| Segments |
The Company reports
its financial and operating performance in two segments: (1) ethanol production, which includes the production and sale of ethanol,
specialty alcohols 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, specialty alcohols 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, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales to
external customers |
|
$ |
304,812 |
|
|
$ |
266,299 |
|
|
$ |
804,012 |
|
|
$ |
767,171 |
|
| Intersegment
net sales |
|
|
639 |
|
|
|
306 |
|
|
|
1,138 |
|
|
|
829 |
|
| Total ethanol production
net sales |
|
$ |
305,451 |
|
|
$ |
266,605 |
|
|
$ |
805,150 |
|
|
$ |
768,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
sales to external customers |
|
$ |
140,630 |
|
|
$ |
151,507 |
|
|
$ |
432,972 |
|
|
$ |
415,868 |
|
| Intersegment
net sales |
|
|
2,334 |
|
|
|
2,018 |
|
|
|
6,135 |
|
|
|
5,861 |
|
| Total marketing and distribution
net sales |
|
|
142,964 |
|
|
|
153,525 |
|
|
|
439,107 |
|
|
|
421,729 |
|
| Intersegment
eliminations |
|
|
(2,973 |
) |
|
|
(2,324 |
) |
|
|
(7,273 |
) |
|
|
(6,690 |
) |
| Net
sales as reported |
|
$ |
445,442 |
|
|
$ |
417,806 |
|
|
$ |
1,236,984 |
|
|
$ |
1,183,039 |
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
292,743 |
|
|
$ |
262,964 |
|
|
$ |
797,277 |
|
|
$ |
759,210 |
|
| Marketing and distribution |
|
|
142,303 |
|
|
|
153,406 |
|
|
|
437,110 |
|
|
|
412,225 |
|
| Intersegment
eliminations |
|
|
(1,669 |
) |
|
|
(4,928 |
) |
|
|
(5,348 |
) |
|
|
(13,533 |
) |
| Cost
of goods sold as reported |
|
$ |
433,377 |
|
|
$ |
411,442 |
|
|
$ |
1,229,039 |
|
|
$ |
1,157,902 |
|
| Income (loss) before provision
for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
2,638 |
|
|
$ |
(2,903 |
) |
|
$ |
(15,981 |
) |
|
$ |
(19,171 |
) |
| Marketing and distribution |
|
|
(757 |
) |
|
|
(1,524 |
) |
|
|
(2,043 |
) |
|
|
4,654 |
|
| Corporate
activities |
|
|
(2,422 |
) |
|
|
909 |
|
|
|
(5,940 |
) |
|
|
2,614 |
|
| |
|
$ |
(541 |
) |
|
$ |
(3,518 |
) |
|
$ |
(23,964 |
) |
|
$ |
(11,903 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
9,841 |
|
|
$ |
8,631 |
|
|
$ |
27,703 |
|
|
$ |
25,839 |
|
| Marketing and distribution |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
3 |
|
| Corporate
activities |
|
|
238 |
|
|
|
226 |
|
|
|
783 |
|
|
|
684 |
|
| |
|
$ |
10,079 |
|
|
$ |
8,857 |
|
|
$ |
28,486 |
|
|
$ |
26,526 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
1,850 |
|
|
$ |
3,521 |
|
|
$ |
4,061 |
|
|
$ |
15,600 |
|
| Marketing and distribution |
|
|
342 |
|
|
|
353 |
|
|
|
952 |
|
|
|
1,043 |
|
| Corporate
activities |
|
|
1,634 |
|
|
|
– |
|
|
|
4,144 |
|
|
|
– |
|
| |
|
$ |
3,826 |
|
|
$ |
3,874 |
|
|
$ |
9,157 |
|
|
$ |
16,643 |
|
The following
table sets forth the Company’s total assets by operating segment (in thousands):
| |
|
September 30, 2017 |
|
|
December 31, 2016 |
|
| Total
assets: |
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
596,928 |
|
|
$ |
542,688 |
|
| Marketing and distribution |
|
|
129,294 |
|
|
|
146,356 |
|
| Corporate assets |
|
|
4,428 |
|
|
|
19,194 |
|
| |
|
$ |
730,650 |
|
|
$ |
708,238 |
|
|