Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MGP INGREDIENTS INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 17,642,050 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000835011 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Sales | $83,966 | $80,709 | $254,451 | $253,134 | ||||
Less: excise taxes | 6,451 | 538 | 17,373 | 7,164 | ||||
Net sales | 77,515 | 80,171 | 237,078 | 245,970 | ||||
Cost of sales | 70,204 | [1] | 79,356 | [1] | 214,658 | [1] | 232,645 | [1] |
Gross profit | 7,311 | 815 | 22,420 | 13,325 | ||||
Selling, general and administrative expenses | 4,966 | 6,760 | 15,204 | 17,405 | ||||
Insurance recoveries (Note 6) | -1,293 | 0 | -1,223 | 0 | ||||
Other operating costs and losses on sale of assets | 1 | 1 | 1 | 59 | ||||
Income (loss) from operations | 3,637 | -5,946 | 8,438 | -4,139 | ||||
Interest expense, net | -199 | -269 | -615 | -829 | ||||
Equity method investment earnings (loss) | 1,621 | -91 | 7,287 | -962 | ||||
Income (loss) from continuing operations before income taxes | 5,059 | -6,306 | 15,110 | -5,930 | ||||
Provision (benefit) for income taxes | -1,169 | 19 | -1,002 | 44 | ||||
Net income (loss) from continuing operations | 6,228 | -6,325 | 16,112 | -5,974 | ||||
Discontinued operations, net of tax (Note 8) | 0 | 0 | 0 | 1,406 | ||||
Net income (loss) | 6,228 | -6,325 | 16,112 | -4,568 | ||||
Other comprehensive income (loss), net of tax | -123 | -111 | 202 | -401 | ||||
Comprehensive income (loss) | $6,105 | ($6,436) | $16,314 | ($4,969) | ||||
Basic and diluted earnings (loss) per share | ' | ' | ' | ' | ||||
Income from continuing operations (in usd per share) | $0.34 | ($0.37) | $0.89 | ($0.35) | ||||
Income from discontinued operations (in usd per share) | $0 | $0 | $0 | $0.08 | ||||
Net income (in usd per share) | $0.34 | ($0.37) | $0.89 | ($0.27) | ||||
Dividends and dividend equivalents per common share (in usd per share) | $0 | $0 | $0.05 | $0.05 | ||||
[1] | Includes related party purchases of $10,079 and $702 for the quarters ended September 30, 2014 and 2013, respectively. Includes related party purchases of $26,220 and $5,494 for the year to date periods ended September 30, 2014 and 2013, respectively. See Note 2. Equity Method Investments. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Cost of sales, related party transactions | $10,079 | $702 | $26,220 | $5,494 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $0 | $2,857 |
Receivables (less allowance for doubtful accounts: September 30, 2014 - $7; December 31, 2013 - $18) | 31,550 | 27,821 |
Inventory | 31,465 | 34,917 |
Prepaid expenses | 1,435 | 848 |
Deferred income taxes | 2,532 | 4,977 |
Refundable income taxes | 225 | 466 |
Total current assets | 67,207 | 71,886 |
Property and equipment | 198,549 | 194,687 |
Less accumulated depreciation and amortization | -133,337 | -124,443 |
Property and equipment, net | 65,212 | 70,244 |
Equity method investments | 14,364 | 7,123 |
Other assets | 2,326 | 2,076 |
Total assets | 149,109 | 151,329 |
Current Liabilities | ' | ' |
Current maturities of long-term debt | 2,598 | 1,557 |
Accounts payable | 14,101 | 23,107 |
Accounts payable to affiliate, net | 3,424 | 1,204 |
Accrued expenses | 7,987 | 8,282 |
Total current liabilities | 28,110 | 34,150 |
Long-term debt, less current maturities | 8,329 | 3,611 |
Revolving credit facility | 5,736 | 18,000 |
Deferred credit | 4,259 | 3,925 |
Accrued retirement health and life insurance benefits | 3,654 | 4,423 |
Other noncurrent liabilities | 706 | 640 |
Deferred income taxes | 1,318 | 4,977 |
Total liabilities | 52,112 | 69,726 |
Commitments and Contingencies (Note 4) | ' | ' |
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 September 30, 2014 and December 31, 2013, 17,635,730 and 17,750,421 shares outstanding at September 30, 2014 and December 31, 2013, respectively | 6,715 | 6,715 |
Additional paid-in capital | 9,196 | 8,728 |
Retained earnings | 81,891 | 66,686 |
Accumulated other comprehensive gain (loss), net of tax | 198 | -4 |
Treasury stock, at cost | ' | ' |
Shares of 480,235 and 365,544 at September 30, 2014 and December 31, 2013, respectively | -1,007 | -526 |
Total stockholders’ equity | 96,997 | 81,603 |
Total liabilities and stockholders’ equity | $149,109 | $151,329 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Receivables allowance for doubtful accounts | $7 | $18 |
Preferred stock, par value (in Dollars per share) | $10 | $10 |
Preferred stock, shares authorized (shares) | 1,000 | 1,000 |
Preferred stock, shares issued (shares) | 437 | 437 |
Preferred stock, shares outstanding (shares) | 437 | 437 |
Preferred stock, percentage non-cumulative (percent) | 5.00% | 5.00% |
Common stock, par value (in Dollars per share) | $0 | $0 |
Common stock, shares authorized (shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (shares) | 18,115,965 | 18,115,965 |
Common stock, shares outstanding (shares) | 17,635,730 | 17,750,421 |
Treasury stock (shares) | 480,235 | 365,544 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) | $16,112 | ($4,568) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ' | ' |
Depreciation and amortization | 9,202 | 8,955 |
Gain on sale of bioplastics manufacturing business | 0 | -1,453 |
Gains on property insurance recoveries | -1,223 | 0 |
Release of valuation allowance | -1,215 | 0 |
Share based compensation | 588 | 970 |
Equity method investment (earnings) loss | -7,287 | 962 |
Changes in Operating Assets and Liabilities: | ' | ' |
Restricted cash | 0 | 12 |
Receivables, net | -3,729 | 3,529 |
Inventory | 3,452 | -342 |
Prepaid expenses | -587 | -541 |
Refundable income taxes | 241 | 16 |
Accounts payable | -8,188 | -509 |
Accounts payable to affiliate, net | 2,220 | -3,491 |
Accrued expenses | -295 | 1,478 |
Deferred credit | 334 | -340 |
Accrued retirement health and life insurance benefits and other noncurrent liabilities | -456 | -680 |
Other | -414 | 6 |
Net cash provided by operating activities | 8,755 | 4,004 |
Cash Flows from Investing Activities | ' | ' |
Additions to property and equipment | -4,920 | -3,571 |
Proceeds from sale of bioplastics manufacturing business | 0 | 2,797 |
Proceeds from property insurance recoveries | 1,383 | 0 |
Other | 4 | 0 |
Net cash used in investing activities | -3,533 | -774 |
Cash Flows from Financing Activities | ' | ' |
Purchase of treasury stock | -601 | 0 |
Payment of dividends | -907 | -916 |
Principal payments on long-term debt | -1,162 | -1,288 |
Proceeds from revolving credit facility | 49,590 | 83,031 |
Payments on revolving credit facility | -54,933 | -84,057 |
Loan fees incurred with borrowings | -66 | 0 |
Net cash used in financing activities | -8,079 | -3,230 |
Decrease in cash and cash equivalents | -2,857 | 0 |
Cash and cash equivalents, beginning of year | 2,857 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement Of Changes In Stockholders' Equity (Unaudited) (USD $) | Total | Capital Stock Preferred | Issued Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |
In Thousands, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2013 | $81,603 | $4 | $6,715 | $8,728 | $66,686 | ($4) | ($526) | |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | |
Net income | 16,112 | 0 | 0 | 0 | 16,112 | 0 | 0 | |
Change in pension plans, net of tax | [1] | -63 | 0 | 0 | 0 | 0 | -63 | 0 |
Change in post employment benefits, net of tax | [1] | 310 | 0 | 0 | 0 | 0 | 310 | 0 |
Change in translation adjustment on non-consolidated foreign subsidiary, net of tax | -45 | 0 | 0 | 0 | 0 | -45 | 0 | |
Dividends and dividend equivalents declared and paid, net | -907 | 0 | 0 | 0 | -907 | 0 | 0 | |
Share-based compensation | 588 | 0 | 0 | 468 | 0 | ' | 120 | |
Common shares reacquired due to taxes derived from vesting of restricted stock and restricted stock units | -601 | 0 | 0 | 0 | 0 | 0 | -601 | |
Ending Balance at Sep. 30, 2014 | $96,997 | $4 | $6,715 | $9,196 | $81,891 | $198 | ($1,007) | |
[1] | See Note 9. Employee Benefit Plans for amounts reclassified from Accumulated Other Comprehensive Income (Loss). |
Accounting_Policies_and_Basis_
Accounting Policies and Basis of Presentation | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Accounting Policies and Basis of Presentation | ' | ||||||||
Accounting Policies and Basis of Presentation. | |||||||||
MGP Ingredients, Inc. (“Company”) is a Kansas corporation headquartered in Atchison, Kansas. It was incorporated in 2011 and is a holding company with no operations of its own. Its principal directly-owned operating subsidiaries are MGPI Processing, Inc. (“Processing”) and MGPI of Indiana, LLC (“MGPI-I”). Processing was incorporated in Kansas in 1957 and is the successor to a business founded in 1941 by Cloud L. Cray, Sr. On January 3, 2012, MGP Ingredients, Inc. reorganized into a holding company structure (the “Reorganization”) through a series of steps involving various legal entities. Prior to the Reorganization, Processing was named MGP Ingredients, Inc. | |||||||||
Basis of Presentation and Principles of Consolidation | |||||||||
The accompanying unaudited condensed consolidated financial statements of the Company reflect all adjustments (consisting only of normal adjustments) which, in the opinion of the Company’s management, are necessary to fairly present the financial position, results of operations and cash flows of the Company. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||
These unaudited condensed consolidated financial statements as of and for the year to date period ended September 30, 2014 should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. | |||||||||
Use of Estimates | |||||||||
The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Inventory | |||||||||
Inventory includes finished goods, barreled distillate, raw materials in the form of agricultural commodities used in the production process, work in process, and certain maintenance and repair items. Whiskey and bourbon must be aged in barrels for several years, following industry practice; all barreled whiskey and bourbon 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 market on the first-in, first-out (“FIFO”) method. Inventory valuations are impacted by constantly changing prices paid for key materials, primarily corn. Inventory consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 9,707 | $ | 11,355 | |||||
Barreled distillate | 9,834 | 10,310 | |||||||
Work in process | 2,672 | 2,737 | |||||||
Raw materials | 3,593 | 5,183 | |||||||
Maintenance materials | 5,012 | 4,766 | |||||||
Other | 647 | 566 | |||||||
Total | $ | 31,465 | $ | 34,917 | |||||
Equity Method Investments | |||||||||
The Company accounts for its investment in non-consolidated subsidiaries under the equity method of accounting when the Company has significant influence, but does not have more than 50% voting control, and is not considered the primary beneficiary. Under the equity method of accounting, the Company reflects its investment in non-consolidated subsidiaries within the Company’s Condensed Consolidated Balance Sheets as Equity method investments; the Company’s share of the earnings or losses of the non-consolidated subsidiaries are reflected as Equity method investment earnings (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss). | |||||||||
The Company reviews its investments in non-consolidated subsidiaries for impairment whenever events or changes in business circumstances indicate that the carrying amount of the investments may not be fully recoverable. Evidence of a loss in value that is other than temporary include, but are not limited to, the absence of an ability to recover the carrying amount of the investment, the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment, or, where applicable, estimated sales proceeds which are insufficient to recover the carrying amount of the investment. If the fair value of the investment is determined to be less than the carrying value and the decline in value is considered to be other than temporary, an appropriate write-down is recorded based on the excess of the carrying value over the best estimate of fair value of the investment. | |||||||||
Revenue Recognition | |||||||||
Except as discussed below, revenue from the sale of the Company’s products is recognized as products are delivered to customers according to shipping terms and when title and risk of loss have transferred. Income from various government incentive programs is recognized as it is earned. | |||||||||
The Company’s distillery segment produces unaged distillate and this product is frequently barreled and warehoused at a Company location for an extended period of time in accordance with directions received from the Company’s customers. This product must meet customer acceptance specifications, the risks of ownership and title for these goods must be passed to the Company’s customers, and requirements for bill and hold revenue recognition must be met prior to the Company recognizing revenue for this product. Separate warehousing agreements are maintained for customers who store their product with the Company and warehouse revenues are recognized as the service is provided. | |||||||||
