Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Dec. 20, 2019 | Apr. 30, 2019 | |
Entity Information [Line Items] | |||
Entity Registrant Name | GOLDEN GRAIN ENERGY, LLC | ||
Entity Central Index Key | 0001206942 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 19,873,000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false |
Balance Sheet
Balance Sheet - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Current Assets | ||
Cash and equivalents | $ 15,937,266 | $ 9,322,805 |
Marketable Securities | 870,706 | 10,559,242 |
Accounts receivable | 2,509,938 | 1,085,581 |
Other receivables | 215,981 | 3,784,114 |
Derivative instruments | 1,115,525 | 804,952 |
Inventory | 8,534,358 | 6,876,956 |
Prepaid expenses and other | 2,909,651 | 2,730,444 |
Total current assets | 32,093,425 | 35,164,094 |
Property and Equipment | ||
Land and land improvements | 14,319,211 | 12,961,713 |
Building and grounds | 30,891,090 | 31,319,540 |
Grain handling equipment | 16,038,202 | 16,046,157 |
Office equipment | 458,385 | 275,086 |
Plant and process equipment | 121,636,606 | 108,786,485 |
Construction in progress | 5,038,278 | 12,887,773 |
Gross property and equipment | 188,381,772 | 182,276,754 |
Less accumulated depreciation | 116,292,967 | 108,397,948 |
Net property and equipment | 72,088,805 | 73,878,806 |
Other Assets | ||
Investments | 25,416,170 | 25,719,513 |
Other assets | 431,983 | 509,866 |
Total other assets | 25,848,153 | 26,229,379 |
Total Assets | 130,030,383 | 135,272,279 |
Current Liabilities | ||
Accounts payable | 6,188,819 | 4,465,376 |
Accrued expenses | 2,827,791 | 2,801,329 |
Other current liabilities | 123,590 | 367,365 |
Total current liabilities | 9,140,200 | 7,634,070 |
Long-term Liabilities | ||
Deferred compensation | 469,040 | 536,414 |
Commitments and Contingencies | ||
Members' Equity (19,873,000 units issued and outstanding) | 120,421,143 | 127,101,795 |
Total Liabilities and Members’ Equity | $ 130,030,383 | $ 135,272,279 |
Balance Sheet Balance Sheet Par
Balance Sheet Balance Sheet Parenthetical - shares | Oct. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Members' Equity (19,873,000 units issued and outstanding) | 19,873,000 | 19,873,000 |
Statement of Operations
Statement of Operations - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Revenues | $ 203,793,847 | $ 179,501,244 | $ 213,455,567 |
Cost of Goods and Services Sold | 203,969,863 | 175,745,659 | 188,326,404 |
Insurance claim recoveries, net (see note 14) | 0 | 1,600,000 | 0 |
Gross Profit | (176,016) | 5,355,585 | 25,129,163 |
Operating Expenses | 3,706,721 | 3,623,272 | 3,844,410 |
Operating Income | (3,882,737) | 1,732,313 | 21,284,753 |
Other Income (Expense) | |||
Other income | 238,140 | (643,461) | 655,000 |
Interest income (expense) | 215,995 | 18,672 | (18,638) |
Equity in net income of investments | 1,716,200 | 5,263,755 | 7,477,709 |
Total Other Income | 2,170,335 | 4,638,986 | 8,114,071 |
Net Income | $ (1,712,402) | $ 6,371,299 | $ 29,398,824 |
Basic & diluted net income per unit | $ (0.09) | $ 0.32 | $ 1.48 |
Weighted average units outstanding for the calculation of basic & diluted net income per unit | 19,873,000 | 19,873,000 | 19,873,000 |
Distribution Per Unit | $ 0.25 | $ 0.75 | $ 1.25 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net Income | $ (1,712,402) | $ 6,371,299 | $ 29,398,824 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 9,999,546 | 9,092,277 | 9,119,688 |
Unrealized (gain) loss on risk management & marketable securities | (686,080) | 71,059 | (465,112) |
Impairment of and loss on disposal of long-lived assets | 2,755,663 | 3,140 | 0 |
Amortization of deferred revenue | 0 | (93,443) | (163,884) |
Cancelation of note receivable | 0 | 599,421 | 0 |
Change in accretion amounts of interest on grant & note receivable | (2,326) | (188,138) | 18,979 |
Distributions (earnings) in excess of earnings (distributions) from investments | 303,343 | (710,373) | (549,280) |
Gain on insurance proceeds from involuntary conversion & business interruption | (183,739) | (3,000,000) | (489,852) |
Insurance From Business Interruption | 3,183,739 | ||
Deferred compensation expense | (67,374) | 58,531 | 122,260 |
Change in assets and liabilities | |||
Accounts receivable | (1,424,357) | 4,854,616 | 261,907 |
Inventory | (1,657,402) | (2,572,160) | 2,600,888 |
Prepaid expenses and other | 306,586 | (189,669) | (990,699) |
Accounts payable | 2,130,571 | (243,236) | (1,777,738) |
Accrued expenses | 26,462 | (628,570) | 458,085 |
Net cash provided by operating activities | 12,972,230 | 13,424,754 | 37,544,066 |
Cash Flows from Investing Activities | |||
Capital expenditures | (11,538,228) | (18,538,159) | (6,154,333) |
Proceeds from sale of equipment | 0 | 10,000 | 0 |
Insurance proceeds from involuntary conversion | 0 | 0 | 648,752 |
Purchase of marketable securities | (7,515) | (34,645) | (9,061,164) |
Proceeds from sale of marketable securities | 10,071,558 | 11,676,088 | 2,750,000 |
Purchase of investments | 0 | 0 | (15,000) |
Net cash (used in) investing activities | (1,474,185) | (6,886,716) | (11,831,745) |
Cash Flows from Financing Activities | |||
Distributions to members | (4,968,250) | (14,904,750) | (24,841,250) |
Refund on utility right costs | 0 | 0 | 30,668 |
Payments received on grant receivable | 84,666 | 171,330 | 84,258 |
Net cash (used in) financing activities | (4,883,584) | (14,733,420) | (24,726,324) |
Net Increase (Decrease) in Cash and Equivalents | 6,614,461 | (8,195,382) | 985,997 |
Cash and Equivalents – Beginning of Period | 9,322,805 | 17,518,187 | 16,532,190 |
Cash and Equivalents – End of Period | 15,937,266 | 9,322,805 | 17,518,187 |
Supplemental Cash Flow Information | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 51,177 | 56,609 | 51,157 |
Supplemental Disclosure of Noncash Operating & Investing Activities | |||
Accounts Payable related to construction in process | $ 897,808 | $ 1,304,936 | $ 421,903 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity | USD ($) |
Stockholders' Equity Attributable to Parent at Oct. 31, 2016 | $ 131,077,672 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | (24,841,250) |
Net Income | 29,398,824 |
Stockholders' Equity Attributable to Parent at Oct. 31, 2017 | 135,635,246 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | (14,904,750) |
Net Income | 6,371,299 |
Stockholders' Equity Attributable to Parent at Oct. 31, 2018 | 127,101,795 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | (4,968,250) |
Net Income | (1,712,402) |
Stockholders' Equity Attributable to Parent at Oct. 31, 2019 | $ 120,421,143 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Members' Equity Parenthetical - $ / shares | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Partners' Capital, Distribution Amount Per Share | $ 0.25 | $ 0.75 | $ 1.25 |
