| SEGMENTS. |
The Company reports its financial and operating performance
in two segments: (1) production, which includes the production and sale of alcohols and essential ingredients, with all of the
Company’s production distilleries aggregated, and (2) marketing and distribution, which includes marketing and merchant trading
for Company-produced products as well as third-party fuel-grade 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, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| Production, recorded as gross: |
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales |
|
$ |
89,796 |
|
|
$ |
212,897 |
|
|
$ |
379,785 |
|
|
$ |
586,680 |
|
| Other product sales |
|
|
30,549 |
|
|
|
65,693 |
|
|
|
134,678 |
|
|
|
199,177 |
|
| Intersegment sales |
|
|
451 |
|
|
|
403 |
|
|
|
1,548 |
|
|
|
1,187 |
|
| Total production sales |
|
|
120,796 |
|
|
|
278,993 |
|
|
|
516,011 |
|
|
|
787,044 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales, gross |
|
$ |
84,000 |
|
|
$ |
86,124 |
|
|
$ |
212,625 |
|
|
$ |
280,032 |
|
| Alcohol sales, net |
|
|
382 |
|
|
|
446 |
|
|
|
1,117 |
|
|
|
1,375 |
|
| Intersegment sales |
|
|
698 |
|
|
|
2,079 |
|
|
|
3,483 |
|
|
|
5,839 |
|
| Total marketing and distribution sales |
|
|
85,080 |
|
|
|
88,649 |
|
|
|
217,225 |
|
|
|
287,246 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intersegment eliminations |
|
|
(1,149 |
) |
|
|
(2,482 |
) |
|
|
(5,031 |
) |
|
|
(7,026 |
) |
| Net sales as reported |
|
$ |
204,727 |
|
|
$ |
365,160 |
|
|
$ |
728,205 |
|
|
$ |
1,067,264 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
100,365 |
|
|
$ |
294,888 |
|
|
$ |
483,223 |
|
|
$ |
810,670 |
|
| Marketing and distribution |
|
|
84,581 |
|
|
|
87,976 |
|
|
|
210,792 |
|
|
|
277,545 |
|
| Intersegment eliminations |
|
|
(1,149 |
) |
|
|
(2,888 |
) |
|
|
(5,032 |
) |
|
|
(7,817 |
) |
| Cost of goods sold as reported |
|
$ |
183,797 |
|
|
$ |
379,976 |
|
|
$ |
688,983 |
|
|
$ |
1,080,398 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before benefit
for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
24,976 |
|
|
$ |
(25,999 |
) |
|
$ |
17,757 |
|
|
$ |
(50,682 |
) |
| Marketing and distribution |
|
|
(865 |
) |
|
|
(998 |
) |
|
|
1,740 |
|
|
|
4,991 |
|
| Corporate activities |
|
|
(8,896 |
) |
|
|
(2,076 |
) |
|
|
(16,584 |
) |
|
|
(5,833 |
) |
| |
|
$ |
15,215 |
|
|
$ |
(29,073 |
) |
|
$ |
2,913 |
|
|
$ |
(51,524 |
) |
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
8,620 |
|
|
$ |
11,833 |
|
|
$ |
26,558 |
|
|
$ |
35,390 |
|
| Corporate activities |
|
|
76 |
|
|
|
195 |
|
|
|
297 |
|
|
|
554 |
|
| |
|
$ |
8,696 |
|
|
$ |
12,028 |
|
|
$ |
26,855 |
|
|
$ |
35,944 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
1,383 |
|
|
$ |
1,969 |
|
|
$ |
5,121 |
|
|
$ |
5,724 |
|
| Marketing and distribution |
|
|
335 |
|
|
|
929 |
|
|
|
1,275 |
|
|
|
2,291 |
|
| Corporate activities |
|
|
2,481 |
|
|
|
2,265 |
|
|
|
7,757 |
|
|
|
6,999 |
|
| |
|
$ |
4,199 |
|
|
$ |
5,163 |
|
|
$ |
14,153 |
|
|
$ |
15,014 |
|
The
following table sets forth the Company’s total assets by operating segment (in thousands):
| |
|
September 30,
2020 |
|
|
December 31,
2019 |
|
| Total assets: |
|
|
|
|
|
|
| Production |
|
$ |
403,358 |
|
|
$ |
492,060 |
|
| Marketing and distribution |
|
|
69,174 |
|
|
|
106,863 |
|
| Corporate assets |
|
|
16,930 |
|
|
|
13,572 |
|
| |
|
$ |
489,462 |
|
|
$ |
612,495 |
|
|