U. S. Premium Beef (USPB) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 25, 2017	Apr. 29, 2017
Entity Registrant Name	U. S. Premium Beef, LLC
Entity Central Index Key	1,289,237
Document Type	10-Q
Document Period End Date	Mar. 25, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-30
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	2,017
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	Mar. 25, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 58,645	$ 85,230
Due from affiliates	11	48
Other current assets	20	27
Total current assets	58,676	85,305
Property, plant, and equipment, at cost	223	223
Less accumulated depreciation	191	188
Net property, plant, and equipment	32	35
Investment in National Beef Packing Company, LLC	152,073	143,446
Other assets	103	146
Total assets	210,884	228,932
Current liabilities:
Accounts payable - trade	130	66
Due to affiliates	0	37
Accrued compensation and benefits	1,908	1,690
Other accrued expenses and liabilities	638	253
Patronage notices payable	19	19
Distributions payable	997	1,199
Total current liabilities	3,692	3,264
Long-term liabilities:
Other liabilities	4,316	4,473
Total long-term liabilities	4,316	4,473
Total liabilities	8,008	7,737
Capital shares and equities:
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding	202,876	221,195
Total capital shares and equities	202,876	221,195
Total liabilities and capital shares and equities	$ 210,884	$ 228,932

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares	Mar. 25, 2017	Dec. 31, 2016
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
	Mar. 25, 2017	Mar. 26, 2016
Net sales	$ 0	$ 0
Costs and expenses:
Cost of sales	0	0
Selling, general, and administrative expenses	1,064	751
Depreciation and amortization	3	3
Total costs and expenses	1,067	754
Operating loss	(1,067)	(754)
Other income (expense):
Interest income	9	13
Interest expense	(3)	(3)
Equity interest in net income of National Beef Packing Company, LLC	8,627	3,139
Other, net	10	338
Other income (expense)	8,643	3,487
Net income	$ 7,576	$ 2,733
Class A Units [Member]
Earnings per unit:
Basic	$ 1.03	$ 0.37
Diluted	$ 1.03	$ 0.37
Outstanding weighted-average Class A and Class B units:
Basic	735,385	735,385
Diluted	735,385	735,385
Class B Units [Member]
Earnings per unit:
Basic	$ 9.03	$ 3.26
Diluted	$ 9.03	$ 3.26
Outstanding weighted-average Class A and Class B units:
Basic	755,385	755,385
Diluted	755,385	755,385

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 25, 2017	Mar. 26, 2016
Cash flows from operating activities:
Net income	$ 7,576	$ 2,733
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	3	3
Equity in net income of National Beef Packing Company, LLC	(8,627)	(3,139)
Changes in assets and liabilities:
Due from affiliates	37	57
Other assets	50	36
Accounts payable	64	96
Due to affiliates	(37)	0
Accrued compensation and benefits	61	(298)
Other accrued expenses and liabilities	385	(83)
Net cash used in operating activities	(488)	(595)
Cash flows from financing activities:
Change in overdraft balances	(202)	(42)
Partnership distributions and redemptions	(25,895)	0
Net cash used in financing activities	(26,097)	(42)
Net decrease in cash	(26,585)	(637)
Cash and cash equivalents at beginning of the period	85,230	85,220
Cash and cash equivalents at end of the period	$ 58,645	$ 84,583

1. Interim Financial Statements

1. Interim Financial Statements	3 Months Ended
	Mar. 25, 2017
Quarterly Financial Information Disclosure [Abstract]
Interim Consolidated 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 31, 2016. 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	3 Months Ended
	Mar. 25, 2017
Members' Equity [Abstract]
Members' Capital	The following table represents a reconciliation of Members’ Capital for the twelve week period ended March 25, 2017 (thousands of dollars). Balance at December 31, 2016 $ 221,195 Allocation of net income for the twelve week period ended March 25, 2017 7,576 Member distributions (25,895 ) Balance at March 25, 2017 $ 202,876

3. Earnings Per Unit

3. Earnings Per Unit	3 Months Ended
	Mar. 25, 2017
Earnings per unit:
Earnings Per Unit	Under the LLC structure, earnings of the Company are to be allocated to unitholders based on their proportionate share of underlying equity. Earnings 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 USPB’s net income or net loss to Class A units and the remainder is allocated to Class B units. For the twelve week period ended March 25, 2017 and thirteen week period ended March 26, 2016, 10% of USPB’s net income allocated to the Class A’s and 90% to the Class B’s. The net income allocated to the Class A and Class B units were 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. Earnings Per Unit Calculation 12 weeks ended 13 weeks ended (thousands of dollars, except unit and per unit data) March 25, 2017 March 26, 2016 Basic earnings per unit Net income attributable to USPB unitholders (numerator) Class A $ 758 $ 273 Class B $ 6,818 $ 2,460 Weighted average outstanding units (denominator) Class A 735,385 735,385 Class B 755,385 755,385 Per unit amount Class A $ 1.03 $ .37 Class B $ 9.03 $ 3.26 Diluted earnings per unit Net income attributable to USPB unitholders (numerator) Class A $ 758 $ 273 Class B $ 6,818 $ 2,460 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 $ 1.03 $ .37 Class B $ 9.03 $ 3.26

