REX American Resources Corp (REX) 2024 Q1 法說會逐字稿

Good morning, and welcome to the REX American Resources, fiscal first quarter 2024 conference call.

早安，歡迎參加 REX American Resources 2024 財年第一季電話會議。

As a reminder, today's call is being recorded.

提醒一下，今天的通話正在錄音。

(Operator Instructions) I would now like to turn the call over to Mr. Doug Bruggeman, Chief Financial Officer of REX American.

（操作員指示）我現在想將電話轉給 REX American 財務長 Doug Bruggeman 先生。

Please go ahead.

請繼續。

Good morning, and thank you for joining REX American Resources, Q1 '2024 for conference call.

早安，感謝您參加 REX American Resources 2024 年第一季電話會議。

We'll get to our presentation and comments momentarily as well as your questions.

我們將立即進行演示和評論以及您的問題。

But first, I will review the Safe Harbor disclosure.

但首先，我將回顧安全港披露。

In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995.

除了歷史事實或當前狀況的陳述外，今天的電話會議還包含前瞻性陳述，這些陳述涉及 1995 年《私人證券訴訟改革法案》含義內的風險和不確定性。

Such forward-looking statements reflect the company's current expectations and beliefs, but are not guarantees of future performance.

此類前瞻性陳述反映了公司目前的預期和信念，但並非對未來績效的保證。

As such, actual results may vary materially from expectations.

因此，實際結果可能與預期有重大差異。

The risks and uncertainties associated with the forward-looking statements are described in today's news announcement and in the company's filings with the Securities and Exchange Commission, including the company's reports on Form 10-K and 10-Q.

與前瞻性陳述相關的風險和不確定性在今天的新聞公告和公司向美國證券交易委員會提交的文件（包括公司 10-K 和 10-Q 表格的報告）中進行了描述。

REX American Resources, assumes no obligation to publicly update or revise any forward-looking statements.

REX American Resources 不承擔公開更新或修改任何前瞻性陳述的義務。

I'd now like to turn the call over to our Executive Chairman, Stuart Rose.

我現在想將電話轉給我們的執行主席 Stuart Rose。

Good morning, and thank you again to everyone for joining us.

早安，再次感謝大家加入我們。

First quarter saw a continuation of the strong results of REX American returned over its history.

第一季度，REX American 延續了歷史上的強勁業績。

Once again, our core business of the Ethanol and co-product production was strong with 74.5 million gallons of ethanol sold an increase of approximately 4% of our first quarter of 2023.

我們的乙醇和副產品生產核心業務再次表現強勁，乙醇銷售量為 7,450 萬加侖，比 2023 年第一季成長約 4%。

Instruction of the One Earth Energy carbon capture facility continue to pace our Gibson City, Illinois location.

One Earth Energy 碳捕獲設施的指導繼續在我們伊利諾伊州吉布森市的工廠進行。

We are also on track to complete the ethanol production capacity expansion at the One Earth Energy facility with the initial plan to run at 175 million gallons per year and then apply for an EPA permit to increase production 200 million gallons per year.

我們還有望完成 One Earth Energy 工廠的乙醇產能擴張，初步計劃每年生產 1.75 億加侖，然後申請 EPA 許可證，將產量每年增加 2 億加侖。

To match our operational achievements, our financial results were among the best in our history with first quarter 2024, the second most profitable first quarter in the company's history from a net income per share perspective.

為了與我們的營運成就相匹配，我們的財務表現名列歷史最佳，2024 年第一季是公司歷史上每股淨利潤第二高的第一季。

This was made possible due to lower natural gas and corn input prices.

這是由於天然氣和玉米投入價格較低而成為可能。

They are [led] and the excellent execution of our team despite a weaker pricing environment for both ethanol and co-products.

儘管乙醇和副產品的定價環境較弱，但他們[領導]和我們團隊的出色執行力。

The balance of the year, we have three goals.

今年剩下的時間裡，我們有三個目標。

First, continue our streak of profitable operation, which is now reached 15 quarters in a row.

首先，繼續保持盈利運營，目前已連續 15 個季度實現盈利。

Second, complete the construction phase of our One Earth Energy Carbon capture and compression facility.

