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