Cover Page Document
Cover Page Document | 12 Months Ended |
Oct. 31, 2021USD ($)shares | |
Document and Entity Information [Abstract] | |
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, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Amendment Flag | false |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Small Business | false |
Entity File Number | 000-51177 |
Entity Incorporation, State or Country Code | IA |
Entity Tax Identification Number | 02-0575361 |
Entity Address, Address Line One | 1822 43rd Street SW |
Entity Address, City or Town | Mason City |
Entity Address, State or Province | IA |
Entity Address, Postal Zip Code | 50401 |
City Area Code | 641 |
Local Phone Number | 423-8525 |
Entity Interactive Data Current | Yes |
Document Transition Report | false |
Document Information [Line Items] | |
Entity Filer Category | Non-accelerated Filer |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Document Period End Date | Oct. 31, 2021 |
Entity Small Business | false |
Entity Shell Company | false |
Current Fiscal Year End Date | --10-31 |
Common Class A [Member] | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | shares | 18,953,000 |
Entity Public Float | $ | $ 14,964,834 |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | shares | 18,953,000 |
Entity Public Float | $ | $ 14,964,834 |
Common Class B [Member] | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | shares | 920,000 |
Entity Public Float | $ | $ 363,000 |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | shares | 920,000 |
Entity Public Float | $ | $ 363,000 |
Balance Sheet
Balance Sheet - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
Current Assets | ||
Cash and equivalents | $ 19,389,352 | $ 17,582,312 |
Marketable Securities | 1,389,790 | 5,113,066 |
Accounts receivable | 15,662,640 | 7,326,519 |
Other receivables | 297,553 | 191,768 |
Derivative instruments | 1,517,196 | 862,516 |
Inventory | 18,631,842 | 8,346,764 |
Prepaid expenses and other | 3,331,993 | 2,999,162 |
Total current assets | 60,220,366 | 42,422,107 |
Property and Equipment | ||
Land and land improvements | 14,319,210 | 14,319,211 |
Building and grounds | 33,719,636 | 33,719,636 |
Grain handling equipment | 29,510,301 | 16,084,232 |
Office equipment | 2,556,695 | 2,457,090 |
Plant and process equipment | 123,473,114 | 122,038,667 |
Construction in progress | 3,419,316 | 3,189,865 |
Gross property and equipment | 206,998,272 | 191,808,701 |
Less accumulated depreciation | 133,040,323 | 124,390,850 |
Net property and equipment | 73,957,949 | 67,417,851 |
Other Assets | ||
Investments | 25,583,813 | 25,019,870 |
Operating Lease, Right-of-Use Asset | 2,766,353 | 2,324,631 |
Other assets | 1,868,056 | 1,904,482 |
Total other assets | 30,218,222 | 29,248,983 |
Total Assets | 164,396,537 | 139,088,941 |
Current Liabilities | ||
Accounts payable | 11,482,692 | 6,798,427 |
Accrued expenses | 3,371,118 | 2,930,479 |
Retention Payable | 9,046 | 34,813 |
Long-term Debt, Current Maturities | 0 | 430,250 |
Operating Lease, Liability, Current | 1,135,467 | 1,000,141 |
Total current liabilities | 15,998,323 | 11,194,110 |
Long-term Liabilities | ||
Deferred compensation | 734,999 | 514,409 |
Long-term Debt, Excluding Current Maturities | 0 | 430,250 |
Other Liabilities, Noncurrent | 1,630,886 | 1,324,490 |
Deferred Revenue | 1,196,450 | 1,313,177 |
Liabilities, Noncurrent | 3,562,335 | 3,582,326 |
Commitments and Contingencies | ||
Members' Equity (19,873,000 units issued and outstanding) | 144,835,879 | 124,312,505 |
Total Liabilities and Members’ Equity | $ 164,396,537 | $ 139,088,941 |
Statement of Operations
Statement of Operations - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Revenues | $ 303,435,418 | $ 194,329,476 | $ 203,793,847 |
Cost of Goods and Services Sold | 287,226,420 | 188,782,979 | 203,969,863 |
Gross Profit (loss) | 16,208,998 | 5,546,497 | (176,016) |
Operating Expenses | 4,594,963 | 4,144,385 | 3,706,721 |
Operating Income (loss) | 11,614,035 | 1,402,112 | (3,882,737) |
Other Income (Expense) | |||
Other income | 233,253 | 1,396,264 | 238,140 |
Interest income (expense), net | (197,741) | 37,494 | 215,995 |
Gain (Loss) on Extinguishment of Debt | 1,699,041 | 0 | 0 |
Equity in net income of investments | 11,149,386 | 3,042,793 | 1,716,200 |
Total Other Income | 12,883,939 | 4,476,551 | 2,170,335 |
Net Income | $ 24,497,974 | $ 5,878,663 | $ (1,712,402) |
Basic & diluted net income per unit | $ 1.23 | $ 0.30 | $ (0.09) |
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 | $ 0.20 | $ 0.10 | $ 0.25 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Cash Flows from Operating Activities | |||
Net Income | $ 24,497,974 | $ 5,878,663 | $ (1,712,402) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 8,723,527 | 8,784,700 | 9,999,546 |
Unrealized (gain) loss on risk management & marketable securities | (931,404) | 56,220 | (686,080) |
Impairment of and loss on disposal of long-lived assets | 0 | (369,324) | 0 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 2,755,663 |
Amortization of deferred revenue | 0 | (133,117) | 0 |
Amortization of Debt Issuance Costs | 25,000 | 5,556 | 0 |
Change in accretion amounts of interest on grant & note receivable | 262,367 | (51,386) | (2,326) |
Distributions (earnings) in excess of earnings (distributions) from investments | (563,943) | 396,300 | 303,343 |
Gain (Loss) on Extinguishment of Debt | (1,699,041) | 0 | 0 |
Gain on insurance proceeds from involuntary conversion & business interruption | 0 | 0 | (183,739) |
Insurance From Business Interruption | 0 | 34,965 | 3,183,739 |
Deferred compensation expense | 220,590 | 45,369 | (67,374) |
Change in assets and liabilities | |||
Accounts receivable | (8,336,121) | (4,816,581) | (1,424,357) |
Inventory | (10,285,078) | 187,594 | (1,657,402) |
Prepaid expenses and other | (438,616) | (65,298) | 306,586 |
Accounts payable | 3,435,838 | 4,132,642 | 2,130,571 |
Accrued expenses | 61,540 | (838,695) | 26,462 |
Increase (Decrease) in Operating Lease Liability | (441,722) | 0 | 0 |
Net cash provided by operating activities | 14,530,911 | 13,247,608 | 12,972,230 |
Cash Flows from Investing Activities | |||
Capital expenditures | (13,587,812) | (6,710,121) | (11,538,228) |
Proceeds from sale of equipment | 0 | 334,359 | 0 |
Purchase of marketable securities | 0 | (4,000,000) | (7,515) |
Proceeds from sale of marketable securities | 4,000,000 | 0 | 10,071,558 |
Net cash (used in) investing activities | (9,587,812) | (10,375,762) | (1,474,185) |
Proceeds from Issuance of Long-term Debt | 838,541 | 860,500 | 0 |
Payments of Debt Issuance Costs | 0 | (100,000) | 0 |
Cash Flows from Financing Activities | |||
Distributions to members | (3,974,600) | (1,987,300) | (4,968,250) |
Payments received on grant receivable | 0 | 0 | 84,666 |
Net cash (used in) financing activities | (3,136,059) | (1,226,800) | (4,883,584) |
Net Increase (Decrease) in Cash and Equivalents | 1,807,040 | 1,645,046 | 6,614,461 |
Cash and Equivalents – Beginning of Period | 17,582,312 | 15,937,266 | 9,322,805 |
