Operating Segments

9 Months Ended

Sep. 30, 2019

Operating SegmentsAt September 30, 2019 and 2018, the Company had two segments: distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry) and fuel grade alcohol. The distillery products segment also includes warehouse services, including barrel put away, storage, retrieval, and blending services. Ingredient solutions segment consists of specialty starches and proteins and commodity starches and proteins.

Operating profit for each segment is based on sales less identifiable operating expenses. Non-direct SG&A, interest expense, other special charges, and other general miscellaneous expenses are excluded from segment operations and are classified as Corporate. Receivables, inventories, and equipment have been identified with the segments to which they relate. All other assets are considered as Corporate.


	Quarter Ended September 30,						Year to Date Ended September 30,
	2019		2018		2019		2018
Sales to Customers
Distillery products	$	73,295	$	78,336	$	221,895	$	225,365
Ingredient solutions	17,390		16,695		48,387		45,874
Total	$	90,685	$	95,031	$	270,282	$	271,239

Gross Profit
Distillery products	$	15,905	$	16,269	$	47,647	$	48,819
Ingredient solutions	2,885		3,330		7,325		9,172
Total	$	18,790	$	19,599	$	54,972	$	57,991

Depreciation and Amortization
Distillery products	$	2,274	$	2,067	$	6,628	$	6,565
Ingredient solutions	384		369		1,123		1,182
Corporate	277		267		786		782
Total	$	2,935	$	2,703	$	8,537	$	8,529

Income (loss) before Income Taxes
Distillery products	$	14,180	$	14,344	$	42,481	$	43,298
Ingredient solutions	2,226		2,671		5,326		7,236
Corporate	(5,166)		(5,334)		(17,753)		(17,828)
Total	$	11,240	$	11,681	$	30,054	$	32,706

The following table allocates assets to each segment as of:


	September 30, 2019		December 31, 2018
Identifiable Assets
Distillery products	$	253,371	$	223,890
Ingredient solutions	31,762		35,147
Corporate	21,887		18,855
Total	$	307,020	$	277,892