Alto Ingredients Inc (ALTO) 2025 Q3 法說會逐字稿

Good day and welcome to Alto Ingredients Third quarter 2025 financial results conference call. All all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press then 1 on a touch tone phone. To withdraw your question, please press 2. Please note that this event is being recorded.

大家好，歡迎參加 Alto Ingredients 2025 年第三季財務業績電話會議。所有參與者將處於唯讀模式。如果您需要協助，請按星號鍵，然後按 0，向會議專家發出訊號。今天的報告結束後，將有機會提問。若要提問，您可以按按鍵式電話上的 1。若要撤回您的問題，請按 2。請注意，本次活動正在錄影。

I would now like to turn the conference over to Harriet Fried of Alliance Advisors.

現在我將把會議交給 Alliance Advisors 的 Harriet Fried 主持。

Please go ahead.

請繼續。

Thank you, operator, and thank you all for joining us today for the Al ingredients 3rd quarter 2025 results conference call. On the call today are President and CEO Bryon McGregor and CFO Rob Olander.

謝謝接線生，也感謝各位今天參加 Al Ingredients 2025 年第三季業績電話會議。今天參加電話會議的有總裁兼執行長 Bryon McGregor 和財務長 Rob Olander。

Alto ingredient issued a press release after the market closed today, providing details of the company's financial results for the 3rd quarter of 2025. The company also prepared a presentation for today's call that is available on its website at altoingredients.com.

Alto Ingredients在今天股市收盤後發布新聞稿，詳細介紹了該公司2025年第三季的財務表現。該公司還為今天的電話會議準備了一份演示文稿，該演示文稿可在其網站 altoingredients.com 上找到。

Telephone replay of today's call will be available through November 12th, the details of which are included in today's press release. The webcast replay will also be available on the auto ingredients website. Please note that the information on this call speaks only as of today, November 5th. You're advised that time sensitive information may no longer be accurate at the time of any replay.

今天電話會議的錄音回放將持續到 11 月 12 日，詳情請參閱今天的新聞稿。網路直播回放也將在汽車零件網站上提供。請注意，本次通話中的資訊僅代表截至今天（11月5日）的情況。請注意，時效性資訊在重播時可能不再準確。

Please refer to the company's safe harbor statement in the slide deck posted to the company's website 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 all 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 auto ingredients filings with the SEC. Except as required by applicable law, the company assumes no obligation to update any forward-looking statements.

請參閱公司網站上發布的幻燈片中的公司安全港聲明，其中指出，本次簡報中的一些評論構成前瞻性陳述和考慮因素，涉及風險和不確定性。所有成分的實際未來結果可能與這些說法有重大差異。導致或促成此類差異的因素包括但不限於以下幾個方面。先前和不時在向美國證券交易委員會提交的汽車零件文件中披露的事件、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 financial performance of operation and believes these measures will assist investors in assessing the company's performance for the periods reported.

管理階層準備的發言稿中將提及非GAAP指標。管理層使用這些非公認會計準則指標來監控營運的財務業績，並認為這些指標將幫助投資者評估公司在報告期間的業績。

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 expense.

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、資產減損、未實現衍生性商品收益和損失、收購相關費用以及折舊和攤銷費用之前的合併淨收入或虧損。

To support the company's review of non-GAAP information, a reconciling table has been included in today's release. On today's call, Bryon will provide a review of the company's strategic plan and activities. Rob will comment on his financial results. Then Bryon will wrap up and open the call for Q&A. It's now my pleasure to introduce Bryon McGregor. Bryon, go ahead, please.

為了支持公司對非GAAP資訊的審查，今天的新聞稿中包含了一份調節表。在今天的電話會議上，布萊恩將對公司的策略計畫和活動進行回顧。羅布將對他的財務業績發表評論。然後布萊恩將總結發言，並開放問答環節。現在我很榮幸向大家介紹拜倫麥格雷戈。拜倫，請繼續。

Thank you, Harriet. Thank you all for joining us today.

謝謝你，哈麗特。感謝各位今天蒞臨。

Strong market conditions combined with the benefits realized from our recent strategic realignment delivered improvements across all segments of our business in the 3rd quarter of 2025 compared to the same period in 2024.

強勁的市場環境，加上我們近期策略調整帶來的益處，使得我們2025年第三季所有業務部門的業績都比2024年同期有所提升。

Gross profit increased $18 million net income improved $17 million and adjusted EBITDA grew $9 million. These robust improvements reflect several key factors. We increase renewable fuel export sales, illustrating the advantage of our platform's flexibility to shift our product mix to meet market demand to capture the highest value for our products.

毛利增加 1,800 萬美元，淨利潤增加 1,700 萬美元，調整後 EBITDA 成長 900 萬美元。這些顯著的改進反映了幾個關鍵因素。我們增加了再生燃料的出口銷售額，這反映了我們平台的靈活性優勢，即能夠調整產品組合以滿足市場需求，從而為我們的產品創造最大價值。

We benefited from strong demand for liquid CO2, particularly on the west coast, and we reduced costs and improved efficiencies, including rationalizing unprofitable business activities, successfully lowered expenses year over year. As we've recently discussed, we've been prioritizing shorter term projects based on cost, timing, and most importantly, projected ROI.

