Alto Ingredients Inc (ALTO) 2025 Q2 法說會逐字稿

Good day, and welcome to the Alto Ingredients second-quarter 2025 financial results conference call. (Operator Instructions)

大家好，歡迎參加 Alto Ingredients 2025 年第二季財務業績電話會議。 （操作員指示）

Please note, this event is being recorded. I would now like to turn the conference over to Kirsten Chapman with Alliance Advisors Investor Relations. Please go ahead.

請注意，本次活動正在錄製中。現在，我想將會議交給 Alliance Advisors 投資者關係部門的 Kirsten Chapman。請繼續。

Thank you, Asha, and thank you all for joining us for the Alto Ingredients second-quarter 2025 results conference call.

謝謝你，阿莎，也謝謝大家參加 Alto Ingredients 2025 年第二季業績電話會議。

On the call today are President and CEO, Bryon McGregor; and CFO, Rob Olander. Alto ingredients issued a press release after the market closed today, providing details of the company's financials for the second quarter of 2025. The company also has 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 August 13, the details of which are included in today's press release.

出席今日電話會議的嘉賓包括總裁兼執行長Bryon McGregor和財務長Rob Olander。 Alto Ingredients在今日收盤後發布了新聞稿，詳細介紹了該公司2025年第二季的財務狀況。本公司也為今日電話會議準備了一份演示文稿，可在公司網站altoingredients.com上查閱。今日電話會議的電話錄音將持續到8月13日，詳情已包含在今日新聞稿中。

A webcast replay will also be available on Alto Ingredients website. Please note the information on this call speaks only as of today, August 6, 2025, and you're advised that time-sensitive information may be no longer accurate at the time of any replay.

Alto Ingredients 網站也將提供網路直播重播。請注意，本次電話會議中的資訊僅截至 2025 年 8 月 6 日，且重播時，時間敏感資訊可能不再準確。

Please refer to the company's Safe Harbor statement on slide 2 of the presentation available online, which states that some of the comments in this presentation constitute forward-looking statements and considerations that involve 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.

請參閱公司線上簡報投影片2上的安全港聲明，該聲明指出，本簡報中的部分評論構成前瞻性陳述和考慮，涉及風險和不確定性。 Alto Ingredients 未來的實際表現可能與這些陳述有重大差異。可能導致或促成此類差異的因素包括但不限於 Alto Ingredients 先前及不時向美國證券交易委員會 (SEC) 提交的文件中揭露的事件、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 reported.

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。管理階層在準備的評論中將引用非公認會計準則指標。管理階層使用這些非公認會計準則指標來監控營運的財務表現，並相信這些指標將有助於投資者評估公司在報告期間的表現。

The company defines adjusted EBITDA as consolidated net income or loss before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense and depreciation and amortization.

該公司將調整後的 EBITDA 定義為扣除利息支出、利息收入、所得稅準備金、資產減損、未實現衍生性商品損益、收購相關費用以及折舊和攤銷前的合併淨收入或虧損。

To support the company's review of non-GAAP information, a reconciling table was included in today's press release. On today's call, Bryon will provide a review of strategic -- our strategic plan and activities, and Rob will comment on our financial results. Then Bryon will wrap up and open the call for Q&A.

為了支持公司對非公認會計準則資訊的審查，今天的新聞稿中附有調節表。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，羅布將對我們的財務表現進行評論。然後，布萊恩將結束會議並開始問答環節。

It's now my pleasure to introduce CEO, Bryon McGregor. Please go ahead, sir.

現在我很高興介紹執行長布萊恩·麥格雷戈。先生，請講。

Thank you, Kirsten. Thank you all for joining us today. The main takeaway for Q2 is that our adjusted EBITDA improved by nearly $6 million compared to last year, reflecting the successful execution of our initiatives to increase productivity. For some time, we have been focusing on short-term projects with more immediate returns, and we see the roots taking hold and delivering success. This approach will support our path to incremental profitability and an improved future.

謝謝，Kirsten。感謝各位今天與我們分享。第二季的主要亮點是，我們的調整後息稅折舊攤銷前利潤 (EBITDA) 較去年同期成長了近 600 萬美元，這反映出我們提升生產力的舉措取得了成功。一段時間以來，我們一直專注於短期項目，以獲得更直接的回報，我們看到這些項目正在紮根並取得成功。這種方法將支持我們逐步實現獲利，並創造更美好的未來。

Projects under evaluation will be prioritized by anticipated cost, timing and ROI impact. Under consideration are projects to lower our carbon intensity and capture more of the benefits of the 45Z regulations, increase our CO2 utilization at our Pekin campus and at Columbia, building on our successful Carbonic acquisition and improve our prospects to monetize our Western assets.

