Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 28, 2017 | |
Entity Registrant Name | U. S. Premium Beef, LLC | |
Entity Central Index Key | 1,289,237 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 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 | Q3 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 81,547 | $ 85,230 |
Due from affiliates | 259 | 48 |
Other current assets | 12 | 27 |
Total current assets | 81,818 | 85,305 |
Property, plant, and equipment, at cost | 224 | 223 |
Less accumulated depreciation | 198 | 188 |
Net property, plant, and equipment | 26 | 35 |
Investment in National Beef Packing Company, LLC | 163,536 | 143,446 |
Other assets | 102 | 146 |
Total assets | 245,482 | 228,932 |
Current liabilities: | ||
Accounts payable - trade | 13 | 66 |
Due to affiliates | 91 | 37 |
Accrued compensation and benefits | 1,745 | 1,690 |
Other accrued expenses and liabilities | 193 | 253 |
Distributions and patronage notices payable | 59 | 1,218 |
Total current liabilities | 2,101 | 3,264 |
Long-term liabilities: | ||
Other liabilities | 4,049 | 4,473 |
Total long-term liabilities | 4,049 | 4,473 |
Total liabilities | 6,150 | 7,737 |
Capital shares and equities: | ||
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 239,332 | 221,195 |
Total capital shares and equities | 239,332 | 221,195 |
Total liabilities and capital shares and equities | $ 245,482 | $ 228,932 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 859 | 726 | 2,760 | 2,281 |
Depreciation and amortization | 3 | 3 | 9 | 10 |
Total costs and expenses | 862 | 729 | 2,769 | 2,291 |
Operating loss | (862) | (729) | (2,769) | (2,291) |
Other income (expense): | ||||
Interest income | 113 | 11 | 184 | 35 |
Interest expense | (3) | (3) | (9) | (9) |
Equity interest in net income of National Beef Packing Company, LLC | 26,226 | 16,270 | 46,601 | 28,800 |
Other, net | 27 | 21 | 25 | 367 |
Other income (expense) | 26,363 | 16,299 | 46,801 | 29,193 |
Comprehensive income | $ 25,501 | $ 15,570 | $ 44,032 | $ 26,902 |
Class A Units [Member] | ||||
Earnings per unit: | ||||
Basic | $ 3.47 | $ 2.12 | $ 5.99 | $ 3.66 |
Diluted | $ 3.47 | $ 2.12 | $ 5.99 | $ 3.66 |
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 | $ 30.38 | $ 18.55 | $ 52.46 | $ 32.05 |
Diluted | $ 30.38 | $ 18.55 | $ 52.46 | $ 32.05 |
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 | 9 Months Ended | |
Sep. 30, 2017 | Sep. 24, 2016 | |
Cash flows from operating activities: | ||
Comprehensive income | $ 44,032 | $ 26,902 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 9 | 10 |
Equity in net income of National Beef Packing Company, LLC | (46,601) | (28,800) |
Distribution from National Beef Packing Company, LLC | 19,076 | 0 |
Changes in assets and liabilities: | ||
Due from affiliates | (211) | (9) |
Other assets | 58 | 49 |
Accounts payable | (53) | (8) |
Due to affiliates | 54 | 47 |
Accrued compensation and benefits | (369) | (172) |
Other accrued expenses and liabilities | (60) | (89) |
Net cash provided by (used in) operating activities | 15,935 | (2,070) |
Cash flows from investing activities: | ||
Distribution from National Beef Packing Company, LLC | 7,436 | 13,216 |
Net cash provided by investing activities | 7,436 | 13,216 |
Cash flows from financing activities: | ||
Change in overdraft balances | (1,159) | (71) |
Partnership distributions and redemptions | (25,895) | 0 |
Net cash used in financing activities | (27,054) | (71) |
Net (decrease) increase in cash | (3,683) | 11,075 |
Cash and cash equivalents at beginning of the period | 85,230 | 85,220 |
Cash and cash equivalents at end of the period | $ 81,547 | $ 96,295 |
1. Interim Financial Statements
1. Interim Financial Statements | 9 Months Ended |
Sep. 30, 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 at the date of the financial statements. The estimates and judgments 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 | 9 Months Ended |
Sep. 30, 2017 | |
Members' Equity [Abstract] | |
Members' Capital | The following table represents a reconciliation of Members’ Capital for the thirty-nine week period ended September 30, 2017 (thousands of dollars). Balance at December 31, 2016 $ 221,195 Allocation of comprehensive income for the thirty-nine week period ended September 30, 2017 44,032 Member distributions (25,895 ) Balance at September 30, 2017 $ 239,332 |
3. Earnings Per Unit
3. Earnings Per Unit | 9 Months Ended |
Sep. 30, 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 fourteen week and thirty-nine week periods ended September 30, 2017 and the thirteen week and thirty-nine week periods ended September 24, 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 14 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Basic and diluted earnings per unit Comprehensive income attributable to USPB unitholders (numerator) Class A $ 2,550 $ 1,557 $ 4,403 $ 2,690 Class B $ 22,951 $ 14,013 $ 39,629 $ 24,212 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 $ 3.47 $ 2.12 $ 5.99 $ 3.66 Class B $ 30.38 $ 18.55 $ 52.46 $ 32.05 |
4. Investment in National Beef
4. Investment in National Beef Packing Company, LLC | 9 Months Ended |
