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 |