SEGMENT REPORTING |
SEGMENT REPORTING After the acquisition of the Mobile Refinery on April 1, 2022, the revenues of our Black Oil and Recovery segments are less than 10% of consolidated revenue. The Company decided to present our Black Oil and Recovery segment together during this reporting period. The Refining and Marketing segment consists primarily of the sale of gasoline, diesel and jet fuel produced at the Mobile Refinery as well as pygas and industrial fuels, which are produced at a third-party facility. The Black Oil and Recovery segment consists primarily of the sale of (a) petroleum products which include base oil and industrial fuels—which consist of used motor oils, cutterstock and fuel oil generated by our facilities; (b) oil collection services—which consist of used oil sales, burner fuel sales, antifreeze sales and service charges; (c) the sale of other re-refinery products including asphalt, condensate, recovered products, and used motor oil; (d) transportation revenues; (e) the sale of VGO (vacuum gas oil)/marine fuel; (f) the sale of ferrous and non-ferrous recyclable Metal(s) products that are recovered from manufacturing and consumption; and (g) revenues generated from trading/marketing of Group III Base Oils. The Black Oil segment includes the Heartland Business, which is presented herein as discontinued operations. We also disaggregate our revenue by product category for each of our segments, as we believe such disaggregation helps depict how our revenue and cash flows are affected by economic factors.
Segment information for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | THREE MONTHS ENDED SEPTEMBER 30, 2022 | | | Black Oil & Recovery | | Refining & Marketing | | Corporate and Eliminations | | Consolidated | Revenues: | | | | | | | | | Refined products | | $ | 37,607 | | | $ | 694,677 | | | $ | — | | | $ | 732,284 | | Re-refined products | | 5,550 | | | 69,948 | | | — | | | 75,498 | | Services | | 282 | | | 2,144 | | | — | | | 2,426 | | Total revenues | | 43,439 | | | 766,769 | | | — | | | 810,208 | | Cost of revenues (exclusive of depreciation and amortization shown separately below) | | 35,299 | | | 715,164 | | | — | | | 750,463 | | Depreciation and amortization attributable to costs of revenues | | 939 | | | 3,111 | | | — | | | 4,050 | | Gross profit | | 7,201 | | | 48,494 | | | — | | | 55,695 | | Selling, general and administrative expenses | | 4,919 | | | 27,988 | | | 4,071 | | | 36,978 | | Depreciation and amortization attributable to operating expenses | | 39 | | | 850 | | | 231 | | | 1,120 | | Income (loss) from operations | | $ | 2,243 | | | $ | 19,656 | | | $ | (4,302) | | | $ | 17,597 | | | | | | | | | | | Capital expenditures | | $ | 412 | | | $ | 26,333 | | | $ | — | | | $ | 26,745 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | THREE MONTHS ENDED SEPTEMBER 30, 2021 | | | Black Oil & Recovery | | Refining & Marketing | | Corporate and Eliminations | | Consolidated | Revenues: | | | | | | | | | Refined products | | $ | 20,339 | | | $ | 20,419 | | | $ | — | | | $ | 40,758 | | Re-refined products | | 5,237 | | | 4,153 | | | — | | | 9,390 | | Services | | 834 | | | — | | | — | | | 834 | | Total revenues | | 26,410 | | | 24,572 | | | — | | | 50,982 | | Cost of revenues (exclusive of depreciation and amortization shown separately below) | | 22,205 | | | 23,937 | | | — | | | 46,142 | | Depreciation and amortization attributable to costs of revenues | | 901 | | | 127 | | | — | | | 1,028 | | Gross profit | | 3,304 | | | 508 | | | — | | | 3,812 | | Selling, general and administrative expenses | | 3,618 | | | 1,034 | | | 3,525 | | | 8,177 | | Depreciation and amortization attributable