| Segments |
The Company
reports its financial and operating performance in two segments: (1) ethanol production, which includes the production and sale
of ethanol and co-products, with all eight of the Company’s production facilities aggregated, and (2) marketing and distribution,
which includes marketing and merchant trading for Company-produced ethanol and co-products and third-party ethanol.
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, |
|
| |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales to external customers |
|
$ |
271,630 |
|
|
$ |
108,960 |
|
|
$ |
500,871 |
|
|
$ |
207,957 |
|
| Intersegment net sales |
|
|
260 |
|
|
|
85 |
|
|
|
523 |
|
|
|
85 |
|
| Total production segment sales |
|
|
271,890 |
|
|
|
109,045 |
|
|
|
501,394 |
|
|
|
208,042 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales to external customers |
|
|
151,230 |
|
|
|
118,661 |
|
|
|
264,362 |
|
|
|
225,840 |
|
| Intersegment net sales |
|
|
2,091 |
|
|
|
836 |
|
|
|
3,843 |
|
|
|
1,571 |
|
| Total marketing and distribution net sales |
|
|
153,321 |
|
|
|
119,497 |
|
|
|
268,205 |
|
|
|
227,411 |
|
| Intersegment eliminations |
|
|
(2,351 |
) |
|
|
(921 |
) |
|
|
(4,366 |
) |
|
|
(1,656 |
) |
| Net sales as reported |
|
$ |
422,860 |
|
|
$ |
227,621 |
|
|
$ |
765,233 |
|
|
$ |
433,797 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
260,237 |
|
|
$ |
105,623 |
|
|
$ |
496,246 |
|
|
$ |
207,160 |
|
| Marketing and distribution |
|
|
149,521 |
|
|
|
118,522 |
|
|
|
258,819 |
|
|
|
226,581 |
|
| Intersegment eliminations |
|
|
(4,602 |
) |
|
|
(2,778 |
) |
|
|
(8,605 |
) |
|
|
(5,211 |
) |
| Cost of goods sold as reported |
|
$ |
405,156 |
|
|
$ |
221,367 |
|
|
$ |
746,460 |
|
|
$ |
428,530 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before provision for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
794 |
|
|
$ |
1,013 |
|
|
$ |
(16,330 |
) |
|
$ |
(4,199 |
) |
| Marketing and distribution |
|
|
2,209 |
|
|
|
(516 |
) |
|
|
6,178 |
|
|
|
(2,131 |
) |
| Corporate activities |
|
|
1,838 |
|
|
|
1,085 |
|
|
|
1,767 |
|
|
|
703 |
|
| |
|
$ |
4,841 |
|
|
$ |
1,582 |
|
|
$ |
(8,385 |
) |
|
$ |
(5,627 |
) |
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
8,793 |
|
|
$ |
3,206 |
|
|
$ |
17,209 |
|
|
$ |
6,390 |
|
| Marketing and distribution |
|
|
– |
|
|
|
15 |
|
|
|
3 |
|
|
|
142 |
|
| Corporate activities |
|
|
225 |
|
|
|
119 |
|
|
|
458 |
|
|
|
216 |
|
| |
|
$ |
9,018 |
|
|
$ |
3,340 |
|
|
$ |
17,670 |
|
|
$ |
6,748 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
6,180 |
|
|
$ |
922 |
|
|
$ |
12,080 |
|
|
$ |
1,844 |
|
| Marketing and distribution |
|
|
356 |
|
|
|
83 |
|
|
|
689 |
|
|
|
176 |
|
| Corporate activities |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
| |
|
$ |
6,536 |
|
|
$ |
1,005 |
|
|
$ |
12,769 |
|
|
$ |
2,020 |
|
The following
table sets forth the Company’s total assets by operating segment (in thousands):
| |
|
June 30, 2016 |
|
|
December 31, 2015 |
|
| Total
assets: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
523,652 |
|
|
$ |
536,013 |
|
| Marketing and distribution |
|
|
130,689 |
|
|
|
107,069 |
|
| Corporate assets |
|
|
11,379 |
|
|
|
31,598 |
|
| |
|
$ |
665,720 |
|
|
$ |
674,680 |
|
|