Cash and Equivalents – End of Period | 19,389,352 | 17,582,312 | 15,937,266 |
Supplemental Cash Flow Information | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 223,046 | 77,655 | 51,177 |
Supplemental Disclosure of Noncash Operating & Investing Activities | |||
Accounts Payable related to construction in process | 807,008 | 220,065 | 897,808 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 3,372,603 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity | USD ($)$ / shares |
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 |
Distribution Per Unit | $ / shares | $ 0.25 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | $ (1,987,300) |
Net Income | 5,878,663 |
Stockholders' Equity Attributable to Parent at Oct. 31, 2020 | $ 124,312,505 |
Distribution Per Unit | $ / shares | $ 0.10 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | $ (3,974,600) |
Net Income | 24,497,974 |
Stockholders' Equity Attributable to Parent at Oct. 31, 2021 | $ 144,835,879 |
Distribution Per Unit | $ / shares | $ 0.20 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | 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 |
Inventory
Inventory | 12 Months Ended |
Oct. 31, 2021 | |
Inventory [Abstract] | |
Inventory | INVENTORYInventory consisted of the following as of October 31, 2021 and October 31, 2020: October 31, 2021 October 31, 2020 Raw Materials $ 14,671,316 $ 4,977,047 Work in Process 2,604,342 1,964,403 Finished Goods 1,356,184 1,405,314 Totals $ 18,631,842 $ 8,346,764 |
Bank Financing
Bank Financing | 12 Months Ended |
Oct. 31, 2021 | |
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 $30 million and matures on August 1, 2023. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.24% as of October 31, 2021). 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, 2021, 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, 2021 and 2020, the Company had no outstanding borrowings. The Company entered into a loan agreement with the Small Business Association through Cresco Union Savings Bank (CUSB) on April 7, 2020 for approximately $860,000 as part of the Paycheck Protection Program (PPP) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The loan matures in April 2022 and has an interest rate of 1%. Proceeds of the loan are restricted for use towards payroll costs and other allowable uses such as covered utilities for an eight-week period following the loan under the Paycheck Protection Program Rules. Provisions of the agreement allow for a portion of the loan to be forgiven if certain qualifications are met. On December 8, 2020, the Company was notified that the entire loan was forgiven. The Company entered into a second loan agreement with the Small Business Association through CUSB on February 9, 2021 for approximately $838,000 as part of the second round of PPP. The loan matures on February 8, 2026 and has an interest rate of 1%. Provisions of the agreement allow for a portion of the loan to be forgiven if certain qualifications are met. Proceeds of the loan are restricted for use towards payroll costs and other allowable uses such as covered utilities for an eight-week period following the loan under the Paycheck Protection Program Rules. Provisions of the agreement allow for a portion of the loan to be forgiven if certain qualifications are met. On June 14, 2021, we were notified that this entire loan was forgiven. The company recorded the forgiveness as a gain on debt extinguishment in the statement of operations for approximately $838,000 for the twelve months ended October 31, 2021. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Oct. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe 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. The Company also purchased ingredients from RPMG. Purchases during the fiscal years ended October 31, 2021, 2020 and 2019 totaled approximately $53,235,000, $37,269,000 and $40,569,000, respectively. As of October 31, 2021 and 2020, the amounts owed to related parties was approximately $368,000 and $593,000, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Oct. 31, 2021 | |
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. As of October 31, 2021 and 2020, the Company had a liability of approximately $735,000 and $514,000 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, 2021. 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 |
Commitments, Contingencies and
Commitments, Contingencies and Agreements | 12 Months Ended |
Oct. 31, 2021 | |
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: 2021 2020 2019 Sales ethanol $ 242,814,000 $ 153,132,000 $ 161,953,000 Sales distiller grains 47,158,000 34,950,000 34,987,000 Sales corn oil 16,990,000 7,999,000 7,685,000 Marketing fees-ethanol 259,000 200,000 243,000 Marketing fees-distiller grains 273,000 247,000 258,000 Marketing fees-corn oil 73,000 62,000 60,000 As of October 31, 2021 October 31, 2020 Amount due from RPMG $ 15,662,000 $ 7,326,000 |
Risk Management
Risk Management | 12 Months Ended |
Oct. 31, 2021 | |
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, 2021, 2020 and 2019 and the fair value of derivatives as of October 31, 2021 and 2020: 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 $ (1,927,000) $ (995,000) $ (2,922,000) fiscal year 2021 Cost of Goods Sold (6,705,000) (2,614,000) (9,319,000) Total $ (8,632,000) $ (3,609,000) $ (12,241,000) Commodity Contracts for the Revenue $ (1,441,000) $ 198,000 $ (1,243,000) fiscal year 2020 Cost of Goods Sold 1,866,000 (1,342,000) 524,000 Total $ 425,000 $ (1,144,000) $ (719,000) 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 Balance Sheet Classification October 31, 2021 October 31, 2020 Futures and option contracts In gain position $ 817,000 $ 470,000 In loss position (4,247,000) (290,000) Cash held by broker 4,947,000 683,000 Current Asset $ 1,517,000 $ 863,000 As of October 31, 2021, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $922,000 of the purchase commitments and all of the sale commitments were with related parties. There was no impairment on our forward purchase contracts as of October 31, 2021 and 2020. Commitments Through Amount Sale commitments Distiller grains - fixed price November 2022 $ 3,036,000 Corn Oil - fixed price December 2022 4,755,000 Purchase commitments Corn - fixed price October 2022 $ 4,051,000 Natural gas - fixed price March 2024 6,257,000 As of October 31, 2021, the Company has fixed price futures and forward contracts in place for approximately 9% of anticipated corn needs for the next 12 months and 0% of ethanol sales for the next 12 months with no open positions beyond that point. As of October 31, 2021, the Company has fixed priced futures and forward contracts in place for approximately 67% 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, 2021, the Company had approximately 672,000 bushels with approximate market value of $2,500,000 of credit sale corn contracts. As of October 31, 2020, the Company had approximately 212,000 bushels with approximate market value of $805,000 of priced later and deferred payment corn contracts. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2021 | |