我們受益於對液態二氧化碳的強勁需求，尤其是在西海岸，我們降低了成本並提高了效率，包括合理化無利可圖的業務活動，成功地逐年降低了支出。正如我們最近討論的那樣，我們一直根據成本、時間以及最重要的預期投資回報率來優先考慮短期項目。

We continue to believe this strategy will pave the way to incremental profitability and an improved future. Our goals include lowering our carbon intensity score to capture more of the benefits from the section 45Z tax regulations and increasing our CO2 utilization at our peak in campus and at Columbia, building on our successful carbonic acquisition.

我們仍然相信，這項策略將為逐步提高獲利能力和創造更美好的未來鋪路。我們的目標包括降低碳強度評分，以便從第 45Z 節稅收法規中獲得更多好處，並在校園和哥倫比亞大學高峰期提高二氧化碳利用率，以鞏固我們成功的碳捕獲成果。

I'll provide some updates. We remain confident in our ability to generate section 45Z tax credits on ethanol production. Once we complete our work to qualify for these credits, we expect to earn $0.10 per gallon at our Columbia plant for 2025. In addition, with the updated indirect land use change, or ILUC in 2026, we expect to lower our carbon intensity scores, increasing available tax credits to $0.20 per gallon at our Columbia facility, and earning $0.10 per gallon at our peak and dry mill.

我會提供一些最新資訊。我們仍然有信心透過乙醇生產獲得第 45Z 條款稅收抵免。一旦我們完成獲得這些積分的工作，我們預計到 2025 年，我們在哥倫比亞的工廠每加侖汽油將賺取 0.10 美元。此外，隨著 2026 年間接土地利用變化 (ILUC) 的更新，我們預計碳強度評分將降低，哥倫比亞工廠可獲得的稅收抵免將增加到每加侖 0.20 美元，而我們的高峰期和乾磨廠每加侖可獲得 0.10 美元的收入。

As we mentioned last quarter, if our facilities produced a nameplate, this could amount to $18 million in aggregate gross section 45Z tax credits over the two-year period before related monetization costs. Given the 45% credits are transferable tax assets, we have begun the process to forward sell these assets and monetize the credits in 2026 through 2029.

正如我們上個季度提到的，如果我們的工廠生產銘牌，那麼在相關的貨幣化成本之前，兩年內可獲得總計 1800 萬美元的第 45Z 節稅收抵免。鑑於 45% 的稅收抵免是可轉讓的稅收資產，我們已經開始推動這些資產的遠期出售，並在 2026 年至 2029 年期間將這些抵免貨幣化。

Notably, because of the recent section 45Z updates, the intrinsic value of all of our facilities has improved. Our overall CO2 utilizations improved as a result of our acquisition of Kodiak carbonic, now Alto carbonic, in early 2025 and our initial CapEx programs at our Columbia facility.

值得注意的是，由於最近第 45Z 節的更新，我們所有設施的內在價值都提高了。由於我們在 2025 年初收購了 Kodiak carbonic（現為 Alto carbonic），以及我們在哥倫比亞工廠的初步資本支出計劃，我們的整體 CO2 利用率得到了提高。

Our efforts continue to further improve plant reliability and ethanol production rates to create greater synergies, including implementing measures to increase CO2 throughput, as well as adding storage capacity. A number of these ethanol production improvements were completed in October.

我們將繼續努力進一步提高工廠可靠性和乙醇生產率，以創造更大的協同效應，包括實施增加二氧化碳處理量和增加儲存能力的措施。10 月完成了多項乙醇生產改進工程。

Having proven the benefits of owning the system at our Columbia plant, we are now considering options for other liquid CO2 facilities. We believe this is a compelling opportunity as the demand for premium liquid CO2 continues to rise. Particularly in Oregon and neighbouring states like Idaho, generated by significant supply shortages and increased consumption in the region.

我們已經在哥倫比亞工廠證明了擁有該系統的好處，現在我們正在考慮其他液態二氧化碳設施的方案。我們認為這是一個極具吸引力的機會，因為市場對優質液態二氧化碳的需求持續成長。尤其是在俄勒岡州和鄰近的愛達荷州等地，由於該地區供應嚴重短缺和消費增加，造成了這種情況。

This is position producers in the area to leverage strong market pricing and secure sales for liquid CO2. We continue to evaluate all options for our Magic Valley facility in Idaho, including the sale of the asset, CO2 utilization, and 45Z tax credits.

這使得該地區的生產商能夠利用強勁的市場價格，確保液態二氧化碳的銷售。我們將繼續評估我們在愛達荷州魔谷工廠的所有方案，包括出售資產、二氧化碳利用和 45Z 稅收抵免。

Turning to our peak in campus, our ability to react to market signals and shift production enables us to capture the highest value for our products and continues to create opportunities. As a market for fuel ethanol eligible for exports began to grow, we earned the necessary certifications to export our products. This strategy is now paying off. In Q3, the fuel ethanol export market and related pricing was stronger than the domestic market. Accordingly, we produced and sold more gallons in the export market, capturing more of the demand.

