| SEGMENTS |
3. SEGMENTS.
The Company reports its financial and operating
performance in three segments: (1) marketing and distribution, which includes marketing and merchant trading for Company-produced alcohols
and essential ingredients on an aggregated basis and third-party fuel-grade ethanol sales (2) Pekin production, which includes the production
and sale of alcohols and essential ingredients produced at the Company’s Pekin, Illinois campus (“Pekin Campus”), and
(3) Other production, which includes the production and sale of renewable fuel and essential ingredients produced at all of the Company’s
other production facilities on an aggregated basis (“Other production”), none of which are individually so significant as
to be considered a reportable segment.
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, |
|
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus, recorded as gross: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales |
|
$ |
133,680 |
|
|
$ |
114,587 |
|
|
$ |
393,498 |
|
|
$ |
341,967 |
|
| Essential ingredient sales |
|
|
54,537 |
|
|
|
46,016 |
|
|
|
169,670 |
|
|
|
140,670 |
|
| Intersegment sales |
|
|
332 |
|
|
|
293 |
|
|
|
857 |
|
|
|
919 |
|
| Total Pekin Campus sales |
|
|
188,549 |
|
|
|
160,896 |
|
|
|
564,025 |
|
|
|
483,556 |
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales, gross |
|
$ |
55,262 |
|
|
$ |
112,391 |
|
|
$ |
172,746 |
|
|
$ |
255,702 |
|
| Alcohol sales, net |
|
|
308 |
|
|
|
505 |
|
|
|
975 |
|
|
|
1,489 |
|
| Intersegment sales |
|
|
3,121 |
|
|
|
2,415 |
|
|
|
9,360 |
|
|
|
7,277 |
|
| Total marketing and distribution sales |
|
|
58,691 |
|
|
|
115,311 |
|
|
|
183,081 |
|
|
|
264,468 |
|
| Other production, recorded as gross: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alcohol sales |
|
$ |
64,492 |
|
|
$ |
25,190 |
|
|
$ |
191,483 |
|
|
$ |
63,311 |
|
| Essential ingredient sales |
|
|
24,439 |
|
|
|
6,867 |
|
|
|
66,748 |
|
|
|
19,261 |
|
| Intersegment sales |
|
|
3 |
|
|
|
259 |
|
|
|
14 |
|
|
|
896 |
|
| Total Other production sales |
|
|
88,934 |
|
|
|
32,316 |
|
|
|
258,245 |
|
|
|
83,468 |
|
| Corporate and other |
|
|
4,159 |
|
|
|
— |
|
|
|
12,064 |
|
|
|
— |
|
| Intersegment eliminations |
|
|
(3,456 |
) |
|
|
(2,967 |
) |
|
|
(10,231 |
) |
|
|
(9,092 |
) |
| Net sales as reported |
|
$ |
336,877 |
|
|
$ |
305,556 |
|
|
$ |
1,007,184 |
|
|
$ |
822,400 |
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
207,939 |
|
|
$ |
169,721 |
|
|
$ |
572,512 |
|
|
$ |
468,972 |
|
| Marketing and distribution |
|
|
55,159 |
|
|
|
105,902 |
|
|
|
173,670 |
|
|
|
245,606 |
|
| Other production |
|
|
91,663 |
|
|
|
35,613 |
|
|
|
261,514 |
|
|
|
87,055 |
|
| Corporate and other |
|
|
2,925 |
|
|
|
— |
|
|
|
8,995 |
|
|
|
— |
|
| Intersegment eliminations |
|
|
(970 |
) |
|
|
(2,281 |
) |
|
|
(3,285 |
) |
|
|
(4,904 |
) |
| Cost of goods sold as reported |
|
$ |
356,716 |
|
|
$ |
308,955 |
|
|
$ |
1,013,406 |
|
|
$ |
796,729 |
|
| Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
(19,390 |
) |
|
$ |
(8,825 |
) |
|
$ |
(8,487 |
) |
|
$ |
14,584 |
|
| Marketing and distribution |
|
|
3,532 |
|
|
|
9,409 |
|
|
|
9,411 |
|
|
|
18,862 |
|
| Other production |
|
|
(2,729 |
) |
|
|
(3,297 |
) |
|
|
(3,269 |
) |
|
|
(3,587 |
) |
| Corporate and other |
|
|
1,234 |
|
|
|
— |
|
|
|
3,069 |
|
|
|
— |
|
| Intersegment eliminations |
|
|
(2,486 |
) |
|
|
(686 |
) |
|
|
(6,946 |
) |
|
|
(4,188 |
) |
| Gross profit (loss) as reported |
|
$ |
(19,839 |
) |
|
$ |
(3,399 |
) |
|
$ |
(6,222 |
) |
|
$ |
25,671 |
|
| Income (loss) before provision for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
(22,664 |
) |
|
$ |
(11,830 |
) |
|
$ |
(6,252 |
) |
|
$ |
8,907 |
|
| Marketing and distribution |
|
|
1,622 |
|
|
|
7,517 |
|
|
|
3,444 |
|
|
|
12,929 |
|
| Other production |
|
|
(4,958 |
) |
|
|
(4,856 |
) |
|
|
1,404 |
|
|
|
(12,467 |
) |
| Corporate and other |
|
|
(2,038 |
) |
|
|
6,037 |
|
|
|
(7,121 |
) |
|
|
567 |
|
| |
|
$ |
(28,038 |
) |
|
$ |
(3,132 |
) |
|
$ |
(8,525 |
) |
|
$ |
9,936 |
|
| Depreciation and amortization of intangibles: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
4,758 |
|
|
$ |
4,372 |
|
|
$ |
14,381 |
|
|
$ |
13,043 |
|
| Other production |
|
|
1,273 |
|
|
|
1,468 |
|
|
|
4,095 |
|
|
|
4,433 |
|
| Corporate and other |
|
|
229 |
|
|
|
11 |
|
|
|
646 |
|
|
|
44 |
|
| |
|
$ |
6,260 |
|
|
$ |
5,851 |
|
|
$ |
19,122 |
|
|
$ |
17,520 |
|
| Interest expense, net of capitalized interest: |
|
|
|
|
|
|
|
|
|
|
|
|
| Pekin Campus |
|
$ |
(48 |
) |
|
$ |
176 |
|
|
$ |
(81 |
) |
|
$ |
767 |
|
| Marketing and distribution |
|
|
487 |
|
|
|
295 |
|
|
|
1,060 |
|
|
|
721 |
|
| Other production |
|
|
(74 |
) |
|
|
— |
|
|
|
(128 |
) |
|
|
182 |
|
| Corporate and other |
|
|
(25 |
) |
|
|
(42 |
) |
|
|
8 |
|
|
|
1,689 |
|
| |
|
$ |
340 |
|
|
$ |
429 |
|
|
$ |
859 |
|
|
$ |
3,359 |
|
The following table sets forth the Company’s
total assets by operating segment (in thousands):
| |
|
September 30,
2022 |
|
|
December 31,
2021 |
|
| Total assets: |
|
|
|
|
|
|
| Pekin Campus |
|
$ |
247,449 |
|
|
$ |
266,197 |
|
| Marketing and distribution |
|
|
111,900 |
|
|
|
130,302 |
|
| Other production |
|
|
63,904 |
|
|
|
57,046 |
|
| Corporate and other |
|
|
31,415 |
|
|
|
31,408 |
|
| |
|
$ |
454,668 |
|
|
$ |
484,953 |
|
|