Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.22.2
Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
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
June 30,		     Six Months Ended
June 30,		  
    2022     2021     2022     2021  
Net Sales                        
Pekin Campus, recorded as gross:                        
Alcohol sales   $ 143,768     $ 132,296     $ 259,818     $ 227,380  
Essential ingredient sales     59,853       49,578       115,133       94,655  
Intersegment sales     269       316       525       628  
Total Pekin Campus sales     203,890       182,190       375,476       322,663  
                                 
Marketing and distribution:                                
Alcohol sales, gross   $ 63,558     $ 86,299     $ 117,484     $ 143,309  
Alcohol sales, net     317       532       668       984  
Intersegment sales     3,242       2,618       6,239       4,862  
Total marketing and distribution sales     67,117       89,449       124,391       149,155  
                                 
Other production, recorded as gross:                                
Alcohol sales   $ 67,184     $ 22,153     $ 126,991     $ 38,121  
Essential ingredient sales     23,372       7,252       42,309       12,395  
Intersegment sales     —       332       12       637  
Total Other production sales     90,556       29,737       169,312       51,153  
                                 
Corporate and other     4,137       —       7,904       —  
Intersegment eliminations     (3,511 )     (3,266 )     (6,776 )     (6,127 )
Net sales as reported   $ 362,189     $ 298,110     $ 670,307     $ 516,844  
                                 
Cost of goods sold:                                
Pekin Campus   $ 195,691     $ 171,547     $ 364,573     $ 299,250  
Marketing and distribution     63,796       85,746       118,510       139,705  
Other production     91,606       27,325       169,851       51,442  
Corporate and other     3,197       —       6,070       —  
Intersegment eliminations     (945 )     (1,741 )     (2,314 )     (2,623 )
Cost of goods sold as reported   $ 353,345     $ 282,877     $ 656,690     $ 487,774  
                                 
Gross profit:                                
Pekin Campus   $ 8,199     $ 10,643     $ 10,903     $ 23,413  
Marketing and distribution     3,321       3,703       5,881       9,450  
Other production     (1,050 )     2,412       (539 )     (289 )
Corporate and other     940       —       1,834       —  
Intersegment eliminations     (2,566 )     (1,525 )     (4,462 )     (3,504 )
Gross profit as reported   $ 8,844     $ 15,233     $ 13,617     $ 29,070  
                                 
Income before provision for income taxes:                                
Pekin Campus   $ 16,331     $ 10,726     $ 16,413     $ 20,737  
Marketing and distribution     1,036       1,678       1,824       5,411  
Other production     7,570       (1,666 )     6,361       (7,612 )
Corporate and other     (2,822 )     (2,348 )     (5,085 )     (5,468 )
    $ 22,115     $ 8,390     $ 19,513     $ 13,068  
                                 
Depreciation and amortization of intangibles:                                
Pekin Campus   $ 5,084     $ 4,326     $ 9,621     $ 8,671  
Other production     1,458       1,468       2,822       2,966  
Corporate and other     186       17       419       33  
    $ 6,728     $ 5,811     $ 12,862     $ 11,670  
                                 
Interest expense, net of capitalized interest:                                
Pekin Campus   $ (3 )   $ 73     $ (33 )   $ 591  
Marketing and distribution     336       222       573       426  
Other production     (39 )     46       (54 )     182  
Corporate and other     25       704       33       1,731  
    $ 319     $ 1,045     $ 519     $ 2,930  

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

 

    June 30,
2022		     December 31,
2021		  
Total assets:            
Pekin Campus   $ 273,688     $ 266,197  
Marketing and distribution     149,564       130,302  
Other production     64,467       57,046  
Corporate and other     43,600       31,408  
    $ 531,319     $ 484,953