4. Investment in National Beef

4. Investment in National Beef Packing Company, LLC	3 Months Ended
	Mar. 25, 2017
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 twelve week period ended March 25, 2017 and thirteen week period ended March 26, 2016 (thousands of dollars): 12 weeks ended 13 weeks ended March 25, 2017 March 26, 2016 (unaudited) (unaudited) Net sales $ 1,559,023 $ 1,631,370 Costs and expenses: Cost of sales 1,463,838 1,569,466 Selling, general, and administrative expenses 16,300 16,980 Depreciation and amortization 22,399 22,626 Total costs and expenses 1,502,537 1,609,072 Operating income 56,486 22,298 Other income (expense): Interest income 116 – Interest expense (1,814 ) (3,967 ) Other, net 2,315 3,078 Income before taxes 57,103 21,409 Income tax benefit (expense) 132 (583 ) Net income 57,235 20,826 NBP's net income attributable to USPB $ 8,627 $ 3,139

2. Members' Capital (Tables)

2. Members' Capital (Tables)	3 Months Ended
	Mar. 25, 2017
Members' Equity [Abstract]
Schedule of Reconciliation of Members' Capital	Balance at December 31, 2016 $ 221,195 Allocation of net income for the twelve week period ended March 25, 2017 7,576 Member distributions (25,895 ) Balance at March 25, 2017 $ 202,876

3. Earnings Per Unit (Tables)

3. Earnings Per Unit (Tables)	3 Months Ended
	Mar. 25, 2017
Limited Liability Company (LLC) Members' Equity [Abstract]
Schedule of Income (Loss) Per Unit Calculation	12 weeks ended 13 weeks ended (thousands of dollars, except unit and per unit data) March 25, 2017 March 26, 2016 Basic earnings per unit Net income attributable to USPB unitholders (numerator) Class A $ 758 $ 273 Class B $ 6,818 $ 2,460 Weighted average outstanding units (denominator) Class A 735,385 735,385 Class B 755,385 755,385 Per unit amount Class A $ 1.03 $ .37 Class B $ 9.03 $ 3.26 Diluted earnings per unit Net income attributable to USPB unitholders (numerator) Class A $ 758 $ 273 Class B $ 6,818 $ 2,460 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 $ 1.03 $ .37 Class B $ 9.03 $ 3.26

4. Investment in National Bee12

4. Investment in National Beef Packing Company, LLC (Tables)	3 Months Ended
	Mar. 25, 2017
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Schedule of Operations for NBP	12 weeks ended 13 weeks ended March 25, 2017 March 26, 2016 (unaudited) (unaudited) Net sales $ 1,559,023 $ 1,631,370 Costs and expenses: Cost of sales 1,463,838 1,569,466 Selling, general, and administrative expenses 16,300 16,980 Depreciation and amortization 22,399 22,626 Total costs and expenses 1,502,537 1,609,072 Operating income 56,486 22,298 Other income (expense): Interest income 116 – Interest expense (1,814 ) (3,967 ) Other, net 2,315 3,078 Income before taxes 57,103 21,409 Income tax benefit (expense) 132 (583 ) Net income 57,235 20,826 NBP's net income attributable to USPB $ 8,627 $ 3,139

1. Interim Financial Statemen13

1. Interim Financial Statements (Details Narrative)	Mar. 25, 2017
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	3 Months Ended
	Mar. 25, 2017USD ($)
Members' Equity [Abstract]
Beginning balance	$ 221,195
Net income for the period	7,576
Member distributions	(25,895)
Ending balance	$ 202,876

3. Earnings Per Unit (Details N

3. Earnings Per Unit (Details Narrative)	3 Months Ended
	Mar. 25, 2017
Class A Units [Member]
Class of Stock [Line Items]
Ownership percentage	10.00%
Class B Units [Member]
Class of Stock [Line Items]
Ownership percentage	90.00%

3. Earnings Per Unit (Details)

3. Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 25, 2017	Mar. 26, 2016
Basic earnings per unit
Net income attributable to USPB available to unitholders (numerator)	$ 7,576
Class A Units [Member]
Basic earnings per unit
Net income attributable to USPB available to unitholders (numerator)	$ 758	$ 273
Weighted average outstanding units (denominator)	735,385	735,385
Per unit amount	$ 1.03	$ 0.37
Diluted earnings per unit:
Net income attributable to USPB available to unitholders (numerator)	$ 758	$ 273
Weighted average outstanding
Weighted average outstanding units (denominator)	735,385	735,385
Effect of dilutive securities	0	0
Units (denominator)	735,385	735,385
Per unit amount	$ 1.03	$ 0.37
Class B Units [Member]
Basic earnings per unit
Net income attributable to USPB available to unitholders (numerator)	$ 6,818	$ 2,460
Weighted average outstanding units (denominator)	755,385	755,385
Per unit amount	$ 9.03	$ 3.26
Diluted earnings per unit:
Net income attributable to USPB available to unitholders (numerator)	$ 6,818	$ 2,460
Weighted average outstanding
Weighted average outstanding units (denominator)	755,385	755,385
Effect of dilutive securities	0	0
Units (denominator)	755,385	755,385
Per unit amount	$ 9.03	$ 3.26

4. Investment in National Bee17

4. Investment in National Beef Packing Company, LLC (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 25, 2017	Mar. 26, 2016
Other income (expense):
NBP's net income attributable to USPB	$ 8,627	$ 3,139
National Beef Packing Company, LLC [Member]
Investment in National Beef Packing
Net sales	1,559,023	1,631,370
Costs and expenses:
Cost of sales	1,463,838	1,569,466
Selling, general, and administrative expenses	16,300	16,980
Depreciation and amortization	22,399	22,626
Total costs and expenses	1,502,537	1,609,072
Operating income	56,486	22,298
Other income (expense):
Interest income	116	0
Interest expense	(1,814)	(3,967)
Other, net	2,315	3,078
Income before taxes	57,103	21,409
Income tax benefit (expense)	132	(583)
Net income	57,235	20,826
NBP's net income attributable to USPB	$ 8,627	$ 3,139