in third-party gallons sold year-over-year for the same period.

我們對乙醇的大部分承諾是通過第三方營銷業務實現的，因此同期第三方銷售的加侖數同比沒有發生重大變化。

Cost of goods sold was $181 million, which resulted in a gross profit of $31.2 million compared to a gross loss of $12.9 million in the prior quarter.

銷售成本為 1.81 億美元，毛利潤為 3120 萬美元，而上一季度的毛虧損為 1290 萬美元。

The profit was attributable to the increased sales of high-quality alcohol that carries a significantly higher price and corresponding margins.

利潤是由於高品質酒的銷售增加，價格和相應的利潤率顯著提高。

Cost of goods sold also included onetime idling costs and labor costs disproportionate to expenses associated with idled production, but supported by and consistent with the purpose of our PPP loan.

銷售的商品成本還包括一次性閒置成本和勞動力成本，與閒置生產相關的費用不成比例，但得到我們的 PPP 貸款的支持並符合其目的。

We expect these costs to be lower going forward for our idle operations.

我們預計這些成本將在未來閒置業務中降低。

SG&A expenses were $8.6 million, compared to $10.2 million in the first quarter, reflecting our ongoing cost-cutting efforts.

SG&A 費用為 860 萬美元，而第一季度為 1020 萬美元，這反映了我們正在進行的成本削減工作。

While up year-over-year, this reflects professional fees that are part of our restructuring initiatives.

雖然同比增長，但這反映了作為我們重組計劃一部分的專業費用。

We expect general SG&A expenses to be lower in the second half of 2020 as we continue efforts to resolve our debt issues.

隨著我們繼續努力解決債務問題，我們預計 2020 年下半年的一般 SG&A 費用將會降低。

I'll speak more on these efforts in a minute.

我稍後會詳細介紹這些努力。

Income available to common shareholders was $14.6 million or $0.27 per share compared to a loss of $25.4 million or $0.47 per share in the first quarter.

普通股股東可獲得的收入為 1460 萬美元或每股 0.27 美元，而第一季度虧損 2540 萬美元或每股 0.47 美元。

Adjusted EBITDA was positive $28.8 million compared to negative $12.3 million in the first quarter of 2020.

調整後的 EBITDA 為正 2880 萬美元，而 2020 年第一季度為負 1230 萬美元。

As the majority of our high-quality alcohol has been contracted through year-end, we are expecting to generate solid results for the second half of 2020, with adjusted EBITDA expected to range between $50 million to $70 million or between $66 million and $86 million for the full year.

由於我們的大部分優質酒已在年底前簽訂合同，我們預計 2020 年下半年將取得穩健的業績，調整後的 EBITDA 預計在 5,000 萬美元至 7,000 萬美元之間或 6,600 萬美元至 8,600 萬美元之間全年。

Moreover, as we complete contracts for next year's alcohol production over the coming months, we expect to continue to produce positive adjusted EBITDA into 2021 as well.

此外，隨著我們在未來幾個月完成明年的酒精生產合同，我們預計到 2021 年也將繼續產生正的調整後 EBITDA。

Turning to our balance sheet.

轉向我們的資產負債表。

At June 30, 2020, our cash and cash equivalents were $29.8 million compared to $26.8 million at March 31, 2020.

截至 2020 年 6 月 30 日，我們的現金和現金等價物為 2980 萬美元，而 2020 年 3 月 31 日為 2680 萬美元。

In the second quarter, we received net proceeds of $19.9 million in cash and $16.5 million in promissory notes from the sale of our 74% ownership interest in Pacific Aurora.

在第二季度，我們從出售太平洋奧羅拉 (Pacific Aurora) 74% 的所有權權益中獲得了 1990 萬美元的現金淨收益和 1650 萬美元的期票。

Approximately $14.5 million of the cash proceeds were used to make principal payments on our term debt.

大約 1450 萬美元的現金收益用於支付我們的定期債務的本金。

For the quarter, we reduced our total debt outstanding by $34.4 million, including $18.7 million paid on our lines of credit and $25.5 million paid on our term debt.