回到我們在校園的巔峰時期，我們能夠對市場訊號做出反應並調整生產，這使我們能夠為我們的產品創造最大價值，並不斷創造機會。隨著符合出口條件的燃料乙醇市場開始成長，我們獲得了出口產品的必要認證。現在看來，這個策略正在奏效。第三季度，燃料乙醇出口市場及相關定價強於國內市場。因此，我們在出口市場生產和銷售了更多加侖的產品，從而滿足了更多需求。

Furthermore, in Q3, we leveraged this this advantage by forwarding, forward contracting significant volumes in Q4 and the first half of 2026. Looking ahead, we believe the renewable fuel and export op opportunities will continue to grow.

此外，在第三季度，我們利用這一優勢，提前簽訂了第四季度和 2026 年上半年的大量遠期合約。展望未來，我們相信再生燃料和出口業務機會將持續成長。

The newly signed California Assembly Bill 30, authorizing E-15 fuel cells year-round in California. Unlocks significant demand for domestically produced ethanol. California is the largest market to allow E-15 blends, adding potentially over $600 million additional gallons per year.

加州議會新簽署的第 30 號法案授權 E-15 燃料電池在加州全年使用。釋放對國產乙醇的龐大需求。加州是允許使用 E-15 混合燃料的最大市場，每年可能增加超過 6 億美元的額外收入。

AB 30 expands consumer choice for lower carbon. Cheaper fuels in California during a time when refineries are being idled. And gasoline capacity in California is tightening. With our marketing and distribution services on the west coast, Alto is well positioned to help fill the GAAP.

AB 30 擴大了消費者對低碳產品的選擇範圍。加州煉油廠停產期間，燃油價格更低。加州的汽油供應能力正在趨緊。憑藉我們在西海岸的營銷和分銷服務，Alto 完全有能力幫助滿足 GAAP 的要求。

High-quality alcohol continues to deliver a premium to domestic renewable fuel, and our 2026 contracting season is on pace with 2025. As previously discussed, our carbon capture and storage project at Pekin is delayed due to regulatory and environmental constraints enacted in Illinois, including drilling restrictions specifically impacting our planned site.

高品質酒精繼續為國內再生燃料帶來溢價，我們的 2026 年合約季與 2025 年的進度一致。正如之前討論過的，由於伊利諾伊州頒布的監管和環境限制，包括對我們計劃選址的鑽探限制，我們在皮金的碳捕獲和封存項目被推遲了。

We continue to be flexible about our options to maximize our CO2 utilization as we collaborate with vault around the changes in the law and determine the optimal path forward. Additionally, our long-standing CO2 customers who sell into the food and beverage markets have shown keen interest in expanding CO2 capture capabilities at our Beacon campus.

我們將繼續靈活地選擇各種方案，以最大限度地利用二氧化碳，同時與 Vault 合作應對法律的變化，並確定最佳的前進道路。此外，我們長期向食品和飲料市場銷售二氧化碳的客戶也對我們在 Beacon 園區擴大二氧化碳捕獲能力表現出了濃厚的興趣。

We're also vetting additional low-cost options in our plants to further reduce our carbon intensity scores. Possibilities include reducing our energy consumption, changing the energy source to one with a lower carbon intensity impact, shifting to low carbon corn sourcing, and improving efficiencies and throughput with smaller projects.

我們也在工廠中審查其他低成本方案，以進一步降低碳排放強度。可能的措施包括減少能源消耗、將能源來源改為碳排放強度較低的能源、轉向低碳玉米採購，以及透過小型專案提高效率和產量。

Now I'll turn the call to Rob for our financial review.

現在我將把電話交給羅布，讓他為我們做財務回顧。

Thank you, Bryon.

謝謝你，布萊恩。

I'll review the financial results for Q3-2025 compared to Q3-2024. Net sales were $241 million and $0.11 million lower than the prior year. This reflects fewer gallons sold, $89 million in Q3-2025 compared to $97 million in Q3-2024. As in prior quarters, the change in volume reflects our decisions to idle Magic Valley at the end of 2024 and to rationalize unprofitable business activities in our marketing and distribution segment. Gross profit was $23.5 million an increase of $17.5 million compared to the prior year. The strong crush margin was comparable in both quarters at $0.41 per gallon. As such, our significant improvement reflects the following factors. The year over year change and unrealized non-cash derivatives was a positive of $8 million. Fuel ethanol exports delivered $5.6 million more to gross profit than in Q3 2024.