Partners' Capital Account, Units | 19,873,000 | 19,873,000 | 19,873,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Golden Grain Energy, LLC ("Golden Grain Energy" and the "Company") is an approximately 120 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics. Organization Golden Grain Energy is organized as an Iowa limited liability company. The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Cash and Equivalents The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments, that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term on the Balance Sheet, based on contractual maturity date and are stated at cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Marketable securities consisted of mutual funds and overnight money market accounts invested in intermediate-term municipal and government bonds. For the periods ended October 31, 2019 and 2018 , there were no other-than-temporary impairments recognized. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income. The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income as follows: Year Ended October 31, 2019 2018 2017 Net earnings (loss) on marketable securities $ 316,000 $ (135,000 ) $ 183,000 Marketable Securities As of Cost Fair Market Value October 31, 2019 $ 767,000 $ 871,000 October 31, 2018 10,857,000 10,559,000 Accounts Receivable Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. Investments The Company has less than a 20% investment interest in five companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's statement of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. Distributions or dividends received in excess of the carrying value are recognized as income in the statement of operations. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. The fiscal years of Renewable Products Marketing Group, LLC (RPMG) and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC, Homeland Energy Solutions, LLC and Lawrenceville Tank, LLC, end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's statement of operations for the period ended October 31, 2019 , for all companies, is based on the investee's results for the twelve month period ended September 30 of each year. Note Receivable The Company carried a note receivable from an unrelated party with a balance of approximately $599,000 as of October 31, 2017, included in other assets. This balance included the original face value plus accrued interest. During 2018, the Company deemed the likelihood of collecting on the note receivable remote and wrote-off the entire balance, which is included in other expense on the statement of operations for the period ended October 31, 2018 . Revenue and Cost Recognition In the first quarter of 2019, the Company adopted Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers (Topic 606). Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and with consideration of short-term nature of customer payments, the Company has adopted the practical expedient related to the financing component of the contract. The Company applied the five-step method outlined in the ASU to all contracts with customers and elected the modified retrospective implementation method. The Company generally has a single performance obligation in its arrangements with customers. The Company believes for its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Adopting the practical expedient for contract costs, the Company expenses contract costs when incurred because the amortization period would have been less than one year. The implementation of the new standard does not have any material impact on the measurement or recognition of revenue of prior periods, however additional disclosures have been added in accordance with the ASU. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. The principal activities which we generate revenue include: sales of ethanol, sales of distiller grains and sales of corn oil. All revenue recognized in the statement of operations is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 6. Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. Based upon the timing of the transfer of control of our products to our customers, there are no contract assets or liabilities as of October 31, 2019 . Inventory Inventories are generally valued at the lower of weighted average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. Property & Equipment Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 and 40 years. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require a long-lived asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. During the year ended October 31, 2019, the Company identified idled property with a net book value of approximately $2,608,000 . The fair value of this asset group was considered to be minimal and the Company recorded an impairment loss of this full value, including in cost of goods sold for the year ended October 31, 2019. Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their pro rata share of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. Investment in commodities contracts, derivative instruments and hedging activities The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company occasionally also enters into derivative contracts to hedge its exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. Net earnings (loss) per unit Basic and diluted earnings (loss) per unit are computed using the weighted-average number of Class A and B units outstanding during the period. Environmental liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability has been recorded as of October 31, 2019 , 2018 or 2017 for environmental liabilities. Incentive Compensation Plan The Company has an incentive compensation plan for certain employees equal to 1% of net income. Awards pursuant to the incentive compensation plan are paid in cash after the Company's net income is determined for each fiscal year. Awards made pursuant to the plan are immediately vested and paid. Fair Value Financial instruments include cash and equivalents, marketable securities, receivables, accounts payable, accrued expenses and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices, as disclosed in Note 8. The fair value, determined using level 3 inputs, of all other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the 2019 fiscal year , ethanol sales accounted for approximately 79% of total revenue, distiller grains sales accounted for approximately 17% of total revenue and corn oil sales accounted for approximately 4% of total revenue while corn costs averaged approximately 75% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. Recent Accounting Pronouncements The Company is currently evaluating the following new accounting pronouncements and their potential impact, if any, on our financial statements: In February 2016, FASB issued ASU No. 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for the Company on November 1, 2019, with early adoption permitted. The Company will adopt the new standard on its effective date. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We expect to use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before November 1, 2019. On adoption, we currently expect to recognize additional operating liabilities of approximately $2.9 million , with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The new standard also provides practical expedients for an entity's ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all of our leases. In August 2018, FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 changes some of the disclosure requirements related to fair value measurements related to the Level 1, 2 and 3 investments. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and for interim periods within that fiscal year. The Company is currently evaluating the impact of its pending adoption of the new standard on the financial statements. Reclassification Certain items in the statements of cash flows for the years ended October 31, 2017 have been reclassified to conform to the presentation as of and for the year ended October 31, 2019. The changes do not affect net cash flow but were changed to agree with the classifications used in the October 31, 2019 financial statements. |
Inventory
Inventory | 12 Months Ended |