評估項目將根據預期成本、時間安排和投資報酬率影響進行優先排序。我們考慮的項目旨在降低碳強度，更好地利用45Z法規帶來的好處，提升我們在北京園區和哥倫比亞大學的二氧化碳利用率，鞏固我們成功收購Carbonic項目，並提升我們西部資產的盈利前景。

Further, we will continue to pursue opportunities to improve efficiency and productivity like we did in Q1 and Q2. As a brief update to our carbon capture and storage project for our Pekin campus, on August 1, the Governor of Illinois signed Senate Bill 1723 that prohibits CO2 sequestration directly through the Mohammad Aquifer as contemplated in our EPA Class VI permit. As a result, we are developing alternatives with [Walt] as well as evaluating other promising non-sequestration options to optimize the value of our CO2 production.

此外，我們將繼續尋求機會，提升效率和生產力，就像我們在第一季和第二季所做的那樣。關於北京園區的碳捕獲和封存項目，簡單更新一下：8月1日，伊利諾伊州州長簽署了參議院第1723號法案，禁止我們按照美國環保署六級許可證的要求，直接通過穆罕默德含水層進行二氧化碳封存。因此，我們正在與[Walt]合作開發替代方案，並評估其他有前景的非封存方案，以優化我們的二氧化碳生產價值。

The bottom line is while we lay the groundwork for longer-term capital-intensive projects, we are focusing on executable strategies within our control with short-term paybacks and potential long-term benefits. Our adjusted EBITDA for Q2 compared to last year's quarter reflects the benefits of multiple initiatives. We generated positive gross profit at our Western assets resulting from the combination of our liquid CO2 facility acquisition, improvements at our Columbia ethanol plant and our decision to cold idle Magic Valley due to adverse market factors.

最重要的是，在為長期資本密集專案奠定基礎的同時，我們專注於可執行的策略，這些策略在我們掌控範圍內，兼具短期回報和潛在的長期效益。與去年同期相比，我們第二季的調整後EBITDA反映了多項措施的成效。得益於液態二氧化碳設施的收購、哥倫比亞乙醇工廠的改進以及我們因市場不利因素而決定暫停Magic Valley工廠的運營，西部資產實現了正毛利。

Our Marketing and Distribution segment also improved, reflecting the integration of our bulk volume customers from our Eagle Alcohol business, fostering third-party ethanol marketing relationships that met profitability criteria and transitioning away from businesses that have limited returns. We note that our Pekin campus was negatively impacted by quarter-over-quarter changes in derivatives and the impact of the damage sustained to our load-out dock in April.

我們的行銷和分銷部門也取得了進步，這反映了我們整合了來自鷹牌酒精業務的大宗客戶，建立了符合盈利標準的第三方乙醇營銷關係，並逐步退出了回報有限的業務。我們注意到，我們的北京園區受到了衍生性商品環比變化以及4月裝卸碼頭受損的負面影響。

However, we partially offset these effects by leveraging our operational flexibility at the Pekin campus by increasing sales of higher-margin ISCC products exported to Europe. I'll cover more on the dock in a moment. Company-wide, we improved our operational model by rightsizing our corporate overhead to a level that aligns with our current company footprint.

然而，我們利用北京園區的營運彈性，增加了出口到歐洲的高利潤ISCC產品的銷售量，從而部分抵銷了這些影響。稍後我會在法庭上詳細介紹。在全公司範圍內，我們優化了營運模式，將公司營運成本調整到與目前公司規模相符的水平。

Based on our Q2 results, we are on track to exceed our goal of saving approximately $8 million annually. We continue to evaluate options to improve operational efficiency and throughput, focus on growth in profitable market segments and identify additional cost-saving opportunities that, while smaller in amount, should, in the aggregate, make a real difference in the long run.

根據我們第二季的業績，我們預計將超額完成每年約800萬美元的節支目標。我們將持續評估提升營運效率和產量的方案，專注於獲利細分市場的成長，並尋找其他成本節約機會。這些機會雖然規模較小，但從長遠來看，應該會帶來真正的效益。

Turning back to the Pekin campus. In early April, our load out dock sustained damage due to rapidly rising river levels, impacting production, logistics and campus economics for most of Q2. Since our last call, we've made progress recovering from this setback in a few ways. First, we were able to respond quickly to take interim steps with third-party river transload vendors to minimize business interruption.

回到北京園區。 4月初，我們的裝卸碼頭因河水水位快速上升而受損，影響了第二季大部分時間的生產、物流和園區經濟。自上次電話會議以來，我們在幾個方面取得了恢復進展。首先，我們能夠迅速回應，與第三方河運轉運供應商採取臨時措施，最大限度地減少業務中斷。

Also, we worked with our insurance carrier to confirm coverage for both the property damage and business interruption.

