Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-17196 | ||
Entity Registrant Name | MGP Ingredients, Inc. | ||
Entity Incorporation, State or Country Code | KS | ||
Entity Tax Identification Number | 45-4082531 | ||
Entity Address, Postal Zip Code | 66002 | ||
Entity Address, Address Line One | 100 Commercial Street, Box 130 | ||
Entity Address, City or Town | Atchison | ||
Entity Address, State or Province | KS | ||
City Area Code | (913) | ||
Local Phone Number | 367-1480 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | MGPI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 857,685,274 | ||
Entity Common Stock, Shares Outstanding | 17,051,538 | ||
Documents Incorporated by Reference | The following documents are incorporated herein by reference: (1) Portions of the MGP Ingredients, Inc. Proxy Statement for the Annual Meeting of Stockholders to be held on May 21, 2020 are incorporated by reference into Part III of this report to the extent set forth herein. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000835011 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2019 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 92,463 | $ 90,685 | $ 90,501 | $ 89,096 | $ 104,850 | $ 95,031 | $ 88,252 | $ 87,956 | $ 362,745 | $ 376,089 | $ 347,448 |
Cost of sales | 70,903 | 71,895 | 70,979 | 72,436 | 79,242 | 75,432 | 68,811 | 69,005 | 286,213 | 292,490 | 271,432 |
Gross profit | 21,560 | 18,790 | 19,522 | 16,660 | 25,608 | 19,599 | 19,441 | 18,951 | 76,532 | 83,599 | 76,016 |
Selling, general, and administrative expenses | 5,309 | 7,186 | 8,648 | 8,147 | 8,996 | 7,584 | 8,309 | 8,562 | 29,290 | 33,451 | 33,107 |
Operating income | 16,251 | 11,604 | 10,874 | 8,513 | 16,612 | 12,015 | 11,132 | 10,389 | 47,242 | 50,148 | 42,909 |
Gain on sale of equity method investment | 0 | 0 | 11,381 | ||||||||
Equity method investment loss | 0 | 0 | (348) | ||||||||
Interest expense, net | (368) | (364) | (321) | (252) | (338) | (334) | (289) | (207) | (1,305) | (1,168) | (1,184) |
Income before income taxes | 15,883 | 11,240 | 10,553 | 8,261 | 16,274 | 11,681 | 10,843 | 10,182 | 45,937 | 48,980 | 52,758 |
Income tax expense | 2,936 | 3,025 | 2,642 | (1,459) | 4,452 | 2,673 | 3,316 | 1,255 | 7,144 | 11,696 | 10,935 |
Net income | $ 12,947 | $ 8,215 | $ 7,911 | $ 9,720 | $ 11,822 | $ 9,008 | $ 7,527 | $ 8,927 | 38,793 | 37,284 | 41,823 |
Income attributable to participating securities | 253 | 708 | 996 | ||||||||
Net income attributable to common shareholders and used in Earnings Per Share calculation | $ 38,540 | $ 36,576 | $ 40,827 | ||||||||
Basic and diluted weighted average common shares (in shares) | 17,012,288 | 16,866,176 | 16,746,731 | ||||||||
Basic and diluted EPS (in dollars per share) | $ 0.76 | $ 0.48 | $ 0.46 | $ 0.57 | $ 0.69 | $ 0.52 | $ 0.44 | $ 0.52 | $ 2.27 | $ 2.17 | $ 2.44 |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Related party purchases | $ 0 | $ 0 | $ 18,425,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 38,793 | $ 37,284 | $ 41,823 |
Other comprehensive income (loss), net of tax: | |||
Change in post-employment benefits | (151) | 147 | 66 |
Other | 0 | 0 | (4) |
Other comprehensive income (loss) | (151) | 147 | 62 |
Comprehensive income | $ 38,642 | $ 37,431 | $ 41,885 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 3,309 | $ 5,025 |
Receivables (less allowance for doubtful accounts at December 31, 2019 and 2018 - $24 | 40,931 | 38,797 |
Inventory | 136,931 | 108,769 |
Prepaid expenses | 2,048 | 1,320 |
Refundable income taxes | 987 | 712 |
Total current assets | 184,206 | 154,623 |
Property, plant, and equipment, net | 128,419 | 120,788 |
Operating lease right-of-use assets, net | 6,490 | 0 |
Other assets | 3,482 | 2,481 |
Total assets | 322,597 | 277,892 |
Current Liabilities | ||
Current maturities of long-term debt | 401 | 386 |
Accounts payable | 29,511 | 25,363 |
Accrued expenses | 9,383 | 11,714 |
Total current liabilities | 39,295 | 37,463 |
Long-term debt, less current maturities | 40,658 | 21,040 |
Credit agreement - revolver | 1 | 10,588 |
Long-term operating lease liabilities | 4,267 | 0 |
Deferred credits | 1,233 | 1,565 |
Other noncurrent liabilities | 4,170 | 4,118 |
Deferred income taxes | 1,929 | 1,677 |
Total liabilities | 91,553 | 76,451 |
Commitments and Contingencies – Note 9 | ||
Capital stock | ||
Preferred, 5% non-cumulative; $10 par value; authorized 1,000 shares; issued and outstanding 437 shares | 4 | 4 |
Common stock | ||
No par value; authorized 40,000,000 shares; issued 18,115,965 shares at December 31, 2019 and 2018; 17,028,125 and 16,856,414 shares outstanding at December 31, 2019 and 2018, respectively | 6,715 | 6,715 |
Additional paid-in capital | 14,029 | 15,375 |
Retained earnings | 230,784 | 198,914 |
Accumulated other comprehensive loss | (246) | (164) |
Treasury stock, at cost, 1,087,840 and 1,259,551 shares at December 31, 2019 and 2018, respectively | (20,242) | (19,403) |
Total stockholders’ equity | 231,044 | 201,441 |
Total liabilities and stockholders’ equity | $ 322,597 | $ 277,892 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 24 | $ 24 |
Preferred Stock, par value (in dollars per share) | $ 10 | $ 10 |
Preferred Stock, authorized (in shares) | 1,000 | 1,000 |
Preferred Stock, issued (in shares) | 437 | 437 |
Preferred Stock, outstanding (in shares) | 437 | 437 |
Preferred Stock, dividend rate | 5.00% | 5.00% |
Common Stock, par value (in dollars per share) | $ 0 | $ 0 |
Common Stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common Stock, issued (in shares) | 18,115,965 | 18,115,965 |
Common Stock, outstanding (in shares) | 17,028,125 | 16,856,414 |
Treasury Stock (in shares) | 1,087,840 | 1,259,551 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 38,793 | $ 37,284 | $ 41,823 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 11,572 | 11,362 | 11,308 |
Gain on sale of equity method investment | 0 | 0 | (11,381) |
Share-based compensation | 3,304 | 3,099 | 2,574 |
Equity method investment loss | 0 | 0 | 348 |
Distributions received from equity method investee | 0 | 0 | 7,131 |
Deferred income taxes, including change in valuation allowance | 252 | 1,665 | (3,420) |
Other, net | (116) | 0 | 61 |
Changes in operating assets and liabilities: | |||
Receivables, net | (2,134) | (4,450) | (8,262) |
Inventory | (28,162) | (15,620) | (14,291) |
Prepaid expenses | (728) | 862 | (498) |
Refundable income taxes | (275) | 1,268 | 725 |
Accounts payable | 2,107 | (2,542) | 9,540 |
Accounts payable to affiliate, net | 0 | 0 | (3,349) |
Accrued expenses | (4,547) | 551 | 2,278 |
Deferred credits | (332) | (586) | (827) |
Other, net | (12) | 588 | (289) |
Net cash provided by operating activities | 19,722 | 33,481 | 33,471 |
Cash Flows from Investing Activities | |||
Additions to property, plant, and equipment | (16,730) | (31,046) | (21,055) |
Divestiture of equity method investment, net | 0 | 0 | 22,832 |
Deferred compensation plan investments | (1,201) | 0 | 0 |
Net cash provided by (used in) investing activities | (17,931) | (31,046) | 1,777 |
Cash Flows from Financing Activities | |||
Payment of dividends and dividend equivalents | (6,856) | (5,500) | (17,380) |
Purchase of treasury stock for tax withholding on equity-based compensation | (5,489) | (2,324) | (4,663) |
Loan fees incurred with borrowings | 0 | 0 | (377) |
Proceeds from long-term debt | 20,000 | 0 | 20,000 |
Principal payments on long-term debt | (386) | (372) | (358) |
Proceeds from credit agreement - revolver | 17,440 | 28,966 | 25,930 |
Payments on credit agreement - revolver | (28,140) | (21,264) | (56,885) |
Other, net | (76) | 0 | 0 |
Net cash used in financing activities | (3,507) | (494) | (33,733) |
Increase (decrease) in cash and cash equivalents | (1,716) | 1,941 | 1,515 |
Cash and cash equivalents, beginning of year | 5,025 | 3,084 | 1,569 |
Cash and cash equivalents, end of year | $ 3,309 | $ 5,025 | $ 3,084 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Capital Stock Preferred | Issued Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2016 | $ 146,292 | $ 4 | $ 6,715 | $ 14,279 | $ 142,652 | $ (373) | $ (16,985) |
Comprehensive income (loss): | |||||||
Net income | 41,823 | 41,823 | |||||
Other comprehensive loss | 62 | 62 | |||||
Dividends and dividend equivalents per common shares and per restricted stock units, net of estimated forfeitures | (17,346) | (17,346) | |||||
Share-based compensation | 2,065 | 2,065 | |||||
Stock shares awarded, forfeited or vested | 497 | (2,432) | 2,929 | ||||
Stock shares repurchased | (4,663) | (4,663) | |||||
Ending Balance at Dec. 31, 2017 | 168,730 | 4 | 6,715 | 13,912 | 167,129 | (311) | (18,719) |
Comprehensive income (loss): | |||||||
Net income | 37,284 | 37,284 | |||||
Other comprehensive loss | 147 | 147 | |||||
Dividends and dividend equivalents per common shares and per restricted stock units, net of estimated forfeitures | (5,499) | (5,499) | |||||
Share-based compensation | 2,687 | 2,687 | |||||
Stock shares awarded, forfeited or vested | 416 | (1,224) | 1,640 | ||||
Stock shares repurchased | (2,324) | (2,324) | |||||
Ending Balance at Dec. 31, 2018 | 201,441 | 4 | 6,715 | 15,375 | 198,914 | (164) | (19,403) |
Comprehensive income (loss): | |||||||
Net income | 38,793 | 38,793 | |||||
Other comprehensive loss | (151) | (151) | |||||
Dividends and dividend equivalents per common shares and per restricted stock units, net of estimated forfeitures | (6,854) | (6,854) | |||||
Share-based compensation | 2,453 | 2,453 | |||||
Stock shares awarded, forfeited or vested | 851 | (3,799) | 4,650 | ||||
Stock shares repurchased | (5,489) | (5,489) | |||||
Ending Balance at Dec. 31, 2019 | $ 231,044 | $ 4 | $ 6,715 | $ 14,029 | $ 230,784 | $ (246) | $ (20,242) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Stockholders' Equity [Abstract] | |||
Dividends (in dollars per share) | $ 0.40 | $ 0.32 | $ 1.01 |
Stockholders' Equity Attributable to Parent | $ 231,044 | $ 201,441 | $ 168,730 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company. MGP Ingredients, Inc. ("Company") is a Kansas corporation headquartered in Atchison, Kansas and is a leading producer and supplier of premium distilled spirits and specialty wheat protein and starch food ingredients. Distilled spirits include premium bourbon and rye whiskeys and grain neutral spirits, including vodka and gin. MGP is also a top producer of high quality industrial alcohol for use in both food and non-food applications. The Company's protein and starch food ingredients provide a host of functional, nutritional, and sensory benefits for a wide range of food products to serve the packaged goods industry. The Company's distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt, and milo), and its ingredient products are derived from wheat flour. The majority of the Company’s sales are made directly, or through distributors, to manufacturers and processors of finished packaged goods or to bakeries. Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the 2017 and 2018 consolidated financial statements have been reclassified to conform to the 2019 presentation. Use of Estimates. The financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The application of certain of these policies places demands on management's judgment, with financial reporting results relying on estimation about the effects of matters that are inherently uncertain. For all of these policies, management cautions that future events rarely develop as forecast, and estimates routinely require adjustment and may require material adjustment. Inventory. Inventory includes finished goods, raw materials in the form of agricultural commodities used in the production process, and certain maintenance and repair items. Bourbons and whiskeys are normally aged in barrels for several years, following industry practice; all barreled bourbon and whiskey is classified as a current asset. The Company includes warehousing, insurance, and other carrying charges applicable to barreled whiskey in inventory costs. Inventories are stated at the lower of cost or net realizable value on the first-in, first-out, or FIFO, method. Inventory valuations are impacted by constantly changing prices paid for key materials, primarily corn. Properties, Depreciation, and Amortization. Property, plant, and equipment are typically stated at cost. Additions, including those that increase the life or utility of an asset, are capitalized and all properties are depreciated over their estimated remaining useful lives. Depreciation and amortization are computed using the straight line method over the following estimated useful lives: Buildings and improvements (a) 10 – 30 years Machinery and equipment 3 – 10 years Office furniture and equipment 5 – 10 years Computer equipment and software 3 – 5 years Motor vehicles 5 years (a) Leasehold improvements are the shorter of economic useful life or life of lease Maintenance costs are expensed as incurred. The cost of property, plant, and equipment sold, retired, or otherwise disposed of, as well as related accumulated depreciation and amortization, are eliminated from the property accounts with related gains and losses reflected in the Consolidated Statements of Income. The Company capitalizes interest costs associated with significant construction projects. Total interest incurred for 2019, 2018, and 2017 is noted below: Year Ended December 31, 2019 2018 2017 Interest costs charged to expense $ 1,305 $ 1,168 $ 1,184 Plus: Interest cost capitalized 575 562 293 Total $ 1,880 $ 1,730 $ 1,477 Revenue Recognition. As a result of the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers and related amendments ( Topic 606 ) on January 1, 2018, the Company changed its accounting policy for revenue recognition (see Note 3). Revenue is recognized when control of the promised goods or services, through performance obligations by the Company, is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligations. The term between invoicing and when payment is due is not significant and the period between when the entity transfers the promised good or service to the customer and when the customer pays for that good or service is one year or less. Excise taxes that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer are excluded from revenue. Revenue is recognized for the sale of products at the point in time finished products are delivered to the customer in accordance with shipping terms. This is a faithful depiction of