Alto Ingredients Inc (ALTO) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to the Alto Ingredients Fourth Quarter and Year End 2023 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎參加 Alto Ingredients 2023 年第四季和年底財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Kirsten Chapman, LHA Investor Relations, a division of Alliance Advisors. Please go ahead.

我現在想將會議轉交給 Alliance Advisors 旗下 LHA 投資者關係部門的 Kirsten Chapman。請繼續。

Thank you, Gary, and thank you all for joining us today for the Alto Ingredients Fourth Quarter and Year End 2023 Results Conference Call. On the call today are President and CEO, Bryon McGregor; and CFO, Rob Olander.

謝謝加里，也謝謝大家今天參加我們的 Alto Ingredients 2023 年第四季和年底業績電話會議。今天參加電話會議的是總裁兼執行長布萊恩·麥格雷戈 (Bryon McGregor)；財務長羅布‧奧蘭德 (Rob Olander)。

Alto Ingredients issued a press release after the market closed today, providing details of the company's financial results. The company has also prepared a presentation for today's call that is available on the company's website at altoingredients.com. A telephone replay of today's call will be available through March 18, the details which are included in today's press release. A webcast replay will also be available at Alto Ingredients website.

Alto Ingredients 在今天收盤後發布了一份新聞稿，提供了公司財務表現的詳細資訊。該公司還為今天的電話會議準備了演示文稿，可在公司網站 altoingredients.com 上查看。今天的電話會議的電話重播將持續到 3 月 18 日，詳細資訊包含在今天的新聞稿中。 Alto Ingredients 網站也將提供網路廣播重播。

Please note that the information on this call speaks only as of today, March 11. 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 states that some of the comments in this presentation constitute forward-looking statements and considerations that involve risks and uncertainties. The actual future results of Alto Ingredients 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 Alto Ingredients' filings with the SEC. Except as required by applicable law, the company assumes no obligation to update any forward-looking statements.

請注意，本次電話會議中的資訊僅截至今天 3 月 11 日。請注意，時間敏感的資訊在重播時可能不再準確。請參閱線上簡報投影片 2 上該公司的安全港聲明，該聲明指出，本簡報中的一些評論構成涉及風險和不確定性的前瞻性陳述和考慮因素。 Alto Ingredients 未來的實際結果可能與這些聲明有重大差異。可能導致或促成此類差異的因素包括但不限於 Alto Ingredients 先前向 SEC 提交的文件中不時揭露的事件、風險和其他因素。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

In management's prepared remarks, non-GAAP measures will be referenced. Management uses these non-GAAP measures to monitor the final performance of operations and believes these measures will assist investors in assessing the company's performance for the periods reported. The company defines adjusted EBITDA as unaudited consolidated net income or loss before interest expense, interest income, provision for income taxes, asset impairments, loss on extinguishment of debt, unrealized derivative gains and losses, acquisition-related expenses and depreciation and amortization. To support the company's review of non-GAAP information, a reconciling table was included in today's press release.

在管理階層準備好的評論中，將引用非公認會計原則措施。管理層使用這些非公認會計準則衡量標準來監控最終的營運業績，並相信這些衡量標準將有助於投資者評估公司在報告期間的業績。該公司將調整後的EBITDA 定義為扣除利息費用、利息收入、所得稅撥備、資產減損、債務清償損失、未實現衍生性商品損益、收購相關費用以及折舊和攤銷前未經審計的綜合淨收入或損失。為了支持公司對非公認會計準則資訊的審查，今天的新聞稿中包含了一個調節表。

On today's call, Bryon will provide a review of our strategic plan and activities. Rob will comment on our financial results, then Bryon will wrap up and open the call for Q&A. It is now my pleasure to introduce Bryon McGregor. Please go ahead, Bryon.

在今天的電話會議上，布萊恩將回顧我們的策略計畫和活動。羅布將評論我們的財務業績，然後布萊恩將結束並開始問答環節。現在我很高興向大家介紹布萊恩·麥格雷戈。請繼續，布萊恩。

Thank you, Kirsten. Thank you, everyone, for joining us today. During 2023, we continued our transformation to produce a variety of essential ingredients and the highest-grade beverage alcohol in the industry. We made significant investments in our facilities to improve our capacity utilization rates and expand margins long term. These strategies are beginning to mitigate the impact of negative commodity price fluctuations. Although ethanol crush margins exhibited greater volatility in the second half of the year, both our fourth quarter and full year 2023 results significantly outperformed those same periods in 2022. We generated $16 million in gross profit for 2023, an improvement of $43 million over 2022. We also reported positive adjusted EBITDA of approximately $21 million for 2023, an improvement of $27 million over the prior year.

謝謝你，克爾斯滕。謝謝大家今天加入我們。 2023年，我們持續轉型，生產多種必需原料和業界最高等級的飲料酒精。我們對設施進行了大量投資，以提高產能利用率並擴大長期利潤。這些策略開始減輕大宗商品價格負面波動的影響。儘管乙醇壓榨利潤在下半年表現出更大的波動，但我們的2023 年第四季和全年業績均顯著優於2022 年同期。我們2023 年的毛利為1,600 萬美元，比2022 年增加了4,300 萬美元。我們還報告稱，2023 年調整後的正 EBITDA 約為 2,100 萬美元，比前一年增加了 2,700 萬美元。

In Q4 2023, we continue to evaluate our strategic initiatives based on current market dynamics, recent findings from our updated front-end engineering and design or feed studies, interest from potential strategic partners and project return profiles, our carbon capture and storage, or CCS project is our top priority. Under Section 45Q of the Inflation Reduction Act, we have a unique and compelling opportunity to capture and store the biogenic CO2 we generated in our Pekin campus, coupled with associated energy upgrades, our CCS project provides exciting economics. Given this significant amount of time, personnel and financial resources necessary to complete our CCS project, we have decided to pause further development of our primary yeast and biogas conversion projects. These continue to be opportunities for potential future development as resources permit.

2023 年第四季度，我們將繼續根據當前市場動態、更新的前端工程和設計或飼料研究的最新發現、潛在戰略合作夥伴的興趣和項目回報概況、我們的碳捕獲和封存或CCS 來評估我們的策略性舉措項目是我們的首要任務。根據《通貨膨脹減少法案》第45Q 條，我們有一個獨特且引人注目的機會來捕獲和儲存我們在北京園區產生的生物二氧化碳，再加上相關的能源升級，我們的CCS 項目提供了令人興奮的經濟效益。鑑於完成我們的 CCS 專案所需的大量時間、人員和財政資源，我們決定暫停初級酵母和沼氣轉化專案的進一步開發。在資源允許的情況下，這些仍然是未來潛在發展的機會。

We are encouraged by recent progress on many aspects of CCS. These include overall system design, community outreach, financing, vendor negotiations, EPA application preparation and schedule alignment requirements to procure equipment and install power and compression. In fact, today, we announced that we have signed an exclusive nonbinding letter of intent with Vault, and we are nearing the execution of definitive agreements to develop our CCS project.