我將比較分析 2025 年第三季和 2024 年第三季的財務表現。淨銷售額為 2.41 億美元，比前一年減少了 11 萬美元。這反映出銷量減少，2025 年第三季為 8,900 萬美元，而 2024 年第三季為 9,700 萬美元。與前幾季一樣，銷售量的變化反映了我們決定在 2024 年底關閉 Magic Valley，並對我們行銷和分銷部門中無利可圖的業務活動進行合理化。毛利為2350萬美元，比上年增加1750萬美元。兩個季度的壓榨利潤率都相當可觀，為每加侖 0.41 美元。因此，我們的顯著進步反映了以下因素。與上年同期相比，未實現的非現金衍生性商品為正800萬美元。燃料乙醇出口帶來的毛利比 2024 年第三季增加了 560 萬美元。

The stronger market demand and price offset the $2.9 million of lower premiums for our high-quality alcohol this quarter. Our essential ingredients return improved to 53% from 43%, reflecting a strong rebound in corn oil pricing, a shift in our production mix to higher value proteins, and the idling of our magic Valley facility. These factors contributed approximately $3.6 million to gross profit.

本季我們高品質酒類產品溢價降低 290 萬美元，但市場需求和價格的走強抵銷了這一損失。我們的基本原料回報率從 43% 提高到 53%，這反映出玉米油價格的強勁反彈、我們的生產結構向更高價值的蛋白質轉變以及我們魔谷工廠的閒置。這些因素為毛利貢獻了約 360 萬美元。

Also carbonic contributed nearly $2 million this quarter, bringing our Western production segment's gross profit to $1.5 million up $3.8 million over Q3 2024. Notably, for the nine months ended September 30th, our Western production segment's gross profit increased to $2.9 million up $17.5 million compared to the first nine months of 2024.

此外，碳酸礦本季貢獻了近 200 萬美元，使我們西部生產部門的毛利達到 150 萬美元，比 2024 年第三季增加了 380 萬美元。值得注意的是，截至 9 月 30 日的九個月內，我們西部生產部門的毛利增加至 290 萬美元，比 2024 年前九個月增加了 1,750 萬美元。

During the 3rd quarter, the dock outage resulted in $800,000 in business interruption, additional logistical costs, and preliminary property repairs. We continue to work with our insurance carrier on the level of coverage and timing of reimbursements. To provide more color on our peak and loading dock, which was damaged in April by rapidly rising river levels, we have temporarily remedied the situation and are working with our insurance carrier to make the needed permanent repairs.

第三季度，碼頭停駛導致 80 萬美元的業務中斷、額外的物流成本和初步的財產維修費用。我們將繼續與保險公司協商保險範圍和賠償時間。為了為四月因河水水位迅速上漲而受損的山頂和裝卸碼頭增添更多色彩，我們暫時補救了這種情況，並正在與我們的保險公司合作進行必要的永久性維修。

To minimize further business interruption, we will rely on local third-party service providers to move our essential ingredients. To create redundancy, we will build a second alcohol load out dock to be used when we repair the original dock. Once the original dock is restored to operations, the second dock will effectively remove a frequent bottleneck by improving capacity, accelerating loadout times, and lowering costs. We are in the process of finalizing designs, obtaining permits, and contracting work crews to begin the repairs and new dock installation this coming spring.

為了最大限度地減少業務中斷，我們將依靠當地的第三方服務提供者來運輸我們的重要原料。為了確保冗餘備份，我們將建造第二個酒精裝卸碼頭，以便在維修原碼頭時使用。一旦原碼頭恢復運營，第二個碼頭將透過提高產能、加快裝卸速度和降低成本，有效消除經常出現的瓶頸。我們正在敲定設計方案、取得許可證，並聘請施工隊伍，以便在今年春天開始維修和安裝新的碼頭。

For Q3 2025, SG&A expenses improved $1 million to $6.5 million. This is attributable to right sizing our SG&A staffing levels and $700,000 less in costs related to our eagle alcohol acquisition, the last of which we recorded in Q4 of 2024.

2025 年第三季度，銷售、一般及行政費用減少了 100 萬美元，降至 650 萬美元。這主要歸功於我們合理調整了銷售、一般及行政人員規模，以及與收購 Eagle Alcohol 相關的成本減少了 70 萬美元，最後一筆款項已計入 2024 年第四季。

Interest expense increased $900,000 reflecting higher average outstanding loan balances and interest rates. Our consolidated net income was $13.9 million or $0.19 per share for Q3 2025, improving. $1.6 million compared to Q3 2024. Adjusted EBITDA improved $9.2 million to $21.4 million in Q3 2025, reflecting the above-mentioned improvements in gross profit and SG&A. Year-to-date, adjusted EBITDA increased to $16.7 million up $17.5 million over the first nine months of 2024.

利息支出增加了 90 萬美元，反映出平均未償貸款餘額和利率的上升。2025年第三季度，我們的綜合淨收入為1,390萬美元，即每股0.19美元，比2024年第三季增加了160萬美元。2025 年第三季調整後 EBITDA 增加 920 萬美元，達到 2,140 萬美元，反映了上述毛利和銷售、一般及行政費用的改善。截至目前，調整後 EBITDA 增至 1,670 萬美元，比 2024 年前九個月增加了 1,750 萬美元。

As of September 30, 2025, our cash balance was $32.5 million. During the third quarter of 2025, we generated $22.8 million in cash flow from operations. We used $1.6 million for CapEx and $18.5 million to repay debt on our asset-based line of credit. As such, our borrowing availability on our operating line of credit increased to $20 million. Availability under our term loan facility remained at $65 million and total borrowing availability increased to $85 million as of September 30, 2025. As we manage liquidity and continue focusing on our priorities, CapEx has been lower than historical averages. Year-to-date, we recorded $24 million in repairs and maintenance expense in line with our estimate of $32 million for the full year.

