Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 24, 2016 | Oct. 29, 2016 | |
Entity Registrant Name | U. S. Premium Beef, LLC | |
Entity Central Index Key | 1,289,237 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 24, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
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 | Q3 | |
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 (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 24, 2016 | Dec. 26, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 96,295 | $ 85,220 |
Due from affiliates | 146 | 137 |
Other current assets | 11 | 8 |
Total current assets | 96,452 | 85,365 |
Property, plant, and equipment, at cost | 223 | 223 |
Less accumulated depreciation | 185 | 175 |
Net property, plant, and equipment | 38 | 48 |
Investment in National Beef Packing Company, LLC | 148,211 | 132,628 |
Other assets | 145 | 196 |
Total assets | 244,846 | 218,237 |
Current liabilities: | ||
Accounts payable - trade | 6 | 14 |
Due to affiliates | 47 | 0 |
Accrued compensation and benefits | 1,220 | 1,066 |
Other accrued expenses and liabilities | 89 | 179 |
Patronage notices payable | 19 | 90 |
Total current liabilities | 1,381 | 1,349 |
Long-term liabilities: | ||
Other liabilities | 4,792 | 5,118 |
Total long-term liabilities | 4,792 | 5,118 |
Total liabilities | 6,173 | 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 | 238,673 | 211,770 |
Total capital shares and equities | 238,673 | 211,770 |
Total liabilities and capital shares and equities | $ 244,846 | $ 218,237 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 24, 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 726 | 430 | 2,281 | 1,616 |
Depreciation and amortization | 3 | 2 | 10 | 4 |
Total costs and expenses | 729 | 432 | 2,291 | 1,620 |
Operating loss | (729) | (432) | (2,291) | (1,620) |
Other income (expense): | ||||
Interest income | 11 | 11 | 35 | 34 |
Interest expense | (3) | (3) | (9) | (9) |
Equity interest in net income (loss) of National Beef Packing Company, LLC | 16,270 | (4,856) | 28,800 | (11,361) |
Other, net | 21 | 2 | 367 | 2 |
Income (loss) before taxes | 15,570 | (5,278) | 26,902 | (12,954) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | $ 15,570 | $ (5,278) | $ 26,902 | $ (12,954) |
Class A Units [Member] | ||||
Income (loss) per unit: | ||||
Basic | $ 2.12 | $ (.72) | $ 3.66 | $ (1.76) |
Diluted | $ 2.12 | $ (0.72) | $ 3.66 | $ (1.76) |
Outstanding weighted-average Class A and Class B units: | ||||
Basic | 735,385 | 735,385 | 735,385 | 735,385 |
Diluted | 735,385 | 735,385 | 735,385 | 735,385 |
Class B Units [Member] | ||||
Income (loss) per unit: | ||||
Basic | $ 18.55 | $ (6.29) | $ 32.05 | $ (15.43) |
Diluted | $ 18.55 | $ (6.29) | $ 32.05 | $ (15.43) |
Outstanding weighted-average Class A and Class B units: | ||||
Basic | 755,385 | 755,385 | 755,385 | 755,385 |
Diluted | 755,385 | 755,385 | 755,385 | 755,385 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 26,902 | $ (12,954) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 10 | 4 |
Equity in net (income) loss of National Beef Packing Company, LLC | (28,800) | 11,361 |
Changes in assets and liabilities: | ||
Due from affiliates | (9) | (14) |
Other assets | 49 | 50 |
Accounts payable | (8) | (7) |
Due to affiliates | 47 | 2 |
Accrued compensation and benefits | (172) | (946) |
Other accrued expenses and liabilities | (89) | (69) |
Net cash used in operating activities | (2,070) | (2,573) |
Cash flows from investing activities: | ||
Capital expenditures | 0 | (22) |
Distribution from National Beef Packing Company, LLC | 13,216 | 0 |
Net cash provided by (used in) investing activities | 13,216 | (22) |
Cash flows from financing activities: | ||
Change in overdraft balances | (71) | 0 |
Net cash used in financing activities | (71) | 0 |
Net increase (decrease) in cash | 11,075 | (2,595) |
Cash and cash equivalents at beginning of the period | 85,220 | 92,344 |
Cash and cash equivalents at end of the period | $ 96,295 | $ 89,749 |
1. Interim Financial Statements
1. Interim Financial Statements | 9 Months Ended |
Sep. 24, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
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. |
2. Members' Capital
2. Members' Capital | 9 Months Ended |
Sep. 24, 2016 | |
Members' Equity [Abstract] | |
Members' Capital | The following table represents a reconciliation of Members’ Capital for the thirty-nine week period ended September 24, 2016 (thousands of dollars). Balance at December 26, 2015 $ 211,770 Net income for the thirty-nine week period ended September 24, 2016 26,902 Balance at September 24, 2016 $ 238,673 |
