Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 28, 2018 | |
Entity Registrant Name | U. S. Premium Beef, LLC | |
Entity Central Index Key | 1,289,237 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
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 | 2,018 | |
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. 30, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 81,641 | $ 119,074 |
Due from affiliates | 4 | 137 |
Other current assets | 19 | 35 |
Total current assets | 81,664 | 119,246 |
Property, plant, and equipment, at cost | 230 | 223 |
Less accumulated depreciation | 207 | 201 |
Net property, plant, and equipment | 23 | 22 |
Investment in National Beef Packing Company, LLC | 121,774 | 140,030 |
Other assets | 69 | 103 |
Total assets | 203,530 | 259,401 |
Current liabilities: | ||
Accounts payable - trade | 32 | 58 |
Due to affiliates | 4 | 388 |
Accrued compensation and benefits | 1,742 | 2,250 |
Other accrued expenses and liabilities | 111 | 284 |
Distributions payable | 1,942 | 28,328 |
Total current liabilities | 3,831 | 31,308 |
Long-term liabilities: | ||
Other liabilities | 3,919 | 3,946 |
Total long-term liabilities | 3,919 | 3,946 |
Total liabilities | 7,750 | 35,254 |
Capital shares and equities: | ||
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 195,780 | 224,147 |
Total capital shares and equities | 195,780 | 224,147 |
Total liabilities and capital shares and equities | $ 203,530 | $ 259,401 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - shares | Jun. 30, 2018 | Dec. 30, 2017 |
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. 30, 2018 | Jun. 24, 2017 | Jun. 30, 2018 | Jun. 24, 2017 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 1,089 | 837 | 2,531 | 1,901 |
Depreciation and amortization | 3 | 3 | 6 | 6 |
Total costs and expenses | 1,092 | 840 | 2,537 | 1,907 |
Operating loss | (1,092) | (840) | (2,537) | (1,907) |
Other income (expense): | ||||
Interest income | 265 | 61 | 458 | 71 |
Interest expense | (3) | (3) | (6) | (6) |
Equity in income of National Beef Packing Company, LLC | 28,338 | 11,748 | 38,684 | 20,375 |
Other, net | 280 | (12) | 390 | (2) |
Total other expense | 28,880 | 11,794 | 39,526 | 20,438 |
Comprehensive income | $ 27,788 | $ 10,954 | $ 36,989 | $ 18,531 |
Class A Units [Member] | ||||
Earnings per unit: | ||||
Basic and diluted | $ 3.78 | $ 1.49 | $ 5.03 | $ 2.52 |
Outstanding weighted-average Class A and Class B units: | ||||
Basic and diluted | 735,385 | 735,385 | 735,385 | 735,385 |
Class B Units [Member] | ||||
Earnings per unit: | ||||
Basic and diluted | $ 33.11 | $ 13.05 | $ 44.07 | $ 22.08 |
Outstanding weighted-average Class A and Class B units: | ||||
Basic and 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. 30, 2018 | Jun. 24, 2017 | |
Cash flows from operating activities: | ||
Comprehensive income | $ 36,989 | $ 18,531 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6 | 6 |
Equity in net income of National Beef Packing Company, LLC | (38,684) | (20,375) |
Distributions from National Beef Packing Company, LLC | 38,684 | 0 |
Changes in assets and liabilities: | ||
Due from affiliates | 133 | (214) |
Other assets | 50 | 50 |
Accounts payable | (26) | (63) |
Due to affiliates | (384) | (12) |
Accrued compensation and benefits | (535) | (588) |
Other accrued expenses and liabilities | (173) | (61) |
Net cash provided by (used in) operating activities | 36,060 | (2,726) |
Cash flows from investing activities: | ||
Capital expenditures, including interest capitalized | (7) | 0 |
Distribution from National Beef Packing Company, LLC | 18,256 | 12,216 |
Net cash provided by investing activities | 18,249 | 12,216 |
Cash flows from financing activities: | ||
Change in overdraft balances | (26,386) | (1,128) |
Partnership distributions and redemptions | (65,356) | (25,895) |
Net cash used in financing activities | (91,742) | (27,023) |
Net decrease in cash | (37,433) | (17,533) |
Cash and cash equivalents at beginning of the period | 119,074 | 85,230 |