最近 CCS 在許多方面取得的進展讓我們感到鼓舞。其中包括整體系統設計、社區外展、融資、供應商談判、EPA 申請準備以及採購設備和安裝電力和壓縮的進度調整要求。事實上，今天，我們宣布已與 Vault 簽署了一份獨家的、不具約束力的意向書，我們即將簽署開發 CCS 專案的最終協議。

The project involves Alto installing equipment to capture the CO2 generated at our Pekin facilities and Vault safely transporting and permanently storing the emissions deep underground in a secure geologic reservoir located in close proximity to our campus. The intent is to substantially reduce CO2 emissions from the ethanol production process and provide direct value to the surrounding communities.

該項目涉及 Alto 安裝設備來捕獲我們北京工廠和 Vault 產生的二氧化碳，並將排放物安全地運輸到地下深處並永久儲存在位於我們園區附近的安全地質水庫中。目的是大幅減少乙醇生產過程中的二氧化碳排放，並為周圍社區提供直接價值。

In addition to CCS, we are pursuing 2 attractive options to increase energy capacity at our Pekin campus, with either our current utility provider or a highly regarded independent energy company that would build, own and operate on-site energy facilities. Both options would greatly reduce our capital requirements and long-term energy costs while lowering our carbon footprint. These capital light energy options may result in our CCS project being more accretive than originally estimated.

除了CCS之外，我們還在尋求兩個有吸引力的選擇來增加我們北京園區的能源容量，要么與我們當前的公用事業提供商合作，要么與一家備受推崇的獨立能源公司合作，後者將建造、擁有和營運現場能源設施。這兩種選擇都將大大降低我們的資本需求和長期能源成本，同時降低我們的碳足跡。這些資本輕能源選項可能會導致我們的 CCS 專案比最初估計的更具增值性。

Beyond our control, the EPA has extended its CCS application approval process from 18 to 24 months, and the equipment manufacturing and installation times have grown longer than originally anticipated. Accordingly, we intend to make positive use of this additional time to better align our various project schedules and reduce our overall financial risk.

在我們的控制之外，EPA 將其 CCS 申請審批流程從 18 個月延長至 24 個月，設備製造和安裝時間也比最初預期的更長。因此，我們打算積極利用這額外的時間來更好地協調我們的各個專案時間表並降低我們的整體財務風險。

Finally, as we evaluate our path to increase margins, improve profitability, and deliver the highest return to our shareholders, we continue to assess our current portfolio of assets, especially in our Western facilities. We intend to leverage the distinctive strengths and opportunities at these locations by investing in new equipment and applications. While doing so, we may also consider the possible disposition of one or both of these facilities. As we have effectively demonstrated over the past 3 years with the sale of our California and Nebraska facilities, we remain steadfast in our commitment to make value-enhanced decisions as appropriate to optimize long-term stakeholder value.

最後，當我們評估提高利潤率、提高獲利能力並為股東提供最高回報的道路時，我們將繼續評估我們目前的資產組合，特別是在我們的西方設施中。我們打算透過投資新設備和應用來利用這些地點的獨特優勢和機會。在此過程中，我們也可能考慮處置其中一個或兩個設施的可能性。正如我們在過去三年中出售加州和內布拉斯加州工廠所有效證明的那樣，我們仍然堅定不移地致力於酌情做出增值決策，以優化長期利益相關者的價值。

Over the past 2 years, we have completed numerous upgrades. I'll review some of our larger initiatives that are in progress or that we completed over the past 12 months. In February 2024, we completed the installation of a new high-efficiency boiler at our Pekin campus. We expect to reach full utilization by the end of Q1. This boiler replaces 2 inefficient high-pressure boilers, and will significantly reduce our energy needs and operating costs. We estimate this will increase our annualized incremental EBITDA by $2 million.

在過去的兩年裡，我們完成了許多升級。我將回顧一些正在進行或在過去 12 個月內完成的大型舉措。 2024 年 2 月，我們在北京園區完成了新高效能鍋爐的安裝。我們預計到第一季末將達到充分利用。該鍋爐取代了 2 台效率低的高壓鍋爐，將顯著降低我們的能源需求和營運成本。我們估計這將使我們的年化 EBITDA 增量增加 200 萬美元。

Additionally, in the second quarter of 2023, Pekin's new grain silo became fully operational, doubling our days of corn storage capacity. We achieved our goal of increasing flexibility and lowering costs related to a quick or last-minute shipments and to reduce corn premiums during extended weekends and harsh weather conditions. This project has already exceeded our target of delivering annualized incremental EBITDA of $2 million.

此外，2023 年第二季度，北京的新糧倉全面投入運營，使我們的玉米儲存天數增加了一倍。我們實現了提高靈活性、降低與快速或最後一刻發貨相關的成本以及降低長週末和惡劣天氣條件下玉米溢價的目標。該專案已經超越了我們實現 200 萬美元年化 EBITDA 增量的目標。

We continue to expand into higher-quality alcohol and our ability to differentiate our offerings has been very important considering market trends. In 2021 and for part of 2022, the higher margin for specialty alcohol attracted many new producers, increasing product availability and supply. This combined with having consumer demand growth and fluctuations in supply chain dynamics has resulted in margin compression over the past 18 months.

我們繼續向更高品質的酒精領域擴張，考慮到市場趨勢，我們的產品差異化能力非常重要。 2021 年和 2022 年部分時間，特種酒精較高的利潤吸引了許多新生產商，增加了產品的可用性和供應。再加上消費者需求成長和供應鏈動態波動，導致過去 18 個月利潤率壓縮。

In anticipation of these changing market conditions in 2022, we began strategic investments to produce more beverage grade alcohols that leverage the unique capabilities of our Pekin campus. We developed our highly differentiated 192 proof at a low moisture 200 proof grain neutral spirits, which became available in early 2023. These new products were well received by our customers and actively sold in the spot market, generating significant sales and bolstering our gross margin for the year.

考慮到 2022 年市場狀況的變化，我們開始進行策略性投資，利用北京園區的獨特能力生產更多飲料級酒精。我們開發了高度差異化的192 度低水分200 度穀物中性烈酒，並於2023 年初上市。這些新產品受到了客戶的好評，並在現貨市場上積極銷售，產生了可觀的銷售額並提高了我們的毛利率那年。

To date, for 2024, we have contracted approximately 93 million gallons of fixed price, high-quality alcohol and average price premium to renewable fuel of $0.31 per gallon, with additional capacity to take advantage of spot sales.

迄今為止，到 2024 年，我們已簽訂約 9300 萬加侖固定價格優質酒精的合同，與可再生燃料相比，平均溢價為每加侖 0.31 美元，並具有利用現貨銷售的額外能力。

In our pursuit to expand higher-margin corn oil and high-protein products at our Magic Valley plant, working with our high-protein system vendor, harvest technology, we engaged the equipment manufacturers and independent third-party engineers in Q4 to conduct an in-depth analysis of our challenges. They formulated a plan, including the extensive design modifications to achieve the intended production rate, quality and consistency.

