| SEGMENTS |
The Company reports its financial and operating
performance in three segments: (1) Pekin Campus production, which includes the production and sale of alcohols and essential ingredients
produced at the Company’s Pekin, Illinois campus (2) marketing and distribution, which includes marketing and merchant trading for
Company-produced alcohols and essential ingredients on an aggregated basis, and sales of fuel-grade ethanol sourced from third parties,
and (3) Western production, which includes the production and sale of fuel-grade ethanol and essential ingredients produced at the Company’s
two western production facilities on an aggregated basis, neither of which are individually so significant to be considered a separately
reportable segment.
The following tables set forth certain financial
data for the Company’s operating segments (in thousands):
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus, recorded as gross: |
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales |
|
$ |
106,459 |
|
|
$ |
128,554 |
|
|
$ |
315,494 |
|
|
$ |
388,629 |
|
| Essential ingredient sales |
|
|
41,217 |
|
|
|
51,634 |
|
|
|
127,297 |
|
|
|
169,220 |
|
| Intersegment sales |
|
|
321 |
|
|
|
363 |
|
|
|
927 |
|
|
|
1,120 |
|
| Total Pekin Campus sales |
|
|
147,997 |
|
|
|
180,551 |
|
|
|
443,718 |
|
|
|
558,969 |
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales, gross |
|
$ |
54,531 |
|
|
$ |
58,805 |
|
|
$ |
179,118 |
|
|
$ |
215,741 |
|
| Alcohol sales, net |
|
|
71 |
|
|
|
74 |
|
|
|
169 |
|
|
|
292 |
|
| Intersegment sales |
|
|
2,862 |
|
|
|
3,392 |
|
|
|
8,002 |
|
|
|
8,734 |
|
| Total marketing and distribution sales |
|
|
57,464 |
|
|
|
62,271 |
|
|
|
187,289 |
|
|
|
224,767 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Western production, recorded as gross: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales |
|
$ |
36,395 |
|
|
$ |
57,159 |
|
|
$ |
74,084 |
|
|
$ |
122,477 |
|
| Essential ingredient sales |
|
|
10,408 |
|
|
|
17,841 |
|
|
|
24,184 |
|
|
|
40,614 |
|
| Intersegment sales |
|
|
8 |
|
|
|
37 |
|
|
|
(122 |
) |
|
|
99 |
|
| Total Western production sales |
|
|
46,811 |
|
|
|
75,037 |
|
|
|
98,146 |
|
|
|
163,190 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate and other |
|
|
2,733 |
|
|
|
4,060 |
|
|
|
8,565 |
|
|
|
12,342 |
|
| Intersegment eliminations |
|
|
(3,191 |
) |
|
|
(3,792 |
) |
|
|
(8,807 |
) |
|
|
(9,953 |
) |
| Net sales as reported |
|
$ |
251,814 |
|
|
$ |
318,127 |
|
|
$ |
728,911 |
|
|
$ |
949,315 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
141,823 |
|
|
$ |
179,995 |
|
|
$ |
423,135 |
|
|
$ |
546,591 |
|
| Marketing and distribution |
|
|
53,553 |
|
|
|
58,051 |
|
|
|
176,676 |
|
|
|
212,923 |
|
| Western production |
|
|
49,079 |
|
|
|
73,584 |
|
|
|
112,762 |
|
|
|
165,401 |
|
| Corporate and other |
|
|
2,952 |
|
|
|
3,538 |
|
|
|
8,690 |
|
|
|
9,322 |
|
| Intersegment eliminations |
|
|
(1,553 |
) |
|
|
(1,202 |
) |
|
|
(3,465 |
) |
|
|
(3,100 |
) |
| Cost of goods sold as reported |
|
$ |
245,854 |
|
|
$ |
313,966 |
|
|
$ |
717,798 |
|
|
$ |
931,137 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
6,174 |
|
|
$ |
556 |
|
|
$ |
20,583 |
|
|
$ |
12,378 |
|
| Marketing and distribution |
|
|
3,911 |
|
|
|
4,220 |
|
|
|
10,613 |
|
|
|
11,844 |
|
| Western production |
|
|
(2,268 |
) |
|
|
1,453 |
|
|
|
(14,616 |
) |
|
|
(2,211 |
) |
| Corporate and other |
|
|
(219 |
) |
|
|
522 |
|
|
|
(125 |
) |
|
|
3,020 |
|
| Intersegment eliminations |
|
|
(1,638 |
) |
|
|
(2,590 |
) |
|
|
(5,342 |
) |
|
|
(6,853 |
) |
| Gross profit as reported |
|
$ |
5,960 |
|
|
$ |
4,161 |
|
|
$ |
11,113 |
|
|
$ |
18,178 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before provision for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
1,997 |
|
|
$ |
(1,956 |
) |
|
$ |
8,083 |
|
|
$ |
3,716 |
|
| Marketing and distribution |
|
|
1,626 |
|
|
|
2,403 |
|
|
|
3,733 |
|
|
|
6,019 |
|
| Western production |
|
|
(4,119 |
) |
|
|
(20 |
) |
|
|
(21,075 |
) |
|
|
(6,497 |
) |
| Corporate and other |
|
|
(1,945 |
) |
|
|
(3,916 |
) |
|
|
(8,013 |
) |
|
|
(12,298 |
) |
| |
|
$ |
(2,441 |
) |
|
$ |
(3,489 |
) |
|
$ |
(17,272 |
) |
|
$ |
(9,060 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
5,328 |
|
|
$ |
4,961 |
|
|
$ |
15,733 |
|
|
$ |
14,778 |
|
| Western production |
|
|
502 |
|
|
|
458 |
|
|
|
1,445 |
|
|
|
1,921 |
|
| Corporate and other |
|
|
228 |
|
|
|
228 |
|
|
|
682 |
|
|
|
683 |
|
| |
|
$ |
6,058 |
|
|
$ |
5,647 |
|
|
$ |
17,860 |
|
|
$ |
17,382 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net of capitalized interest: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
496 |
|
|
$ |
108 |
|
|
$ |
1,083 |
|
|
$ |
(527 |
) |
| Marketing and distribution |
|
|
98 |
|
|
|
111 |
|
|
|
291 |
|
|
|
713 |
|
| Western production |
|
|
619 |
|
|
|
678 |
|
|
|
1,848 |
|
|
|
173 |
|
| Corporate and other |
|
|
654 |
|
|
|
1,103 |
|
|
|
1,948 |
|
|
|
4,940 |
|
| |
|
$ |
1,867 |
|
|
$ |
2,000 |
|
|
$ |
5,170 |
|
|
$ |
5,299 |
|
The following table sets forth the Company’s
total assets by operating segment (in thousands):
| |
|
September 30,
2024 |
|
|
December 31,
2023 |
|
| Total assets: |
|
|
|
|
|
|
| Pekin Campus |
|
$ |
227,491 |
|
|
$ |
251,048 |
|
| Marketing and distribution |
|
|
90,215 |
|
|
|
101,196 |
|
| Western production |
|
|
63,920 |
|
|
|
57,533 |
|
| Corporate and other |
|
|
35,785 |
|
|
|
44,464 |
|
| |
|
$ |
417,411 |
|
|
$ |
454,241 |
|
|