此外，我們也與保險公司合作，確認財產損失和業務中斷的承保範圍。

Finally, we're reviewing repair plans with our carrier to ensure the best path forward. We intend to commence the project ahead of Midwest winter and expect work to extend into next year. On markets and regulatory trends, the Big Beautiful Bill enacted in July made several positive updates too, including the 45Z credit extensions through the end of 2029 and spending on farm programs that are beneficial for the industry.

最後，我們正在與承運商一起審查維修計劃，以確保最佳的推進方案。我們計劃在中西部冬季來臨之前啟動該項目，預計工程將持續到明年。在市場和監管趨勢方面，7月頒布的《大美麗法案》也做出了一些積極的更新，包括將45Z信貸額度延長至2029年底，以及對有利於該行業的農業項目的支出。

The bill also increased focus on domestic renewable fuel production and introduced new eligibility restrictions, particularly around foreign involvement. For example, only fuel derived from feedstocks grown or produced in North America is eligible for the credit. We are pursuing options to capitalize on 45Z.

該法案也更加重視國內再生燃料的生產，並引入了新的資格限制，特別是針對外國參與。例如，只有以北美種植或生產的原料製成的燃料才有資格獲得該抵免。我們正在探索利用45Z的方案。

Based on our current carbon intensity scores, Colombia will qualify for $0.10 per gallon for 2025 and up to $0.20 for 2026, while our Pekin dry mill will qualify for $0.10 per gallon starting in 2026. This equates to roughly $4 million in 2025 and $8 million in 2026 for Colombia and $6 million for the dry mill in 2026 based on production capacity.

根據我們目前的碳強度評分，哥倫比亞在 2025 年將符合每加侖 0.10 美元的碳強度標準，到 2026 年將達到每加侖 0.20 美元的碳強度標準，而我們的北京乾磨機從 2026 年開始將符合每加侖 0.10 美元的碳強度標準。根據生產能力，這相當於哥倫比亞在 2025 年獲得約 400 萬美元，2026 年獲得 800 萬美元，2026 年乾磨機獲得 600 萬美元。

Further, we expect to make improvements to our plants to increase the anticipated credits moving forward across all eligible facilities. While low carbon corn may contribute favorably towards further reduction in reducing our carbon footprint, we are evaluating whether it's economically beneficial to source that particular feedstock to reduce our carbon footprint. The other two operating plants at Pekin will continue to produce higher quality products as well as take advantage of the export market premiums for fuel as the new rule incentivizes domestic ethanol plants from 45Z eligible dry mills.

此外，我們預計將對工廠進行改進，以增加所有符合條件的工廠的預期信用額度。雖然低碳玉米可能有助於進一步減少我們的碳足跡，但我們正在評估購買該特定原料以減少碳足跡是否具有經濟效益。由於新規鼓勵來自符合45Z條件的乾法乙醇工廠的國內乙醇工廠，位於北京的另外兩家營運工廠將繼續生產更高品質的產品，並利用出口市場的燃料溢價。

The bill also positively impacts farm programs by boosting sector profitability, reducing financial volatility, enhancing asset values and strengthening the overall safety net with the intent to improve operational stability and long-term farm enterprise value.

該法案還透過提高行業盈利能力、降低金融波動性、​​提高資產價值和加強整體安全網，對農業項目產生積極影響，旨在提高營運穩定性和長期農場企業價值。

Also contained within the bill is the increase in USDA commodity reference prices and base acres. Corn will increase by $3.70 per bushel to $4.10 per bushel and soybeans from $8.40 per bushel to $10 per bushel and the addition of up to 30 million base acres that can enroll the farm programs.

該法案還包含提高美國農業部大宗商品參考價格和基準種植面積的內容。玉米價格將從每蒲式耳提高3.70美元至每蒲式耳4.10美元，大豆價格將從每蒲式耳提高8.40美元至每蒲式耳10美元，並增加最多3000萬英畝可用於參與農業計畫的基準種植面積。

As a result, farmers will need new and expanded markets to absorb the additional production. We believe this will bode well for the future of the higher ethanol blends and new uses of American grown feedstocks, making the U.S. an even more attractive origin for source ethanol and other renewable fuel products internationally.

因此，農民需要新的、更廣大的市場來吸收新增的產量。我們相信，這將有利於未來更高乙醇混合比例的推廣以及美國種植原料的新用途，使美國成為更具國際吸引力的乙醇和其他再生燃料產品產地。

Turning to crush margins. The annual uptick in demand from the summer driving season helped lift ethanol prices and improve crush spreads. While it's difficult to predict market fluctuations, we have seen additional spread improvement in Q3. And we remain optimistic for positive margins for the remainder of the summer. Regarding E15 blending waivers, the EPA extended the waivers nationally through the summer, offering continued support for near-term domestic ethanol blending.