為了在我們的魔谷工廠擴大利潤更高的玉米油和高蛋白產品，我們與我們的高蛋白系統供應商、收穫技術公司合作，在第四季度與設備製造商和獨立第三方工程師合作，進行了一項深入分析我們面臨的挑戰。他們制定了一項計劃，包括廣泛的設計修改，以實現預期的生產力、品質和一致性。

We decided mid-January to temporarily hot idle the facility to minimize the losses related to negative regional crush margins and expedite the installation of the additional equipment. Harvesting Technology is more than the direct costs associated with their design and equipment. We intend to restart production in Q2 once the upgrades are complete, and crush margins have improved. The operation of the upgraded high-protein system at the Magic Valley facility will influence our decision and timing to roll out the system at our other dry mills.

我們決定在一月中旬暫時熱閒置該設施，以盡量減少與負區域壓榨利潤相關的損失，並加快額外設備的安裝。收穫技術不僅僅是與其設計和設備相關的直接成本。一旦升級完成並且壓榨利潤率有所改善，我們打算在第二季重新開始生產。魔谷工廠升級後的高蛋白系統的運作將影響我們在其他乾磨廠推出系統的決定和時間表。

In the interim, we are operating the Magic Valley facility as a terminal to service our renewable fuel customers. We're also working with the local feed distributor and feed customers to meet supply requirements.

在此期間，我們將魔谷設施作為終點站運營，為我們的再生燃料客戶提供服務。我們還與當地飼料經銷商和飼料客戶合作，以滿足供應要求。

Before I turn the call over to Rob, I'll review our sustainability efforts. As a renewable company, we are dedicated to implementing sustainable best practices that are good for our business, our stakeholders and our planet. In December, we published our first sustainability summary. It reviews our strategy and vision for advancements in sustainability, responsible sourcing and risk management. We are focused on continuous improvements in environmental, health and safety, product quality and diversification by integrating innovative practices at our facilities to ensure optimal efficiency contribute to a lower carbon footprint. We are also focusing on giving back to the community through food drives and supporting charitable organizations.

在將電話轉給 Rob 之前，我將回顧我們在永續發展方面所做的努力。作為一家再生能源公司，我們致力於實施有利於我們的業務、利害關係人和地球的可持續最佳實踐。 12 月，我們發布了第一份永續發展摘要。它回顧了我們在永續發展、負責任的採購和風險管理方面取得進步的策略和願景。我們致力於透過在我們的工廠整合創新實踐來持續改進環境、健康和安全、產品品質和多樣化，以確保最佳效率，從而降低碳足跡。我們也致力於透過食物活動和支持慈善組織回饋社區。

Our efforts improved our sustainability scores across the board with all 3 rating agencies, which is important to our customers. Looking ahead, we are working to obtain third-party greenhouse gas verifications, improved transportation safety and earning additional EcoVadis awards.

我們的努力提高了所有 3 個評級機構的可持續發展得分，這對我們的客戶很重要。展望未來，我們正在努力獲得第三方溫室氣體驗證、提高運輸安全並獲得額外的 EcoVadis 獎項。

Now I'll turn the call to our CFO, Rob Olander.

現在我將把電話轉給我們的財務長 Rob Olander。

Thanks, Bryon. I'll review the financial results for the fourth quarter and full year of 2023 in greater detail. We enjoyed stronger gross margins and our efficiency initiatives contributed to improved bottom line results for the fourth quarter and full year 2023, despite volatile commodity price fluctuations and lower plant utilization rates.

謝謝，布萊恩。我將更詳細地回顧 2023 年第四季和全年的財務表現。儘管大宗商品價格波動劇烈且工廠利用率較低，但我們的毛利率更高，我們的效率舉措有助於提高第四季度和 2023 年全年的利潤。

Looking back over 2023, in Q2 and Q3, renewable fuel margins were strong. So we shifted a portion of our production back to renewable fuel to take advantage of the higher margins. As Bryon noted, ethanol crush margins exhibited extreme volatility in the second half 2023, peaking in the mid-60s in September and dropping to slightly negative in December. These fluctuations impacted the gallons we were willing to sell, the price at which we did sell and the volume of third-party sales with contracting.

回顧 2023 年第二季和第三季度，再生燃料利潤率強勁。因此，我們將部分生產轉回再生燃料，以利用更高的利潤。正如 Bryon 指出的那樣，乙醇壓榨利潤在 2023 年下半年表現出極大的波動，在 9 月達到 60 年代中期的峰值，並在 12 月降至小幅負值。這些波動影響了我們願意銷售的加侖數、銷售價格以及合約第三方銷售量。

In 2023, we sold 382 million gallons compared to 419 million gallons in 2022, primarily reflecting the aforementioned weaker crush margins in Q4 2023, the item of our Magic Valley facility in Q1 2023 and the opportunity costs associated with navigating the challenges with the Magic Valley installation. Net sales were $274 million in Q4 2023 and $1.2 billion for the full year compared to $328 million and $1.3 billion for the same periods in 2022.

2023 年，我們銷售了3.82 億加侖，而2022 年為4.19 億加侖，主要反映了上述2023 年第四季度壓榨利潤的疲軟、2023 年第一季度我們魔穀工廠的項目以及與應對魔谷挑戰相關的機會成本安裝。 2023 年第四季淨銷售額為 2.74 億美元，全年淨銷售額為 12 億美元，而 2022 年同期淨銷售額為 3.28 億美元，全年淨銷售額為 13 億美元。

In Q4 2023, we reported a gross loss of $3 million, improving $19 million compared to Q4 2022. For the full year of 2023, we generated gross profit of $16 million, increasing $43 million compared to 2022. During Q4, repairs and maintenance expense was $7.7 million compared to $7.1 million for Q4 2022. This brought 2023 total repairs and maintenance to $29.5 million compared to $30 million for 2022. Our wet mill use facility and distillery capabilities at our Pekin campus provides significant differentiation and greater production capabilities than the typical driving.

2023 年第四季，我們的毛虧損為300 萬美元，比2022 年第四季減少1,900 萬美元。2023 年全年，我們的毛利為1,600 萬美元，比2022 年增加4,300 萬美元。第四季度期間，維修和維護費用成本為770 萬美元，而2022 年第四季為710 萬美元。這使得2023 年的維修和維護總額達到2,950 萬美元，而2022 年為3,000 萬美元。我們北京園區的濕磨機使用設施和釀酒廠能力與典型的工廠相比具有顯著的差異化和更大的生產能力駕駛。

That said, the nature and age of these facilities require consistent ongoing repairs and maintenance and capital upgrades integral to the longevity, sustainable performance and modernization of our assets. To maintain reliable and efficient operations, we normally address smaller concerns as needed and conduct larger scheduled outages approximately every 2 years. As noted on our last call, we originally scheduled our large Pekin campus wet mill outage for August 2023. However, favorable crush margins and sufficient corn supply motivated us to postpone the downtime until April 2024.