其次，完成「同一個地球能源」碳捕獲和壓縮設施的建造階段。

And lastly, to complete the capacity expansion of our One Earth Energy ethanol production facility to 175 million gallons per year, move towards the plan.

最後，為了完成 One Earth Energy 乙醇生產設施的產能擴張至每年 1.75 億加侖，請朝著該計畫邁進。

Further permitting of the facility to 200 million gallons.

進一步允許該設施生產 2 億加侖。

Focusing on these three core priorities, while remaining nimble and adjusting as appropriate to market and business conditions, we'll keep us in a good position, both now and in the future.

專注於這三個核心優先事項，同時保持靈活性並根據市場和業務條件進行適當調整，我們將在現在和未來保持良好的地位。

I'd now like to turn things over to our CEO, Zafar Rizvi, to give further update on our One Earth project.

現在我想將此事轉交給我們的執行長紮法爾·裡茲維 (Zafar Rizvi)，以進一步介紹我們的「同一個地球」計畫。

Thank you, Stuart.

謝謝你，斯圖爾特。

As Stuart said, our carbon capture and sequestration project in Gibson City, Illinois is progressing, with the construction on the capture and compression facility is still on track.

正如史都華所說，我們在伊利諾伊州吉布森市的碳捕獲和封存項目正在取得進展，捕獲和壓縮設施的建設仍在按計劃進行。

You can see updated pictures of the progress at this facility in the first quarter investor presentation, which was posted to our website this morning.

您可以在第一季投資者介紹中看到該設施進展的最新圖片，該介紹已於今天早上發佈到我們的網站上。

We continue to expect that construction on the carbon capture and compression facility will be completed in July.

我們仍然預計碳捕獲和壓縮設施的建設將於七月完成。

At that point, the facility will be ready for testing, however, given extended calendar for electric utility connections, Across the country and which also impact Central Illinois we have been made aware that our connection to the facility is not likely until the fourth quarter of 2024, at the earliest.

屆時，該設施將準備好進行測試，但是，考慮到全國範圍內的電力公司連接的日曆延長，這也影響了伊利諾伊州中部，我們已經意識到，我們與該設施的連接不太可能要到第第四季最快2024年。

We will provide updates on this as appropriate.

我們將酌情提供相關更新。

At the same time, we are seeing activity on the approval and permitting front of the pipeline and sequestration portion of the project.

同時，我們看到該項目管道和封存部分的審批和許可方面的活動。

We plan to reply by week and to several questions we received in April from the EPA regarding our Class VI, well permit application.

我們計劃每週回覆 4 月從 EPA 收到的有關我們 VI 級油井許可證申請的幾個問題。

And we continue to anticipate approval of the permit by Q1 of next year.

我們繼續預計該許可證將在明年第一季獲得批准。

We have lately been encouraged by the progress of the EPA on other Class VI well applications, but the first sequestration well, we are also pleased to report that we have now sequest the easement for enough of the subsurface area to allow us the capacity to sequester all of our carbon emissions from the one at energy plant for the next 15 years at a minimum.

最近，我們對EPA 在其他VI 類井應用方面取得的進展感到鼓舞，但對於第一口封存井，我們也很高興地報告，我們現在已經封存了足夠的地下區域的地役權，使我們有能力封存未來 15 年，我們所有的碳排放量至少來自能源工廠。

Also, as I as an update to the agreement we discussed on our last call, we have now sequest from our former neighbors 100% of the land necessary for the growth of the proposed carbon delivery pipeline, which will serve injection well, number one and two, this is an incredible 70% achievement as it means we are able to avoid the use of eminent domain for control of the pipeline door.

此外，作為我們上次電話會議中討論的協議的更新，我們現在已經從我們的前鄰居那裡徵用了100% 的土地，用於發展擬議的碳輸送管道，該管道將服務於注入井，第一和第二，這是一個令人難以置信的70%的成就，因為這意味著我們能夠避免使用徵用權來控制管道門。

This was always our preferred outcome and one which we are happy to have achieved through discussions with our neighbors to the Illinois Commerce Commission.

這始終是我們首選的結果，我們很高興透過與伊利諾伊州商業委員會的鄰居進行討論而實現這一結果。

Hearing on the pipeline are proceeding.

有關管道的聽證會正在進行中。

The expansion of our One Earth Energy ethanol facility to 175 million gallons per year of production is progressing well, construction is ongoing, and we anticipate completion of the initial expansion in the fourth quarter.

