Quarterly report [Sections 13 or 15(d)]

Segments

v3.26.1
Segments
 3 Months Ended
Mar. 31, 2026
Segments [Abstract]  
SEGMENTS

2. 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 three production facilities located 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 production facilities located in Burley, Idaho and Boardman, Oregon, and 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   2026     2025  
Pekin Campus production:            
Alcohol sales   $ 107,952     $ 107,234  
Essential ingredient sales     43,993       44,618  
Intersegment sales     262       297  
Total Pekin Campus sales     152,207       152,149  
Marketing and distribution:
               
Alcohol sales     47,326       49,058  
Intersegment sales     2,450       2,506  
Total marketing and distribution sales     49,776       51,564  
Western production:
               
Alcohol sales     16,680       16,194  
Essential ingredient sales     7,280       7,808  
Intersegment sales     399       264  
Total Western production sales     24,359       24,266  
                 
Corporate and other     1,449       1,628  
Intersegment eliminations     (3,111 )     (3,067 )
Net sales as reported   $ 224,680     $ 226,540  
                 

Cost of goods sold:            
Pekin Campus production   $ 144,021     $ 155,222  
Marketing and distribution     46,037       47,650  
Western production     25,502       25,524  
Corporate and other     1,036       1,681  
Intersegment eliminations     (1,135 )     (1,730 )
Cost of goods sold as reported   $ 215,461     $ 228,347  
                 
Gross profit (loss):                
Pekin Campus production   $ 8,186     $ (3,073 )
Marketing and distribution     3,739       3,914  
Western production     (1,143 )     (1,258 )
Corporate and other     413       (53 )
Intersegment eliminations     (1,976 )     (1,337 )
Gross profit (loss) as reported   $ 9,219     $ (1,807 )
             
Income (loss) before provision for income taxes:            
Pekin Campus production   $ 6,358     $ (7,364 )
Marketing and distribution     1,426       1,563  
Western production     (1,756 )     (3,905 )
Corporate and other     (1,757 )     (1,973 )
    $ 4,271     $ (11,679 )
                 
Depreciation and amortization expense:                
Pekin Campus production   $ 5,502     $ 5,456  
Western production     736       640  
Corporate and other     128       170  
    $ 6,366     $ 6,266  
               
Interest expense, net of capitalized interest:                
Pekin Campus production   $ 638     $ 610  
Marketing and distribution     86       83  
Western production     750       1,359  
Corporate and other     724       677  
    $ 2,198     $ 2,729  

 

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

 

    March 31,
2026		     December 31, 2025  
Total assets:            
Pekin Campus production   $ 214,883     $ 208,947  
Marketing and distribution     104,407       103,911  
Western production     44,033       43,131  
Corporate and other     22,970       32,797  
    $ 386,293     $ 388,786