the satisfaction of the performance obligation because, at that point control passes to the customer, the customer has legal title and the risk and rewards of ownership have transferred, and the customer has present obligation to pay. The Company’s Distillery Products segment routinely enters into bill and hold arrangements, whereby the Company produces and sells unaged distillate to customers, and the product is subsequently barreled at the customer’s request and warehoused at a Company location for an extended period of time in accordance with directions received from the Company’s customers. Even though the unaged distillate remains in the Company’s possession, a sale is recognized at the point in time when the customer obtains control of the product. Control is transferred to the customer in bill and hold transactions when: customer acceptance specifications have been met, legal title has transferred, the customer has a present obligation to pay for the product and the risk and rewards of ownership have transferred to the customer. Additionally all the following bill and hold criteria have been met in order for control to be transferred to the customer: the customer has requested the product be warehoused, the product has been identified as separately belonging to the customer, the product is currently ready for physical transfer to the customer, and the Company does not have the ability to use the product or direct it to another customer. Warehouse service revenue is recognized over the time that warehouse services are rendered and as they are rendered. This is a faithful depiction of the satisfaction of the performance obligation because control of the aging products has already passed to the customer and there are no additional performance activities required by the Company, except as requested by the customer. The performance of the service activities, as requested, is invoiced as satisfied and revenue is concurrently recognized. Income Taxes. The Company accounts for income taxes using an asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is recognized if it is "more likely than not" that at least some portion of the deferred tax asset will not be realized. EPS. Basic and diluted EPS is computed using the two class method, which is an earnings allocation formula that determines net income per share for each class of Common Stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each year or period. Fair Value of Financial Instruments. The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into three levels based upon the observability of inputs. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value in its entirety requires judgment and considers factors specific to the asset or liability. The Company’s short-term financial instruments include cash and cash equivalents, accounts receivable and accounts payable. The carrying value of the short-term financial instruments approximates the fair value due to their short-term nature. These financial instruments have no stated maturities or the financial instruments have short-term maturities that approximate market. The fair value of the Company’s debt is estimated based on current market interest rates for debt with similar maturities and credit quality. The fair value of the Company’s debt was $42,534 and $32,018 at December 31, 2019 and 2018, respectively. The financial statement carrying value (including unamortized loan fees) was $41,060 and $32,014 at December 31, 2019 and 2018, respectively. These fair values are considered Level 2 under the fair value hierarchy. Derivative Instruments. Certain commodities the Company uses in its production process, or input costs, exposes it to market price risk due to volatility in the prices for those commodities. Through the Company’s grain supply contracts for its Atchison and Lawrenceburg facilities, its wheat flour supply contract for the Atchison facility, and its natural gas contracts for both facilities, it purchases grain, wheat flour, and natural gas, respectively, for delivery from one Derivatives and Hedging , because the quantities involved are for amounts to be consumed within the normal expected production process. Recently Adopted Accounting Standard Updates. The Company adopted ASU 2016-02, Leases (Topic 842) and subsequent updates, as of January 1, 2019, using the modified retrospective approach (See Note 8). The modified retrospective approach provides a method for recording existing leases at adoption and using the effective date as the date of application (the “effective date method”). Under the effective date method, the comparative period reporting is unchanged. Comparative reporting periods are presented in accordance with Topic 840 (previous lease guidance), while periods subsequent to the effective date are presented in accordance with Topic 842. In addition, the Company elected the available practical expedients and implemented internal controls to enable the preparation of financial information on adoption. Adoption of the new standard resulted in the Company recording Operating lease right-of-use assets and Operating lease liabilities in its Consolidated Balance Sheet of $6,598 and $6,952, respectively, as of January 1, 2019. The standard did not impact the Company’s consolidated net earnings and also had no impact on its cash flows. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted this guidance on January 1, 2019. We elected to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings which resulted in an immaterial effect on its consolidated financial results and disclosures. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which more closely aligns the accounting for employee and nonemployee share-based payments. The Company adopted this guidance on January 1, 2019, and it had no impact on its consolidated financial results and disclosures. Recently Issued Accounting Pronouncement. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent updates. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019. The guidance is to be adopted using the modified retrospective approach. The Company is still evaluating the effect that ASU 2016-13 will have on the Company, however we do not expect this to have a material impact to the consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosure requirements on fair value measurements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of this update. The Company is still evaluating the effect that ASU 2018-13 will have on the Company, however we do not expect this to have a material impact to the consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, |
Other Balance Sheet Captions
Other Balance Sheet Captions | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Other Balance Sheet Captions | OTHER BALANCE SHEET CAPTIONS Inventory. December 31, 2019 2018 Finished goods $ 16,654 $ 17,296 Barreled distillate (bourbons and whiskeys) 104,249 76,374 Raw materials 4,920 4,906 Work in process 1,766 1,550 Maintenance materials 8,200 7,541 Other 1,142 1,102 Total $ 136,931 $ 108,769 Property, plant, and equipment, net. December 31, 2019 2018 Land, buildings, and improvements $ 105,257 $ 90,992 Transportation equipment 3,317 3,308 Machinery and equipment 190,930 184,779 Construction in progress 14,454 16,814 Property, plant, and equipment, at cost 313,958 295,893 Less accumulated depreciation and amortization (185,539) (175,105) Property, plant, and equipment, net $ 128,419 $ 120,788 Accrued expenses. December 31, 2019 2018 Employee benefit plans $ 590 $ 1,288 Salaries and wages 3,189 7,099 Property taxes 1,445 1,248 Current operating lease liabilities 2,244 — Other 1,915 2,079 Total $ 9,383 $ 11,714 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue | REVENUE Adoption of Topic 606, Revenue From Contracts with Customers . On January 1, 2018, the Company adopted Topic 606, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Financial results for the years ended December 31, 2019 and 2018 are presented under Topic 606, while financial results for the year ended December 31, 2017 are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, Revenue Recognition . There was no adjustment to opening retained earnings during the year ended December 31, 2018 and no differences to disclosure to reconcile financial statement activity as reported under Topic 606 to ASC 605 for the year ended December 31, 2018. Disaggregation of Sales. The following table presents the Company's sales disaggregated by segment and major products and services. Year Ended December 31, 2019 2018 2017 (a) Distillery Products Brown Goods $ 107,190 $ 125,857 $ 113,413 White Goods 62,862 62,574 64,585 Premium beverage alcohol 170,052 188,431 177,998 Industrial alcohol 79,833 80,650 76,636 Food grade alcohol 249,885 269,081 254,634 Fuel grade alcohol 5,949 6,347 6,368 Distillers feed and related co-products 26,743 25,698 19,332 Warehouse services 14,656 12,929 10,674 Total Distillery Products 297,233 314,055 291,008 Ingredient Solutions Specialty wheat starches 30,816 28,594 28,092 Specialty wheat proteins 22,359 21,098 19,458 Commodity wheat starch 9,628 9,223 8,288 Commodity wheat protein 2,709 3,119 602 Total Ingredient Solutions 65,512 62,034 56,440 Total sales $ 362,745 $ 376,089 $ 347,448 (a) Prior year amounts were not adjusted upon adoption of Topic 606. The Company generates revenues from the Distillery Products segment by the sale of products and by providing warehouse services related to the storage and aging of customer products. The Company generates revenues from the Ingredient Solutions segment by the sale of products. Revenue related to sales of products is recognized at a point in time whereas revenue generated from warehouse services is recognized over time. Contracts with customers in both segments include a single performance obligation (either the sale of products or the provision of warehouse services). |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS As of December 31, 2019 and 2018, the Company’s equity method investments were zero. Illinois Corn Processing ("ICP") Investment. In 2017, the Company completed the sale of its equity ownership interest in ICP to Pacific Ethanol Central, LLC ("Pacific Ethanol"), consistent with an Agreement and Plan of Merger ("Merger Agreement"). The total transaction proceeds to the Company from the ICP sale transaction represented a return of its investment in ICP of $22,832 (net of fees and including additional dividends), which included a gain on sale of equity method investment of $11,381 (before tax), on the Company’s 2017 Consolidated Statement of Income. The Merger Agreement contemplated a special distribution of all of ICP’s cash and cash equivalents to equity owners prior to the closing, which resulted in the Company receiving cash dividend distributions from ICP during June 2017 totaling $7,430 that reduced its 30 percent ownership interest. The Company’s equity method investment losses for the year ended December 31, 2017 was $348. Related Party Transactions. In 2019 and 2018, Pacific Ethanol (formerly ICP) was not a related party of the Company. During 2017, related party sales to ICP were $17,672 which were included in Sales on the Company's Consolidated Statements of Income. During 2017, related party purchases by the Company from ICP were approximately $18,425, that were included in Cost of sales on the Company’s Consolidated Statements of Income. In June 2017, the Company received cash dividend distributions from ICP totaling $7,430, as mentioned above. Summary Financial Information. Condensed financial information of the Company’s equity method investment in ICP for the year ended December 31, 2017: Year Ended December 31, ICP’s Operating results: 2017 Sales $ 78,062 Cost of sales and expenses (a) (79,224) Net loss $ (1,162) (a) Includes depreciation and amortization of $1,720 for 2017. |
Corporate Borrowings
Corporate Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Corporate Borrowings | CORPORATE BORROWINGS Indebtedness Outstanding. The following table presents the Company’s outstanding indebtedness December 31, 2019 2018 Credit Agreement - Revolver, 3.19% (variable rate) due 2022 (a) $ 300 $ 11,000 Secured Promissory Note, 3.71% (fixed rate) due 2022 (a) 1,208 1,594 Prudential Note Purchase Agreement, 3.53% (fixed rate) due 2027 (a) 20,000 20,000 Prudential Note Purchase Agreement, 3.80% (fixed rate) due 2029 (a) 20,000 — Total indebtedness outstanding 41,508 32,594 Less unamortized loan fees (b) (448) (580) Total indebtedness outstanding, net 41,060 32,014 Less current maturities of long-term debt (401) (386) Long-term debt $ 40,659 $ 31,628 (a) Interest rates are as of December 31, 2019. (b) Loan fees are being amortized over the life of the Credit Agreement and Note Purchase Agreement. Credit Agreement and Note Purchase Agreements. On August 23, 2017, the Company entered into credit agreement (the "Credit Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"). The Credit Agreement provides for a $150,000 revolving credit facility. The Company may increase the facility from time to time by an aggregate principal amount of up to $25,000 provided certain conditions are satisfied and at the discretion of the lender. The Credit Agreement matures on August 23, 2022. The Credit Agreement is secured by substantially all assets, excluding real property. The Credit Agreement includes certain requirements and covenants, which the Company was in compliance with at December 31, 2019. The Company incurred no new loan fees related to the Credit Agreement during 2019. The unamortized balance of total loan fees related to the Credit Agreement was $299 at December 31, 2019 and is being amortized over the life of the Credit Agreement. As of December 31, 2019, the Company’s total outstanding borrowings under the Credit Agreement were $300 leaving $149,700 available. The interest rate for the borrowings of the Credit Agreement at December 31, 2019 was 3.2 percent. On August 23, 2017, the Company also entered into a Note Purchase and Private Shelf Agreement (the "Note Purchase Agreement") with PGIM, Inc. ("Prudential Capital Group"), an affiliate of Prudential Financial, Inc., and certain affiliates of PGIM, Inc. The Note Purchase Agreement provides for the issuance of up to $75,000 of Senior Secured Notes, and the Company issued $20,000 of Senior Secured Notes with a maturity date of August 23, 2027. The Senior Secured Notes bear interest at a rate