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, 2021 $ 1,390,000 $ 1,390,000 $ — $ — Assets, October 31, 2020 5,113,000 5,113,000 — — Derivative financial instruments October 31, 2021 Assets $ 817,000 $ 122,000 $ 695,000 $ — Liabilities $ (4,247,000) (1,617,000) (2,630,000) — October 31, 2020 Assets $ 470,000 $ 470,000 $ — Liabilities (290,000) (149,000) (141,000) — |
Investments
Investments | 12 Months Ended |
Oct. 31, 2021 | |
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 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 391,372 $ 285,395 $ 337,643 Other Assets 289,068 246,389 258,655 Current Liabilities 293,458 168,842 224,439 Long-term Debt 38,973 47,529 55,368 Members’ Equity 348,009 315,413 316,491 Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 1,117,485 $ 847,425 $ 776,635 Gross Profit 102,604 58,093 34,731 Net Income 100,927 40,259 25,026 The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions and Guardian Energy, which each represents greater than 10% of the Company's net income for the year ended October 31, 2021. Homeland Energy Solutions Condensed Financial Information Balance Sheet 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 72,672 $49,855 $92,654 Other Assets 125,488 134,837 18,578 Current Liabilities 14,647 13,018 47,436 Long-term Debt 626 11,729 18,574 Members’ Equity 182,887 159,945 165,222 Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 432,479 $ 288,582 $ 313,029 Gross Profit 35,416 24,101 13,093 Net Income 32,626 12,289 10,599 Guardian Energy Condensed Financial Information Balance Sheet 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 34,257 $ 19,089 $ 21,800 Other Assets 27,880 26,309 26,935 Current Liabilities 26,532 10,499 16,379 Long-term Debt 38,347 35,043 36,794 Members' Equity (2,741) (144) (4,439) Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 375,063 $ 340,462 $ 245,656 Gross Profit 42,635 23,303 10,533 Net Income 38,403 17,147 5,215 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | SEGMENT REPORTING The Company reports its financial and operating performance in two reportable segments: (1) production (2) ethanol production investments.The production segment consists of the manufacturing of ethanol and related co-products from the ethanol production process. The ethanol production investment segment consists of aggregated ethanol production equity method investments. The Company discloses the remaining operating segments which do not meet the reportable segment criteria in the all other investments category. The Company evaluates its operating segments for determination of reportable segments annually and determined that the ethanol production investments qualified as a separate reporting segment. The ethanol production investments reporting segment includes those equity method investment operating segments which the company's chief operating decision maker does not have operational decision authority, that meet the qualitative criteria for aggregation, have similar long-term economic characteristics, and have expected ongoing significance, which includes Absolute Energy, Guardian Energy, and Homeland Energy Solutions. All investments that are included in the segment derive their revenue from the manufacturing of ethanol and related co-products from the ethanol production process. The reconciliation item is necessary due to reportable segments not being consolidated in the financial statements, but rather are reflected as equity method investments. The following tables set forth certain financial data for the Company’s reportable segments: Twelve Months Ended 2021 2020 2019 Net Sales Production $ 303,435,418 $ 194,329,476 $ 203,793,847 Ethanol production investments 1,102,373,242 827,657,609 762,022,409 All Others 13,957,720 14,354,618 10,779,321 Reconciliation (1,116,330,962) (842,012,227) (772,801,730) Total Net Sales $ 303,435,418 $ 194,329,476 $ 203,793,847 Net Income (Loss) Production $ 13,348,587 $ 2,835,871 $ (3,428,603) Ethanol production investments 96,680,090 12,920,291 22,562,651 All Others 4,211,889 2,463,008 2,265,231 Reconciliation (89,742,592) (12,340,507) (23,111,681) Total Net Income (Loss) $ 24,497,974 $ 5,878,663 $ (1,712,402) Interest Income (Expense) Production $ (197,741) $ 37,494 $ 219,824 Ethanol production investments (1,830,476) (2,448,882) (3,782,929) All Others 2,798,745 2,393,268 2,135,430 Reconciliation (968,269) 55,614 1,647,499 Total Net Interest Income (Expense) $ (197,741) $ 37,494 $ 219,824 Depreciation Expense Production $ 8,649,473 $ 8,710,647 $ 9,921,663 Ethanol production investments 3,299,705 3,740,976 11,126,496 All Others 237,508 382,994 940,898 Reconciliation (3,537,213) (4,123,970) (12,067,394) Total Depreciation $ 8,649,473 $ 8,710,647 $ 9,921,663 Equity in Net Income of Investments Production $ 11,149,386 $ 3,042,793 $ 1,716,200 Ethanol production investments 479,140 291,674 156,182 All Others — — — Reconciliation (479,140) (291,674) (156,182) Total Net Income of Investments $ 11,149,386 $ 3,042,793 $ 1,716,200 The following table sets forth the Company’s total assets by operating segment: October 31, 2021 October 31, 2020 October 31, 2019 Total assets: Production $ 138,812,724 $ 114,069,070 $ 104,614,213 Ethanol production investments 400,239,135 358,692,270 406,847,671 All Others 280,201,221 173,092,120 189,450,417 Reconciliation (654,856,543) (506,764,519) (570,881,918) $ 164,396,537 $ 139,088,941 $ 130,030,383 |
Members' Equity
Members' Equity | 12 Months Ended |
Oct. 31, 2021 | |
Members' Equity [Abstract] | |
Members' Equity | MEMBERS’ EQUITYThe total number of Class A and B units outstanding as of October 31, 2021 and 2020 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, 2021 | |
Leases [Abstract] | |
Lessor, Operating Leases | LEASE OBLIGATIONS A lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognized a lease liability at the lease commencement date, as the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively. The Company leases rail cars and rail moving equipment with original terms up to 5 years. The Company is obligated to pay costs of insurance, taxes, repairs and maintenance pursuant to the terms of the leases. These costs are in addition to regular lease payments and are not included in lease expense. Rent expense incurred for the operating leases during fiscal years ended October 31, 2021, 2020 and 2019 was approximately $1,452,000, $1,467,000 and $1,975,000. The lease agreements have maturity dates ranging from May 2022 to May 2026. The weighted average remaining life of the lease term for these leases was 2.44 years as of October 31, 2021. The discount rate used in determining the lease liability for each individual lease was the Company's estimated incremental borrowing rate of 4.95%. The right-of-use asset from operating leases, included in other assets, and operating lease liabilities, included in current and long term liabilities was $2,766,353 as of October 31, 2021. At October 31, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases: 2022 $ 1,245,460 2023 914,750 2024 441,150 2025 237,300 2026 138,425 Total $ 2,977,085 A reconciliation of the undiscounted future payments in the schedule above and the lease liabilities recognized in the consolidated balance sheet as of October 31, 2021, is shown below. Undiscounted future payments $ 2,977,085 Discount effect (210,732) Discounted future payments $ 2,766,353 |