3. Income (Loss) Attributable t
3. Income (Loss) Attributable to USPB Per Unit | 9 Months Ended |
Sep. 24, 2016 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
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 and thirty-nine week periods ended September 24, 2016 and September 26, 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 39 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 24, 2016 September 26, 2015 September 24, 2016 September 26, 2015 Basic earnings per unit Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 1,557 $ (527 ) $ 2,690 $ (1,295 ) Class B $ 14,013 $ (4,751 ) $ 24,212 $ (11,659 ) Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 735,385 Class B 755,385 755,385 755,385 755,385 Per unit amount Class A $ 2.12 $ (0.72 ) $ 3.66 $ (1.76 ) Class B $ 18.55 $ (6.29 ) $ 32.05 $ (15.43 ) Diluted earnings per unit: Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 1,557 $ (527 ) $ 2,690 $ (1,295 ) Class B $ 14,013 $ (4,751 ) $ 24,212 $ (11,659 ) Weighted average outstanding Class A units 735,385 735,385 735,385 735,385 Effect of dilutive securities - Class A unit options – – – – Units (denominator) 735,385 735,385 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 755,385 755,385 Effect of dilutive securities - Class B unit options – – – – Units (denominator) 755,385 755,385 755,385 755,385 Per unit amount Class A $ 2.12 $ (0.72 ) $ 3.66 $ (1.76 ) Class B $ 18.55 $ (6.29 ) $ 32.05 $ (15.43 ) |
4. Investment in National Beef
4. Investment in National Beef Packing Company, LLC | 9 Months Ended |
Sep. 24, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
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 and thirty-nine week periods ended September 24, 2016 and September 26, 2015 (thousands of dollars): 13 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended September 24, 2016 September 26, 2015 September 24, 2016 September 26, 2015 Net sales $ 1,746,839 $ 1,863,040 $ 5,175,592 $ 5,709,835 Costs and expenses: Cost of sales 1,595,672 1,849,023 4,856,046 5,658,679 Selling, general, and administrative expenses 17,035 15,485 51,929 46,882 Depreciation and amortization 23,100 22,528 68,511 66,397 Total costs and expenses 1,635,807 1,887,036 4,976,486 5,771,958 Operating income (loss) 111,032 (23,996 ) 199,106 (62,123 ) Other income (expense): Interest income 51 3 114 20 Interest expense (2,965 ) (3,902 ) (10,728 ) (12,619 ) Other, net 149 (3,786 ) 4,040 56 Income (loss) before taxes 108,267 (31,681 ) 192,532 (74,666 ) Income tax expense (327 ) (538 ) (1,462 ) (710 ) Net income (loss) 107,940 (32,219 ) 191,070 (75,376 ) NBP's net income (loss) attributable to USPB $ 16,270 $ (4,856 ) $ 28,800 $ (11,361 ) |
5. Subsequent Events
5. Subsequent Events | 9 Months Ended |
Sep. 24, 2016 | |
Subsequent Events [Abstract] | |
5. Subsequent Events | On October 24, 2016, USPB received an $11.3 million discretionary distribution from NBP. |
2. Members' Capital (Tables)
2. Members' Capital (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Members' Equity [Abstract] | |
Schedule of Reconciliation of Members' Capital | Balance at December 26, 2015 $ 211,770 Net income for the thirty-nine week period ended September 24, 2016 26,902 Balance at September 24, 2016 $ 238,673 |
3. Income (Loss) Attributable12
3. Income (Loss) Attributable to USPB Per Unit (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
Schedule of Income (Loss) Per Unit Calculation | 13 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 24, 2016 September 26, 2015 September 24, 2016 September 26, 2015 Basic earnings per unit Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 1,557 $ (527 ) $ 2,690 $ (1,295 ) Class B $ 14,013 $ (4,751 ) $ 24,212 $ (11,659 ) Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 735,385 Class B 755,385 755,385 755,385 755,385 Per unit amount Class A $ 2.12 $ (0.72 ) $ 3.66 $ (1.76 ) Class B $ 18.55 $ (6.29 ) $ 32.05 $ (15.43 ) Diluted earnings per unit: Net income (loss) attributable to USPB available to unitholders (numerator) Class A $ 1,557 $ (527 ) $ 2,690 $ (1,295 ) Class B $ 14,013 $ (4,751 ) $ 24,212 $ (11,659 ) Weighted average outstanding Class A units 735,385 735,385 735,385 735,385 Effect of dilutive securities - Class A unit options – – – – Units (denominator) 735,385 735,385 735,385 735,385 Weighted average outstanding Class B units 755,385 755,385 755,385 755,385 Effect of dilutive securities - Class B unit options – – – – Units (denominator) 755,385 755,385 755,385 755,385 Per unit amount Class A $ 2.12 $ (0.72 ) $ 3.66 $ (1.76 ) Class B $ 18.55 $ (6.29 ) $ 32.05 $ (15.43 ) |