of 3.5 percent per year. On April 30, 2019, the Company issued $20,000 of additional Senior Secured Notes with a maturity date of April 30, 2029. The Senior Secured Notes bear interest at a rate of 3.8 percent per year. The Note Purchase Agreement includes certain requirements and covenants, which the Company was in compliance with at December 31, 2019. The Company incurred no new loan fees related to the Note Purchase Agreement during 2019. The unamortized balance of total loan fees related to the Note Purchase Agreement was $149 at December 31, 2019 and is being amortized over the life of the Note Purchase Agreement. The Note Purchase Agreement is secured by substantially all assets, excluding real property. Debt Maturities. Aggregate amount of maturities for long-term debt as of December 31, 2019 are as follows: 2020 $ 401 2021 2,016 2022 3,891 2023 5,600 2024 6,400 Thereafter 23,200 Total $ 41,508 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense is composed of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 6,426 $ 8,844 $ 14,020 State 412 1,317 379 6,838 10,161 14,399 Deferred: Federal 352 55 (3,764) State (46) 1,480 300 306 1,535 (3,464) Total $ 7,144 $ 11,696 $ 10,935 Income tax expense also included tax expense allocated to comprehensive income for 2019, 2018, and 2017 of $14, $73, and $37, respectively (see the Consolidated Statements of Comprehensive Income). On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Act, resulting in significant modifications to the then existing law, impacting the measurement of income taxes for the year ended December 31, 2017, and the years thereafter. The Company recorded a discrete net tax benefit in its Consolidated Statement of Income through net income of $3,343 in the year ended December 31, 2017. This net benefit was driven by a re-measurement of the carrying value of its deferred tax assets and liabilities because of the corporate rate reduction. This net benefit provided a 6.3 percent reduction in the Company’s effective tax rate for the year ended December 31, 2017. A reconciliation of income tax expense at the normal statutory federal rate to income tax expense included in the accompanying Consolidated Statements of Income is below: Year Ended December 31, 2019 2018 2017 "Expected" provision at federal statutory rate $ 9,654 $ 10,286 $ 18,465 State income taxes, net (a) 1,540 2,029 1,612 Change in valuation allowance (168) 1,304 (578) Domestic production activity deduction — — (957) Share-based compensation (a) (2,877) (1,201) (4,254) Compensation limits 148 — 931 Federal and state tax credits (1,302) (807) (1,058) Tax benefit from the Tax Act — — (3,343) Other 149 85 117 Income tax expense $ 7,144 $ 11,696 $ 10,935 Effective tax rate 15.6 % 23.9 % 20.7 % (a) The Company received federal excess tax benefits on share-based compensation awards in 2019, 2018, and 2017 of $2,877, $1,201, and $4,254, respectively, and state benefits of $459, $236 and $371, respectively, for excess tax benefits. The state benefits are part of the State income taxes, net, balances in the above table. Tax benefits from share-based compensation may be substantially less in future years, and in certain instances can create tax determinant. The tax effects of temporary differences giving rise to deferred income taxes shown on the Consolidated Balance Sheets are as follows: December 31, 2019 2018 Deferred income tax assets: Post-retirement liability $ 717 $ 770 Deferred income 300 393 Share-based compensation 1,238 1,581 Capital loss carryforwards 91 379 State tax credit carryforwards 3,198 3,245 State operating loss carryforwards 1,529 1,505 Inventories 1,738 1,476 Operating lease liabilities 1,582 — Other 1,291 1,231 Gross deferred income tax assets 11,684 10,580 Less: valuation allowance (1,284) (1,452) Net deferred income tax assets 10,400 9,128 Deferred income tax liabilities: Fixed assets (10,332) (10,497) Operating lease right-of-use assets (1,577) — Other (420) (308) Gross deferred income tax liabilities (12,329) (10,805) Net deferred income tax liability $ (1,929) $ (1,677) A schedule of the change in valuation allowance is as follows: Balance at December 31, 2017 $ 148 Increase 1,304 Balance at December 31, 2018 1,452 Decrease (168) Balance at December 31, 2019 $ 1,284 As of December 31, 2019 and 2018, the Company’s total valuation allowance of $1,284 and $1,452, respectively, related to net operating loss carryforwards in states in which it is not "more likely than not" to create enough state taxable income to fully utilize the carryforwards before expiration of the carryforward periods, and capital loss carryforwards that the Company is not "more likely than not" to use before they expire. The reduction of the valuation allowance year over year is due to certain capital loss carryforwards and corresponding deferred tax asset related valuation allowance that expired at the end of 2019. As of December 31, 2019 and 2018, the Company had $21,918 and $21,575 in gross state net operating loss carryforwards, respectively. Due to varying state carryforward periods, the state net operating loss carryforwards will expire in varying years between calendar years 2020 and 2039. As of December 31, 2019 and 2018, the Company had gross state tax credit carryforwards of $4,049 and $4,107, respectively. State credits, if not used to offset income tax expense in their respective jurisdictions, will expire in varying years between 2020 and 2035. The Company treats accrued interest and penalties related to tax liabilities, if any, as a component of income tax expense. During 2019, 2018, and 2017, the Company's activity in accrued interest and penalties was not significant. The following is a reconciliation of the total amount of unrecognized tax benefits (excluding interest and penalties) for 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 Beginning of year balance $ 193 $ 185 $ 43 Additions based on prior year tax positions 3 2 130 Additions based on current year tax positions 78 11 12 Reduction for prior year tax positions (19) (5) — End of year balance $ 255 $ 193 $ 185 For each period presented, substantially all of the amount of unrecognized benefits (excluding interest and penalties) would impact the effective tax rate, if recognized. The Company reasonably expects that the amount of unrecognized tax benefit will decrease by approximately half of its value over the next 12 months due to the statute of limitations expiring for unrecognized tax benefits related to the tax year ending 2016. The recognized tax benefit related to this decrease may be less than the gross activity due to audit adjustments. The Company is currently under federal income tax audit for tax year 2016. The Company does not expect this audit to result in a significant adjustment. For federal tax purpose, all tax years after 2015 remain open to adjustment. The Company is subject to examination for its state returns for year 2015, and forward, with the exception of certain net operating losses and credit carryforwards originating in years prior to 2015 that remain subject to adjustment. |
Equity and EPS
Equity and EPS | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity and EPS | EQUITY AND EPS Capital Stock. Common Stockholders are entitled to elect four of the nine members of the Board of Directors, while Preferred Stockholders are entitled to elect the remaining five members. All directors are elected annually for a one EPS. The computations of basic and diluted EPS: Year Ended December 31, 2019 2018 2017 Operations: Net income (a) $ 38,793 $ 37,284 $ 41,823 Less: Income attributable to participating securities (unvested shares and units) (b) 253 708 996 Net income attributable to common shareholders $ 38,540 $ 36,576 $ 40,827 Share information: Basic and diluted weighted average common shares (c) 17,012,288 16,866,176 16,746,731 Basic and diluted EPS $ 2.27 $ 2.17 $ 2.44 (a) Net income attributable to all shareholders. (b) Participating securities included RSUs of 111,365, 326,375, and 368,492 for the years ended December 31, 2019, 2018, and 2017, respectively. (c) Under the two class method, basic weighted average common shares exclude outstanding unvested participating securities. Share Repurchase. On February 25, 2019, the Board of Directors approved a $25,000 share repurchase authorization commencing February 27, 2019 through February 27, 2022. Under the share repurchase program, the company can repurchase stock from time to time for cash in open market purchases, block transactions, and privately negotiated transactions in accordance with applicable federal securities laws. This share repurchase program may be modified, suspended, or terminated by the company at any time without prior notice. From the commencement date of the authorization period through the year ended December 31, 2019, no shares were repurchased under the program. Dividends and Dividend Equivalents Dividend and Dividend Equivalent Information (per Share and Unit) Declaration date Record date Payment date Declared Paid Dividend payment Dividend equivalent payment (a)(b) Total payment (b) 2019 February 25 March 13 March 29 $ 0.10 $ 0.10 $ 1,701 $ 13 $ 1,714 April 29 May 15 May 31 0.10 0.10 1,702 11 1,713 July 29 August 14 August 30 0.10 0.10 1,703 11 1,714 October 29 November 14 November 26 0.10 0.10 1,703 12 1,715 $ 0.40 $ 0.40 $ 6,809 $ 47 $ 6,856 2018 February 21 March 9 March 23 $ 0.08 $ 0.08 $ 1,348 $ 27 $ 1,375 April 30 May 16 June 1 0.08 0.08 1,348 27 1,375 July 31 August 16 August 31 0.08 0.08 1,348 27 1,375 October 30 November 15 November 30 0.08 0.08 1,349 26 1,375 $ 0.32 $ 0.32 $ 5,393 $ 107 $ 5,500 2017 February 15 March 1 March 24 $ 0.04 $ 0.04 $ 668 $ 20 $ 688 May 2 May 15 June 9 0.04 0.04 668 20 688 August 1 August 18 September 8 0.85 0.85 14,215 413 14,628 August 1 August 18 September 11 0.04 0.04 669 19 688 October 31 November 14 December 8 0.04 0.04 669 19 688 $ 1.01 $ 1.01 $ 16,889 $ 491 $ 17,380 (a) Dividend equivalent payments on unvested participating securities (see Note 10). (b) Includes estimated forfeitures. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases for railcars, computer equipment, an office space, and certain equipment. The Company has no finance leases. Leases with terms of twelve months or less are not recorded on the Company’s Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For leases beginning in 2019 and later, lease components are accounted for separately from non-lease components, such as common-area maintenance, based on the relative, observable stand-alone prices of the components. The Company’s leases have remaining lease terms of one year to five years, some of which may include options to extend the lease. Options to renew the Company’s leases were not considered when assessing the value of the right-of-use assets because the Company was not reasonably certain that it will assert the options to renew the leases. As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated incremental collateralized borrowing rate based on the information available at commencement date in determining the present value of lease payments. The following table provides supplemental balance sheet classification information related to leases: Leases Balance Sheet Classification December 31, 2019 Assets Operating Operating lease right-of-use-assets, net $ 6,490 Total leased assets $ 6,490 Liabilities Current Operating Accrued expenses $ 2,244 Noncurrent Operating Long-term operating lease liabilitites 4,267 Total operating lease liability $ 6,511 The following table presents the components of lease costs: Year Ended December 31, 2019 Operating lease costs $ 2,434 Short-term lease costs 767 Sublease income (247) Net lease costs (a) $ 2,954 (a) Recorded as a component of Operating income on the Company’s Consolidated Statement of Income. The following table presents supplemental cash flow and non-cash activity related to lease information: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,414 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 2,064 The following table presents weighted average discount rate and remaining lease term: December 31, 2019 Weighted average discount rate Operating leases 5.77 % Weighted average remaining lease term Operating leases 3.3 years As of December 31, 2019, the maturities of operating lease liabilities were as follows: 2020 $ 2,546 2021 2,023 2022 1,417 2023 835 2024 311 Thereafter — Total lease payments 7,132 Less interest (621) Total operating lease liability $ 6,511 At December 31, 2018, under ASC 840, Leases , the Company’s lease disclosures were: Operating Leases. The Company leases railcars and other assets under various operating leases. For railcar leases, which are the majority, the Company is generally required to pay all service costs associated with the railcars. Rental payments include minimum rentals, and rental expenses with terms longer than one month were $2,081 and $2,372 for 2018 and 2017, respectively. Annual commitments under non-cancelable operating leases totaled $6,897 for the five years ending December 31, 2023, and an additional $55 thereafter. The Company’s future minimum rental payments were $2,224, $1,858, $1,357, $977, and $481 for the years ending December 31, 2019, 2020, 2021, 2022, and 2023, respectively. Maturity of Operating Lease Liabilities December 31, 2018 2019 $ 2,224 2020 1,858 2021 1,357 2022 977 2023 481 After 2023 55 Total lease commitments $ 6,952 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments. As of October 2018, the Company carries $10,000 in industrial revenue bonds with the City of Williamstown, Kentucky (the "City") that mature in 2047, and leases back facilities owned by the City that the Company recorded as property, plant, and equipment, net, on its Consolidated Balance Sheet under a capital lease. The lease payment on the facilities is sufficient to pay principal and interest on the bonds. Because the Company owns all of the outstanding bonds, has a legal right to set-off, and intends to set-off the corresponding lease and interest payment, the Company netted the capital lease obligation with the bond asset and, in turn, reflected no amount for the obligation or the corresponding asset on its Consolidated Balance Sheet at December 31, 2019 and 2018. Contingencies. There are various legal and regulatory proceedings involving the Company and its subsidiaries. The Company accrues estimated costs for a contingency when management