Alto Ingredients Inc (ALTO) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Pacific Ethanol First Quarter 2020 Financial Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker, Ms. Moriah Shilton, Senior Vice President, LHA Investor Relations. Please go ahead.

女士們，先生們，感謝您的支持並歡迎參加太平洋乙醇公司 2020 年第一季度財務業績電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）我現在想將會議交給您的發言人，LHA 投資者關係高級副總裁 Moriah Shilton 女士。請繼續。

Thank you, Shari, and thank you all for joining us today for the Pacific Ethanol First Quarter 2020 Results Conference Call. On the call today are Neil Koehler, President and CEO; and Bryon McGregor, CFO. Neil will begin with a review of business highlights. Bryon will provide a summary of the financial results, and then Neil will return to discuss Pacific Ethanol's outlook and open the call for questions.

謝謝你，Shari，感謝大家今天加入我們參加太平洋乙醇公司 2020 年第一季度業績電話會議。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。尼爾將首先回顧業務亮點。 Bryon 將提供財務結果摘要，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. The company also prepared a presentation for today's call that is available on the company's website at pacificethanol.com.

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。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 May 20. The details of which are included in yesterday's earnings press release. A webcast replay will also be available at Pacific Ethanol's website.

今天電話會議的電話重播將持續到 5 月 20 日。詳細信息包含在昨天的收益新聞稿中。 Pacific Ethanol 的網站也將提供網絡重播。

Please note that information in this call today speaks only as of today, May 13, and therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay. 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. The actual future results of Pacific Ethanol could differ materially from those statements. 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.

請注意，今天本次電話會議中的信息僅適用於今天，5 月 13 日，因此，建議您在任何重播時，時間敏感信息可能不再準確。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。 Pacific Ethanol 的實際未來結果可能與這些陳述存在重大差異。可能導致或促成此類差異的因素包括但不限於太平洋乙醇公司向 SEC 提交的文件中先前和不時披露的事件、風險和其他因素。

Except as required by applicable law, the company assumes no obligation to update any forward-looking statements. In management's prepared remarks, non-GAAP measures will be referenced. 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. 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 and extinguishment of debt, purchase accounting adjustments, fair value adjustments and depreciation and amortization expense.

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。在管理層準備好的評論中，將引用非公認會計原則措施。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。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. Neil?

現在，我很高興介紹總裁兼首席執行官 Neil Koehler。尼爾？

Thank you, Moriah, and thank you, everyone, for joining us today. First, I want to acknowledge those most affected by the pandemic and thank our health care professionals and first responders fighting the effects of COVID-19. This is a challenging time for all, and we appreciate the dedication and work of all frontline workers to help bring us through this crisis. Pacific Ethanol is an essential business providing low carbon renewable fuels, pharmaceutical-grade alcohol and high-protein feed products. And I'm pleased to report that we have operated safely with our full workforce at our operating facilities.

謝謝你，Moriah，謝謝大家今天加入我們。首先，我要感謝那些受疫情影響最嚴重的人，並感謝我們與 COVID-19 影響作鬥爭的醫療保健專業人員和急救人員。這對所有人來說都是一個充滿挑戰的時刻，我們感謝所有一線工作人員的奉獻精神和工作，幫助我們度過了這場危機。 Pacific Ethanol 是一家提供低碳可再生燃料、醫藥級酒精和高蛋白飼料產品的重要企業。我很高興地報告，我們在運營設施中的全部員工隊伍已經安全運營。

I'd like to thank our employees for their commitment. They have been able to continue to work with physical distancing and other protective protocols now as part of our standard operating procedures.

我要感謝我們的員工的承諾。作為我們標準操作程序的一部分，他們現在能夠繼續使用物理距離和其他保護協議。

The onset of the pandemic decimated demand for gasoline and ethanol, while at the same time, spurred a greater need for sanitizers and disinfectants. Our team responded proactively in 2 areas. First, due to lower demand and an acute negative margin environment, we initially idled over 60% of our ethanol capacity.

