| SEGMENTS |
2. SEGMENTS.
The
Company reports its financial and operating performance in three segments: (1) Pekin Campus production, which includes the production
and sale of alcohols and essential ingredients produced at the Company’s Pekin, Illinois 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) Western production, which includes the production and sale of fuel-grade ethanol
and essential ingredients produced at the Company’s two western production facilities on an aggregated basis, neither of which
are individually so significant 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
March 31, |
|
| |
|
2024 |
|
|
2023 |
|
| Net Sales |
|
|
|
|
|
|
| Pekin Campus production, recorded as gross: |
|
|
|
|
|
|
| Alcohol sales |
|
$ |
108,350 |
|
|
$ |
132,381 |
|
| Essential ingredient sales |
|
|
46,709 |
|
|
|
63,631 |
|
| Intersegment sales |
|
|
321 |
|
|
|
313 |
|
| Total Pekin Campus sales |
|
|
155,380 |
|
|
|
196,325 |
|
| Marketing and distribution: |
|
|
|
|
|
|
|
|
| Alcohol sales, gross |
|
$ |
54,431 |
|
|
$ |
84,381 |
|
| Alcohol sales, net |
|
|
34 |
|
|
|
114 |
|
| Intersegment sales |
|
|
2,752 |
|
|
|
2,843 |
|
| Total marketing and distribution sales |
|
|
57,217 |
|
|
|
87,338 |
|
| Western production, recorded as gross: |
|
|
|
|
|
|
|
|
| Alcohol sales |
|
$ |
20,231 |
|
|
$ |
20,932 |
|
| Essential ingredient sales |
|
|
7,826 |
|
|
|
8,353 |
|
| Intersegment sales |
|
|
— |
|
|
|
1 |
|
| Total Western production sales |
|
|
28,057 |
|
|
|
29,286 |
|
| |
|
|
|
|
|
|
|
|
| Corporate and other |
|
|
3,048 |
|
|
|
4,099 |
|
| Intersegment eliminations |
|
|
(3,073 |
) |
|
|
(3,157 |
) |
| Net sales as reported |
|
$ |
240,629 |
|
|
$ |
313,891 |
|
| Cost of goods sold: |
|
|
|
|
|
|
|
|
| Pekin Campus production |
|
$ |
151,112 |
|
|
$ |
198,178 |
|
| Marketing and distribution |
|
|
53,685 |
|
|
|
83,126 |
|
| Western production |
|
|
36,517 |
|
|
|
33,982 |
|
| Corporate and other |
|
|
2,794 |
|
|
|
2,369 |
|
| Intersegment eliminations |
|
|
(1,079 |
) |
|
|
(600 |
) |
| Cost of goods sold as reported |
|
$ |
243,029 |
|
|
$ |
317,055 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit (loss): |
|
|
|
|
|
|
|
|
| Pekin Campus production |
|
$ |
4,268 |
|
|
$ |
(1,853 |
) |
| Marketing and distribution |
|
|
3,532 |
|
|
|
4,212 |
|
| Western production |
|
|
(8,460 |
) |
|
|
(4,696 |
) |
| Corporate and other |
|
|
254 |
|
|
|
1,730 |
|
| Intersegment eliminations |
|
|
(1,994 |
) |
|
|
(2,557 |
) |
| Gross loss as reported |
|
$ |
(2,400 |
) |
|
$ |
(3,164 |
) |
| |
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes: |
|
|
|
|
|
|
|
|
| Pekin Campus production |
|
$ |
108 |
|
|
$ |
(5,117 |
) |
| Marketing and distribution |
|
|
1,305 |
|
|
|
2,010 |
|
| Western production |
|
|
(10,976 |
) |
|
|
(5,698 |
) |
| Corporate and other |
|
|
(2,162 |
) |
|
|
(4,361 |
) |
| |
|
$ |
(11,725 |
) |
|
$ |
(13,166 |
) |
| Depreciation and amortization expense: |
|
|
|
|
|
|
|
|
| Pekin Campus production |
|
$ |
5,035 |
|
|
$ |
4,819 |
|
| Western production |
|
|
465 |
|
|
|
1,009 |
|
| Corporate and other |
|
|
228 |
|
|
|
227 |
|
| |
|
$ |
5,728 |
|
|
$ |
6,055 |
|
| Interest expense, net of capitalized interest: |
|
|
|
|
|
|
|
|
| Pekin Campus production |
|
$ |
261 |
|
|
$ |
(485 |
) |
| Marketing and distribution |
|
|
96 |
|
|
|
494 |
|
| Western production |
|
|
630 |
|
|
|
(354 |
) |
| Corporate and other |
|
|
647 |
|
|
|
1,910 |
|
| |
|
$ |
1,634 |
|
|
$ |
1,565 |
|
The
following table sets forth the Company’s total assets by operating segment (in thousands):
| |
|
March 31, 2024 |
|
|
December 31,
2023 |
|
| Total assets: |
|
|
|
|
|
|
| Pekin Campus production |
|
$ |
250,773 |
|
|
$ |
251,048 |
|
| Marketing and distribution |
|
|
92,747 |
|
|
|
101,196 |
|
| Western production |
|
|
52,755 |
|
|
|
57,533 |
|
| Corporate and other |
|
|
38,360 |
|
|
|
44,464 |
|
| |
|
$ |
434,635 |
|
|
$ |
454,241 |
|
|