我們的 One Earth Energy 乙醇工廠擴建至年產量 1.75 億加侖進展順利，施工正在進行中，我們預計在第四季度完成初步擴建。

After the testing and permitting, with an expect to begin to plan for the permitting of the one-off facility to allow it to produce 200 million gallons per year.

在測試和獲得許可後，預計將開始規劃一次性設施的許可，使其每年生產 2 億加侖。

This additional permitting is the only step necessitate to allow for the expanded capacity as no additional construction, our capital spending is expected.

這項額外的許可是擴大產能所需的唯一步驟，因為我們預計不會進行額外的建設，資本支出也是如此。

As of quarter end, we have invested approximately $78.1 million into the One Earth carbon capture project and associated ethanol production capacity expansion.

截至季末，我們已向 One Earth 碳捕獲計畫和相關乙醇產能擴張投資約 7,810 萬美元。

This is compared to a total budget amount of $165 million to $175 million for both the CCS project and ethanol production expansion at Gibson City.

相比之下，吉布森市 CCS 項目和乙醇生產擴張的總預算金額為 1.65 億至 1.75 億美元。

I would now like to hand the call to our CFO, Doug Bruggeman, to discuss our operational and financial results.

我現在想將電話轉給我們的財務長 Doug Bruggeman，討論我們的營運和財務表現。

Thanks Zafar.

謝謝紮法爾。

I'll begin with our operational results.

我將從我們的營運結果開始。

REX ethanol sales volume during the first quarter of 2024 were 74.5 million gallons, an increase of approximately 4% over first quarter 2023 sales volumes of 71.5 million gallons.

2024 年第一季 REX 乙醇銷量為 7,450 萬加侖，比 2023 年第一季 7,150 萬加侖的銷量增長約 4%。

Average selling price for our consolidated ethanol volumes was approximately $1.60 per gallon for the first quarter.

第一季我們綜合乙醇產量的平均售價約為每加侖 1.60 美元。

Dry distiller grain sales volume during the first quarter of 2024 totaled 163,500 tons, a slight increase over first quarter 2023 volumes.

2024年第一季乾酒糟銷售量總計16.35萬噸，較2023年第一季略有增加。

Average selling price for DG was approximately $187.64 per ton.

DG 的平均售價約為每噸 187.64 美元。

For the first quarter, modified distillers grain sales volumes were 14,500 tons in the first quarter 2024, compared with approximately 12,000 tons in the first quarter of 2023.

就第一季而言，2024年第一季改良酒糟銷售量為14,500噸，而2023年第一季約為12,000噸。

Average selling price for modified distiller grain was approximately $82.52 per ton for the first quarter.

第一季改性酒糟的平均售價約為每噸 82.52 美元。

Corn oil sales volume in the first quarter of 2024 approximately 21 million pounds, compared to 20.6 million pounds sold in the first quarter of 2023.

2024 年第一季玉米油銷量約為 2,100 萬磅，而 2023 年第一季銷量為 2,060 萬磅。

The average selling price for REX's corn oil product was approximately $0.47 per pound for the first quarter of 2024.

2024 年第一季度，REX 玉米油產品的平均售價約為每磅 0.47 美元。

Looking forward to the second quarter, it is important to note that we expect impacts to both maintenance expense as well as our sales of our products given regular planned maintenance at our consolidated new-gen and One Earth facilities.

展望第二季度，值得注意的是，鑑於我們綜合的新一代和 One Earth 設施的定期計劃維護，我們預計維護費用以及我們產品的銷售都會受到影響。

Gross profit for the first quarter of 2024 was $14.5 million versus gross profit of approximately $10.2 million for the first quarter of 2023.

2024 年第一季的毛利為 1,450 萬美元，而 2023 年第一季的毛利約為 1,020 萬美元。

The 42% increase in gross profit was achieved despite lower average selling prices for all our products, which were offset by lower corn and natural gas input prices.

儘管我們所有產品的平均售價較低，但毛利仍實現了 42% 的成長，但玉米和天然氣投入價格的下降抵消了這一影響。

Our selling, general administrative expenses increased to $6.1 million for the first quarter of 2024 versus $5.8 million in the first quarter of 2023.