Oct. 31, 2019 | |
Inventory [Abstract] | |
Inventory | INVENTORY Inventory consisted of the following as of October 31, 2019 and October 31, 2018 : October 31, 2019 October 31, 2018 Raw Materials $ 4,259,459 $ 2,859,081 Work in Process 1,877,354 1,232,248 Finished Goods 2,397,545 2,785,627 Totals $ 8,534,358 $ 6,876,956 |
Bank Financing
Bank Financing | 12 Months Ended |
Oct. 31, 2019 | |
Bank Financing [Abstract] | |
Bank Financing | BANK FINANCING The Company has entered into a master loan agreement with Farm Credit Services of America (FLCA) which includes revolving term loans with original maximum borrowings of $35 million and which currently has availability of $10 million and matures on February 1, 2020. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR ( 4.95% as of October 31, 2019 ). The borrowings are secured by substantially all the assets of the Company. The credit agreements are subject to covenants, including requiring the Company to maintain various financial ratios, as well as certain distribution limitations. As of October 31, 2019 , the Company was in compliance with all of the loan covenants. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of any outstanding principal balances on the loans and/or imposition of fees and penalties. As of October 31, 2019 and 2018, the Company had no outstanding borrowings. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Oct. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company purchased corn and materials from employees, members of its Board of Directors or Risk Management Committee that own or manage elevators and construction companies (See Note 6). The Company also purchased ingredients from RPMG. Purchases during the fiscal years ended October 31, 2019, 2018 and 2017 totaled approximately $40,569,000 , $41,478,000 and $33,317,000 , respectively. As of October 31, 2019 and 2018 , the amounts owed to related parties was approximately $547,000 and $420,000 , respectively (See Note 6). |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Oct. 31, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company had a deferred phantom unit compensation plan for certain employees equal to 1% of net income implemented during its fiscal year ended October 31, 2014. Currently, the Company has a cash bonus compensation plan which is paid shortly after the fiscal year in which the cash bonus is earned. During the fiscal years ended October 31, 2019 , 2018 and 2017 , the Company recorded compensation expense related to the prior deferred phantom unit compensation plan of approximately none , $59,000 and $122,000 , respectively. As of October 31, 2019 and 2018 , the Company had a liability of approximately $469,000 and $536,000 outstanding as deferred compensation, respectively, and had no additional expense to be recognized as future compensation expense as all units were fully vested as of October 31, 2019 . The Company has a retirement plan which provides retirement savings options for all eligible employees. Employees meeting certain eligibility requirements can participate in the plan. The Company makes a matching contribution based on the participants' eligible wages. The Company made matching contributions of approximately $150,000 , $154,000 and $118,000 during the years ended October 31, 2019 , 2018 and 2017 , respectively. |
Commitments, Contingencies and
Commitments, Contingencies and Agreements | 12 Months Ended |
Oct. 31, 2019 | |
Commitments, Contingencies and Agreements [Abstract] | |
Commitments, Contingencies and Agreements | COMMITMENTS, CONTINGENCIES AND AGREEMENTS Ethanol, Distiller Grains and Corn Oil marketing agreements and major customers The Company has entered into marketing agreements with RPMG, a marketing company, for the exclusive rights to market, sell and distribute the entire ethanol, distiller grains and corn oil inventory produced by the Company. The marketing fees are presented net in revenues. Approximate sales and marketing fees related to the agreements in place are as follows: 2019 2018 2017 Sales ethanol $ 161,953,000 $ 141,904,000 $ 178,303,000 Sales distiller grains 34,987,000 30,501,000 26,301,000 Sales corn oil 7,685,000 7,650,000 9,319,000 Marketing fees-ethanol 243,000 262,000 (225,000 ) Marketing fees-distiller grains 258,000 235,000 (169,000 ) Marketing fees-corn oil 60,000 59,000 (106,000 ) As of October 31, 2019 October 31, 2018 Amount due from RPMG $ 2,489,000 $ 1,080,000 The Company entered into multiple construction agreements as part of plans to expand plant capacity and build a new entrance road and administration building. The Company has incurred costs related to the expansion project totaling approximately $21.8 million of which approximately $7.9 million is to a related party. The current planned expansion project costs are estimated at approximately $23 million , including remaining commitments of approximately $1.5 million. The project is materially completed with exception of the entrance road and administration building which are expected to be completed in the winter of 2019. The final phase of the expansion to increase production capacity is currently being reevaluated. No other contracts have been executed. |
Risk Management
Risk Management | 12 Months Ended |
Oct. 31, 2019 | |
Risk Management [Abstract] | |
Risk Management | RISK MANAGEMENT The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices. These financial exposures are monitored and managed by the Company as an integral part of its overall risk-management program. The Company's risk management program focuses on the unpredictability of financial and commodities markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of contracts related to corn and natural gas are recorded in cost of goods sold and changes in market prices of contracts related to sale of ethanol are recorded in revenues. The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended October 31, 2019 , 2018 and 2017 and the fair value of derivatives as of October 31, 2019 and 2018 : Statement of Operations Classification Realized Gain (Loss) Change in Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity Contracts for the Revenue $ (154,000 ) $ (116,000 ) $ (270,000 ) fiscal year 2019 Cost of Goods Sold (156,000 ) 977,000 821,000 Total $ (310,000 ) $ 861,000 $ 551,000 Commodity Contracts for the Revenue $ — $ 2,000 $ 2,000 fiscal year 2018 Cost of Goods Sold 2,659,000 108,000 2,767,000 Total $ 2,659,000 $ 110,000 $ 2,769,000 Commodity Contracts for the Revenue $ — $ 32,000 $ 32,000 fiscal year 2017 Cost of Goods Sold 1,618,000 383,000 2,001,000 Total $ 1,618,000 $ 415,000 $ 2,033,000 Balance Sheet Classification October 31, 2019 October 31, 2018 Futures and option contracts In gain position $ 1,930,000 $ 801,000 In loss position (608,000 ) (340,000 ) Cash held by broker (206,000 ) 344,000 Current Asset $ 1,116,000 $ 805,000 As of October 31, 2019 , the Company had the following approximate outstanding purchase and sale commitments, of which approximately $708,000 of the purchase commitments and all of the sale commitments were with related parties. As of October 31, 2018 the Company recognized an impairment on our forward purchase contracts of approximately $394,000 . This reduced inventory on the balance sheet and increased cost of good sold on the statement of operations. There was no impairment on our forward purchase contracts as of October 31, 2019. Commitments Through Amount Sale commitments Distiller grains - fixed price December 2019 $ 3,259,000 Corn Oil - fixed price November 2019 634,000 Purchase commitments Corn - fixed price October 2020 $ 3,928,000 Corn - basis contract December 2020 4,522,000 Natural gas - fixed price March 2021 6,426,000 As of October 31, 2019 , the Company has fixed price futures and forward contracts in place for approximately 22% of anticipated corn needs and 11% of ethanol sales with no open positions beyond that point. As of October 31, 2019 , the Company has fixed priced futures and forward contracts in place for approximately 77% of its natural gas needs for the next 12 months and approximately 12% of its natural gas needs for the next 24 months with no open positions beyond that point. As of October 31, 2019 , the Company had approximately 212,000 bushels with approximate market value of $805,000 of credit sale corn contracts. As of October 31, 2018 , the Company had approximately 108,000 bushels with approximate market value of $360,000 of priced later and deferred payment corn contracts. