Good day, ladies and gentlemen and welcome to the Pacific Ethanol Incorporated Third Quarter 2012 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, today's conference call is being recorded. I would now like to introduce the host of this conference call Ms. Becky Herrick. You may begin ma’am.

Thank you, operator and thank you everyone for joining us today for the Pacific Ethanol third quarter 2012 results conference call. On the call today are, Neil Koehler, President and CEO and Bryon McGregor, CFO. Neil will begin with a review of business highlights and then Bryon will provide details on the company's quarterly financial and operating results. Neil will return to discuss Pacific Ethanol's outlook and open the call for questions. Before we get underway, let me first inform you that Pacific Ethanol issued a press release yesterday that provides details of the company's quarterly results. The company also prepared a presentation for today's conference call that is available for download on the company's website at, www.pacificethanol.net. If you have any questions, please call LHA at 415-433-3777. A telephone replay of today's call will be available until 11:59 p.m. Eastern Time on November 20, 2012, the details of which are included in yesterday’s press release. A webcast replay will also be available at Pacific Ethanol's website. Please note that information in this call speaks only as of today, November 13, 2012, and therefore, you are advised any 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 two of the presentation available online which shows that some of the comments in this presentation constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Forward-looking statements are based on many assumptions and factors. Any change of such assumptions or factors could produce significantly different results. Information about potential factors that could affect the company's financial results is available in the company's risk factors as updated in the company's SEC filings. To the extent permitted under applicable law, the company assumes no obligation to update any forward-looking statements as a result of new information or future events. Also please note that the company's financial measures are not in accordance with Generally Accepted Accounting Principles, commonly known as GAAP to monitor the financial performance of operations. Non-GAAP financial measures should be viewed in addition to and not as an alternative for the reported financial results as determined in accordance with GAAP. The company defines adjusted EBITDA as unaudited earnings before interest, taxes, depreciation and amortization and fair value adjustments. To support the company's review of non-GAAP information later in this call, a reconciling table is included in the press release the company issued yesterday. It is now my pleasure to introduce Neil Koehler, President and CEO. Neil?

Thanks, Becky, and thank you all for joining us this morning to discuss our quarterly results. During the third quarter, we further executed on the plans we laid out at the beginning of the year to secure financial stability for the company and build a strong foundation for growth. On July 3rd, we completed a $12 million public equity offering. These proceeds combined with $10 million in senior unsecured notes enabled us to increase our ownership in the Pacific Ethanol plants from 34% to 67%. Consolidating our interest has given us greater strategic control of the plants and supports more efficient and cost effective operations. On September 26th, we completed another public equity offering of $11 million, the proceeds from which we paid the $10 million in senior unsecured notes. We now have eliminated virtually all of our parent company debt. In addition, shortly after the close of the quarter, we obtained a new $10 million line of credit for the Pacific Ethanol plants from a group of existing lenders led by Credit Suisse. This line of credit provides near-term liquidity necessary in light of the current challenging margin environment. Over the next couple of quarters, we will be focusing on refinancing the remaining plant debt, at levels in terms that provide long-term stability for the operations of these assets. We believe these steps have enabled us to build a stronger foundation for growth that positions us for profitability when market conditions improve. These are tough times in the ethanol business and our third quarter results reflect the challenging market environment. Nevertheless, we remain steadfast in our commitment to the long-term profitability of the business. Ethanol producers have suffered in a year when record drought conditions in the Midwest have severely impacted the supply and price of corn. Corn costs…

