Exhibit 99.1
GRANITE FALLS ENERGY, LLC
15045 HIGHWAY 23 SE• P.O. BOX 216• GRANITE FALLS, MN• 56241-0216
PHONE: 320/564-3100• FAX: 320/564-3190
December 14, 2007
Dear Member,
Granite Falls Energy, LLC (GFE) is a Limited Liability Company (LLC) taxed as a partnership, which means the income or loss of the company flows through to the individual owners of membership interests in proportion to their ownership interest. These amounts are reported to members on K-1 forms which will be mailed in the first half of February. The portion of company income or loss reflected on your K-1 forms must be reported on your personal individual income tax return. As you may be aware, GFE is changing its tax year from a fiscal year ending October 31 to the calendar year ending December 31. As a result of this change, you will be receiving two K-1 forms from GFE for 2007.
Since we are aware that the income or loss reported to you could impact your tax planning and other financial decisions prior to year end, we are providing thisESTIMATEof company taxable income for the fiscal year ending October 31, 2007 and the two month short period from November 1, 2007 to December 31, 2007. This ESTIMATE is not a guarantee of future results; it is only our prediction and involves numerous assumptions, risks and uncertainties*. Our actual results may differ.
TAXABLE INCOME:
Based on our preliminary financial results, we anticipate you may have approximately$545per membership unit (full year owners) of taxable income reported to you on your K-1 form for the 12-month fiscal year ending October 31, 2007, and approximately$65per membership unit on your K-1 form for the two-month short period from November 1, 2007 to December 31, 2007. If you owned your membership units or a portion of them for less than the entire fiscal year, your share of company income or loss will be pro-rated to show the amount for the portion of our fiscal year that you owned the units. Your K-1s will reflect any pro-ration based on a change in your unit ownership.
TAX CREDITS:
Your K-1 will also allocate to you your share of federal and state tax credits. We estimate this to be approximately$48per unit for the 12-month fiscal year ending October 31, 2007, and approximately$8per unit for the two month short period from November 1, 2007 to December 31, 2007.
We recommend you consult your tax advisor regarding this tax memo and any implications it may have on your individual tax and financial situation.
This ESTIMATE of taxable income allocation does NOT represent the amount of the cash distribution you can expect.
We have capital requirements, operational expenses and loan covenants that limit the amount of cash that will be available for distribution to members.
Sincerely,
Stacie Schuler
Chief Financial Officer
* This memo contains forward-looking statements that involve future events, our future performance and our expected future operations and actions. In some cases you can identify forward-looking statements by the use of words such as “may,” “should,” “anticipate,” “believe,” “expect,” “will,” “plan,” “future,” “intend,” “could,” “estimate,” “predict,” “hope,” “potential,” “continue,” or the negative of these terms or other similar expressions. These forward-looking statements are only our predictions and involve numerous assumptions, risks and uncertainties. Our actual results or actions may differ materially from these forward-looking statements for many reasons, including the following factors identified in our quarterly reports.
We are not under any duty to update the forward-looking statements contained in this memo. We cannot guarantee future results, levels of activity, performance or achievements. We caution you not to put undue reliance on any forward looking statements, which speak only as of the date of this memo. We qualify all of our forward-looking statements by these cautionary statements.