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Marketable Securities: The Company's investments in short-term liquid investments (e.g. mutual funds), are classified within Level 1, carried at fair value based on the quoted market prices. Derivative financial instruments: Commodity futures and exchange-traded commodity options contracts are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from markets such as the CME and NYMEX. Crush swaps are bundled contracts or combined contracts that include a portion of corn, ethanol and natural gas rolled into a single trading instrument. These contracts are reported at fair value utilizing Level 2 inputs and are based on the various trading activity of the components of each segment of the bundled contract. The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Marketable securities Assets, October 31, 2019 $ 871,000 $ 871,000 $ — $ — Assets, October 31, 2018 10,559,000 10,559,000 — — Derivative financial instruments October 31, 2019 Assets $ 1,930,000 $ 1,650,000 $ 280,000 $ — Liabilities (608,000 ) (80,000 ) (528,000 ) — October 31, 2018 Assets $ 801,000 $ 195,000 $ 606,000 $ — Liabilities (340,000 ) (22,000 ) (318,000 ) — |
Investments
Investments | 12 Months Ended |
Oct. 31, 2019 | |
Investments [Abstract] | |
Investments | INVESTMENTS Condensed, combined financial information of the Company’s investments in Absolute Energy, Homeland Energy Solutions, Guardian Energy, Lawrenceville Tank and RPMG is as follows (in 000’s). Balance Sheet 9/30/2019 9/30/2018 9/30/2017 Current Assets $ 337,643 $ 309,869 $ 294,535 Other Assets 258,655 268,900 265,004 Current Liabilities 224,439 199,683 170,289 Long-term Debt 55,368 63,535 78,122 Members’ Equity 316,491 315,550 311,128 Twelve Months Ended Income Statement 9/30/2019 9/30/2018 9/30/2017 Revenue $ 776,635 $ 771,762 $ 746,736 Gross Profit 34,731 78,167 98,659 Net Income 25,026 67,128 89,442 The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions, which represents greater than 10% of the Company's net income for the year ended October 31, 2019. The Company's equitable portion of assets of Homeland Energy Solutions is greater than 10% of the Company total assets as of the years ended October 31, 2019 and 2018. Homeland Energy Solutions Condensed Financial Information Balance Sheet 9/30/2019 9/30/2018 9/30/2017 Current Assets $ 92,654 $ 89,707 $ 89,142 Other Assets 138,578 139,631 138,391 Current Liabilities 47,436 44,366 41,095 Long-term Debt 18,574 20,947 27,000 Members’ Equity 165,222 164,025 159,438 Twelve Months Ended Income Statement 9/30/2019 9/30/2018 9/30/2017 Revenue $ 313,029 $ 300,385 $ 271,148 Gross Profit 13,093 25,740 35,279 Net Income 10,559 21,831 31,777 The Company recorded equity in net income of investments of approximately $544,000 from Absolute Energy, $0 from Guardian Energy, $900,000 from Homeland Energy Solutions and $273,000 from our other investments for a total of approximately $1,716,000 for the fiscal year ended October 31, 2019 . Income for the fiscal years ended October 31, 2018 and 2017 totaled approximately $5,264,000 and $7,478,000 , respectively. The Company has undistributed net earnings of investees of approximately $12,068,000 and $12,361,338 as of October 31, 2019 and 2018 , respectively. |
Members' Equity
Members' Equity | 12 Months Ended |
Oct. 31, 2019 | |
Members' Equity [Abstract] | |
Members' Equity | MEMBERS’ EQUITY The total number of Class A and B units outstanding as of October 31, 2019 and 2018 was 19,873,000 . Allocations of profits, losses and distributions as well as voting rights are identical for both Class A and B units except for in the case of disposition of properties in dissolution. In such case, Class B units have preferential treatment in the allocation of any remaining gain. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Oct. 31, 2019 | |
Lease Obligations [Abstract] | |
Lease Obligations | LEASE OBLIGATIONS The Company has eight leases for equipment with original terms of 2 to 5 years which extend through May 2024. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the lease. Rent expense for operating leases for the years ending October 31, 2019 , 2018 and 2017 was approximately $1,592,000 , $1,407,000 and $1,625,000 , respectively. At October 31, 2019 , the Company had the following approximate minimum rental commitments under non-cancelable operating leases. 2020 $ 1,214,000 2021 876,000 2022 587,000 2023 330,000 2024 118,000 Total $ 3,125,000 |
Group Insurance
Group Insurance | 12 Months Ended |
Oct. 31, 2019 | |
Group Insurance [Abstract] | |
Group Insurance | GROUP INSURANCE The Company participates, along with other plants in the industry, in a group captive insurance company (Captive). The Captive insures losses related to workman's compensation, commercial property and general liability. The Captive reinsures catastrophic losses for all participants, including the Company, in excess of predetermined amounts. The Company's premiums are accrued by a charge to income for the period to which the premium relates and is remitted by the Company's insurer to the captive reinsurer. These premiums are structured such that the Company has made a prepaid collateral deposit estimated for losses related to the above coverage. The Captive insurer has estimated and collected an amount in excess of the estimated losses but less than the catastrophic loss limit insured by the Captive. The Company cannot be assessed over the amount in the collateral fund. |
Quarterly Financial Reporting (
Quarterly Financial Reporting (Unaudited) | 12 Months Ended |
Oct. 31, 2019 | |
Quarterly Financial Reported (Unaudited) [Abstract] | |
Quarterly Financial Reporting (Unaudited) | QUARTERLY FINANCIAL REPORTING (UNAUDITED) Summary quarterly results are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Year ended October 31, 2019 Total revenues $ 46,196,377 $ 49,608,660 $ 51,773,780 $ 56,215,030 Gross profit (loss) (621,266 ) 1,570,724 (1,502,206 ) 376,732 Operating income (loss) (1,592,662 ) 593,600 (2,430,563 ) (453,112 ) Net income (loss) (1,179,271 ) 1,228,441 (1,673,866 ) (87,706 ) Basic & diluted income (loss) per unit $ (0.06 ) $ 0.06 $ (0.08 ) $ — Year ended October 31, 2018 Total revenues $ 47,479,043 $ 45,886,524 $ 41,465,388 $ 44,670,289 Gross profit 60,857 2,341,798 833,081 2,119,849 Operating income (loss) (987,179 ) 1,259,684 100,698 1,359,110 Net income (loss) (1,317,498 ) 3,321,205 1,440,371 2,927,221 Basic & diluted income (loss) per unit $ (0.07 ) $ 0.17 $ 0.07 $ 0.15 Year ended October 31, 2017 Total revenues $ 56,063,549 $ 50,960,556 $ 49,760,291 $ 56,671,171 Gross profit 8,913,597 3,930,146 3,725,862 8,559,558 Operating income 7,961,450 3,039,717 2,683,514 7,600,072 Net income 10,959,532 4,742,720 3,840,574 9,855,998 Basic & diluted income per unit $ 0.55 $ 0.24 $ 0.19 $ 0.50 |
