Quarterly report [Sections 13 or 15(d)]

Segments

v3.25.2
Segments
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2025, its liquid CO2 plant on an aggregated basis (“Western production”).

 

For the three and six months ended June 30, 2025, capital expenditures incurred by the Pekin Campus segment were approximately $0.5 million and $1.0 million, respectively, and none for the Western production segment. For the three and six months ended June 30, 2024, capital expenditures incurred by the Pekin Campus segment were approximately $3.1 million and $6.9 million, respectively, and $1.6 million and $2.4 million for the Western production segment, respectively.

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

 

    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2025     2024     2025     2024  
Net Sales                        
Pekin Campus production, recorded as gross:                        
Alcohol sales   $ 94,155     $ 100,687     $ 201,390     $ 209,035  
Essential ingredient sales     39,565       39,371       84,183       86,080  
Intersegment sales     183       286       481       606  
Total Pekin Campus sales     133,903       140,344       286,054       295,721  
                                 
Marketing and distribution:                                
Alcohol sales, gross   $ 58,106     $ 70,157     $ 107,101     $ 124,587  
Alcohol sales, net     80       64       142       98  
Intersegment sales     2,334       2,388       4,840       5,140  
Total marketing and distribution sales     60,520       72,609       112,083       129,825  
                                 
Western production, recorded as gross:                                
Alcohol sales   $ 16,604     $ 17,456     $ 32,798     $ 37,690  
Essential ingredient sales     8,250       5,950       16,058       13,776  
Intersegment sales     505      
—
       769       (130 )
Total Western production sales     25,359       23,406       49,625       51,336  
                                 
Corporate and other     1,676       2,783       3,304       5,831  
Intersegment eliminations     (3,022 )     (2,674 )     (6,090 )     (5,616 )
Net sales as reported   $ 218,436     $ 236,468     $ 444,976     $ 477,097  
                                 
Cost of goods sold:                                
Pekin Campus production   $ 139,748     $ 130,200     $ 294,974     $ 281,311  
Marketing and distribution     56,518       69,437       104,167       123,123  
Western production     23,501       27,167       49,024       63,683  
Corporate and other     1,705       2,943       3,386       5,738  
Intersegment eliminations     (1,099 )     (832 )     (2,831 )     (1,911 )
Cost of goods sold as reported   $ 220,373     $ 228,915     $ 448,720     $ 471,944  
                                 
Gross profit (loss):                                
Pekin Campus production   $ (5,845 )   $ 10,144     $ (8,920 )   $ 14,410  
Marketing and distribution     4,002       3,172       7,916       6,702  
Western production     1,858       (3,761 )     601       (12,347 )
Corporate and other     (29 )     (160 )     (82 )     93  
Intersegment eliminations     (1,923 )     (1,842 )     (3,259 )     (3,705 )
Gross profit (loss) as reported   $ (1,937 )   $ 7,553     $ (3,744 )   $ 5,153  
                                 
Income (loss) before provision for income taxes:                                
Pekin Campus production   $ (9,923 )   $ 5,971     $ (17,291 )   $ 6,087  
Marketing and distribution     1,795       806       3,359       2,108  
Western production     (1,453 )     (5,977 )     (5,356 )     (16,954 )
Corporate and other     (1,416 )     (3,906 )     (3,388 )     (6,072 )
    $ (10,997 )   $ (3,106 )   $ (22,676 )   $ (14,831 )
                                 
Depreciation and amortization expense:                                
Pekin Campus production   $ 5,348     $ 5,369     $ 10,804     $ 10,404  
Western production     843       478       1,483       943  
Corporate and other     172       228       344       455  
    $ 6,363     $ 6,075     $ 12,631     $ 11,802  
                                 
Interest expense, net of capitalized interest:                                
Pekin Campus production   $ 615     $ 326     $ 1,226     $ 587  
Marketing and distribution     81       98       163       193  
Western production     1,430       598       2,789       1,229  
Corporate and other     685       647       1,362       1,294  
    $ 2,811     $ 1,669     $ 5,540     $ 3,303  

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

 

    June 30,
2025		     December 31,
2024		  
Total assets:            
Pekin Campus production   $ 212,735     $ 223,934  
Marketing and distribution     118,773       102,895  
Western production     43,603       44,992  
Corporate and other     17,954       29,617  
    $ 393,065     $ 401,438