| Segments |
The Company
reports its financial and operating performance in two segments: (1) ethanol production, which includes the production and sale
of ethanol and co-products, with all eight of the Company’s production facilities aggregated, and (2) marketing and distribution,
which includes marketing and merchant trading for Company-produced ethanol 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, |
|
| |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales to external customers |
|
$ |
266,299 |
|
|
$ |
248,158 |
|
|
$ |
767,171 |
|
|
$ |
456,114 |
|
| Intersegment net sales |
|
|
306 |
|
|
|
251 |
|
|
|
829 |
|
|
|
336 |
|
| Total production segment net sales |
|
|
266,605 |
|
|
|
248,409 |
|
|
|
768,000 |
|
|
|
456,450 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net sales to external customers |
|
|
151,507 |
|
|
|
132,464 |
|
|
|
415,868 |
|
|
|
358,304 |
|
| Intersegment net sales |
|
|
2,018 |
|
|
|
1,792 |
|
|
|
5,861 |
|
|
|
3,364 |
|
| Total marketing and distribution net sales |
|
|
153,525 |
|
|
|
134,256 |
|
|
|
421,729 |
|
|
|
361,668 |
|
| Intersegment eliminations |
|
|
(2,324 |
) |
|
|
(2,043 |
) |
|
|
(6,690 |
) |
|
|
(3,699 |
) |
| Net sales as reported |
|
$ |
417,806 |
|
|
$ |
380,622 |
|
|
$ |
1,183,039 |
|
|
$ |
814,419 |
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
262,964 |
|
|
$ |
261,069 |
|
|
$ |
759,210 |
|
|
$ |
468,229 |
|
| Marketing and distribution |
|
|
153,406 |
|
|
|
130,756 |
|
|
|
412,225 |
|
|
|
357,337 |
|
| Intersegment eliminations |
|
|
(4,928 |
) |
|
|
(3,823 |
) |
|
|
(13,533 |
) |
|
|
(9,034 |
) |
| Cost of goods sold as reported |
|
$ |
411,442 |
|
|
$ |
388,002 |
|
|
$ |
1,157,902 |
|
|
$ |
816,532 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before provision for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
(2,903 |
) |
|
$ |
(22,154 |
) |
|
$ |
(19,171 |
) |
|
$ |
(26,352 |
) |
| Marketing and distribution |
|
|
(1,524 |
) |
|
|
1,970 |
|
|
|
4,654 |
|
|
|
(161 |
) |
| Corporate activities |
|
|
909 |
|
|
|
1,596 |
|
|
|
2,614 |
|
|
|
2,298 |
|
| |
|
$ |
(3,518 |
) |
|
$ |
(18,588 |
) |
|
$ |
(11,903 |
) |
|
$ |
(24,215 |
) |
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
8,631 |
|
|
$ |
8,195 |
|
|
$ |
25,839 |
|
|
$ |
14,585 |
|
| Marketing and distribution |
|
|
– |
|
|
|
5 |
|
|
|
3 |
|
|
|
147 |
|
| Corporate activities |
|
|
226 |
|
|
|
155 |
|
|
|
684 |
|
|
|
371 |
|
| |
|
$ |
8,857 |
|
|
$ |
8,355 |
|
|
$ |
26,526 |
|
|
$ |
15,103 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
3,521 |
|
|
$ |
4,987 |
|
|
$ |
15,600 |
|
|
$ |
6,831 |
|
| Marketing and distribution |
|
|
353 |
|
|
|
180 |
|
|
|
1,043 |
|
|
|
356 |
|
| Corporate activities |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
| |
|
$ |
3,874 |
|
|
$ |
5,167 |
|
|
$ |
16,643 |
|
|
$ |
7,187 |
|
The following
table sets forth the Company’s total assets by operating segment (in thousands):
| |
|
|
|
| |
|
September 30, 2016 |
|
|
December 31, 2015 |
|
| Total
assets: |
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
512,285 |
|
|
$ |
536,013 |
|
| Marketing and distribution |
|
|
128,895 |
|
|
|
107,069 |
|
| Corporate assets |
|
|
15,946 |
|
|
|
31,598 |
|
| |
|
$ |
657,126 |
|
|
$ |
674,680 |
|
|