談到壓榨利潤。夏季駕駛季帶來的年度需求成長推動了乙醇價格上漲，並改善了壓榨價差。雖然市場波動難以預測，但我們看到第三季的價差進一步改善。我們仍然對夏季剩餘時間的利潤率保持正成長持樂觀態度。關於E15混合燃料豁免，美國環保署已將豁免期限延長至整個夏季，為近期國內乙醇混合提供持續支持。

In California, there was further progress and regulatory momentum continues to build for E15 blending.

在加州，E15 混合燃料的監管取得了進一步進展，並且勢頭持續增強。

However, full-scale implementation is still pending further administrative review and regulatory updates. On the sustainability front, we finalized our Scope 1 and 2 greenhouse gas verifications during the quarter, and we have submitted our 2025 EcoVadis scorecard. On the corporate front, in June, we held our Annual Meeting of Stockholders, electing two new Board members, Jeremy Besdek and Alan Tank.

然而，全面實施仍有待進一步的行政審查和監管更新。在永續發展方面，我們在本季度完成了範圍一和範圍二溫室氣體核查，並已提交2025年EcoVadis評分卡。在公司方面，我們在6月舉行了年度股東大會，選出了兩位新董事會成員：Jeremy Besdek和Alan Tank。

We look forward to their fresh perspectives and contributions. I'd also like to congratulate Gil Nathan, on being named Chairman of the Board and Dianne Nury, Vice Chair.

我們期待他們帶來新的視角和貢獻。我還要祝賀吉爾·內森（Gil Nathan）被任命為董事會主席，以及黛安·努里（Dianne Nury）被任命為副主席。

With that, I'll turn the time to Rob for our financial review.

有了這些，我將把時間交給 Rob 來進行我們的財務審查。

Thank you, Bryon. I'll review the financial results for Q2 2025 compared to Q2 2024. We sold 86.7 million gallons compared to 95.1 million gallons. The change in volume reflects our decision to rationalize unprofitable business in our marketing and distribution segment and the impact of the dock availability at our Pekin campus. Because we sold fewer gallons in Q2 2025 and at average lower prices, net sales were $218 million, $18 million lower than the prior year.

謝謝，Bryon。我將回顧2025年第二季與2024年第二季的財務表現比較。我們的銷售量為8670萬加侖，而去年同期為9510萬加侖。銷售變化反映了我們決定精簡行銷和分銷部門中不盈利的業務，以及北京園區碼頭可用性的影響。由於2025年第二季我們的銷售量減少，且平均價格較低，淨銷售額為2.18億美元，比上年減少1,800萬美元。

Cost of goods sold or COGS was $9 million lower than the same quarter last year. Gross loss was $1.9 million compared to gross profit of $7.6 million, reflecting the following factors. The Pekin campus year-over-year change in unrealized noncash derivatives was negative $13.2 million and the realized derivative gain was positive $7.6 million, resulting in a net unfavorable change of $5.6 million.

銷售成本（COGS）較去年同期下降900萬美元。毛虧損190萬美元，而毛利760萬美元，主要原因如下：北京校區未實現非現金衍生性商品年增為負1320萬美元，已實現衍生性商品收益為正760萬美元，導致淨虧損560萬美元。

Although the market crush continued to improve in 2025, we're still on average $0.10 lower than the Q2 of 2024. This equated to $5.5 million of lower crush margin comparatively. As Bryon mentioned, we are heading in the right direction with the market crush averaging $0.30 per gallon for July. High-quality alcohol premiums were $0.15 per gallon less than the same quarter last year due to increased competition during the annual contracting process.

儘管2025年的市場壓榨量持續改善，但我們的平均價格仍比2024年第二季低0.10美元。這相當於壓榨利潤率相對下降了550萬美元。正如Bryon所提到的，我們正朝著正確的方向前進，7月份市場壓榨量平均為每加侖0.30美元。由於年度合約簽訂過程中競爭加劇，優質酒精溢價比去年同期每加侖低0.15美元。

This translated to $3 million, which we were able to offset with our ability to shift higher volumes into the more profitable ISCC export markets. This is a prime example of how our strategy to diversify production enables us to take advantage of market opportunities. Our essential ingredients return at the Pekin campus dropped this quarter by nearly 4.5 points to 44.2%. However, this doesn't include the impact of our related hedging activities.

這相當於300萬美元，我們能夠透過將更多產量轉移到利潤更高的ISCC出口市場來彌補這一損失。這充分體現了我們多元化生產策略如何幫助我們抓住市場機會。本季，我們北京園區的必需原料回報率下降了近4.5個百分點，至44.2%。但這還不包括我們相關對沖活動的影響。

Taking our realized hedging gains into consideration, there was no impact to profitability. The impact of the dock outage totaled $2.7 million for the quarter, and we are working with our insurance company to recover the losses in excess of our deductibles. At the Western facilities, gross profit improved $5.6 million over Q2 2024. With the addition of our Alto Carbonic liquid CO2 processing facility, the Columbia plant improved gross profit by $3 million to $2.3 million. Finally, in our Magic Valley plant and utilizing it primarily as a terminal, we improved gross profit by another $2.6 million.