也就是說，這些設施的性質和年齡需要持續不斷的維修和保養以及資本升級，這對於我們資產的使用壽命、永續性和現代化至關重要。為了保持可靠和高效的運營，我們通常會根據需要解決較小的問題，並大約每兩年進行一次較大的計劃停機。正如我們在上次電話會議中所指出的，我們最初計劃於2023 年8 月停止北京園區的大型濕磨機。然而，有利的壓榨利潤和充足的玉米供應促使我們將停機時間推遲到2024 年4月。

With slightly negative crush margins heading into year-end and continuing thus far in Q1 2024, in Q4, we recognized a $2.2 million lower of cost or market charge on our indeed renewable fuel inventories and related fixed foreign purchase commitments. This compares to a gain of $700,000 for Q4 2022. During Q4, we recorded an asset impairment charge of $6 million to the goodwill associated with our acquisition of Eagle Alcohol in 2022. This charge reflects revisions to current market premiums and adjustments to projections in our required annual goodwill valuation.

由於壓榨利潤率在年底前略有負值，並在 2024 年第一季持續至今，因此在第四季度，我們的再生燃料庫存和相關固定外國採購承諾的成本或市場費用減少了 220 萬美元。相比之下，2022 年第四季的收益為70 萬美元。第四季度，我們記錄了600 萬美元的資產減損費用，計入與2022 年收購Eagle Alba 相關的商譽。該費用反映了對當前市場溢價的修訂以及對我們預測的調整。需要進行年度商譽評估。

Incorporating additional synergies, we intend to leverage Eagle Alcohol's transportation expertise across our entire platform replacing a portion of our third-party trucking services, reducing our logistical costs and improving margins. We are also in the process of expanding our distribution territory into new geographies such as Southern California.

結合額外的協同效應，我們打算在整個平台上利用鷹酒精的運輸專業知識，取代我們的部分第三方卡車運輸服務，從而降低我們的物流成本並提高利潤率。我們也正在將我們的分銷區域擴展到新的地區，例如南加州。

For Q4 of 2023, adjusted EBITDA was positive $3 million, improving $19 million compared to Q4 2022. For the full year 2023, adjusted EBITDA was positive $21 million, up $27 million compared to 2022. This is a significant year-over-year improvement particularly considering that in 2022, the company received $20 million more in USDA cash grants. As of December 31, 2023, our cash balance was $30 million and our total loan borrowing availability was $98 million to support our business operations and capital investment initiatives. Our borrowing availability includes $33 million under our operating line of credit and $65 million, subject to certain conditions under our term loan facility. We appreciate the confidence and continued support from our lenders.

2023 年第四季，調整後EBITDA 為正300 萬美元，比2022 年第四季增加1900 萬美元。2023 年全年，調整後EBITDA 為正2100 萬美元，比2022 年增加2700 萬美元。這是年比顯著改善特別是考慮到 2022 年，該公司將獲得美國農業部 2,000 萬美元的現金補助。截至 2023 年 12 月 31 日，我們的現金餘額為 3,000 萬美元，可用貸款總額為 9,800 萬美元，以支持我們的業務營運和資本投資計畫。我們的借款包括營運信貸額度下的 3,300 萬美元和定期貸款安排下的 6,500 萬美元，但須遵守某些條件。我們感謝貸方的信心和持續支持。

Cash flow from operations was $12 million for Q4, bringing the annual total up to $22 million. In Q4, we repurchased 436,000 shares of common stock to $1 million, bringing our total planned repurchases to $5 million since the plan's inception. We invested $5 million on CapEx for Q4, bringing the year-end total to $30 million compared to $13 million and $38 million for the same period in 2022.

第四季營運現金流為 1,200 萬美元，全年總額達 2,200 萬美元。第四季度，我們以 100 萬美元的價格回購了 436,000 股普通股，使自計劃啟動以來計劃回購總額達到 500 萬美元。我們在第四季的資本支出上投資了 500 萬美元，使年末總額達到 3,000 萬美元，而 2022 年同期為 1,300 萬美元和 3,800 萬美元。

We are committed to continual improvement in our reporting as well as our performance. First, to increase transparency to our operating physical margins and conform reporting to how management is evaluating Alto's performance, we will exclude the impact of unrealized noncash derivative gains and losses when calculating adjusted EBITDA. Unrealized derivative gains and losses are noncash mark-to-market adjustments of derivative instruments on open positions related to future period purchases and sales that are recorded as part of cost of goods sold. Updated historical reconciliations have been added to our website.

我們致力於不斷改進我們的報告和績效。首先，為了提高我們經營實際利潤的透明度並使報告符合管理層評估 Alto 業績的方式，我們在計算調整後 EBITDA 時將排除未實現的非現金衍生性商品損益的影響。未實現的衍生性工具收益和損失是與未來期間採購和銷售相關的未平倉頭寸的衍生工具的非現金按市價調整，記錄為銷售成本的一部分。更新的歷史調節表已新增至我們的網站。

Next, we have updated the quarterly metrics as seen in today's press release and in the Interactive Financial Data section of our website. The new metrics included unaudited segmented data for sales, production and corn [flakes]. Going forward, we will consider both additional metrics and the frequency of providing that.

接下來，我們更新了季度指標，如今天的新聞稿和我們網站的互動式財務數據部分所示。新指標包括未經審計的銷售、生產和玉米片的細分數據。展望未來，我們將考慮其他指標以及提供這些指標的頻率。

Finally, as we discuss our capital projects individually, not in aggregate, we will place them into 3 categories. First, in operation includes completed projects. Second, under development includes high priority strategic opportunities that have the greatest expected return as well as initiatives that support our near-term operational goals. And third, for future evaluation includes potential opportunities with attractive returns to be assessed as resources permit.

最後，當我們單獨而不是總體地討論我們的資本項目時，我們將它們分為三類。首先，營運中包括已完成的項目。其次，正在開發的項目包括具有最大預期回報的高優先級策略機會以及支持我們近期營運目標的舉措。第三，未來的評估包括在資源允許的情況下評估具有有吸引力回報的潛在機會。

Now looking at 2024. The crush margin trends per typical seasonality are beginning to improve over the end of 2023. Further, margins are approximately $0.20 better for January and February of this year compared to the same time last year. This said, in January, the [Vault] in the Midwest negatively impacted both operations and logistics at our Pekin campus. Despite significant preparations ahead of the freeze and timely recovery response efforts, we experienced a shift to lower-margin feed products and reduced alcohol production by approximately 1 million gallons as a result of frozen river conditions. As Bryon discussed, due to our hot idle, the Magic Valley facility, Alto's total ethanol production for Q1 will be lower, but third-party gallons sold should be higher in comparison to Q4.