Sales include customer-paid freight costs billed to customers of $3,237 and $3,153 for the quarters ended September 30, 2014 and 2013, respectively, and $10,400 and $8,789 for the year to date periods ended September 30, 2014 and 2013, respectively. | |||||||||
Recognition of Insurance Recoveries | |||||||||
Estimated loss contingencies are recognized as charges to income when they are probable and reasonably estimable. Insurance recoveries are not recognized until all contingencies related to the insurance claim have been resolved and settlement has been reached with the insurer. Insurance recoveries, to the extent of costs and losses, are reported as a reduction to Cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss). Insurance recoveries, in excess of costs and losses, if any, are included in Insurance recoveries on the Condensed Consolidated Statements of Comprehensive Income (Loss). | |||||||||
During January 2014, the Company experienced a fire at its Indiana plant. The fire damaged certain equipment in the feed dryer house and caused a temporary loss of production in late January. Prior to the insurance recovery related to the property claim, the write-off of damaged assets was included in Other operating costs and losses on sale of assets on the Condensed Consolidated Statements of Comprehensive Income (Loss). | |||||||||
Income Taxes | |||||||||
Deferred income tax assets and liabilities resulting from the effects of transactions reported in different periods for financial reporting and income tax are recorded using the liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws upon enactment as well as applied income tax rates when facts and circumstances warrant such changes. A valuation allowance is established to reduce deferred income tax assets when it is more likely than not that a deferred income tax asset may not be realized. When measuring the need for a valuation allowance, the Company assesses both positive and negative evidence regarding whether these deferred tax assets are realizable. In determining deferred tax assets and valuation allowances, the Company is required to make judgments and estimates related to projections of profitability, character of income, timing and extent of the utilization of temporary differences, net operating loss carryforwards and tax credits, and tax planning strategies. The valuation allowance is reviewed quarterly and is maintained until sufficient positive evidence exists to support a reversal. A valuation allowance is released when it is determined that it is more likely than not that deferred tax assets will be realized. | |||||||||
Earnings (Loss) per Share | |||||||||
Basic and diluted earnings (loss) per share are 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 and dividend equivalents declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during the period. | |||||||||
Impairment | |||||||||
The Company tests its long-lived assets and instruments for impairment whenever events or conditions and circumstances indicate a carrying amount of an asset may not be recoverable. No events or conditions occurred during the quarter or year to date periods ended September 30, 2014 that required the Company to test its long-lived assets for impairment. | |||||||||
Fair Value Measurements | |||||||||
The fair value of an asset is considered to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of inputs used to measure fair value are as follows: | |||||||||
• | Level 1 - quoted prices in active markets for identical assets or liabilities accessible by the reporting entity. | ||||||||
• | Level 2 - observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||
• | Level 3 - unobservable inputs for an asset or liability. Unobservable inputs should only be used to the extent observable inputs are not available. | ||||||||
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 values of the Company’s debt were $16,708 and $23,300 at September 30, 2014 and December 31, 2013, respectively. The financial statement carrying value was $16,663 and $23,168 at September 30, 2014 and December 31, 2013, respectively. These fair values are considered Level 2 under the fair value hierarchy. | |||||||||
Dividends and Dividend Equivalents | |||||||||
On February 28, 2014, the Board of Directors declared a dividend payable to stockholders of record as of March 17, 2014, of the Company's common stock, no par value ("Common Stock") and a dividend equivalent payable to holders of restricted stock units ("RSUs") as of March 17, 2014, of $.05 per share and per unit. The total payment of $907, comprised of dividend payments of $884 and dividend equivalent payments of $23, was paid on April 9, 2014. | |||||||||
On February 28, 2013, the Board of Directors declared a dividend payable to stockholders of record as of March 18, 2013, of Common Stock and a dividend equivalent payable to holders of RSUs as of March 18, 2013, of $0.05 per share and per unit. The total payment of $916, comprised of dividend payments of $897 and dividend equivalent payments of $19, was paid on April 10, 2013. | |||||||||
Credit Agreement | |||||||||
On November 2, 2012, the Company entered into an Amended and Restated Credit Agreement, and ancillary documents with Wells Fargo (the “Credit Agreement”). On February 12, 2014, the Company entered into Amendment No. 1 to the Credit Agreement (the "First Amendment"). The First Amendment amended and restated the definition of the term EBITDA to add back (to the Company's consolidated net earnings or loss) governance expenses relating to certain shareholder litigation involving the Company in 2013 and incurred prior to December 31, 2013, in an aggregate amount not in excess of $5,500. The Company incurred $5,465 of such expenses as of or prior to December 31, 2013. | |||||||||
On August 5, 2014, the Company entered into Amendment No. 2 to the Credit Agreement (the “Second Amendment”) by and among Wells Fargo Bank, N.A. as administrative agent and sole lender and MGP Ingredients, Inc., MGPI Processing, Inc., MGPI Pipeline, Inc. and MGPI of Indiana, LLC. The Second Amendment amended and restated the definition of the term “Fixed Asset Sub-Line” and added Thunderbird Real Estate Holdings, LLC (“Thunderbird”), a wholly-owned subsidiary of MGPI Processing, Inc. which is a wholly-owned subsidiary of MGP Ingredients, Inc., to the Credit Agreement as a Loan Party, as defined in the Credit Agreement. In connection with execution of the Second Amendment, all the equity of Thunderbird was pledged and a lien was placed on all the assets of Thunderbird to secure the obligations of the Loan Parties (as defined in the Credit Agreement) under the Credit Agreement. With the execution of the Fixed Asset Sub-Line term loan, $7,004 of debt obligations under the Credit Agreement became debt obligations under the sub-line term loan (maturing with the Credit Agreement), resulting in a non-cash transaction. The loan fees incurred by the Company related to the Second Amendment for the quarter and year to date periods ended September 30, 2014 were $66 and are being amortized over the life of the Credit Agreement. The amortized portion of the loan fees incurred is included in Interest expense, net on the Condensed Consolidated Statements of Comprehensive Income (Loss). | |||||||||
As of and for the quarter and year to date periods ended September 30, 2014, the Company was in compliance with the Credit Agreement’s financial covenants and other restrictions. | |||||||||
The amount of borrowings which the Company may make is subject to borrowing base limitations adjusted for the Fixed Asset Sub-Line collateral. As of September 30, 2014, the Company's total outstanding borrowings under the credit facility were $12,656, comprised of $5,736 of revolver borrowing and $6,920 of fixed asset sub-line term loan borrowing, leaving $36,929 available for additional borrowings. The average interest rate for total borrowings of the Credit Agreement at September 30, 2014 was 2.57 percent. | |||||||||
New Accounting Pronouncements | |||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. When a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available, or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The Company adopted this standard effective January 1, 2014. The adoption of these amendments did not have a material impact on our consolidated results of operations, financial condition or cash flows. | |||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Equity_Method_Investments
Equity Method Investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Equity Method Investments | ' | ||||||||||||||||
Equity Method Investments. | |||||||||||||||||
As of September 30, 2014, the Company’s investments accounted for on the equity method of accounting consisted of the following: (1) 30 percent interest in ICP, which manufactures alcohol for fuel, industrial and beverage applications, and (2) 50 percent interest in D.M. Ingredients, GmbH, (“DMI”), which produces certain specialty starch and protein ingredients. | |||||||||||||||||
Under a marketing agreement between ICP and the Company, (the “Marketing Agreement”), ICP manufactured and supplied food grade and industrial-use alcohol products for the Company, and the Company purchased, marketed and sold such products for a marketing fee. Effective January 1, 2013, the Marketing Agreement expired, although the Company continues to source product from ICP. | |||||||||||||||||
ICP’s revolving credit agreement with an affiliate of SEACOR has been amended and restated extending the maturity to January 1, 2016. The Company has no further funding requirement to ICP. | |||||||||||||||||
ICP's Limited Liability Company Agreement generally allocates profits, losses and distributions of cash of ICP based on the percentage of a member's capital contributions to ICP relative to total capital contributions of all members ("Percentage Interest") to ICP, of which the Company has 30 percent and its joint venture partner, ICP Holdings, has 70 percent. That agreement grants the right to either member to elect (the "Electing Member") to shut down the Pekin plant ("Shut Down Election") if ICP operates at an EBITDA loss greater than or equal to $500 in any quarter, subject to the right of the other member (the "Objecting Member") to override that election. If the Objecting Member overrides the election, then EBITDA loss and EBITDA profit for each subsequent quarter are allocated 80 percent to the Objecting Member and 20 percent to the Electing Member until the end of the applicable quarter in which the Electing Member withdraws its Shut Down Election and thereafter allocations revert to a 70-30 split (subject to a catch-up allocation of 80 percent of EBITDA profits to the Objecting Member until it equals the amount of EBITDA loss allocated to such member on an 80-20 basis). ICP experienced an EBITDA loss in excess of $500 for the quarter ended March 31, 2013, which was one factor that prompted the Company to deliver notice of its Shut Down Election on April 18, 2013. However, the Company withdrew its Shut Down Election on March 31, 2014 (thereby causing the allocation of profits and losses to revert to 30 percent to the Company and 70 percent to ICP Holdings as of April 1, 2014) based partially on the strong financial results ICP generated during the period ended March 31, 2014. | |||||||||||||||||
During the quarter ended June 30, 2014, ICP's financial results and liquidity were significantly improved and the Company learned that ICP may consider making a cash distribution from earnings, or payment, to its members in the foreseeable future, and that ICP Holdings advocated such a distribution of cash. Based on these changes in facts and circumstances, management reassessed the most likely events that would result in a recovery of its investment in ICP and determined that such a recovery would likely occur through cash distributions from ICP rather than through a sale or liquidation of ICP. As a result of this reassessment, during the quarter ended June 30, 2014, the Company remeasured its cumulative equity in the undistributed earnings of ICP using the allocation that applies to a cash distribution to members (as further disclosed in the Company's report on Form 10-Q for the quarter ended June 30, 2014). The cumulative effect of this change in estimate resulted in a decrease in equity method investment earnings of ICP of $1,882 for the year to date period ended September 30, 2014; a decrease in the earnings per share of $0.10 per share for the year to date period ended September 30, 2014; and a decrease in the related equity method investment in ICP at September 30, 2014, of $1,882. | |||||||||||||||||
On July 23, 2014 ICP's alcohol production was interrupted resulting in inconsequential damage to equipment. Production was restarted on a limited basis on August 1, 2014, and ICP was back to normal production rates on or about August 14, 2014. ICP anticipates finalizing the business interruption and property insurance claims before the end of 2014. Insurance recoveries will be recognized when all contingencies to the insurance claims have been resolved and settlement has been reached with the insurer. | |||||||||||||||||