to operating expenses | | 59 | | | 108 | | | 253 | | | 420 | | Loss from operations | | $ | (373) | | | $ | (634) | | | $ | (3,778) | | | $ | (4,785) | | | | | | | | | | | Capital expenditures | | $ | 228 | | | $ | — | | | $ | — | | | $ | 228 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | NINE MONTHS ENDED SEPTEMBER 30, 2022 | | | Black Oil & Recovery | | Refining & Marketing | | Corporate and Eliminations | | Consolidated | Revenues: | | | | | | | | | Refined products | | $ | 129,078 | | | $ | 1,595,070 | | | $ | — | | | $ | 1,724,148 | | Re-refined products | | 17,191 | | | 168,356 | | | — | | | 185,547 | | Services | | 1,276 | | | 4,452 | | | — | | | 5,728 | | Total revenues | | 147,545 | | | 1,767,878 | | | — | | | 1,915,423 | | Cost of revenues (exclusive of depreciation and amortization shown separately below) | | 111,740 | | | 1,708,017 | | | — | | | 1,819,757 | | Depreciation and amortization attributable to costs of revenues | | 2,805 | | | 6,339 | | | — | | | 9,144 | | Gross profit | | 33,000 | | | 53,522 | | | — | | | 86,522 | | Selling, general and administrative expenses | | 13,383 | | | 52,709 | | | 23,842 | | | 89,934 | | Depreciation and amortization attributable to operating expenses | | 142 | | | 1,785 | | | 729 | | | 2,656 | | Income (loss) from operations | | $ | 19,475 | | | $ | (972) | | | $ | (24,571) | | | $ | (6,068) | | | | | | | | | | | Capital expenditures | | $ | 2,830 | | | $ | 142,927 | | | $ | — | | | $ | 145,757 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | NINE MONTHS ENDED SEPTEMBER 30, 2021 | | | Black Oil & Recovery | | Refining & Marketing | | Corporate and Eliminations | | Consolidated | Revenues: | | | | | | | | | Refined products | | $ | 58,039 | | | $ | 55,974 | | | $ | — | | | $ | 114,013 | | Re-refined products | | 19,218 | | | 11,709 | | | — | | | 30,927 | | Services | | 2,867 | | | — | | | — | | | 2,867 | | Total revenues | | 80,124 | | | 67,683 | | | — | | | 147,807 | | Cost of revenues (exclusive of depreciation and amortization shown separately below) | | 63,431 | | | 64,555 | | | — | | | 127,986 | | Depreciation and amortization attributable to costs of revenues | | 2,623 | | | 379 | | | — | | | 3,002 | | Gross profit | | 14,070 | | | 2,749 | | | — | | | 16,819 | | Selling, general and administrative expenses | | 10,841 | | | 2,482 | | | 8,419 | | | 21,742 | | Depreciation and amortization attributable to operating expenses | | 176 | | | 325 | | | 759 | | | 1,260 | | Income (loss) from operations | | $ | 3,053 | | | $ | (58) | | | $ | (9,178) | | | $ | (6,183) | | | | | | | | | | | Capital expenditures | | $ | 2,313 | | | $ | — | | | $ | — | | | $ | 2,313 | |
Total assets by segment were as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | AS OF SEPTEMBER 30, 2022 | | | Black Oil & Recovery | | Refining & Marketing | | Corporate and Eliminations | | Consolidated | Total assets | | $ | 123,808 | | | $ | 395,692 | | | $ | 128,077 | | | $ | 647,577 | | | | | | | | | | | AS OF SEPTEMBER 30, 2021 | | | Black Oil & Recovery | | Refining & Marketing | | Corporate and Eliminations | | Consolidated | Total assets | | $ | 101,461 | | | $ | 4,775 | | | $ | 38,414 | | | $ | 144,650 | |
Segment assets for the Refining and Marketing and Black Oil and Recovery segments consist of property, plant, and equipment, right-of-use assets, intangible assets, accounts receivable, inventories and other assets. Assets for the corporate unallocated amounts consist of property, plant, and equipment used at the corporate headquarters, intangible assets, derivative commodity assets, assets held for sale as well as cash.
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