| 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 |
|
|