大流行的爆發減少了對汽油和乙醇的需求，同時刺激了對消毒劑和消毒劑的更大需求。我們的團隊在兩個方面做出了積極響應。首先，由於需求下降和嚴重的負利潤率環境，我們最初閒置了超過 60% 的乙醇產能。

Second, to respond to increased demand for pharmaceutical-grade alcohol, we shipped to production at our Pekin, Illinois facilities to substantially increase output of this high value product. The overall market is recovering from a historic downturn. We entered the first quarter with a continued supply and demand imbalance, which negatively impacted margins. By the end of March due to government stay-at-home orders in response to the spread of COVID-19 across the country, demand for gasoline and ethanol dropped over a period of several weeks by as much as or more than 50% across our markets.

其次，為了應對對藥用級酒精不斷增長的需求，我們在伊利諾伊州北京的工廠進行生產，以大幅增加這種高價值產品的產量。整個市場正在從歷史性的低迷中復蘇。我們進入第一季度時，供需持續失衡，這對利潤率產生了負面影響。到 3 月底，由於政府為應對 COVID-19 在全國范圍內的傳播而下令居家令，我們對汽油和乙醇的需求在幾週內下降了多達或超過 50%市場。

With the collapse in ethanol prices and margins, the industry responded quickly through an unprecedented idling of approximately 50% of capacity, with an estimated 75 plants completely idled and many others slowing to minimum production. Pacific Ethanol was also quick to idle ethanol production that was not cash flow positive. Based on increasing demand and improving margins, we are gradually increasing production and are currently operating at about 50% of total capacity.

隨著乙醇價格和利潤率的暴跌，該行業迅速做出反應，空轉了大約 50% 的產能，估計有 75 家工廠完全閒置，許多其他工廠的產量放緩至最低限度。 Pacific Ethanol 也迅速閒置了沒有現金流的乙醇生產。基於不斷增長的需求和不斷提高的利潤率，我們正在逐步增加產量，目前以總產能的 50% 左右運營。

The recovery has been significant in the last few weeks with recent stay-at-home orders beginning to relax and states beginning to reopen for business, the immediate effect has been positive, albeit at production margins that are still challenging.

過去幾週，隨著最近的居家訂單開始放鬆，各州開始重新營業，經濟復甦顯著，儘管生產利潤率仍然具有挑戰性，但直接影響是積極的。

Since the demand lows of April, we have seen demand increases of over 40% and 3 consecutive week declines in overall ethanol inventories. While there still is a long way to go in both demand and margins, we are encouraged by this trend. We will continue to monitor market trends and adjust our production levels in response to market signals.

自 4 月份需求低點以來，我們看到需求增長了 40% 以上，並且整體乙醇庫存連續 3 週下降。儘管在需求和利潤方面還有很長的路要走，但我們對這一趨勢感到鼓舞。我們將繼續關注市場趨勢，並根據市場信號調整我們的生產水平。

I'm pleased to report that our diversification strategy into high-value products is performing quite well. While fuel ethanol has suffered from demand destruction and negative production margins, the USP-grade alcohol and high-protein feed we produced at our Pekin, Illinois facilities have done very well. Diversification was a strategic driver when we purchased first the Pekin wet and dry mills and yeast plant in 2015 and 2 years later, when we purchased the adjacent Illinois corn processing plant, all now functioning as an integrated campus.

我很高興地報告，我們向高價值產品的多元化戰略表現良好。雖然燃料乙醇受到需求破壞和負生產利潤的影響，但我們在伊利諾伊州北京的工廠生產的 USP 級酒精和高蛋白飼料表現非常好。當我們在 2015 年首次購買北京濕法和乾法磨坊和酵母廠時，多元化是戰略驅動力，兩年後，當我們購買了鄰近的伊利諾伊州玉米加工廠時，現在所有這些工廠都作為一個綜合園區運作。

This strategy is producing positive results. We have produced high-quality alcohol for sale nationally and internationally for many applications for years. As a result, we were in a strong position to increase high-quality alcohol production in response to new demand for sanitizers and disinfectants. Also with the industry's overall reduction of ethanol production and dry distillers grains, our high-protein feed products are seeing increased demand and correspondingly higher prices.