Summary Financial Information (unaudited) | |||||||||||||||||
Condensed financial information related to the Company’s non-consolidated equity method investment in ICP is shown below. | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
ICP’s Operating results: | |||||||||||||||||
Net sales (a) | $ | 53,813 | $ | 52,580 | $ | 185,460 | $ | 146,807 | |||||||||
Cost of sales and expenses (b) | 48,467 | 53,165 | 155,214 | 150,279 | |||||||||||||
Net income (loss) | $ | 5,346 | $ | (585 | ) | $ | 30,246 | $ | (3,472 | ) | |||||||
(a) | Includes related party sales to MGPI of $9,287 and $110 for the quarters ended September 30, 2014 and 2013, respectively, and $23,905 and $3,510 for the year to date periods ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
(b) | Includes depreciation and amortization of $738 and $1,171 for the quarters ended September 30, 2014 and 2013, respectively, and $2,100 and $3,511 for the year to date periods ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
The Company’s equity method investment earnings (loss) of joint ventures based on unaudited financial statements is as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
ICP (a) | $ | 1,604 | $ | (135 | ) | $ | 7,192 | $ | (1,042 | ) | |||||||
DMI (50% interest) | 17 | 44 | 95 | 80 | |||||||||||||
$ | 1,621 | $ | (91 | ) | $ | 7,287 | $ | (962 | ) | ||||||||
(a) | The cumulative effect of the change in estimate for the year to date period ended September 30, 2014 was a decrease in equity method investment earnings of $1,882, which reduced the joint venture investment earnings for the same period to 23.8 percent. The joint venture investment earnings for the quarter ended September 30, 2014 was 30 percent, as well as for the quarter and year to date periods ended September 30, 2013. | ||||||||||||||||
The Company’s investment in joint ventures is as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
ICP (26.4% interest) (a) | $ | 13,845 | $ | 6,653 | |||||||||||||
DMI (50% interest) | 519 | 470 | |||||||||||||||
$ | 14,364 | $ | 7,123 | ||||||||||||||
(a) | The cumulative effect of the change in estimate was a decrease in equity interest in ICP of $1,882, which effectively reduced the Company's investment in ICP from 30 percent to 26.4 percent at September 30, 2014. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings per Share | ' | ||||||||||||||||
Earnings (Loss) per Share. | |||||||||||||||||
The computations of basic and diluted earnings (loss) per share from continuing and discontinued operations are as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Continuing Operations: | |||||||||||||||||
Net income (loss) from continuing operations attributable to shareholders | $ | 6,228 | $ | (6,325 | ) | 16,112 | $ | (5,974 | ) | ||||||||
Less: Amounts allocated to participating securities (nonvested shares and units)(i) | 268 | — | 692 | — | |||||||||||||
Net income (loss) from continuing operations attributable to common shareholders | $ | 5,960 | $ | (6,325 | ) | $ | 15,420 | $ | (5,974 | ) | |||||||
Discontinued Operations: | |||||||||||||||||
Discontinued operations attributable to shareholders | $ | — | $ | — | $ | — | $ | 1,406 | |||||||||
Less: Amounts allocated to participating securities (nonvested shares and units)(i) | — | — | — | — | |||||||||||||
Discontinued operations attributable to common shareholders | $ | — | $ | — | $ | — | $ | 1,406 | |||||||||
Share information: | |||||||||||||||||
Basic weighted average common shares(ii) | 17,334,330 | 17,127,523 | 17,286,258 | 17,045,001 | |||||||||||||
Potential dilutive securities(iii) | 229 | — | — | — | |||||||||||||
Diluted weighted average common shares | 17,334,559 | 17,127,523 | 17,286,258 | 17,045,001 | |||||||||||||
Basic earnings (loss) per share | |||||||||||||||||
Income (loss) from continuing operations | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.35 | ) | |||||||
Income from discontinued operations | — | — | — | 0.08 | |||||||||||||
Net income (loss) (iv) | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.27 | ) | |||||||
Diluted earnings (loss) per share | |||||||||||||||||
Income (loss) from continuing operations | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.35 | ) | |||||||
Income from discontinued operations | — | — | — | 0.08 | |||||||||||||
Net income (loss) (iv) | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.27 | ) | |||||||
(i) | Participating securities include 301,598 and 699,612 nonvested restricted shares for the quarters ended September 30, 2014 and 2013, respectively, as well as 476,149 and 413,764 restricted share units for the quarters ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
(ii) | Under the two-class method, basic weighted average common shares exclude outstanding nonvested, participating securities consisting of restricted share awards of 301,598 and 699,612 for the quarters ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
(iii) | Anti-dilutive shares related to stock options totaled 6,000 and 18,000 for the quarters ended September 30, 2014 and 2013, respectively, and 8,667 and 18,667 for the year to date periods ended September 30, 2014 and 2013, respectively. There were dilutive shares related to stock options totaling 4,000 and 0 for the quarters ended September 30, 2014 and 2013, respectively, and 1,333 and 1,333 for the year to date periods ended September 30, 2014 and 2013, respectively. The dilutive shares resulted in potential dilutive securities of 229 and 0 for the quarter and year to date periods ended September 30, 2014 and potential dilutive securities of 0 and 0 for the quarter and year to date periods ended September 30, 2013, respectively. | ||||||||||||||||
(iv) | See Note 2. Equity Method Investments for further discussion of earnings (loss) per share for the year to date period ended September 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies. | |
Commitments | |
The Company has grain supply agreements to purchase its corn requirements through a single supplier for its Indiana and Atchison facilities. These grain supply agreements expire December 31, 2014. At September 30, 2014, the Company had commitments to purchase corn to be used in operations through December 2015 totaling $27,506. | |
The Company has commitments to purchase natural gas at fixed prices and various dates through June 2015. The commitment for these contracts at September 30, 2014 totaled $9,422. | |
The Company entered into a supply contract for flour for use in the production of protein and starch ingredients. The initial term of the agreement, as amended, expires October 23, 2015. At September 30, 2014, the Company had purchase commitments aggregating $5,305 through December 2014. | |
As of September 30, 2014, the Company had commitments of approximately $1,273 to acquire capital assets. | |
Contingencies | |
During fiscal 2013, the Company entered into a Settlement Agreement and Mutual Release (the "Settlement Agreement") with Cloud L. Cray, Jr., Karen Seaberg and Thomas M. Cray (collectively, the "Cray Group"), Timothy W. Newkirk, the Company's former President and CEO, and all other members of the Board of Directors then serving. In connection with the Settlement Agreement, the Company agreed to reimburse the members of the Cray Group for all reasonable legal fees and out-of-pocket costs and expenses incurred in connection with the matters related to the proxy contest, up to an aggregate maximum cap of $1,775. The Cray Group submitted reimbursement requests for $1,764, which the Company fully accrued at December 31, 2013. Such costs were included in the caption Accounts payable on the Consolidated Balance Sheets. The Company paid $1,764 to the Cray Group on March 25, 2014, during the year to date period ended September 30, 2014, leaving no remaining payable. | |
There are various legal proceedings involving the Company and its subsidiaries. Management believes that the aggregate liabilities, if any, arising from such actions would not have a material adverse effect on the consolidated financial position or overall trends in results of operations of the Company. |
Income_Taxes_Notes
Income Taxes (Notes) | 9 Months Ended | |
Sep. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
Income Taxes | ||
In the quarter ended September 30, 2014, the Company evaluated the potential realization of its deferred income tax assets. The Company had a net deferred tax asset of $11,275 as of December 31, 2013 that had been reduced by a full valuation allowance. Evaluating the need for, and amount of, a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence on a jurisdiction-by-jurisdiction basis. Such judgments require the Company to interpret existing tax law and other published guidance as applied to our circumstances. As part of this assessment, the Company considers both positive and negative evidence. The weight given to the potential effect of positive and negative evidence must be commensurate with the extent to which the strength of the evidence can be objectively verified. The Company generally considers the following, among other, objectively verified evidence to determine the likelihood of realization of the deferred tax assets: | ||
• | Our current financial position and our historical results of operations for recent years. The Company generally considers cumulative pre-tax losses in the three-year period ending with the current quarter to be significant negative evidence regarding our future profitability. A pattern of objectively-measured recent financial reporting losses is heavily weighted as a source of negative evidence when relying upon projections of future taxable income to recover deferred tax assets. The Company also considers the historical and current financial trends in the recent years. | |
• | Sources of taxable income of the appropriate character. Future realization of deferred tax assets is dependent on projected taxable income of the appropriate character from our continuing operations. Future reversals of existing temporary differences are heavily-weighted sources of objectively verifiable positive evidence. Projections of future taxable income exclusive of reversing temporary differences are a source of positive evidence only when the projections are combined with a history of recent profits and current financial trends and can be reasonably estimated. | |
• | Carryback and carryforward periods available. The long carryback and carryforward periods permitted under the tax law are objectively verified positive evidence. | |
• | Tax planning strategies. Tax planning strategies can be, depending on their nature, heavily-weighted sources of objectively verifiable positive evidence when the strategies are available and can be reasonably executed. The Company considers tax planning strategies only if they are feasible and justifiable considering its current operations and its strategic plan. Tax planning strategies, if executed, may accelerate the recovery of a deferred tax asset so the tax benefit of the deferred tax asset can be carried back. | |
After evaluating positive and negative evidence available as of September 30, 2014, the Company determined that it is more likely than not that it will realize a portion of its net deferred tax assets. The Company’s analysis was significantly influenced by the fact that it reached three years of cumulative positive earnings in the quarter ended September 30, 2014 and projections of future taxable income supported an assessment that recorded deferred tax assets are more likely than not to be recoverable. The Company has a net deferred tax asset after valuation allowance of approximately $1,214 on its balance sheet as of September 30, 2014. The Company recorded an income tax benefit of $1,215 for the year to date period ended September 30, 2014 for the portion of the change in valuation allowance arising from expected realization of deferred tax assets in future years. The Company also released $5,855 of valuation allowance related to the tax effects of income generated in the year to date period ended September 30, 2014, resulting in no net impact to the income tax provision. The Company will continue to assess the need for a valuation allowance in future periods. | ||
The effective tax rate for the quarter and the year to date periods ended September 30, 2014 were (23.1) percent and (6.6) percent, respectively, after consideration of utilization of certain deferred tax assets, primarily net operating loss carry forwards and the related impact due to the release of the valuation allowance. The income tax benefit of $1,169 recorded for the quarter ended September 30, 2014 primarily relates to the release of $1,215 of valuation allowance arising from expected realization of net deferred tax assets in future years. The income tax benefit for the year to date period ended September 30, 2014 was $1,002. The effective tax rate for the quarter and year to date periods ended September 30, 2013 was (0.3) percent and (0.2) percent, respectively, after consideration of utilization of certain deferred tax assets, primarily net operating loss carry forwards and the related impact to the valuation allowance. |
