Page 60 - New8814 GP 2011_AR-fnl

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The table below shows total assets for our operating segments as of the periods indicated (in thousands):
Total assets:
Ethanol production
$ 879,500
$ 850,049
Corn oil production
24,601
7,204
Agribusiness
233,201
239,595
Marketing and distribution
181,466
169,148
Corporate assets
121,429
142,666
Intersegment eliminations
(19,369)
(10,883)
$ 1,420,828
$ 1,397,779
2011
2010
December 31,
Year ended December 31, 2011 Compared to the Year ended December 31, 2010
Consolidated Results
Revenues increased $1.4 billion for the year ended December 31, 2011 compared to the same period in 2010 as a result
of acquired operations and changes in commodity prices. We acquired our western Tennessee agribusiness operations in
April 2010, our Lakota and Riga ethanol plants in October 2010, and our Otter Tail ethanol plant in March 2011. Revenue
from existing operations was also impacted by increases in commodity prices, production efficiencies at our ethanol plants
and the increase in the volume of corn oil extracted in 2011 compared to 2010. Gross profit increased $19.7 million
compared to the same period in 2010. Gross profit increases in the corn oil production, agribusiness and market and
distribution segments were partially offset by a decrease in gross profit in the ethanol production segment. Operating income
increased $7.0 million compared to the same period in 2010. In addition to the factors identified above, selling, general and
administrative expenses increased $12.7 million compared to the same period in 2010 due to the expanded scope of our
operations.
Income before taxes was also affected by an increase in interest expense of $10.5 million due to debt issued to finance
the acquisitions and $90.0 million of convertible notes issued in November 2010. Income tax expense for the year ended
December 31, 2011 increased compared to 2010 due to an increase in income before taxes and additional state filing
requirements resulting from acquired operations. In addition, income tax expense for the year ended December 31, 2010 was
favorably impacted by the release of a portion of valuation allowances against certain deferred tax assets, established in prior
years due to the uncertainty of realization.
The following discussion of segment results provides greater detail on period to period results.
Ethanol Production Segment
The table below presents key operating data within our ethanol production segment for the periods indicated:
Ethanol sold
721,535
544,388
(thousands of gallons)
Distillers grains sold
2,047
1,566
(thousands of equivalent dried tons)
Corn consumed
255,437
194,327
(thousands of bushels)
Year EndedDecember 31,
2011
2010
Revenues for the ethanol production segment increased $1.0 billion for the year ended December 31, 2011 compared to
the same period in 2010. Revenues for the year ended December 31, 2011 included production of an additional 170 million
gallons from our Lakota and Riga ethanol plants which were acquired in October 2010, as well as production from our Otter
Tail ethanol plant, which was acquired in late March 2011. The Lakota, Riga and Otter Tail plants contributed an additional