這一戰略正在產生積極的結果。多年來，我們生產的高品質酒精在國內和國際上銷售，用於許多應用。因此，我們在增加高品質酒精生產方面處於有利地位，以應對對消毒劑和消毒劑的新需求。此外，隨著行業乙醇產量和乾酒糟的整體減少，我們的高蛋白飼料產品需求增加，價格也相應上漲。

We are pleased with the performance of our Pekin operations, which we expect will make a materially positive contribution in the second quarter.

我們對北京業務的表現感到滿意，我們預計這將在第二季度做出實質性的積極貢獻。

On the export front, the industry actually had a strong first quarter of over 500 million gallons exported, which is 30% higher than the same period last year. While exports have slowed in the second quarter with worldwide demand destruction, due to the pandemic, we expect exports to pick up as other countries reopen their economies.

在出口方面，該行業第一季度實際出口量超過 5 億加侖，比去年同期增長 30%。儘管由於大流行導致全球需求破壞，第二季度出口放緩，但我們預計隨著其他國家重新開放經濟，出口將回升。

China is the first country to emerge from the pandemic, and we believe China may step in later this year as a significant buyer of U.S. ethanol as part of the Phase 1 trade deal between the U.S. and China.

中國是第一個擺脫疫情的國家，我們相信中國可能會在今年晚些時候作為美國乙醇的重要買家加入，作為中美第一階段貿易協議的一部分。

On the regulatory front, while the EPA has gone to the sidelines until the appeals process of the 10th Circuit is over, we do believe inappropriate and illegal granting of small refinery exemptions will be eliminated which would restore over 1 billion gallons of annual demand for renewable fuels going forward.

在監管方面，雖然 EPA 在第十巡迴上訴程序結束之前一直處於觀望狀態，但我們確實相信將消除對小型煉油廠的不當和非法豁免，這將恢復每年超過 10 億加侖的可再生能源需求燃料前進。

A properly and legally implemented RFS, both protects blenders in the midst of the current demand destruction as the annual blending obligations are converted to percentage blend rates of actual consumption and will also drive more demand in use of E15 after markets return to normal levels following the pandemic. The support of low-carbon fuel policies and market development, which reward fuels or technology based on their life cycle carbon emission reductions remains a core strategy of Pacific Ethanol. We are working with multiple jurisdictions to expand low carbon markets across the country, which will provide value to the low carbon ethanol we produce.

一個適當且合法實施的 RFS，既可以在當前需求破壞的情況下保護攪拌機，因為年度混合義務被轉換為實際消費的百分比混合率，也將在市場恢復正常水平後推動更多使用 E15 的需求。大流行。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，仍然是太平洋乙醇的核心戰略。我們正在與多個司法管轄區合作，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。

Finally, in mid-April, we took a significant step to reduce our debt as we closed on our agreement to sell our 74% ownership interest in Pacific Aurora to Aurora Cooperative for a total valuation of $52.8 million. We are also in active discussions with multiple parties regarding the sale of strategic partnerships for various other assets.

最後，在 4 月中旬，我們邁出了重要的一步來減少我們的債務，因為我們達成了將我們在 Pacific Aurora 的 74% 所有權權益出售給 Aurora Cooperative 的協議，總估值為 5280 萬美元。我們還與多方積極討論出售各種其他資產的戰略合作夥伴關係。

I'd now like to turn the call over to Bryon for a financial review of our first quarter 2020 results.

我現在想將電話轉給布賴恩，以對我們 2020 年第一季度的業績進行財務審查。

Thank you, Neil. I'll begin with the comparison of the first quarter of 2020 results to the fourth quarter of 2019. For the first quarter of 2020, net sales worth $311 million compared to $358 million in the fourth quarter, the decline resulting from a decrease in our average price per gallon sold and a reduction in both production and third-party gallons sold. Cost of goods sold was $324 million, which resulted in a gross loss of $12.9 million compared to a gross profit of $3.2 million in the prior quarter, attributable to the historic drop in fuel ethanol prices.

