x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
South Dakota Soybean Processors, LLC | ||
(Exact name of registrant as specified in its charter) |
South Dakota | 46-0462968 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||||||
100 Caspian Avenue; PO Box 500 Volga, South Dakota | 57071 | |||||||
(Address of Principal Executive Offices | (Zip Code) |
(605) 627-9240 | ||
(Registrant's telephone number, including area code) |
¨ Large Accelerated Filer | ¨ Accelerated Filer | x Non-Accelerated Filer | ¨ Smaller Reporting Company | ¨ Emerging Growth Company | ||||||||||
(do not check if a smaller reporting company) |
Page | |||||||||||
June 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
Assets | Assets | |||||||||||||||||
Current assets | Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 3,814,872 | $ | 624,681 | Cash and cash equivalents | $ | 3,833,044 | $ | 3,650,950 | |||||||||
Trade accounts receivable | 21,199,077 | 24,420,557 | Trade accounts receivable | 28,219,622 | 28,990,655 | |||||||||||||
Inventories | 58,781,838 | 44,470,052 | Inventories | 96,563,212 | 69,593,473 | |||||||||||||
Commodity derivative instruments | Commodity derivative instruments | 33,438,012 | 28,417,680 | |||||||||||||||
Margin deposits | 3,492,375 | 6,772,160 | Margin deposits | 0 | 6,018,001 | |||||||||||||
Prepaid expenses | 1,596,402 | 1,884,742 | Prepaid expenses | 2,081,924 | 2,093,622 | |||||||||||||
Total current assets | 88,884,564 | 78,172,192 | Total current assets | 164,135,814 | 138,764,381 | |||||||||||||
Property and equipment | 121,117,799 | 118,363,393 | Property and equipment | 123,875,225 | 122,195,099 | |||||||||||||
Less accumulated depreciation | (56,074,844 | ) | (53,846,189 | ) | Less accumulated depreciation | (59,151,319) | (57,963,905) | |||||||||||
Total property and equipment, net | 65,042,955 | 64,517,204 | Total property and equipment, net | 64,723,906 | 64,231,194 | |||||||||||||
Other assets | Other assets | |||||||||||||||||
Investments in related parties | 8,331,703 | 7,873,727 | Investments in related parties | 9,327,890 | 9,327,890 | |||||||||||||
Investments in cooperatives | 1,539,293 | 1,562,098 | Investments in cooperatives | 1,559,800 | 1,539,293 | |||||||||||||
Right-of-use lease asset, net | 8,012,349 | 5,979,771 | Right-of-use lease asset, net | 11,285,215 | 11,960,289 | |||||||||||||
Total other assets | 17,883,345 | 15,415,596 | Total other assets | 22,172,905 | 22,827,472 | |||||||||||||
Total assets | $ | 171,810,864 | $ | 158,104,992 | Total assets | $ | 251,032,625 | $ | 225,823,047 |
March 31, 2021 | December 31, 2020 | ||||||||||
(Unaudited) | |||||||||||
Liabilities and Members' Equity | |||||||||||
Current liabilities | |||||||||||
Excess of outstanding checks over bank balance | $ | 13,487,522 | $ | 8,263,020 | |||||||
Current maturities of long-term debt | 4,000,000 | 0 | |||||||||
Note payable - seasonal loan | 37,283,162 | 0 | |||||||||
Current operating lease liabilities | 5,656,417 | 5,846,456 | |||||||||
Accounts payable | 1,645,652 | 1,506,779 | |||||||||
Accrued commodity purchases | 30,984,546 | 44,962,904 | |||||||||
Commodity derivative instruments | 36,324,870 | 41,940,744 | |||||||||
Margin deposit deficit | 3,522,041 | 0 | |||||||||
Accrued expenses | 2,634,875 | 3,083,591 | |||||||||
Accrued interest | 119,285 | 40,564 | |||||||||
Deferred liabilities - current | 2,566,578 | 1,728,407 | |||||||||
Total current liabilities | 138,224,948 | 107,372,465 | |||||||||
Long-term liabilities | |||||||||||
Long-term debt, net of current maturities and unamortized debt issuance costs | 15,987,797 | 17,499,868 | |||||||||
Long-term operating lease liabilities | 5,628,798 | 6,113,834 | |||||||||
Total long-term liabilities | 21,616,595 | 23,613,702 | |||||||||
Commitments and contingencies (Notes 5, 6, 7, and 12) | 0 | 0 | |||||||||
Members' equity | |||||||||||
Class A Units, no par value, 30,419,000 units issued and outstanding at March 31, 2021 and December 31, 2020 | 91,191,082 | 94,836,880 | |||||||||