Group Insurance
Group Insurance | 12 Months Ended |
Oct. 31, 2021 | |
Group Insurance [Abstract] | |
Group Insurance | GROUP INSURANCEThe 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, 2021 | |
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, 2021 Total revenues $ 53,444,657 $ 59,659,528 $ 95,642,789 $ 94,688,444 Gross profit (loss) (5,443,665) 1,234,434 8,099,411 12,318,818 Operating income (loss) (6,651,882) 8,438 6,841,602 11,415,877 Net income (loss) (2,992,588) 777,275 $ 10,629,736 16,083,551 Basic & diluted income (loss) per unit $ (0.15) $ 0.04 $ 0.53 $ 0.81 Year ended October 31, 2020 Total revenues $ 57,567,896 $ 35,323,572 $ 44,902,846 $ 56,535,162 Gross profit (loss) 2,605,865 (6,707,483) 2,991,434 6,656,681 Operating income (loss) 1,331,903 (7,729,528) 1,996,857 5,802,880 Net income (loss) 3,414,218 (7,817,408) $ 2,715,403 7,566,450 Basic & diluted income (loss) per unit $ 0.17 $ (0.39) $ 0.14 $ 0.38 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) $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn December, 2021 the Board of Directors declared a $1.75 per unit distribution for members as of record of December 20, 2021 to be paid the end of January 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2021 | |
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 EquivalentsThe 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, 2021 and 2020, there were no other-than-temporary impairments recognized. Mutual funds are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the 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, 2021 2020 2019 Net earnings on marketable securities $ 56,134 $ 410,209 $ 316,000 Marketable Securities As of Cost Fair Market Value October 31, 2021 $ 1,025,000 $ 1,390,000 October 31, 2020 4,835,000 5,113,000 |
Accounts Receivable | 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 |
Revenue and Cost Recognition | Revenue and Cost Recognition The Company records revenue in accordance with ASC Topic 606. 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. The Company has adopted the practical expedient related to the financing component of the contract. The Company applies the five-step method outlined in the guidance to all contracts with customers. The Company generally has a single performance obligation in its arrangements with 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 fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. The Company expenses contract costs when incurred because the amortization period is less than one year. 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, 2021. |
Inventory | InventoryInventories 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. |
Revenue Recognition, Deferred Revenue | Grant Receivable and Deferred RevenueGrant receivables are recorded when the payments to be received can be estimated and when payment is reasonably assured. The Company recorded a grant receivable and corresponding deferred revenue of approximately $1,400,000 associated with an agreement approved in December 2019 for tax increment financing monies associated with the plant expansion that was completed in January 2020 to be received over a 10 year period for the tax increment financing monies. These grants were recorded at their net present value using a discount rate of approximately 5%. Related deferred revenue was recorded and is being amortized into income as a reduction of property taxes over the life of the grant. As of October 31, 2021 the grant receivable was approximately $1,523,000 and was included in long-term other assets and the long-term portions of deferred revenue was approximately $1,196,000. |
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. |
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. The Company is currently under a State of Iowa income tax examination. The Company received a letter in April 2021 that indicates the Iowa Department of Revenue has adjusted the Corporate tax return for 2017 and the Company has been issued an assessment for approximately $1 million. The Company intends to defend its position and protest the notice of assessment. The Company has also elected to conduct the protest and pay any resulting obligation at the corporate level on behalf of its members. |
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 liabilitiesThe 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 liability has been recorded as of October 31, 2021, 2020 or 2019 for environmental liabilities. |
Compensation Related Costs, Policy | 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 2 inputs, of all other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. As of October 31, 2021 the Company believes the carrying value of long-term debt approximates the fair value. |
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 2021 fiscal year, ethanol sales accounted for approximately 79%% of total revenue, distiller grains sales accounted for approximately 16%% of total revenue and corn oil sales accounted for approximately 5% of total revenue while corn costs averaged approximately 89% 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. On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a “Public Health Emergency of International Concern” and on March 11, 2020, declared COVID-19 a pandemic. The impact of COVID-19 has negatively impacted the Company’s operations, suppliers or other vendors, and customer base. Any quarantines, labor shortages or other disruptions to the Company’s operations, or those of their customers, may adversely impact the Company’s revenues, ability to provide its services and operating results. In addition, a significant outbreak of epidemic, pandemic or contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, including the geographical area in which the Company operates, resulting in an economic downturn that could affect demand for its goods and services. The extent to which the coronavirus impacts the Company’s long-term results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and actions taken to contain the coronavirus or its impact, among others. |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. Effective November 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach. There was no impact of adoption for the period ended October 31, 2021. The Company expects the impact of adopting the new standard to be immaterial on an ongoing basis. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Inventory [Abstract] | |
Schedule of Inventory | October 31, 2021 October 31, 2020 Raw Materials $ 14,671,316 $ 4,977,047 Work in Process 2,604,342 1,964,403 Finished Goods 1,356,184 1,405,314 Totals $ 18,631,842 $ 8,346,764 |