4. Investment in National Bee13
4. Investment in National Beef Packing Company, LLC (Tables) | 9 Months Ended |
Sep. 24, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Operations for NBP | 13 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended September 24, 2016 September 26, 2015 September 24, 2016 September 26, 2015 Net sales $ 1,746,839 $ 1,863,040 $ 5,175,592 $ 5,709,835 Costs and expenses: Cost of sales 1,595,672 1,849,023 4,856,046 5,658,679 Selling, general, and administrative expenses 17,035 15,485 51,929 46,882 Depreciation and amortization 23,100 22,528 68,511 66,397 Total costs and expenses 1,635,807 1,887,036 4,976,486 5,771,958 Operating income (loss) 111,032 (23,996 ) 199,106 (62,123 ) Other income (expense): Interest income 51 3 114 20 Interest expense (2,965 ) (3,902 ) (10,728 ) (12,619 ) Other, net 149 (3,786 ) 4,040 56 Income (loss) before taxes 108,267 (31,681 ) 192,532 (74,666 ) Income tax expense (327 ) (538 ) (1,462 ) (710 ) Net income (loss) 107,940 (32,219 ) 191,070 (75,376 ) NBP's net income (loss) attributable to USPB $ 16,270 $ (4,856 ) $ 28,800 $ (11,361 ) |
1. Interim Financial Statemen14
1. Interim Financial Statements (Details Narrative) | Sep. 24, 2016 |
Quarterly Financial Information Disclosure [Abstract] | |
Remaining membership interests in National Beef Packing Company, LLC (NBP) | 15.0729% |
2. Members' Capital (Details)
2. Members' Capital (Details) $ in Thousands | 9 Months Ended |
Sep. 24, 2016USD ($) | |
Members' Equity [Abstract] | |
Beginning balance | $ 211,770 |
Net income for the period | 26,902 |
Ending balance | $ 238,673 |
3. Income (Loss) Attributable16
3. Income (Loss) Attributable to USPB Per Unit (Details Narrative) | 9 Months Ended | |
Sep. 24, 2016 | Sep. 26, 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% |
3. Income (Loss) Attributable17
3. Income (Loss) Attributable to USPB Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Basic earnings per unit | ||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 26,902 | |||
Class A Units [Member] | ||||
Basic earnings per unit | ||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 1,557 | $ (527) | $ 2,690 | $ (1,295) |
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | $ 2.12 | $ (.72) | $ 3.66 | $ (1.76) |
Diluted earnings per unit: | ||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 1,557 | $ (527) | $ 2,690 | $ (1,295) |
Weighted average outstanding | ||||
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Effect of dilutive securities | 0 | 0 | 0 | |
Units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | $ 2.12 | $ (0.72) | $ 3.66 | $ (1.76) |
Class B Units [Member] | ||||
Basic earnings per unit | ||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 14,013 | $ (4,751) | $ 24,212 | $ (11,659) |
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | $ 18.55 | $ (6.29) | $ 32.05 | $ (15.43) |
Diluted earnings per unit: | ||||
Net income (loss) attributable to USPB available to unitholders (numerator) | $ 14,013 | $ (4,751) | $ 24,212 | $ (11,659) |
Weighted average outstanding | ||||
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | $ 18.55 | $ (6.29) | $ 32.05 | $ (15.43) |
4. Investment in National Bee18
4. Investment in National Beef Packing Company, LLC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Sep. 24, 2016 | Sep. 26, 2015 | |
Other income (expense): | ||||
NBP's net income (loss) attributable to USPB | $ 16,270 | $ (4,856) | $ 28,800 | $ (11,361) |
National Beef Packing Company, LLC [Member] | ||||
Investment in National Beef Packing | ||||
Net sales | 1,746,839 | 1,863,040 | 5,175,592 | 5,709,835 |
Costs and expenses: | ||||
Cost of sales | 1,595,672 | 1,849,023 | 4,856,046 | 5,658,679 |
Selling, general, and administrative expenses | 17,035 | 15,485 | 51,929 | 46,882 |
Depreciation and amortization | 23,100 | 22,528 | 68,511 | 66,397 |
Total costs and expenses | 1,635,807 | 1,887,036 | 4,976,486 | 5,771,958 |
Operating income (loss) | 111,032 | (23,996) | 199,106 | (62,123) |
Other income (expense): | ||||
Interest income | 51 | 3 | 114 | 20 |
Interest expense | (2,965) | (3,902) | (10,728) | (12,619) |
Other, net | 149 | (3,786) | 4,040 | 56 |
Income (loss) before taxes | 108,267 | (31,681) | 192,532 | (74,666) |
Income tax expense | (327) | (538) | (1,462) | (710) |
Net income (loss) | 107,940 | (32,219) | 191,070 | (75,376) |
NBP's net income (loss) attributable to USPB | $ 16,270 | $ (4,856) | $ 28,800 | $ (11,361) |