Business Interruption
Business Interruption | 12 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Business Interruption | BUSINESS INTERUPTION In May 2018 the Company experienced damage to their distillation columns which impacted ethanol production at its facility causing a business interruption for approximately four weeks. As a result, the Company incurred expenses of approximately $4.0 million in the year ended October 31, 2018 consisting primarily of equipment repair costs, professional fees and loss of business income. The Company filed property and business interruption insurance claims in July 2018. The claims were predominately settled in October 2018 for a net recovery of approximately $3.0 million , consisting of approximately $1.4 million from the property insurance claim and $1.6 million from the business interruption claim. The net recovery of approximately $3.0 million is included in other receivables on the balance sheet as of October 31, 2018. On the statement of operations for the period ending October 31, 2018, approximately $1.0 million increased revenues, approximately $400,000 decreased cost of sales and $1.6 million was classified as insurance claim recoveries, net. The funds were received by the Company in November 2018. During the period ending October 31, 2019 approximately $184,000 was received and reduced cost of sales. This additional amount brought the total recovery on this claim to approximately $3.2 million . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. |
Cash and Equivalents | Cash and Equivalents The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments, that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. |
Marketable Securities | Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term on the Balance Sheet, based on contractual maturity date and are stated at cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Marketable securities consisted of mutual funds and overnight money market accounts invested in intermediate-term municipal and government bonds. For the periods ended October 31, 2019 and 2018 , there were no other-than-temporary impairments recognized. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income. The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income as follows: Year Ended October 31, 2019 2018 2017 Net earnings (loss) on marketable securities $ 316,000 $ (135,000 ) $ 183,000 Marketable Securities As of Cost Fair Market Value October 31, 2019 $ 767,000 $ 871,000 October 31, 2018 10,857,000 10,559,000 |
Receivables | Accounts Receivable Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. |
Investments | Investments The Company has less than a 20% investment interest in five companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's statement of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. Distributions or dividends received in excess of the carrying value are recognized as income in the statement of operations. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. The fiscal years of Renewable Products Marketing Group, LLC (RPMG) and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC, Homeland Energy Solutions, LLC and Lawrenceville Tank, LLC, end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's statement of operations for the period ended October 31, 2019 , for all companies, is based on the investee's results for the twelve month period ended September 30 of each year. |
Notes Receivable | Note Receivable The Company carried a note receivable from an unrelated party with a balance of approximately $599,000 as of October 31, 2017, included in other assets. This balance included the original face value plus accrued interest. During 2018, the Company deemed the likelihood of collecting on the note receivable remote and wrote-off the entire balance, which is included in other expense on the statement of operations for the period ended October 31, 2018 . |
Revenue and Cost Recognition | Revenue and Cost Recognition |
Inventory | Inventory Inventories are generally valued at the lower of weighted average cost or net realizable value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. |
Property and Equipment | Property & Equipment Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 and 40 years. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the asset group may not be recoverable. If circumstances require a long-lived asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. During the year ended October 31, 2019, the Company identified idled property with a net book value of approximately $2,608,000 . The fair value of this asset group was considered to be minimal and the Company recorded an impairment loss of this full value, including in cost of goods sold for the year ended October 31, 2019. Income T |
Income Taxes | Income Taxes The Company was formed under sections of the federal and state income tax laws which provide that, in lieu of corporate income taxes, the members separately account for their pro rata share of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying financial statements. |
Investment in commodities contracts, derivative instruments and hedging activities | Investment in commodities contracts, derivative instruments and hedging activities The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company occasionally also enters into derivative contracts to hedge its exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. |
Net income per unit | Net earnings (loss) per unit Basic and diluted earnings (loss) per unit are computed using the weighted-average number of Class A and B units outstanding during the period. |
Environmental liabilities | Environmental liabilities The Company's operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdiction in which it operates. These laws require the Company to investigate and remediate the effects of the release or disposal of materials at its locations. Accordingly, the Company has adopted policies, practices and procedures in the areas of pollution control, occupational health and the production, handling, storage and use of hazardous materials to prevent material environmental or other damage, and to limit the financial liability which could result from such events. Environmental liabilities are recorded when the Company's liability is probable and the costs can be reasonably estimated. No expense or liability has been recorded as of October 31, 2019 , 2018 or 2017 for environmental liabilities. |
Incentive Compensation Plan | Incentive Compensation Plan The Company has an incentive compensation plan for certain employees equal to 1% of net income. Awards pursuant to the incentive compensation plan are paid in cash after the Company's net income is determined for each fiscal year. Awards made pursuant to the plan are immediately vested and paid. |
Fair Value | Fair Value Financial instruments include cash and equivalents, marketable securities, receivables, accounts payable, accrued expenses and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices, as disclosed in Note 8. The fair value, determined using level 3 inputs, of all other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. |