2024 年第一季我們的銷售和一般管理費用增至 610 萬美元，而 2023 年第一季為 580 萬美元。

The increase was primarily due to higher incentive compensation related to the company's improved performance.

這一增長主要是由於與公司業績改善相關的激勵薪酬增加。

Interest and other income totaled $5.9 million in the first quarter of 2024 compared with approximately $2.8 million for the first quarter of 2023.

2024 年第一季的利息和其他收入總計 590 萬美元，而 2023 年第一季約為 280 萬美元。

This reflects better earnings on our cash and short-term investments and $1.2 million of Patronage income at our Nugent facility.

這反映出我們的現金和短期投資帶來了更好的收益，以及我們紐金特工廠 120 萬美元的贊助收入。

Income before taxes, noncontrolling interest for the first quarter of 2024 was approximately $16 million, an increase of more than 83% over the first quarter of 2023.

2024 年第一季非控制權益稅前營收約 1,600 萬美元，較 2023 年第一季成長超過 83%。

As Stuart mentioned at the beginning of the call, first quarter 2024 was the second best first quarter from a net income perspective in our company's history.

正如 Stuart 在電話會議開始時提到的那樣，從淨利潤角度來看，2024 年第一季是我們公司歷史上第二好的第一季。

Net income attributable to REX shareholders for the first quarter was $10.2 million compared to $5.2 million in the first quarter of 2023.

第一季歸屬於 REX 股東的淨利潤為 1,020 萬美元，而 2023 年第一季為 520 萬美元。

On a per share diluted basis for the first quarter of 2024, this amounts to $0.58 per share of net income compared to $0.30 per share in first quarter 2023.

以 2024 年第一季每股攤薄計算，每股淨利為 0.58 美元，而 2023 年第一季為每股 0.30 美元。

We ended the first quarter with total cash, cash equivalents and short-term investments of $351.8 million compared with $378.7 million as of January 31, 2024.

截至第一季末，我們的現金、現金等價物及短期投資總額為 3.518 億美元，截至 2024 年 1 月 31 日為 3.787 億美元。

The uses of cash during the first quarter were primarily related to our ongoing construction projects at the One Earth Energy facility.

第一季的現金使用主要與我們正在進行的 One Earth Energy 設施建設項目有關。

REX American also ended the quarter without any bank debt.

REX American 在本季結束時也沒有任何銀行債務。

I'd now like to turn things back to Zafar.

我現在想把事情轉回給札法爾。

Thanks, Doug.

謝謝，道格。

I would now like to give some color around how we see market progressing through the second quarter and the remainder of the calendar 2024.

現在我想就我們對第二季和 2024 年剩餘時間市場進展的看法進行一些闡述。

Looking at the ethanol and co-product market, we saw a decline in the class spread as well as product pricing in the first quarter, as compared to the third and fourth quarter of last year, which is normal absence.

看看乙醇和聯產品市場，與去年第三和第四季相比，第一季的類別價差和產品定價有所下降，這是正常現象。

Again, we were able to achieve positive results despite less than ideal condition because of our incredible team.

再次，由於我們令人難以置信的團隊，儘管條件不太理想，我們仍然能夠取得積極的成果。

In the second quarter, we have began to see a pricing recovery, however, not to previous levels.

在第二季度，我們開始看到價格回升，但並未恢復到之前的水平。

For the second quarter.

對於第二季。

We continue to see positive margins and earnings, though, as Doug mentioned, we will see effects of planned plant maintenance during the second quarter of the year.

不過，正如道格所提到的那樣，我們將繼續看到積極的利潤和收益，我們將在今年第二季度看到計劃中的工廠維護的影響。

This will impact production and increase associated expenses for the new Gene and One Earth Energy plants.

這將影響新 Gene 和 One Earth Energy 工廠的生產並增加相關費用。

Finally, I want to point out that last week, we posted our second ESG report to our website, highlighting the work we are already doing in reducing our environmental impact.

最後，我想指出，上週，我們在網站上發布了第二份 ESG 報告，強調了我們在減少環境影響方面已經開展的工作。

I would encourage everyone listening to take a look.

我鼓勵每個聽的人都看一看。

Now, I would like to open things up to questions.

現在，我想提出一些問題。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

Jordan Levy, Truist Securities.

