Note 3 - Investment in Joint Ventures

9 Months Ended

Sep. 30, 2012

The Companys Equity In Earnings Loss Of Joint Ventures [Text Block]

Note 3.  Investment in Joint Ventures.

At September 30, 2012, the Company’s investments accounted for using the equity method of accounting consisted of the following: (1) 30 percent interest in Illinois Corn Processing, LLC (“ICP”), which operates a distillery, and (2) 50 percent interest in D.M. Ingredients, GmbH (“DMI”), which produces certain specialty starch and protein ingredients.   

On February 1, 2012, Illinois Corn Processing Holdings (“ICP Holdings”), an affiliate of SEACOR Energy, Inc., exercised its option to purchase from the Company an additional 20 percent of the membership interest in ICP.  The proceeds for this sale approximated $9,103.  Following its exercise, ICP Holdings owns 70 percent of ICP, is entitled to name 4 of ICP’s 6 advisory board members, and generally has control of ICP’s day-to-day operations.  The Company owns 30 percent of ICP and is entitled to name two of ICP’s six advisory board members.   The transaction resulted in a pre-tax gain of $4,055, which was recorded during the quarter ended March 31, 2012.

Maximum Exposure to Loss

On January 29, 2010, ICP acquired the steam facility that services its operations for $5,000, of which approximately $2,000 remained payable at December 31, 2011.  On January 19, 2012, $1,000 was paid, equally by the Company and SEACOR Energy Inc., leaving at September 30, 2012, $1,000 still payable.  The Company’s portion of the remaining commitment of $500 plus the Company’s investment balance is the maximum exposure to losses.  A reconciliation from the Company’s investment in ICP to the entity’s maximum exposure to loss is as follows:

	September 30, 2012 (a)		December 31, 2011
Company’s investment balance in ICP	$	7,460	$	11,777
Plus:
Funding commitment for capital Improvements		500		1,000
The Company’s maximum exposure to loss related to ICP	$	7,960	$	12,777

(a)  The Company’s investment balance in ICP at September 30, 2012 reflects its sale of a 20 percent interest effective February 1, 2012.

Summary Financial Information

Condensed financial information of the Company’s non-consolidated equity method investment in ICP is shown below.

	Quarter Ended						Year to Date Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
ICP’s Operating results:
Net sales (a)	$	47,813		$	62,123		$	164,804		$	174,697
Cost of sales and expenses (b)		(48,261	)		(67,858	)		(164,493	)		(184,900	)
Net income (loss)	$	(448	)	$	(5,735	)	$	311		$	(10,203	)

(a) Includes related party sales to MGPI of $9,697 and $19,640 for the quarters ended September 30, 2012 and 2011, respectively, and $40,331 and $51,477 for the year to date periods ended September 30, 2012 and 2011, respectively.

(b) Includes depreciation and amortization of $1,259 and $1,375 for the quarters ended September 30, 2012 and 2011, respectively, and $3,778 and $3,958 for the year to date periods ended September 30, 2012 and 2011, respectively.

The Company’s equity in earnings (loss) of joint ventures is as follows:

	Quarter Ended						Year to Date Ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
ICP (30% interest)(a)	$	(134	)	$	(2,867	)	$	229		$	(5,101	)
DMI (50% interest)		4			37			(65	)		99
	$	(130	)	$	(2,830	)	$	164		$	(5,002	)

(a)  The Company’s ownership percentage of ICP was 50 percent through February 1, 2012, when the Company sold a 20 percent interest of its investment.  From February 2, 2012 through September 30, 2012, the Company’s ownership percentage in ICP was 30 percent.

The Company’s investment in joint ventures is as follows:

	September 30, 2012		December 31, 2011
ICP (30% interest) (a)	$	7,460	$	11,777
DMI (50% interest)		302		370
	$	7,762	$	12,147

(a)  The Company’s ownership percentage of ICP was 50 percent through February 1, 2012, when the Company sold a 20 percent interest of its investment.  From February 2, 2012 through September 30, 2012, the Company’s ownership percentage in ICP was 30 percent.