U. S. Premium Beef (USPB) 10-Q 3 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 24, 2017	Jul. 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	Jun. 24, 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	Q2
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

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 24, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 67,697	$ 85,230
Due from affiliates	262	48
Other current assets	19	27
Total current assets	67,978	85,305
Property, plant, and equipment, at cost	224	223
Less accumulated depreciation	195	188
Net property, plant, and equipment	29	35
Investment in National Beef Packing Company, LLC	151,606	143,446
Other assets	103	146
Total assets	219,716	228,932
Current liabilities:
Accounts payable - trade	3	66
Due to affiliates	25	37
Accrued compensation and benefits	1,349	1,690
Other accrued expenses and liabilities	192	253
Distributions and patronage notices payable	90	1,218
Total current liabilities	1,659	3,264
Long-term liabilities:
Other liabilities	4,226	4,473
Total long-term liabilities	4,226	4,473
Total liabilities	5,885	7,737
Capital shares and equities:
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding	213,831	221,195
Total capital shares and equities	213,831	221,195
Total liabilities and capital shares and equities	$ 219,716	$ 228,932

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - shares	Jun. 24, 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

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Net sales	$ 0	$ 0	$ 0	$ 0
Costs and expenses:
Cost of sales	0	0	0	0
Selling, general, and administrative expenses	837	804	1,901	1,555
Depreciation and amortization	3	4	6	7
Total costs and expenses	840	808	1,907	1,562
Operating loss	(840)	(808)	(1,907)	(1,562)
Other income (expense):
Interest income	61	11	71	24
Interest expense	(3)	(3)	(6)	(6)
Equity interest in net income of National Beef Packing Company, LLC	11,748	9,391	20,375	12,530
Other, net	(12)	8	(2)	346
Other income (expense)	11,794	9,407	20,438	12,894
Comprehensive income	$ 10,954	$ 8,599	$ 18,531	$ 11,332
Class A Units [Member]
Earnings per unit:
Basic	$ 1.49	$ 1.17	$ 2.52	$ 1.54
Diluted	$ 1.49	$ 1.17	$ 2.52	$ 1.54
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]
Earnings per unit:
Basic	$ 13.05	$ 10.25	$ 22.08	$ 13.50
Diluted	$ 13.05	$ 10.25	$ 22.08	$ 13.50
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

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 24, 2017	Jun. 25, 2016
Cash flows from operating activities:
Comprehensive income	$ 18,531	$ 11,332
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	6	7
Equity in net income of National Beef Packing Company, LLC	(20,375)	(12,530)
Changes in assets and liabilities:
Due from affiliates	(214)	31
Other assets	50	39
Accounts payable	(63)	(12)
Due to affiliates	(12)	0
Accrued compensation and benefits	(588)	(246)
Other accrued expenses and liabilities	(61)	10
Net cash used in operating activities	(2,726)	(1,369)
Cash flows from investing activities:
Distribution from National Beef Packing Company, LLC	12,216	4,904
Net cash provided by investing activities	12,216	4,904
Cash flows from financing activities:
Change in overdraft balances	(1,128)	(69)
Partnership distributions and redemptions	(25,895)	0
Net cash used in financing activities	(27,023)	(69)
Net decrease in cash	(17,533)	3,466
Cash and cash equivalents at beginning of the period	85,230	85,220
Cash and cash equivalents at end of the period	$ 67,697	$ 88,686

1. Interim Financial Statements

1. Interim Financial Statements	6 Months Ended
	Jun. 24, 2017
Quarterly Financial Information Disclosure [Abstract]
Interim Financial Statements	Basis of Presentation The accompanying unaudited 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 Financial Statements and Notes to Financial Statements, which are included in the Company’s Annual Report on Form 10-K on file with the Securities and Exchange Commission, 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	6 Months Ended
	Jun. 24, 2017
Members' Equity [Abstract]
Members' Capital	The following table represents a reconciliation of Members’ Capital for the twenty-five week period ended June 24, 2017 (thousands of dollars). Balance at December 31, 2016 $ 221,195 Allocation of comprehensive income for the twenty-five week period ended June 24, 2017 18,531 Member distributions (25,895 ) Balance at June 24, 2017 $ 213,831