喬丹·利維 (Jordan Levy)，Truist 證券公司。

Hi all, [Henry] for Jordan, here.

大家好，[亨利]代表喬丹，在這裡。

Congrats on the quarter.

恭喜本季。

I think just to start with a quick follow-up on the timeline for the EPA well approval.

我認為首先要快速跟進 EPA 油井批准的時間表。

See you guys are now kind of in the cumulative portion of tech review based on the latest kind of data from EPA, when that phase is completed, should we be thinking about a six to kind of seven month runway to get through the remaining phases and get the final approval in the first quarter?

看到你們現在正在根據 EPA 的最新數據進行技術審查的累積部分，當該階段完成時，我們是否應該考慮六到七個月的跑道來完成剩餘的階段和第一季度獲得最終批准？

Jordan, as we mentioned that we received recently some about proximately 25 to 26 question from EPA, which are due by this Friday.

喬丹，正如我們所提到的，我們最近收到了 EPA 大約 25 到 26 個問題，這些問題將於本週五截止。

So we plan to answer those question, by this Friday.

因此，我們計劃在本週五之前回答這些問題。

And there was our basically technical review about related with the software and other question, how to operate?

還有我們對軟體相關的基本技術審查以及其他問題，如​​何操作？

Because EPA apparently was not very familiar with that software.

因為美國環保署顯然對該軟體不太熟悉。

So we have to send them all the guideline, how that works.

所以我們必須向他們發送所有指南，以及如何運作。

And we will be submitting this by this Friday.

我們將在本週五之前提交。

And after that, the technical review will continue.

之後，技術審查將繼續進行。

We expect that not later than Q1 of 2025 and would be earlier, depends how the technical review will proceed.

我們預計不晚於 2025 年第一季度，甚至更早，這取決於技術審查如何進行。

So we are expecting that should be the latest would be the first quarter of 2025.

因此，我們預計最晚應該是 2025 年第一季。

To answer your question also a little bit further, we still need and are working on pipeline approval and local permit.

為了進一步回答您的問題，我們仍然需要並正在努力獲得管道批准和當地許可。

There's a number of different permits, local permits that need to be that we need to receive before we're in operation.

在我們運作之前，我們需要獲得許多不同的許可證、當地許可證。

So at this time, I don't think we can give you an exact date and just because EPA gives us approval that's something, we have the other approvals.

所以目前，我認為我們無法給你一個確切的日期，僅僅因為 EPA 給了我們批准，我們就獲得了其他批准。

And at this time, I don't think we're in a position to give you the exact date of when we expect to open, we expect our plant to be finished at the plant level and be able to make or be able to capture our CO2 gas as soon as the powers reading, which should be by the end of the year.

目前，我認為我們無法向您提供我們預計開業的確切日期，我們預計我們的工廠將在工廠層面完工，並能夠製造或能夠捕獲我們的二氧化碳氣體一旦通電讀數，應該是在今年年底。

But in terms of putting that in the ground, I don't think we're ready to give you a date at this time.

但就落實而言，我認為我們現在還沒有準備好給你一個日期。

And then just a quick follow-up for me, going back to the One Earth facility, the expansion plan for to come online at the end of the year to 175 million gallons. [Does] provide any color on the timeline for the permit submission to 200?

然後我要快速跟進一下，回到 One Earth 設施，該設施的擴建計劃是在今年年底上線，產能達到 1.75 億加侖。 [是否]在提交 200 張許可證的時間表上提供了任何顏色？

How long you expect that to take once the permit is submitted?

提交許可證後，您預計需要多長時間？

Thank you.

謝謝。

So far, yes, the process basically what we are already have 175 million gallon production per month at this time, but the since the production facility is in the process to increase product production from 150 million to 175 million once the facility is completed, then we require to do some stack testing, which is basically related with the greenhouse gases.

到目前為止，是的，這個過程基本上我們已經每月生產 1.75 億加侖，但由於生產設施正在將產品產量從 1.5 億增加到 1.75 億，一旦設施建成，那麼我們需要做一些煙囪測試，這基本上與溫室氣體有關。

So we will have to do the testing.

所以我們必須進行測試。

And once we qualify after those testing, then right after that we can apply for the 200 million gallon permit from the EPA.

