Page 62 - New8814 GP 2011_AR-fnl

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administrative expenses compared to 2010 due to an increase in personnel costs as a result of our growth and expanded
Intersegment Eliminations
Intersegment eliminations of revenues increased $1.1 billion for year ended December 31, 2011 compared to the same
period in 2010 due to an increase of $845.2 million, $107.6 million and $42.7 million in ethanol, distillers grains and corn oil,
respectively, sold from our ethanol production and corn oil segments to our marketing and distribution segment. In addition,
corn sales from our agribusiness segment to our ethanol production segment increased $72.8 million between the periods.
Corporate Activities
Operating income was impacted by an increase in operating expenses for corporate activities of $5.0 million for the year
ended December 31, 2011 compared to the same period in 2010, primarily due to an increase in general and administrative
expenses and personnel costs related to expanded operations.
Year ended December 31, 2010 Compared to the Year ended December 31, 2009
Consolidated Results
Several events that occurred during 2010 account for the overall increase in our revenues of $828.1 million, an increase
in our gross profit of $68.5 million and an increase in operating income of $52.9 million. Our business activity increased
primarily as a result of including a full year of operations from the Central City and Ord ethanol plants acquired in July 2009,
additional agribusiness operations in western Tennessee acquired in April 2010 and additional ethanol plants acquired in
October 2010. Selling, general and administrative expenses increased $15.6 million during 2010 due to the events described
above. Interest expense increased $7.3 million during 2010 as compared to 2009 due to additional debt issued to finance
these acquisitions and a convertible debt offering completed in November 2010. Income tax expenses of $17.9 million during
2010 were significantly higher than the expense of $0.1 million in 2009. Prior to 2009, we had losses before income taxes
and the resulting potential tax benefits were fully reserved with a valuation allowance. A portion of those valuation
allowances were released in 2009, resulting in an income tax provision of $0.1 million.
Management views our results on a segment level. See segment discussions below for more detail on period-to-period
increases in revenues, gross profit and operating income.
Ethanol Production Segment
The table below presents key operating data within our ethanol production segment for the periods indicated:
Revenue for the ethanol production segment increased $384.1 million for the year ended December 31, 2010, compared
to the year ended December 31, 2009 due to increased ethanol production and an increase in the average revenue per gallon
of ethanol sold. Revenues for the year ended December 31, 2009, included five months of revenues from our Central City
and Ord plants since their acquisition in July 2009 compared to a full year of revenues from these two plants in 2010.
Additional revenues earned in 2010 compared to 2009 at the Central City and Ord plants were $195.1 million. In addition,
2010 results included approximately two months of revenues from our Lakota and Riga plants acquired in October 2010,
contributing combined revenue of $80.6 million.
Ethanol sold
(thousands of gallons)
Distillers grains sold
(thousands of equivalent dried tons)
Corn consumed
(thousands of bushels)
Year EndedDecember 31,