Quarterly report pursuant to Section 13 or 15(d)

2. Segments

v3.7.0.1
2. Segments
6 Months Ended
Jun. 30, 2017
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 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,
 
    2017     2016     2017     2016  
                         
Net Sales                                
Ethanol Production:                                
Net sales to external customers   $ 256,125     $ 271,630     $ 499,199     $ 500,871  
Intersegment net sales     188       260       499       523  
Total ethanol production net sales     256,313       271,890       499,698       501,394  
                                 
Marketing and distribution:                                
Net sales to external customers     149,077       151,230       292,343       264,362  
Intersegment net sales     1,963       2,091       3,800       3,843  
Total marketing and distribution net sales     151,040       153,321       296,143       268,205  
Intersegment eliminations     (2,151 )     (2,351 )     (4,299 )     (4,366 )
Net sales as reported   $ 405,202     $ 422,860     $ 791,542     $ 765,233  
                                 
Cost of goods sold:                        
Ethanol production   $ 253,947     $ 260,237     $ 504,534     $ 496,246  
Marketing and distribution     151,131       149,521       294,806       258,819  
Intersegment eliminations     (1,529 )     (4,602 )     (3,678 )     (8,605 )
Cost of goods sold as reported   $ 403,549     $ 405,156     $ 795,662     $ 746,460  
                         
Income (loss) before provision for income taxes:                        
Ethanol production   $ (6,304 )   $ 794     $ (18,619 )   $ (16,330 )
Marketing and distribution     (1,435 )     2,209       (1,286 )     6,178  
Corporate activities     (2,199 )     1,838       (3,518 )     1,767  
    $ (9,938 )   $ 4,841     $ (23,423 )   $ (8,385 )
Depreciation and amortization:                                
Ethanol production   $ 9,016     $ 8,793     $ 17,862     $ 17,209  
Marketing and distribution                       3  
Corporate activities     283       225       546       458  
    $ 9,299     $ 9,018     $ 18,408     $ 17,670  
Interest expense:                        
Ethanol production   $ 1,119     $ 6,180     $ 2,211     $ 12,080  
Marketing and distribution     302       356       610       689  
Corporate activities     1,273             2,510        
    $ 2,694     $ 6,536     $ 5,331     $ 12,769  

 

 

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

 

       
    June 30, 2017     December 31, 2016  
Total assets:                
                 
Ethanol production   $ 545,835     $ 542,688  
Marketing and distribution     128,689       146,356  
Corporate assets     10,053       19,194  
    $ 684,577     $ 708,238