believes that a loss is probable and can be reasonably estimated. A chemical release occurred at the Company's Atchison facility on October 21, 2016, which resulted in emissions venting into the air ("the Atchison Chemical Release"). The Company reported the event to the Environmental Protection Agency ("EPA"), the Occupational, Safety, and Health Administration ("OSHA"), and to Kansas and local authorities on that date, and has cooperated fully to investigate and ensure that all appropriate response actions are taken. The Company has also engaged outside experts to assist the investigation and response. There was no significant damage to the Company’s Atchison plant as a result of this incident. No other MGP facilities, including the distillery in Lawrenceburg, Indiana, were affected by this incident. OSHA completed its investigation of the Atchison Chemical Release and, on April 19, 2017, issued its penalty to the Company in the amount of $138. Management settled this assessment with OSHA in full for $75, which was paid on May 16, 2017. A portion, or all, of the penalty amount may be covered by insurance. The EPA informed the Company on August 1, 2017, that it intended to seek an administrative civil penalty of approximately $250 in connection with its investigation of the Atchison Chemical Release. During 2019, the Company reached a resolution on the EPA administrative civil penalty case in the amount of $251, which was included as a component of Accounts payable in the Company’s Consolidated Balance Sheet as of December 31, 2019. On May 29, 2019, federal charges for alleged violations of the Clean Air Act related to the Atchison Chemical Release were filed against the Company, along with another unaffiliated company. During 2019, the Company reached a plea agreement with the Department of Justice pertaining to a negligent Clean Air Act violation pursuant to which the Company agreed, among other things, to a fine of $1,000, which is included as a component of Accounts payable in the Company’s Consolidated Balance Sheet as of December 31, 2019. Private plaintiffs have initiated, and additional private plaintiffs may initiate, legal proceedings for damages resulting from the Atchsion Chemical Release, but the Company is currently unable to reasonably estimate the amount of any such damages that might result. The Company’s insurance is expected to provide coverage of any damages to private plaintiffs, subject to a deductible of $250, but certain regulatory fines or penalties may not be covered and there can be no assurance to the amount or timing of possible insurance recoveries if ultimately claimed by the Company. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) Plans. The Company has established 401(k) plans covering all employees after certain eligibility requirements are met. Amounts charged to operations for employer contributions related to the plans totaled $1,603, $1,488, and $1,299 for 2019, 2018, and 2017, respectively. Post-Employment Benefits. The Company sponsors life insurance coverage as well as medical benefits, including prescription drug coverage, to certain retired employees and their spouses. In 2014, the Company made a change to the plan to terminate post-employment health care and life insurance benefits for all union employees except for a specified grandfathered group. At December 31, 2019, the plan covered 166 participants, both active and retired. The post-employment health care benefit is contributory for spouses under certain circumstances. Otherwise, participant contribution premiums are not required. The health care plan contains fixed deductibles, co-pays, coinsurance, and out-of-pocket limitations. The life insurance segment of the plan is noncontributory and is available to retirees only. The Company funds the post-employment benefit on a pay-as-you-go basis, and there are no assets that have been segregated and restricted to provide for post-employment benefits. Benefit eligibility for the current remaining grandfathered active group (23 employees) is age 62 and 5 years of service. The Company pays claims and premiums as they are submitted. The Company provides varied levels of benefits to participants depending upon the date of retirement and the location in which the employee worked. An older group of grandfathered retirees receives lifetime health care coverage. All other retirees receive coverage to age 65 through continuation of the Company group medical plan and a lump sum advance premium to the MediGap carrier of the retiree’s choice. Life insurance is available over the lifetime of the retiree in all cases. As of December 31, 2019 and 2018, total current benefit obligation recorded in Accrued expense on the Consolidated Balance Sheets was $441 and $467, respectively. As of December 31, 2019 and 2018, total noncurrent benefit obligation was $2,509 and $2,595, which was recorded in Other noncurrent liabilities on the Consolidated Balance Sheets, respectively. Share-Based Compensation Plans. As of December 31, 2019, the Company was authorized to issue 40,000,000 shares of Common Stock and had a treasury share balance of 1,087,840 at December 31, 2019. The Company currently has two active share-based compensation plans: the Employee Equity Incentive Plan of 2014 (the "2014 Plan") and the Non-Employee Director Equity Incentive Plan (the "Directors' Plan"). The plans were approved by shareholders at the Company’s annual meeting in May 2014. The 2014 Plan replaced the 2004 Plan. Detail of activities in both plans follows below. The Company’s share-based compensation plans provide for the awarding of stock options, stock appreciation rights, and shares of restricted stock and RSUs for senior executives and salaried employees, as well as for outside directors. Compensation expense related to restricted stock awards is based on the market price of the stock on the date the Board of Directors communicates the approved award and is amortized over the vesting period of the restricted stock award. The Consolidated Statements of Income for 2019, 2018, and 2017 reflect total share-based compensation costs and director fees for awarded grants of $2,424, $2,612, $2,245, respectively, related to these plans. For long-term incentive awards to be granted in the form of RSUs in 2020 based on 2019 results, the Human Resources and Compensation Committee ("HRCC") determined that the grants would have performance conditions that would be based on the same performance metrics as the Short-Term Incentive Plan (the "STI Plan"). The performance metrics are operating income, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), and EPS. Because management determined at the beginning of 2019 that the performance metrics would most likely be met, amortization of the estimated dollar pool of RSUs to be awarded based on 2019 results was started in the first quarter over an estimated 48 month period, including 12 months to the grant date and an additional 36 months to the vesting date. The Consolidated Statements of Income for 2019, 2018, and 2017 reflects share-based compensation costs for grants to be awarded of $123, $821, and $491, respectively. At the Company’s annual meeting in May 2014, shareholders approved a new Employee Stock Purchase Plan (the "ESPP Plan") with 300,000 shares registered for employee purchase. The ESPP Plan is not active at this time. The Company’s former employee stock purchase plan continued in use until its termination during 2017. 2014 Plan The 2014 Plan, with 1,500,000 shares registered for future grants, provides that vesting occurs pursuant to the time period specified in the particular award agreement approved for that issuance of RSUs, which is to be not less than three years unless vesting is accelerated due to the occurrence of certain events. As of December 31, 2019, 344,190 RSUs had been granted of the 1,500,000 shares approved for under the 2014 Plan. Directors’ Plan The Director’s Plan, with 300,000 shares registered for future grants, provides that vesting occurs pursuant to the time period specified in the particular award agreement approved for that issuance of equity. As of December 31, 2019, 83,683 shares were granted of the 300,000 shares approved for grants under the Directors’ Plan and all 83,683 shares were vested. 2004 Plan Under the 2004 Plan, as amended, the Company granted incentives (including stock options and restricted stock awards) for up to 2,680,000 shares of the Company’s Common Stock to salaried, full time employees, including executive officers. The term of each award generally was determined by the committee of the Board of Directors charged with administering the 2004 Plan. Under the terms of the 2004 Plan, any options granted were non-qualified stock options, exercisable within ten In 2012, the 2004 Plan was amended to provide for grants in the form of RSUs. The awards entitle participants to receive shares of stock following the end of a five RSUs. Summary of unvested RSUs under the Company’s share-based compensation plans for 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 Units Weighted Average Units Weighted Average Units Weighted Average Unvested balance at beginning of year 329,205 $ 25.42 368,492 $ 17.20 527,486 $ 10.17 Granted 45,993 77.78 42,136 78.37 47,514 42.93 Forfeited (22,934) 57.27 (1,080) 28.30 (3,508) 25.74 Vested (235,409) 12.54 (80,343) 15.42 (203,000) 4.82 Unvested balance at end of year 116,855 $ 65.73 329,205 $ 25.42 368,492 $ 17.20 During 2019, 2018, and 2017, the total grant date fair value of RSU awards vested was $2,951, $1,239, and $979, respectively. As of December 31, 2019 there was $2,745 of total estimated unrecognized compensation costs (net of estimated forfeitures) related to granted RSU awards. These costs are expected to be recognized over a weighted average period of approximately 2.2 years. Upon their vesting, the Company purchased restricted stock and RSUs from employees to cover associated withholding taxes. Total treasury stock purchases added 77,481 shares for $5,489 in 2019; 27,214 shares for $2,324 in 2018; and 74,132 shares for $4,663 in 2017. Annual Cash Incentive Plan. The STI Plan was amended and restated as of January 1, 2019. The STI Plan is designed to motivate and retain the Company’s officers and employees and tie short-term incentive compensation to achievement of certain profitability goals by the Company. Pursuant to the STI Plan, short-term incentive compensation is dependent on the achievement of certain performance metrics by the Company, established by the Board of Directors. Each performance metric is calculated in accordance with the rules approved by the HRCC, which may adjust the results to eliminate unusual items. For 2019, 2018, and 2017, the performance metrics were operating income, EBITDA, and EPS. Operating income for the performance metric was defined as reported GAAP operating income adjusted for certain discretionary items as determined by the Company’s management, if applicable ("adjusted operating income"). The HRCC determines the officers and employees eligible to participate under the STI Plan for the plan year as well as the target annual incentive compensation for each participant for each plan year. Amounts expensed under the STI Plan totaled $461, $5,581, and $5,150 for 2019, 2018, and 2017, respectively. Deferred Compensation Plan. The Company established an unfunded Executive Deferred Compensation Plan ("EDC Plan") effective as of June 30, 2018, with a purpose to attract and retain highly-compensated key employees by providing participants with an opportunity to defer receipt of a portion of their salary, bonus, and other specified compensation. The Company's obligations under this plan will change in conjunction with the performance of the participants’ investments, along with contributions to and withdrawals from the plan. Realized and unrealized gains (losses) on deferred compensation plan investments were insignificant and were included as a component of Operating income in the Company's Consolidated Statements of Income, because the Company's deferred compensation investments consist of mutual funds that are considered trading securities. Plan investments are classified as Level 1 in the fair value hierarchy since the investments trade with sufficient frequency and volume to enable the Company to obtain pricing information on an ongoing basis. From plan inception through December 31, 2018, participants were only able to direct the deferral of a portion of their 2018 STI Plan amounts that were paid during first quarter 2019. At the time of payment, the amounts elected for deferral were deposited into the EDC Plan by the Company and allocated by participants among Company-determined investment options. For 2019, participants were able to direct the deferral of a portion of their 2019 base salary and a portion of their estimated accrued 2019 STI Plan amount. Base salary amounts elected for deferral are deposited into the EDC Plan by the Company on a weekly basis and allocated by participants among Company-determined investment options. The current portion of deferred compensation plan deferrals is comprised of estimated amounts to be paid within one year depending on timing of planned disbursements. At December 31, 2019, the EDC Plan investments were $1,185 which were recorded in Other assets on the Company's Consolidated Balance Sheet. There were no Plan assets at December 31, 2018. The |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations | CONCENTRATIONS Significant customers. For 2019, 2018, and 2017, the Company had no sales to an individual customer that accounted for more than 10 percent of consolidated sales. During the years 2019, 2018, and 2017, the Company’s ten largest customers accounted for approximately 39 percent, 40 percent, and 39 percent of consolidated sales, respectively. Significant suppliers. For 2019, the Company had purchases from two grain suppliers that approximated 31 percent of consolidated purchases. In addition, the Company’s ten largest suppliers, accounted for approximately 66 percent of consolidated purchases. For 2018, the Company had purchases from two grain suppliers that approximated 29 percentof consolidated purchases. The Company also purchased food grade alcohol from Pacific Ethanol of approximately 12 percent of consolidated purchases. In addition, the Company’s ten largest suppliers, including these three suppliers, accounted for