謝謝你，尼爾。我將首先比較 2020 年第一季度與 2019 年第四季度的業績。對於 2020 年第一季度，淨銷售額為 3.11 億美元，而第四季度為 3.58 億美元，下降是由於我們的每加侖銷售的平均價格以及產量和第三方銷售加侖的減少。由於燃料乙醇價格的歷史性下跌，銷售商品成本為 3.24 億美元，與上一季度的毛利潤 320 萬美元相比，毛虧損 1,290 萬美元。

SG&A expenses were $10.2 million compared to $11.8 million in the fourth quarter, reflecting our cost-cutting initiatives. As previously noted, although we expect general SG&A expenses to be significantly lower in 2020. Professional fees through at least the first half of the year will, out of necessity, be higher to facilitate our restructuring initiatives. Loss available to common shareholders was $25.4 million or $0.47 per share. This loss is compared to $41.4 million or $0.85 per share in the fourth quarter, the latter of which included a $29.3 million asset impairment charge related to the sale of our ownership interest in Pacific Aurora and a $6.5 million loss on debt extinguishment related to the amendment of our secured debt obligations.

SG&A 費用為 1020 萬美元，而第四季度為 1180 萬美元，這反映了我們削減成本的舉措。如前所述，儘管我們預計 2020 年的一般 SG&A 費用將顯著降低。出於必要性，至少在今年上半年的專業費用將更高，以促進我們的重組計劃。普通股股東可獲得的損失為 2540 萬美元或每股 0.47 美元。這一損失與第四季度的 4140 萬美元或每股 0.85 美元相比，後者包括與出售我們在 Pacific Aurora 的所有權權益相關的 2930 萬美元的資產減值費用以及與修正案相關的債務清償損失 650 萬美元我們有擔保的債務義務。

Adjusted EBITDA was negative $12.3 million compared to positive $1.9 million in the fourth quarter of 2019.

調整後的 EBITDA 為負 1230 萬美元，而 2019 年第四季度為正 190 萬美元。

Turning to our balance sheet. At March 31, 2020, our cash and cash equivalents were $26.8 million compared to $19 million at December 31, 2019. The increase reflects our efforts to monetize our working capital. Subsequent to quarter end, we received $20.2 million in cash before fees and $16.5 million in promissory notes from the sale of our 74% ownership interest in Pacific Aurora. Approximately $14.5 million of the cash proceeds were used to make principal payments on our term debt.

轉向我們的資產負債表。截至 2020 年 3 月 31 日，我們的現金和現金等價物為 2680 萬美元，而 2019 年 12 月 31 日為 1900 萬美元。這一增長反映了我們努力將營運資金貨幣化。在季度末之後，我們通過出售我們在 Pacific Aurora 的 74% 所有權權益獲得了 2020 萬美元的未收費現金和 1650 萬美元的期票。大約 1450 萬美元的現金收益用於支付我們的定期債務本金。

Regarding our efforts to restructure our existing debt, we continue to work positively and move steadily forward with our lenders. With the improving market conditions, we believe these conversations will become more -- even more constructive. Also noteworthy in May through the Paycheck Protection Program under the CARES Act, Pacific Ethanol and PEP can receive a combined $9.9 million from the small business administration. The goal of the program is to maintain jobs in the small business sector. And we are using the loan proceeds to rehire and retain our employees and fund payroll, integral to maintaining our operations to produce essential products.