考慮到我們已實現的避險收益，獲利能力不受影響。碼頭停駛對本季的影響總計270萬美元，我們正在與保險公司合作，追回超出免賠額的損失。西部工廠的毛利較2024年第二季增加了560萬美元。隨著Alto Carbonic液態二氧化碳處理設施的投入，哥倫比亞工廠的毛利增加了300萬美元，達到230萬美元。最後，我們主要用作碼頭的Magic Valley工廠的毛利又增加了260萬美元。

We also reduced SG&A to $6.2 million. This $2.8 million improvement includes $1.1 million related to final payments for our acquisition of Eagle Alcohol, $900,000 from rightsizing our SG&A staffing levels and another $900,000 less in noncash stock compensation.

我們還將銷售、一般及行政費用 (SG&A) 降至 620 萬美元。這 280 萬美元的改進包括：110 萬美元與收購 Eagle Alcohol 的最終付款有關；90 萬美元來自優化銷售、一般及行政費用 (SG&A) 人員配置；以及 90 萬美元的非現金股票薪酬減少。

Along with our workforce reductions that improved COGS by $1.2 million, we are exceeding our target annual overhead savings of approximately $8 million. We also took additional steps to further lower our future costs, including negotiating lower property taxes, improving terms with suppliers, reducing reliance on outside services as well as a myriad of other changes, which we expect in aggregate will make a meaningful difference in the future.

除裁員將銷售成本降低120萬美元外，我們還超額完成了約800萬美元的年度管理費用節省目標。我們還採取了其他措施來進一步降低未來成本，包括協商降低房產稅、改善與供應商的條款、減少對外部服務的依賴以及其他一系列變革。我們預計，這些措施將在未來產生顯著的正面影響。

Interest expense increased $1.1 million, reflecting the higher average outstanding loan balances and interest rates. Our consolidated net loss was $11.3 million for Q2 of 2025 compared to a net loss of $3.4 million in Q2 2024, primarily due to higher unrealized noncash derivative losses, lower crush margins, lower high-quality alcohol premiums and the impact to our loading dock as discussed earlier in the call. Adjusted EBITDA improved $5.7 million to negative $200,000 in Q2 2025.

利息支出增加了110萬美元，反映了平均未償還貸款餘額和利率的上升。 2025年第二季度，我們的合併淨虧損為1,130萬美元，而2024年第二季的淨虧損為340萬美元，主要原因是未實現非現金衍生性商品損失增加、壓榨利潤下降、優質酒精溢價下降以及裝卸碼頭受到的影響（如電話會議先前所述）。 2025年第二季度，調整後EBITDA改善了570萬美元，至負20萬美元。

As of June 30, 2025, our derivative net asset position was $1.7 million. Our cash balance was $30 million, and our total loan borrowing availability was $70 million, including $5 million under our operating line of credit and $65 million subject to certain conditions under our term loan facility.

截至2025年6月30日，我們的衍生性商品淨資產部位為170萬美元。我們的現金餘額為3000萬美元，我們的可用貸款總額為7000萬美元，其中包括500萬美元的營運信貸額度和6500萬美元的定期貸款額度（需符合特定條件）。

During the second quarter of 2025, we used $850,000 in cash from our operations. We spent another $500,000 in CapEx, much lower than historical averages to manage liquidity and focused priorities. And year to date, we recorded $16 million in repairs and maintenance expense, in line with our 2025 estimate of $32 million.

2025年第二季度，我們使用了85萬美元的營運現金。我們又支出了50萬美元的資本支出，遠低於歷史平均水平，用於管理流動性和重點工作。年初至今，我們的維修和維護費用為1,600萬美元，與我們2025年3,200萬美元的預期一致。

In summary, our acquisition of Alto Carbonic, entry into the European ISCC markets, cost restructuring efforts and scaling back marginal operations has improved our financial position. With that, I'll turn the call back.

總而言之，我們收購了Alto Carbonic，進入了歐洲ISCC市場，進行了成本重組，並縮減了邊際業務，這些舉措改善了我們的財務狀況。至此，我就可以交接電話了。

Thank you, Rob. Our purposeful initiatives in 2025 have delivered adjusted EBITDA improvements, even though markets remain volatile. With these successes and positive overall backdrop, we are doubling down to focus on executable projects within our control with short-term paybacks, more immediate returns and long-term benefits. . We are prioritizing these projects by their anticipated cost, timing and ROI impact.

