Quarterly report [Sections 13 or 15(d)]

Segments

v3.26.3
Segments
 9 Months Ended
Sep. 30, 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 Campus 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
September 30,		     Nine Months Ended
September 30,		  
    2026     2025     2026     2025  
Net Sales                        
Pekin Campus production:                        
Alcohol sales   $ 114,482     $ 109,276     $ 336,802     $ 310,666  
Essential ingredient sales     49,750       45,307       138,814       129,490  
Intersegment sales     275       283       767       764  
Total Pekin Campus sales     164,507       154,866       476,383       440,920  
                                 
Marketing and distribution:                                
Alcohol sales   $ 62,048     $ 58,669     $ 164,046     $ 165,910  
Intersegment sales     2,619       2,497       7,581       7,338  
Total marketing and distribution sales     64,667       61,166       171,627       173,248  
                                 
Western production:                                
Alcohol sales   $ 20,759     $ 17,419     $ 58,238     $ 50,218  
Essential ingredient sales     9,056       8,017       25,179       24,076  
Intersegment sales     494       513       1,341       1,281  
Total Western production sales     30,309       25,949       84,758       75,575  
                                 
Corporate and other     1,790       2,298       5,184       5,602  
Intersegment eliminations     (3,388 )     (3,293 )     (9,689 )     (9,383 )
Net sales as reported   $ 257,885     $ 240,986     $ 728,263     $ 685,962  
                                 
Cost of goods sold:                                
Pekin Campus production   $ 154,978     $ 135,942     $ 447,898     $ 431,669  
Marketing and distribution     60,718       56,738       160,159       160,904  
Western production     27,696       24,447       80,402       72,719  
Corporate and other     1,404       2,063       3,450       5,449  
Intersegment eliminations     (1,712 )     (1,698 )     (4,302 )     (4,529 )
Cost of goods sold as reported   $ 243,084     $ 217,492     $ 687,607     $ 666,212  
                                 
Gross profit:                                
Pekin Campus production   $ 9,529     $ 18,924     $ 28,485     $ 9,251  
Marketing and distribution     3,949       4,428       11,468       12,344  
Western production     2,613       1,502       4,356       2,856  
Corporate and other     386       235       1,734       153  
Intersegment eliminations     (1,676 )     (1,595 )     (5,387 )     (4,854 )
Gross profit as reported   $ 14,801     $ 23,494     $ 40,656     $ 19,750  
                                 
Income (loss) before provision for income taxes:                                
Pekin Campus production   $ 8,318     $ 14,694     $ 23,593     $ (3,349 )
Marketing and distribution     1,523       2,105       4,230       5,468  
Western production     5,162       (1,151 )     6,263       (5,754 )
Corporate and other     (1,981 )     (1,440 )     (5,092 )     (4,833 )
    $ 13,022     $ 14,208     $ 28,994     $ (8,468 )
Depreciation and amortization expense:                                
Pekin Campus production   $ 5,601     $ 5,348     $ 16,693     $ 16,153  
Marketing and distribution     —       —       —       —  
Western production     737       738       2,209       2,221  
Corporate and other     350       171       605       514  
    $ 6,688     $ 6,257     $ 19,507     $ 18,888  
Interest expense, net of capitalized interest:                                
Pekin Campus production   $ 198     $ 623     $ 1,478     $ 1,849  
Marketing and distribution     81       86       243       249  
Western production     407       1,399       1,635       4,188  
Corporate and other     834       692       2,322       2,054  
    $ 1,520     $ 2,800     $ 5,678     $ 8,340  

 

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

 

    September 30,
2026		     December 31,
2025		  
Total assets:                
Pekin Campus production   $ 217,397     $ 208,947  
Marketing and distribution     106,176       103,911  
Western production     50,853       43,131  
Corporate and other     28,024       32,797  
    $ 402,450     $ 388,786