關於我們重組現有債務的努力，我們繼續積極工作，並與我們的貸方穩步推進。隨著市場狀況的改善，我們相信這些對話將變得更加——甚至更具建設性。同樣值得注意的是，通過 CARES 法案下的薪資保護計劃，Pacific Ethanol 和 PEP 在 5 月份可以從小企業管理局獲得總計 990 萬美元。該計劃的目標是維持小企業部門的工作。我們正在使用貸款收益來重新僱用和留住我們的員工並為工資提供資金，這對於維持我們生產基本產品的運營不可或缺。

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. We are encouraged by the alignment of interest of our stakeholders, which is supported by the performance we are seeing, particularly at our Midwest operations. Our continued marketing and sales of ethanol to all our customers with our ability to manage costs at idled assets. Times have been tough during the ethanol margin squeeze. However, the substantial increase in demand for our production of high-quality alcohol, combined with the PPP loans and sale of our ownership of Pacific Aurora have improved our liquidity as transportation fuel markets are now improving as well. As the market normalizes, we remain convinced of the compelling cost, octane, carbon and health benefits of ethanol and the related long-term demand. We are actively working to best position Pacific Ethanol through its diversified platform to capitalize on the opportunities ahead for the ethanol industry and our company.

謝謝你，布賴恩。我們對利益相關者的利益一致感到鼓舞，這得到了我們所看到的業績的支持，特別是在我們的中西部業務中。我們有能力管理閒置資產的成本，繼續向所有客戶營銷和銷售乙醇。在乙醇利潤緊縮期間，日子一直很艱難。然而，對我們生產優質酒精的需求大幅增加，加上 PPP 貸款和出售我們對 Pacific Aurora 的所有權，提高了我們的流動性，因為運輸燃料市場現在也在改善。隨著市場正常化，我們仍然相信乙醇具有令人信服的成本、辛烷值、碳和健康益處以及相關的長期需求。我們正積極努力通過其多元化平台為太平洋乙醇公司提供最佳定位，以利用乙醇行業和我們公司的未來機遇。

Shari, with that, I'd like to now open the call for questions.

Shari，我想現在開始提問。

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

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

You mentioned it a little bit in your comments there. But just on the strategic review, maybe if you could give a little more color. I know last go around, you talked about in active discussions with multiple parties. Curious how that's trended. And also curious, I know we've seen modest market improvement here. Is that something that -- potentially that you've seen a pickup in terms of interest and discussions as a result?

你在那裡的評論中提到了一點。但就戰略審查而言，也許你可以多說一點。我知道最後一次，你在與多方的積極討論中談到。很好奇這趨勢如何。而且很好奇，我知道我們在這裡看到了適度的市場改善。是不是因為你看到了興趣和討論的回升？

Well, it's -- I think with the significant downturn in the industry and the economy here and worldwide, not a surprise that even -- not even having the ability to go look at ethanol plants, let alone put in meaningful bids for them. They certainly slowed that process down, and we've refocused it more on looking at the opportunities to partner and to look at other strategic relationships. Certainly open to continuing to monetize assets, but that process has been pretty slow currently.

嗯，這是 - 我認為隨著這里和全球行業和經濟的顯著衰退，甚至 - 甚至沒有能力去看看乙醇工廠，更不用說為他們提出有意義的投標，這並不奇怪。他們當然放慢了這一進程，我們將其重新集中在尋找合作機會和其他戰略關係上。當然可以繼續將資產貨幣化，但目前這一過程相當緩慢。

Got it. Yes. No surprise there. I mean is it something where you feel -- well, it sounds like you feel like partnerships or other angles are sufficient to have to accomplish your goals there?

知道了。是的。那裡並不奇怪。我的意思是你覺得這是什麼——嗯，聽起來你覺得夥伴關係或其他角度足以實現你的目標？

Yes. And as we're seeing the market improve, we're seeing better performance out of our assets as well. And so that's all positive.

是的。隨著我們看到市場改善，我們也看到我們的資產表現更好。所以這都是積極的。

Okay. Maybe just turning to the overall market. I know you -- while the market, you've also been very thoughtful on the production side. Just curious, though, this has been I mean easily the worst market that anyone's ever seen for a lot of reasons. Is this something that you think potentially means a structural change to the amount of production that's out there? Or do you think that what we've seen in the past market gets really difficult, things come offline and then the moment improves, productions right back. Just thoughts, does this time differ from the past? Or do you expect a similar dynamic?