approximately 68 percent of consolidated purchases. For 2017, the Company had purchases from two grain suppliers that approximated 29 percent of consolidated purchases. In addition, the Company’s ten largest suppliers accounted for approximately 65 percent of consolidated purchases. |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments | OPERATING SEGMENTS At December 31, 2019 and 2018, the Company had two segments: Distillery Products and Ingredient Solutions. The Distillery Products segment consists of food grade alcohol and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry) and fuel grade alcohol. The Distillery Products segment also includes warehouse services, including barrel put away, barrel storage, and barrel retrieval services. Ingredient Solutions segment consists of specialty starches and proteins and commodity starches and proteins. Operating profit for each segment is based on sales less identifiable operating expenses. Non-direct SG&A, interest expense, earnings from the Company’s equity method investments until sold on July 3, 2017, other special charges, and other general miscellaneous expenses are excluded from segment operations and are classified as Corporate. Receivables, inventories, and equipment have been identified with the segments to which they relate. All other assets are considered as Corporate. Year Ended December 31, 2019 2018 2017 Sales to customers: Distillery Products $ 297,233 $ 314,055 $ 291,008 Ingredient Solutions 65,512 62,034 56,440 Total (a) $ 362,745 $ 376,089 $ 347,448 Gross profit: Distillery Products $ 65,952 $ 71,793 $ 66,817 Ingredient Solutions 10,580 11,806 9,199 Total $ 76,532 $ 83,599 $ 76,016 Depreciation and amortization: Distillery Products $ 8,974 $ 8,739 $ 8,490 Ingredient Solutions 1,554 1,567 1,660 Corporate 1,044 1,056 1,158 Total $ 11,572 $ 11,362 $ 11,308 Income (loss) before income taxes: Distillery Products $ 59,309 $ 64,791 $ 60,424 Ingredient Solutions 8,051 9,336 6,613 Corporate (21,423) (25,147) (14,279) Total $ 45,937 $ 48,980 $ 52,758 (a) Sales revenue from foreign sources totaled $19,372, $19,782, and $22,870 for 2019, 2018, and 2017, respectively, and is largely derived from Japan, Thailand, and Canada. The balance of total sales revenue is from domestic sources. December 31, 2019 2018 Identifiable Assets Distillery Products $ 271,766 $ 223,890 Ingredient Solutions 30,802 35,147 Corporate 20,029 18,855 Total (a) $ 322,597 $ 277,892 (a) The Company has no assets located in foreign countries. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2019 2018 2017 Non-cash investing and financing activities: Purchase of property, plant, and equipment in accounts payable $ 4,430 $ 2,389 $ 4,522 Additional cash payment information: Interest paid 1,611 1,578 1,489 Income taxes paid 7,111 8,818 13,526 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Year Ended December 31, 2019 Fourth Third Second First Sales $ 92,463 $ 90,685 $ 90,501 $ 89,096 Cost of sales 70,903 71,895 70,979 72,436 Gross profit 21,560 18,790 19,522 16,660 SG&A expenses 5,309 7,186 8,648 8,147 Operating income 16,251 11,604 10,874 8,513 Interest expense, net (368) (364) (321) (252) Income before income taxes 15,883 11,240 10,553 8,261 Income tax expense 2,936 3,025 2,642 (1,459) Net income $ 12,947 $ 8,215 $ 7,911 $ 9,720 Basic and diluted EPS data (a) $ 0.76 $ 0.48 $ 0.46 $ 0.57 Year Ended December 31, 2018 Fourth Third Second First Sales $ 104,850 $ 95,031 $ 88,252 $ 87,956 Cost of sales 79,242 75,432 68,811 69,005 Gross profit 25,608 19,599 19,441 18,951 SG&A expenses 8,996 7,584 8,309 8,562 Operating income 16,612 12,015 11,132 10,389 Interest expense, net (338) (334) (289) (207) Income before income taxes 16,274 11,681 10,843 10,182 Income tax expense (benefit) 4,452 2,673 3,316 1,255 Net income $ 11,822 $ 9,008 $ 7,527 $ 8,927 Basic and diluted EPS data (a) $ 0.69 $ 0.52 $ 0.44 $ 0.52 (a) Quarterly EPS amounts may not add to amounts for the year because quarterly and annual EPS calculations are performed separately. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividend Declaration On February 24, 2020, the Board of Directors declared a quarterly dividend payable to stockholders of record as of March 13, 2020, of our Common Stock and a dividend equivalent payable to holders of certain RSUs as of March 13, 2020, of $0.12 per share and per unit. The dividend payment and dividend equivalent payment will occur on March 27, 2020. New Credit Agreement On February 14, 2020, the Company entered into a new credit agreement (the "New Credit Agreement") with Wells Fargo. The New Credit Agreement replaces the Company's existing Credit Agreement with Wells Fargo. The New Credit Agreement provides for a $300,000 revolving credit facility. The Company may increase the facility from time to time by an aggregate principal amount of up to $100,000 provided certain conditions are satisfied and at the discretion of the lenders. The Credit Agreement matures on February 14, 2025. The New Credit Agreement is secured by substantially all assets, excluding real property. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company. MGP Ingredients, Inc. ("Company") is a Kansas corporation headquartered in Atchison, Kansas and is a leading producer and supplier of premium distilled spirits and specialty wheat protein and starch food ingredients. Distilled spirits include premium bourbon and rye whiskeys and grain neutral spirits, including vodka and gin. MGP is also a top producer of high quality industrial alcohol for use in both food and non-food applications. The Company's protein and starch food ingredients provide a host of functional, nutritional, and sensory benefits for a wide range of food products to serve the packaged goods industry. The Company's distillery products are derived from corn and other grains (including rye, barley, wheat, barley malt, and milo), and its ingredient products are derived from wheat flour. The majority of the Company’s sales are made directly, or through distributors, to manufacturers and processors of finished packaged goods or to bakeries. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the 2017 and 2018 consolidated financial statements have been reclassified to conform to the 2019 presentation. |
Use of Estimates | Use of Estimates. The financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The application of certain of these policies places demands on management's judgment, with financial reporting results relying on estimation about the effects of matters that are inherently uncertain. For all of these policies, management cautions that future events rarely develop as forecast, and estimates routinely require adjustment and may require material adjustment. |
Inventory | Inventory. Inventory includes finished goods, raw materials in the form of agricultural commodities used in the production process, and certain maintenance and repair items. Bourbons and whiskeys are normally aged in barrels for several years, following industry practice; all barreled bourbon and whiskey is classified as a current asset. The Company includes warehousing, insurance, and other carrying charges applicable to barreled whiskey in inventory costs. Inventories are stated at the lower of cost or net realizable value on the first-in, first-out, or FIFO, method. Inventory valuations are impacted by constantly changing prices paid for key materials, primarily corn. |
Properties, Depreciation, and Amortization | Properties, Depreciation, and Amortization. Property, plant, and equipment are typically stated at cost. Additions, including those that increase the life or utility of an asset, are capitalized and all properties are depreciated over their estimated remaining useful lives. Depreciation and amortization are computed using the straight line method over the following estimated useful lives: Buildings and improvements (a) 10 – 30 years Machinery and equipment 3 – 10 years Office furniture and equipment 5 – 10 years Computer equipment and software 3 – 5 years Motor vehicles 5 years (a) Leasehold improvements are the shorter of economic useful life or life of lease Maintenance costs are expensed as incurred. The cost of property, plant, and equipment sold, retired, or otherwise disposed of, as well as related accumulated depreciation and amortization, are eliminated from the property accounts with related gains and losses reflected in the Consolidated Statements of Income. The Company capitalizes interest costs associated with significant construction projects. Total interest incurred for 2019, 2018, and 2017 is noted below: Year Ended December 31, 2019 2018 2017 Interest costs charged to expense $ 1,305 $ 1,168 $ 1,184 Plus: Interest cost capitalized 575 562 293 Total $ 1,880 $ 1,730 $ 1,477 |
Revenue Recognition | Revenue Recognition. As a result of the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers and related amendments ( Topic 606 ) on January 1, 2018, the Company changed its accounting policy for revenue recognition (see Note 3). Revenue is recognized when control of the promised goods or services, through performance obligations by the Company, is transferred to the customer in an amount that reflects the consideration it expects to be entitled to in exchange for the performance obligations. The term between invoicing and when payment is due is not significant and the period between when the entity transfers the promised good or service to the customer and when the customer pays for that good or service is one year or less. Excise taxes that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer are excluded from revenue. Revenue is recognized for the sale of products at the point in time finished products are delivered to the customer in accordance with shipping terms. This is a faithful depiction of the satisfaction of the performance obligation because, at that point control passes to the customer, the customer has legal title and the risk and rewards of ownership have transferred, and the customer has present obligation to pay. The Company’s Distillery Products segment routinely enters into bill and hold arrangements, whereby the Company produces and sells unaged distillate to customers, and the product is subsequently barreled at the customer’s request and warehoused at a Company location for an extended period of time in accordance with directions received from the Company’s customers. Even though the unaged distillate remains in the Company’s possession, a sale is recognized at the point in time when the customer obtains control of the product. Control is transferred to the customer in bill and hold transactions when: customer acceptance specifications have been met, legal title has transferred, the customer has a present obligation to pay for the product and the risk and rewards of ownership have transferred to the customer. Additionally all the following bill and hold criteria have been met in order for control to be transferred to the customer: the customer has requested the product be warehoused, the product has been identified as separately belonging to the customer, the product is currently ready for physical transfer to the customer, and the Company does not have the ability to use the product or direct it to another customer. Warehouse service revenue is recognized over the time that warehouse services are rendered and as they are rendered. This is a faithful depiction of the satisfaction of the performance obligation because control of the aging products has already passed to the customer and there are no additional performance activities required by the Company, except as requested by the customer. The performance of the service activities, as requested, is invoiced as satisfied and revenue is concurrently recognized. |
Income Taxes | Income Taxes. The Company accounts for income taxes using an asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is recognized if it is "more likely than not" that at least some portion of the deferred tax asset will not be realized. |
EPS | EPS. Basic and diluted EPS is computed using the two class method, which is an earnings allocation formula that determines net income per share for each class of Common Stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each year or period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into three levels based upon the observability of inputs. Fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value in its entirety requires judgment and considers factors specific to the asset or liability. The Company’s short-term financial instruments include cash and cash equivalents, accounts receivable and accounts payable. The carrying value of the short-term financial instruments approximates the fair value due to their short-term nature. These financial instruments have no stated maturities or the financial instruments have short-term maturities that approximate market. |
Derivative Instruments | Derivative Instruments. Certain commodities the Company uses in its production process, or input costs, exposes it to market price risk due to volatility in the prices for those commodities. Through the Company’s grain supply contracts for its Atchison and Lawrenceburg facilities, its wheat flour supply contract for the Atchison facility, and its natural gas contracts for both facilities, it purchases grain, wheat flour, and natural gas, respectively, for delivery from one Derivatives and Hedging , because the quantities involved are for amounts to be consumed within the normal expected production process. |