Commitments, Contingencies an_2
Commitments, Contingencies and Agreements (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Commitments, Contingencies and Agreements [Abstract] | |
Schedule of Related Party Transactions | 2021 2020 2019 Sales ethanol $ 242,814,000 $ 153,132,000 $ 161,953,000 Sales distiller grains 47,158,000 34,950,000 34,987,000 Sales corn oil 16,990,000 7,999,000 7,685,000 Marketing fees-ethanol 259,000 200,000 243,000 Marketing fees-distiller grains 273,000 247,000 258,000 Marketing fees-corn oil 73,000 62,000 60,000 As of October 31, 2021 October 31, 2020 Amount due from RPMG $ 15,662,000 $ 7,326,000 |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Risk Management [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | 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 $ (1,927,000) $ (995,000) $ (2,922,000) fiscal year 2021 Cost of Goods Sold (6,705,000) (2,614,000) (9,319,000) Total $ (8,632,000) $ (3,609,000) $ (12,241,000) Commodity Contracts for the Revenue $ (1,441,000) $ 198,000 $ (1,243,000) fiscal year 2020 Cost of Goods Sold 1,866,000 (1,342,000) 524,000 Total $ 425,000 $ (1,144,000) $ (719,000) 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 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Balance Sheet Classification October 31, 2021 October 31, 2020 Futures and option contracts In gain position $ 817,000 $ 470,000 In loss position (4,247,000) (290,000) Cash held by broker 4,947,000 683,000 Current Asset $ 1,517,000 $ 863,000 |
Long-term Purchase Commitment | Commitments Through Amount Sale commitments Distiller grains - fixed price November 2022 $ 3,036,000 Corn Oil - fixed price December 2022 4,755,000 Purchase commitments Corn - fixed price October 2022 $ 4,051,000 Natural gas - fixed price March 2024 6,257,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
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, 2021 $ 1,390,000 $ 1,390,000 $ — $ — Assets, October 31, 2020 5,113,000 5,113,000 — — Derivative financial instruments October 31, 2021 Assets $ 817,000 $ 122,000 $ 695,000 $ — Liabilities $ (4,247,000) (1,617,000) (2,630,000) — October 31, 2020 Assets $ 470,000 $ 470,000 $ — Liabilities (290,000) (149,000) (141,000) — |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Investments [Abstract] | |
Schedule of Equity Method 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 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 391,372 $ 285,395 $ 337,643 Other Assets 289,068 246,389 258,655 Current Liabilities 293,458 168,842 224,439 Long-term Debt 38,973 47,529 55,368 Members’ Equity 348,009 315,413 316,491 Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 1,117,485 $ 847,425 $ 776,635 Gross Profit 102,604 58,093 34,731 Net Income 100,927 40,259 25,026 The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions and Guardian Energy, which each represents greater than 10% of the Company's net income for the year ended October 31, 2021. Homeland Energy Solutions Condensed Financial Information Balance Sheet 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 72,672 $49,855 $92,654 Other Assets 125,488 134,837 18,578 Current Liabilities 14,647 13,018 47,436 Long-term Debt 626 11,729 18,574 Members’ Equity 182,887 159,945 165,222 Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 432,479 $ 288,582 $ 313,029 Gross Profit 35,416 24,101 13,093 Net Income 32,626 12,289 10,599 Guardian Energy Condensed Financial Information Balance Sheet 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 34,257 $ 19,089 $ 21,800 Other Assets 27,880 26,309 26,935 Current Liabilities 26,532 10,499 16,379 Long-term Debt 38,347 35,043 36,794 Members' Equity (2,741) (144) (4,439) Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 375,063 $ 340,462 $ 245,656 Gross Profit 42,635 23,303 10,533 Net Income 38,403 17,147 5,215 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated | The following table sets forth the Company’s total assets by operating segment: October 31, 2021 October 31, 2020 October 31, 2019 Total assets: Production $ 138,812,724 $ 114,069,070 $ 104,614,213 Ethanol production investments 400,239,135 358,692,270 406,847,671 All Others 280,201,221 173,092,120 189,450,417 Reconciliation (654,856,543) (506,764,519) (570,881,918) $ 164,396,537 $ 139,088,941 $ 130,030,383 |
Schedule of Segment Reporting Information, by Segment | The following tables set forth certain financial data for the Company’s reportable segments: Twelve Months Ended 2021 2020 2019 Net Sales Production $ 303,435,418 $ 194,329,476 $ 203,793,847 Ethanol production investments 1,102,373,242 827,657,609 762,022,409 All Others 13,957,720 14,354,618 10,779,321 Reconciliation (1,116,330,962) (842,012,227) (772,801,730) Total Net Sales $ 303,435,418 $ 194,329,476 $ 203,793,847 Net Income (Loss) Production $ 13,348,587 $ 2,835,871 $ (3,428,603) Ethanol production investments 96,680,090 12,920,291 22,562,651 All Others 4,211,889 2,463,008 2,265,231 Reconciliation (89,742,592) (12,340,507) (23,111,681) Total Net Income (Loss) $ 24,497,974 $ 5,878,663 $ (1,712,402) Interest Income (Expense) Production $ (197,741) $ 37,494 $ 219,824 Ethanol production investments (1,830,476) (2,448,882) (3,782,929) All Others 2,798,745 2,393,268 2,135,430 Reconciliation (968,269) 55,614 1,647,499 Total Net Interest Income (Expense) $ (197,741) $ 37,494 $ 219,824 Depreciation Expense Production $ 8,649,473 $ 8,710,647 $ 9,921,663 Ethanol production investments 3,299,705 3,740,976 11,126,496 All Others 237,508 382,994 940,898 Reconciliation (3,537,213) (4,123,970) (12,067,394) Total Depreciation $ 8,649,473 $ 8,710,647 $ 9,921,663 Equity in Net Income of Investments Production $ 11,149,386 $ 3,042,793 $ 1,716,200 Ethanol production investments 479,140 291,674 156,182 All Others — — — Reconciliation (479,140) (291,674) (156,182) Total Net Income of Investments $ 11,149,386 $ 3,042,793 $ 1,716,200 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | At October 31, 2021, the Company had the following approximate minimum rental commitments under non-cancelable operating leases: 2022 $ 1,245,460 2023 914,750 2024 441,150 2025 237,300 2026 138,425 Total $ 2,977,085 A reconciliation of the undiscounted future payments in the schedule above and the lease liabilities recognized in the consolidated balance sheet as of October 31, 2021, is shown below. Undiscounted future payments $ 2,977,085 Discount effect (210,732) Discounted future payments $ 2,766,353 |
Quarterly Financial Reporting_2
Quarterly Financial Reporting (Unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
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, 2021 Total revenues $ 53,444,657 $ 59,659,528 $ 95,642,789 $ 94,688,444 Gross profit (loss) (5,443,665) 1,234,434 8,099,411 12,318,818 Operating income (loss) (6,651,882) 8,438 6,841,602 11,415,877 Net income (loss) (2,992,588) 777,275 $ 10,629,736 16,083,551 Basic & diluted income (loss) per unit $ (0.15) $ 0.04 $ 0.53 $ 0.81 Year ended October 31, 2020 Total revenues $ 57,567,896 $ 35,323,572 $ 44,902,846 $ 56,535,162 Gross profit (loss) 2,605,865 (6,707,483) 2,991,434 6,656,681 Operating income (loss) 1,331,903 (7,729,528) 1,996,857 5,802,880 Net income (loss) 3,414,218 (7,817,408) $ 2,715,403 7,566,450 Basic & diluted income (loss) per unit $ 0.17 $ (0.39) $ 0.14 $ 0.38 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) $ — |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Production (Details) | 12 Months Ended | ||