好的。也許只是轉向整體市場。我知道你——在市場上，你在生產方面也很周到。不過，只是好奇，我的意思是，這很容易成為任何人所見過的最糟糕的市場，原因有很多。您認為這是否可能意味著現有產量的結構性變化？或者您是否認為我們在過去的市場中看到的事情變得非常困難，事情脫機，然後瞬間改善，生產馬上回來。只是想想，這次和過去有什麼不同嗎？或者你期待類似的動態？

Well, time will tell. I would say that we're cautiously optimistic that this has been so brutal and so many plants went down, both hot idle and cold idle. Certainly, when you cold idle a plant and lay off workers, it is -- you don't just dial it back up. So I think given the financial damage that was done, the -- just the complete falling out on demand and plants going down hard, that we will see a more gradual increase in production and as markets improve both domestically and export, we are cautiously optimistic that we can see a more balanced market going forward.

好吧，時間會證明一切。我想說，我們謹慎樂觀地認為，情況如此殘酷，如此多的工廠倒閉，熱閒置和冷閒置。當然，當你讓工廠閒置並解僱工人時，它是——你不只是把它調回來。因此，我認為鑑於已經造成的財務損失，只是需求完全下降和工廠嚴重下降，我們將看到產量逐漸增加，隨著國內和出口市場的改善，我們持謹慎樂觀的態度我們可以看到一個更加平衡的市場向前發展。

New demand, both domestically with the higher blends, not sure we'll get back to total gasoline demand. So that focus on no more SREs and encouraging that the introduction of E15 in key markets and getting back to growing exports into countries like China becomes important.

新的需求，無論是在國內還是更高的混合物，都不確定我們是否會回到汽油總需求。因此，不再關注 SRE，並鼓勵在關鍵市場引入 E15 並恢復對中國等國家的出口增長變得很重要。

What we're seeing today is very encouraging because we've seen gasoline demand come back to where -- now we're only just a little over 20% down from the pre-COVID levels of demand, and that was after being down 50%, so a pretty good rebound. Whereas ethanol has lagged significantly, which we need to do. We need inventories to come down. So if you look at annualized demand based on the numbers that were just released this morning of about 11.3 billion gallons of demand for ethanol and 113 billion-gallon gasoline market annualized and assuming that even 1 billion-gallon run rate on exports, that would be annualized demand of 12.3 billion gallons, and we were producing at about 9.5 billion this week. Which is why we've seen a significant reduction in inventories over the last 3 weeks.

我們今天看到的情況非常令人鼓舞，因為我們已經看到汽油需求回到了原來的水平——現在我們的需求水平僅比疫情前的水平下降了 20% 多一點，那是在下降 50% 之後%，所以反彈不錯。而乙醇已經顯著落後，這是我們需要做的。我們需要庫存下降。因此，如果您根據今天上午剛剛發布的數據（約 113 億加侖乙醇需求和 1130 億加侖汽油市場的年化需求）來查看年化需求，並假設即使出口量達到 10 億加侖，那也將是年需求量為 123 億加侖，而我們本週的產量約為 95 億加侖。這就是為什麼我們在過去 3 週內看到庫存顯著減少的原因。

In fact, from the peak, looks like we're down 13% on inventories. But still the cautionary pieces that were still 15% higher than last year. So we need to continue to be in this position where we, on an annualized basis, are producing less than the demand is showing and for inventories to continue to drop and to reach a level that is a more balanced inventory and then to keep the production and the supply and demand in better balance. So we are cautiously optimistic.

事實上，從峰值來看，我們的庫存似乎下降了 13%。但仍然是比去年高出 15% 的警示部分。因此，我們需要繼續處於這樣的位置，即按年計算，我們的產量低於需求顯示，庫存繼續下降並達到更平衡的庫存水平，然後保持產量供需更加平衡。所以我們持謹慎樂觀的態度。

Okay. Maybe last one for me, and this is pretty recent. I just saw this morning. But I see a proposal, an infrastructure proposal. I mean it looks like from Democrats, I mean it's very early in the process, but potentially, $0.45 a gallon from the government for production from Jan 1 to May 1. Maybe not necessarily on this specific proposal, but do you think that eventually the ethanol industry does get some government assistance since I know that's been an area of frustration here over the last, call it, 4 to 6 weeks?