Total liabilities and members' equity | $ | 251,032,625 | $ | 225,823,047 |
June 30, 2020 | December 31, 2019 | ||||||
(Unaudited) | |||||||
Liabilities and Members' Equity | |||||||
Current liabilities | |||||||
Excess of outstanding checks over bank balance | $ | 4,804,508 | $ | 8,164,752 | |||
Current maturities of long-term debt | 4,534,595 | 4,603,342 | |||||
Note payable - seasonal loan | 13,154,794 | 1,743,029 | |||||
Current operating lease liabilities | 5,569,687 | 2,663,967 | |||||
Accounts payable | 2,084,334 | 4,904,963 | |||||
Accrued commodity purchases | 30,204,052 | 31,346,533 | |||||
Accrued expenses | 2,912,028 | 2,900,118 | |||||
Accrued interest | 85,664 | 74,770 | |||||
Deferred liabilities - current | 388,449 | 448,458 | |||||
Total current liabilities | 63,738,111 | 56,849,932 | |||||
Long-term liabilities | |||||||
Long-term debt, net of current maturities and unamortized debt issuance costs | 20,665,241 | 11,991,923 | |||||
Long-term operating lease liabilities | 2,442,662 | 3,315,804 | |||||
Total long-term liabilities | 23,107,903 | 15,307,727 | |||||
Commitments and contingencies (Notes 6, 7, 8, and 13) | |||||||
Members' equity | |||||||
Class A Units, no par value, 30,419,000 units issued and outstanding at June 30, 2020 and December 31, 2019 | 84,964,850 | 85,947,333 | |||||
Total liabilities and members' equity | $ | 171,810,864 | $ | 158,104,992 |
2021 | 2020 | |||||||||||||||||||||||||
Net revenues | $ | 123,627,541 | $ | 98,723,412 | ||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||
Cost of product sold | 99,264,660 | 80,200,506 | ||||||||||||||||||||||||
Production | 7,363,387 | 7,423,370 | ||||||||||||||||||||||||
Freight and rail | 10,198,191 | 9,211,835 | ||||||||||||||||||||||||
Brokerage fees | 172,092 | 163,238 | ||||||||||||||||||||||||
Total cost of revenues | 116,998,330 | 96,998,949 | ||||||||||||||||||||||||
Gross profit (loss) | 6,629,211 | 1,724,463 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Administration | 1,117,842 | 1,024,729 | ||||||||||||||||||||||||
Operating income (loss) | 5,511,369 | 699,734 | ||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest expense | (317,152) | (349,987) | ||||||||||||||||||||||||
Other non-operating income (expense) | 224,728 | (322,217) | ||||||||||||||||||||||||
Patronage dividend income | 365,147 | 195,553 | ||||||||||||||||||||||||
Total other income (expense) | 272,723 | (476,651) | ||||||||||||||||||||||||
Income (loss) before income taxes | 5,784,092 | 223,083 | ||||||||||||||||||||||||
Income tax benefit (expense) | 0 | 0 | ||||||||||||||||||||||||
Net income (loss) | $ | 5,784,092 | $ | 223,083 | ||||||||||||||||||||||
Basic and diluted earnings (loss) per capital unit | $ | 0.19 | $ | 0.01 | ||||||||||||||||||||||
Weighted average number of capital units outstanding for calculation of basic and diluted earnings (loss) per capital unit | 30,419,000 | 30,419,000 |
�� | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net revenues | $ | 93,268,093 | $ | 100,331,589 | $ | 191,991,505 | $ | 192,298,396 | ||||||||
Cost of revenues: | ||||||||||||||||
Cost of product sold | 69,602,276 | 76,330,505 | 149,802,782 | 147,679,055 | ||||||||||||
Production | 7,406,999 | 6,821,032 | 14,830,369 | 13,694,012 | ||||||||||||
Freight and rail | 9,431,150 | 10,143,954 | 18,642,985 | 18,259,881 | ||||||||||||
Brokerage fees | 154,818 | 159,151 | 318,056 | 329,087 | ||||||||||||
Total cost of revenues | 86,595,243 | 93,454,642 | 183,594,192 | 179,962,035 | ||||||||||||
Gross profit (loss) | 6,672,850 | 6,876,947 | 8,397,313 | 12,336,361 | ||||||||||||
Operating expenses: | ||||||||||||||||
Administration | 898,767 | 927,314 | 1,923,496 | 1,932,515 | ||||||||||||
Operating income (loss) | 5,774,083 | 5,949,633 | 6,473,817 | 10,403,846 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (308,354 | ) | (267,730 | ) | (658,341 | ) | (460,289 | ) | ||||||||
Other non-operating income (expense) | 20,885 | 100,099 | (301,332 | ) | 419,466 | |||||||||||
Patronage dividend income | — | — | 195,553 | 169,456 | ||||||||||||