謝謝你，Rob。儘管市場依然動盪，但我們在2025年採取的有針對性的舉措已帶來調整後EBITDA的提升。憑藉這些成功經驗和積極的整體形勢，我們將加倍努力，專注於我們掌控範圍內、具有短期回報、更直接的收益和長期效益的可執行項目。我們將根據這些項目的預期成本、時間和投資報酬率影響，確定其優先順序。

We are also evaluating opportunities to improve low-carbon prospects, improve asset monetization and increase CO2 utilization and production. The regulatory environment is positive for the industry and is conducive to creating opportunities for Alto.

我們也正在評估改善低碳前景、提高資產貨幣化以及提高二氧化碳利用率和產量的機會。目前的監管環境對產業有利，有利於為Alto創造機會。

The change in 45Z have created the opportunity for at least two plants to apply for credit totaling approximately $18 million in the next two years alone based on our nameplate and targeted carbon-intensity scores and for our other plants to capture more of the export market. Notably as a result of the 45Z updates, the earnings profile and thus the intrinsic value of all our facilities have improved.

45Z 標準的變更為至少兩家工廠創造了機會，僅在未來兩年內，他們就有機會根據我們的標牌和目標碳強度評分申請總額約 1800 萬美元的信貸，同時也為我們的其他工廠贏得了更多的出口市場份額。值得注意的是，45Z 標準的更新提高了我們所有工廠的獲利狀況，從而提升了其內在價值。

Finally, working with Guggenheim, we continue to make progress on our Western asset optimization and monetization plan. We are also evaluating strategic alternatives and interest for Pekin and the company as a whole. We will share more information in this regard when appropriate.

最後，我們與古根漢合作，繼續推動西部資產優化和貨幣化計畫。我們也在評估Pekin和整個公司的策略選擇和利益。我們將在適當的時候分享更多這方面的資訊。

Before we turn the call to questions, I'll note we will present at the H.C. Wainwright Investor Conference on the 9th of September in New York City and hope to see some of you there.

在我們開始提問之前，我想指出，我們將於 9 月 9 日在紐約舉行的 H.C. Wainwright 投資者會議上發表演講，希望在那裡見到你們。

With that, operator, we're ready to begin Q&A with sell-side analysts.

接線員，我們準備開始與賣方分析師進行問答。

(Operator Instructions) Eric Stine, Craig-Hallum.

（操作員指示）Eric Stine，Craig-Hallum。

This is Luke on for Eric. So first, with the Carbonic acquisition in Colombia already paying off in a big way in terms of profitability, what's your outlook for further operational benefits there? Do you think there's still substantial synergies yet to have been not realized? And how early are we just in the process of realizing some of these benefits?

盧克接替艾瑞克的訪問。首先，鑑於在哥倫比亞收購Carbonic公司已經為盈利帶來了巨大的回報，您對該公司未來在營運方面的進一步收益有何展望？您認為是否還存在尚未實現的實質綜效？我們目前處於實現這些收益的階段嗎？

So we're -- look, it's a good question. We certainly haven't peaked yet with regards to our overall capacity at our Carbonic facility. We produce -- if you want to round numbers out, you're looking at over 100,000 tons of CO2 that's produced at the Columbia facility on an annual basis and about 70,000 capacity, and we're producing on average for sale about 50,000 metric tons. So there's clearly room for growth, and we're working with our core customer to make sure that we get quality set product if there is interest.

所以，你看，這是個好問題。就我們Carbonic工廠的整體產能而言，我們當然還沒有達到高峰。我們生產－如果要四捨五入的話，哥倫比亞工廠每年生產超過10萬噸二氧化碳，產能約為7萬噸，而我們平均銷售的二氧化碳約為5萬噸。所以，顯然還有成長空間。我們正在與核心客戶合作，確保在他們感興趣的情況下，我們能提供高品質的產品。

But it takes time to build that infrastructure and support around that. So we think that's really a nice positive for us without really much lifting that would be required. It would certainly require more capital spend if you wanted to expand the capacity of the Carbonic facility, but it's mostly vessels and the like. So it would be generally a light other general light lift to the extent that the demand increase is there for that need.

但建設基礎設施和相關支援需要時間。因此，我們認為這對我們來說確實是一個利好消息，無需進行太多的額外工作。如果要擴大Carbonic設施的產能，肯定需要更多的資本支出，但主要還是在船舶之類的方面。因此，一般來說，只要需求增加，這筆資金就會用於其他一些輕型專案。

Great. That's helpful. And switching gears a little bit for the second question. On the export strategy to Europe, how equipped are you to make this a substantial revenue stream out of Pekin? And does the dock damage recently impede any progress on that front materially? Or is that not really a factor.

