Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.23.2
Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENTS

2. 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 sales of fuel-grade ethanol sourced from third parties (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 fuel-grade ethanol 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 separately 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,		  
    2023     2022     2023     2022  
Net Sales                        
Pekin Campus, recorded as gross:                        
Alcohol sales   $ 127,694     $ 143,768     $ 260,075     $ 259,818  
Essential ingredient sales     53,954       59,853       117,585       115,133  
Intersegment sales     444       269       757       525  
Total Pekin Campus sales     182,092       203,890       378,417       375,476  
                                 
Marketing and distribution:                                
Alcohol sales, gross   $ 72,589     $ 63,558     $ 156,936     $ 117,484  
Alcohol sales, net     104       317       218       668  
Intersegment sales     2,499       3,242       5,342       6,239  
Total marketing and distribution sales     75,192       67,117       162,496       124,391  
                                 
Other production, recorded as gross:                                
Alcohol sales   $ 44,384     $ 67,184     $ 65,316     $ 126,991  
Essential ingredient sales     14,421       23,372       22,773       42,309  
Intersegment sales     62      
—
       62       12  
Total Other production sales     58,867       90,556       88,151       169,312  
                                 
Corporate and other     4,151       4,137       8,285       7,904  
Intersegment eliminations     (3,005 )     (3,511 )     (6,161 )     (6,776 )
Net sales as reported   $ 317,297     $ 362,189     $ 631,188     $ 670,307  
                                 
Cost of goods sold:                                
Pekin Campus   $ 168,419     $ 195,691     $ 366,596     $ 364,573  
Marketing and distribution     71,746       63,796       154,871       118,510  
Other production     57,834       91,606       91,815       169,851  
Corporate and other     3,414       3,197       5,786       6,070  
Intersegment eliminations     (1,297 )     (945 )     (1,897 )     (2,314 )
Cost of goods sold as reported   $ 300,116     $ 353,345     $ 617,171     $ 656,690  
                                 
Gross profit:                                
Pekin Campus   $ 13,673     $ 8,199     $ 11,821     $ 10,903  
Marketing and distribution     3,446       3,321       7,625       5,881  
Other production     1,033       (1,050 )     (3,664 )     (539 )
Corporate and other     737       940       2,499       1,834  
Intersegment eliminations     (1,708 )     (2,566 )     (4,264 )     (4,462 )
Gross profit as reported   $ 17,181     $ 8,844     $ 14,017     $ 13,617  
                                 
Income (loss) before provision for income taxes:                                
Pekin Campus   $ 10,790     $ 16,331     $ 5,672     $ 16,413  
Marketing and distribution     1,607       1,036       3,618       1,824  
Other production     (783 )     7,570       (6,484 )     6,361  
Corporate and other     (4,019 )     (2,822 )     (8,377 )     (5,085 )
    $ 7,595     $ 22,115     $ (5,571 )   $ 19,513  
Depreciation and amortization of intangibles:                                
Pekin Campus   $ 4,998     $ 5,084     $ 9,816     $ 9,621  
Other production     455       1,458       1,464       2,822  
Corporate and other     228       186       455       419  
    $ 5,681     $ 6,728     $ 11,735     $ 12,862  
Interest expense, net of capitalized interest:                                
Pekin Campus   $ (151 )   $ (3 )   $ (635 )   $ (33 )
Marketing and distribution     109       336       604       573  
Other production     (151 )     (39 )     (508 )     (54 )
Corporate and other     1,927       25       3,838       33  
    $ 1,734     $ 319     $ 3,299     $ 519  

 

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

 

    June 30,
2023		     December 31,
2022		  
Total assets:            
Pekin Campus   $ 253,220     $ 257,089  
Marketing and distribution     122,368       114,755  
Other production     54,326       51,886  
Corporate and other     41,496       54,591  
    $ 471,410     $ 478,321