Property_and_Business_Interrup
Property and Business Interruption Insurance Claims and Recoveries (Notes) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Extraordinary and Unusual Items [Abstract] | ' | |||||||
Property and Business Interruption Insurance Claims and Recoveries | ' | |||||||
Property and Business Interruption Insurance Claims and Recoveries | ||||||||
During January 2014, the Company experienced a fire at its Indiana plant. The fire damaged certain equipment in the feed dryer house and caused a temporary loss of production. The fire did not impact the Company's own or customer-owned warehoused inventory. By the end of February the plant was at pre-fire production levels. | ||||||||
During the quarter and year to date period ended September 30, 2014, the Company received $2,058 and $2,308, respectively, of insurance recoveries. Detail of the activities related to the property and business interruption insurance claims and recoveries and where the net impacts are recorded on the Condensed Consolidated Statements of Comprehensive Income (Loss) is as follows: | ||||||||
Quarter Ended | Year to Date Ended | |||||||
September 30, | September 30, | |||||||
2014 | 2014 | |||||||
Total insurance recoveries | $ | 2,058 | $ | 2,308 | ||||
Insurance recoveries - interruption of business | $ | 765 | $ | 925 | ||||
Less: out-of-pocket expenses related to interruption of business in Cost of Sales | 118 | 328 | ||||||
Net reduction to Cost of sales | $ | 647 | $ | 597 | ||||
Insurance recoveries - property damage | $ | 1,293 | $ | 1,383 | ||||
Less: Net book value of property loss in Insurance Recoveries | — | 160 | ||||||
Insurance recoveries | $ | 1,293 | $ | 1,223 | ||||
Derivative_Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments | ' |
Derivative Instruments. | |
Certain commodities the Company uses in its production process are exposed to market price risk due to volatility in the prices for those commodities. The Company's grain supply contract for its Indiana and Atchison facilities permits the Company to purchase corn for delivery up to 12 months into the future, at negotiated prices. The pricing for these contracts is based on a formula using several factors. The Company has determined that the firm commitments to purchase corn under the terms of these contracts meet the normal purchases and sales exception as defined under ASC 815, Derivatives and Hedging, and has excluded the fair value of these commitments from recognition within its condensed consolidated financial statements until the actual contracts are physically settled. | |
The Company’s production process also involves the use of flour and natural gas. The contracts for flour and natural gas range from monthly contracts to multi-year supply arrangements; however, because the quantities involved have always been for amounts to be consumed within the normal expected production process, the Company has determined that these contracts meet the criteria for the normal purchases and sales exception and have excluded the fair value of these commitments from recognition within its condensed consolidated financial statements until the actual contracts are physically settled. See Note 4. Commitments and Contingencies for a discussion of the Company’s corn, flour and natural gas purchase commitments. |
Operating_Segments
Operating Segments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Segments | ' | ||||||||||||||||
Operating Segments. | |||||||||||||||||
The Company’s operations have been historically classified into three reportable segments: distillery products, ingredient solutions, and other. On February 8, 2013, the Company sold all of the assets included in its other segment, the bioplastics manufacturing business, including all of the Company’s assets at its bioplastics manufacturing facility in Onaga, Kansas and certain assets of the Company’s extruder bio-resin laboratory located in Atchison, Kansas. The sales price totaled $2,797 and resulted in a gain, net of tax, of $1,406 that was recognized as a gain on sale of discontinued operations for the quarter ended March 31, 2013. The remaining income statement activity for the quarter ended March 31, 2013 is not presented as discontinued operations due to its immateriality relative to the condensed consolidated financial statements as a whole. | |||||||||||||||||
The distillery products segment consists of food grade alcohol, along with fuel grade alcohol, distillers feed and corn oil, which are co-products of the Company’s distillery operations. Ingredient solutions consist of specialty starches and proteins, commodity starch, and vital wheat gluten (commodity protein). The other segment products included plant-based polymers and composite resins manufactured through the further processing of certain of the Company’s proteins and starches and wood. The two reportable segments remaining in 2014 are the distillery products and ingredient solutions segments. | |||||||||||||||||
The following table provides operating profit (loss) for each segment based on net sales less identifiable operating expenses. Non-direct selling, general and administrative, interest expense, investment income and other general miscellaneous expenses have been excluded from segment operations and classified as Corporate. The Company’s management reporting does not assign or allocate special charges to the Company’s operating segments. Receivables, inventories and equipment have been identified with the segments to which they relate. All other assets are considered Corporate. | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net Sales to Customers | |||||||||||||||||
Distillery products | $ | 63,700 | $ | 66,059 | $ | 194,035 | $ | 200,775 | |||||||||
Ingredient solutions | 13,815 | 14,112 | 43,043 | 44,997 | |||||||||||||
Other (i) | — | — | — | 198 | |||||||||||||
Total | 77,515 | 80,171 | 237,078 | 245,970 | |||||||||||||
Depreciation and Amortization | |||||||||||||||||
Distillery products | 2,133 | 2,064 | 6,334 | 6,102 | |||||||||||||
Ingredient solutions | 578 | 572 | 1,739 | 1,742 | |||||||||||||
Other (i) | — | — | — | 21 | |||||||||||||
Corporate | 382 | 368 | 1,129 | 1,090 | |||||||||||||
Total | 3,093 | 3,004 | 9,202 | 8,955 | |||||||||||||
Income (Loss) from Continuing Operations before Income Taxes | |||||||||||||||||
Distillery products | 6,547 | (1,647 | ) | 17,963 | 5,836 | ||||||||||||
Ingredient solutions | 1,082 | 1,279 | 2,828 | 3,944 | |||||||||||||
Other (i) | — | — | — | (90 | ) | ||||||||||||
Corporate | (2,570 | ) | (5,938 | ) | (5,681 | ) | (15,620 | ) | |||||||||
Total | $ | 5,059 | $ | (6,306 | ) | $ | 15,110 | $ | (5,930 | ) | |||||||
(i) Significant assets from this segment were sold February 8, 2013, as previously described, and two | |||||||||||||||||
reportable segments remain in 2014. | |||||||||||||||||
The following table allocates assets to each segment: | |||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||
Identifiable Assets | |||||||||||||||||
Distillery products | $ | 95,052 | $ | 97,875 | |||||||||||||
Ingredient solutions | 24,043 | 24,954 | |||||||||||||||
Other (i) | — | — | |||||||||||||||
Corporate | 30,014 | 28,500 | |||||||||||||||
Total | $ | 149,109 | $ | 151,329 | |||||||||||||
(i) Significant assets from this segment were sold February 8, 2013, as previously described, and two reportable | |||||||||||||||||
segments remain in 2014. |
Employee_and_NonEmployee_Benef
Employee and Non-Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee and Non-Employee Benefit Plans | ' | ||||||||||||||||
Employee and Non-Employee Benefit Plans. | |||||||||||||||||
Post Employment Benefits. The Company and its subsidiaries provide certain post-employment health care and life insurance benefits to certain retired employees. The liability for such benefits is unfunded. | |||||||||||||||||
Effective April 16, 2014, the Company made a change to the plan to eliminate retiree insurance benefit eligibility for certain union employees. The effect of this plan change was a negative plan amendment of $919 and a $52 curtailment gain for the year to date period ended September 30, 2014. The negative plan amendment will be recognized into income over the average remaining years to full eligibility. The accounting for the curtailment gain resulted in immediate recognition of income of unamortized prior service cost of $52 during the year to date period ended September 30, 2014. | |||||||||||||||||
The components of the Net Periodic Benefit Cost/Income for the quarter and year to date periods ended September 30, 2014 and 2013, respectively, are as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 14 | $ | 32 | $ | 58 | $ | 96 | |||||||||
Interest cost | 34 | 41 | 116 | 123 | |||||||||||||
Amortization of prior service cost | (66 | ) | (162 | ) | (305 | ) | (485 | ) | |||||||||
Amortization of net actuarial loss | 7 | 7 | 12 | 21 | |||||||||||||
Prior service cost recognized due to current curtailment | — | — | (52 | ) | — | ||||||||||||
Total post-retirement benefit cost / (income) | $ | (11 | ) | $ | (82 | ) | $ | (171 | ) | $ | (245 | ) | |||||
The Company disclosed in its financial statements for the year ended December 31, 2013, amounts expected to be paid to plan participants. There have been no revisions to these estimates, other than the impact of the negative plan amendment and curtailment gain, and there have been no changes in the estimate of total employer contributions expected to be made for the year ended December 31, 2014. The Company reclassified $345 of prior service cost and net actuarial loss from accumulated other comprehensive income into post-retirement benefit loss for the year to date period ended September 30, 2014 and $464 of prior service cost and net actuarial loss from accumulated other comprehensive loss into post-retirement benefit income for the prior year to date period ended September 30, 2013. | |||||||||||||||||
Total employer contributions accrued for the quarter ended September 30, 2014 were $0. | |||||||||||||||||
The Society of Actuaries released its final reports of the pension plan RP-2014 Mortality Tables and the Mortality Improvement Scale MP-2014 on October 27, 2014. The impact of this change in assumed mortality on post-employment benefits liability is being evaluated by the Company and will be appropriately recognized in the quarter and year to date periods ended December 31, 2014. | |||||||||||||||||
Pension Benefits. The Company and its subsidiaries also provide defined retirement benefits to certain employees covered under collective bargaining agreements. Under the collective bargaining agreements, the Company’s pension funding contributions are determined as a percentage of wages paid. The funding is divided between the defined benefit plans and a union 401(k) plan. It has been management’s policy to fund the defined benefit plans in accordance with the collective bargaining agreements. The collective bargaining agreements allow the plans’ trustees to develop changes to the pension plans to allow benefits to match funding, including reductions in benefits. The benefits under these pension plans are based upon years of qualified credited service; however, benefit accruals under the defined benefit plans were frozen in 2009. The Company is taking steps to terminate the pension plans for employees covered under collective bargaining agreements. The projected additional funding cost to the Company to terminate the plans is approximately $630. The additional funding cost will be recognized immediately in the period that the pension plan settlement is fully executed. | |||||||||||||||||
The components of the Net Periodic Benefit Cost for the quarter and year to date periods ended September 30, 2014 and 2013, respectively, are as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest cost | $ | 22 | $ | 21 | $ | 66 | $ | 62 | |||||||||
Expected return on plan assets | (26 | ) | (29 | ) | (78 | ) | (86 | ) | |||||||||
Amortization of net actuarial loss | 5 | 17 | 15 | 50 | |||||||||||||
Total pension benefit cost | $ | 1 | $ | 9 | $ | 3 | $ | 26 | |||||||||
The Company reclassified $63 and $36 of expected return on plan assets and net actuarial loss from accumulated other comprehensive loss into pension benefit income for the year to date periods ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
The Company previously disclosed in its financial statements for the year ended December 31, 2013, the assumptions used to determine accumulated benefit obligation. | |||||||||||||||||
The Company has made employer contributions to its pension plan of $0 and its union 401(k) of $26 during the quarter ended September 30, 2014. | |||||||||||||||||
The Society of Actuaries released its final reports of the pension plan RP-2014 Mortality Tables and the Mortality Improvement Scale MP-2014 on October 27, 2014. The impact of this change in assumed mortality on pension benefits liability is being evaluated by the Company and will be appropriately recognized in the quarter and year to date periods ended December 31, 2014. | |||||||||||||||||