Oct. 31, 2021USD ($)companygal | Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | |
Product Information [Line Items] | |||
Equity Method Investments, Number of Entities | company | 5 | ||
Regulatory Liabilities | $ | $ 0 | $ 0 | $ 0 |
Ethanol [Member] | |||
Product Information [Line Items] | |||
Annual Production Capacity | gal | 120,000,000 | ||
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, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Marketable Securities, Realized Gain (Loss) | $ 56,134 | $ 410,209 | $ 316,000 |
Marketable Securities | 1,389,790 | 5,113,066 | |
Mutual Fund [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Marketable Securities | 1,025,000 | 4,835,000 | |
Marketable Securities | $ 1,390,000 | $ 5,113,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 206,998,272 | $ 191,808,701 |
Gain (Loss) on Disposition of Other Assets | $ 2,608,000 | $ 2,608,000 |
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 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Concentration Risk (Details) | 12 Months Ended |
Oct. 31, 2021 | |
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk | Ethanol [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 79.00% |
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk | Distillers Grains [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 16.00% |
Revenue, Product and Service Benchmark [Member] | Product Concentration Risk | Corn Oil [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 500.00% |
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk | Corn [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 89.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Recent Accounting Pronouncements (Details) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
Accounting Policies [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 2,766,353 | $ 2,324,631 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2019 | |
Accounting Policies [Abstract] | ||||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 0 | |||
Deferred Revenue | 1,196,450 | $ 1,313,177 | $ 1,400,000 | |
Regulatory Liabilities | 0 | 0 | $ 0 | |
Gain (Loss) on Disposition of Other Assets | $ 2,608,000 | $ 2,608,000 | ||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Deferred Revenue/Grant Rec (Details) - USD ($) | Dec. 01, 2019 | Oct. 31, 2021 | Oct. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||||
Deferred Revenue | $ 1,196,450 | $ 1,313,177 | $ 1,400,000 | |
Grants Receivable | 1,523,000 | |||
Contract with Customer, Asset, after Allowance for Credit Loss, Noncurrent | $ 1,196,000 | |||
Tax Incremental Financing [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||
Grant Agreement, Tax Increment Financing Monies, Period [Abstract] | 10 |
Inventory (Details)
Inventory (Details) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
Inventory [Abstract] | ||
Raw Materials | $ 14,671,316 | $ 4,977,047 |
Work in Process | 2,604,342 | 1,964,403 |
Finished Goods | 1,356,184 | 1,405,314 |
Inventory | $ 18,631,842 | $ 8,346,764 |
Bank Financing Long Term Debt (
Bank Financing Long Term Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Feb. 09, 2021 | Apr. 07, 2020 | |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 30 | $ 30 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 324.00% | 324.00% | ||||
Gain (Loss) on Extinguishment of Debt | $ 1,699,041 | $ 0 | $ 0 | |||
Debt Instrument, Interest Rate Terms | LIBOR | |||||
Farm Credit Services of America [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 0 | $ 0 | $ 0 | |||
Debt Instrument, Basis Spread on Variable Rate | 3.15% | |||||
Cresco Union Savings Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 838,000 | $ 860,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 100.00% | 1.00% | ||||
Gain (Loss) on Extinguishment of Debt | 838,000 | |||||
Revolving Credit Facility [Member] | Farm Credit Services of America [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 35,000,000 | $ 35,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Director [Member] - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Purchases from Related Party | $ 53,235,000 | $ 37,269,000 | $ 40,569,000 |
Due to Related Parties | $ 368,000 | $ 593,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation | $ 734,999 | $ 514,409 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 138,000 | $ 153,000 | $ 150,000 |
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% |
Commitments, Contingencies an_3
Commitments, Contingencies and Agreements (Details) - Investee [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | $ 15,662 | $ 7,326 | |
Ethanol [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 242,814 | 153,132 | $ 161,953 |
Related Party Transaction, Expenses from Transactions with Related Party | 259 | 200 | 243 |
Distillers Grains [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 47,158 | 34,950 | 34,987 |
Related Party Transaction, Expenses from Transactions with Related Party | 273 | 247 | 258 |
Corn Oil [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | 16,990 | 7,999 | 7,685 |
Related Party Transaction, Expenses from Transactions with Related Party | $ 73 | $ 62 | $ 60 |
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, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | $ (8,632,000) | $ 425,000 | $ (310,000) |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (3,609,000) | (1,144,000) | 861,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (12,241,000) | (719,000) | 551,000 |
Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | (1,927,000) | (1,441,000) | (154,000) |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (995,000) | 198,000 | (116,000) |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (2,922,000) | (1,243,000) | (270,000) |
Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Realized Gain (Loss) Recognized in Income, Net | (6,705,000) | 1,866,000 | (156,000) |
Derivative Instruments, Unrealized Gain (Loss) Recognized in Income, Net | (2,614,000) | (1,342,000) | 977,000 |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ (9,319,000) | $ 524,000 | $ 821,000 |
Risk Management Derivative In_2
Risk Management Derivative Instruments - Balance Sheet Location (Details) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 1,517,196 | $ 862,516 |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Current | 4,247,000 | 290,000 |
Fair Value, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 817,000 | 470,000 |
Restricted Cash and Cash Equivalents | 4,947,000 | 683,000 |
Derivative Instruments and Hedges, Assets | $ 1,517,000 | $ 863,000 |
Risk Management Long-Term Purch