一旦我們在這些測試後合格，我們就可以向 EPA 申請 2 億加侖的許可證。

So this is a step-by-step process.

所以這是一個逐步的過程。

As I mentioned in previous two calls, so we are following those step-by-step process, but the facility will be ready to we'll be able to produce 200 million gallon.

正如我在前兩次電話中提到的，我們正在遵循這些逐步流程，但該設施將做好準備，我們將能夠生產 2 億加侖。

But the only thing will be required at that time once we complete [Sundon] 75, then the next step will be applied for 200 million gallons.

但當時唯一需要的是，一旦我們完成[Sundon]75，那麼下一步將申請2億加侖。

Thanks for that color, and congrats again.

謝謝你的顏色，再次恭喜。

Pavel Molchanov, Raymond James.

帕維爾·莫爾恰諾夫，雷蒙德·詹姆斯。

Good morning.

早安.

Thanks for taking the question.

感謝您提出問題。

Whenever you get the EPA approval.

每當您獲得 EPA 批准時。

So recognizing the timetable is uncertain, do you have a sense of how long it will take before injection get to the same kind of run rate nameplate capacity?

因此，認識到時間表是不確定的，您是否知道注射達到相同運行率銘牌容量需要多長時間？

So to speak that you're anticipating?

這麼說來，你很期待嗎？

The process basically work.

該過程基本上有效。

We have ordered all the equipment and other basic things which we need for the well.

我們已經訂購了井所需的所有設備和其他基本物品。

And those are will be available once we get the approval from the EPA and then it takes approximately two to three months to have the well start -- would start digging and then complete to make it to that 7,000 feet down.

一旦我們獲得 EPA 的批准，這些就可以使用，然後大約需要兩到三個月的時間才能啟動——開始挖掘，然後完成，直到 7,000 英尺以下。

So all together, process maybe somewhere three to four months after that.

因此，總的來說，可能會在三到四個月後的某個地方進行處理。

Keep in mind that we also need other things like pipeline approvals. so which could delay things.So there's no guarantees at this time.

請記住，我們還需要其他東西，例如管道批准。所以這可能會延誤事情。

But assuming we get all our approvals, that's exactly how long and to what far said is exactly right.

但假設我們得到了所有的批准，那麼這就是所說的完全正確的時間和程度。

Right.

正確的。

And in the meantime, while you're waiting kind of on the regulatory road map, what is the status of your dialogue with prospective CO2 injectors for the plant, in other words, other than your own facility?

同時，當您在等待監管路線圖時，您與工廠（換句話說，除了您自己的工廠之外）的潛在二氧化碳注入器的對話狀態如何？

The honest answer is at this time, we are really trying to put laser focus what's exactly happening at our facility because that's the most important project we have, once we are in production, then certainly we can think about it wherever is other meters are available in that area, either we can have some conversation with the University of Illinoi talking about that DACA unit and others, but that's a long way to go yet.

誠實的答案是，此時，我們確實正在努力將雷射聚焦在我們工廠到底發生了什麼，因為這是我們最重要的項目，一旦我們投入生產，那麼我們當然可以在任何其他可用儀表的地方考慮它在這個領域，我們要么可以與伊利諾伊大學進行一些對話，討論DACA 單位和其他單位，但這還有很長的路要走。

But our laser focus is on that facility to complete the facility, get all those permits from ICC, EPA special use permit from the county.

但我們的重點是該設施，以完成該設施，從 ICC 獲得所有這些許可證，從縣獲得 EPA 的特殊使用許可證。

So those are our main focus and complete most importantly, completion of the facility at this time.

因此，這些是我們的主要關注點，最重要的是，此時設施的竣工。

Maybe I'll just squeeze in a question on the on the ethanol side of the business. we keep seeing EPA headlines about year-round E15.

也許我會問一個有關乙醇業務的問題。我們不斷看到 EPA 有關全年 E15 的頭條新聞。

I mean, it seems like it's been going on forever now.

我的意思是，現在看來這種情況已經永遠持續下去了。

What are your kind of latest thoughts on that?

您對此有何最新想法？

I think we have seen some improvement you know, demand, there's a lot of conversations going on.

我認為我們已經看到了一些改進，你知道，需求，正在進行很多對話。

But at the same time, we have not really seen tremendous improvements of the demand at this time.