Risks and Uncertainties | Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the 2019 fiscal year , ethanol sales accounted for approximately 79% of total revenue, distiller grains sales accounted for approximately 17% of total revenue and corn oil sales accounted for approximately 4% of total revenue while corn costs averaged approximately 75% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. |
Description of New Accounting Pronouncements Not yet Adopted | Recent Accounting Pronouncements The Company is currently evaluating the following new accounting pronouncements and their potential impact, if any, on our financial statements: In February 2016, FASB issued ASU No. 2016-02 "Leases” ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for the Company on November 1, 2019, with early adoption permitted. The Company will adopt the new standard on its effective date. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We expect to use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before November 1, 2019. On adoption, we currently expect to recognize additional operating liabilities of approximately $2.9 million , with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The new standard also provides practical expedients for an entity's ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for all of our leases. In August 2018, FASB issued ASU No. 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 changes some of the disclosure requirements related to fair value measurements related to the Level 1, 2 and 3 investments. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and for interim periods within that fiscal year. The Company is currently evaluating the impact of its pending adoption of the new standard on the financial statements. Reclassification Certain items in the statements of cash flows for the years ended October 31, 2017 have been reclassified to conform to the presentation as of and for the year ended October 31, 2019. The changes do not affect net cash flow but were changed to agree with the classifications used in the October 31, 2019 financial statements. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Inventory [Abstract] | |
Schedule of Inventory | October 31, 2019 October 31, 2018 Raw Materials $ 4,259,459 $ 2,859,081 Work in Process 1,877,354 1,232,248 Finished Goods 2,397,545 2,785,627 Totals $ 8,534,358 $ 6,876,956 |
Commitments, Contingencies an_2
Commitments, Contingencies and Agreements (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Commitments, Contingencies and Agreements [Abstract] | |
Schedule of Related Party Transactions | 2019 2018 2017 Sales ethanol $ 161,953,000 $ 141,904,000 $ 178,303,000 Sales distiller grains 34,987,000 30,501,000 26,301,000 Sales corn oil 7,685,000 7,650,000 9,319,000 Marketing fees-ethanol 243,000 262,000 (225,000 ) Marketing fees-distiller grains 258,000 235,000 (169,000 ) Marketing fees-corn oil 60,000 59,000 (106,000 ) As of October 31, 2019 October 31, 2018 Amount due from RPMG $ 2,489,000 $ 1,080,000 |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Risk Management [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | he following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for periods ended October 31, 2019 , 2018 and 2017 and the fair value of derivatives as of October 31, 2019 and 2018 : Statement of Operations Classification Realized Gain (Loss) Change in Unrealized Gain (Loss) Total Gain (Loss) Derivatives not designated as hedging instruments: Commodity Contracts for the Revenue $ (154,000 ) $ (116,000 ) $ (270,000 ) fiscal year 2019 Cost of Goods Sold (156,000 ) 977,000 821,000 Total $ (310,000 ) $ 861,000 $ 551,000 Commodity Contracts for the Revenue $ — $ 2,000 $ 2,000 fiscal year 2018 Cost of Goods Sold 2,659,000 108,000 2,767,000 Total $ 2,659,000 $ 110,000 $ 2,769,000 Commodity Contracts for the Revenue $ — $ 32,000 $ 32,000 fiscal year 2017 Cost of Goods Sold 1,618,000 383,000 2,001,000 Total $ 1,618,000 $ 415,000 $ 2,033,000 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Balance Sheet Classification October 31, 2019 October 31, 2018 Futures and option contracts In gain position $ 1,930,000 $ 801,000 In loss position (608,000 ) (340,000 ) Cash held by broker (206,000 ) 344,000 Current Asset $ 1,116,000 $ 805,000 |
Long-term Purchase Commitment | Commitments Through Amount Sale commitments Distiller grains - fixed price December 2019 $ 3,259,000 Corn Oil - fixed price November 2019 634,000 Purchase commitments Corn - fixed price October 2020 $ 3,928,000 Corn - basis contract December 2020 4,522,000 Natural gas - fixed price March 2021 6,426,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Total Level 1 Level 2 Level 3 Marketable securities Assets, October 31, 2019 $ 871,000 $ 871,000 $ — $ — Assets, October 31, 2018 10,559,000 10,559,000 — — Derivative financial instruments October 31, 2019 Assets $ 1,930,000 $ 1,650,000 $ 280,000 $ — Liabilities (608,000 ) (80,000 ) (528,000 ) — October 31, 2018 Assets $ 801,000 $ 195,000 $ 606,000 $ — Liabilities (340,000 ) (22,000 ) (318,000 ) — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Investments [Abstract] | |
Schedule of Equity Method Investments | Balance Sheet 9/30/2019 9/30/2018 9/30/2017 Current Assets $ 337,643 $ 309,869 $ 294,535 Other Assets 258,655 268,900 265,004 Current Liabilities 224,439 199,683 170,289 Long-term Debt 55,368 63,535 78,122 Members’ Equity 316,491 315,550 311,128 Twelve Months Ended Income Statement 9/30/2019 9/30/2018 9/30/2017 Revenue $ 776,635 $ 771,762 $ 746,736 Gross Profit 34,731 78,167 98,659 Net Income 25,026 67,128 89,442 The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions, which represents greater than 10% of the Company's net income for the year ended October 31, 2019. The Company's equitable portion of assets of Homeland Energy Solutions is greater than 10% of the Company total assets as of the years ended October 31, 2019 and 2018. Homeland Energy Solutions Condensed Financial Information Balance Sheet 9/30/2019 9/30/2018 9/30/2017 Current Assets $ 92,654 $ 89,707 $ 89,142 Other Assets 138,578 139,631 138,391 Current Liabilities 47,436 44,366 41,095 Long-term Debt 18,574 20,947 27,000 Members’ Equity 165,222 164,025 159,438 Twelve Months Ended Income Statement 9/30/2019 9/30/2018 9/30/2017 Revenue $ 313,029 $ 300,385 $ 271,148 Gross Profit 13,093 25,740 35,279 Net Income 10,559 21,831 31,777 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Lease Obligations [Abstract] | |
Operating Leases of Lessee Disclosure | At October 31, 2019 , the Company had the following approximate minimum rental commitments under non-cancelable operating leases. 2020 $ 1,214,000 2021 876,000 2022 587,000 2023 330,000 2024 118,000 Total $ 3,125,000 |
Quarterly Financial Reporting_2
Quarterly Financial Reporting (Unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Quarterly Financial Reported (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | Summary quarterly results are as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Year ended October 31, 2019 Total revenues $ 46,196,377 $ 49,608,660 $ 51,773,780 $ 56,215,030 Gross profit (loss) (621,266 ) 1,570,724 (1,502,206 ) 376,732 Operating income (loss) (1,592,662 ) 593,600 (2,430,563 ) (453,112 ) Net income (loss) (1,179,271 ) 1,228,441 (1,673,866 ) (87,706 ) Basic & diluted income (loss) per unit $ (0.06 ) $ 0.06 $ (0.08 ) $ — Year ended October 31, 2018 Total revenues $ 47,479,043 $ 45,886,524 $ 41,465,388 $ 44,670,289 Gross profit 60,857 2,341,798 833,081 2,119,849 Operating income (loss) (987,179 ) 1,259,684 100,698 1,359,110 Net income (loss) (1,317,498 ) 3,321,205 1,440,371 2,927,221 Basic & diluted income (loss) per unit $ (0.07 ) $ 0.17 $ 0.07 $ 0.15 Year ended October 31, 2017 Total revenues $ 56,063,549 $ 50,960,556 $ 49,760,291 $ 56,671,171 Gross profit 8,913,597 3,930,146 3,725,862 8,559,558 Operating income 7,961,450 3,039,717 2,683,514 7,600,072 Net income 10,959,532 4,742,720 3,840,574 9,855,998 Basic & diluted income per unit $ 0.55 $ 0.24 $ 0.19 $ 0.50 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Production (Details) gal in Millions | 12 Months Ended |