Equity-Based Compensation Plans. The Company’s equity based compensation plans provide for the awarding of stock options, stock appreciation rights, shares of Restricted Stock, and RSUs for senior executives and salaried employees as well as outside directors. As of September 30, 2014, 777,747 shares of Restricted Stock and RSUs were outstanding, net of forfeitures, under the Company’s long-term incentive plans. | |||||||||||||||||
As of September 30, 2014, the Company was authorized to issue 40,000,000 shares of Common Stock. In connection with the Reorganization, the Company retired its treasury stock, which had historically been used for issuance of Common Stock under the Company’s equity-based compensation plans. With the retirement of these treasury shares, the Company reserved certain authorized shares for issuance of Common Stock under its equity-based compensation plans. At the Company's annual meeting in May 2014, shareholders approved a new Employee Equity Incentive Plan with 1,500,000 shares registered for future grants, as well as a new Employee Stock Purchase Plan with 300,000 shares registered for employee purchase. | |||||||||||||||||
The Employee Equity Incentive Plan provides that vesting occurs pursuant to the time period specified in the particular award agreement approved for that issuance of RSUs, which is not less than three years unless vesting is accelerated due to the occurrence of certain events. The compensation expense related to awards granted under the Employee Equity Incentive Plan is based on the market price of the stock on the date the Board of Directors approves the grant and is amortized over the vesting period of the Restricted Stock award. In August 2014, 12,000 shares were granted of the 1,500,000 shares approved for grants related to the Employee Equity Incentive Plan. | |||||||||||||||||
Also approved by shareholders was a new Non-Employee Director Equity Incentive Plan with 300,000 shares registered for future grants. In June 2014, 16,360 of the 300,000 registered shares were granted to non-employee directors in the form of unvested RSUs. The Non-Employee Director Equity Incentive Plan provides that vesting occurs pursuant to the time period specified in the particular award agreement approved for that issuance of RSUs, which is not less than one year unless vesting is accelerated due to the occurrence of certain events. The awards issued in June 2014 will vest over three years. The compensation expense related to awards granted under the Non-Employee Director Equity Incentive Plan is based on the market price of the stock on the date the Board of Directors approves the grant and is amortized over the elected service period of the directors. | |||||||||||||||||
Simultaneously with the approval of the new Employee Equity Incentive Plan, the shares reserved with the retirement of treasury shares in connection with the Reorganization were terminated, except for a continuing reserve in the share amount of the remaining unvested Restricted Stock, RSUs and unexercised stock options for non-employees, employees and executives. Reserved shares of Common Stock for unvested Restricted Stock, RSUs and unexercised stock options granted under the prior equity plans at September 30, 2014 were: | |||||||||||||||||
Stock options granted but not exercised | 10,000 | ||||||||||||||||
Restricted stock to non-employees (authorized but not granted) | 20,493 | ||||||||||||||||
Restricted stock to employees and executives (authorized but not granted) | 404,349 | ||||||||||||||||
Total | 434,842 | ||||||||||||||||
Industrial_Revenue_Bond
Industrial Revenue Bond | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Industrial Revenue Bond | ' | ||||||||||||
Industrial Revenue Bond. | |||||||||||||
On December 28, 2006, the Company engaged in an industrial revenue bond transaction with the City of Atchison, Kansas (the “City”) and received a ten-year real property tax abatement on its newly constructed office building and technical center in Atchison, Kansas. The Company recorded the office building and technical center assets as property and equipment on the consolidated balance sheets. Pursuant to this transaction, the City issued $7,000 principal amount of bonds to the Company. The City used the proceeds to purchase the office building and technical center from the Company. The City then leased the facilities back to the Company under a capital lease, the terms of which provide for the payment of basic rent in an amount sufficient to pay interest at a rate 4.9 percent on the bonds, payable annually on December 1st of each year. A balloon payment of $7,000 will be due upon maturity on December 1, 2016. The Company’s obligation to pay rent under the lease provides for both the same interest and balloon payment amounts and the same due dates as the City’s obligation to pay debt service on the bonds, which the Company holds. The lease permits the Company to present the bonds at any time for cancellation, upon which our obligation to pay basic rent would be cancelled. The Company does not intend to do this until their maturity date on December 1, 2016, at which time the Company may elect to purchase the facilities for $100 (one hundred dollars). Because the Company owns all the outstanding bonds, management considers the debt cancelled and, accordingly, no investment or related obligation under the capital lease is reflected on our balance sheet. In connection with this transaction, the Company agreed to pay the City an administrative fee of $50, which is payable over 10 years. If the Company were to present the bonds for cancellation prior to maturity, the $50 fee would be accelerated. | |||||||||||||
Below is a summary of the financial asset and liability that are offset at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||
(i) | (ii) | (iii) =i) - (ii) | |||||||||||
Description | Gross | Gross | Net Amounts of | ||||||||||
Amounts of | Amounts | Assets (Liabilities) | |||||||||||
Recognized | offset in the | presented in the | |||||||||||
Assets | Balance Sheet | Balance Sheet | |||||||||||
(Liabilities) | |||||||||||||
September 30, 2014 | |||||||||||||
Investment in bonds | $ | 7,000 | $ | 7,000 | $ | — | |||||||
Capital lease obligation | $ | (7,000 | ) | $ | (7,000 | ) | $ | — | |||||
31-Dec-13 | |||||||||||||
Investment in bonds | $ | 7,000 | $ | 7,000 | $ | — | |||||||
Capital lease obligation | $ | (7,000 | ) | $ | (7,000 | ) | $ | — | |||||
Severance_Costs
Severance Costs | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Severance Costs | ' | |||||||||||||||
Severance Costs | ||||||||||||||||
On December 3, 2013, the Company entered into the Settlement Agreement, pursuant to which the Company terminated its Chief Executive Officer and President, Timothy W. Newkirk. In connection with the Settlement Agreement, the Company agreed to pay Mr. Newkirk severance costs totaling $714. The Company also entered into a Transition Services Agreement, which obliges the Company to pay Mr. Newkirk up to $201, exclusive of out-of-pocket expenses. All such costs were expensed and accrued during 2013. Certain other members of management were also terminated in 2013 and 2014. | ||||||||||||||||
Activity related to severance costs was as follows: | ||||||||||||||||
Quarter Ended | Year to Date Ended | |||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Balance at beginning of period | $ | 547 | $ | 83 | $ | 1,142 | $ | 126 | ||||||||
Provision for additional expense | — | — | 313 | 1 | ||||||||||||
Payments and adjustments | (313 | ) | (16 | ) | (1,221 | ) | (60 | ) | ||||||||
Balance at end of period | $ | 234 | $ | 67 | $ | 234 | $ | 67 | ||||||||
Severance costs are included in Selling, general and administrative expenses on the Condensed Consolidated Statements of Comprehensive Income (Loss) and the related accrual is included in Accrued expenses on the Condensed Consolidated Balance Sheets. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
During October 2014, the Company experienced a fire at its Atchison plant. Certain equipment in the plant's feed drying operations was damaged and the Company experienced a seven-day temporary loss of production. The net book value of the damaged equipment is $617. The Company is currently working with its insurance carrier to determine the coverage for equipment damage and business interruption losses. |
Accounting_Policies_and_Basis_1
Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation and Principles of Consolidation | ' | |
Basis of Presentation and Principles of Consolidation | ||
The accompanying unaudited condensed consolidated financial statements of the Company reflect all adjustments (consisting only of normal adjustments) which, in the opinion of the Company’s management, are necessary to fairly present the financial position, results of operations and cash flows of the Company. All intercompany balances and transactions have been eliminated in consolidation. | ||
These unaudited condensed consolidated financial statements as of and for the year to date period ended September 30, 2014 should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Inventory | ' | |
Inventory | ||
Inventory includes finished goods, barreled distillate, raw materials in the form of agricultural commodities used in the production process, work in process, and certain maintenance and repair items. Whiskey and bourbon must be aged in barrels for several years, following industry practice; all barreled whiskey and bourbon 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 market on the first-in, first-out (“FIFO”) method. | ||
Equity Method Investments | ' | |
Equity Method Investments | ||
The Company accounts for its investment in non-consolidated subsidiaries under the equity method of accounting when the Company has significant influence, but does not have more than 50% voting control, and is not considered the primary beneficiary. Under the equity method of accounting, the Company reflects its investment in non-consolidated subsidiaries within the Company’s Condensed Consolidated Balance Sheets as Equity method investments; the Company’s share of the earnings or losses of the non-consolidated subsidiaries are reflected as Equity method investment earnings (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss). | ||
The Company reviews its investments in non-consolidated subsidiaries for impairment whenever events or changes in business circumstances indicate that the carrying amount of the investments may not be fully recoverable. Evidence of a loss in value that is other than temporary include, but are not limited to, the absence of an ability to recover the carrying amount of the investment, the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment, or, where applicable, estimated sales proceeds which are insufficient to recover the carrying amount of the investment. If the fair value of the investment is determined to be less than the carrying value and the decline in value is considered to be other than temporary, an appropriate write-down is recorded based on the excess of the carrying value over the best estimate of fair value of the investment. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Except as discussed below, revenue from the sale of the Company’s products is recognized as products are delivered to customers according to shipping terms and when title and risk of loss have transferred. Income from various government incentive programs is recognized as it is earned. | ||
The Company’s distillery segment produces unaged distillate and this product is frequently barreled and warehoused at a Company location for an extended period of time in accordance with directions received from the Company’s customers. This product must meet customer acceptance specifications, the risks of ownership and title for these goods must be passed to the Company’s customers, and requirements for bill and hold revenue recognition must be met prior to the Company recognizing revenue for this product. Separate warehousing agreements are maintained for customers who store their product with the Company and warehouse revenues are recognized as the service is provided. | ||
Recognition of Insurance Recoveries | ' | |
Recognition of Insurance Recoveries | ||
Estimated loss contingencies are recognized as charges to income when they are probable and reasonably estimable. Insurance recoveries are not recognized until all contingencies related to the insurance claim have been resolved and settlement has been reached with the insurer. Insurance recoveries, to the extent of costs and losses, are reported as a reduction to Cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss). Insurance recoveries, in excess of costs and losses, if any, are included in Insurance recoveries on the Condensed Consolidated Statements of Comprehensive Income (Loss). | ||