好的。也許對我來說是最後一個，這是最近的事。我今天早上才看到。但我看到了一個提案，一個基礎設施提案。我的意思是它看起來像民主黨人，我的意思是這個過程還很早，但政府可能會從 1 月 1 日到 5 月 1 日為每加侖 0.45 美元生產。也許不一定在這個具體的提議上，但你認為最終乙醇行業確實得到了一些政府援助，因為我知道這在過去是一個令人沮喪的領域，稱之為，4 到 6 週？

Yes. I mean, we are -- as we mentioned, an essential business providing very needed goods, both on the fuel and the high-quality alcohol and protein to the economy. We have over 350,000 workers in this industry, many of whom are now not working. And it's hard for the farmers, it's hard for the biofuel producers. And yes, we do believe that it's appropriate for government assistance to get this industry and others back on their feet. So we were encouraged to see that provision in the House bill, as you point out. It's just a -- there's not bipartisan support around that, and it could be a process and who knows what a final form might look like. But we do think it's appropriate, and we do think that we will see some additional support for the ethanol industry.

是的。我的意思是，正如我們所提到的，我們是一家必不可少的企業，為經濟提供非常需要的商品，包括燃料以及高質量的酒精和蛋白質。我們在這個行業有超過 350,000 名工人，其中許多人現在沒有工作。這對農民來說很難，對生物燃料生產商來說也很難。是的，我們確實相信政府援助讓這個行業和其他行業重新站起來是合適的。因此，正如您所指出的，我們被鼓勵在眾議院法案中看到該條款。這只是一個 - 沒有兩黨的支持，它可能是一個過程，誰知道最終形式會是什麼樣子。但我們確實認為這是適當的，我們確實認為我們會看到對乙醇行業的一些額外支持。

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

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

Yes. I hope you're staying safe and healthy.

是的。我希望你保持安全和健康。

Thank you. I hope you are as well. We are.

謝謝你。我希望你也是。我們是。

Yes. So the SRE EPA ruling, that has not been challenged. Do you think it is going to be applicable nationwide? Or is it not -- is it only going to be in those regions?

是的。因此，SRE EPA 的裁決並未受到質疑。你認為它會在全國范圍內適用嗎？或者不是——它只會出現在這些地區嗎？

That's a good question. We think it will be very difficult to not apply it nationally. And the EPA before they punted to the appeals process to play it out had indicated that they were inclined to apply it nationally. It's -- the principal certainly do apply nationally. As you point out, it was the 10th Circuit, it only impacted those refiners. But if it were not to be applied nationally by the EPA, then there would be follow-up legal challenges to enforce that conclusion because it's the only logical conclusion. So we're awaiting to see -- the court 10th Circuit very quickly unanimously refused to rehear the case and the next stop. And the only last next stop would be the Supreme Court. There has not yet been appeal by the oil companies or the EPA to the Supreme Court. They have until early July to do that.

這是個好問題。我們認為在全國范圍內不應用它是非常困難的。環保署在將上訴程序付諸實施之前表示他們傾向於在全國范圍內應用它。這是 - 校長當然適用於全國。正如您所指出的，這是第 10 巡迴賽，它只影響了那些煉油廠。但是，如果 EPA 不將其應用於全國，那麼執行該結論將面臨後續法律挑戰，因為這是唯一合乎邏輯的結論。所以我們拭目以待——第 10 巡迴法院很快一致拒絕重新審理此案和下一站。唯一的最後一站是最高法院。石油公司或環保署尚未向最高法院提出上訴。他們要到七月初才能做到這一點。

So while it is the law of the land, and it will be interesting to see how that's reflected in the EPA RVO proposals, the EPA has punted this to see if there is going to be an appeal to Supreme Court. We would think that it would be highly unlikely for the Supreme Court to hear the -- that case, even if it were appealed, but we do expect, well, maybe not the EPA but that the oil companies will attempt to appeal that case to the Supreme Court. So we will have to just wait and see on that.

