Quarterly report [Sections 13 or 15(d)]

Segments

v3.25.3
Segments
 9 Months Ended
Sep. 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 in Boardman, Oregon and Burley, Idaho and, beginning for the three and nine months ended September 30, 2025, its liquid CO2 plant on an aggregated basis (“Western production”).

 

For the three and nine months ended September 30, 2025, capital expenditures incurred by the Pekin Campus segment were approximately $1.6 million and $2.6 million, respectively, and none for the Western production segment. For the three and nine months ended September 30, 2024, capital expenditures incurred by the Pekin Campus segment were approximately $0.2 million and $7.1 million, respectively, and $0.3 million and $2.7 million for the Western production segment, respectively. For all periods presented, there were no capital expenditures for the marketing and distribution 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,		  
    2025     2024     2025     2024  
Net Sales                        
Pekin Campus production, recorded as gross:                        
Alcohol sales   $ 109,276     $ 106,459     $ 310,666     $ 315,494  
Essential ingredient sales     45,307       41,217       129,490       127,297  
Intersegment sales     283       321       764       927  
Total Pekin Campus sales     154,866       147,997       440,920       443,718  
Marketing and distribution:                                
Alcohol sales, gross   $ 58,595     $ 54,531     $ 165,695     $ 179,118  
Alcohol sales, net     74       71       215       169  
Intersegment sales     2,497       2,862       7,338       8,002  
Total marketing and distribution sales     61,166       57,464       173,248       187,289  
                                 
Western production, recorded as gross:                                
Alcohol sales   $ 17,419     $ 36,395     $ 50,218     $ 74,084  
Essential ingredient sales     8,017       10,408       24,076       24,184  
Intersegment sales     513       8       1,281       (122 )
Total Western production sales     25,949       46,811       75,575       98,146  
                                 
Corporate and other     2,298       2,733       5,602       8,565  
Intersegment eliminations     (3,293 )     (3,191 )     (9,383 )     (8,807 )
Net sales as reported   $ 240,986     $ 251,814     $ 685,962     $ 728,911  
                                 
Cost of goods sold:                                
Pekin Campus production   $ 135,942     $ 141,823     $ 431,669     $ 423,135  
Marketing and distribution     56,738       53,553       160,904       176,676  
Western production     24,447       49,079       72,719       112,762  
Corporate and other     2,063       2,952       5,449       8,690  
Intersegment eliminations     (1,698 )     (1,553 )     (4,529 )     (3,465 )
Cost of goods sold as reported   $ 217,492     $ 245,854     $ 666,212     $ 717,798  
                                 
Gross profit (loss):                                
Pekin Campus production   $ 18,924     $ 6,174     $ 9,251     $ 20,583  
Marketing and distribution     4,428       3,911       12,344       10,613  
Western production     1,502       (2,268 )     2,856       (14,616 )
Corporate and other     235       (219 )     153       (125 )
Intersegment eliminations     (1,595 )     (1,638 )     (4,854 )     (5,342 )
Gross profit as reported   $ 23,494     $ 5,960     $ 19,750     $ 11,113  
                                 
Income (loss) before provision for income taxes:                                
Pekin Campus production   $ 14,694     $ 1,997     $ (3,349 )   $ 8,083  
Marketing and distribution     2,105       1,626       5,468       3,733  
Western production     (1,151 )     (4,119 )     (5,754 )     (21,075 )
Corporate and other     (1,440 )     (1,945 )     (4,833 )     (8,013 )
    $ 14,208     $ (2,441 )   $ (8,468 )   $ (17,272 )
Depreciation and amortization expense:                                
Pekin Campus production   $ 5,348     $ 5,328     $ 16,153     $ 15,733  
Western production     738       502       2,221       1,445  
Corporate and other     171       228       514       682  
    $ 6,257     $ 6,058     $ 18,888     $ 17,860  
Interest expense, net of capitalized interest:                                
Pekin Campus production   $ 623     $ 496     $ 1,849     $ 1,083  
Marketing and distribution     86       98       249       291  
Western production     1,399       619       4,188       1,848  
Corporate and other     692       654       2,054       1,948  
    $ 2,800     $ 1,867     $ 8,340     $ 5,170  

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

 

    September 30,
2025		     December 31,
2024		  
Total assets:            
Pekin Campus production   $ 228,979     $ 223,934  
Marketing and distribution     97,855       102,895  
Western production     42,975       44,992  
Corporate and other     18,665       29,617  
    $ 388,474     $ 401,438