U. S. Premium Beef (USPB) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 26, 2016	Apr. 30, 2016
Entity Registrant Name	U. S. Premium Beef, LLC
Entity Central Index Key	1,289,237
Document Type	10-Q
Document Period End Date	Mar. 26, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-26
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016
Class A Units [Member]
Entity Common Stock, Shares Outstanding		735,385
Class B Units [Member]
Entity Common Stock, Shares Outstanding		755,385

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 26, 2016	Dec. 26, 2015
Current assets:
Cash and cash equivalents	$ 84,583	$ 85,220
Due from affiliates	80	137
Other current assets	23	8
Total current assets	84,686	85,365
Property, plant, and equipment, at cost	223	223
Less accumulated depreciation	178	175
Net property, plant, and equipment	45	48
Investment in National Beef Packing Company, LLC	135,767	132,628
Other assets	145	196
Total assets	220,643	218,237
Current liabilities:
Accounts payable - trade	110	14
Accrued compensation and benefits	937	1,066
Other accrued expenses and liabilities	95	179
Patronage notices payable	48	90
Total current liabilities	1,190	1,349
Long-term liabilities:
Other liabilities	4,949	5,118
Total long-term liabilities	4,949	5,118
Total liabilities	$ 6,139	$ 6,467
Commitments and contingencies
Capital shares and equities:
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding	$ 214,504	$ 211,770
Total capital shares and equities	214,504	211,770
Total liabilities and capital shares and equities	$ 220,643	$ 218,237

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares	Mar. 26, 2016	Dec. 26, 2015
Class A Units [Member]
Members' capital, units authorized	735,385	735,385
Members' capital, units issued	735,385	735,385
Members' capital, units outstanding	735,385	735,385
Class B Units [Member]
Members' capital, units authorized	755,385	755,385
Members' capital, units issued	755,385	755,385
Members' capital, units outstanding	755,385	755,385

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2016	Mar. 28, 2015
Net sales
Costs and expenses:
Cost of sales
Selling, general, and administrative expenses	$ 751	$ 806
Depreciation and amortization	3	1
Total costs and expenses	754	807
Operating loss	(754)	(807)
Other income (expense):
Interest income	13	12
Interest expense	(3)	(3)
Equity interest in net income (loss) of National Beef Packing Company, LLC	3,139	(5,054)
Other, net	338	1
Income (loss) before taxes	$ 2,733	$ (5,851)
Income tax expense
Net income (loss)	$ 2,733	$ (5,851)
Class A Units [Member]
Income (loss) per unit:
Basic	$ 0.37	$ (0.80)
Diluted	$ 0.37	$ (0.80)
Outstanding weighted-average Class A and Class B units:
Basic	735,385	735,385
Diluted	735,385	735,385
Class B Units [Member]
Income (loss) per unit:
Basic	$ 3.26	$ (6.97)
Diluted	$ 3.26	$ (6.97)
Outstanding weighted-average Class A and Class B units:
Basic	755,385	755,385
Diluted	755,385	755,385

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2016	Mar. 28, 2015
Cash flows from operating activities:
Net income (loss)	$ 2,733	$ (5,851)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	3	1
Equity in net (income) loss of National Beef Packing Company, LLC	(3,139)	5,054
Changes in assets and liabilities:
Due from affiliates	57	24
Other assets	36	37
Accounts payable	$ 96	85
Due to affiliates		2
Accrued compensation and benefits	$ (298)	(185)
Other accrued expenses and liabilities	(83)	(19)
Net cash used in operating activities	(595)	$ (852)
Cash flows from financing activities:
Change in overdraft balances	(42)
Net cash used in financing activities	(42)
Net decrease in cash	(637)	$ (852)
Cash and cash equivalents at beginning of the period	85,220	92,344
Cash and cash equivalents at end of the period	$ 84,583	$ 91,492

Interim Financial Statements

Interim Financial Statements	3 Months Ended
	Mar. 26, 2016
Quarterly Financial Information Disclosure [Abstract]
Interim Financial Statements	(1) Interim Financial Statements Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), for interim financial information; therefore, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. For further information, refer to the audited Consolidated Financial Statements and Notes to Consolidated Financial Statements, which are included in the Company’s Annual Report on Form 10-K on file with the Securities and Exchange Commission (SEC), for the fiscal year ended December 26, 2015. The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year. USPB’s 15.0729% investment in NBP is accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control.

