Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS

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SEGMENTS
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segments
2. 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  
June 30,
    Six Months Ended
June 30,
 
    2018     2017     2018     2017  
                         
Net Sales                                
Production, recorded as gross:                                
Ethanol/alcohol sales   $ 233,888     $ 197,657     $ 453,517     $ 382,112  
Co-product sales     78,514       58,468       153,048       117,087  
Intersegment sales     539       188       1,013       499  
Total production sales     312,941       256,313       607,578       499,698  
                                 
Marketing:                                
Ethanol/alcohol sales, gross   $ 97,634     $ 148,644     $ 203,063     $ 291,526  
Ethanol/alcohol sales, net     486       433       921       817  
Intersegment sales     2,330       1,963       4,555       3,800  
Total marketing sales     100,450       151,040       208,539       296,143  
                                 
Intersegment eliminations     (2,869 )     (2,151 )     (5,568 )     (4,299 )
Net sales as reported   $ 410,522     $ 405,202     $ 810,549     $ 791,542  
                                 
Cost of goods sold:                        
Production   $ 320,631     $ 254,570     $ 619,064     $ 505,155  
Marketing and distribution     94,203       151,130       195,135       294,806  
Intersegment eliminations     (3,039 )     (2,151 )     (5,739 )     (4,299 )
Cost of goods sold as reported   $ 411,795     $ 403,549     $ 808,460     $ 795,662  
                         
Income (loss) before benefit for income taxes:                        
Production   $ (17,210 )   $ (6,304 )   $ (29,609 )   $ (18,619 )
Marketing and distribution     4,929       (1,435 )     10,677       (1,286 )
Corporate activities     (2,323 )     (2,199 )     (5,732 )     (3,518 )
    $ (14,604 )   $ (9,938 )   $ (24,664 )   $ (23,423 )
Depreciation and amortization:                                
Production   $ 10,045     $ 9,016     $ 19,977     $ 17,862  
Corporate activities     208       283       441       546  
    $ 10,253     $ 9,299     $ 20,418     $ 18,408  
Interest expense:                        
Production   $ 1,700     $ 1,119     $ 3,724     $ 2,211  
Marketing and distribution     336       302       699       610  
Corporate activities     2,141       1,273       4,259       2,510  
    $ 4,177     $ 2,694     $ 8,682     $ 5,331  

 

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

 

    June 30, 2018     December 31, 2017  
Total assets:                
                 
Production   $ 567,322     $ 583,696  
Marketing and distribution     150,255       127,242  
Corporate assets     5,655       9,358  
    $ 723,232     $ 720,296