Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS.

v3.19.2
SEGMENTS.
6 Months Ended
Jun. 30, 2019
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,
 
    2019     2018     2019     2018  
                         
Net Sales                        
Production, recorded as gross:                        
Ethanol/alcohol sales   $ 194,394     $ 233,888     $ 373,783     $ 453,517  
Co-product sales     64,679       78,514       133,485       153,048  
Intersegment sales     421       539       784       1,013  
Total production sales     259,494       312,941       508,052       607,578  
                                 
Marketing and distribution:                                
Ethanol/alcohol sales, gross   $ 86,754     $ 97,634     $ 193,908     $ 203,063  
Ethanol/alcohol sales, net     474       486       928       921  
Intersegment sales     1,942       2,330       3,760       4,555  
Total marketing and distribution sales     89,170       100,450       198,596       208,539  
                                 
Intersegment eliminations     (2,363 )     (2,869 )     (4,544 )     (5,568 )
Net sales as reported   $ 346,301     $ 410,522     $ 702,104     $ 810,549  
                                 
Cost of goods sold:                        
Production   $ 257,187     $ 320,631     $ 515,782     $ 619,064  
Marketing and distribution     87,741       94,203       189,569       195,135  
Intersegment eliminations     (2,598 )     (3,039 )     (4,929 )     (5,739 )
Cost of goods sold as reported   $ 342,330     $ 411,795     $ 700,422     $ 808,460  
                         
Income (loss) before benefit for income taxes:                        
Production   $ (7,117 )   $ (17,339 )   $ (24,683 )   $ (29,609 )
Marketing and distribution     (129 )     4,929       5,989       10,677  
Corporate activities     (1,044 )     (2,194 )     (3,757 )     (5,732 )
    $ (8,290 )   $ (14,604 )   $ (22,451 )   $ (24,664 )
                                 
Depreciation and amortization:                                
Production   $ 10,199     $ 10,045     $ 23,681     $ 19,977  
Corporate activities     113       208       234       441  
    $ 10,312     $ 10,253     $ 23,915     $ 20,418  
                                 
Interest expense:                        
Production   $ 2,048     $ 1,700     $ 3,755     $ 3,724  
Marketing and distribution     774       336       1,362       699  
Corporate activities     2,293       2,141       4,734       4,259  
    $ 5,115     $ 4,177     $ 9,851     $ 8,682  

 

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

 

    June 30,
2019
    December 31,
2018
 
Total assets:            
Production   $ 550,004     $ 532,790  
Marketing and distribution     119,948       112,984  
Corporate assets     15,868       14,117  
    $ 685,820     $ 659,891