Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.23.3
Segments
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENTS
2. SEGMENTS.

 

The Company reports its financial and operating performance in three segments: (1) Pekin production, which includes the production and sale of alcohols and essential ingredients produced at the Company’s Pekin, Illinois campus (“Pekin Campus”), (2) 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, 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
September 30,		     Nine Months Ended
September 30,		  
    2023     2022     2023     2022  
Net Sales                        
Pekin Campus, recorded as gross:                        
Alcohol sales   $ 128,554     $ 133,680     $ 388,629     $ 393,498  
Essential ingredient sales     51,634       54,537       169,220       169,670  
Intersegment sales     363       332       1,120       857  
Total Pekin Campus sales     180,551       188,549       558,969       564,025  
                                 
Marketing and distribution:                                
Alcohol sales, gross   $ 58,805     $ 55,262     $ 215,741     $ 172,746  
Alcohol sales, net     74       308       292       975  
Intersegment sales     3,392       3,121       8,734       9,360  
Total marketing and distribution sales     62,271       58,691       224,767       183,081  
                                 
Other production, recorded as gross:                                
Alcohol sales   $ 57,159     $ 64,492     $ 122,477     $ 191,483  
Essential ingredient sales     17,841       24,439       40,614       66,748  
Intersegment sales     37       3       99       14  
Total Other production sales     75,037       88,934       163,190       258,245  
                                 
Corporate and other     4,060       4,159       12,342       12,064  
Intersegment eliminations     (3,792 )     (3,456 )     (9,953 )     (10,231 )
Net sales as reported   $ 318,127     $ 336,877     $ 949,315     $ 1,007,184  
                                 
Cost of goods sold:                                
Pekin Campus   $ 179,995     $ 207,939     $ 546,591     $ 572,512  
Marketing and distribution     58,051       55,159       212,923       173,670  
Other production     73,584       91,663       165,401       261,514  
Corporate and other     3,538       2,925       9,322       8,995  
Intersegment eliminations     (1,202 )     (970 )     (3,100 )     (3,285 )
Cost of goods sold as reported   $ 313,966     $ 356,716     $ 931,137     $ 1,013,406  
                                 
Gross profit (loss):                                
Pekin Campus   $ 556     $ (19,390 )   $ 12,378     $ (8,487 )
Marketing and distribution     4,220       3,532       11,844       9,411  
Other production     1,453       (2,729 )     (2,211 )     (3,269 )
Corporate and other     522       1,234       3,020       3,069  
Intersegment eliminations     (2,590 )     (2,486 )     (6,853 )     (6,946 )
Gross profit (loss) as reported   $ 4,161     $ (19,839 )   $ 18,178     $ (6,222 )
                                 
Income (loss) before provision for income taxes:                                
Pekin Campus   $ (1,956 )   $ (22,664 )   $ 3,716     $ (6,252 )
Marketing and distribution     2,403       1,622       6,019       3,444  
Other production     (20 )     (4,958 )     (6,497 )     1,404  
Corporate and other     (3,916 )     (2,038 )     (12,298 )     (7,121 )
    $ (3,489 )   $ (28,038 )   $ (9,060 )   $ (8,525 )
Depreciation and amortization of intangibles:                                
Pekin Campus   $ 4,961     $ 4,758     $ 14,778     $ 14,381  
Other production     458       1,273       1,921       4,095  
Corporate and other     228       229       683       646  
    $ 5,647     $ 6,260     $ 17,382     $ 19,122  
Interest expense, net of capitalized interest:                                
Pekin Campus   $ 108     $ (48 )   $ (527 )   $ (81 )
Marketing and distribution     111       487       713       1,060  
Other production     678       (74 )     173       (128 )
Corporate and other     1,103       (25 )     4,940       8  
    $ 2,000     $ 340     $ 5,299     $ 859  

 

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

 

    September 30, 2023     December 31, 2022  
Total assets:            
Pekin Campus   $ 246,580     $ 257,089  
Marketing and distribution     113,797       114,755  
Other production     57,280       51,886  
Corporate and other     43,445       54,591  
    $ 461,102     $ 478,321