During January 2014, the Company experienced a fire at its Indiana plant. The fire damaged certain equipment in the feed dryer house and caused a temporary loss of production in late January. Prior to the insurance recovery related to the property claim, the write-off of damaged assets was included in Other operating costs and losses on sale of assets on the Condensed Consolidated Statements of Comprehensive Income (Loss). | ||
Income Taxes | ' | |
Income Taxes | ||
Deferred income tax assets and liabilities resulting from the effects of transactions reported in different periods for financial reporting and income tax are recorded using the liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws upon enactment as well as applied income tax rates when facts and circumstances warrant such changes. A valuation allowance is established to reduce deferred income tax assets when it is more likely than not that a deferred income tax asset may not be realized. When measuring the need for a valuation allowance, the Company assesses both positive and negative evidence regarding whether these deferred tax assets are realizable. In determining deferred tax assets and valuation allowances, the Company is required to make judgments and estimates related to projections of profitability, character of income, timing and extent of the utilization of temporary differences, net operating loss carryforwards and tax credits, and tax planning strategies. The valuation allowance is reviewed quarterly and is maintained until sufficient positive evidence exists to support a reversal. A valuation allowance is released when it is determined that it is more likely than not that deferred tax assets will be realized. | ||
Earnings per Share | ' | |
Earnings (Loss) per Share | ||
Basic and diluted earnings (loss) per share are 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 and dividend equivalents declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income (loss) from continuing operations attributable to common shareholders by the weighted average shares outstanding during the period. | ||
Impairment | ' | |
Impairment | ||
The Company tests its long-lived assets and instruments for impairment whenever events or conditions and circumstances indicate a carrying amount of an asset may not be recoverable. No events or conditions occurred during the quarter or year to date periods ended September 30, 2014 that required the Company to test its long-lived assets for impairment. | ||
Fair Value Measurements | ' | |
Fair Value Measurements | ||
The fair value of an asset is considered to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of inputs used to measure fair value are as follows: | ||
• | Level 1 - quoted prices in active markets for identical assets or liabilities accessible by the reporting entity. | |
• | Level 2 - observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |
• | Level 3 - unobservable inputs for an asset or liability. Unobservable inputs should only be used to the extent observable inputs are not available. | |
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. |
Accounting_Policies_and_Basis_2
Accounting Policies and Basis of Presentation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventory consists of the following: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Finished goods | $ | 9,707 | $ | 11,355 | |||||
Barreled distillate | 9,834 | 10,310 | |||||||
Work in process | 2,672 | 2,737 | |||||||
Raw materials | 3,593 | 5,183 | |||||||
Maintenance materials | 5,012 | 4,766 | |||||||
Other | 647 | 566 | |||||||
Total | $ | 31,465 | $ | 34,917 | |||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Schedule of Equity Method Investments | ' | ||||||||||||||||
The Company’s investment in joint ventures is as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
ICP (26.4% interest) (a) | $ | 13,845 | $ | 6,653 | |||||||||||||
DMI (50% interest) | 519 | 470 | |||||||||||||||
$ | 14,364 | $ | 7,123 | ||||||||||||||
(a) | The cumulative effect of the change in estimate was a decrease in equity interest in ICP of $1,882, which effectively reduced the Company's investment in ICP from 30 percent to 26.4 percent at September 30, 2014. | ||||||||||||||||
Condensed financial information related to the Company’s non-consolidated equity method investment in ICP is shown below. | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
ICP’s Operating results: | |||||||||||||||||
Net sales (a) | $ | 53,813 | $ | 52,580 | $ | 185,460 | $ | 146,807 | |||||||||
Cost of sales and expenses (b) | 48,467 | 53,165 | 155,214 | 150,279 | |||||||||||||
Net income (loss) | $ | 5,346 | $ | (585 | ) | $ | 30,246 | $ | (3,472 | ) | |||||||
(a) | Includes related party sales to MGPI of $9,287 and $110 for the quarters ended September 30, 2014 and 2013, respectively, and $23,905 and $3,510 for the year to date periods ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
(b) | Includes depreciation and amortization of $738 and $1,171 for the quarters ended September 30, 2014 and 2013, respectively, and $2,100 and $3,511 for the year to date periods ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
The Company's Equity in Earnings (Loss) of Joint Ventures | ' | ||||||||||||||||
The Company’s equity method investment earnings (loss) of joint ventures based on unaudited financial statements is as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
ICP (a) | $ | 1,604 | $ | (135 | ) | $ | 7,192 | $ | (1,042 | ) | |||||||
DMI (50% interest) | 17 | 44 | 95 | 80 | |||||||||||||
$ | 1,621 | $ | (91 | ) | $ | 7,287 | $ | (962 | ) | ||||||||
(a) | The cumulative effect of the change in estimate for the year to date period ended September 30, 2014 was a decrease in equity method investment earnings of $1,882, which reduced the joint venture investment earnings for the same period to 23.8 percent. The joint venture investment earnings for the quarter ended September 30, 2014 was 30 percent, as well as for the quarter and year to date periods ended September 30, 2013. | ||||||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||||||
The computations of basic and diluted earnings (loss) per share from continuing and discontinued operations are as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Continuing Operations: | |||||||||||||||||
Net income (loss) from continuing operations attributable to shareholders | $ | 6,228 | $ | (6,325 | ) | 16,112 | $ | (5,974 | ) | ||||||||
Less: Amounts allocated to participating securities (nonvested shares and units)(i) | 268 | — | 692 | — | |||||||||||||
Net income (loss) from continuing operations attributable to common shareholders | $ | 5,960 | $ | (6,325 | ) | $ | 15,420 | $ | (5,974 | ) | |||||||
Discontinued Operations: | |||||||||||||||||
Discontinued operations attributable to shareholders | $ | — | $ | — | $ | — | $ | 1,406 | |||||||||
Less: Amounts allocated to participating securities (nonvested shares and units)(i) | — | — | — | — | |||||||||||||
Discontinued operations attributable to common shareholders | $ | — | $ | — | $ | — | $ | 1,406 | |||||||||
Share information: | |||||||||||||||||
Basic weighted average common shares(ii) | 17,334,330 | 17,127,523 | 17,286,258 | 17,045,001 | |||||||||||||
Potential dilutive securities(iii) | 229 | — | — | — | |||||||||||||
Diluted weighted average common shares | 17,334,559 | 17,127,523 | 17,286,258 | 17,045,001 | |||||||||||||
Basic earnings (loss) per share | |||||||||||||||||
Income (loss) from continuing operations | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.35 | ) | |||||||
Income from discontinued operations | — | — | — | 0.08 | |||||||||||||
Net income (loss) (iv) | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.27 | ) | |||||||
Diluted earnings (loss) per share | |||||||||||||||||
Income (loss) from continuing operations | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.35 | ) | |||||||
Income from discontinued operations | — | — | — | 0.08 | |||||||||||||
Net income (loss) (iv) | $ | 0.34 | $ | (0.37 | ) | $ | 0.89 | $ | (0.27 | ) | |||||||
(i) | Participating securities include 301,598 and 699,612 nonvested restricted shares for the quarters ended September 30, 2014 and 2013, respectively, as well as 476,149 and 413,764 restricted share units for the quarters ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
(ii) | Under the two-class method, basic weighted average common shares exclude outstanding nonvested, participating securities consisting of restricted share awards of 301,598 and 699,612 for the quarters ended September 30, 2014 and 2013, respectively. | ||||||||||||||||
(iii) | Anti-dilutive shares related to stock options totaled 6,000 and 18,000 for the quarters ended September 30, 2014 and 2013, respectively, and 8,667 and 18,667 for the year to date periods ended September 30, 2014 and 2013, respectively. There were dilutive shares related to stock options totaling 4,000 and 0 for the quarters ended September 30, 2014 and 2013, respectively, and 1,333 and 1,333 for the year to date periods ended September 30, 2014 and 2013, respectively. The dilutive shares resulted in potential dilutive securities of 229 and 0 for the quarter and year to date periods ended September 30, 2014 and potential dilutive securities of 0 and 0 for the quarter and year to date periods ended September 30, 2013, respectively. | ||||||||||||||||
(iv) | See Note 2. Equity Method Investments for further discussion of earnings (loss) per share for the year to date period ended September 30, 2014. |
Property_and_Business_Interrup1
Property and Business Interruption Insurance Claims and Recoveries (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Extraordinary and Unusual Items [Abstract] | ' | |||||||
Schedule of Business Insurance Recoveries | ' | |||||||
Detail of the activities related to the property and business interruption insurance claims and recoveries and where the net impacts are recorded on the Condensed Consolidated Statements of Comprehensive Income (Loss) is as follows: | ||||||||
Quarter Ended | Year to Date Ended | |||||||
September 30, | September 30, | |||||||
2014 | 2014 | |||||||
Total insurance recoveries | $ | 2,058 | $ | 2,308 | ||||
Insurance recoveries - interruption of business | $ | 765 | $ | 925 | ||||
Less: out-of-pocket expenses related to interruption of business in Cost of Sales | 118 | 328 | ||||||
Net reduction to Cost of sales | $ | 647 | $ | 597 | ||||
Insurance recoveries - property damage | $ | 1,293 | $ | 1,383 | ||||
Less: Net book value of property loss in Insurance Recoveries | — | 160 | ||||||
Insurance recoveries | $ | 1,293 | $ | 1,223 | ||||
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net Sales to Customers | |||||||||||||||||
Distillery products | $ | 63,700 | $ | 66,059 | $ | 194,035 | $ | 200,775 | |||||||||
Ingredient solutions | 13,815 | 14,112 | 43,043 | 44,997 | |||||||||||||
Other (i) | — | — | — | 198 | |||||||||||||
Total | 77,515 | 80,171 | 237,078 | 245,970 | |||||||||||||
Depreciation and Amortization | |||||||||||||||||
Distillery products | 2,133 | 2,064 | 6,334 | 6,102 | |||||||||||||
Ingredient solutions | 578 | 572 | 1,739 | 1,742 | |||||||||||||
Other (i) | — | — | — | 21 | |||||||||||||
Corporate | 382 | 368 | 1,129 | 1,090 | |||||||||||||
Total | 3,093 | 3,004 | 9,202 | 8,955 | |||||||||||||
Income (Loss) from Continuing Operations before Income Taxes | |||||||||||||||||
Distillery products | 6,547 | (1,647 | ) | 17,963 | 5,836 | ||||||||||||
Ingredient solutions | 1,082 | 1,279 | 2,828 | 3,944 | |||||||||||||
Other (i) | — | — | — | (90 | ) | ||||||||||||
Corporate | (2,570 | ) | (5,938 | ) | (5,681 | ) | (15,620 | ) | |||||||||
Total | $ | 5,059 | $ | (6,306 | ) | $ | 15,110 | $ | (5,930 | ) | |||||||
(i) Significant assets from this segment were sold February 8, 2013, as previously described, and two | |||||||||||||||||
reportable segments remain in 2014. | |||||||||||||||||
Schedule Of Segment Reporting Identifiable Assets | ' | ||||||||||||||||
The following table allocates assets to each segment: | |||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||
Identifiable Assets | |||||||||||||||||
Distillery products | $ | 95,052 | $ | 97,875 | |||||||||||||
Ingredient solutions | 24,043 | 24,954 | |||||||||||||||
Other (i) | — | — | |||||||||||||||
Corporate | 30,014 | 28,500 | |||||||||||||||
Total | $ | 149,109 | $ | 151,329 | |||||||||||||
(i) Significant assets from this segment were sold February 8, 2013, as previously described, and two reportable | |||||||||||||||||
segments remain in 2014. |
Employee_and_NonEmployee_Benef1
Employee and Non-Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Net Benefit Costs | ' | ||||||||||||||||
The components of the Net Periodic Benefit Cost/Income for the quarter and year to date periods ended September 30, 2014 and 2013, respectively, are as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 14 | $ | 32 | $ | 58 | $ | 96 | |||||||||
Interest cost | 34 | 41 | 116 | 123 | |||||||||||||
Amortization of prior service cost | (66 | ) | (162 | ) | (305 | ) | (485 | ) | |||||||||
Amortization of net actuarial loss | 7 | 7 | 12 | 21 | |||||||||||||
Prior service cost recognized due to current curtailment | — | — | (52 | ) | — | ||||||||||||