現在展望 2024 年。到 2023 年底，每個典型季節的壓榨利潤趨勢開始改善。此外，與去年同期相比，今年 1 月和 2 月的利潤大約提高了 0.20 美元。也就是說，一月份，中西部的[避難所]對我們北京校區的營運和物流產生了負面影響。儘管在冰凍之前做了大量準備工作並做出了及時的恢復響應工作，但由於河流結冰，我們還是轉向了利潤較低的飼料產品，並減少了約 100 萬加侖的酒精產量。正如布萊恩所討論的，由於我們的魔谷工廠熱閒置，阿爾托第一季的乙醇總產量將較低，但與第四季度相比，銷售的第三方加侖數應該更高。

We have confidence in the extensive design modifications underway and achieving our corn well and high protein targets in 2024. It is also important to note that our biannual wet mill repairs and maintenance outage is scheduled for April. We expect it to take approximately 10 days, which will lower Pekin campus production in Q2 and cost of approximately $4 million. For the full year 2024, we expect to track to our typical repairs and maintenance run rate of approximately $30 million, bringing the total, including the biannual outage expense to $34 million.

我們對正在進行的廣泛設計修改以及在 2024 年實現我們的玉米產量和高蛋白目標充滿信心。還需要注意的是，我們每兩年一次的濕磨機維修和維護停運計劃於 4 月進行。我們預計需要大約 10 天的時間，這將導致第二季北京園區的產量和成本降低約 400 萬美元。在 2024 年全年，我們預計典型的維修和維護運行費用約為 3000 萬美元，使包括一年兩次的停機費用在內的總費用達到 3400 萬美元。

Regarding CapEx, we plan to invest approximately $25 million on equipment upgrades, process improvements and projects as short-term paybacks. These ongoing maintenance efforts and capital improvements position Alto for a much stronger future. The biannual outages historically increased reliability and production run rates. We expect these positive effects will benefit 2024, in particular as we head into more robust summer months.

關於資本支出，我們計劃投資約 2,500 萬美元用於設備升級、流程改善和專案作為短期回報。這些持續的維護工作和資本改善使 Alto 擁有更美好的未來。從歷史上看，每年兩次的停電提高了可靠性和生產運行率。我們預計這些正面影響將使 2024 年受益，特別是在我們即將進入更強勁的夏季之際。

With that, I'll turn the call back to Bryon.

說完，我會把電話轉回給布萊恩。

Thank you, Rob. Currently, the overall outlook for 2024 is favorable. We have good corn inventories, low natural gas and corn prices, higher sugar prices, domestic regulatory support for summer blending and expected demand growth for U.S. ethanol -- U.S. ethanol globally. These factors should create an environment that results in crush margin improvements over the next few months and produce positive spreads through the most -- through the most of the year. Although markets are dynamic, we remain agile and financially prudent and seek to capitalize on the most promising and profitable opportunities. We are enthusiastic about our prospects and confident in our long-term growth strategy.

謝謝你，羅布。目前，2024年的整體前景是樂觀的。我們擁有良好的玉米庫存、較低的天然氣和玉米價格、較高的糖價、國內對夏季混合的監管支持以及美國乙醇的預期需求增長——全球美國乙醇。這些因素應該會創造一個環境，​​使未來幾個月的壓榨利潤率有所改善，並在一年中的大部分時間產生正利差。儘管市場瞬息萬變，我們仍保持敏捷和財務審慎，並尋求利用最有前途和最有利可圖的機會。我們對我們的前景充滿熱情，並對我們的長期成長策略充滿信心。

Before I open the call to questions, please note that we will be at the Annual ROTH Conference next week, and I hope to see you there. Operator, we're ready to begin.

在開始提問之前，請注意，我們將於下週參加羅斯年度會議，我希望在那裡見到您。接線員，我們準備開始了。

(Operator Instructions) Our first question today is from Amit Dayal with H.C. Wainwright.

（操作員說明）今天我們的第一個問題來自 Amit Dayal 和 H.C.溫賴特。

Bryon, just to begin with Magic Valley, the issues with respect to corn oil and high protein, et cetera, are these just -- are you looking to just improve the yields? Or are there any other challenges that you're looking to overcome at Magic Valley?

布萊恩，先從魔谷開始，關於玉米油和高蛋白等的問題，這些只是──你只是想提高產量嗎？或者您在魔谷還想克服其他挑戰嗎？

Amit, the challenge that we faced at -- that we have faced at Magic Valley is not surprising given that this wasn't a bolt-on system. So as we brought in the additional equipment and materials, we found it difficult at times to be able to produce consistent product at maximum capacity and qualities. So as we evaluated that, we determined that we needed to actually make some improvements and enhancements to be able to expand the overall capacity of the equipment to be able to work better within the tolerances of the system. These are dynamic systems and need to be able to have flexibility to be able to move beyond some certain capacities in order to produce the products that we need to produce.

阿米特，我們在魔穀所面臨的挑戰並不奇怪，因為這不是附加系統。因此，當我們引進額外的設備和材料時，我們發現有時很難以最大產能和品質生產一致的產品。因此，當我們進行評估時，我們確定我們實際上需要進行一些改進和增強，以便能夠擴展設備的整體容量，從而能夠在系統的容差範圍內更好地工作。這些是動態系統，需要能夠具有靈活性，能夠超越某些特定能力，以便生產我們需要生產的產品。

So as we looked at what we needed to do and then taking advantage of those -- of the -- what were weak margins, particularly in the Idaho region, we decided that it would be best actually in -- I would say, the company (inaudible) highlighting the facility and expediting the repair of -- or the upgrades of the system and to be able to then bring it back up online in Q2 and be able to produce a much more sustainable and higher-quality product.

因此，當我們考慮我們需要做什麼，然後利用那些利潤微薄的地方，特別是在愛達荷州地區時，我們決定最好實際上是在——我想說的是，公司（聽不清楚）強調該設施並加快系統的修復或升級，以便能夠在第二季將其恢復上線，並能夠生產更具永續性和更高品質的產品。

With respect to your view on sort of crush margins going forward, it looks like 1Q '24 is still going to be a little bit challenging, but it looks like just from your commentary, you are more optimistic about the rest of the year. Just trying to see what is driving that sentiment?

就您對未來壓榨利潤率的看法而言，24 年第一季似乎仍然有點挑戰，但僅從您的評論來看，您對今年剩餘時間更加樂觀。只是想看看是什麼推動了這種情緒？

And as I think I mentioned that there's a number of macro factors that really contribute to that, not only what we would expect to be a growing U.S. or U.S. export market given other products with which we compete internationally, the ethanol value and price is compelling. So we've seen a lot more demand and questions and request for information and capacity along those lines. We're also seeing good carryout into 2024 with corn supply. We've seen strong sugar prices, which bode well for exports as well, even on to Brazil. Those are just a couple of factors, but we would expect lower corn prices, all of these things contributing to what should be -- and low natural gas prices contributing to what should be a good production year and good pricing year.

