Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS

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SEGMENTS
9 Months Ended
Sep. 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
September 30,
    Nine Months Ended
September 30,
 
    2018     2017     2018     2017  
                         
Net Sales                                
Production, recorded as gross:                                
Ethanol/alcohol sales   $ 216,788     $ 236,326     $ 670,304     $ 618,438  
Co-product sales     73,259       68,487       226,307       185,574  
Intersegment sales     518       639       1,531       1,138  
Total production sales     290,565       305,452       898,142       805,150  
                                 
Marketing:                                
Ethanol/alcohol sales, gross   $ 79,877     $ 140,208     $ 282,940     $ 431,733  
Ethanol/alcohol sales, net     483       421       1,405       1,239  
Intersegment sales     2,201       2,334       6,757       6,135  
Total marketing sales     82,561       142,963       291,102       439,107  
                                 
Intersegment eliminations     (2,719 )     (2,973 )     (8,288 )     (7,273 )
Net sales as reported   $ 370,407     $ 445,442     $ 1,180,956     $ 1,236,984  
                                 
Cost of goods sold:                        
Production   $ 295,574     $ 294,047     $ 914,638     $ 799,203  
Marketing and distribution     73,784       142,303       268,917       437,109  
Intersegment eliminations     (2,719 )     (2,973 )     (8,456 )     (7,273 )
Cost of goods sold as reported   $ 366,639     $ 433,377     $ 1,175,099     $ 1,229,039  
                         
Income (loss) before benefit for income taxes:                        
Production   $ (15,571 )   $ 2,638     $ (45,355 )   $ (15,981 )
Marketing and distribution     7,416       (757 )     18,095       (2,043 )
Corporate activities     (1,149 )     (2,422 )     (6,708 )     (5,940 )
    $ (9,304 )   $ (541 )   $ (33,968 )   $ (23,964 )
Depreciation and amortization:                                
Production   $ 10,040     $ 9,841     $ 30,017     $ 27,703  
Corporate activities     177       237       618       783  
    $ 10,217     $ 10,078     $ 30,635     $ 28,486  
Interest expense:                        
Production   $ 1,692     $ 1,850     $ 5,416     $ 4,061  
Marketing and distribution     344       342       1,042       953  
Corporate activities     2,157       1,634       6,417       4,143  
    $ 4,193     $ 3,826     $ 12,875     $ 9,157  

  

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

  

    September 30, 2018     December 31, 2017  
Total assets:                
Production   $ 545,360     $ 583,696  
Marketing and distribution     139,165       127,242  
Corporate assets     4,022       9,358  
    $ 688,547     $ 720,296