Quarterly report [Sections 13 or 15(d)]

Segments

v3.25.1
Segments
 3 Months Ended
Mar. 31, 2025
Segments [Abstract]  
SEGMENTS
3. SEGMENTS.

 

A segment is a component of an enterprise whose operating results are regularly reviewed by the enterprise’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s CODM is the Company’s executive committee, which is led by the Company’s Chief Executive Officer (“CEO”) and includes its Chief Financial Officer, Chief Operating Officer, Chief Commercial Officer and Chief Legal Officer (“Executive Committee”). The Company manages and assesses the performance of its reportable segments by its gross profit (loss). As part of the Executive Committee’s review of segment-level performance, each member of the Executive Committee reviews the gross profit of the Company’s reportable segments and provides expertise and analysis from their respective areas which drive the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. Even though the CEO has the authority to override the other members for strategic or other reasons, key decisions are made jointly by the Executive Committee.

 

The Company reports financial and operating performance in three reportable segments (1) Pekin production, which includes the entire campus in Pekin, Illinois (“Pekin Campus”), (2) marketing and distribution, which includes marketing and merchant trading for Company-produced specialty alcohols, fuel-grade ethanol and essential ingredients, and sales of fuel-grade ethanol sourced from third parties, and (3) Western production, which includes the Company’s two western production facilities and, beginning for the three months ended March 31, 2025, its liquid CO2 plant on an aggregated basis (“Western production”).

The following tables set forth certain financial data for the Company’s operating segments (in thousands):

 

    Three Months Ended
March 31,		  
Net Sales   2025     2024  
Pekin Campus production, recorded as gross:            
Alcohol sales   $ 107,234     $ 108,350  
Essential ingredient sales     44,618       46,709  
Intersegment sales     297       321  
Total Pekin Campus sales     152,149       155,380  
 Marketing and distribution:                
Alcohol sales, gross   $ 48,997     $ 54,431  
Alcohol sales, net     61       34  
Intersegment sales     2,506       2,752  
Total marketing and distribution sales     51,564       57,217  
Western production, recorded as gross:                
Alcohol sales   $ 16,194     $ 20,231  
Essential ingredient sales     7,808       7,826  
Intersegment sales     264      
—
  
Total Western production sales     24,266       28,057  
                 
Corporate and other     1,628       3,048  
Intersegment eliminations     (3,067 )     (3,073 )
Net sales as reported   $ 226,540     $ 240,629  
             
Cost of goods sold:            
Pekin Campus production   $ 155,222     $ 151,112  
Marketing and distribution     47,650       53,685  
Western production     25,524       36,517  
Corporate and other     1,681       2,794  
Intersegment eliminations     (1,730 )     (1,079 )
Cost of goods sold as reported   $ 228,347     $ 243,029  
                 

Gross profit (loss):

                
Pekin Campus production   $ (3,073 )   $ 4,268  
Marketing and distribution     3,914       3,532  
Western production     (1,258 )     (8,460 )
Corporate and other     (53 )     254  
Intersegment eliminations     (1,337 )     (1,994 )
Gross loss as reported   $ (1,807 )   $ (2,400 )
             
Gain (loss) before provision for income taxes:            
Pekin Campus production   $ (7,364 )   $ 108  
Marketing and distribution     1,563       1,305  
Western production     (3,905 )     (10,976 )
Corporate and other     (1,973 )     (2,162 )
    $ (11,679 )   $ (11,725 )
Depreciation and amortization expense:                
Pekin Campus production   $ 5,456     $ 5,035  
Western production     640       465  
Corporate and other     170       228  
    $ 6,266     $ 5,728  
Interest expense, net of capitalized interest:                
Pekin Campus production   $ 610     $ 261  
Marketing and distribution     83       96  
Western production     1,359       630  
Corporate and other     677       647  
    $ 2,729     $ 1,634  

The following table sets forth the Company’s total assets by operating segment (in thousands): 

 

    March 31,
2025		     December 31,
2024		  
Total assets:            
Pekin Campus production   $ 216,152     $ 223,934  
Marketing and distribution     118,130       102,895  
Western production     46,470       44,992  
Corporate and other     21,457       29,617  
    $ 402,209     $ 401,438