正如我所提到的，有許多宏觀因素真正促成了這一點，不僅是我們預期美國或美國出口市場不斷增長，考慮到我們在國際上競爭的其他產品，乙醇的價值和價格也很引人注目。因此，我們看到了更多的需求、問題以及對這些資訊和能力的要求。我們也看到 2024 年玉米供應情況良好。我們看到食糖價格堅挺，對出口（甚至是巴西）來說也是個好兆頭。這些只是幾個因素，但我們預計玉米價格會下降，所有這些因素都有助於實現應有的目標，而天然氣價格較低則有助於實現良好的生產年份和良好的定價年份。

Amit, I'll just -- I'll add to that. Q1 to date has been breakeven, slightly negative, turning positive, improving just recently. But we are starting the year off about $0.20 per gallon higher crush margins for January and February than we did this time last year. So that's reassuring as well.

阿米特，我會補充一點。第一季迄今已達到損益平衡，略有負值，後來轉為正值，最近才有所改善。但今年一月和二月的壓榨利潤比去年同期高出每加侖約 0.20 美元。所以這也讓人放心。

And then maybe the last thing I'd add is, again, having contracted the amount of volume that we -- that we were able to do this year in fixed price volume should also help support that thesis.

然後，也許我要補充的最後一件事是，我們今年能夠以固定價格成交量縮小成交量，這也應該有助於支持這個論點。

Got it. Just last one for me with respect to CCS, like what's the next milestone that we should be looking forward to? I mean, is this playing in the background a little bit for now? Was there any significant investments required? Or obviously, revenues at all are probably a little bit away. But any big milestone that may come into play for moving this project forward?

知道了。這是我關於 CCS 的最後一個問題，例如我們應該期待的下一個里程碑是什麼？我的意思是，現在這個在後台播放嗎？是否需要任何重大投資？或者顯然，收入可能還有些遙遠。但有什麼重大里程碑可能會推動這個專案向前發展嗎？

Probably the ones I would identify would be definitive agreements with Vault as one, and then the other one would be -- probably the next one would be the filing of the Class VI permit. Those would be fairly major milestones.

我認為其中一項可能是與 Vault 達成的最終協議，然後是另一項——可能下一項是提交 VI 級許可證。這些將是相當重要的里程碑。

The next question is from Eric Stine with Craig-Hallum.

下一個問題是艾瑞克·史坦和克雷格·哈勒姆提出的。

I can understand prioritizing carbon capture a good first step here that you just announced. But maybe just as you kind of make the transition to the way you'll start talking about these capital projects and how you prioritize them. Can we just talk about maybe how you have been talking about it versus now just to kind of level set where things stand? If I do the math, I think you talked about $65 million plus of incremental EBITDA by mid-'26. And it seems like that number is maybe now more like 15 to 20 and you actually have brought on most of that already through the storage and the specialty alcohol piece. I guess maybe first, I'd like to confirm that.

我可以理解，您剛剛宣布的優先考慮碳捕獲是良好的第一步。但也許就在您轉變方式時，您將開始談論這些資本項目以及如何確定它們的優先順序。我們可以談談你之前是如何談論它的，而不是現在只是為了確定事情的現狀嗎？如果我算一下，我認為您談到的 EBITDA 增量到 26 年中期將達到 6500 萬美元以上。看起來這個數字現在可能更像是 15 到 20 個，實際上你已經透過儲存和特殊酒精塊帶來了其中的大部分。我想也許首先，我想確認一下。

So I think that's fair, Eric. I think -- yes, that's close enough map. I think what we would -- what I would indicate, though, is in the level setting department -- when we started providing this information 1.5 years ago, 2 years ago, it was in response to requests from investors to understand what the future could look like, right? And we wanted to also provide an indication to investors and to shareholders that we had many not only interesting opportunities and growth -- in growth and in profitability but as well that there were some very unique projects in there as well. And we try to provide a profile as far as over time what that would look like if we were able to bring those to bear. But there was still a lot of work to still be done with regards to feed studies, getting into the details and making sure that you have the means to be able to do so.

所以我認為這是公平的，艾瑞克。我想——是的，那張地圖夠接近了。我認為我們會——但我要指出的是，在水平設定部門——當我們在 1.5 年前、2 年前開始提供這些資訊時，是為了響應投資者的要求，了解未來會發生什麼看起來像吧？我們也想向投資者和股東表明，我們不僅在成長和獲利方面擁有許多有趣的機會和成長，而且還有一些非常獨特的項目。我們試圖提供一個概況，隨著時間的推移，如果我們能夠將這些付諸實踐，情況會是什麼樣子。但在飼料研究方面，仍有大量工作要做，深入細節並確保您有能力做到這一點。

So as we work through those number of projects, there are clearly those projects that have risen to the top. There are others that have come in a lot more expensive than what we thought they would. They're still very compelling and very unique to our company. But given the resources that we have that we needed to give priority to certain projects over others. And then as resources and opportunities change that will -- we can bring those on as well going forward.

因此，當我們處理這些數量的項目時，顯然有些項目已經上升到了頂峰。還有其他一些產品的價格比我們想像的要貴得多。它們對於我們公司來說仍然非常引人注目且非常獨特。但鑑於我們擁有的資源，我們需要優先考慮某些項目而不是其他項目。然後，隨著資源和機會的變化，我們也可以繼續推動這些變化。

Yes. No, totally understand. I mean the capital environment has changed somewhat since those came out, I guess that's an understatement. Maybe then just a follow-up on the previous carbon capture question. So in your deck, you're talking about -- and you've been talking about this for some time, but I just want to confirm. When you're targeting annual adjusted EBITDA, I mean that would be your portion, right, where you would be splitting some with your partner, in this case, it would be Vault. I guess I'd like to confirm that first?

是的。不，完全明白。我的意思是，自從這些政策出台以來，資本環境已經發生了一些變化，我想這是一個輕描淡寫的說法。也許這只是之前碳捕獲問題的後續。所以在你的套牌中，你正在談論——並且你已經談論這個有一段時間了，但我只是想確認一下。當你的目標是年度調整後 EBITDA 時，我的意思是這將是你的部分，對吧，你將與你的合作夥伴分攤一些，在這種情況下，這將是 Vault。我想我想先確認一下？

That's correct. Yes, that would be 2 Alto. And the arrangement with the Vault would be -- there'd be certain services and fees that would be paid for this. For the pipeline, for the transportation and sequestration of that product.

這是正確的。是的，那就是 2 Alto。與金庫的安排是－為此支付某些服務和費用。用於管道，用於該產品的運輸和封存。

And then this is a number that I would -- I mean, should we view this as potentially that is a different number if you decide to go the capital light route and lean on others for the -- for some of your energy needs?

然後，這是一個我認為的數字——我的意思是，如果你決定走資本輕路線並依靠其他人來滿足你的一些能源需求，我們是否應該認為這個數字可能是一個不同的數字？

No. Those actually would stand on their own as well. So -- and we would actually, as Rob, I think, mentioned in his prepared remarks, wasn't there is actually potential or in my comments as well, that there's actually a potential to see a material increase over that number.