Sep. 30, 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 fourteen week and thirty-nine week periods ended September 30, 2017 and the thirteen week and thirty-nine week periods ended September 24, 2016 (thousands of dollars): 14 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 2,038,823 $ 1,746,839 $ 5,472,340 $ 5,175,592 Costs and expenses: Cost of sales 1,816,473 1,595,672 5,030,882 4,856,046 Selling, general, and administrative expenses 19,974 17,035 56,085 51,929 Depreciation and amortization 26,664 23,100 73,522 68,511 Total costs and expenses 1,863,111 1,635,807 5,160,489 4,976,486 Operating income 175,712 111,032 311,851 199,106 Other income (expense): Interest income 57 51 230 114 Interest expense (1,710 ) (2,965 ) (5,780 ) (10,728 ) Other, net 418 149 3,705 4,040 Income before taxes 174,477 108,267 310,006 192,532 Income tax benefit (expense) (482 ) (327 ) (833 ) (1,462 ) Net income $ 173,995 $ 107,940 $ 309,173 $ 191,070 NBP's net income attributable to USPB $ 26,226 $ 16,270 $ 46,601 $ 28,800 |
2. Members' Capital (Tables)
2. Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Members' Equity [Abstract] | |
Schedule of Reconciliation of Members' Capital | Balance at December 31, 2016 $ 221,195 Allocation of comprehensive income for the thirty-nine week period ended September 30, 2017 44,032 Member distributions (25,895 ) Balance at September 30, 2017 $ 239,332 |
3. Earnings Per Unit (Tables)
3. Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
Schedule of Income (Loss) Per Unit Calculation | Earnings Per Unit Calculation 14 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Basic and diluted earnings per unit Comprehensive income attributable to USPB unitholders (numerator) Class A $ 2,550 $ 1,557 $ 4,403 $ 2,690 Class B $ 22,951 $ 14,013 $ 39,629 $ 24,212 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 $ 3.47 $ 2.12 $ 5.99 $ 3.66 Class B $ 30.38 $ 18.55 $ 52.46 $ 32.05 |
4. Investment in National Bee12
4. Investment in National Beef Packing Company, LLC (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Operations for NBP | 14 weeks ended 13 weeks ended 39 weeks ended 39 weeks ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 2,038,823 $ 1,746,839 $ 5,472,340 $ 5,175,592 Costs and expenses: Cost of sales 1,816,473 1,595,672 5,030,882 4,856,046 Selling, general, and administrative expenses 19,974 17,035 56,085 51,929 Depreciation and amortization 26,664 23,100 73,522 68,511 Total costs and expenses 1,863,111 1,635,807 5,160,489 4,976,486 Operating income 175,712 111,032 311,851 199,106 Other income (expense): Interest income 57 51 230 114 Interest expense (1,710 ) (2,965 ) (5,780 ) (10,728 ) Other, net 418 149 3,705 4,040 Income before taxes 174,477 108,267 310,006 192,532 Income tax benefit (expense) (482 ) (327 ) (833 ) (1,462 ) Net income $ 173,995 $ 107,940 $ 309,173 $ 191,070 NBP's net income attributable to USPB $ 26,226 $ 16,270 $ 46,601 $ 28,800 |
1. Interim Financial Statemen13
1. Interim Financial Statements (Details Narrative) | Sep. 30, 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 | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Members' Equity [Abstract] | |
Beginning balance | $ 221,195 |
Allocation of comprehensive income | 44,032 |
Member distributions | (25,895) |
Ending balance | $ 239,332 |
3. Earnings Per Unit (Details N
3. Earnings Per Unit (Details Narrative) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 44,032 | |||
Class A Units [Member] | ||||
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 2,550 | $ 1,557 | $ 4,403 | $ 2,690 |
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | $ 3.47 | $ 2.12 | $ 5.99 | $ 3.66 |
Class B Units [Member] | ||||
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 22,951 | $ 14,013 | $ 39,629 | $ 24,212 |
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | $ 30.38 | $ 18.55 | $ 52.46 | $ 32.05 |
4. Investment in National Bee17
4. Investment in National Beef Packing Company, LLC (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Investment in National Beef Packing | ||||
Net sales | $ 2,038,823 | $ 1,746,839 | ||
Costs and expenses: | ||||
Cost of sales | 1,816,473 | 1,595,672 | ||
Selling, general, and administrative expenses | 19,974 | 17,035 | ||
Depreciation and amortization | 26,664 | 23,100 | ||
Total costs and expenses | 1,863,111 | 1,635,807 | ||
Operating income | 175,712 | 111,032 | ||
Other income (expense): | ||||
Interest income | 57 | 51 | ||
Interest expense | (1,710) | (2,965) | ||
Other, net | 418 | 149 | ||
Income before taxes | 174,477 | 108,267 | ||
Income tax benefit (expense) | (482) | (327) | ||
Net income | 173,995 | 107,940 | ||
NBP's net income attributable to USPB | $ 26,226 | $ 16,270 | $ 46,601 | $ 28,800 |
National Beef Packing Company, LLC [Member] | ||||
Investment in National Beef Packing | ||||
Net sales | 5,472,340 | 5,175,592 | ||
Costs and expenses: | ||||
Cost of sales | 5,030,882 | 4,856,046 | ||
Selling, general, and administrative expenses | 56,085 | 51,929 | ||
Depreciation and amortization | 73,522 | 68,511 | ||
Total costs and expenses | 5,160,489 | 4,976,486 | ||
Operating income | 311,851 | 199,106 | ||
Other income (expense): | ||||
Interest income | 230 | 114 | ||
Interest expense | (5,780) | (10,728) | ||
Other, net | 3,705 | 4,040 | ||
Income before taxes | 310,006 | 192,532 | ||
Income tax benefit (expense) | (833) | (1,462) | ||
Net income | 309,173 | 191,070 | ||
NBP's net income attributable to USPB | $ 46,601 | $ 28,800 |