Total other income (expense) | (287,469 | ) | (167,631 | ) | (764,120 | ) | 128,633 | |||||||||
Income (loss) before income taxes | 5,486,614 | 5,782,002 | 5,709,697 | 10,532,479 | ||||||||||||
Income tax benefit (expense) | — | — | — | (600 | ) | |||||||||||
Net income (loss) | $ | 5,486,614 | $ | 5,782,002 | $ | 5,709,697 | $ | 10,531,879 | ||||||||
Basic and diluted earnings (loss) per capital unit | $ | 0.18 | $ | 0.19 | $ | 0.19 | $ | 0.35 | ||||||||
Weighted average number of capital units outstanding for calculation of basic and diluted earnings (loss) per capital unit | 30,419,000 | 30,419,000 | 30,419,000 | 30,419,000 |
Class A Units | |||||||||||||||||
Class A Units | Units | Amount | |||||||||||||||
Units | Amount | ||||||||||||||||
Balances, December 31, 2018 | 30,419,000 | $ | 90,177,248 | ||||||||||||||
Net income | — | 10,531,879 | |||||||||||||||
Distribution to members | — | (15,209,500 | ) | ||||||||||||||
Balances, June 30, 2019 | 30,419,000 | $ | 85,499,627 | ||||||||||||||
Balances, December 31, 2019 | 30,419,000 | $ | 85,947,333 | Balances, December 31, 2019 | 30,419,000 | $ | 85,947,333 | ||||||||||
Net income | — | 5,709,697 | Net income | — | 223,083 | ||||||||||||
Distribution to members | — | (6,692,180 | ) | Distribution to members | — | (6,692,180) | |||||||||||
Balances, June 30, 2020 | 30,419,000 | $ | 84,964,850 | ||||||||||||||
Balances, March 31, 2020 | Balances, March 31, 2020 | 30,419,000 | $ | 79,478,236 | |||||||||||||
Balances, December 31, 2020 | Balances, December 31, 2020 | 30,419,000 | $ | 94,836,880 | |||||||||||||
Net income | Net income | — | 5,784,092 | ||||||||||||||
Distribution to members | Distribution to members | — | (9,429,890) | ||||||||||||||
Balances, March 31, 2021 | Balances, March 31, 2021 | 30,419,000 | $ | 91,191,082 |
2020 | 2019 | 2021 | 2020 | |||||||||||||||
Operating activities | Operating activities | |||||||||||||||||
Net income (loss) | $ | 5,709,697 | $ | 10,531,879 | Net income (loss) | $ | 5,784,092 | $ | 223,083 | |||||||||
Charges and credits to net income not affecting cash: | Charges and credits to net income not affecting cash: | |||||||||||||||||
Depreciation and amortization | 2,433,310 | 2,131,494 | Depreciation and amortization | 1,270,770 | 1,188,309 | |||||||||||||
Net (gain) loss recognized on derivative activities | (6,851,092 | ) | (898,101 | ) | Net (gain) loss recognized on derivative activities | 5,816,260 | (5,138,750) | |||||||||||
Gain on sales of property and equipment | — | (6,687 | ) | Gain on sales of property and equipment | 1,905 | 0 | ||||||||||||
Loss on equity method investment | — | 99,489 | ||||||||||||||||
Non-cash patronage dividends | (43,405 | ) | (42,364 | ) | Non-cash patronage dividends | (75,411) | (43,405) | |||||||||||
Forgiveness of Paycheck Protection Program loan | Forgiveness of Paycheck Protection Program loan | (10,000) | 0 | |||||||||||||||
Change in current assets and liabilities | (4,725,051 | ) | (12,731,135 | ) | Change in current assets and liabilities | (46,470,743) | (10,946,028) | |||||||||||
Net cash provided by (used for) operating activities | (3,476,541 | ) | (915,425 | ) | Net cash provided by (used for) operating activities | (33,683,127) | (14,716,791) | |||||||||||
Investing activities | Investing activities | |||||||||||||||||
Purchase of investments | (404,329 | ) | — | Purchase of investments | 0 | (404,329) | ||||||||||||
Retirement of patronage dividends | 66,210 | 32,288 | Retirement of patronage dividends | 54,904 | 66,210 | |||||||||||||
Proceeds from sales of property and equipment | — | 64,800 | ||||||||||||||||
Purchase of property and equipment | (2,956,848 | ) | (3,207,332 | ) | Purchase of property and equipment | (1,764,167) | (1,864,856) | |||||||||||
Net cash provided by (used for) investing activities | (3,294,967 | ) | (3,110,244 | ) | Net cash provided by (used for) investing activities | (1,709,263) | (2,202,975) | |||||||||||
Financing activities | Financing activities | |||||||||||||||||