Thank you Neil. For the third quarter of 2012, we reported net sales of $215.9 million compared to $271.6 million in the third quarter of 2011. Net sales were down due to a 12% decrease in total gallons sold and an 11% decrease in the average sales price per gallon from the same quarter last year. Gross loss for the third quarter of 2012 was $2.4 million compared to gross profit of $8.2 million in the third quarter of 2011. Gross loss decreased sequentially over last quarter despite a drop in average commodity margins. To put this in competitive perspective, our average commodity margin for the third quarter of 2012 which takes into account our average ethanol sales price, corn costs and total product return was 42% lower than the third quarter of 2011 and 10% lower than the last quarter. So despite what was an even lower margin quarter, we were able to actually reduce the size of our losses through improved sourcing, risk mitigation and overall cost reduction efforts. SG&A expenses were $2.9 million in the third quarter of 2012 compared to $3.5 million in the third quarter of 2011. The year-over-year decrease in SG&A expenses was partially due to cost savings achieved through our increased ownership in the plants which enabled us to operate more efficiently using existing staff and resources to eliminate redundancies. We expect to continue to achieve cost savings as a result of our increased ownership position in the plants. Loss available to common stockholders for the third quarter 2012 was $6.3 million or $0.05 per share compared to income available to common stockholders of $4 million or $0.12 per share in the third quarter of 2011. Adjusted EBITDA which excludes fair value adjustments was negative $900,000 in the third quarter of 2012 compared…

Thanks Bryon. We remain diligently focused on implementing the strategies now that will allow us to thrive when market conditions improve. We have taken steps to strengthen our balance sheet, reduce costs, enhance liquidity and reinvest in core assets. The industry is right for growth over the next several years and we will continue to take advantage of long-term opportunities despite near term challenges. We remain committed to our key strategies for growth, which include improving yields and driving cost efficiencies at the plants, continuing to evaluate opportunities to introduce additional revenue streams, exploring opportunities to produce advanced bio flues within our existing plants using locally sourced alternative feed stocks, enhancing liquidity and obtaining favorable terms for refinancing the remaining plant debt and reducing expenses, growth market share and building the foundation for profitability. The steps we have taken during the third quarter have positioned us for growth. We remain steadfast in our commitment to the long-term value and promise of our business. We look forward to keeping you updated on our progress. With that Kevin I would like to open the call for any questions.

(Operator Instructions) Our first question comes from Paul Resnik with Uncommon Equities.

With regard to your reacquisition of the plants; can you put some numbers on that, why your acquisition costs were down has been relative to replacement cost per gallon?

Sure, if you look at the averages of all of the purchase we have made and as we have been reacquiring these assets on an enterprise value basis both the debt and the equity comes in right around $0.75 a gallon or slightly less. We think that’s highly attractive, certainly replacement cost are above $2 a gallon. The most recent acquisition we have seen even in these depressed market conditions was a purchase of a plant at Nebraska by Flint Hills subsidiary coke and that was close to a $40 per gallon. So we are feeling very good about the oil and price, and as I think Bryon mentioned as we have been incrementally buying the price has been coming down a little bit. So it’s strategy is working well and we feel we have a very low cost of these assets.

With regard to corn oil, what impact if any does that have on WDG production when you start getting corn oils byproduct?

Paul, the corn oil right now is in that product and it comes through both the west storage grain and the liquid feed that we sell. So any corn oil that's extracted means you are selling not much less WDG, but added a very good trade because you are levering up something that has four to five times more value as pure corn oil than it does as a component in the distiller grains.

And lastly the Madeira plant, obviously these are very difficult times to start up the fourth plant. How long would it take to start that plant up once you had made that decision?

We have kept the Madeira plant in impeccable condition for starting up. We have a very good oil staff that is at that facility continuing to maintain all of the equipment, keep it greased, keep it turned, keep it clean and within 60 to a maximum of 90 days, but really closer to 60 days we could start that plant up. Obviously in this environment when people are idling plants, we are not immediately focused on starting up that plant, but I will tell you that as we look forward with the low carbon fuel standard in California and what we believe will be the increasing demand for what is becoming a smaller supply of lower carbon ethanol to meet California’s increasing compliance requirements under the low carbon fuel standard, we do believe that the ethanol from that facility is going to be in demand in the future.

(Operator Instructions) I'm not showing any further questions at this time. I would like to turn the conference back to Neil for closing remarks.

Thank you all very much for participating in the call today, and we look forward to speaking with you next quarter. Have a great day.

Well ladies and gentlemen this does conclude today's presentation. You may now disconnect and have a wonderful day.