截至 2025 年 9 月 30 日，我們的現金餘額為 3,250 萬美元。2025年第三季度，我們從經營活動中產生了2,280萬美元的現金流。我們用 160 萬美元用於資本支出，用 1850 萬美元償還了我們以資產為基礎的信貸額度的債務。因此，我們的營運信貸額度可用借款額度增加到 2,000 萬美元。截至 2025 年 9 月 30 日，我們的定期貸款額度仍為 6,500 萬美元，總借款額度增加至 8,500 萬美元。在管理流動性並繼續專注於我們的優先事項的同時，資本支出低於歷史平均水平。今年迄今為止，我們記錄的維修和維護費用為 2,400 萬美元，與我們對全年 3,200 萬美元的估計相符。

In summary, our entry into the European renewable fuel markets, our CO2 facility acquisition, our prior and ongoing cost reduction initiatives, and our efforts to address underperforming assets have collectively strengthened our financial position.

總而言之，我們進入歐洲再生燃料市場、收購二氧化碳設施、先前和正在進行的成本削減計劃以及我們為解決表現不佳的資產所做的努力，共同增強了我們的財務狀況。

Now, I'll turn the call back to Bryon.

現在，我把電話轉回布萊恩。

Thanks, Rob.

謝謝你，羅伯。

We remain focused on improving all aspects of our business, although we cannot control the ethanol crush margin. Better operations will enable us to capitalize in good margin environments and to stabilize when margins are depressed. Our guiding philosophy is to increase asset values by prioritizing strategies under our direct control.

儘管我們無法控制乙醇壓榨利潤率，但我們仍將專注於改善業務的各個方面。更好的營運將使我們能夠在利潤良好的環境中獲利，並在利潤低迷時保持穩定。我們的指導理念是透過優先實施我們直接控制下的策略來提高資產價值。

We aim for both achieving short-term gains and positioning Alto for future growth. We continue to scale our operations to be responsive to market changes. Our recent acquisition and forward thinking in projects are delivering results. Our initiatives to boost operational efficiency and throughput, target growth in higher return market segments, and implement cost savings have improved our financial performance in 2025 and have positioned us well for the future.

我們的目標是既實現短期收益，也為 Alto 的未來發展奠定基礎。我們將持續擴大營運規模，以因應市場變化。我們近期的收購和前瞻性的專案規劃正在發揮成效。我們為提高營運效率和產量、瞄準高回報市場領域實現成長以及實施成本節約而採取的舉措，改善了我們在 2025 年的財務業績，並為我們未來的發展奠定了良好的基礎。

Our encouraging results demonstrate our success in the ongoing execution of projects funded within our means with short-term paybacks and long-term benefits. As discussed, we are especially focused on lowering our carbon intensity and capturing section 45Z tax benefits and increasing our CO2 utilization. Our goals are to maximize the value of our products and deliver profitability to our shareholders. We believe this quarter shows our progress and we strive to continue to improve.

我們取得的令人鼓舞的成果表明，我們在持續執行我們能力範圍內資助的項目方面取得了成功，這些項目既能帶來短期回報，又能帶來長期收益。如同先前討論過的，我們尤其關注降低碳排放強度、取得第 45Z 條款稅收優惠以及提高二氧化碳利用率。我們的目標是最大限度地提高產品價值，並為股東帶來獲利。我們相信本季的數據展現了我們的進步，我們將繼續努力提升。

With that operator we're ready to begin Q&A with cell side analyst.

有了這位操作員，我們就可以開始與細胞側分析師進行問答環節了。

Thank you.

謝謝。

We will now begin the question-and-answer session. To ask a question, you may press then 1 on your touch tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press 2. At this time we will pause momentarily to assemble our roster.

現在開始問答環節。若要提問，您可以按按鍵式電話上的 1。如果您正在使用免持電話，請在按鍵前拿起聽筒。如果您的問題已得到解答，並且您想撤回您的問題，請按 2。此時我們將稍作停頓，整理一下人員名單。

The first question comes from Eric Stein with Craig-Hallum Capital Group. Please go ahead.

第一個問題來自 Craig-Hallum Capital Group 的 Eric Stein。請繼續。

Hi Bryon Bryon. Hi Rob.

嗨，布萊恩，布萊恩。嗨，羅布。

Hi Eric.

嗨，艾瑞克。

So I guess maybe where I'd like to start some of the initiatives you're talking about to increase the 45Z capture you did mention that you are looking at some things that are you know relatively low from an investment perspective, whether it's energy source, amount of energy consumed, those sorts of things, but I mean any thoughts on how close you are on those, what the actual investment might be. And you know what kind of impact that could have in terms of upside to some of that 45Z capture.