Change in excess of outstanding checks over bank balances | (3,360,244 | ) | 2,215,874 | Change in excess of outstanding checks over bank balances | 5,224,502 | (2,615,647) | ||||||||||||
Net proceeds (payments) from seasonal borrowings | 11,411,765 | — | Net proceeds (payments) from seasonal borrowings | 37,283,162 | 17,972,775 | |||||||||||||
Distributions to members | (6,692,180 | ) | (15,209,500 | ) | Distributions to members | (9,429,890) | (6,692,180) | |||||||||||
Payments for debt issue costs | (10,000 | ) | — | Payments for debt issue costs | 0 | (10,000) | ||||||||||||
Proceeds from long-term debt | 11,215,700 | 44,091,300 | Proceeds from long-term debt | 11,839,877 | 10,000,000 | |||||||||||||
Principal payments on long-term debt | (2,603,342 | ) | (33,267,415 | ) | Principal payments on long-term debt | (9,343,167) | (2,000,000) | |||||||||||
Net cash provided by (used for) financing activities | 9,961,699 | (2,169,741 | ) | Net cash provided by (used for) financing activities | 35,574,484 | 16,654,948 | ||||||||||||
Net change in cash and cash equivalents | 3,190,191 | (6,195,410 | ) | Net change in cash and cash equivalents | 182,094 | (264,818) | ||||||||||||
Cash and cash equivalents, beginning of period | 624,681 | 7,197,082 | Cash and cash equivalents, beginning of period | 3,650,950 | 624,681 | |||||||||||||
Cash and cash equivalents, end of period | $ | 3,814,872 | $ | 1,001,672 | Cash and cash equivalents, end of period | $ | 3,833,044 | $ | 359,863 | |||||||||
Supplemental disclosures of cash flow information | Supplemental disclosures of cash flow information | |||||||||||||||||
Cash paid during the period for: | Cash paid during the period for: | |||||||||||||||||
Interest | $ | 647,447 | $ | 419,781 | Interest | $ | 238,431 | $ | 300,888 | |||||||||
Income taxes | $ | — | $ | — | Income taxes | $ | 0 | $ | 0 | |||||||||
Noncash investing activities: | ||||||||||||||||||
Soybean meal contributed as investment in related party | $ | 53,647 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Soybean meal and hulls | $ | 61,332,072 | $ | 64,538,123 | $ | 124,024,952 | $ | 124,200,926 | Soybean meal and hulls | $ | 79,223,026 | $ | 62,692,880 | |||||||||||||||||||||||||
Soybean oil and oil byproducts | 31,936,021 | 35,793,466 | 67,966,553 | 68,097,470 | Soybean oil and oil byproducts | 44,404,515 | 36,030,532 | |||||||||||||||||||||||||||||||
Totals | $ | 93,268,093 | $ | 100,331,589 | $ | 191,991,505 | $ | 192,298,396 | Totals | $ | 123,627,541 | $ | 98,723,412 |
June 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | |||||||||||||||
Past due: | Past due: | |||||||||||||||||
Less than 30 days past due | $ | 3,385,867 | $ | 4,306,064 | Less than 30 days past due | $ | 4,022,668 | $ | 4,827,150 | |||||||||
30-60 days past due | 282,520 | 341,956 | 30-60 days past due | 424,009 | 85,177 | |||||||||||||
60-90 days past due | 87,905 | 10,302 | 60-90 days past due | 0 | 11,366 | |||||||||||||
Greater than 90 days past due | 18,660 | 14,162 | Greater than 90 days past due | 20 | 43,524 | |||||||||||||
Total past due | 3,774,952 | 4,672,484 | Total past due | 4,446,697 | 4,967,217 | |||||||||||||
Current | 17,424,125 | 19,748,073 | Current | 23,772,925 | 24,023,438 | |||||||||||||
Totals | $ | 21,199,077 | $ | 24,420,557 | Totals | $ | 28,219,622 | $ | 28,990,655 |
June 30, 2020 | December 31, 2019 | ||||||
Finished goods | $ | 32,212,243 | $ | 26,559,194 | |||
Raw materials | 26,201,294 | 17,641,335 | |||||
Supplies & miscellaneous | 368,301 | 269,523 | |||||
Totals | $ | 58,781,838 | $ | 44,470,052 |
March 31, 2021 | December 31, 2020 | ||||||||||
Finished goods | $ | 48,286,682 | $ | 35,502,780 | |||||||
Raw materials | 48,025,892 | 33,824,265 | |||||||||
Supplies & miscellaneous | 250,638 | 266,428 | |||||||||
Totals | $ | 96,563,212 | $ | 69,593,473 |
2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Cost | Accumulated Depreciation | Net | Net | Cost | Accumulated Depreciation | Net | Net | |||||||||||||||||||||||||||||||
Land | $ | 516,326 | $ | — | $ | 516,326 | $ | 516,326 | Land | $ | 516,326 | $ | 0 | $ | 516,326 | $ | 516,326 | |||||||||||||||||||||
