Operating Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Operating Segments

Operating Segments

At March 31, 2024, the Company had three segments: Distilling Solutions, Branded Spirits, and Ingredient Solutions. The Company’s reportable segments are based on the financial information the chief operating decision maker, the Company’s Chief Executive Officer, uses to allocate resources and evaluate performance of the business. The Distilling Solutions segment consists of food grade alcohol (primarily brown goods) and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry). The Distilling Solutions segment also includes warehouse services, such as barrel put away, barrel storage, and barrel retrieval services. The Branded Spirits segment consists of a portfolio of high quality branded spirits which are produced through the distilleries and bottling facilities. The Ingredient Solutions segment consists of specialty starches and proteins as well as commodity starches and proteins. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.

Operating profit for each segment is based on sales less identifiable operating expenses.  Non-direct selling, general, and administrative expenses, interest expense, and other general miscellaneous expenses are excluded from segment operations and are classified as Corporate.  Receivables, inventories, property, plant and equipment, leases, goodwill, and intangible assets

have been identified with the segments to which they relate.  All other assets are considered as Corporate.

The following table presents summarized financial information for each segment:

	Quarter Ended March 31,
	2024		2023
Sales to Customers
Distilling Solutions	$	84,852	$	113,223
Branded Spirits	50,146		56,883
Ingredient Solutions	35,565		30,904
Total	$	170,563	$	201,010
Gross Profit
Distilling Solutions	$	34,083	$	33,028
Branded Spirits	22,532		24,593
Ingredient Solutions	6,180		12,203
Total	$	62,795	$	69,824
Depreciation and Amortization
Distilling Solutions	$	1,957	$	2,851
Branded Spirits	1,823		1,491
Ingredient Solutions	1,169		658
Corporate	340		171
Total	$	5,289	$	5,171
Income (loss) before Income Taxes
Distilling Solutions	$	33,069	$	32,301
Branded Spirits	908		9,157
Ingredient Solutions	4,720		10,846
Corporate	(11,851)		(11,617)
Total	$	26,846	$	40,687

The following table allocates assets to each segment as of:

	March 31, 2024		December 31, 2023
Identifiable Assets
Distilling Solutions	$	347,240	$	369,241
Branded Spirits	889,588		910,633
Ingredient Solutions	120,076		88,846
Corporate	33,378		23,628
Total	$	1,390,282	$	1,392,348