所以我想，也許我想從您提到的提高 45Z 捕獲率的一些舉措入手。您提到您正在研究一些投資成本相對較低的東西，例如能源來源、能源消耗等等。我的意思是，您覺得您離目標還有多遠？實際投資可能是多少？你知道這可能會對 45Z 捕獲量帶來怎樣的提升。

Yeah, great question, Eric. I think we've tried to, as you've noted in our prepared remarks, tried to address the items that we know are relatively sure things, right? Things that aren't going to require additional lifting. Some of the items that we listed certainly will have an impact, but until we can be. Sure, about them I think we're somewhat reluctant to want to share that information. That said, we see a number of items both.

是的，問得好，艾瑞克。正如您在我們準備好的演講稿中所指出的，我認為我們已經盡力處理那些我們知道相對確定的事情，對吧？不需要額外搬運的物品。我們列出的一些項目肯定會產生影響，但在此之前，我們無法做到這一點。當然，關於他們，我覺得我們有點不願意分享這些資訊。也就是說，我們看到很多東西都同時存在。

Relatively advanced and others that are still in in development, so it kind of spreads across the spectrum, but that certainly it is.

有些技術相對先進，有些仍在開發中，所以它涵蓋了整個範圍，但那肯定是的。

Given the impact and the benefits associated with it, there are certainly compelling reasons to to make those changes as quickly as possible.

鑑於其影響和相關益處，我們當然有充分的理由盡快做出這些改變。

Rob, anything you want to add to that?

羅布，你還有什麼要補充的嗎？

Yeah, I'm sure, just for an example, another option that we're currently assessing is the potential of low carbon corn sourcing, and we're also planning to take advantage of an opportunity to acquire renewable energy credits which allow us to knock our carbon score down, particularly at our dry mill to the next level to capture more of those 45 credits.

是的，我確信，舉個例子，我們目前正在評估的另一個選擇是低碳玉米採購的潛力，我們還計劃利用機會獲取可再生能源信用額度，這將使我們能夠降低碳排放評分，尤其是在我們的干磨廠，以達到更高的水平，從而獲得更多的45個信用額度。

Got it and you know when we think about Magic Valley, I mean, are there things that can be done that would mean, maximizing a 45Z capture that potentially makes you rethink that, bring that on sooner, or how should we think about that? I mean, it's, I know it's been cold idled and it would take some time to come back, but I mean is that something we should expect that it could come back perhaps in 2026 or or is it kind of more of a long-term thing now?

明白了，你知道，當我們想到魔谷的時候，我的意思是，有沒有什麼辦法可以最大限度地利用 45Z 的資源，從而讓你重新考慮一下，提前開發，或者我們應該怎麼考慮這個問題？我的意思是，我知道它已經冷啟動了一段時間，需要一些時間才能恢復，但我的意思是，我們應該期待它或許能在 2026 年恢復嗎？還是說這更像是長期問題？

Yeah, I'll take that one.

好的，我選那個。

It's a good question. As we mentioned before, we are following through with our, Western asset, sale campaign, just to see that through to make sure we make an informed decision of what the highest and best use is for that asset. But a lot's changed over the last year, with the clarified guidance on the 45Z which, Magic Valley would qualify for the same level of credits as Columbia. That's definitely, impacted positively the intrinsic value of that asset as well as our other plants. So that is one option that we will assess, particularly when you consider that, the demand for CO2, particularly in the west coast, has been, getting better and better. Our Magic Valley plant has the ability. To produce even more and capture more CO2 than our Columbia plant. So there is definitely a path forward of resuming operations. Clearly that wouldn't happen overnight and we would make sure that, if we were to pursue that path that we would have a long-term, option in front of us that would make sense. So more to come on that in future quarters.

這是個好問題。正如我們之前提到的，我們正在繼續推動我們的西部資產出售活動，以確保我們能夠就該資產的最佳用途做出明智的決定。但過去一年來情況發生了很大變化，45Z 的指導方針也更加明確，這意味著 Magic Valley 將有資格獲得與 Columbia 相同的學分。這無疑對該資產以及我們其他工廠的內在價值產生了積極影響。所以這是我們將要評估的一個選項，特別是考慮到二氧化碳的需求，尤其是在西海岸，一直在不斷增長。我們位於魔谷的工廠具備這種能力。為了比我們在哥倫比亞的工廠生產更多能源並捕獲更多二氧化碳。因此，恢復營運肯定是有途徑的。顯然，這不會在一夜之間發生，我們會確保，如果我們要走這條路，我們面前會有一個長遠的、合理的選擇。所以，未來幾季會有更多相關消息公佈。

Yeah, Eric is probably worth noting on top of that. Eric, one other thing on that is you'll soul recognize as well that. The fundamentals around the Magic Valley facility were not related necessarily to all the improvements that we made. Indeed, we, those are still beneficial, but what we saw was with the influx of.