Risk Management Long-Term Purchase Commitments (Details) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021USD ($)bu | Oct. 31, 2020USD ($)bu | |
Long-term Purchase Commitment [Line Items] | ||
Derivative, Term of Contract | 12 months | |
Inventory Adjustments | $ 0 | $ 0 |
Ethanol [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Product Usage, Percentage, Next Twelve Months | 0.00% | |
Natural Gas [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Product Usage, Percentage, Next Twelve Months | 67.00% | |
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 | 9.00% | |
Derivative, Nonmonetary Notional Amount, Volume | bu | 672,000 | 212,000 |
Financial Instruments, Owned, Physical Commodities, at Fair Value | $ 2,500 | $ 805 |
Distillers Grains [Member] | Fixed-price Contract [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Sale commitments, Remaining Minimum Amount Committed | 3,036 | |
Corn [Member] | Fixed-price Contract [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 4,051 | |
Natural Gas [Member] | Fixed Price [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 6,257 | |
Corn Oil [Member] | Fixed-price Contract [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Sale commitments, Remaining Minimum Amount Committed | 4,755 | |
Affiliated Entity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase Obligation | $ 922 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Oct. 31, 2021 | Oct. 31, 2020 |
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 | $ 1,390,000 | $ 5,113,000 |
Derivative Assets, Current | 817,000 | 470,000 |
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 | 5,113,000 | |
Derivative Assets, Current | 122,000 | 470,000 |
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 | 695,000 | |
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 | (4,247,000) | (290,000) |
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 | (1,617,000) | (149,000) |
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 | (2,630,000) | (141,000) |
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] | ||
Marketable Securities | 1,025,000 | $ 4,835,000 |
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 | $ 1,390,000 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2021 | Sep. 30, 2021 | Oct. 31, 2020 | Sep. 30, 2020 | Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income of investments | $ 11,149,386 | $ 3,042,793 | $ 1,716,200 | ||||||||||||||||
Retained Earnings, Undistributed Earnings from Equity Method Investees | $ 12,373,000 | $ 15,679,000 | 12,373,000 | 15,679,000 | |||||||||||||||
Investments | 60,220,366 | 42,422,107 | 60,220,366 | 42,422,107 | |||||||||||||||
Other Assets | 30,218,222 | 29,248,983 | 30,218,222 | 29,248,983 | |||||||||||||||
Liabilities, Current | 15,998,323 | 11,194,110 | 15,998,323 | 11,194,110 | |||||||||||||||
Investments | 25,583,813 | 25,019,870 | 25,583,813 | 25,019,870 | |||||||||||||||
Revenues | 94,688,444 | $ 95,642,789 | $ 59,659,528 | $ 53,444,657 | 56,535,162 | $ 44,902,846 | $ 35,323,572 | $ 57,567,896 | $ 56,215,030 | $ 51,773,780 | $ 49,608,660 | $ 46,196,377 | 303,435,418 | 194,329,476 | 203,793,847 | ||||
Gross Profit (loss) | 12,318,818 | $ 8,099,411 | $ 1,234,434 | $ (5,443,665) | 6,656,681 | $ 2,991,434 | $ (6,707,483) | $ 2,605,865 | $ 376,732 | $ (1,502,206) | $ 1,570,724 | $ (621,266) | 16,208,998 | 5,546,497 | $ (176,016) | ||||
Members' Equity (19,873,000 units issued and outstanding) | $ 144,835,879 | $ 124,312,505 | $ 144,835,879 | $ 124,312,505 | |||||||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||||||||||||
Schedule of Equity Method 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 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 391,372 $ 285,395 $ 337,643 Other Assets 289,068 246,389 258,655 Current Liabilities 293,458 168,842 224,439 Long-term Debt 38,973 47,529 55,368 Members’ Equity 348,009 315,413 316,491 Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 1,117,485 $ 847,425 $ 776,635 Gross Profit 102,604 58,093 34,731 Net Income 100,927 40,259 25,026 The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions and Guardian Energy, which each represents greater than 10% of the Company's net income for the year ended October 31, 2021. Homeland Energy Solutions Condensed Financial Information Balance Sheet 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 72,672 $49,855 $92,654 Other Assets 125,488 134,837 18,578 Current Liabilities 14,647 13,018 47,436 Long-term Debt 626 11,729 18,574 Members’ Equity 182,887 159,945 165,222 Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 432,479 $ 288,582 $ 313,029 Gross Profit 35,416 24,101 13,093 Net Income 32,626 12,289 10,599 Guardian Energy Condensed Financial Information Balance Sheet 9/30/2021 9/30/2020 9/30/2019 Current Assets $ 34,257 $ 19,089 $ 21,800 Other Assets 27,880 26,309 26,935 Current Liabilities 26,532 10,499 16,379 Long-term Debt 38,347 35,043 36,794 Members' Equity (2,741) (144) (4,439) Twelve Months Ended Income Statement 9/30/2021 9/30/2020 9/30/2019 Revenue $ 375,063 $ 340,462 $ 245,656 Gross Profit 42,635 23,303 10,533 Net Income 38,403 17,147 5,215 | ||||||||||||||||||
Equity Method Investments | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income of investments | $ 100,927,000 | $ 40,259,000 | $ 25,026,000 | ||||||||||||||||
Investments | 391,372,000 | 285,395,000 | $ 337,643,000 | ||||||||||||||||
Other Assets | 289,068,000 | 246,389,000 | 258,655,000 | ||||||||||||||||
Liabilities, Current | 293,458,000 | 168,842,000 | 224,439,000 | ||||||||||||||||
Long-term Debt | 38,973 | 47,529 | 55,368 | ||||||||||||||||
Revenues | 1,117,485,000 | 847,425,000 | 776,635,000 | ||||||||||||||||
Gross Profit (loss) | 102,604,000 | 58,093,000 | 34,731,000 | ||||||||||||||||
Members' Equity (19,873,000 units issued and outstanding) | 348,009,000 | 315,413,000 | $ 316,491,000 | ||||||||||||||||
Homeland Energy Solutions [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income of investments | $ 2,650,000 | 32,626,000 | 12,289,000 | 10,599,000 | |||||||||||||||
Investments | 72,672,000 | 49,855,000 | 92,654,000 | ||||||||||||||||
Other Assets | 125,488,000 | 134,837,000 | 18,578,000 | ||||||||||||||||
Liabilities, Current | 14,647,000 | 13,018,000 | 47,436,000 | ||||||||||||||||
Long-term Debt | 626,000 | 11,729,000 | 18,574,000 | ||||||||||||||||
Revenues | 432,479,000 | 288,582,000 | 313,029,000 | ||||||||||||||||
Gross Profit (loss) | 35,416,000 | 24,101,000 | 13,093,000 | ||||||||||||||||
Members' Equity (19,873,000 units issued and outstanding) | 182,887,000 | 159,945,000 | 165,222,000 | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 1000.00% | 1000.00% | |||||||||||||||||
Guardian Energy [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income of investments | $ 6,181,000 | 38,403,000 | 17,147,000 | 5,215,000 | |||||||||||||||
Investments | 34,257,000 | 19,089,000 | 21,800,000 | ||||||||||||||||
Other Assets | 27,880,000 | 26,309,000 | 26,935,000 | ||||||||||||||||
Liabilities, Current | 26,532,000 | 10,499,000 | 16,379,000 | ||||||||||||||||
