| 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 |
|
|