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Segments
 9 Months Ended
Sep. 30, 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 in Boardman, Oregon and Burley, Idaho and, beginning for the three and nine months ended September 30, 2025, its liquid CO2 plant on an aggregated basis (“Western production”).

 

For the three and nine months ended September 30, 2025, capital expenditures incurred by the Pekin Campus segment were approximately $1.6 million and $2.6 million, respectively, and none for the Western production segment. For the three and nine months ended September 30, 2024, capital expenditures incurred by the Pekin Campus segment were approximately $0.2 million and $7.1 million, respectively, and $0.3 million and $2.7 million for the Western production segment, respectively. For all periods presented, there were no capital expenditures for the marketing and distribution segment.

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

 

   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2025   2024   2025   2024 
Net Sales                
Pekin Campus production, recorded as gross:                
Alcohol sales  $109,276   $106,459   $310,666   $315,494 
Essential ingredient sales   45,307    41,217    129,490    127,297 
Intersegment sales   283    321    764    927 
Total Pekin Campus sales   154,866    147,997    440,920    443,718 
Marketing and distribution:                    
Alcohol sales, gross  $58,595   $54,531   $165,695   $179,118 
Alcohol sales, net   74    71    215    169 
Intersegment sales   2,497    2,862    7,338    8,002 
Total marketing and distribution sales   61,166    57,464    173,248    187,289 
                     
Western production, recorded as gross:                    
Alcohol sales  $17,419   $36,395   $50,218   $74,084 
Essential ingredient sales   8,017    10,408    24,076    24,184 
Intersegment sales   513    8    1,281    (122)
Total Western production sales   25,949    46,811    75,575    98,146 
                     
Corporate and other   2,298    2,733    5,602    8,565 
Intersegment eliminations   (3,293)   (3,191)   (9,383)   (8,807)
Net sales as reported  $240,986   $251,814   $685,962   $728,911 
                     
Cost of goods sold:                    
Pekin Campus production  $135,942   $141,823   $431,669   $423,135 
Marketing and distribution   56,738    53,553    160,904    176,676 
Western production   24,447    49,079    72,719    112,762 
Corporate and other   2,063    2,952    5,449    8,690 
Intersegment eliminations   (1,698)   (1,553)   (4,529)   (3,465)
Cost of goods sold as reported  $217,492   $245,854   $666,212   $717,798 
                     
Gross profit (loss):                    
Pekin Campus production  $18,924   $6,174   $9,251   $20,583 
Marketing and distribution   4,428    3,911    12,344    10,613 
Western production   1,502    (2,268)   2,856    (14,616)
Corporate and other   235    (219)   153    (125)
Intersegment eliminations   (1,595)   (1,638)   (4,854)   (5,342)
Gross profit as reported  $23,494   $5,960   $19,750   $11,113 
                     
Income (loss) before provision for income taxes:                    
Pekin Campus production  $14,694   $1,997   $(3,349)  $8,083 
Marketing and distribution   2,105    1,626    5,468    3,733 
Western production   (1,151)   (4,119)   (5,754)   (21,075)
Corporate and other   (1,440)   (1,945)   (4,833)   (8,013)
   $14,208   $(2,441)  $(8,468)  $(17,272)
Depreciation and amortization expense:                    
Pekin Campus production  $5,348   $5,328   $16,153   $15,733 
Western production   738    502    2,221    1,445 
Corporate and other   171    228    514    682 
   $6,257   $6,058   $18,888   $17,860 
Interest expense, net of capitalized interest:                    
Pekin Campus production  $623   $496   $1,849   $1,083 
Marketing and distribution   86    98    249    291 
Western production   1,399    619    4,188    1,848 
Corporate and other   692    654    2,054    1,948 
   $2,800   $1,867   $8,340   $5,170 

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

 

   September 30,
2025		   December 31,
2024		 
Total assets:        
Pekin Campus production  $228,979   $223,934 
Marketing and distribution   97,855    102,895 
Western production   42,975    44,992 
Corporate and other   18,665    29,617 
   $388,474   $401,438