太好了，這很有幫助。稍微轉換一下話題，談談第二個問題。關於對歐洲的出口策略，您準備如何將其打造成北京的一項重要收入來源？最近的碼頭損壞是否對這方面的進展造成了實質阻礙？或者說，這根本不是主要因素。

So I'll answer that in maybe reverse order. The dock, we have certainly developed workarounds and are working and are grateful for the support that we received from long-standing relationships. That said, it's not as effective as if we were to run it as we have historically with our own dock. So it's imperative that we get our dock repaired and replaced. And we're working diligently to that end, as Rob had mentioned.

所以我可能會反過來回答這個問題。碼頭方面，我們確實已經制定了變通方案，並且正在努力，我們非常感謝長期合作夥伴給予我們的支持。話雖如此，但如果像我們以前那樣自行運營碼頭，效果肯定不如現在。因此，我們必須修復和更換碼頭。正如Rob所提到的，我們正在為此努力。

That said, we have found that as we think back to what we had originally projected and expected around European sales that we are significantly exceeding that and that there continues to be demand for the product. And it's unique in regards to what we can produce because of the high-quality products that we produce at the ICP and the wet mill that make that product unique and eligible for sale there. So we would expect that to continue to improve as well.

話雖如此，但當我們回顧最初對歐洲銷售的預測時，我們發現我們的業績遠超預期，而且市場對該產品的需求持續旺盛。而且，由於我們在ICP和濕磨機生產的高品質產品，使得該產品獨一無二，適合在歐洲銷售，因此我們能夠生產的產品也獨一無二。因此，我們預計這一成長勢頭還會繼續改善。

Sameer Joshi, H.C. Wainwright.

薩米爾喬希、H.C. 溫賴特。

Yes. I just want a clarification on the SG&A improvement. Was the $1.1 million Eagle Alcohol improvement a onetime thing? Or should we expect that going forward as well.

是的。我只是想澄清一下銷售、一般及行政管理費用（SG&A）的改善。 110萬美元的Eagle Alcohol改善是一次性的嗎？還是說我們應該預期這種情況會持續下去？

No, that was a onetime. That was just the change in the deferred acquisition costs associated with acquiring Eagle. And those are the final acquisition costs. So you won't see that going forward.

不，那是一次性的。那隻是收購Eagle相關的遞延收購成本的變動。這些都是最終的收購成本。所以你以後不會再看到這種情況了。

Yes. Yes. That's what I thought. So going forward, it will be $6.1 million plus $1.1 million or around about those levels SG&A on a quarterly basis.

是的，是的。我也是這麼想的。所以，以後每季的銷售、行政及行政管理費用（SG&A）大概是610萬美元，再加上110萬美元，差不多就是這個水準。

Yes, that's fair.

是的，這很公平。

Okay. Are there any further reductions specifically on the SG&A front that you can -- not at the COGS, but at the SG&A level that you can realize?

好的。在銷售、一般及行政費用 (SG&A) 方面，您還能進一步削減成本嗎？不是在銷貨成本 (COGS) 方面，而是在銷售、一般及行政費用 (SG&A) 水準方面。

Yes, it's a good question. We took pretty significant efforts to right size our staffing levels to better align with our current organizational footprint. And we've seen the benefit of that. You annualize the impact of that for Q2, we're exceeding our $8 million targeted savings goal, which impacts SG&A and COGS alike. But in regards to SG&A and some other areas, as mentioned in our remarks, we are -- we're looking across the board, and we're scrutinizing all spend.

是的，這是個好問題。我們付出了相當大的努力來調整人員配置，以更好地適應我們目前的組織架構。我們已經看到了這樣做的好處。如果將第二季的影響按年化計算，我們超額完成了800萬美元的節支目標，這對銷售、一般及行政費用（SG&A）和銷貨成本（COGS）都產生了影響。但就銷售、一般及行政費用和其他一些領域而言，正如我們在發言中提到的，我們正在全面審視，並仔細審查所有支出。

We're trying to be very wise with our liquidity. We've negotiated better terms with some of our key suppliers, both in respect to payment terms and in pricing.

我們正在努力合理利用流動性。我們已經與一些主要供應商協商了更有利的條款，包括付款條件和定價。

We've spoken with our property tax assessors and lowered some of our real estate taxes. And we've also taken the opportunity to in-source some activities that historically we use contractors for. So a lot of these efforts individually aren't significant, but collectively, we think that they'll make a pretty meaningful impact moving forward.

我們與房產稅評估員進行了溝通，降低了部分房地產稅。我們也藉此機會將一些過去需要承包商完成的工作外包出去。所以，這些努力單獨來看可能並不重要，但綜合起來，我們認為它們將在未來產生非常有意義的影響。

Yes. No. It is really good to see improvement on that front. On the 45Z, $18 million estimated benefits over the next two years, are those based on CI improvements that you are targeting? Or are those based on existing facility generating those CI scores and $18 million in savings or other benefits.