Members' Capital

Members' Capital	3 Months Ended
	Mar. 26, 2016
Members' Equity [Abstract]
Members' Capital	(2) Members’ Capital The following table represents a reconciliation of Members’ Capital for the thirteen week period ended March 26, 2016 (thousands of dollars). Balance at December 26, 2015 $ 211,770 Allocation of net income for the thirteen week period ended March 26, 2016 2,733 Balance at March 26, 2016 $ 214,504

Income (Loss) Attributable to U

Income (Loss) Attributable to USPB Per Unit	3 Months Ended
	Mar. 26, 2016
Limited Liability Company (LLC) Members' Equity [Abstract]
Income (Loss) Attributable to USPB Per Unit	(3) Income (Loss) Attributable to USPB Per Unit Under the LLC structure, earnings of the Company are to be allocated to unitholders based on their proportionate share of underlying equity, and, as a result, income attributable to USPB per unit (EPU) has been presented in the accompanying Statements of Operations and in the table that follows. Basic EPU excludes dilution and is computed by first allocating a portion of net income (loss) attributable to USPB to Class A units and the remainder is allocated to Class B units. For the thirteen week periods ended March 26, 2016 and March 28, 2015, net income (loss) was allocated 10% to the Class A’s and 90% to the Class B’s. The net income (loss) allocated to the Class A and Class B units is then divided by the weighted-average number of Class A and Class B units outstanding for the period to determine the basic EPU for each respective class of unit. Diluted EPU reflects the potential dilution that could occur to the extent that any outstanding dilutive Class A or Class B units were exercised. There are no potentially dilutive Class A or Class B units outstanding. Income (Loss) Per Unit Calculation 13 weeks ended 13 weeks ended (thousands of dollars, except unit and per unit data) March 26, 2016 March 28, 2015 Basic earnings per unit Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 273 $ (585) Class B $ 2,460 $ (5,266) Weighted average outstanding units (denominator) Class A 735,385 735,385 Class B 755,385 755,385 Per unit amount Class A $ 0.37 $ (0.80) Class B $ 3.26 $ (6.97) Diluted earnings per unit: Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 273 $ (585) Class B $ 2,460 $ (5,266) Weighted average outstanding Class A units 735,385 735,385 Effect of dilutive securities - Class A unit options - - Units (denominator) 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 Effect of dilutive securities - Class B unit options - - Units (denominator) 755,385 755,385 Per unit amount Class A $ 0.37 $ (0.80) Class B $ 3.26 $ (6.97)

Investment in National Beef Pac

Investment in National Beef Packing Company, LLC	3 Months Ended
	Mar. 26, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Investment in National Beef Packing Company, LLC	(4) Investment in National Beef Packing Company, LLC USPB’s investment in NBP is accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. Below is a summary of the results of operations for NBP for the thirteen week periods ended March 26, 2016 and March 28, 2015 (thousands of dollars): 13 weeks ended 13 weeks ended March 26, 2016 March 28, 2015 Net sales $ 1,631,370 $ 1,852,309 Costs and expenses: Cost of sales 1,569,465 1,848,157 Selling, general, and administrative expenses 16,980 15,241 Depreciation and amortization 22,626 21,787 Total costs and expenses 1,609,071 1,885,185 Operating income (loss) 22,299 (32,876) Other income (expense): Interest income - 17 Interest expense (3,967) (4,416) Other, net 3,077 3,690 Income (loss) before taxes 21,409 (33,585) Income tax (expense) benefit (583) 54 Net income (loss) 20,826 (33,531) NBP's net income (loss) attributable to USPB $ 3,139 $ (5,054)

Members' Capital (Tables)

Members' Capital (Tables)	3 Months Ended
	Mar. 26, 2016
Members' Equity [Abstract]
Schedule of Reconciliation of Members' Capital	The following table represents a reconciliation of Members’ Capital for the thirteen week period ended March 26, 2016 (thousands of dollars). Balance at December 26, 2015 $ 211,770 Allocation of net income for the thirteen week period ended March 26, 2016 2,733 Balance at March 26, 2016 $ 214,504

Income (Loss) Attributable to11

Income (Loss) Attributable to USPB Per Unitt (Tables)	3 Months Ended
	Mar. 26, 2016
Limited Liability Company (LLC) Members' Equity [Abstract]
Schedule of Income (Loss) Per Unit Calculation	Diluted EPU reflects the potential dilution that could occur to the extent that any outstanding dilutive Class A or Class B units were exercised. There are no potentially dilutive Class A or Class B units outstanding. Income (Loss) Per Unit Calculation 13 weeks ended 13 weeks ended (thousands of dollars, except unit and per unit data) March 26, 2016 March 28, 2015 Basic earnings per unit Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 273 $ (585) Class B $ 2,460 $ (5,266) Weighted average outstanding units (denominator) Class A 735,385 735,385 Class B 755,385 755,385 Per unit amount Class A $ 0.37 $ (0.80) Class B $ 3.26 $ (6.97) Diluted earnings per unit: Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 273 $ (585) Class B $ 2,460 $ (5,266) Weighted average outstanding Class A units 735,385 735,385 Effect of dilutive securities - Class A unit options - - Units (denominator) 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 Effect of dilutive securities - Class B unit options - - Units (denominator) 755,385 755,385 Per unit amount Class A $ 0.37 $ (0.80) Class B $ 3.26 $ (6.97)