Land improvements | 2,353,237 | (686,430 | ) | 1,666,807 | 1,545,088 | Land improvements | 2,406,915 | (797,325) | 1,609,590 | 1,647,052 | ||||||||||||||||||||||||||||
Buildings and improvements | 22,369,519 | (9,768,446 | ) | 12,601,073 | 12,807,844 | Buildings and improvements | 22,443,026 | (10,193,289) | 12,249,737 | 12,391,726 | ||||||||||||||||||||||||||||
Machinery and equipment | 85,386,613 | (44,471,445 | ) | 40,915,168 | 41,480,121 | Machinery and equipment | 88,433,579 | (46,888,448) | 41,545,131 | 41,674,080 | ||||||||||||||||||||||||||||
Railroad cars | 5,777,579 | (88,739 | ) | 5,688,840 | 1,207,545 | Railroad cars | 5,852,292 | (177,270) | 5,675,022 | 5,704,283 | ||||||||||||||||||||||||||||
Company vehicles | 146,754 | (118,095 | ) | 28,659 | 36,032 | Company vehicles | 151,682 | (96,243) | 55,439 | 59,613 | ||||||||||||||||||||||||||||
Furniture and fixtures | 1,363,744 | (941,689 | ) | 422,055 | 459,153 | Furniture and fixtures | 1,387,880 | (998,744) | 389,136 | 408,288 | ||||||||||||||||||||||||||||
Construction in progress | 3,204,027 | — | 3,204,027 | 6,465,095 | Construction in progress | 2,683,525 | 0 | 2,683,525 | 1,829,826 | |||||||||||||||||||||||||||||
Totals | $ | 121,117,799 | $ | (56,074,844 | ) | $ | 65,042,955 | $ | 64,517,204 | Totals | $ | 123,875,225 | $ | (59,151,319) | $ | 64,723,906 | $ | 64,231,194 |
June 30, 2020 | December 31, 2019 | ||||||
Revolving term loan from CoBank, interest at variable rates (2.63% and 4.24% at June 30, 2020 and December 31, 2019, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. | $ | 24,000,000 | $ | 16,000,000 | |||
Note payable to U.S. Small Business Authority, due in monthly principal and interest installments of $68,428, interest rate at 1.00%, unsecured. Note matures April 20, 2022. | 1,215,700 | — | |||||
Note payable to Brookings Regional Railroad Authority, due in annual principal and interest installments of $75,500, interest rate at 2.00%, secured by railroad track assets. Note matured June 1, 2020. | — | 603,342 | |||||
Total debt before debt issuance costs | 25,215,700 | 16,603,342 | |||||
Less current maturities | (4,534,595 | ) | (4,603,342 | ) | |||
Less debt issuance costs, net of amortization of $8,136 and $5,923 as of June 30, 2020 and December 31, 2019, respectively | (15,864 | ) | (8,077 | ) | |||
Total long-term debt | $ | 20,665,241 | $ | 11,991,923 |
March 31, 2021 | December 31, 2020 | ||||||||||
Revolving term loan from CoBank, interest at variable rates (2.56% and 2.60% at March 31, 2021 and December 31, 2020, respectively), secured by substantially all property and equipment. Loan matures September 20, 2023. | $ | 20,000,000 | $ | 17,503,291 | |||||||
Note payable to U.S. Small Business Authority, due in monthly principal and interest installments, interest rate at 1.00%, unsecured. Note matures July 20, 2022. | 0 | 10,000 | |||||||||
Total debt before debt issuance costs | 20,000,000 | 17,513,291 | |||||||||
Less current maturities | (4,000,000) | 0 | |||||||||
Less debt issuance costs, net of amortization of $11,797 and $10,577 as of March 31, 2021 and December 31, 2020, respectively | (12,203) | (13,423) | |||||||||
Total long-term debt | $ | 15,987,797 | $ | 17,499,868 |
2022 | $ | 4,000,000 | |||
2023 | 4,000,000 | ||||
2024 | 12,000,000 | ||||
Total | $ | 20,000,000 |
2021 | $ | 4,534,595 | |
2022 | 4,681,105 | ||
2023 | 4,000,000 | ||
2024 | 12,000,000 | ||
Total | $ | 25,215,700 |
Lessor | Quantity of Railcars | Commencement Date | Maturity Date | Monthly Payment | ||||||||||||||||||||||
American Railcar Leasing | 30 | 7/1/2015 | 6/30/2021 | $ | 30,780 | |||||||||||||||||||||
Andersons Railcar Leasing Co. | 10 | 7/1/2018 | 6/30/2023 | 5,000 | ||||||||||||||||||||||
Andersons Railcar Leasing Co. | 20 | 7/1/2019 | 6/30/2026 | 11,300 | ||||||||||||||||||||||
Farm Credit Leasing | 87 | 9/1/2020 | 8/31/2032 | 34,929 | ||||||||||||||||||||||
GATX Corporation | 14 | 7/1/2020 | 6/30/2024 | 4,200 | ||||||||||||||||||||||