是的。不是。看到這方面的進步確實令人欣慰。關於45Z，預計未來兩年將帶來1,800萬美元的收益，這些收益是基於你們設定的CI改善目標嗎？還是基於現有設施產生的CI分數以及1800萬美元的節省或其他收益？

Yes. No, that's a good question. That number is based on what our current CI scores are anticipated to be under the GREET calculations. It improves for Columbia, it will qualify in 2025. And then with the ILUC standard change being removed, that will double the impact for 2026 is the anticipation at Colombia.

是的。不，這是個好問題。這個數字是基於我們目前在GREET計算下CI分數的預期。哥倫比亞大學的CI分數有所提高，將在2025年達到標準。然後，隨著ILUC標準變更的取消，哥倫比亞大學預計2026年CI分數的影響將翻倍。

The dry mill, we don't anticipate will qualify in 2025. But again, with the ILUC change, we believe they will qualify in 2026. So any additional changes to reduce our carbon score would be above and beyond these targets.

我們預計乾磨機在 2025 年不會符合要求。但隨著 ILUC 的變化，我們相信它們將在 2026 年符合要求。因此，任何旨在降低碳排放分數的額外變化都將超出這些目標。

Right, right. And they will come with associated CapEx, which you have indicated you will deploy based on your ROI calculation.

對，對。而且它們會附帶相關的資本支出，您已經表示會根據投資回報率計算進行部署。

Yes. And some will have CapEx implications, but others may not. It just has to do with ways to continue to be more energy efficient. And to some degree, it may include sourcing feedstock, as I mentioned in my prepared remarks, we're still evaluating it, but certainly sourcing feedstock that has a lower carbon footprint. And if you do so effectively, there's significant benefit, as you can see.

是的。有些措施會影響資本支出，有些則不會。這只是關於如何繼續提高能源效率的問題。在某種程度上，這可能包括採購原料，正如我在準備好的演講中提到的，我們仍在評估，但肯定會採購碳足跡較低的原料。如果有效地做到這一點，如您所見，將會帶來顯著的效益。

I mean there's an additional $0.80 to be had between where we will be in 2026. And if you get to 0, that's an incredible lift, but still something to aspire to and achieve.

我的意思是，到 2026 年，我們還需要額外的 0.80 美元。如果達到 0，這是一個令人難以置信的提升，但仍然是值得追求和實現的目標。

Yes, yes. And just a clarification on that, it just struck me. You have been using only American-sourced feedstock, right? There was nothing being imported for feedstock.

是的，是的。我剛才突然想到了這一點，想澄清一下。你們一直只使用美國產的原料，對嗎？沒有進口任何原料。

That's correct.

沒錯。

Got it. Just last one. Is there any color or insight into the Western asset monetization process or it's being worked on, but no more details.

明白了。就最後一個問題。請問您能透露一些關於西​​方資產貨幣化進程或正在進行的進程的詳情嗎？不過沒有更多細節了。

Yes, I'll take that one. Yes, we're continuing to work with Guggenheim. We're having conversations with prospective buyers, and we're evaluating the opportunities. The process for transactions of this size and for unique assets being destination plants tends to take a little bit longer to get through the diligence process. Each plant is nuanced in its own way.

是的，我接受這個。是的，我們正在繼續與古根漢合作。我們正在與潛在買家洽談，並評估各種機會。對於這種規模的交易，以及作為目標工廠的獨特資產，盡職調查流程往往需要更長的時間。每個工廠都有自己的獨特之處。

It takes time to discuss in diligence, the high-protein technology at Magic Valley and then also the recent acquisition of the Carbonic CO2 liquid processing facility. Now with the positive regulatory changes that we've seen around 45Z, that's also going to increase our valuations, which is going to impact the diligence process as well. But also point out that we're considering all options as part of our ongoing efforts to maximize shareholder value. And that's including asset sales potentially in addition to Western assets, the merger or really any strategic transactions that better align the long-term value potential of our company.

在盡職調查中，討論Magic Valley的高蛋白技術以及最近收購Carbonic二氧化碳液體處理設施需要時間。現在，我們看到45Z周圍出現了積極的監管變化，這也將提高我們的估值，從而影響盡職調查流程。同時，需要指出的是，我們正在考慮所有選項，以持續努力實現股東價值最大化。這包括可能出售西部資產以外的資產、合併，以及任何能夠更好地整合公司長期價值潛力的策略交易。

And I guess with that, we'll have more to report when appropriate.

我想，在適當的時候我們會有更多內容要報導。

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

我們的問答環節到此結束。我想將會議交還給布萊恩·麥格雷戈，請他發表閉幕致詞。請繼續。

Thank you, operator, and thank you all again for joining us today. We appreciate your ongoing feedback and support. Please have a good day.

謝謝接線員，再次感謝大家今天的參與。感謝您一直以來的回饋與支持。祝您擁有美好的一天。

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。您可以斷開連線了。