Investment in National Beef P12

Investment in National Beef Packing Company, LLC (Tables)	3 Months Ended
	Mar. 26, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Schedule of Operations for NBP	Below is a summary of the results of operations for NBP for the thirteen week periods ended March 26, 2016 and March 28, 2015 (thousands of dollars): 13 weeks ended 13 weeks ended March 26, 2016 March 28, 2015 Net sales $ 1,631,370 $ 1,852,309 Costs and expenses: Cost of sales 1,569,465 1,848,157 Selling, general, and administrative expenses 16,980 15,241 Depreciation and amortization 22,626 21,787 Total costs and expenses 1,609,071 1,885,185 Operating income (loss) 22,299 (32,876) Other income (expense): Interest income - 17 Interest expense (3,967) (4,416) Other, net 3,077 3,690 Income (loss) before taxes 21,409 (33,585) Income tax (expense) benefit (583) 54 Net income (loss) 20,826 (33,531) NBP's net income (loss) attributable to USPB $ 3,139 $ (5,054)

Interim Financial Statements (D

Interim Financial Statements (Details Narrative)	Mar. 26, 2016
Quarterly Financial Information Disclosure [Abstract]
Remaining membership interests in National Beef Packing Company, LLC (NBP)	15.0729%

Members' Capital (Details)

Members' Capital (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2016USD ($)
Members' Equity [Abstract]
Beginning balance	$ 211,770
Allocation of net income for the thirteen week period ended March 26, 2016	2,733
Ending balance	$ 214,504

Income (Loss) Attributable to15

Income (Loss) Attributable to USPB Per Unit (Details Narrative)	3 Months Ended
	Mar. 26, 2016	Mar. 28, 2015
Class A Units [Member]
Class of Stock [Line Items]
Ownership percentage	10.00%	10.00%
Class B Units [Member]
Class of Stock [Line Items]
Ownership percentage	90.00%	90.00%

Income (Loss) Attributable to16

Income (Loss) Attributable to USPB Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 26, 2016	Mar. 28, 2015
Basic earnings per unit
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 2,733
Class A Units [Member]
Basic earnings per unit
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 273	$ (585)
Weighted average outstanding units (denominator)	735,385	735,385
Per unit amount	$ 0.37	$ (0.80)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 273	$ (585)
Weighted average outstanding
Weighted average outstanding units (denominator)	735,385	735,385
Effect of dilutive securities
Units (denominator)	735,385	735,385
Per unit amount	$ 0.37	$ (0.80)
Class B Units [Member]
Basic earnings per unit
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 2,460	$ (5,266)
Weighted average outstanding units (denominator)	755,385	755,385
Per unit amount	$ 3.26	$ (6.97)
Diluted earnings per unit:
Net income (loss) attributable to USPB available to unitholders (numerator)	$ 2,460	$ (5,266)
Weighted average outstanding
Weighted average outstanding units (denominator)	755,385	755,385
Effect of dilutive securities
Units (denominator)	755,385	755,385
Per unit amount	$ 3.26	$ (6.97)

Investment in National Beef P17

Investment in National Beef Packing Company, LLC (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2016	Mar. 28, 2015
Schedule of Investments [Line Items]
Net sales
Costs and expenses:
Cost of sales
Selling, general, and administrative expenses	$ 751	$ 806
Depreciation and amortization	3	1
Total costs and expenses	754	807
Operating income (loss)	(754)	(807)
Other income (expense):
Interest income	13	12
Interest expense	(3)	(3)
Other, net	338	1
Income (loss) before taxes	$ 2,733	$ (5,851)
Income tax (expense) benefit
National Beef Packing Company, LLC [Member]
Schedule of Investments [Line Items]
Net sales	$ 1,631,370	$ 1,852,309
Costs and expenses:
Cost of sales	1,569,465	1,848,157
Selling, general, and administrative expenses	16,980	15,241
Depreciation and amortization	22,626	21,787
Total costs and expenses	1,609,071	1,885,185
Operating income (loss)	$ 22,299	(32,876)
Other income (expense):
Interest income		17
Interest expense	$ (3,967)	(4,416)
Other, net	3,077	3,690
Income (loss) before taxes	21,409	(33,585)
Income tax (expense) benefit	(583)	(54)
Net income (loss)	20,826	(33,531)
NBP's net income (loss) attributable to USPB	$ 3,139	$ (5,054)