Total post-retirement benefit cost / (income) | $ | (11 | ) | $ | (82 | ) | $ | (171 | ) | $ | (245 | ) | |||||
The components of the Net Periodic Benefit Cost for the quarter and year to date periods ended September 30, 2014 and 2013, respectively, are as follows: | |||||||||||||||||
Quarter Ended | Year to Date Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest cost | $ | 22 | $ | 21 | $ | 66 | $ | 62 | |||||||||
Expected return on plan assets | (26 | ) | (29 | ) | (78 | ) | (86 | ) | |||||||||
Amortization of net actuarial loss | 5 | 17 | 15 | 50 | |||||||||||||
Total pension benefit cost | $ | 1 | $ | 9 | $ | 3 | $ | 26 | |||||||||
Reserved Shares of Common Stock | ' | ||||||||||||||||
Reserved shares of Common Stock for unvested Restricted Stock, RSUs and unexercised stock options granted under the prior equity plans at September 30, 2014 were: | |||||||||||||||||
Stock options granted but not exercised | 10,000 | ||||||||||||||||
Restricted stock to non-employees (authorized but not granted) | 20,493 | ||||||||||||||||
Restricted stock to employees and executives (authorized but not granted) | 404,349 | ||||||||||||||||
Total | 434,842 | ||||||||||||||||
Industrial_Revenue_Bond_Tables
Industrial Revenue Bond (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Summary Of Industrial Revenue Bond Off Sets | ' | ||||||||||||
Below is a summary of the financial asset and liability that are offset at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||
(i) | (ii) | (iii) =i) - (ii) | |||||||||||
Description | Gross | Gross | Net Amounts of | ||||||||||
Amounts of | Amounts | Assets (Liabilities) | |||||||||||
Recognized | offset in the | presented in the | |||||||||||
Assets | Balance Sheet | Balance Sheet | |||||||||||
(Liabilities) | |||||||||||||
September 30, 2014 | |||||||||||||
Investment in bonds | $ | 7,000 | $ | 7,000 | $ | — | |||||||
Capital lease obligation | $ | (7,000 | ) | $ | (7,000 | ) | $ | — | |||||
31-Dec-13 | |||||||||||||
Investment in bonds | $ | 7,000 | $ | 7,000 | $ | — | |||||||
Capital lease obligation | $ | (7,000 | ) | $ | (7,000 | ) | $ | — | |||||
Severance_Costs_Tables
Severance Costs (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
Activity related to severance costs was as follows: | ||||||||||||||||
Quarter Ended | Year to Date Ended | |||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
Balance at beginning of period | $ | 547 | $ | 83 | $ | 1,142 | $ | 126 | ||||||||
Provision for additional expense | — | — | 313 | 1 | ||||||||||||
Payments and adjustments | (313 | ) | (16 | ) | (1,221 | ) | (60 | ) | ||||||||
Balance at end of period | $ | 234 | $ | 67 | $ | 234 | $ | 67 | ||||||||
Accounting_Policies_and_Basis_3
Accounting Policies and Basis of Presentation (Detail) - Inventory (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Finished goods | $9,707 | $11,355 |
Barreled distillate | 9,834 | 10,310 |
Work in process | 2,672 | 2,737 |
Raw materials | 3,593 | 5,183 |
Maintenance materials | 5,012 | 4,766 |
Other | 647 | 566 |
Total | $31,465 | $34,917 |
Accounting_Policies_and_Basis_4
Accounting Policies and Basis of Presentation (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Apr. 09, 2014 | Feb. 28, 2014 | Apr. 10, 2013 | Feb. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling revenue | ' | ' | ' | ' | $3,237 | $3,153 | $10,400 | $8,789 | ' |
Effective income tax rate, continuing operations (percent) | ' | ' | ' | ' | -23.10% | -0.30% | -6.60% | -0.20% | ' |
Provision (benefit) for income taxes | ' | ' | ' | ' | -1,169 | 19 | -1,002 | 44 | ' |
Debt instrument, fair value disclosure | ' | ' | ' | ' | 16,708 | ' | 16,708 | ' | 23,300 |
Long-term debt, gross | ' | ' | ' | ' | 16,663 | ' | 16,663 | ' | 23,168 |
Common stock, dividends, per share, declared (in Dollars per share) | ' | $0.05 | ' | $0.05 | ' | ' | ' | ' | ' |
Payments of dividends | 907 | ' | 916 | ' | ' | ' | 907 | 916 | ' |
Dividends paid with cash | 884 | ' | 897 | ' | ' | ' | ' | ' | ' |
Dividend equivalent payments | $23 | ' | $19 | ' | ' | ' | ' | ' | ' |
Accounting_Policies_and_Basis_5
Accounting Policies and Basis of Presentation - Debt (Details) (USD $) | 9 Months Ended | 0 Months Ended | 15 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 12, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Aug. 05, 2014 | Sep. 30, 2014 |
Wells Fargo Bank [Member] | Wells Fargo Bank [Member] | Revolver borrowings [Member] | Fixed asset sub-line term loan [Member] | Fixed asset sub-line term loan [Member] | |||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Maximum governance expenses included in EBITA | ' | ' | $5,500 | ' | ' | ' | ' |
Settlement expense | ' | ' | ' | 5,465 | ' | ' | ' |
Debt obligations transferred to sub-line term loan | ' | ' | ' | ' | ' | 7,004 | ' |
Loan fees incurred with borrowings | -66 | 0 | ' | ' | ' | ' | ' |
Outstanding borrowings under credit facility | 12,656 | ' | ' | ' | 5,736 | ' | 6,920 |
Credit facility, remaining borrowing capacity | $36,929 | ' | ' | ' | ' | ' | ' |
Average interest rate | 2.57% | ' | ' | ' | ' | ' | ' |
Equity_Method_Investments_Deta
Equity Method Investments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 29, 2014 | |
ICP Limited Liability Company [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
EBITDA | ' | $500,000 | ' | ' | ' |
DMI [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity method ownership percentage (percent) | 50.00% | ' | 50.00% | ' | ' |
ICP [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity method ownership percentage (percent) | 26.40% | ' | 26.40% | ' | 30.00% |
Income allocation to objecting member (as a percent) | 80.00% | ' | 80.00% | ' | ' |
Income allocation to electing member (percent) | 20.00% | ' | 20.00% | ' | ' |
Decrease in related equity method investment earnings due to reassessment | ' | ' | 1,882,000 | ' | ' |
Decrease in earnings per share | ' | ' | $0.10 | ' | ' |
Related party sales to MGPI | 9,287,000 | 110,000 | 23,905,000 | 3,510,000 | ' |
Depreciation and amortization | $738,000 | $1,171,000 | $2,100,000 | $3,511,000 | ' |
Decrease in equity method investment earnings (as a percent) | ' | ' | 24.00% | ' | ' |
ICP [Member] | ICP Holdings [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage by parent (percent) | 70.00% | ' | 70.00% | ' | ' |
Equity_Method_Investments_Oper
Equity Method Investments - Operating Results (Details) (ICP [Member], USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
ICP [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Net sales | $53,813 | [1] | $52,580 | [1] | $185,460 | [1] | $146,807 | [1] |
Cost of sales and expenses | 48,467 | [2] | 53,165 | [2] | 155,214 | [2] | 150,279 | [2] |
Net income (loss) | $5,346 | ($585) | $30,246 | ($3,472) | ||||
[1] | Includes related party sales to MGPI of $9,287 and $110 for the quarters ended September 30, 2014 and 2013, respectively, and $23,905 and $3,510 for the year to date periods ended September 30, 2014 and 2013, respectively. | |||||||
[2] | Includes depreciation and amortization of $738 and $1,171 for the quarters ended September 30, 2014 and 2013, respectively, and $2,100 and $3,511 for the year to date periods ended September 30, 2014 and 2013, respectively. |
Equity_Method_Investments_Deta1
Equity Method Investments (Detail) - The Company’s Equity in Earnings (Loss) of Joint Ventures (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Equity in earnings (loss) of joint ventures | $1,621 | ($91) | $7,287 | ($962) | ||||
ICP [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Equity in earnings (loss) of joint ventures | 1,604 | [1] | -135 | [1] | 7,192 | [1] | -1,042 | [1] |
DMI [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Equity in earnings (loss) of joint ventures | $17 | $44 | $95 | $80 | ||||
[1] | The cumulative effect of the change in estimate for the year to date period ended September 30, 2014 was a decrease in equity method investment earnings of $1,882, which reduced the joint venture investment earnings for the same period to 23.8 percent. The joint venture investment earnings for the quarter ended September 30, 2014 was 30 percent, as well as for the quarter and year to date periods ended September 30, 2013. |
Equity_Method_Investments_Deta2
Equity Method Investments (Detail) - The Company's Investment in Joint Ventures (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Equity Method Investments | $14,364 | $7,123 | ||
ICP [Member] | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Equity Method Investments | 13,845 | [1] | 6,653 | [1] |
DMI [Member] | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Equity Method Investments | $519 | $470 | ||
[1] | The cumulative effect of the change in estimate was a decrease in equity interest in ICP of $1,882, which effectively reduced the Company's investment in ICP from 30 percent to 26.4 percent at September 30, 2014. |
Earnings_per_Share_Detail_The_
Earnings per Share (Detail) - The Computations of Basic and Diluted Earnings (Loss) Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Continuing Operations: | ' | ' | ' | ' | ||||
Net income (loss) from continuing operations attributable to shareholders | $6,228 | ($6,325) | $16,112 | ($5,974) | ||||
Net income (loss) from continuing operations attributable to common shareholders | 5,960 | -6,325 | 15,420 | -5,974 | ||||
Discontinued Operations: | ' | ' | ' | ' | ||||
Discontinued operations attributable to shareholders | 0 | 0 | 0 | 1,406 | ||||
Discontinued operations attributable to common shareholders | 0 | 0 | 0 | 1,406 | ||||
Share information: | ' | ' | ' | ' | ||||
Basic weighted average common shares | 17,334,330 | [1] | 17,127,523 | [1] | 17,286,258 | [1] | 17,045,001 | [1] |
Potential dilutive securities | 229 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Diluted weighted average common shares | 17,334,559 | 17,127,523 | 17,286,258 | 17,045,001 | ||||
Basic earnings (loss) per share | ' | ' | ' | ' | ||||
Income (loss) from continuing operations (dollars per share) | $0.34 | ($0.37) | $0.89 | ($0.35) | ||||
Income from discontinued operations (dollars per share) | $0 | $0 | $0 | $0.08 | ||||
Net income (loss) (dollars per share) | $0.34 | [3] | ($0.37) | [3] | $0.89 | [3] | ($0.27) | [3] |
Diluted earnings (loss) per share | ' | ' | ' | ' | ||||
Income (loss) from continuing operations (dollars per share) | $0.34 | ($0.37) | $0.89 | ($0.35) | ||||
Income from discontinued operations (dollars per share) | $0 | $0 | $0 | $0.08 | ||||
Net income (loss) (dollars per share) | $0.34 | ($0.37) | [3] | $0.89 | ($0.27) | [3] | ||
Continuing Operations [Member] | ' | ' | ' | ' | ||||
Continuing Operations: | ' | ' | ' | ' | ||||
Less: Amounts allocated to participating securities (nonvested shares and units) | 268 | [4] | 0 | [4] | 692 | [4] | 0 | [4] |
Discontinued Operations: | ' | ' | ' | ' | ||||
Less: Amounts allocated to participating securities (nonvested shares and units) | 268 | [4] | 0 | [4] | 692 | [4] | 0 | [4] |
Gain On Sale Of Discontinued Operations [Member] | ' | ' | ' | ' | ||||
Continuing Operations: | ' | ' | ' | ' | ||||
Less: Amounts allocated to participating securities (nonvested shares and units) | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] |
Discontinued Operations: | ' | ' | ' | ' | ||||
Less: Amounts allocated to participating securities (nonvested shares and units) | $0 | [4] | $0 | [4] | $0 | [4] | $0 | [4] |
[1] | Under the two-class method, basic weighted average common shares exclude outstanding nonvested, participating securities consisting of restricted share awards of 301,598 and 699,612 for the quarters ended September 30, 2014 and 2013, respectively. | |||||||
[2] | Anti-dilutive shares related to stock options totaled 6,000 and 18,000 for the quarters ended September 30, 2014 and 2013, respectively, and 8,667 and 18,667 for the year to date periods ended September 30, 2014 and 2013, respectively. There were dilutive shares related to stock options totaling 4,000 and 0 for the quarters ended September 30, 2014 and 2013, respectively, and 1,333 and 1,333 for the year to date periods ended September 30, 2014 and 2013, respectively. The dilutive shares resulted in potential dilutive securities of 229 and 0 for the quarter and year to date periods ended September 30, 2014 and potential dilutive securities of 0 and 0 for the quarter and year to date periods ended September 30, 2013, respectively. | |||||||
[3] | See Note 2. Equity Method Investments for further discussion of earnings (loss) per share for the year to date period ended September 30, 2014. | |||||||
[4] | Participating securities include 301,598 and 699,612 nonvested restricted shares for the quarters ended September 30, 2014 and 2013, respectively, as well as 476,149 and 413,764 restricted share units for the quarters ended September 30, 2014 and 2013, respectively. |
Earnings_per_Share_Detail
Earnings per Share (Detail) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 6,000 | 18,000 | 8,667 | 18,667 | ||||
Dilutive securities | 4,000 | 0 | 1,333 | 1,333 | ||||
Potential dilutive securities | 229 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Restricted Stock [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Restricted stock | 301,598 | 699,612 | ' | ' | ||||