但同時，我們目前還沒有真正看到需求的巨大改善。

And but this is also a driving season.

但這也是一個駕駛季節。

So we will see that what happened in the next couple of months.

所以我們將看看接下來幾個月會發生什麼。

Also like to keep in mind just because there's E15 approved.

還要記住，只是因為 E15 已獲得批准。

It doesn't mean there's E15 pumps and that's still a big issue that the pumps are not out there, even if it was approved for year-round sales.

這並不意味著有 E15 泵，即使它被批准全年銷售，但泵不存在仍然是一個大問題。

Okay.

好的。

Thanks very much.

非常感謝。

Thank you.

謝謝。

BJ Cook, Singular Research.

BJ Cook，奇異研究公司。

This is BJ cook in for Chris Sakai.

這是克里斯酒井 (Chris Sakai) 的 BJ 廚師。

Just a couple of questions.

只是幾個問題。

One kind of build on the last caller, the appointment or other expansion and One Earth project is complete up and running, how do you expect that to affect the industry capacity as a total because there are demand to absorb the additional capacity?

一種基於最後呼叫者的構建、任命或其他擴展以及“同一個地球”項目已完成並運行，您認為這會對行業總體產能產生怎樣的影響，因為存在吸收額外產能的需求？

I think while production is flat, whereas we plan to have production up to 200 million gallon.

我認為雖然產量持平，但我們計劃將產量提高到 2 億加侖。

As you know, all these plants are different location and two different sides supply, you know, for One Earth Energy would more closely our plant supplies towards to the south or east.

如您所知，所有這些工廠都位於不同的位置，並且有兩個不同的側面供應，您知道，因為「同一個地球能源」將使我們的工廠向南部或東部供應更緊密。

So but it probably depends on which railroad, you know, the plants are located, but I don't really know that how much that will affect overall supply of the ethanol facilities.

所以，但這可能取決於工廠所在的鐵路，但我真的不知道這會對乙醇設施的整體供應產生多大影響。

Okay.

好的。

Thanks.

謝謝。

Appreciate that.

感謝。

Just one more on a great quarter on the unconsolidated affiliates also.

還有一個關於未合併附屬公司的出色季度業績。

I just wanted to make sure, are similar factors affecting those of investments as well?

我只是想確定一下，類似的因素是否也會影響投資？

Are there some idiosyncratic factors worked in there?

其中是否有一些特殊的因素在起作用？

I'm sorry, I didn't understand your question.

抱歉，我沒聽懂你的問題。

Will you please repeat that?

請您重複一遍好嗎？

Like other income.

和其他收入一樣。

Interest another income?

利息是另一筆收入嗎？

Yeah.

是的。

Yeah, I mean, yes, we had it obviously increased the interest rate on our cash and cash equivalents, and then somewhat of a not a one-time but a rare occurrence of a $1.2 million patronage income in Nugent, That's not a recurring thing and not something to count on going forward.

是的，我的意思是，是的，我們的現金和現金等價物的利率明顯提高了，然後在紐金特出現了120 萬美元的贊助收入，這不是一次性的，而是罕見的，這不是經常性的事情而不是未來值得指望的事情。

Have a great quarter, guys.

夥計們，度過一個愉快的季度。

Appreciate your time.

珍惜您的時間。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

Ladies and gentlemen, that concludes our question and answer session.

女士們先生們，我們的問答環節到此結束。

I'll turn the floor back to Mr. Rose for any final comments.

我將把最後的意見轉回給羅斯先生。

Thank you.

謝謝。

We outperformed most of our public peers last quarter and we get it with what we consider great plants, great locations.

上個季度，我們的表現優於大多數上市同行，我們憑藉我們認為出色的工廠和優越的地理位置獲得了這一成績。

But most importantly, we feel we have the best people in the industry, and that's what separates us.

但最重要的是，我們認為我們擁有業內最優秀的人才，這就是我們的與眾不同之處。

Hopefully we'll continue to do this, and we look forward to talking to everyone next quarter.

希望我們能繼續這樣做，並期待下個季度與大家交談。

Thank you very much.

非常感謝。

Thank you.

謝謝。

This concludes today's conference.

今天的會議到此結束。

You may disconnect your lines at this time.

此時您可以斷開線路。

Thank you for your participation.

感謝您的參與。