不，這些實際上也可以獨立存在。因此，我認為，實際上，正如羅佈在他準備好的發言中提到的那樣，實際上沒有潛力，或者在我的評論中，實際上有可能看到這個數字的實質增長。

You'll recall that as we broke out in the incremental annualized EBITDA previously, we used to assign a value for natural gas and for cogeneration. While we have provided an indicative number on that amount yet, those -- the economics are still sufficiently compelling to -- and they're very foundational to being able to bring on carbon sequestration and to build a good foundation for operations going forward.

您可能還記得，正如我們之前在增量年化 EBITDA 中爆發的那樣，我們曾經為天然氣和熱電聯產分配了一個價值。雖然我們已經提供了這筆金額的指示性數字，但這些——經濟仍然具有足夠的吸引力——而且它們對於能夠實現碳封存並為未來的營運奠定良好的基礎至關重要。

Maybe last one for me. I don't know if you gave an exact number, but when you did have these goals out there, you did lay out, I mean they were pretty significant capital needs for this. Maybe just without -- I don't want to attribute capital needs to each specific project that doesn't make sense, but I mean maybe an idea of how much your capital needs are haircut now at least near term with you just focusing on carbon capture and in the near-term Magic Valley and getting that on the right track?

也許對我來說是最後一張。我不知道你是否給出了一個確切的數字，但是當你確實有這些目標時，你確實進行了佈局，我的意思是它們是相當重要的資本需求。也許只是沒有 - 我不想將資本需求歸因於沒有意義的每個特定項目，但我的意思是，也許您的資本需求現在至少在短期內會被削減多少，而您只關注碳捕捉並在近期的魔法谷中並使其走上正確的軌道？

Sure. So there may be some incremental spend on Magic Valley, but our intent, again, working with our partners as they -- Eric, that is certainly more in the capital costs associated with any of the changes that we've had to make to date.

當然。因此，Magic Valley 可能會有一些增量支出，但我們的意圖是與我們的合作夥伴合作，因為他們——埃里克，這肯定更多的是與我們迄今為止必須做出的任何改變相關的資本成本。

With regards to -- we would expect those costs to the extent we're successful at Magic Valley and determine how we're going to roll that out to other dry mills. They would be comparable to what we have to do on what we've been able to do on Magic Valley. Each one is going to be slightly different depending on the needs, but that hasn't changed much.

關於——我們預計這些成本取決於我們在 Magic Valley 的成功，並確定我們將如何將其推廣到其他乾磨廠。它們可以與我們在魔幻谷上所做的事情相提並論。根據需要，每一項都會略有不同，但這並沒有太大變化。

With regards to -- if you think about the cost of replacing power and natural gas at the Pekin site, we're talking about well over $100 million. So to be able to actually not have to spend that money and be able to leverage that and generate significant savings is not -- it's nothing to blush at, right? It's something to be very excited about and can make a material difference, not only on a cost savings basis but as well being able to lower overall carbon intensity scores, right? These facilities in Pekin are high energy and high steam demand facilities. So anything we can do to make them much more efficient is significantly beneficial.

如果您考慮北京工廠更換電力和天然氣的成本，我們談論的費用將遠遠超過 1 億美元。因此，能夠實際上不必花這筆錢並能夠利用這些錢並產生大量節省，這並不是什麼值得臉紅的事情，對吧？這是一件令人非常興奮的事情，並且可以產生重大影響，不僅可以節省成本，還可以降低整體碳強度分數，對嗎？北京的這些設施是高能源和高蒸汽需求設施。因此，我們可以採取的任何措施來提高它們的效率都是非常有益的。

(Operator Instructions) The next question comes from Justin Dopierala from DOMO Capital Management.

（操作員指令）下一個問題來自 DOMO Capital Management 的 Justin Dopierala。

I guess a few questions, couple were answered. I was wondering if you could maybe walk us through a little bit better the gross loss, specifically at the Pekin side of $1.1 million. For example, on the financials you provided here, you kind of show a $0.40 -- over a $0.40 crush margin. I think last year, again, based on your financials, it was maybe around $0.03. And in Q2, I think it might have been negative and you guys had a much different operating result. So I was just wondering, maybe even compared to Q2, there -- is there something within that Pekin number. I don't know if the derivative losses are in there, that's playing with that?

我想有幾個問題，有幾個得到了答案。我想知道您是否可以向我們介紹總損失，特別是北京方面的 110 萬美元。例如，在您此處提供的財務數據中，您顯示了 0.40 美元——超過了 0.40 美元的壓榨保證金。我想，根據您的財務狀況，去年的金額可能約為 0.03 美元。在第二季度，我認為這可能是負面的，你們的經營結果有很大不同。所以我只是想知道，甚至可能與第二季相比，北京的數字中是否有一些東西。我不知道衍生性商品損失是否在其中，這是在玩弄嗎？

Yes, Justin, they do include the derivative losses, and that's a large -- most of the derivative is associated with sales and volumes associated with that, particularly if you think about it, all of our fixed sales for specialty alcohol is aligned with that facility as is the significant amount of natural gas obligations and the like that we will also hedge on a normal basis.

是的，賈斯汀，它們確實包括衍生性商品損失，這是一個很大的損失——大多數衍生品都與銷售和與之相關的銷量有關，特別是如果你考慮一下，我們所有特種酒精的固定銷售都與此一致設施以及大量天然氣債務等，我們也將在正常基礎上對沖。

So I mean, I think that number was over $8 million. So if we take that into account, then the Pekin is more of a $7 million gain backing out, for example, those derivative losses is one thing.

所以我的意思是，我認為這個數字超過 800 萬美元。因此，如果我們考慮到這一點，那麼北京基金更多的是 700 萬美元的收益回撤，例如，那些衍生性商品損失是一回事。

Yes, quick math that makes sense.

是的，快速數學是有道理的。

Okay. And I guess just to further understand that. So as you mentioned, natural gas prices fell into the end of the year. So I assume that's a large part of the hit you took on the derivative losses. But those derivatives are to specifically to hedge in the margins of your specialty alcohol sales, right?

好的。我想只是為了進一步理解這一點。正如您所提到的，天然氣價格在年底下跌。因此，我認為這是衍生性商品損失造成的很大一部分損失。但這些衍生性商品是專門為了對沖您的特種酒精銷售的利潤，對吧？

Yes. So the derivatives that we normally would carry are in 2 factors. One is just to make sure that we've locked in natural gas prices, right, as much as we wish we had a crystal ball to know what the weather is going to be like in our locations year in, year out, it's difficult to do. So the next best thing is to make sure that you avoid the significant risk that can happen over a very short period of time, right, where we see natural gas prices spike to not only hundreds of dollars, but thousands of dollars as well. So to avoid that, it makes sense to lock in that winter strip to be able to cover those costs as well as doing some around the electricity side.