Recently Accounting Pronouncements | Recently Adopted Accounting Standard Updates. The Company adopted ASU 2016-02, Leases (Topic 842) and subsequent updates, as of January 1, 2019, using the modified retrospective approach (See Note 8). The modified retrospective approach provides a method for recording existing leases at adoption and using the effective date as the date of application (the “effective date method”). Under the effective date method, the comparative period reporting is unchanged. Comparative reporting periods are presented in accordance with Topic 840 (previous lease guidance), while periods subsequent to the effective date are presented in accordance with Topic 842. In addition, the Company elected the available practical expedients and implemented internal controls to enable the preparation of financial information on adoption. Adoption of the new standard resulted in the Company recording Operating lease right-of-use assets and Operating lease liabilities in its Consolidated Balance Sheet of $6,598 and $6,952, respectively, as of January 1, 2019. The standard did not impact the Company’s consolidated net earnings and also had no impact on its cash flows. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). The Company adopted this guidance on January 1, 2019. We elected to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings which resulted in an immaterial effect on its consolidated financial results and disclosures. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which more closely aligns the accounting for employee and nonemployee share-based payments. The Company adopted this guidance on January 1, 2019, and it had no impact on its consolidated financial results and disclosures. Recently Issued Accounting Pronouncement. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent updates. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019. The guidance is to be adopted using the modified retrospective approach. The Company is still evaluating the effect that ASU 2016-13 will have on the Company, however we do not expect this to have a material impact to the consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosure requirements on fair value measurements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted upon issuance of this update. The Company is still evaluating the effect that ASU 2018-13 will have on the Company, however we do not expect this to have a material impact to the consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Useful Lives | Depreciation and amortization are computed using the straight line method over the following estimated useful lives: Buildings and improvements (a) 10 – 30 years Machinery and equipment 3 – 10 years Office furniture and equipment 5 – 10 years Computer equipment and software 3 – 5 years Motor vehicles 5 years (a) Leasehold improvements are the shorter of economic useful life or life of lease |
Schedule of Interest Expenses Incurred | Total interest incurred for 2019, 2018, and 2017 is noted below: Year Ended December 31, 2019 2018 2017 Interest costs charged to expense $ 1,305 $ 1,168 $ 1,184 Plus: Interest cost capitalized 575 562 293 Total $ 1,880 $ 1,730 $ 1,477 |
Other Balance Sheet Captions (T
Other Balance Sheet Captions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Schedule of Inventory | Inventory. December 31, 2019 2018 Finished goods $ 16,654 $ 17,296 Barreled distillate (bourbons and whiskeys) 104,249 76,374 Raw materials 4,920 4,906 Work in process 1,766 1,550 Maintenance materials 8,200 7,541 Other 1,142 1,102 Total $ 136,931 $ 108,769 |
Property, Plant and Equipment, Net | Property, plant, and equipment, net. December 31, 2019 2018 Land, buildings, and improvements $ 105,257 $ 90,992 Transportation equipment 3,317 3,308 Machinery and equipment 190,930 184,779 Construction in progress 14,454 16,814 Property, plant, and equipment, at cost 313,958 295,893 Less accumulated depreciation and amortization (185,539) (175,105) Property, plant, and equipment, net $ 128,419 $ 120,788 |
Schedule of Accrued Expenses | Accrued expenses. December 31, 2019 2018 Employee benefit plans $ 590 $ 1,288 Salaries and wages 3,189 7,099 Property taxes 1,445 1,248 Current operating lease liabilities 2,244 — Other 1,915 2,079 Total $ 9,383 $ 11,714 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Revenues Disaggregated | The following table presents the Company's sales disaggregated by segment and major products and services. Year Ended December 31, 2019 2018 2017 (a) Distillery Products Brown Goods $ 107,190 $ 125,857 $ 113,413 White Goods 62,862 62,574 64,585 Premium beverage alcohol 170,052 188,431 177,998 Industrial alcohol 79,833 80,650 76,636 Food grade alcohol 249,885 269,081 254,634 Fuel grade alcohol 5,949 6,347 6,368 Distillers feed and related co-products 26,743 25,698 19,332 Warehouse services 14,656 12,929 10,674 Total Distillery Products 297,233 314,055 291,008 Ingredient Solutions Specialty wheat starches 30,816 28,594 28,092 Specialty wheat proteins 22,359 21,098 19,458 Commodity wheat starch 9,628 9,223 8,288 Commodity wheat protein 2,709 3,119 602 Total Ingredient Solutions 65,512 62,034 56,440 Total sales $ 362,745 $ 376,089 $ 347,448 (a) Prior year amounts were not adjusted upon adoption of Topic 606. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Financial Information of Equity Method Investment | Condensed financial information of the Company’s equity method investment in ICP for the year ended December 31, 2017: Year Ended December 31, ICP’s Operating results: 2017 Sales $ 78,062 Cost of sales and expenses (a) (79,224) Net loss $ (1,162) (a) Includes depreciation and amortization of $1,720 for 2017. |
Corporate Borrowings (Tables)
Corporate Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Indebtedness Outstanding. The following table presents the Company’s outstanding indebtedness December 31, 2019 2018 Credit Agreement - Revolver, 3.19% (variable rate) due 2022 (a) $ 300 $ 11,000 Secured Promissory Note, 3.71% (fixed rate) due 2022 (a) 1,208 1,594 Prudential Note Purchase Agreement, 3.53% (fixed rate) due 2027 (a) 20,000 20,000 Prudential Note Purchase Agreement, 3.80% (fixed rate) due 2029 (a) 20,000 — Total indebtedness outstanding 41,508 32,594 Less unamortized loan fees (b) (448) (580) Total indebtedness outstanding, net 41,060 32,014 Less current maturities of long-term debt (401) (386) Long-term debt $ 40,659 $ 31,628 (a) Interest rates are as of December 31, 2019. (b) Loan fees are being amortized over the life of the Credit Agreement and Note Purchase Agreement. |
Contractual Obligation, Fiscal Year Maturity Schedule | Debt Maturities. Aggregate amount of maturities for long-term debt as of December 31, 2019 are as follows: 2020 $ 401 2021 2,016 2022 3,891 2023 5,600 2024 6,400 Thereafter 23,200 Total $ 41,508 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense is composed of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 6,426 $ 8,844 $ 14,020 State 412 1,317 379 6,838 10,161 14,399 Deferred: Federal 352 55 (3,764) State (46) 1,480 300 306 1,535 (3,464) Total $ 7,144 $ 11,696 $ 10,935 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense at the normal statutory federal rate to income tax expense included in the accompanying Consolidated Statements of Income is below: Year Ended December 31, 2019 2018 2017 "Expected" provision at federal statutory rate $ 9,654 $ 10,286 $ 18,465 State income taxes, net (a) 1,540 2,029 1,612 Change in valuation allowance (168) 1,304 (578) Domestic production activity deduction — — (957) Share-based compensation (a) (2,877) (1,201) (4,254) Compensation limits 148 — 931 Federal and state tax credits (1,302) (807) (1,058) Tax benefit from the Tax Act — — (3,343) Other 149 85 117 Income tax expense $ 7,144 $ 11,696 $ 10,935 Effective tax rate 15.6 % 23.9 % 20.7 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences giving rise to deferred income taxes shown on the Consolidated Balance Sheets are as follows: December 31, 2019 2018 Deferred income tax assets: Post-retirement liability $ 717 $ 770 Deferred income 300 393 Share-based compensation 1,238 1,581 Capital loss carryforwards 91 379 State tax credit carryforwards 3,198 3,245 State operating loss carryforwards 1,529 1,505 Inventories 1,738 1,476 Operating lease liabilities 1,582 — Other 1,291 1,231 Gross deferred income tax assets 11,684 10,580 Less: valuation allowance (1,284) (1,452) Net deferred income tax assets 10,400 9,128 Deferred income tax liabilities: Fixed assets (10,332) (10,497) Operating lease right-of-use assets (1,577) — Other (420) (308) Gross deferred income tax liabilities (12,329) (10,805) Net deferred income tax liability $ (1,929) $ (1,677) |
Summary of Valuation Allowance | A schedule of the change in valuation allowance is as follows: Balance at December 31, 2017 $ 148 Increase 1,304 Balance at December 31, 2018 1,452 Decrease (168) Balance at December 31, 2019 $ 1,284 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a reconciliation of the total amount of unrecognized tax benefits (excluding interest and penalties) for 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 Beginning of year balance $ 193 $ 185 $ 43 Additions based on prior year tax positions 3 2 130 Additions based on current year tax positions 78 11 12 Reduction for prior year tax positions (19) (5) — End of year balance $ 255 $ 193 $ 185 |
Equity and EPS (Tables)
Equity and EPS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted EPS: Year Ended December 31, 2019 2018 2017 Operations: Net income (a) $ 38,793 $ 37,284 $ 41,823 Less: Income attributable to participating securities (unvested shares and units) (b) 253 708 996 Net income attributable to common shareholders $ 38,540 $ 36,576 $ 40,827 Share information: Basic and diluted weighted average common shares (c) 17,012,288 16,866,176 16,746,731 Basic and diluted EPS $ 2.27 $ 2.17 $ 2.44 (a) Net income attributable to all shareholders. (b) Participating securities included RSUs of 111,365, 326,375, and 368,492 for the years ended December 31, 2019, 2018, and 2017, respectively. (c) Under the two class method, basic weighted average common shares exclude outstanding unvested participating securities. |
Dividends | Dividends and Dividend Equivalents Dividend and Dividend Equivalent Information (per Share and Unit) Declaration date Record date Payment date Declared Paid Dividend payment Dividend equivalent payment (a)(b) Total payment (b) 2019 February 25 March 13 March 29 $ 0.10 $ 0.10 $ 1,701 $ 13 $ 1,714 April 29 May 15 May 31 0.10 0.10 1,702 11 1,713 July 29 August 14 August 30 0.10 0.10 1,703 11 1,714 October 29 November 14 November 26 0.10 0.10 1,703 12 1,715 $ 0.40 $ 0.40 $ 6,809 $ 47 $ 6,856 2018 February 21 March 9 March 23 $ 0.08 $ 0.08 $ 1,348 $ 27 $ 1,375 April 30 May 16 June 1 0.08 0.08 1,348 27 1,375 July 31 August 16 August 31 0.08 0.08 1,348 27 1,375 October 30 November 15 November 30 0.08 0.08 1,349 26 1,375 $ 0.32 $ 0.32 $ 5,393 $ 107 $ 5,500 2017 February 15 March 1 March 24 $ 0.04 $ 0.04 $ 668 $ 20 $ 688 May 2 May 15 June 9 0.04 0.04 668 20 688 August 1 August 18 September 8 0.85 0.85 14,215 413 14,628 August 1 August 18 September 11 0.04 0.04 669 19 688 October 31 November 14 December 8 0.04 0.04 669 19 688 $ 1.01 $ 1.01 $ 16,889 $ 491 $ 17,380 (a) Dividend equivalent payments on unvested participating securities (see Note 10). (b) Includes estimated forfeitures. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Costs | The following table provides supplemental balance sheet classification information related to leases: Leases Balance Sheet Classification December 31, 2019 Assets Operating Operating lease right-of-use-assets, net $ 6,490 Total leased assets $ 6,490 Liabilities Current Operating Accrued expenses $ 2,244 Noncurrent Operating Long-term operating lease liabilitites 4,267 Total operating lease liability $ 6,511 The following table presents the components of lease costs: Year Ended December 31, 2019 Operating lease costs $ 2,434 Short-term lease costs 767 Sublease income (247) Net lease costs (a) $ 2,954 (a) Recorded as a component of Operating income on the Company’s Consolidated Statement of Income. The following table presents supplemental cash flow and non-cash activity related to lease information: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,414 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 2,064 The following table presents weighted average discount rate and remaining lease term: December 31, 2019 Weighted average discount rate Operating leases 5.77 % Weighted average remaining lease term Operating leases 3.3 years |
Topic 842 - Lessee, Operating Lease, Liability, Maturity | As of December 31, 2019, the maturities of operating lease liabilities were as follows: 2020 $ 2,546 2021 2,023 2022 1,417 2023 835 2024 311 Thereafter — Total lease payments 7,132 Less interest (621) Total operating lease liability $ 6,511 |
Topic 840 - Lessee, Operating Lease, Future Minimum Rental Payments | Maturity of Operating Lease Liabilities December 31, 2018 2019 $ 2,224 2020 1,858 2021 1,357 2022 977 2023 481 After 2023 55 Total lease commitments $ 6,952 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Summary of unvested RSUs under the Company’s share-based compensation plans for 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 Units Weighted Average Units Weighted Average Units Weighted Average Unvested balance at beginning of year 329,205 $ 25.42 368,492 $ 17.20 527,486 $ 10.17 Granted 45,993 77.78 42,136 78.37 47,514 42.93 Forfeited (22,934) 57.27 (1,080) 28.30 (3,508) 25.74 Vested (235,409) 12.54 (80,343) 15.42 (203,000) 4.82 Unvested balance at end of year 116,855 $ 65.73 329,205 $ 25.42 368,492 $ 17.20 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Year Ended December 31, 2019 2018 2017 Sales to customers: Distillery Products $ 297,233 $ 314,055 $ 291,008 Ingredient Solutions 65,512 62,034 56,440 Total (a) $ 362,745 $ 376,089 $ 347,448 Gross profit: Distillery Products $ 65,952 $ 71,793 $ 66,817 Ingredient Solutions 10,580 11,806 9,199 Total $ 76,532 $ 83,599 $ 76,016 Depreciation and amortization: Distillery Products $ 8,974 $ 8,739 $ 8,490 Ingredient Solutions 1,554 1,567 1,660 Corporate 1,044 1,056 1,158 Total $ 11,572 $ 11,362 $ 11,308 Income (loss) before income taxes: Distillery Products $ 59,309 $ 64,791 $ 60,424 Ingredient Solutions 8,051 9,336 6,613 Corporate (21,423) (25,147) (14,279) Total $ 45,937 $ 48,980 $ 52,758 (a) Sales revenue from foreign sources totaled $19,372, $19,782, and $22,870 for 2019, 2018, and 2017, respectively, and is largely derived from Japan, Thailand, and Canada. The balance of total sales revenue is from domestic sources. |