3. Earnings Per Unit

3. Earnings Per Unit	6 Months Ended
	Jun. 24, 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 comprehensive income or loss to Class A units and the remainder to Class B units. For the thirteen week periods ended June, 24, 2017 and June 25, 2016 and the twenty-five week period ended June 24, 2017 and twenty-six week period ended June 25, 2016, 10% of USPB’s comprehensive income allocated to the Class A’s and 90% to the Class B’s. The comprehensive 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 13 weeks ended 13 weeks ended 25 weeks ended 26 weeks ended (thousands of dollars, except unit and per unit data) June 24, 2017 June 25, 2016 June 24, 2017 June 25, 2016 Basic and diluted earnings per unit Comprehensive income attributable to USPB unitholders (numerator) Class A $ 1,095 $ 860 $ 1,853 $ 1,133 Class B $ 9,859 $ 7,739 $ 16,678 $ 10,199 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 $ 1.49 $ 1.17 $ 2.52 $ 1.54 Class B $ 13.05 $ 10.25 $ 22.08 $ 13.50

4. Investment in National Beef

4. Investment in National Beef Packing Company, LLC	6 Months Ended
	Jun. 24, 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’s thirteen week periods ended June, 24, 2017 and June 25, 2016 and the twenty-five week period ended June 24, 2017 and twenty-six week period ended June 25, 2016 (thousands of dollars): 13 weeks ended 13 weeks ended 25 weeks ended 26 weeks ended June 24, 2017 June 25, 2016 June 24, 2017 June 25, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 1,874,494 $ 1,797,383 $ 3,433,517 $ 3,428,753 Costs and expenses: Cost of sales 1,750,570 1,690,908 3,214,409 3,260,373 Selling, general, and administrative expenses 19,810 17,914 36,111 34,894 Depreciation and amortization 24,460 22,785 46,858 45,411 Total costs and expenses 1,794,840 1,731,607 3,297,378 3,340,678 Operating income 79,654 65,776 136,139 88,075 Other income (expense): Interest income 57 63 173 63 Interest expense (2,256 ) (3,796 ) (4,070 ) (7,763 ) Other, net 970 813 3,286 3,890 Income before taxes 78,425 62,856 135,528 84,265 Income tax benefit (expense) (483 ) (552 ) (351 ) (1,135 ) Net income $ 77,942 $ 62,304 $ 135,177 $ 83,130 NBP's net income attributable to USPB $ 11,748 $ 9,391 $ 20,375 $ 12,530

2. Members' Capital (Tables)

2. Members' Capital (Tables)	6 Months Ended
	Jun. 24, 2017
Members' Equity [Abstract]
Schedule of Reconciliation of Members' Capital	Balance at December 31, 2016 $ 221,195 Allocation of comprehensive income for the twenty-five week period ended June 24, 2017 18,531 Member distributions (25,895 ) Balance at June 24, 2017 $ 213,831

3. Earnings Per Unit (Tables)

3. Earnings Per Unit (Tables)	6 Months Ended
	Jun. 24, 2017
Limited Liability Company (LLC) Members' Equity [Abstract]
Schedule of Income (Loss) Per Unit Calculation	Earnings Per Unit Calculation 13 weeks ended 13 weeks ended 25 weeks ended 26 weeks ended (thousands of dollars, except unit and per unit data) June 24, 2017 June 25, 2016 June 24, 2017 June 25, 2016 Basic and diluted earnings per unit Comprehensive income attributable to USPB unitholders (numerator) Class A $ 1,095 $ 860 $ 1,853 $ 1,133 Class B $ 9,859 $ 7,739 $ 16,678 $ 10,199 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 $ 1.49 $ 1.17 $ 2.52 $ 1.54 Class B $ 13.05 $ 10.25 $ 22.08 $ 13.50