是的。所以我們通常持有的衍生性商品有兩個因素。一個只是確保我們鎖定天然氣價格，對吧，儘管我們希望有一個水晶球來了解我們所在地年復一年的天氣情況，但很難做。因此，下一個最好的事情是確保避免在很短的時間內可能發生的重大風險，對吧，我們看到天然氣價格不僅飆升至數百美元，而且也飆升至數千美元。因此，為了避免這種情況，鎖定冬季地帶是有意義的，以便能夠支付這些成本，並在電力方面做一些事情。

On the fixed Alcohol sales. Most of that is -- we will effectively take those fixed sales, swap those back out into floating and lock in the spread between that and fuel prices, largely because it's difficult to go out and procure delivered corn to the facility. To the extent we're able to do that, then you're able to lock in that spread as well.

關於固定酒精銷售。其中大部分是——我們將有效地採取這些固定銷售，將其換回浮動銷售，並鎖定其與燃料價格之間的價差，這主要是因為很難出去採購交付給工廠的玉米。如果我們能夠做到這一點，那麼您也能夠鎖定該價差。

So as the specialty alcohol sold, then -- so the derivatives are more of a paper loss?

那麼，隨著特種酒精的銷售，衍生性商品更多的是帳面損失？

Correct. To your point, the natural gas hedges were part of that as natural gas prices. So but to a large extent, it was mainly related to locking in the premium on our high-quality volume that we contract. Keep in mind, we contracted that in Q3 and Q4 for all of 2024. And so as the market prices fell, we're taking a timing loss, an unrealized loss. And those unrealized positions on the derivatives will continue to float throughout the course of next year as we unravel them ratable with when we actually deliver the product physically. Q4 and Q1 to take an unrealized loss on those.

正確的。就您而言，天然氣對沖是天然氣價格的一部分。所以，但在很大程度上，這主要與鎖定我們簽約的高品質數量的溢價有關。請記住，我們在 2024 年第三季和第四季簽訂了合約。因此，隨著市場價格下跌，我們面臨時間損失，即未實現的損失。這些未實現的衍生性商品部位將在明年繼續浮動，因為我們會在實際交付產品時將其分解出來。 Q4 和 Q1 承擔未實現的損失。

And the reason we made this change, Justin, as well is because historically we have experienced at times where we will lock in our fixed price sales hedges or derivatives and we'll experience the whole gain or the whole loss in the fourth quarter, and you have -- then you -- effectively you're trying to work through that the remainder of this following year or you to get the benefit or you carry the burden of trying to make up for that loss in the following 4 quarters. And so we thought it would be best instead that those were actually a distraction and really didn't reflect the true financial impact of the company, which is why we are now backing them out of EBITDA.

賈斯汀，我們做出這一改變的原因也是因為從歷史上看，我們有時會鎖定我們的固定價格銷售對沖或衍生品，我們將在第四季度經歷全部收益或全部損失，並且你已經——那麼你——實際上，你正在努力解決下一年剩餘時間的問題，或者你要獲得收益，或者你要承擔在接下來的4 個季度中試圖彌補損失的負擔。因此，我們認為最好的做法是，這些實際上是一種幹擾，並不能真正反映公司的真正財務影響，這就是為什麼我們現在支持他們退出 EBITDA。

Got it. And then as far as for the specialty alcohol sales, so it looks like you guys had a higher target at last quarter, I think you were hoping to hit $90 million for the full year. It looks like maybe you're only at about $75 million. I don't know if you have any comments on that and then what we could expect for 2024?

知道了。至於特種酒的銷售，看起來你們在上個季度有更高的目標，我認為你們希望全年達到 9000 萬美元。看來你的資產可能只有 7500 萬美元左右。不知道您對此有何評論，那麼我們對2024年有何期待？

Yes. So I think consistent with my comments earlier with regards to changes in the marketplace, we saw not only market pricing compression, we were protected from that because of the prices that we negotiated. However, the challenges were as well that as you saw demand, consumer demand started to change for different products that our customers as well have to make adjustments to the product, how much alcohol they were taking in as well. So there is a, if you will, 2024 volume. Some of that 2023 volume that was rolled into 2024 and being able to continue to preserve that margin.

是的。因此，我認為與我之前關於市場變化的評論一致，我們不僅看到市場定價壓縮，而且由於我們協商的價格，我們受到了保護。然而，挑戰也在於，正如您所看到的需求一樣，消費者對不同產品的需求開始發生變化，我們的客戶也必須對產品以及他們攝取的酒精量進行調整。如果你願意的話，有一個 2024 年的捲。 2023 年的部分銷量已轉至 2024 年，並且能夠繼續保持這一利潤率。

So we should expect a material increase in gallons sold, especially alcohol for '24?

因此，我們應該預期 24 年銷售的加侖數將大幅增加，尤其是酒精？

That's the goal.

這就是目標。

And then I guess one last comment. It's really great to hear stronger statements and your willingness to potentially dispose of the Western assets. And I guess just given a lot of the public comments made by your competitors on the potential value of facilities, is it safe to assume that any disposition of the Western assets would likely be over $100 million?

然後我想最後一則評論。很高興聽到更強有力的聲明以及您可能出售西方資產的意願。我想，考慮到競爭對手對設施潛在價值的大量公開評論，是否可以安全地假設西方資產的任何處置都可能超過 1 億美元？

I would hope it would be $600 million. It's difficult to assess, right? I mean we have -- we will evaluate opportunities as we have always indicated, that message has never really changed. So it's not unique for us to say this. I mean this goes for not only the Western assets, but all assets, right? We have to consider viable and reasonable opportunities.

我希望是 6 億美元。很難評價吧？我的意思是，我們將評估機會，正如我們一直表示的那樣，這一訊息從未真正改變過。所以我們這樣說並不是獨一無二的。我的意思是這不僅適用於西方資產，而且適用於所有資產，對吧？我們必須考慮可行且合理的機會。

And so that said, we have not found to date opportunities that exceeded what otherwise we could do with the assets ourselves. And so we will continue to invest in those and to the extent that, that changes, we certainly will remain vigilant and do the right thing for the company and for the shareholders. That means we will take that money and redeploy it and reinvest. So we'll do that. And if not, we'll certainly extract the value out of these unique assets and drive home in a greater profitability.

也就是說，到目前為止，我們還沒有發現超出我們自己利用這些資產所能做到的機會。因此，我們將繼續對這些領域進行投資，如果情況發生變化，我們當然會保持警惕，為公司和股東做正確的事情。這意味著我們將拿走這筆錢並重新部署並再投資。所以我們會這麼做。如果沒有，我們肯定會從這些獨特的資產中提取價值，並獲得更大的獲利能力。

This concludes our question-and-answer session. I would like to turn the conference back over to Bryon McGregor for any closing remarks.

我們的問答環節到此結束。我想將會議轉回由布萊恩·麥格雷戈發表閉幕詞。

Thank you, operator. Thanks again for joining us today. We appreciate your ongoing feedback and support. Have a good day.

謝謝你，接線生。再次感謝您今天加入我們。我們感謝您持續的回饋和支持。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。