Quarterly report pursuant to Section 13 or 15(d)

2. Segments

v3.5.0.2
2. Segments
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
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
September 30,
    Nine Months Ended
September 30,
 
    2016     2015     2016     2015  
                         
Net Sales                                
Ethanol Production:                                
Net sales to external customers   $ 266,299     $ 248,158     $ 767,171     $ 456,114  
Intersegment net sales     306       251       829       336  
Total production segment net sales     266,605       248,409       768,000       456,450  
                                 
Marketing and distribution:                                
Net sales to external customers     151,507       132,464       415,868       358,304  
Intersegment net sales     2,018       1,792       5,861       3,364  
Total marketing and distribution net sales     153,525       134,256       421,729       361,668  
Intersegment eliminations     (2,324 )     (2,043 )     (6,690 )     (3,699 )
Net sales as reported   $ 417,806     $ 380,622     $ 1,183,039     $ 814,419  

 

Cost of goods sold:                        
Ethanol production   $ 262,964     $ 261,069     $ 759,210     $ 468,229  
Marketing and distribution     153,406       130,756       412,225       357,337  
Intersegment eliminations     (4,928 )     (3,823 )     (13,533 )     (9,034 )
Cost of goods sold as reported   $ 411,442     $ 388,002     $ 1,157,902     $ 816,532  

 

                         
Income (loss) before provision for income taxes:                        
Ethanol production   $ (2,903 )   $ (22,154 )   $ (19,171 )   $ (26,352 )
Marketing and distribution     (1,524 )     1,970       4,654       (161 )
Corporate activities     909       1,596       2,614       2,298  
    $ (3,518 )   $ (18,588 )   $ (11,903 )   $ (24,215 )
Depreciation and amortization:                                
Ethanol production   $ 8,631     $ 8,195     $ 25,839     $ 14,585  
Marketing and distribution           5       3       147  
Corporate activities     226       155       684       371  
    $ 8,857     $ 8,355     $ 26,526     $ 15,103  

 

Interest expense:                        
Ethanol production   $ 3,521     $ 4,987     $ 15,600     $ 6,831  
Marketing and distribution     353       180       1,043       356  
Corporate activities                        
    $ 3,874     $ 5,167     $ 16,643     $ 7,187  

  

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

 

       
    September 30, 2016     December 31, 2015  
Total assets:                
Ethanol production   $ 512,285     $ 536,013  
Marketing and distribution     128,895       107,069  
Corporate assets     15,946       31,598  
    $ 657,126     $ 674,680