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Segments
 3 Months Ended
Mar. 31, 2025
Segments [Abstract]  
SEGMENTS
3.SEGMENTS.

 

A segment is a component of an enterprise whose operating results are regularly reviewed by the enterprise’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s CODM is the Company’s executive committee, which is led by the Company’s Chief Executive Officer (“CEO”) and includes its Chief Financial Officer, Chief Operating Officer, Chief Commercial Officer and Chief Legal Officer (“Executive Committee”). The Company manages and assesses the performance of its reportable segments by its gross profit (loss). As part of the Executive Committee’s review of segment-level performance, each member of the Executive Committee reviews the gross profit of the Company’s reportable segments and provides expertise and analysis from their respective areas which drive the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. Even though the CEO has the authority to override the other members for strategic or other reasons, key decisions are made jointly by the Executive Committee.

 

The Company reports financial and operating performance in three reportable segments (1) Pekin production, which includes the entire campus in Pekin, Illinois (“Pekin Campus”), (2) marketing and distribution, which includes marketing and merchant trading for Company-produced specialty alcohols, fuel-grade ethanol and essential ingredients, and sales of fuel-grade ethanol sourced from third parties, and (3) Western production, which includes the Company’s two western production facilities and, beginning for the three months ended March 31, 2025, its liquid CO2 plant on an aggregated basis (“Western production”).

The following tables set forth certain financial data for the Company’s operating segments (in thousands):

 

   Three Months Ended
March 31,		 
Net Sales  2025   2024 
Pekin Campus production, recorded as gross:        
Alcohol sales  $107,234   $108,350 
Essential ingredient sales   44,618    46,709 
Intersegment sales   297    321 
Total Pekin Campus sales   152,149    155,380 
 Marketing and distribution:          
Alcohol sales, gross  $48,997   $54,431 
Alcohol sales, net   61    34 
Intersegment sales   2,506    2,752 
Total marketing and distribution sales   51,564    57,217 
Western production, recorded as gross:          
Alcohol sales  $16,194   $20,231 
Essential ingredient sales   7,808    7,826 
Intersegment sales   264    
—
 
Total Western production sales   24,266    28,057 
           
Corporate and other   1,628    3,048 
Intersegment eliminations   (3,067)   (3,073)
Net sales as reported  $226,540   $240,629 
         
Cost of goods sold:        
Pekin Campus production  $155,222   $151,112 
Marketing and distribution   47,650    53,685 
Western production   25,524    36,517 
Corporate and other   1,681    2,794 
Intersegment eliminations   (1,730)   (1,079)
Cost of goods sold as reported  $228,347   $243,029 
           

Gross profit (loss):

          
Pekin Campus production  $(3,073)  $4,268 
Marketing and distribution   3,914    3,532 
Western production   (1,258)   (8,460)
Corporate and other   (53)   254 
Intersegment eliminations   (1,337)   (1,994)
Gross loss as reported  $(1,807)  $(2,400)
         
Gain (loss) before provision for income taxes:        
Pekin Campus production  $(7,364)  $108 
Marketing and distribution   1,563    1,305 
Western production   (3,905)   (10,976)
Corporate and other   (1,973)   (2,162)
   $(11,679)  $(11,725)
Depreciation and amortization expense:          
Pekin Campus production  $5,456   $5,035 
Western production   640    465 
Corporate and other   170    228 
   $6,266   $5,728 
Interest expense, net of capitalized interest:          
Pekin Campus production  $610   $261 
Marketing and distribution   83    96 
Western production   1,359    630 
Corporate and other   677    647 
   $2,729   $1,634 

The following table sets forth the Company’s total assets by operating segment (in thousands): 

 

   March 31,
2025		   December 31,
2024		 
Total assets:        
Pekin Campus production  $216,152   $223,934 
Marketing and distribution   118,130    102,895 
Western production   46,470    44,992 
Corporate and other   21,457    29,617 
   $402,209   $401,438