Segments

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net Sales
Pekin Campus, recorded as gross:
Alcohol sales	$	133,680		$	114,587		$	393,498		$	341,967
Essential ingredient sales		54,537			46,016			169,670			140,670
Intersegment sales		332			293			857			919
Total Pekin Campus sales		188,549			160,896			564,025			483,556
Marketing and distribution:
Alcohol sales, gross	$	55,262		$	112,391		$	172,746		$	255,702
Alcohol sales, net		308			505			975			1,489
Intersegment sales		3,121			2,415			9,360			7,277
Total marketing and distribution sales		58,691			115,311			183,081			264,468
Other production, recorded as gross:
Alcohol sales	$	64,492		$	25,190		$	191,483		$	63,311
Essential ingredient sales		24,439			6,867			66,748			19,261
Intersegment sales		3			259			14			896
Total Other production sales		88,934			32,316			258,245			83,468
Corporate and other		4,159			—			12,064			—
Intersegment eliminations		(3,456	)		(2,967	)		(10,231	)		(9,092	)
Net sales as reported	$	336,877		$	305,556		$	1,007,184		$	822,400
Cost of goods sold:
Pekin Campus	$	207,939		$	169,721		$	572,512		$	468,972
Marketing and distribution		55,159			105,902			173,670			245,606
Other production		91,663			35,613			261,514			87,055
Corporate and other		2,925			—			8,995			—
Intersegment eliminations		(970	)		(2,281	)		(3,285	)		(4,904	)
Cost of goods sold as reported	$	356,716		$	308,955		$	1,013,406		$	796,729
Gross profit (loss):
Pekin Campus	$	(19,390	)	$	(8,825	)	$	(8,487	)	$	14,584
Marketing and distribution		3,532			9,409			9,411			18,862
Other production		(2,729	)		(3,297	)		(3,269	)		(3,587	)
Corporate and other		1,234			—			3,069			—
Intersegment eliminations		(2,486	)		(686	)		(6,946	)		(4,188	)
Gross profit (loss) as reported	$	(19,839	)	$	(3,399	)	$	(6,222	)	$	25,671
Income (loss) before provision for income taxes:
Pekin Campus	$	(22,664	)	$	(11,830	)	$	(6,252	)	$	8,907
Marketing and distribution		1,622			7,517			3,444			12,929
Other production		(4,958	)		(4,856	)		1,404			(12,467	)
Corporate and other		(2,038	)		6,037			(7,121	)		567
	$	(28,038	)	$	(3,132	)	$	(8,525	)	$	9,936
Depreciation and amortization of intangibles:
Pekin Campus	$	4,758		$	4,372		$	14,381		$	13,043
Other production		1,273			1,468			4,095			4,433
Corporate and other		229			11			646			44
	$	6,260		$	5,851		$	19,122		$	17,520
Interest expense, net of capitalized interest:
Pekin Campus	$	(48	)	$	176		$	(81	)	$	767
Marketing and distribution		487			295			1,060			721
Other production		(74	)		—			(128	)		182
Corporate and other		(25	)		(42	)		8			1,689
	$	340		$	429		$	859		$	3,359

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

	September 30, 2022		December 31, 2021
Total assets:
Pekin Campus	$	247,449	$	266,197
Marketing and distribution		111,900		130,302
Other production		63,904		57,046
Corporate and other		31,415		31,408
	$	454,668	$	484,953