Midwest Railcar Corporation | 64 | 1/1/2015 | 12/31/2021 | 27,200 | ||||||||||||||||||||||
Trinity Capital | 29 | 11/1/2020 | 10/31/2023 | 17,255 | ||||||||||||||||||||||
Trinity Capital | 20 | 11/1/2020 | 10/31/2023 | 11,900 | ||||||||||||||||||||||
Wells Fargo Rail | 112 | 8/1/2017 | 7/31/2022 | 52,557 |
Lessor | Quantity of Railcars | Commencement Date | Maturity Date | Monthly Payment | |||||||
American Railcar Leasing | 30 | 7/1/2015 | 6/30/2021 | $ | 30,780 | ||||||
Andersons Railcar Leasing Co. | 10 | 7/1/2018 | 6/30/2023 | 5,000 | |||||||
Andersons Railcar Leasing Co. | 20 | 7/1/2019 | 6/30/2026 | 11,300 | |||||||
GATX Corporation | 14 | 7/1/2020 | 6/30/2024 | 4,200 | |||||||
Midwest Railcar Corporation | 64 | 1/1/2015 | 12/31/2021 | 27,200 | |||||||
Trinity Capital | 88 | 8/1/2002 | 7/31/2020 | 33,704 | |||||||
Trinity Capital | 29 | 12/1/2015 | 11/30/2020 | 28,536 | |||||||
Trinity Capital | 20 | 10/1/2015 | 9/30/2020 | 13,600 | |||||||
Wells Fargo Rail | 112 | 8/1/2017 | 7/31/2022 | 52,557 | |||||||
Wells Fargo Rail | 107 | 1/1/2018 | 12/31/2022 | 35,845 | |||||||
Wells Fargo Rail | 7 | 1/1/2004 | 12/31/2021 | 2,926 | |||||||
Wells Fargo Rail | 15 | 1/1/2004 | 12/31/2021 | 5,850 | |||||||
Wells Fargo Rail | 8 | 1/1/2015 | 12/31/2021 | 3,600 | |||||||
524 | $ | 255,098 |
Lessor | Quantity of Railcars | Commencement Date | Maturity Date | Monthly Payment | ||||||||||||||||||||||
Wells Fargo Rail | 107 | 1/1/2018 | 12/31/2022 | 35,845 | ||||||||||||||||||||||
Wells Fargo Rail | 7 | 1/1/2004 | 12/31/2021 | 2,926 | ||||||||||||||||||||||
Wells Fargo Rail | 15 | 1/1/2004 | 12/31/2021 | 5,850 | ||||||||||||||||||||||
Wells Fargo Rail | 8 | 1/1/2015 | 12/31/2021 | 3,600 | ||||||||||||||||||||||
523 | $ | 243,342 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Cost of revenues - Freight and rail | $ | 740,705 | $ | 756,871 | $ | 1,523,915 | $ | 1,535,990 | Cost of revenues - Freight and rail | $ | 760,961 | $ | 783,210 | |||||||||||||||||||||||||
Cost of revenues - Production | 9,009 | 9,714 | 13,373 | 14,633 | Cost of revenues - Production | 7,608 | 4,364 | |||||||||||||||||||||||||||||||
Administration expenses | 2,385 | 3,005 | 5,702 | 6,009 | Administration expenses | 2,133 | 3,317 | |||||||||||||||||||||||||||||||
Total operating lease costs | $ | 752,099 | $ | 769,590 | $ | 1,542,990 | $ | 1,556,632 | Total operating lease costs | $ | 770,702 | $ | 790,891 |
2021 | 2020 | ||||||||||||||||||||||
Cash paid for amounts included in measurement of lease liabilities | $ | 740,385 | $ | 777,143 | |||||||||||||||||||
Supplemental non-cash information: | |||||||||||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 0 | $ | 3,300,000 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cash paid for amounts included in measurement of lease liabilities | $ | 777,143 | $ | 742,911 | $ | 1,554,286 | $ | 1,485,822 | |||||||
Supplemental non-cash information: | |||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 185,750 | $ | 796,358 | $ | 3,485,750 | $ | 796,358 |
Weighted-average remaining lease-term - operating leases (in years) | 9.1 | ||||||||
Weighted-average discount rate - operating leases | % |
Railcars | Other | Total | ||||||||||||||||||
Twelve-month periods ended March 31: | ||||||||||||||||||||
2022 | $ | 2,471,800 | $ | 3,341,488 | $ | 5,813,288 | ||||||||||||||
2023 | 1,600,398 | 41,907 | 1,642,305 | |||||||||||||||||
2024 | 824,233 | 30,453 | 854,686 | |||||||||||||||||
2025 | 567,348 | 17,312 | 584,660 | |||||||||||||||||
2026 | 554,748 | 2,064 | 556,812 | |||||||||||||||||
Thereafter | 2,723,432 | 1,032 | 2,724,464 | |||||||||||||||||
Total lease payments | 8,741,959 | 3,434,256 | 12,176,215 | |||||||||||||||||
Less amount of lease payments representing interest | (880,321) | (10,679) | (891,000) | |||||||||||||||||
Total present value of lease payments | $ | 7,861,638 | $ | 3,423,577 | $ | 11,285,215 |
Railcars | Other | Total | ||||||||||
Twelve-month periods ended June 30: | ||||||||||||
2021 | $ | 2,315,724 | $ | 3,341,841 | $ | 5,657,565 | ||||||