是的，埃里克可能也值得一提。艾瑞克，還有一點，你也會明白的。Magic Valley 設施的基本情況並不一定與我們所做的所有改進有關。的確，這些仍然是有益的，但我們看到的是湧入的。

Of soy crush and the glut of oil coming in for CO2, I'm sorry for for corn oil equivalents or for renewable diesel, that you really saw a tightening in that in that space, truly an oversupply and under demand. So I think some of those dynamics have changed. So that's something that we would also incorporate into our analysis, but I think that the fundamentals still are important and.

就大豆壓榨和過剩的石油（用於二氧化碳排放）而言，我很遺憾玉米油當量或可再生柴油，你確實看到該領域的供應趨緊，真正出現了供過於求的情況。所以我認為其中一些動態已經改變了。所以這也是我們會納入分析的內容，但我認為基本面仍然很重要。

It certainly would not be our intention to restart that facility unless we, as Rob mentioned, could commit to a long-term sustainable operation, particularly given, the important relationships that we have in customers.

如羅布所言，除非我們能夠承諾長期可持續運營，否則我們絕不打算重啟該工廠，尤其考慮到我們與客戶之間重要的關係。

Right, understood on that.

好的，明白了。

Maybe last one for me just on you mentioned that you'd locked in some export sales, just curious any color there rather be fourth quarter or you know how into 2026.

也許這是我最後一個問題了，因為你提到你已經鎖定了一些出口銷售，我只是好奇有沒有顏色，最好是第四季或你知道的，到 2026 年。

But yeah, so that's largely for export volume and yeah that's. It's the good news is that it's a good solid spread over. Over a crush, and so it made a lot of sense to go ahead and lock that in. And lock that volume and think of it somewhat similar to what we do when we fix volume for high-quality products. It gives us an opportunity to be able to stabilize and provide a foundation, particularly during, what is normally a seasonal low where you have an oversupply of ethanol and under demand. For the product itself.

但是，這主要是指出口量，是的。好消息是，它覆蓋率很廣。因為喜歡一個人，所以很自然地就決定要跟他訂婚了。鎖定該產量，可以把它想像成我們為高品質產品設定產量時所做的那樣。這讓我們有機會穩定下來並奠定基礎，尤其是在通常的季節性低谷時期，此時乙醇供應過剩而需求不足。就產品本身而言。

Yes, I'm just trying to get an under understanding or more color on like how significant that could be or you know whether it's a percentage of volume or that sort of thing, not necessarily you know any commentary on the on the spread Itself.

是的，我只是想了解一下，或者更詳細地了解這有多重要，或者它是否佔成交量的百分比之類的，而不是對價差本身做任何評論。

Yeah, it's a great question. It's not something that we normally would release, much like we wouldn't release the information on, details around our high-quality, yeah. It's not an advantage to be sharing that information.

是的，這是一個很好的問題。這並非我們通常會發布的內容，就像我們不會發布有關我們高品質產品的細節資訊一樣。分享這些資訊並沒有什麼好處。

Yes, understood. All right, thank you.

是的，明白了。好的，謝謝。

Thanks.

謝謝。

Again, if you have a question, please press star then one. The next question comes from Sameer Joshi.

再次提醒，如果您有任何疑問，請按星號鍵，然後按數字鍵1。下一個問題來自薩米爾喬希。

With HC Wainwright. Please go ahead.

與 HC Wainwright 合作。請繼續。

Hey, good afternoon, Bryon, how are you?

嘿，下午好，布萊恩，你好嗎？

Oh, Nice.

哦，不錯。

Just a few, further digging into, the, European exports, are these, only high-quality, products that are being sold, or, and what is the. Potential can like can you sell all of your production into Europe or is there some limitation?

再深入探討歐洲出口的情況，這些是否只有高品質的產品在銷售，以及還有哪些產品在銷售？潛在問題在於，你們能否將所有產品銷往歐洲，還是有一些限制？

No, it's, well, it's a combination of things as are clearly we also contract for high-quality product into that as well as, a number of our essential ingredients that go over to Europe, but the one that's specifically dynamic is around. Renewable fuel into that space.

不，嗯，這是多種因素共同作用的結果，顯然我們也採購高品質的產品，此外，我們的一些基本原料也出口到歐洲，但其中最活躍的因素是…將再生燃料引入該領域。

And then as you look at that product going into your versus being sold domestically that there's a beneficial premium associated with that, we're able to to lock in. And be able to if you will put that in the bank does it work.

然後，當你比較該產品進口到國外和在國內銷售時，你會發現進口產品會獲得一定的溢價，我們可以鎖定這部分溢價。如果你把錢存入銀行，它真的有效嗎？

Right,

正確的，

Yeah, I'll just add, we entered that market in Q4 of 2024 and then we've been ramping up our volume and we're able to take advantage of this because of certain certifications that meet the compliance requirements over in Europe, but not all of our production qualifies under those certifications, so we could pivot to selling 100% of our renewable fuel into Europe, but we continue to to. Progress and max out the volume that we can sell.