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Restricted stock units | 476,149 | 413,764 | ' | ' | ||||
[1] | Anti-dilutive shares related to stock options totaled 6,000 and 18,000 for the quarters ended September 30, 2014 and 2013, respectively, and 8,667 and 18,667 for the year to date periods ended September 30, 2014 and 2013, respectively. There were dilutive shares related to stock options totaling 4,000 and 0 for the quarters ended September 30, 2014 and 2013, respectively, and 1,333 and 1,333 for the year to date periods ended September 30, 2014 and 2013, respectively. The dilutive shares resulted in potential dilutive securities of 229 and 0 for the quarter and year to date periods ended September 30, 2014 and potential dilutive securities of 0 and 0 for the quarter and year to date periods ended September 30, 2013, respectively. |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Long-term Purchase Commitment [Line Items] | ' |
Commitments | $27,506 |
MMBTU Natual Gas Dollar Equivalent [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Commitments | 9,422 |
Pounds Of Flour Dollar Equivalent [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Commitments | 5,305 |
Capital Expenditures [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Aggregate purchase commitments | $1,273 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Contingencies (Details) (Settlement Agreement [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Settlement Agreement [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Maximum possible loss | ' | $1,775,000 |
Loss contingency accrual | $0 | $1,764,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Deferred tax assets, net | $1,214 | ' | $1,214 | ' | $11,300 |
Income tax expense (benefit) from release of valuation allowance | ' | ' | -1,215 | ' | ' |
Decrease in valuation allowance | ' | ' | 5,855 | ' | ' |
Effective tax rate | -23.10% | -0.30% | -6.60% | -0.20% | ' |
Release of valuation allowance | ' | ' | -1,215 | 0 | ' |
Income tax expense (benefit) | ($1,169) | $19 | ($1,002) | $44 | ' |
Property_and_Business_Interrup2
Property and Business Interruption Insurance Claims and Recoveries (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Business Interruption Loss [Line Items] | ' | ' | ' | ' |
Total insurance recoveries | $2,058 | ' | $2,308 | ' |
Insurance recoveries | 1,293 | 0 | 1,223 | 0 |
Interruption of business | ' | ' | ' | ' |
Business Interruption Loss [Line Items] | ' | ' | ' | ' |
Total insurance recoveries | 765 | ' | 925 | ' |
Insurance recoveries | 647 | ' | 597 | ' |
Interruption of business | Cost of Sales | ' | ' | ' | ' |
Business Interruption Loss [Line Items] | ' | ' | ' | ' |
Less: out-of-pocket expenses related to interruption of business in Cost of Sales | 118 | ' | 328 | ' |
Property damage from fire | ' | ' | ' | ' |
Business Interruption Loss [Line Items] | ' | ' | ' | ' |
Total insurance recoveries | 1,293 | ' | 1,383 | ' |
Insurance recoveries | 1,293 | ' | 1,223 | ' |
Property damage from fire | Insurance Recoveries | ' | ' | ' | ' |
Business Interruption Loss [Line Items] | ' | ' | ' | ' |
Less: Net book value of property loss in Insurance Recoveries | $0 | ' | $160 | ' |
Operating_Segments_Detail
Operating Segments (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Feb. 08, 2013 | Feb. 06, 2013 | Mar. 31, 2013 |
segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number of reportable segments | ' | 3 | ' |
Proceeds from sale of productive assets | $2,797 | ' | ' |
Gains (losses) on sales of assets | ' | ' | $1,406 |
Operating_Segments_Detail_Oper
Operating Segments (Detail) - Operating Profit (Loss) for Each Segment (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Net Sales to Customers | ' | ' | ' | ' | ||||
Net Sales to Customers | $77,515 | $80,171 | $237,078 | $245,970 | ||||
Depreciation and Amortization | ' | ' | ' | ' | ||||
Depreciation and Amortization | 3,093 | 3,004 | 9,202 | 8,955 | ||||
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | ' | ' | ||||
Income (Loss) from Continuing Operations before Income Taxes | 5,059 | -6,306 | 15,110 | -5,930 | ||||
Distillery Products [Member] | ' | ' | ' | ' | ||||
Net Sales to Customers | ' | ' | ' | ' | ||||
Net Sales to Customers | 63,700 | 66,059 | 194,035 | 200,775 | ||||
Depreciation and Amortization | ' | ' | ' | ' | ||||
Depreciation and Amortization | 2,133 | 2,064 | 6,334 | 6,102 | ||||
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | ' | ' | ||||
Income (Loss) from Continuing Operations before Income Taxes | 6,547 | -1,647 | 17,963 | 5,836 | ||||
Ingredient Solutions [Member] | ' | ' | ' | ' | ||||
Net Sales to Customers | ' | ' | ' | ' | ||||
Net Sales to Customers | 13,815 | 14,112 | 43,043 | 44,997 | ||||
Depreciation and Amortization | ' | ' | ' | ' | ||||
Depreciation and Amortization | 578 | 572 | 1,739 | 1,742 | ||||
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | ' | ' | ||||
Income (Loss) from Continuing Operations before Income Taxes | 1,082 | 1,279 | 2,828 | 3,944 | ||||
Other [Member] | ' | ' | ' | ' | ||||
Net Sales to Customers | ' | ' | ' | ' | ||||
Net Sales to Customers | 0 | [1] | 0 | [1] | 0 | [1] | 198 | [1] |
Depreciation and Amortization | ' | ' | ' | ' | ||||
Depreciation and Amortization | 0 | [1] | 0 | [1] | 0 | [1] | 21 | [1] |
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | ' | ' | ||||
Income (Loss) from Continuing Operations before Income Taxes | 0 | [1] | 0 | [1] | 0 | [1] | -90 | [1] |
Corporate [Member] | ' | ' | ' | ' | ||||
Depreciation and Amortization | ' | ' | ' | ' | ||||
Depreciation and Amortization | 382 | 368 | 1,129 | 1,090 | ||||
Income (Loss) from Continuing Operations before Income Taxes | ' | ' | ' | ' | ||||
Income (Loss) from Continuing Operations before Income Taxes | ($2,570) | ($5,938) | ($5,681) | ($15,620) | ||||
[1] | Significant assets from this segment were sold February 8, 2013, as previously described, and two reportable segments remain in 2014. |
Operating_Segments_Detail_Iden
Operating Segments (Detail) - Identifiable Assets for Each Segment (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Identifiable Assets | $149,109 | $151,329 | ||
Distillery Products [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Identifiable Assets | 95,052 | 97,875 | ||
Ingredient Solutions [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Identifiable Assets | 24,043 | 24,954 | ||
Other [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Identifiable Assets | 0 | [1] | 0 | [1] |
Corporate [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Identifiable Assets | $30,014 | $28,500 | ||
[1] | Significant assets from this segment were sold February 8, 2013, as previously described, and two reportable segments remain in 2014. |
Employee_and_NonEmployee_Benef2
Employee and Non-Employee Benefit Plans (Detail) - Net Periodic Benefit Cost (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Post Retirement Health Care And Life Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $14 | $32 | $58 | $96 |
Interest cost | 34 | 41 | 116 | 123 |
Amortization of prior service cost | -66 | -162 | -305 | -485 |
Amortization of net actuarial loss | 7 | 7 | 12 | 21 |
Prior service cost recognized due to current curtailment | 0 | 0 | -52 | 0 |
Total post-retirement benefit cost / (income) | -11 | -82 | -171 | -245 |
Pension Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Interest cost | 22 | 21 | 66 | 62 |
Expected return on plan assets | -26 | -29 | -78 | -86 |
Amortization of net actuarial loss | 5 | 17 | 15 | 50 |
Total post-retirement benefit cost / (income) | $1 | $9 | $3 | $26 |
Employee_and_NonEmployee_Benef3
Employee and Non-Employee Benefit Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Aug. 31, 2014 | Sep. 30, 2014 | 30-May-14 | 30-May-14 | Jun. 30, 2014 | Sep. 30, 2014 | 30-May-14 | Sep. 30, 2014 | Sep. 30, 2014 |
Post Retirement Health Care And Life Benefits [Member] | Post Retirement Health Care And Life Benefits [Member] | Post Retirement Health Care And Life Benefits [Member] | Post Retirement Health Care And Life Benefits [Member] | Pension Plan [Member] | Employee Equity Incentive Plan [Member] | Employee Equity Incentive Plan [Member] | Employee Equity Incentive Plan [Member] | Employee Stock Purchase Plan [Member] | Non-Employee Director Equity Incentive Plan [Member] | Non-Employee Director Equity Incentive Plan [Member] | Non-Employee Director Equity Incentive Plan [Member] | Minimum [Member] | Restricted Stock [Member] | |||||
Non-Employee Director Equity Incentive Plan [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Negative plan amendment | ' | ' | ' | ' | $919 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior service cost recognized due to current curtailment | ' | ' | ' | ' | 0 | 0 | -52 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income reclassification of defined benefit plan prior service cost and net actuarial loss | ' | -345 | -464 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss), reclassification of net actuarial loss from accumulated other comprehensive loss into pension benefit income | ' | 63 | 36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected cost of plan termination | ' | ' | ' | ' | ' | ' | ' | ' | 630 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined benefit plan, contributions by employer | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer contributions to 401 (k) | $26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 777,747 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 300,000 | ' | ' | 300,000 | ' | ' |
Grants in period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | ' | ' | ' | 16,360 | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | '3 years | ' | '1 year | ' |
Employee_and_NonEmployee_Benef4
Employee and Non-Employee Benefit Plans (Detail) - Reserved shares of Common Stock | 9 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total (shares) | 434,842 |
Stock options granted but not exercised [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock options granted but not exercised (shares) | 10,000 |
Restricted stock to non-employees (authorized but not granted) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock to employees, non-employees and executives (shares) | 20,493 |
Restricted stock to employees and executives (authorized but not granted) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock to employees, non-employees and executives (shares) | 404,349 |
Industrial_Revenue_Bond_Detail
Industrial Revenue Bond (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
Dec. 28, 2006 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ' | ' |
Real property tax abatement period | '10 years | ' |
Special assessment bond | $7,000,000 | ' |
Industrial revenue bonds balloon payment | ' | 7,000,000 |
Capital leases end of lease bargain purchase price | ' | 100 |
Municipal administrative fee | ' | 50,000 |
Industrial Revenue Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Municipal administrative fee payment period | ' | '10 years |
Accelerated Payment Terms [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Municipal administrative fee | ' | $50,000 |
Industrial Revenue Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate, stated percentage (percent) | 4.90% | ' |
Industrial_Revenue_Bond_Detail1
Industrial Revenue Bond (Detail) - Summary of Financial Assets and Liabilities that are Offset (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Gross Amounts Of Recognized Assets Liabilities [Member] | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Investment in bonds | $7,000 | $7,000 |
Capital lease obligation | -7,000 | -7,000 |
Gross Amounts Off Set In The Balance Sheet [Member] | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Investment in bonds | 7,000 | 7,000 |
Capital lease obligation | -7,000 | -7,000 |
Net Amounts Of Assets Liabilities Presented In The Balance Sheet [Member] | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Investment in bonds | 0 | 0 |
Capital lease obligation | $0 | $0 |
Severance_Costs_Detail
Severance Costs (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 03, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Severance [Member] | Severance [Member] | Severance [Member] | Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Severance Costs | $714 | ' | ' | ' | ' | ' |
Transition Costs | ' | 201 | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | 547 | 83 | 1,142 | 126 |
Provision for additional expense | ' | ' | 0 | 0 | 313 | 1 |
Payments and adjustments | ' | ' | -313 | -16 | -1,221 | -60 |
Balance at end of period | ' | ' | $234 | $67 | $234 | $67 |
Subsequent_Events_Details
Subsequent Events (Details) (Natural Disasters and Other Casualty Events [Member], Subsequent Event [Member], USD $) | 1 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
Natural Disasters and Other Casualty Events [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Temporary loss of production, period | '7 days |
Book value of damaged equipment | $617 |