Oct. 31, 2019companygal | |
Product Information [Line Items] | |
Equity Method Investments, Number of Entities | company | 5 |
Ethanol [Member] | |
Product Information [Line Items] | |
Annual Production Capacity | gal | 120 |
Phantom Share Units (PSUs) [Member] | |
Product Information [Line Items] | |
Share-Based Compensation, Percentage of Net Income | 1.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Marketable Securities (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Marketable Securities, Realized Gain (Loss) | $ 316,000 | $ (135,000) | $ 183,000 |
Mutual Fund [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Trading Securities, Cost | 767,000 | 10,857,000 | |
Debt Securities, Trading, and Equity Securities, FV-NI | 10,559,000 | ||
Certificates of Deposit [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Certificates of Deposit, at Carrying Value | $ 871,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 188,381,772 | $ 182,276,754 |
Property, Plant and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 | |
Property, Plant and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 40 | |
Idled Property [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,608,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Concentration Risk (Details) | 12 Months Ended |
Oct. 31, 2019 | |
Revenue, Product and Service Benchmark [Member] | Ethanol [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 79.00% |
Revenue, Product and Service Benchmark [Member] | Distillers Grains [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 17.00% |
Revenue, Product and Service Benchmark [Member] | Corn Oil [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 4.00% |
Cost of Goods and Service Benchmark [Member] | Corn [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 75.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Note Receivable (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Other Nonoperating Income (Expense) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes receivable | $ 599 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Recent Accounting Pronouncements (Details) $ in Millions | Oct. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Operating Lease, Liability | $ 2.9 |
Operating Lease, Right-of-Use Asset | $ 5.1 |
Inventory (Details)
Inventory (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Inventory [Abstract] | ||
Raw Materials | $ 4,259,459 | $ 2,859,081 |
Work in Process | 1,877,354 | 1,232,248 |
Finished Goods | 2,397,545 | 2,785,627 |
Inventory | $ 8,534,358 | $ 6,876,956 |
Bank Financing Long Term Debt (
Bank Financing Long Term Debt (Details) - Farm Credit Services of America [Member] - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | |
Debt Instrument, Interest Rate, Effective Percentage | 4.95% | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 10,000,000 | |
Long-term Debt | 0 | $ 0 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 35,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Director [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Purchases from Related Party | $ 40,569 | $ 41,478 | $ 33,317 |
Due to Related Parties | $ 547 | $ 420 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation | $ 469,040 | $ 536,414 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 150,000 | 154,000 | $ 118,000 |
Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation, Percentage of Net Income | 1.00% | ||
Share-based Payment Arrangement, Expense | $ 0 | $ 59,000 | $ 122,000 |
Commitments, Contingencies an_3
Commitments, Contingencies and Agreements (Details) - Investee [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | $ 2,489 | $ 1,080 | |
Ethanol [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 161,953 | 141,904 | $ 178,303 |
Related Party Transaction, Expenses from Transactions with Related Party | 243 | 262 | (225) |
Distillers Grains [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 34,987 | 30,501 | 26,301 |
Related Party Transaction, Expenses from Transactions with Related Party | 258 | 235 | (169) |
Corn Oil [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 7,685 | 7,650 | 9,319 |
Related Party Transaction, Expenses from Transactions with Related Party | $ 60 | $ 59 | $ (106) |
Commitments, Contingencies an_4
Commitments, Contingencies and Agreements Plant Expansion (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Long-term Purchase Commitment, Amount | 21.8 | |
Commitments and Contingencies | ||
Payments for Construction in Process | 23 | |
Construction in Progress [Member] | Subsidiary of Common Parent [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Commitments and Contingencies | $ 7.9 |
Risk Management Derivative Inst
Risk Management Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | $ (310,000) | $ 2,659,000 | $ 1,618,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | 861,000 | 110,000 | 415,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 551,000 | 2,769,000 | 2,033,000 |
Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | (154,000) | 0 | 0 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (116,000) | 2,000 | 32,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (270,000) | 2,000 | 32,000 |
Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | (156,000) | 2,659,000 | 1,618,000 |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | 977,000 | 108,000 | 383,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 821,000 | $ 2,767,000 | $ 2,001,000 |
Risk Management Derivative In_2
Risk Management Derivative Instruments - Balance Sheet Location (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 1,115,525 | $ 804,952 |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Current | (608,000) | (340,000) |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 1,930,000 | 801,000 |
Restricted Cash and Cash Equivalents | (206,000) | 344,000 |
Derivative Instruments and Hedges, Assets | $ 1,116,000 | $ 805,000 |
Risk Management Long-Term Purch
Risk Management Long-Term Purchase Commitments (Details) $ in Thousands | 12 Months Ended | |
Oct. 31, 2019USD ($)bu | Oct. 31, 2018USD ($)bu | |
Long-term Purchase Commitment [Line Items] | ||
Derivative, Term of Contract | 12 months | |
Financial Instruments, Owned, Physical Commodities, at Fair Value | $ 360 | |
Ethanol [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Product Usage, Percentage, Next Twelve Months | 11.00% | |
Natural Gas [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Product Usage, Percentage, Next Twelve Months | 77.00% | |
Product Usage, Percentage, Next 24 Months | 12.00% | |
Long-term Purchase Commitment, Period | 24 months | |
Corn [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Product Usage, Percentage, Next Twelve Months | 22.00% | |
Derivative, Nonmonetary Notional Amount, Volume | bu | 212,000 | 108,000 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | $ 805 | |
Distillers Grains [Member] | Fixed-price Contract [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Sale commitments, Remaining Minimum Amount Committed | 3,259 | |