是的，我補充一點，我們在 2024 年第四季度進入該市場，然後一直在提高產量，我們能夠利用這一點，是因為我們獲得了一些符合歐洲合規要求的認證，但並非我們所有的產品都符合這些認證，所以我們可以轉向向歐洲銷售 100% 的可再生燃料，但我們繼續這樣做。取得進展並最大限度地提高我們的銷售量。

Understood, yeah, thanks for that color because part of the reason, to ask that question was, irrespective of, other dynamics, does it make sense to, restart Magic Valley, just to support the European exports, sort of that that is where I was trying to get to.

明白了，謝謝你的解釋，因為提出這個問題的部分原因是，撇開其他因素不談，重啟 Magic Valley 是否有意義，僅僅是為了支持歐洲出口，這就是我想表達的意思。

Yeah, it's a great question. I don't know that that product would qualify nor is it really eastern facing, right? That's a long haul from the mountain west. It may actually be more beneficial to have that product sold into other, either, in local markets, and that's historically where that product was sold. It was sold into, the surrounding major metropolitan areas like Salt Lake City and Boise, Idaho, where your best net backs were. That said, it is also a very low carbon intensity. Ethanol product.

是的，這是一個很好的問題。我不知道那款產品是否符合條件，而且它也不是真正朝東的，對吧？從西部山區過來路途遙遠。實際上，將該產品銷往其他地方，例如當地市場，可能更有利，而歷史上該產品也是在這些地方銷售的。它被銷往週邊主要大都市區，如鹽湖城和愛達荷州博伊西，那裡有你最好的後衛。也就是說，它的碳排放強度也很低。乙醇產品。

So, it actually would make, I think the next second-best opportunity would be selling it to the Oregon or the California markets, particularly if California's with California, going to E15, there may be a significant opportunity to be able to sell that as premium and capture that carbon intensity value. So I think there's a, there's a number of items that probably stand. In greater contrast and benefit locally than it would to to put that product, on a barge.

所以，我認為次佳機會是將其出售給俄勒岡州或加州市場，特別是如果加州也採用 E15 汽油，那麼可能會有很大的機會將其作為優質汽油出售，並獲得相應的碳排放強度價值。所以我認為，有很多東西可能是站得住腳的。與將產品裝上駁船相比，這樣做對當地更有利，也更有優勢。

Makes sense. Thanks for that. On the dock, that is the new dock that is opening in being our plan for spring 2026. I think we may have talked about this, but is that, cost, going to be paid for by the insurance or, because it is a new dock, it will be. It will be paid by you, and the fixing of the old doc will be done by the insurance money.

有道理。謝謝。碼頭上，那是我們計劃於 2026 年春季開放的新碼頭。我想我們可能討論過這個問題，但是這筆費用是由保險公司支付，還是因為是新建的碼頭，所以需要自己承擔？費用將由你支付，舊文件的修復將由保險金支付。

Yeah, no that's a good question. We're still working with our insurance carrier on the level of coverage and how much of that aspect will be covered under our current policy, but we are confident that a good portion of it will, because the reason that we need to build in that or build that second dot. First is to mitigate the business interruption, which is, our highest priority when it comes to our customers so that's necessary to mitigate the business interruption from a financial perspective as well. We're getting close to, finalizing the claims process and we'll have, we expect to have more to comment on in Q4.

嗯，這確實是個好問題。我們仍在與保險公司協商承保範圍以及現有保單能夠涵蓋的程度，但我們相信很大一部分會得到承保，因為我們需要把這部分或第二部分也納入考慮範圍。首先是減輕業務中斷的影響，這是我們對客戶而言最重要的事，因此從財務角度來看，減輕業務中斷的影響也是必要的。我們即將完成索賠流程，預計在第四季度會有更多消息可以公佈。

Got it. Thanks for that. Last one for me, SGND has been, sort of nicely controlled. Should we expect, the current levels of SG&A going forward.

知道了。謝謝。對我來說，最後一個SGND一直控制得很好。我們是否應該預期，目前的銷售、一般及行政費用水準將在未來維持不變。

Yes, I would say that.

是的，我會這麼說。

The cost savings initiatives that we've taken year-to-date were not temporary in nature, so we expect the benefits of those decisions and those efforts to continue forward.

今年迄今為止我們採取的成本節約措施並非暫時性的，因此我們預計這些決策和努力帶來的好處將持續下去。

Thanks, for taking my questions and, congrats on a great quarter.

謝謝您回答我的問題，也恭喜您本季取得了優異的成績。

Thank you.

謝謝。

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。我謹將會議交還給拜倫·麥格雷戈，請他作總結發言。

Thanks, Chloe. Thanks again for joining us today. As always, we appreciate your ongoing feedback and support. Have a great day.

謝謝你，克洛伊。再次感謝您今天收看我們的節目。一如既往，我們感謝您一直以來的回饋與支持。祝你有美好的一天。

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

會議到此結束。感謝各位參加今天的報告會。您現在可以斷開連線了。