Schedule of Segment Reporting Identifiable Assets | December 31, 2019 2018 Identifiable Assets Distillery Products $ 271,766 $ 223,890 Ingredient Solutions 30,802 35,147 Corporate 20,029 18,855 Total (a) $ 322,597 $ 277,892 (a) The Company has no assets located in foreign countries. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Year Ended December 31, 2019 2018 2017 Non-cash investing and financing activities: Purchase of property, plant, and equipment in accounts payable $ 4,430 $ 2,389 $ 4,522 Additional cash payment information: Interest paid 1,611 1,578 1,489 Income taxes paid 7,111 8,818 13,526 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Year Ended December 31, 2019 Fourth Third Second First Sales $ 92,463 $ 90,685 $ 90,501 $ 89,096 Cost of sales 70,903 71,895 70,979 72,436 Gross profit 21,560 18,790 19,522 16,660 SG&A expenses 5,309 7,186 8,648 8,147 Operating income 16,251 11,604 10,874 8,513 Interest expense, net (368) (364) (321) (252) Income before income taxes 15,883 11,240 10,553 8,261 Income tax expense 2,936 3,025 2,642 (1,459) Net income $ 12,947 $ 8,215 $ 7,911 $ 9,720 Basic and diluted EPS data (a) $ 0.76 $ 0.48 $ 0.46 $ 0.57 Year Ended December 31, 2018 Fourth Third Second First Sales $ 104,850 $ 95,031 $ 88,252 $ 87,956 Cost of sales 79,242 75,432 68,811 69,005 Gross profit 25,608 19,599 19,441 18,951 SG&A expenses 8,996 7,584 8,309 8,562 Operating income 16,612 12,015 11,132 10,389 Interest expense, net (338) (334) (289) (207) Income before income taxes 16,274 11,681 10,843 10,182 Income tax expense (benefit) 4,452 2,673 3,316 1,255 Net income $ 11,822 $ 9,008 $ 7,527 $ 8,927 Basic and diluted EPS data (a) $ 0.69 $ 0.52 $ 0.44 $ 0.52 (a) Quarterly EPS amounts may not add to amounts for the year because quarterly and annual EPS calculations are performed separately. |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Policies [Line Items] | ||||||||||||
Interest costs charged to expense | $ 368 | $ 364 | $ 321 | $ 252 | $ 338 | $ 334 | $ 289 | $ 207 | $ 1,305 | $ 1,168 | $ 1,184 | |
Plus: Interest cost capitalized | 575 | 562 | 293 | |||||||||
Total | 1,880 | 1,730 | $ 1,477 | |||||||||
Debt instrument, fair value disclosure | 42,534 | 32,018 | 42,534 | 32,018 | ||||||||
Long-term debt, including current maturities | 41,060 | 32,014 | 41,060 | 32,014 | ||||||||
Operating lease right-of-use assets, net | 6,490 | $ 0 | 6,490 | $ 0 | ||||||||
Total operating lease liability | $ 6,511 | $ 6,511 | ||||||||||
ASU 2016-02 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Operating lease right-of-use assets, net | $ 6,598 | |||||||||||
Total operating lease liability | $ 6,952 | |||||||||||
Minimum | Commodity Contract | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Length of time hedged in commodity hedge | 1 month | |||||||||||
Maximum | Commodity Contract | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Length of time hedged in commodity hedge | 24 months | |||||||||||
Building and improvements | Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 10 years | |||||||||||
Building and improvements | Maximum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 30 years | |||||||||||
Machinery and equipment | Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 3 years | |||||||||||
Machinery and equipment | Maximum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 10 years | |||||||||||
Office furniture and equipment | Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Office furniture and equipment | Maximum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 10 years | |||||||||||
Computer equipment and software | Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 3 years | |||||||||||
Computer equipment and software | Maximum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 5 years | |||||||||||
Motor vehicles | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Estimated useful lives | 5 years |
Other Balance Sheet Captions -
Other Balance Sheet Captions - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Inventory [Abstract] | ||
Finished goods | $ 16,654 | $ 17,296 |
Barreled distillate (bourbons and whiskeys) | 104,249 | 76,374 |
Raw materials | 4,920 | 4,906 |
Work in process | 1,766 | 1,550 |
Maintenance materials | 8,200 | 7,541 |
Other | 1,142 | 1,102 |
Total | $ 136,931 | $ 108,769 |
Other Balance Sheet Captions _2
Other Balance Sheet Captions - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Property and Equipment [Abstract] | ||
Land, buildings, and improvements | $ 105,257 | $ 90,992 |
Transportation equipment | 3,317 | 3,308 |
Machinery and equipment | 190,930 | 184,779 |
Construction in progress | 14,454 | 16,814 |
Property, plant, and equipment, at cost | 313,958 | 295,893 |
Less accumulated depreciation and amortization | (185,539) | (175,105) |
Property, plant, and equipment, net | $ 128,419 | $ 120,788 |
Other Balance Sheet Captions _3
Other Balance Sheet Captions - Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Accrued Expenses [Abstract] | ||
Employee benefit plans | $ 590 | $ 1,288 |
Salaries and wages | 3,189 | 7,099 |
Property taxes | 1,445 | 1,248 |
Current operating lease liabilities | 2,244 | 0 |
Other | 1,915 | 2,079 |
Total | $ 9,383 | $ 11,714 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 92,463 | $ 90,685 | $ 90,501 | $ 89,096 | $ 104,850 | $ 95,031 | $ 88,252 | $ 87,956 | $ 362,745 | $ 376,089 | $ 347,448 |
Distillery Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 297,233 | 314,055 | 291,008 | ||||||||
Distillery Products | Brown Goods | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 107,190 | 125,857 | 113,413 | ||||||||
Distillery Products | White Goods | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 62,862 | 62,574 | 64,585 | ||||||||
Distillery Products | Premium beverage alcohol | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 170,052 | 188,431 | 177,998 | ||||||||
Distillery Products | Industrial alcohol | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 79,833 | 80,650 | 76,636 | ||||||||
Distillery Products | Food grade alcohol | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 249,885 | 269,081 | 254,634 | ||||||||
Distillery Products | Fuel grade alcohol | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,949 | 6,347 | 6,368 | ||||||||
Distillery Products | Distillers feed and related co-products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 26,743 | 25,698 | 19,332 | ||||||||
Distillery Products | Warehouse services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 14,656 | 12,929 | 10,674 | ||||||||
Ingredient Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 65,512 | 62,034 | 56,440 | ||||||||
Ingredient Solutions | Specialty wheat starches | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 30,816 | 28,594 | 28,092 | ||||||||
Ingredient Solutions | Specialty wheat proteins | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 22,359 | 21,098 | 19,458 | ||||||||
Ingredient Solutions | Commodity wheat starch | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 9,628 | 9,223 | 8,288 | ||||||||
Ingredient Solutions | Commodity wheat protein | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 2,709 | $ 3,119 | $ 602 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 03, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 0 | $ 0 | |||
Return of equity method investment | $ 22,832,000 | ||||
Gain (loss) on equity method investments | 0 | 0 | 11,381,000 | ||
Equity method ownership percentage | 30.00% | ||||
Equity method investment earnings | 0 | 0 | (348,000) | ||
Related party purchases | $ 0 | $ 0 | 18,425,000 | ||
ICP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Related party purchases | 18,425,000 | ||||
Illinois Corn Processings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Return of equity method investment | $ 7,430,000 | ||||
Illinois Corn Processings LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain (loss) on equity method investments | 11,381,000 | ||||
Related party sales to MGPI | $ 17,672,000 |
Equity Method Investments - Ope
Equity Method Investments - Operating Results (Details) - Illinois Corn Processings LLC $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Net sales | $ 78,062 |
Cost of sales and expenses | (79,224) |
Net loss | (1,162) |
Depreciation and amortization | $ 1,720 |
Corporate Borrowings - Indebted
Corporate Borrowings - Indebtedness Outstanding Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 41,508 | $ 32,594 |
Unamortized loan fees | (448) | (580) |
Total indebtedness outstanding, net | 41,060 | 32,014 |
Less current maturities of long-term debt | (401) | (386) |
Long-term debt | 40,659 | 31,628 |
Credit Agreement | Revolver | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300 | 11,000 |
Credit Agreement, interest rate | 3.19% | |
Senior Notes | Secured Promissory Note | ||
Debt Instrument [Line Items] | ||
Senior secured notes, stated interest rate | 3.71% | |
Secured Debt | Secured Promissory Note | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,208 | 1,594 |
Secured Debt | Note Purchase Agreement Due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 20,000 | 20,000 |
Senior secured notes, stated interest rate | 3.53% | |
Secured Debt | Note Purchase Agreement Due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 20,000 | $ 0 |
Senior secured notes, stated interest rate | 3.80% |
Corporate Borrowings - Narrativ
Corporate Borrowings - Narrative (Details) - USD ($) | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Aug. 23, 2017 |
Debt Instrument [Line Items] | |||||
Unamortized loan fees | $ 448,000 | $ 580,000 | |||
Long-term debt, gross | 41,508,000 | 32,594,000 | |||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
New loan fees on credit agreement | 0 | ||||
Unamortized loan fees | 299,000 | ||||
Note Purchase Agreement | |||||
Debt Instrument [Line Items] | |||||
Unamortized loan fees | 149,000 | ||||
Secured Debt | Note Purchase Agreement | |||||
Debt Instrument [Line Items] | |||||
New loan fees on credit agreement | 0 | ||||
Term loan face amount | 75,000,000 | ||||
Secured Debt | Note Purchase Agreement Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 20,000,000 | 20,000,000 | |||
Proceeds from issuance of debt | $ 20,000,000 | ||||
Senior secured notes, stated interest rate | 3.53% | ||||
Secured Debt | Note Purchase Agreement Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 20,000,000 | 0 | |||
Proceeds from issuance of debt | $ 20,000,000 | ||||
Senior secured notes, stated interest rate | 3.80% | ||||
Revolver | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 300,000 | $ 11,000,000 | |||
Remaining borrowing capacity | $ 149,700,000 | ||||
Credit Agreement, interest rate | 3.19% | ||||
Revolver | Credit Agreement | Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Contingent increase in borrowing capacity | $ 25,000,000 |
Corporate Borrowings - Summary
Corporate Borrowings - Summary of Leases and Debt Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 401 |
2021 | 2,016 |
2022 | 3,891 |
2023 | 5,600 |
2024 | 6,400 |
Thereafter | 23,200 |
Total | $ 41,508 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 6,426 | $ 8,844 | $ 14,020 | ||||||||
State | 412 | 1,317 | 379 | ||||||||
Current income tax expense (benefit) | 6,838 | 10,161 | 14,399 | ||||||||
Deferred: | |||||||||||
Federal | 352 | 55 | (3,764) | ||||||||
State | (46) | 1,480 | 300 | ||||||||
Deferred income tax expense (benefit) | 306 | 1,535 | (3,464) | ||||||||
Total | $ 2,936 | $ 3,025 | $ 2,642 | $ (1,459) | $ 4,452 | $ 2,673 | $ 3,316 | $ 1,255 | 7,144 | 11,696 | $ 10,935 |
Total operating lease liability | 6,511 | 6,511 | |||||||||
Operating lease right-of-use assets, net | $ 6,490 | $ 0 | $ 6,490 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) allocated to comprehensive income (loss) | $ 14 | $ 73 | $ 37 |
Tax act provisional tax benefit | $ 3,343 | ||
Net tax benefit due to Tax Cuts and Jobs Act of 2017, percent | 0.063 | ||
Valuation Allowance | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance and reserves | 1,284 | 1,452 | $ 148 |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 21,918 | 21,575 | |
Tax credit carryforward | $ 4,049 | $ 4,107 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of provision for income taxes from continuing operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
"Expected" provision at federal statutory rate | $ 9,654 | $ 10,286 | $ 18,465 | ||||||||
State income taxes, net | 1,540 | 2,029 | 1,612 | ||||||||
Change in valuation allowance | (168) | 1,304 | (578) | ||||||||
Domestic production activity deduction | 0 | 0 | (957) | ||||||||
Compensation limits | 148 | 0 | 931 | ||||||||
Federal and state tax credits | (1,302) | (807) | (1,058) | ||||||||
Tax benefit from the Tax Act | 0 | 0 | (3,343) | ||||||||
Other | 149 | 85 | 117 | ||||||||
Total | $ 2,936 | $ 3,025 | $ 2,642 | $ (1,459) | $ 4,452 | $ 2,673 | $ 3,316 | $ 1,255 | $ 7,144 | $ 11,696 | $ 10,935 |
Effective tax rate | 15.60% | 23.90% | 20.70% | ||||||||
State | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Share-based compensation | $ 459 | $ 236 | $ 371 | ||||||||
Federal | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Share-based compensation | $ (2,877) | $ (1,201) | $ (4,254) |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences Related to Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Post-retirement liability | $ 717 | $ 770 |
Deferred income | 300 | 393 |
Share-based compensation | 1,238 | 1,581 |
Capital loss carryforwards | 91 | 379 |
State tax credit carryforwards | 3,198 | 3,245 |
State operating loss carryforwards | 1,529 | 1,505 |
Inventories | 1,738 | 1,476 |
Operating lease liabilities | 1,582 | 0 |
Other | 1,291 | 1,231 |
Gross deferred income tax assets | 11,684 | 10,580 |
Less: valuation allowance | (1,284) | (1,452) |
Net deferred income tax assets | 10,400 | 9,128 |
Deferred income tax liabilities: | ||
Fixed assets | (10,332) | (10,497) |
Operating lease right-of-use assets | (1,577) | 0 |
Other | (420) | (308) |
Gross deferred income tax liabilities | (12,329) | (10,805) |
Net deferred income tax liability | $ (1,929) | $ (1,677) |
Income Taxes - Change in Valuat
Income Taxes - Change in Valuation Allowance (Details) - Valuation Allowance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at beginning of period | $ 1,452 | $ 148 |
Increase | (168) | 1,304 |
Balance at end of period | $ 1,284 | $ 1,452 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Beginning of year balance | $ 193 | $ 185 | $ 43 |
Additions based on prior year tax positions | 3 | 2 | 130 |
Additions based on current year tax positions | 78 | 11 | 12 |
Reduction for prior year tax positions | (19) | (5) | 0 |
End of year balance | $ 255 | $ 193 | $ 185 |
Equity and EPS - Narrative (Det
Equity and EPS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019board_membershares | Feb. 25, 2019shares | |
Equity [Abstract] | ||
Number of board members that common stockholders are entitled to elect | 4 | |
Total number of board members | 9 | |
Number of board members preferred stock shareholders entitled to elect | 5 | |