4. Investment in National Bee12

4. Investment in National Beef Packing Company, LLC (Tables)	6 Months Ended
	Jun. 24, 2017
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Schedule of Operations for NBP	13 weeks ended 13 weeks ended 25 weeks ended 26 weeks ended June 24, 2017 June 25, 2016 June 24, 2017 June 25, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 1,874,494 $ 1,797,383 $ 3,433,517 $ 3,428,753 Costs and expenses: Cost of sales 1,750,570 1,690,908 3,214,409 3,260,373 Selling, general, and administrative expenses 19,810 17,914 36,111 34,894 Depreciation and amortization 24,460 22,785 46,858 45,411 Total costs and expenses 1,794,840 1,731,607 3,297,378 3,340,678 Operating income 79,654 65,776 136,139 88,075 Other income (expense): Interest income 57 63 173 63 Interest expense (2,256 ) (3,796 ) (4,070 ) (7,763 ) Other, net 970 813 3,286 3,890 Income before taxes 78,425 62,856 135,528 84,265 Income tax benefit (expense) (483 ) (552 ) (351 ) (1,135 ) Net income $ 77,942 $ 62,304 $ 135,177 $ 83,130 NBP's net income attributable to USPB $ 11,748 $ 9,391 $ 20,375 $ 12,530

1. Interim Financial Statemen13

1. Interim Financial Statements (Details Narrative)	Jun. 24, 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	6 Months Ended
	Jun. 24, 2017USD ($)
Members' Equity [Abstract]
Beginning balance	$ 221,195
Allocation of comprehensive income for the twenty-five week period ended June 24, 2017	18,531
Member distributions	(25,895)
Ending balance	$ 213,831

3. Earnings Per Unit (Details N

3. Earnings Per Unit (Details Narrative)	6 Months Ended
	Jun. 24, 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		6 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Basic and diluted earnings per unit
Comprehensive income attributable to USPB unitholders (numerator)			$ 18,531
Class A Units [Member]
Basic and diluted earnings per unit
Comprehensive income attributable to USPB unitholders (numerator)	$ 1,095	$ 860	$ 1,853	$ 1,133
Weighted average outstanding units (denominator)	735,385	735,385	735,385	735,385
Per unit amount	$ 1.49	$ 1.17	$ 2.52	$ 1.54
Class B Units [Member]
Basic and diluted earnings per unit
Comprehensive income attributable to USPB unitholders (numerator)	$ 9,859	$ 7,739	$ 16,678	$ 10,199
Weighted average outstanding units (denominator)	755,385	755,385	755,385	755,385
Per unit amount	$ 13.05	$ 10.25	$ 22.08	$ 13.50

4. Investment in National Bee17

4. Investment in National Beef Packing Company, LLC (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 24, 2017	Jun. 25, 2016	Jun. 24, 2017	Jun. 25, 2016
Investment in National Beef Packing
Net sales	$ 1,874,494	$ 1,797,383
Costs and expenses:
Cost of sales	1,750,570	1,690,908
Selling, general, and administrative expenses	19,810	17,914
Depreciation and amortization	24,460	22,785
Total costs and expenses	1,794,840	1,731,607
Operating income	79,654	65,776
Other income (expense):
Interest income	57	63
Interest expense	(2,256)	(3,796)
Other, net	970	813
Income before taxes	78,425	62,856
Income tax benefit (expense)	(483)	(552)
Net income	77,942	62,304
NBP's net income attributable to USPB	$ 11,748	$ 9,391	$ 20,375	$ 12,530
National Beef Packing Company, LLC [Member]
Investment in National Beef Packing
Net sales			3,433,517	3,428,753
Costs and expenses:
Cost of sales			3,214,409	3,260,373
Selling, general, and administrative expenses			36,111	34,894
Depreciation and amortization			46,858	45,411
Total costs and expenses			3,297,378	3,340,678
Operating income			136,139	88,075
Other income (expense):
Interest income			173	63
Interest expense			(4,070)	(7,763)
Other, net			3,286	3,890
Income before taxes			135,528	84,265
Income tax benefit (expense)			(351)	(1,135)
Net income			135,177	83,130
NBP's net income attributable to USPB			$ 20,375	$ 12,530