2022 | 1,544,281 | 40,284 | 1,584,565 | |||||||||
2023 | 566,184 | 39,182 | 605,366 | |||||||||
2024 | 173,400 | 24,236 | 197,636 | |||||||||
2025 | 135,600 | 9,991 | 145,591 | |||||||||
Thereafter | 148,200 | — | 148,200 | |||||||||
Total lease payments | 4,883,389 | 3,455,534 | 8,338,923 | |||||||||
Less amount of lease payments representing interest | (311,842 | ) | (14,732 | ) | (326,574 | ) | ||||||
Total present value of lease payments | $ | 4,571,547 | $ | 3,440,802 | $ | 8,012,349 |
As of June 30, 2020 | As of March 31, 2021 | |||||||||||||||||||||||||
Balance Sheet Classification | Asset Derivatives | Liability Derivatives | Balance Sheet Classification | Asset Derivatives | Liability Derivatives | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Commodity contracts | Current Assets | $ | 8,388,189 | $ | 3,289,830 | Commodity contracts | Current Assets | $ | 33,384,458 | $ | 35,814,167 | |||||||||||||||
Foreign exchange contracts | Current Assets | 230,943 | 46,503 | Foreign exchange contracts | Current Assets | 53,554 | 22,594 | |||||||||||||||||||
Interest rate caps and floors | Current Liabilities | — | 814,625 | Interest rate caps and floors | Current Liabilities | 0 | 488,109 | |||||||||||||||||||
Totals | $ | 8,619,132 | $ | 4,150,958 | Totals | $ | 33,438,012 | $ | 36,324,870 |
As of December 31, 2019 | |||||||||
Balance Sheet Classification | Asset Derivatives | Liability Derivatives | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Commodity contracts | Current Assets | $ | 3,320,161 | $ | 8,930,683 | ||||
Foreign exchange contracts | Current Assets | 29,696 | 27,582 | ||||||
Interest rate caps and floors | Current Liabilities | — | 347,520 | ||||||
Totals | $ | 3,349,857 | $ | 9,305,785 |
As of December 31, 2020 | |||||||||||||||||
Balance Sheet Classification | Asset Derivatives | Liability Derivatives | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Commodity contracts | Current Assets | $ | 28,365,908 | $ | 41,196,628 | ||||||||||||
Foreign exchange contracts | Current Assets | 50,979 | 48,539 | ||||||||||||||
Interest rate caps and floors | Current Liabilities | 793 | 695,577 | ||||||||||||||
Totals | $ | 28,417,680 | $ | 41,940,744 |
2021 | 2020 | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Commodity contracts | $ | (6,042,326) | $ | 5,626,229 | |||||||||||||||||||
Foreign exchange contracts | 19,226 | (67,997) | |||||||||||||||||||||
Interest rate swaps, caps and floors | 206,840 | (419,482) | |||||||||||||||||||||
Totals | $ | (5,816,260) | $ | 5,138,750 |
Net Gain (Loss) Recognized on Derivative Activities for the | Net Gain (Loss) Recognized on Derivative Activities for the | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts | $ | 1,504,942 | $ | 266,869 | $ | 7,131,171 | $ | 1,008,821 | |||||||
Foreign exchange contracts | 246,656 | 8,347 | 178,659 | 44,829 | |||||||||||
Interest rate swaps, caps and floors | (39,256 | ) | (125,483 | ) | (458,738 | ) | (155,549 | ) | |||||||
Totals | $ | 1,712,342 | $ | 149,733 | $ | 6,851,092 | $ | 898,101 |
Fair Value as of June 30, 2020 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets: | |||||||||||||||
Inventory | $ | 5,098,359 | $ | 53,230,827 | $ | — | $ | 58,329,186 | |||||||
Margin deposits (deficits) | $ | 3,492,375 | $ | — | $ | — | $ | 3,492,375 |
Fair Value as of December 31, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets: | |||||||||||||||
Inventory | $ | (5,610,521 | ) | $ | 49,717,733 | $ | — | $ | 44,107,212 | ||||||
Margin deposits | $ | 6,772,160 | $ | — | $ | — | $ | 6,772,160 |
Fair Value as of March 31, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Inventory | $ | 0 | $ | 96,049,664 | $ | 0 | $ | 96,049,664 | |||||||||||||||
Commodity derivative instruments | $ | 0 | $ | (2,886,858) | $ | 0 | $ | (2,886,858) | |||||||||||||||
Margin deposits (deficits) | $ | (3,522,041) | $ | 0 | $ | 0 | $ | (3,522,041) |
Fair Value as of December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Inventory | $ | 0 | $ | 69,127,700 | $ | 0 | $ | 69,127,700 | |||||||||||||||