Board of directors, term of service | 1 year | |
Minimum single shareholder ownership percentage to call special stockholder meeting (as a percent) | 10.00% | |
Share repurchase authorization (in shares) | shares | 25,000,000 | |
Stock repurchased during period (in shares) | shares | 0 |
Equity and EPS - Computations o
Equity and EPS - Computations of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operations: | |||||||||||
Net income | $ 12,947 | $ 8,215 | $ 7,911 | $ 9,720 | $ 11,822 | $ 9,008 | $ 7,527 | $ 8,927 | $ 38,793 | $ 37,284 | $ 41,823 |
Less: Income attributable to participating securities (unvested shares and units) | 253 | 708 | 996 | ||||||||
Net income attributable to common shareholders and used in Earnings Per Share calculation | $ 38,540 | $ 36,576 | $ 40,827 | ||||||||
Share information: | |||||||||||
Basic and diluted weighted average common shares (in shares) | 17,012,288 | 16,866,176 | 16,746,731 | ||||||||
Basic and diluted EPS (in dollars per share) | $ 0.76 | $ 0.48 | $ 0.46 | $ 0.57 | $ 0.69 | $ 0.52 | $ 0.44 | $ 0.52 | $ 2.27 | $ 2.17 | $ 2.44 |
Restricted Stock Units (RSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Participating securities (in shares) | 111,365 | 326,375 | 368,492 |
Equity and EPS - Dividends (Det
Equity and EPS - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 11, 2017 | Sep. 08, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||||||||||||||||
Dividends declared (in dollars per share) | $ 0.04 | $ 0.85 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.40 | $ 0.32 | $ 1.01 |
Dividends paid (in dollars per share) | $ 0.04 | $ 0.85 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.40 | $ 0.32 | $ 1.01 |
Dividend payment | $ 669 | $ 14,215 | $ 1,703 | $ 1,703 | $ 1,702 | $ 1,701 | $ 1,349 | $ 1,348 | $ 1,348 | $ 1,348 | $ 669 | $ 668 | $ 668 | $ 6,809 | $ 5,393 | $ 16,889 |
Dividend equivalent payment | 19 | 413 | 12 | 11 | 11 | 13 | 26 | 27 | 27 | 27 | 19 | 20 | 20 | 47 | 107 | 491 |
Total payment | $ 688 | $ 14,628 | $ 1,715 | $ 1,714 | $ 1,713 | $ 1,714 | $ 1,375 | $ 1,375 | $ 1,375 | $ 1,375 | $ 688 | $ 688 | $ 688 | $ 6,856 | $ 5,500 | $ 17,380 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 2,081 | $ 2,372 | |
Lease payments due next five years | $ 6,897 | ||
Lease payments due after year five | 55 | $ 0 | |
Operating leases, 2019 payment | 2,224 | ||
Operating leases, 2020 payment | 1,858 | ||
Operating leases, 2021 payment | 1,357 | ||
Operating leases, 2022 payment | 977 | ||
Operating leases, 2023 payment | $ 481 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 5 years |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Operating lease right-of-use-asset, net | $ 6,490 | $ 0 |
Current operating lease liabilities | 2,244 | 0 |
Long-term operating lease liabilities | 4,267 | $ 0 |
Total operating lease liability | 6,511 | |
Operating lease costs | 2,434 | |
Short-term lease costs | 767 | |
Sublease Income | (247) | |
Net lease costs | 2,954 | |
Operating cash flows form operating leases | 2,414 | |
Right-of-use assets obtained in exchange for lease obligations | $ 2,064 | |
Weighted average discount rate | 5.77% | |
Weighted average remaining lease term | 3 years 3 months 18 days |
Leases - Topic 842 Schedule of
Leases - Topic 842 Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2020 | $ 2,546 | |
2021 | 2,023 | |
2022 | 1,417 | |
2023 | 835 | |
2024 | 311 | |
Thereafter | 0 | $ 55 |
Total lease payments | 7,132 | |
Less interest | (621) | |
Total operating lease liability | $ 6,511 |
Leases - Topic 840 Schedule of
Leases - Topic 840 Schedule of maturities of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 2,224 |
2020 | 1,858 |
2021 | 1,357 |
2022 | 977 |
2023 | 481 |
After 2023 | 55 |
Total lease commitments | $ 6,952 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Aug. 01, 2017 | Apr. 19, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 |
Loss Contingencies [Line Items] | |||||
Industrial revenue bonds | $ 10,000,000 | ||||
Capital lease obligations | $ 0 | $ 0 | |||
OSHA, loss in period | $ 138,000 | ||||
Payments for legal settlements | $ 75,000 | ||||
Civil penalties sought | $ 250,000 | ||||
Damages awarded | 251,000 | ||||
Clean Air Act Violation | |||||
Loss Contingencies [Line Items] | |||||
Fine payable due to plea agreement | $ 1,000,000 | ||||
EPA Administrative Civil Penalty | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 250,000 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2019shares | Dec. 31, 2019USD ($)planemployeeshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | May 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost recognized | $ | $ 1,603,000 | $ 1,488,000 | $ 1,299,000 | |||
Number of retired union participants still receiving benefits | 166 | |||||
Number of retired union participants eligible for benefits | employee | 23 | |||||
Age of eligibility to receive benefits | 62 years | |||||
Minimum years of service to obtain eligibility for benefits | 5 years | |||||
Non-union retirees still receiving benefits, age of coverage | 65 years | |||||
Common Stock, authorized (in shares) | 40,000,000 | 40,000,000 | ||||
Treasury Stock (in shares) | 1,087,840 | 1,259,551 | ||||
Number of active plans | plan | 2 | |||||
Share-based compensation expense | $ | $ 2,424,000 | $ 2,612,000 | $ 2,245,000 | |||
Grants in period (in shares) | 83,683 | |||||
Stock shares repurchased (in shares) | 77,481 | 27,214 | 74,132 | |||
Stock shares repurchased | $ | $ 5,489,000 | $ 2,324,000 | $ 4,663,000 | |||
EDC plan investments | $ | 1,185,000 | 0 | ||||
EDC plan liabilities | $ | $ 1,337,000 | $ 1,176,000 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
RSUs vested in period (in shares) | 235,409 | 80,343 | 203,000 | |||
Grants in period (in shares) | 45,993 | 42,136 | 47,514 | |||
Number of nonvested shares (in shares) | 116,855 | 329,205 | 368,492 | 527,486 | ||
Options, vested in period, fair value | $ | $ 2,951,000 | $ 1,239,000 | $ 979,000 | |||
Unrecognized compensation costs, other than options | $ | $ 2,745,000 | |||||
Period for recognition of unrecognized compensation cost | 2 years 2 months 12 days | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock authorized but not granted (in shares) | 300,000 | |||||
Short-term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Targeted bonus award expense | $ | $ 461,000 | 5,581,000 | 5,150,000 | |||
Short-term Incentive Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ | $ 123,000 | 821,000 | $ 491,000 | |||
Award vesting period | 48 months | |||||
Short-term Incentive Plan | Restricted Stock Units (RSUs) | Award vesting period, tranche one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 12 months | |||||
Short-term Incentive Plan | Restricted Stock Units (RSUs) | Remaining award vesting period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 36 months | |||||
The 2014 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock authorized but not granted (in shares) | 1,500,000 | |||||
The 2014 Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Grants in period (in shares) | 344,190 | |||||
The Director's Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock authorized but not granted (in shares) | 300,000 | |||||
The 2004 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
RSUs vested in period (in shares) | 145,000 | |||||
Restricted stock authorized but not granted (in shares) | 2,680,000 | |||||
Weighted average remaining contractual term | 10 years | |||||
The 2004 Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant (in shares) | 0 | |||||
Authorized shares remaining for issuance (in shares) | 0 | |||||
The 2004 Plan | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options outstanding (in shares) | 0 | |||||
The 2004 Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of nonvested shares (in shares) | 0 | |||||
Number of shares available for grant (in shares) | 0 | |||||
Post-employment benefits | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Liability, defined benefit plan, current | $ | $ 441,000 | 467,000 | ||||
Liability, defined benefit plan, noncurrent | $ | $ 2,509,000 | $ 2,595,000 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Units | |||
Granted (in shares) | 83,683 | ||
Restricted Stock Units (RSUs) | |||
Units | |||
Non vested balance at beginning of period (in shares) | 329,205 | 368,492 | 527,486 |
Granted (in shares) | 45,993 | 42,136 | 47,514 |
Forfeited (in shares) | (22,934) | (1,080) | (3,508) |
Vested (in shares) | (235,409) | (80,343) | (203,000) |
Non vested balance at end of period (in shares) | 116,855 | 329,205 | 368,492 |
Weighted Average Grant-Date Fair Value | |||
Non vested balance at beginning of period (in dollars per share) | $ 25.42 | $ 17.20 | $ 10.17 |
Granted (in dollars per share) | 77.78 | 78.37 | 42.93 |
Forfeited (in dollars per share) | 57.27 | 28.30 | 25.74 |
Vested (in dollars per share) | 12.54 | 15.42 | 4.82 |
Non vested balance at end of period (in dollars per share) | $ 65.73 | $ 25.42 | $ 17.20 |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplier Concentration Risk | 2 Grain Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 31.00% | 29.00% | 29.00% |
Supplier Concentration Risk | 10 Largest Suppliers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 66.00% | 68.00% | 65.00% |
Supplier Concentration Risk | Pacific Ethanol | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Revenue | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 39.00% | 40.00% | 39.00% |
Operating Segments - Narrative
Operating Segments - Narrative (Details) - segment | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | 2 |
Operating Segments - Operating
Operating Segments - Operating Profit (Loss) Per Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales to customers: | |||||||||||
Sales | $ 92,463 | $ 90,685 | $ 90,501 | $ 89,096 | $ 104,850 | $ 95,031 | $ 88,252 | $ 87,956 | $ 362,745 | $ 376,089 | $ 347,448 |
Gross profit: | |||||||||||
Gross profit | 21,560 | 18,790 | 19,522 | 16,660 | 25,608 | 19,599 | 19,441 | 18,951 | 76,532 | 83,599 | 76,016 |
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 11,572 | 11,362 | 11,308 | ||||||||
Income (loss) before income taxes: | |||||||||||
Income (loss) before income taxes | $ 15,883 | $ 11,240 | $ 10,553 | $ 8,261 | $ 16,274 | $ 11,681 | $ 10,843 | $ 10,182 | 45,937 | 48,980 | 52,758 |
Foreign sources | |||||||||||
Sales to customers: | |||||||||||
Sales | 19,372 | 19,782 | 22,870 | ||||||||
Distillery Products | |||||||||||
Sales to customers: | |||||||||||
Sales | 297,233 | 314,055 | 291,008 | ||||||||
Gross profit: | |||||||||||
Gross profit | 65,952 | 71,793 | 66,817 | ||||||||
Ingredient Solutions | |||||||||||
Sales to customers: | |||||||||||
Sales | 65,512 | 62,034 | 56,440 | ||||||||
Gross profit: | |||||||||||
Gross profit | 10,580 | 11,806 | 9,199 | ||||||||
Operating Segments | Distillery Products | |||||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 8,974 | 8,739 | 8,490 | ||||||||
Income (loss) before income taxes: | |||||||||||
Income (loss) before income taxes | 59,309 | 64,791 | 60,424 | ||||||||
Operating Segments | Ingredient Solutions | |||||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 1,554 | 1,567 | 1,660 | ||||||||
Income (loss) before income taxes: | |||||||||||
Income (loss) before income taxes | 8,051 | 9,336 | 6,613 | ||||||||
Corporate | |||||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 1,044 | 1,056 | 1,158 | ||||||||
Income (loss) before income taxes: | |||||||||||
Income (loss) before income taxes | $ (21,423) | $ (25,147) | $ (14,279) |
Operating Segments - Identifiab
Operating Segments - Identifiable Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Identifiable Assets | ||
Identifiable Assets | $ 322,597 | $ 277,892 |
Operating Segments | Distillery Products | ||
Identifiable Assets | ||
Identifiable Assets | 271,766 | 223,890 |
Operating Segments | Ingredient Solutions | ||
Identifiable Assets | ||
Identifiable Assets | 30,802 | 35,147 |
Corporate | ||
Identifiable Assets | ||
Identifiable Assets | $ 20,029 | $ 18,855 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-cash investing and financing activities: | |||
Purchase of property, plant, and equipment in accounts payable | $ 4,430 | $ 2,389 | $ 4,522 |
Additional cash payment information: | |||
Interest paid | 1,611 | 1,578 | 1,489 |
Income taxes paid | $ 7,111 | $ 8,818 | $ 13,526 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 92,463 | $ 90,685 | $ 90,501 | $ 89,096 | $ 104,850 | $ 95,031 | $ 88,252 | $ 87,956 | $ 362,745 | $ 376,089 | $ 347,448 |
Cost of sales | 70,903 | 71,895 | 70,979 | 72,436 | 79,242 | 75,432 | 68,811 | 69,005 | 286,213 | 292,490 | 271,432 |
Gross profit | 21,560 | 18,790 | 19,522 | 16,660 | 25,608 | 19,599 | 19,441 | 18,951 | 76,532 | 83,599 | 76,016 |
SG&A expenses | 5,309 | 7,186 | 8,648 | 8,147 | 8,996 | 7,584 | 8,309 | 8,562 | 29,290 | 33,451 | 33,107 |
Operating income | 16,251 | 11,604 | 10,874 | 8,513 | 16,612 | 12,015 | 11,132 | 10,389 | 47,242 | 50,148 | 42,909 |
Interest expense, net | (368) | (364) | (321) | (252) | (338) | (334) | (289) | (207) | (1,305) | (1,168) | (1,184) |
Income before income taxes | 15,883 | 11,240 | 10,553 | 8,261 | 16,274 | 11,681 | 10,843 | 10,182 | 45,937 | 48,980 | 52,758 |
Income tax expense (benefit) | 2,936 | 3,025 | 2,642 | (1,459) | 4,452 | 2,673 | 3,316 | 1,255 | 7,144 | 11,696 | 10,935 |
Net income | $ 12,947 | $ 8,215 | $ 7,911 | $ 9,720 | $ 11,822 | $ 9,008 | $ 7,527 | $ 8,927 | $ 38,793 | $ 37,284 | $ 41,823 |
Basic and diluted EPS data (in dollars per share) | $ 0.76 | $ 0.48 | $ 0.46 | $ 0.57 | $ 0.69 | $ 0.52 | $ 0.44 | $ 0.52 | $ 2.27 | $ 2.17 | $ 2.44 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 24, 2020 | Sep. 11, 2017 | Sep. 08, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 14, 2020 |
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared (in dollars per share) | $ 0.04 | $ 0.85 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.40 | $ 0.32 | $ 1.01 | ||
Subsequent Event | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared (in dollars per share) | $ 0.12 | |||||||||||||||||
Subsequent Event | Credit Agreement | Revolver | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | $ 300,000 | |||||||||||||||||
Accordion feature, increase limit | $ 100,000 |
Uncategorized Items - mgpi-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (69,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 69,000 |