在本季度，我們將未償債務總額減少了 3440 萬美元，其中包括 1870 萬美元的信用額度支付和 2550 萬美元的定期債務支付。

This aggressive schedule of reducing our debt obligations is consistent with our efforts to improve our balance sheet, and we continue to work with our lenders to satisfy our continuing obligation to agree on a plan to eliminate or refinance our term debt.

這種減少債務義務的積極時間表與我們改善資產負債表的努力是一致的，我們將繼續與貸方合作，以履行我們就消除或再融資定期債務的計劃達成一致的持續義務。

To this end, our goal is to reduce our total term debt outstanding at year-end by at least $70 million.

為此，我們的目標是在年底將未償還的定期債務總額減少至少 7000 萬美元。

With that, I'd like to turn the time back to Mike.

有了這個，我想把時間轉回到邁克身上。

Thank you, Bryon.

謝謝你，布賴恩。

Before we open the call for Q&A, I'd like to express my appreciation to all the employees and staff at the company and commend them for their performance, ingenuity and dedication to excellence.

在我們開始問答之前，我想對公司的所有員工和員工表示感謝，並讚揚他們的表現、獨創性和對卓越的奉獻精神。

We have a fantastic opportunity to grow the business profitably and thrive.

我們有一個絕佳的機會來發展業務並盈利並蓬勃發展。

We have more work ahead of us, and we are all energized and excited about our future.

我們還有更多的工作要做，我們都對我們的未來充滿活力和興奮。

I'd now like to open the call for questions.

我現在想打開問題電話。

(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。

Well, obviously, great performance here in the second quarter.

嗯，很明顯，第二季度的表現很好。

I'm just wondering, as we think about Q2, if you're willing to kind of break down maybe spot versus contract volumes?

我只是想知道，當我們考慮第二季度時，您是否願意分解現貨量與合約量？

And then maybe as you look forward, I mean, what is kind of the right number in terms of mix when you think about what you want to have under an annual or a multiyear contract and what you would like to have available to take advantage of potential nice pricing in the spot market?

然後，也許正如您所期待的那樣，當您考慮在年度或多年合同下想要擁有什麼以及您希望可以利用什麼時，就組合而言，正確的數字是什麼現貨市場潛在的好定價？

So Eric, I don't know that we can provide you the exact details, but what we did provide in the prepared remarks, as we indicated, that we've increased our industrial-grade production in the second quarter.

所以埃里克，我不知道我們可以為您提供確切的細節，但正如我們所指出的，我們在準備好的評論中確實提供了，我們在第二季度增加了工業級產量。

So in essence, converting what would otherwise been fuel ethanol in our Pekin campus into industrial-grade.

因此，從本質上講，將我們北京園區的燃料乙醇轉化為工業級燃料。

And that was on the order of 25 million gallons per year.

這大約是每年 2500 萬加侖。

That would be volume that wasn't materially contracted for, so that would have been probably more of your spot production.

那將是沒有實質性合同的數量，因此可能更多的是您的現貨生產。

And the rest would have been representing, more or less, your annualized or your long-term high-quality and beverage-grade product that we produce year in, year out.

其餘的將或多或少地代表我們年復一年生產的年化或長期高質量和飲料級產品。

Okay.

好的。

And then, I mean, I guess when we think about the guide for the second half in the $50 million to $70 million in EBITDA.

然後，我的意思是，我想當我們考慮下半年 5000 萬至 7000 萬美元的 EBITDA 指南時。

I mean, obviously, you're still going to have that spot contribution, but you're really -- I mean, again, you're factoring in that the remainder of that is under contracts that likely reflects pricing from 2019 or prior to that.

我的意思是，很明顯，你仍然會有那個現貨貢獻，但你真的 - 我的意思是，你再次考慮到其餘部分是根據可能反映 2019 年或之前定價的合同那。

And I would assume, given where the market is and the reasons for it, that you're seeing quite a bit better pricing for what that next contract or contracts might be?

我會假設，考慮到市場的位置和原因，你會看到下一份或多份合同的定價要好得多？

Yes.

是的。

I think that's probably fair.

我認為這可能是公平的。

The -- it's normal for during -- the contracting period usually occurs after harvest.

承包期通常發生在收穫後。

And so you would expect to have prices or you would expect to see pricing in negotiations around what would be the current markets and reflections of results.