Long-term Debt | 38,347,000 | 35,043,000 | 36,794,000 | ||||||||||||||||
Revenues | 375,063,000 | 340,462,000 | 245,656,000 | ||||||||||||||||
Gross Profit (loss) | 42,635,000 | 23,303,000 | 10,533,000 | ||||||||||||||||
Members' Equity (19,873,000 units issued and outstanding) | $ (2,741,000) | $ (144,000) | $ (4,439,000) | ||||||||||||||||
Equity Method Investment, Ownership Percentage | 1000.00% | 1000.00% | |||||||||||||||||
Absolute Energy [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income of investments | $ 1,903,000 | ||||||||||||||||||
Other Equity Investments [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income of investments | $ 415,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net Income | $ 16,083,551 | $ 10,629,736 | $ 777,275 | $ (2,992,588) | $ 7,566,450 | $ 2,715,403 | $ (7,817,408) | $ 3,414,218 | $ (87,706) | $ (1,673,866) | $ 1,228,441 | $ (1,179,271) | $ 24,497,974 | $ 5,878,663 | $ (1,712,402) |
Interest Expense | (197,741) | ||||||||||||||
Interest and Other Income | 37,494 | 219,824 | |||||||||||||
Depreciation | 8,649,473 | 8,710,647 | 9,921,663 | ||||||||||||
Equity in net income of investments | 11,149,386 | 3,042,793 | 1,716,200 | ||||||||||||
Assets | 164,396,537 | 139,088,941 | 130,030,383 | 164,396,537 | 139,088,941 | 130,030,383 | |||||||||
Revenues | 94,688,444 | $ 95,642,789 | $ 59,659,528 | $ 53,444,657 | 56,535,162 | $ 44,902,846 | $ 35,323,572 | $ 57,567,896 | 56,215,030 | $ 51,773,780 | $ 49,608,660 | $ 46,196,377 | 303,435,418 | 194,329,476 | 203,793,847 |
Capital expenditures | 13,587,812 | 6,710,121 | 11,538,228 | ||||||||||||
Investments | 25,583,813 | 25,019,870 | 25,583,813 | 25,019,870 | |||||||||||
Production Segment | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net Income | 13,348,587 | 2,835,871 | (3,428,603) | ||||||||||||
Interest Expense | 197,741 | ||||||||||||||
Interest and Other Income | 37,494 | 219,824 | |||||||||||||
Depreciation | 8,649,473 | 8,710,647 | 9,921,663 | ||||||||||||
Equity in net income of investments | 11,149,386 | 3,042,793 | 1,716,200 | ||||||||||||
Assets | 138,812,724 | 114,069,070 | 104,614,213 | 138,812,724 | 114,069,070 | 104,614,213 | |||||||||
Revenues | 303,435,418 | 194,329,476 | 203,793,847 | ||||||||||||
Capital expenditures | 13,587,812 | 6,710,121 | |||||||||||||
Investments | 25,583,813 | 25,019,870 | 25,583,813 | 25,019,870 | |||||||||||
Ethanol Production Investments Segment | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net Income | 96,680,090 | 12,920,291 | 22,562,651 | ||||||||||||
Interest Expense | 1,830,476 | ||||||||||||||
Interest and Other Income | (2,448,882) | (3,782,929) | |||||||||||||
Depreciation | 3,299,705 | 3,740,976 | 11,126,496 | ||||||||||||
Equity in net income of investments | 479,140 | 291,674 | 156,182 | ||||||||||||
Assets | 400,239,135 | 358,692,270 | 406,847,671 | 400,239,135 | 358,692,270 | 406,847,671 | |||||||||
Revenues | 1,102,373,242 | 827,657,609 | 762,022,409 | ||||||||||||
Capital expenditures | 19,890,620 | 17,847,351 | |||||||||||||
Investments | 2,133,725 | 2,082,316 | 2,133,725 | 2,082,316 | |||||||||||
Other Segments | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net Income | 4,211,889 | 2,463,008 | 2,265,231 | ||||||||||||
Interest Expense | (2,798,745) | ||||||||||||||
Interest and Other Income | 2,393,268 | 2,135,430 | |||||||||||||
Depreciation | 237,508 | 382,994 | 940,898 | ||||||||||||
Equity in net income of investments | 0 | 0 | 0 | ||||||||||||
Assets | 280,201,221 | 173,092,120 | 189,450,417 | 280,201,221 | 173,092,120 | 189,450,417 | |||||||||
Revenues | 13,957,720 | 14,354,618 | 10,779,321 | ||||||||||||
Capital expenditures | 4,724,477 | 3,884,317 | |||||||||||||
Investments | 3,379,269 | 3,499,686 | 3,379,269 | 3,499,686 | |||||||||||
Segment Reconciliation | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Net Income | (89,742,592) | (12,340,507) | (23,111,681) | ||||||||||||
Interest Expense | 968,269 | ||||||||||||||
Interest and Other Income | 55,614 | 1,647,499 | |||||||||||||
Depreciation | (3,537,213) | (4,123,970) | (12,067,394) | ||||||||||||
Equity in net income of investments | (479,140) | (291,674) | (156,182) | ||||||||||||
Assets | (654,856,543) | (506,764,519) | $ (570,881,918) | (654,856,543) | (506,764,519) | (570,881,918) | |||||||||
Revenues | (1,116,330,962) | (842,012,227) | $ (772,801,730) | ||||||||||||
Capital expenditures | (24,615,097) | (21,731,668) | |||||||||||||
Investments | $ (5,512,994) | $ (5,582,002) | $ (5,512,994) | $ (5,582,002) |
Members' Equity (Details)
Members' Equity (Details) | Oct. 31, 2021shares |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Members' Equity, units issued and outstanding | 19,873,000 |
Lease Obligations (Details)
Lease Obligations (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Operating Leased Assets [Line Items] | |||
Operating Lease, Payments | $ 1,452,000 | $ 1,467,000 | $ 1,975,000 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 5 months 8 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 495.00% | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ (210,732) | ||
Operating Lease, Right-of-Use Asset | 2,766,353 | $ 2,324,631 | |
Equipment [Member] | |||
Operating Leased Assets [Line Items] | |||
Lessee, Operating Lease, Liability, to be Paid, Year One | 1,245,460 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 914,750 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 441,150 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 237,300 | ||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 138,425 | ||
Lessee, Operating Lease, Liability, to be Paid | $ 2,977,085 |
Quarterly Financial Reporting_3
Quarterly Financial Reporting (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Quarterly Financial Reported (Unaudited) [Abstract] | |||||||||||||||
Total revenues | $ 94,688,444 | $ 95,642,789 | $ 59,659,528 | $ 53,444,657 | $ 56,535,162 | $ 44,902,846 | $ 35,323,572 | $ 57,567,896 | $ 56,215,030 | $ 51,773,780 | $ 49,608,660 | $ 46,196,377 | $ 303,435,418 | $ 194,329,476 | $ 203,793,847 |
Gross Profit (loss) | 12,318,818 | 8,099,411 | 1,234,434 | (5,443,665) | 6,656,681 | 2,991,434 | (6,707,483) | 2,605,865 | 376,732 | (1,502,206) | 1,570,724 | (621,266) | 16,208,998 | 5,546,497 | (176,016) |
Operating Income (loss) | 11,415,877 | 6,841,602 | 8,438 | (6,651,882) | 5,802,880 | 1,996,857 | (7,729,528) | 1,331,903 | (453,112) | (2,430,563) | 593,600 | (1,592,662) | 11,614,035 | 1,402,112 | (3,882,737) |
Net Income (loss) | $ 16,083,551 | $ 10,629,736 | $ 777,275 | $ (2,992,588) | $ 7,566,450 | $ 2,715,403 | $ (7,817,408) | $ 3,414,218 | $ (87,706) | $ (1,673,866) | $ 1,228,441 | $ (1,179,271) | $ 24,497,974 | $ 5,878,663 | $ (1,712,402) |
Basic & diluted earnings (loss) per unit | $ 0.81 | $ 0.53 | $ 0.04 | $ (0.15) | $ 0.38 | $ 0.14 | $ (0.39) | $ 0.17 | $ 0 | $ (0.08) | $ 0.06 | $ (0.06) |
Subsequent Events (Details)
Subsequent Events (Details) | Dec. 20, 2021$ / shares |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Common Stock, Dividends, Per Share, Declared | $ 1.75 |