Corn [Member] | Fixed-price Contract [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Sale commitments, Remaining Minimum Amount Committed | 634 | |
Purchase Commitment, Remaining Minimum Amount Committed | 3,928 | |
Corn [Member] | Basis Contract [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 4,522 | |
Natural Gas [Member] | Fixed Price [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 6,426 | |
Affiliated Entity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Obligation | 708 | |
Affiliated Entity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Obligation | $ 394 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 871,000 | $ 10,559,000 |
Derivative Assets, Current | 1,930,000 | 801,000 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 10,559,000 | |
Derivative Assets, Current | 1,649,813 | 195,000 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Derivative Assets, Current | 279,965 | 606,000 |
Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Derivative Assets, Current | 0 | 0 |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, Current | (608,000) | (340,000) |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, Current | (80,000) | (22,000) |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, Current | (527,744) | (318,000) |
Commodity Contract [Member] | Liability [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities, Current | 0 | 0 |
Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 10,559,000 | |
Mutual Fund [Member] | Commodity Contract [Member] | Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 871,000 |
Investments (Details)
Investments (Details) - USD ($) | 12 Months Ended | |||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Current Assets | $ 337,643,000 | $ 309,869,000 | $ 294,535,000 | |||
Equity Method Investment, Other Assets | 258,655,000 | 268,900,000 | 265,004,000 | |||
Equity Method Investment, Current Liabilities | 224,439,000 | 199,683,000 | 170,289,000 | |||
Equity Method Investment, Long-term Debt | 55,368,000 | 63,535,000 | 78,122,000 | |||
Equity Method Investment, Members' Equity | 316,491,000 | 315,550,000 | 311,128,000 | |||
Equity Method Investment, Revenue | $ 776,635,000 | $ 771,762,000 | $ 746,736,000 | |||
Equity Method Investment, Gross Profit | 34,731,000 | 78,167,000 | 98,659,000 | |||
Equity Method Investment, Net Income | 25,026,000 | 67,128,000 | 89,442,000 | |||
Equity in net income of investments | 1,716,200 | 5,263,755 | 7,477,709 | |||
Retained Earnings, Undistributed Earnings from Equity Method Investees | 12,068,000 | 12,361,338 | ||||
Guardian Energy [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Current Assets | 35,932,000 | 38,058,000 | 43,019,000 | |||
Equity Method Investment, Other Assets | 90,949,000 | 91,999,000 | 84,087,000 | |||
Equity Method Investment, Current Liabilities | 4,013,000 | 3,840,000 | 5,060,000 | |||
Equity Method Investment, Long-term Debt | 0 | 0 | 0 | |||
Equity Method Investment, Members' Equity | 122,868,000 | 126,217,000 | 122,046,000 | |||
Equity Method Investment, Revenue | 203,338,000 | 222,842,000 | 225,979,000 | |||
Equity Method Investment, Gross Profit | 11,676,000 | 23,676,000 | 31,316,000 | |||
Equity Method Investment, Net Income | 6,789,000 | 23,268,000 | 28,494,000 | |||
Equity in net income of investments | 0 | |||||
Homeland Energy Solutions [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Current Assets | 92,654,000 | 89,707,000 | 89,142,000 | |||
Equity Method Investment, Other Assets | 138,578,000 | 139,631,000 | 138,391,000 | |||
Equity Method Investment, Current Liabilities | 47,436,000 | 44,366,000 | 41,095,000 | |||
Equity Method Investment, Long-term Debt | 18,574,000 | 20,947,000 | 27,000,000 | |||
Equity Method Investment, Members' Equity | $ 165,222,000 | $ 164,025,000 | $ 159,438,000 | |||
Equity Method Investment, Revenue | 313,029,000 | 300,385,000 | 271,148,000 | |||
Equity Method Investment, Gross Profit | 13,093,000 | 25,740,000 | 35,279,000 | |||
Equity Method Investment, Net Income | 10,559,000 | $ 21,831,000 | $ 31,777,000 | |||
Equity in net income of investments | 900,000 | |||||
Absolute Energy [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net income of investments | 544,000 | |||||
Other Equity Investments [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in net income of investments | $ 273,000 |
Members' Equity (Details)
Members' Equity (Details) | Oct. 31, 2019shares |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Members' Equity, units issued and outstanding | 19,873,000 |
Lease Obligations (Details)
Lease Obligations (Details) | 12 Months Ended | ||
Oct. 31, 2019USD ($)lease | Oct. 31, 2018USD ($) | Oct. 31, 2017USD ($) | |
Operating Leased Assets [Line Items] | |||
Number of current Operating Leases | lease | 8 | ||
Original Lease term, minimum | 2 | ||
Original Lease term, maximum | 5 | ||
Equipment [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $ 1,592,000 | $ 1,407,000 | $ 1,625,000 |
Operating Leases, Future Minimum Payments Due, 2018 | 1,214,000 | ||
Operating Leases, Future Minimum Payments, Due 2019 | 876,000 | ||
Operating Leases, Future Minimum Payments, Due 2020 | 587,000 | ||
Operating Leases, Future Minimum Payments, Due 2021 | 330,000 | ||
Operating Leases, Future Minimum Payments, Due in 2022 | 118,000 | ||
Operating Leases, Future Minimum Payments Due | $ 3,125,000 |
Quarterly Financial Reporting_3
Quarterly Financial Reporting (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Quarterly Financial Reported (Unaudited) [Abstract] | |||||||||||||||
Total revenues | $ 56,215,030 | $ 51,773,780 | $ 49,608,660 | $ 46,196,377 | $ 44,670,289 | $ 41,465,388 | $ 45,886,524 | $ 47,479,043 | $ 56,671,171 | $ 49,760,291 | $ 50,960,556 | $ 56,063,549 | $ 203,793,847 | $ 179,501,244 | $ 213,455,567 |
Gross Profit (loss) | 376,732 | (1,502,206) | 1,570,724 | (621,266) | 2,119,849 | 833,081 | 2,341,798 | 60,857 | 8,559,558 | 3,725,862 | 3,930,146 | 8,913,597 | (176,016) | 5,355,585 | 25,129,163 |
Operating Income (loss) | (453,112) | (2,430,563) | 593,600 | (1,592,662) | 1,359,110 | 100,698 | 1,259,684 | (987,179) | 7,600,072 | 2,683,514 | 3,039,717 | 7,961,450 | (3,882,737) | 1,732,313 | 21,284,753 |
Net Income (loss) | $ (87,706) | $ (1,673,866) | $ 1,228,441 | $ (1,179,271) | $ 2,927,221 | $ 1,440,371 | $ 3,321,205 | $ (1,317,498) | $ 9,855,998 | $ 3,840,574 | $ 4,742,720 | $ 10,959,532 | $ (1,712,402) | $ 6,371,299 | $ 29,398,824 |
Basic & diluted earnings (loss) per unit | $ 0 | $ (0.08) | $ 0.06 | $ (0.06) | $ 0.15 | $ 0.07 | $ 0.17 | $ (0.07) | $ 0.50 | $ 0.19 | $ 0.24 | $ 0.55 |
Business Interruption (Details)
Business Interruption (Details) - Distillation Columns Damage - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 30, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Business Interruption Loss [Line Items] | |||
Business interruption losses, period | 28 days | ||
Business interruption expense | $ 4,000 | ||
Increase in revenue | $ 1,000 | ||
Increase (decrease) in cost of sales | 184 | 400 | |
Insurance claim recoveries, net | 1,600 | ||
Other Receivables | |||
Business Interruption Loss [Line Items] | |||
Business interruption insurance recovery | $ 3,200 | 3,000 | |
Property Insurance Claim | |||
Business Interruption Loss [Line Items] | |||
Business interruption insurance recovery | 1,400 | ||
Business Interruption Claim | |||
Business Interruption Loss [Line Items] | |||
Business interruption insurance recovery | $ 1,600 |