因此，您會期望有價格，或者您會期望在圍繞當前市場和結果反映的談判中看到定價。

Harvest -- in essence customers and producers alike take all that information into account as they look out towards the next 12-year -- 12-month period.

收穫——本質上，客戶和生產商在展望下一個 12 年——12 個月期間時都會考慮所有這些信息。

And do you think that given what's going on right now and the increased demand, I think -- correct me if I'm wrong, but I think these have been typically annual contracts?

你認為考慮到現在的情況和需求的增加，我認為——如果我錯了，請糾正我，但我認為這些通常是年度合同？

Is this something where you foresee potentially them being longer than an annual contract?

您是否預見到它們可能比年度合同更長？

I mean, I would say that would probably be outside the norm.

我的意思是，我會說這可能會超出正常範圍。

There's nothing normal about the world today, and so it's difficult to say.

今天的世界沒有什麼正常的，所以很難說。

I mean, if I were just putting on my hat as a buyer, I would also be rethinking how I purchase product.

我的意思是，如果我只是作為買家戴上帽子，我也會重新考慮如何購買產品。

But at the same time, I also want high-quality, good, reliable product as well.

但同時，我也想要高質量、好、可靠的產品。

And I want to make sure that I lock that in, especially if you've had long-standing relationships, you've gone through your certifications and everything else that you need to go through.

而且我想確保我鎖定了這一點，特別是如果你有長期的關係，你已經完成了你的認證和你需要通過的所有其他事情。

So I think it will be -- it's tough to say exactly, but I know that we're in discussions now, and certainly would be -- I think it would probably be more the norm than the exception with regards to either longer-term or shorter-term contracts.

所以我認為這將是 - 很難準確地說出來，但我知道我們現在正在討論，而且肯定會 - 我認為這可能是更長期的常態而不是例外或短期合同。

Okay.

好的。

Got it.

知道了。

And then I -- I mean, so from your commentary, I mean, should we assume basically that all of your western plants are either idled or varying -- or running at very low numbers?

然後我——我的意思是，從你的評論來看，我的意思是，我們是否應該假設你所有的西方工廠都處於閒置或變化狀態——或者運行的數量非常少？

And as Mike had mentioned in his remarks, you're looking at all options there and those are potentially part of the strategic plan going forward.

正如邁克在他的講話中提到的那樣，您正在查看那裡的所有選項，這些選項可能是未來戰略計劃的一部分。

But also you could come back with those providing -- or producing a higher-quality product and perhaps that is alcohols.

但你也可以帶著那些提供或生產更高質量產品的人回來，也許那是酒精。

I mean, is there a way to think about the type of investment that, that would require?

我的意思是，有沒有辦法考慮需要的投資類型？

I mean I know the near term, it's about the debt.

我的意思是我知道近期，它是關於債務。

But as you look a little bit longer-term and what this potentially means for your business, maybe thoughts on what it might take to upgrade some of the western plants.

但是，當您看起來有點長遠以及這對您的業務可能意味著什麼時，也許會考慮升級一些西方工廠可能需要什麼。

Yes.

是的。

I'll take that one, Eric.

我要那個，埃里克。

As we said, we are considering every option that's out there.

正如我們所說，我們正在考慮所有可用的選項。

We -- the one thing we know for sure is, after a decade of struggling with fuel ethanol in the west, to open them up as pure fuel ethanol facilities probably is not in our future.

我們 - 我們確定的一件事是，在西方與燃料乙醇鬥爭了十年之後，將它們作為純燃料乙醇設施開放可能不在我們的未來。

We need to come up with a differentiated strategy for those locations to be able to open them up.

我們需要為這些地點制定差異化戰略，以便能夠開放它們。

We want to have predictability of positive margins going forward if we do open them up.

如果我們確實開放它們，我們希望對未來的正利潤率具有可預測性。

And we have been very actively looking, since we idled those facilities, of what those options may be.

自從我們閒置這些設施以來，我們一直在非常積極地尋找這些選擇可能是什麼。

So right now, I don't have anything definitive for you.

所以現在，我對你沒有任何確定的東西。

We have a lot of interest, different ideas.

我們有很多興趣，不同的想法。

And as we know more, we'll certainly share that.