因此，雖然這是土地法，並且有趣的是看看這在 EPA RVO 提案中是如何反映的，但 EPA 已經對此進行了抨擊，以查看是否會向最高法院提出上訴。我們認為最高法院極不可能審理該案，即使它被上訴，但我們確實預計，好吧，也許不是環保署，但石油公司將試圖上訴該案最高法院。因此，我們將不得不拭目以待。

Understood. So the ruling stands until appealed, right? I mean, are there any extra SREs that you are seeing in recent past?

明白了。所以裁決一直有效，直到上訴，對吧？我的意思是，你最近有沒有看到任何額外的 SRE？

No. We have not seen -- there is a queue, I can't recall how many 20 -- high 20s maybe that were in front of the EPA for the 2019 year, and they are just not -- they are basically saying, we're not going to deal with these until the appeal process has been completed. But it is in the 10th Circuit and whatever, it's 30% of the refined product in the U.S., I believe, is in that 10th Circuit. It is the law of the land, and you could not grant an SRE. You'd be breaking the law if you're granting SRE to any refinery in the 10th Circuit today.

不。我們還沒有看到——有一個隊列，我不記得有多少 20——可能是 2019 年在 EPA 面前的最高 20 人，他們只是沒有——他們基本上是在說，在上訴程序完成之前，我們不會處理這些問題。但它在第 10 巡迴賽中，無論如何，它是美國 30% 的精煉產品，我相信，在第 10 巡迴賽中。這是土地法，你不能授予 SRE。如果您今天將 SRE 授予第 10 巡迴賽的任何煉油廠，您將觸犯法律。

Understood. On the balance sheet for PEIX, I think during the last call, you had talked about a Chief Restructuring Officer, either a formal or informal role, but they were going to be in charge of negotiating long-term plans for servicing debt. Is there any more color you can provide on that?

明白了。在 PEIX 的資產負債表上，我認為在上次電話會議中，您談到了首席重組官，無論是正式的還是非正式的角色，但他們將負責談判償還債務的長期計劃。你能提供更多的顏色嗎？

I'd say, Sameer, outside of what we've indicated in our prepared remarks, just to add to that again, that discussions and negotiations continue productively. And the recent improvements and also the strength of the products that we're making at our profitable plants are contributing and helpful towards those negotiations. So we'll give you more as we can.

我想說，Sameer，除了我們在準備好的發言中指出的內容之外，我想再次補充一點，討論和談判繼續富有成效。最近的改進以及我們在盈利工廠生產的產品的實力正在為這些談判做出貢獻和幫助。所以我們會盡可能地給你更多。

Understood. And just one more housekeeping issue. There is a asset -- a long-term asset held for sale of around $16.5 million. Is that also associated with the sold plant? Or is that something else?

明白了。還有一個家務問題。有一項資產——一項持有待售的長期資產，價值約為 1650 萬美元。這也與出售的植物有關嗎？或者那是別的什麼？

Yes.

是的。

So we should not see that in the next Q statement?

所以我們不應該在下一個 Q 語句中看到這一點？

That's correct.

這是正確的。

Thank you. Speakers, I'm showing no further questions from the queue at this time. I would now like to turn the call back over to you for any further remarks.

謝謝你。發言者們，我目前沒有顯示隊列中的其他問題。我現在想將電話轉回給您，以供任何進一步的評論。

Thank you, Shari, and thank you all for joining us today. I appreciate everybody's support. Hope everybody is staying safe and healthy. We will get through all this together. And we are encouraged by some of our recent developments and look forward to talking to you next quarter. Have a great day.

謝謝你，Shari，謝謝大家今天加入我們。我感謝大家的支持。希望每個人都保持安全和健康。我們將一起度過這一切。我們對我們最近的一些發展感到鼓舞，並期待在下個季度與您交談。祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。