Commodity derivative instruments | $ | 0 | $ | (13,523,064) | $ | 0 | $ | (13,523,064) | |||||||||||||||
Margin deposits | $ | 6,018,001 | $ | 0 | $ | 0 | $ | 6,018,001 |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | ||||||||||||||||||||||
$ | % of Revenue | $ | % of Revenue | ||||||||||||||||||||
Revenue | $ | 123,627,541 | 100.0 | $ | 98,723,412 | 100.0 | |||||||||||||||||
Cost of revenues | (116,998,330) | (94.6) | (96,998,949) | (98.3) | |||||||||||||||||||
Gross profit | 6,629,211 | 5.4 | 1,724,463 | 1.7 | |||||||||||||||||||
Operating expenses | (1,117,842) | (0.9) | (1,024,729) | (1.0) | |||||||||||||||||||
Interest expense | (317,152) | (0.3) | (349,987) | (0.4) | |||||||||||||||||||
Other non-operating income (expense) | 589,875 | 0.5 | (126,664) | (0.1) | |||||||||||||||||||
Net income | $ | 5,784,092 | 4.7 | $ | 223,083 | 0.2 |
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | ||||||||||||
$ | % Revenue | $ | % Revenue | ||||||||||
Revenue | $ | 93,268,093 | 100.0 | $ | 100,331,589 | 100.0 | |||||||
Cost of revenues | (86,595,243 | ) | (92.8 | ) | (93,454,642 | ) | (93.1 | ) | |||||
Operating expenses | (898,767 | ) | (1.0 | ) | (927,314 | ) | (0.9 | ) | |||||
Interest expense | (308,354 | ) | (0.3 | ) | (267,730 | ) | (0.3 | ) | |||||
Other non-operating income (expense) | 20,885 | — | 100,099 | 0.1 | |||||||||
Income tax benefit (expense) | — | — | — | — | |||||||||
Net income | $ | 5,486,614 | 5.9 | $ | 5,782,002 | 5.8 |
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | ||||||||||||
$ | % of Revenue | $ | % of Revenue | ||||||||||
Revenue | $ | 191,991,505 | 100.0 | $ | 192,298,396 | 100.0 | |||||||
Cost of revenues | (183,594,192 | ) | (95.6 | ) | (179,962,035 | ) | (93.6 | ) | |||||
Operating expenses | (1,923,496 | ) | (1.0 | ) | (1,932,515 | ) | (1.0 | ) | |||||
Interest expense | (658,341 | ) | (0.3 | ) | (460,289 | ) | (0.2 | ) | |||||
Other non-operating income (expense) | (105,779 | ) | (0.1 | ) | 588,922 | 0.3 | |||||||
Income tax benefit (expense) | — | — | (600 | ) | — | ||||||||
Net income | $ | 5,709,697 | 3.0 | $ | 10,531,879 | 5.5 |
2020 | 2019 | 2021 | 2020 | |||||||||||||||
Net cash provided by (used for) operating activities | $ | (3,476,541 | ) | $ | (915,425 | ) | Net cash provided by (used for) operating activities | $ | (33,683,127) | $ | (14,716,791) | |||||||
Net cash provided by (used for) investing activities | (3,294,967 | ) | (3,110,244 | ) | Net cash provided by (used for) investing activities | (1,709,263) | (2,202,975) | |||||||||||
Net cash provided by (used for) financing activities | 9,961,699 | (2,169,741 | ) | Net cash provided by (used for) financing activities | 35,574,484 | 16,654,948 |
Payment due by period | ||||||||||||||||||||||||||||||||
CONTRACTUAL OBLIGATIONS | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Long-Term Debt Obligations (1) | $ | 21,145,000 | $ | 4,495,000 | $ | 16,650,000 | $ | — | $ | — | ||||||||||||||||||||||
Operating Lease Obligations | 12,176,000 | 5,813,000 | 2,497,000 | 1,141,000 | 2,725,000 | |||||||||||||||||||||||||||
Totals | $ | 33,321,000 | $ | 10,308,000 | $ | 19,147,000 | $ | 1,141,000 | $ | 2,725,000 |
Payment due by period | ||||||||||||||||||||
CONTRACTUAL OBLIGATIONS | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-Term Debt Obligations (1) | $ | 26,931,000 | $ | 5,152,000 | $ | 9,599,000 | $ | 12,180,000 | $ | — | ||||||||||
Operating Lease Obligations | 8,339,000 | 5,658,000 | 2,190,000 | 343,000 | 148,000 | |||||||||||||||
Totals | $ | 35,270,000 | $ | 10,810,000 | $ | 11,789,000 | $ | 12,523,000 | $ | 148,000 |
Exhibit Number | Description | |||||||
3.1(i) | ||||||||
3.1(ii) | ||||||||
3.1(iii) | ||||||||
4.1 | ||||||||
10.1 | ||||||||
10.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 |
SOUTH DAKOTA SOYBEAN PROCESSORS, LLC | |||||||||||
Dated: | By | /s/ Thomas Kersting | |||||||||
Thomas Kersting, Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Dated: | By | /s/ Mark Hyde | |||||||||
Mark Hyde, Chief Financial Officer | |||||||||||
(Principal Financial Officer) |