正如我們所知道的那樣，我們肯定會分享這一點。

(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。

Congratulations on a strong quarter.

祝賀一個強勁的季度。

With respect to the alcohol sales, is there any revenue concentration on that side right now?

關於酒類銷售，目前是否有任何收入集中在這一方面？

I think it's pretty well distributed, and it certainly doesn't look like what you would normally see in the -- in more of the fuel ethanol space.

我認為它的分佈非常好，而且它看起來肯定不像你通常會在更多的燃料乙醇領域看到的那樣。

And I would say that also, as I mentioned on the prior -- in some of the prior questions and answers, this is anything but normal.

我還要說，正如我在前面提到的——在前面的一些問題和答案中，這絕不是正常的。

So you would take not only your existing relationships, but then you would add to it not only incremental addition or volume that you would be providing your existing customers, but then many new customers that have come about as a result.

因此，您不僅要利用現有的關係，而且不僅要增加您將為現有客戶提供的增量或數量，還要增加由此產生的許多新客戶。

And so I think the general answer is no.

所以我認為一般的答案是否定的。

Got it.

知道了。

And then from a certification point of view, Bryon or Mike, players who don't have the required certifications, et cetera, should we assume they probably are locked out of the market now that you're signing up these customers?

然後從認證的角度來看，Bryon 或 Mike，沒有所需認證的玩家，等等，我們是否應該假設他們可能因為您正在註冊這些客戶而被排除在市場之外？

In some sense, some land-grabbing taking place right now, at least for the next few quarters or even until mid-2021?

從某種意義上說，至少在接下來的幾個季度甚至到 2021 年年中，現在正在發生一些土地掠奪？

Yes.

是的。

The certifications, the back office, as we indicated in the remarks, this is a heck of a lot more than just producing product.

正如我們在評論中指出的那樣，認證、後台辦公室不僅僅是生產產品。

There are all kinds of audits, certifications, laboratory resources that you need behind the scenes to be able to deal with the higher-quality customers.

您在幕後需要各種審核、認證、實驗室資源，才能與更高質量的客戶打交道。

They demand it.

他們要求它。

And we -- again, we've been doing this for an awful long time, and we have those resources.

而且我們 - 再說一次，我們已經這樣做了很長時間，而且我們擁有這些資源。

And even with that, we're continuing to develop further resources and certifications to even be able to play at a higher level.

即便如此，我們仍在繼續開發更多資源和認證，以便能夠在更高級別上進行比賽。

So I can't tell you how critical it is.

所以我不能告訴你它有多重要。

And I think it is a differentiator going forward in terms of the people that really do have the skill set, the history, the culture and the back office to be able to handle those kind of things and deal with customers going forward.

而且我認為，就真正擁有技能、歷史、文化和後台的人員而言，這是一個差異化因素，能夠處理這些事情並與未來的客戶打交道。

We're being very selective.

我們非常有選擇性。

We've had a lot of new customer interest, obviously, over the last quarter.

顯然，在上個季度，我們有很多新客戶的興趣。

And our commercial group in Pekin has been very selective in terms of looking forward to what kind of customers we want to engage with on a go-forward basis.

我們在北京的商業團隊在期待我們想要與什麼樣的客戶互動方面一直非常有選擇性。

And again, I think it will bear fruit.

再說一次，我認為它會結出碩果。

It also is making us stronger, making us take a harder look at ourselves.

它也讓我們變得更強大，讓我們更加審視自己。

But again, we've been doing this for a long time, I think we have a leg-up on most.

但同樣，我們已經這樣做了很長時間，我認為我們在大多數方面都有優勢。

Understood.

明白了。

And again, just a follow-up on the alcohol side.

再一次，只是酒精方面的後續行動。

Is this all going to your domestic customers?

這一切都交給您的國內客戶嗎？

Or is there some international contribution here as well?

或者這裡也有一些國際貢獻？

Yes, it's both.

是的，兩者都是。

I would say that the -- there's a significant amount that's probably domestic.

我會說 - 有很大一部分可能是國內的。

But we also have a number of international customers, and we would expect also in the future that, that market would continue to grow more really for the likes of industrial-grade alcohols.

