| 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, |
|
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production, recorded as gross: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol/alcohol sales |
|
$ |
233,888 |
|
|
$ |
197,657 |
|
|
$ |
453,517 |
|
|
$ |
382,112 |
|
| Co-product sales |
|
|
78,514 |
|
|
|
58,468 |
|
|
|
153,048 |
|
|
|
117,087 |
|
| Intersegment sales |
|
|
539 |
|
|
|
188 |
|
|
|
1,013 |
|
|
|
499 |
|
| Total production sales |
|
|
312,941 |
|
|
|
256,313 |
|
|
|
607,578 |
|
|
|
499,698 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol/alcohol sales, gross |
|
$ |
97,634 |
|
|
$ |
148,644 |
|
|
$ |
203,063 |
|
|
$ |
291,526 |
|
| Ethanol/alcohol sales, net |
|
|
486 |
|
|
|
433 |
|
|
|
921 |
|
|
|
817 |
|
| Intersegment sales |
|
|
2,330 |
|
|
|
1,963 |
|
|
|
4,555 |
|
|
|
3,800 |
|
| Total marketing sales |
|
|
100,450 |
|
|
|
151,040 |
|
|
|
208,539 |
|
|
|
296,143 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intersegment eliminations |
|
|
(2,869 |
) |
|
|
(2,151 |
) |
|
|
(5,568 |
) |
|
|
(4,299 |
) |
| Net sales as reported |
|
$ |
410,522 |
|
|
$ |
405,202 |
|
|
$ |
810,549 |
|
|
$ |
791,542 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
320,631 |
|
|
$ |
254,570 |
|
|
$ |
619,064 |
|
|
$ |
505,155 |
|
| Marketing and distribution |
|
|
94,203 |
|
|
|
151,130 |
|
|
|
195,135 |
|
|
|
294,806 |
|
| Intersegment eliminations |
|
|
(3,039 |
) |
|
|
(2,151 |
) |
|
|
(5,739 |
) |
|
|
(4,299 |
) |
| Cost of goods sold as reported |
|
$ |
411,795 |
|
|
$ |
403,549 |
|
|
$ |
808,460 |
|
|
$ |
795,662 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before benefit for income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
(17,210 |
) |
|
$ |
(6,304 |
) |
|
$ |
(29,609 |
) |
|
$ |
(18,619 |
) |
| Marketing and distribution |
|
|
4,929 |
|
|
|
(1,435 |
) |
|
|
10,677 |
|
|
|
(1,286 |
) |
| Corporate activities |
|
|
(2,323 |
) |
|
|
(2,199 |
) |
|
|
(5,732 |
) |
|
|
(3,518 |
) |
| |
|
$ |
(14,604 |
) |
|
$ |
(9,938 |
) |
|
$ |
(24,664 |
) |
|
$ |
(23,423 |
) |
| Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
10,045 |
|
|
$ |
9,016 |
|
|
$ |
19,977 |
|
|
$ |
17,862 |
|
| Corporate activities |
|
|
208 |
|
|
|
283 |
|
|
|
441 |
|
|
|
546 |
|
| |
|
$ |
10,253 |
|
|
$ |
9,299 |
|
|
$ |
20,418 |
|
|
$ |
18,408 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
$ |
1,700 |
|
|
$ |
1,119 |
|
|
$ |
3,724 |
|
|
$ |
2,211 |
|
| Marketing and distribution |
|
|
336 |
|
|
|
302 |
|
|
|
699 |
|
|
|
610 |
|
| Corporate activities |
|
|
2,141 |
|
|
|
1,273 |
|
|
|
4,259 |
|
|
|
2,510 |
|
| |
|
$ |
4,177 |
|
|
$ |
2,694 |
|
|
$ |
8,682 |
|
|
$ |
5,331 |
|
The following table sets forth the Company’s
total assets by operating segment (in thousands):
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
| Total assets: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Production |
|
$ |
567,322 |
|
|
$ |
583,696 |
|
| Marketing and distribution |
|
|
150,255 |
|
|
|
127,242 |
|
| Corporate assets |
|
|
5,655 |
|
|
|
9,358 |
|
| |
|
$ |
723,232 |
|
|
$ |
720,296 |
|