但我們也有許多國際客戶，我們也希望在未來，工業級酒精等市場將繼續增長。

And I would add to that, again, like we mentioned, we are perfectly positioned to deal in the export market when that time comes with our barge capability out of the Pekin campus.

我還要補充一點，就像我們提到的那樣，當我們在北京園區外的駁船能力到來時，我們完全有能力在出口市場上進行交易。

Yes, that's -- yes.

是的，那是——是的。

The infrastructure edge definitely is a positive over here.

基礎設施優勢在這里肯定是積極的。

Just one last one on the high-value feed side.

在高價值飼料方面只有最後一個。

Did something change relative to prior periods with respect to this business line?

相對於該業務線的前期，有什麼變化嗎？

Given that you saw some stronger demand, it looks like -- just wondering if there's more sales and marketing effort.

鑑於您看到了一些更強勁的需求，看起來 - 只是想知道是否有更多的銷售和營銷工作。

Or was it just a demand-side thing?

還是只是需求方面的事情？

Yes.

是的。

I mean, I wouldn't say so.

我的意思是，我不會這麼說。

I mean, certainly, it's getting a lot more headlines lately.

我的意思是，當然，它最近獲得了更多的頭條新聞。

I know that a lot of producers in the fuel ethanol space have been focusing on -- for just the economy awards, trying to convert dry mills to wet mills.

我知道燃料乙醇領域的許多生產商一直在關注——僅僅為了經濟獎，試圖將乾磨機轉變為濕磨機。

We've been producing, as Mike's emphasized, doing it for a long time, over 2 decades of producing yeast and with the building of that original facility.

正如邁克所強調的那樣，我們已經生產了很長時間，超過 2 年的酵母生產和原始設施的建設。

It's certainly an area of focus for us in the future.

這無疑是我們未來關注的一個領域。

We've got a lot of latent product that we can further extract and we'll be focusing on that.

我們有很多可以進一步提取的潛在產品，我們將專注於此。

So to the earlier question of, are we committed?

那麼對於前面的問題，我們是否承諾？

Clearly, we're committed to reducing our debt obligations, but we're also committed to reinvesting in our assets, and we'll certainly take this opportunity to do that and improve our production capabilities there to continue to augment.

顯然，我們致力於減少我們的債務，但我們也致力於對我們的資產進行再投資，我們肯定會藉此機會這樣做並提高我們在那裡的生產能力以繼續增加。

But I guess one last thing I'd add is, you'll recall that we talked in the past about co-product.

但我想我要補充的最後一件事是，你會記得我們過去談論過聯合產品。

Normally, this -- the proteins and the -- it's usually referred to in this space as co-products.

通常，這個——蛋白質和它——在這個領域通常被稱為副產品。

It's not intended to be a less interesting part of the business, but it's awfully just to offset against your input cost of corn.

這並不是要成為業務中不那麼有趣的部分，但它只是為了抵消您的玉米投入成本。

But you'll recall that on a wet mill, you're looking at co-product returns well in excess of 50% as compared to what would be a normal dry mill, which should be around 30%.

但是您會記得，在濕磨機上，您看到的副產品回報率遠遠超過 50%，而普通乾磨機的回報率應該在 30% 左右。

So you see those in our numbers, and you'll continue to see that.

因此，您會在我們的數字中看到這些，並且您將繼續看到這一點。

Certainly, you'll see a greater number of that.

當然，你會看到更多。

Or it will be -- it will stand out more clearly because your denominator less number of plants and production that's going into that denominator to show you that return.

或者它會 - 它會更清楚地脫穎而出，因為你的分母更少的工廠和生產進入該分母以向你展示回報。

Ladies and gentlemen, this concludes our question-and-answer session.

女士們，先生們，我們的問答環節到此結束。

I would now like to turn the call back over to Mike Kandris, co-CEO, for any closing remarks.

我現在想將電話轉回聯席首席執行官邁克坎德里斯，以聽取任何結束語。

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

感謝您今天加入我們，感謝您對太平洋乙醇公司的持續支持。

We really hope everybody is staying safe, and we look forward to speaking with you soon.

我們真的希望每個人都保持安全，我們期待很快與您交談。

Thank you.

謝謝你。

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。