Cash and cash equivalents at end of the period | $ 81,641 | $ 67,697 |
1. Interim Financial Statements
1. Interim Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | (1) 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 (SEC), for the fiscal year ended December 30, 2017. 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. 30, 2018 | |
Members' Equity [Abstract] | |
Members' Capital | (2) Members’ Capital The following table represents a reconciliation of Members’ Capital for the twenty-six week period ended June 30, 2018 (thousands of dollars). Balance at December 30, 2017 $ 224,147 Allocation of comprehensive income for the twenty-six week period ended June 30, 2018 36,989 Member distributions (65,356) Balance at June 30, 2018 $ 195,780 |
3. Earnings Per Unit
3. Earnings Per Unit | 6 Months Ended |
Jun. 30, 2018 | |
Earnings per unit: | |
Earnings Per Unit | (3) 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 comprehensive loss to Class A units and the remainder is allocated to Class B units. For the thirteen and twenty-six week periods ended June 30, 2018 and thirteen and twenty-five week periods ended June 24, 2017, 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. Comprehensive Income Per Unit Calculation 13 weeks ended 13 weeks ended 26 weeks ended 25 weeks ended (thousands of dollars, except unit and per unit data) June 30, 2018 June 24, 2017 June 30, 2018 June 24, 2017 Basic and diluted earnings per unit: Comprehensive income attributable to USPB available to unitholders (numerator) Class A $ 2,779 $ 1,095 $ 3,699 $ 1,853 Class B $ 25,009 $ 9,859 $ 33,290 $ 16,678 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 $ 3.78 $ 1.49 $ 5.03 $ 2.52 Class B $ 33.11 $ 13.05 $ 44.07 $ 22.08 |
4. Investment in National Beef
4. Investment in National Beef Packing Company, LLC | 6 Months Ended |
Jun. 30, 2018 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in National Beef Packing Company, LLC | (4) 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 twenty-six week periods ended June 30, 2018 and thirteen and twenty-five week periods ended June 24, 2017 (thousands of dollars): 13 weeks ended 13 weeks ended 26 weeks ended 25 weeks ended June 30, 2018 June 24, 2017 June 30, 2018 June 24, 2017 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 1,942,690 $ 1,874,494 $ 3,724,609 $ 3,433,517 Costs and expenses: Cost of sales 1,706,825 1,750,570 3,377,599 3,214,409 Selling, general, and administrative expenses 19,116 19,810 37,151 36,111 Depreciation and amortization 25,805 24,460 51,324 46,858 Total costs and expenses 1,751,746 1,794,840 3,466,074 3,297,378 Operating income 190,944 79,654 258,535 136,139 Other income (expense): Interest income 78 57 146 173 Interest expense (3,370) (2,256) (5,478) (4,070) Other, net 984 970 4,326 3,286 Income before taxes 188,636 78,425 257,529 135,528 Income tax expense (629) (483) (883) (351) Net income $ 188,007 $ 77,942 $ 256,646 $ 135,177 NBP's net income attributable to USPB $ 28,338 $ 11,748 $ 38,684 $ 20,375 |
2. Members' Capital (Tables)
2. Members' Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Members' Equity [Abstract] | |
Schedule of Reconciliation of Members' Capital | Balance at December 30, 2017 $ 224,147 Allocation of comprehensive income for the twenty-six week period ended June 30, 2018 36,989 Member distributions (65,356) Balance at June 30, 2018 $ 195,780 |
3. Earnings Per Unit (Tables)
3. Earnings Per Unit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
Schedule of Income (Loss) Per Unit Calculation | Comprehensive Income Per Unit Calculation 13 weeks ended 13 weeks ended 26 weeks ended 25 weeks ended (thousands of dollars, except unit and per unit data) June 30, 2018 June 24, 2017 June 30, 2018 June 24, 2017 Basic and diluted earnings per unit: Comprehensive income attributable to USPB available to unitholders (numerator) Class A $ 2,779 $ 1,095 $ 3,699 $ 1,853 Class B $ 25,009 $ 9,859 $ 33,290 $ 16,678 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 $ 3.78 $ 1.49 $ 5.03 $ 2.52 Class B $ 33.11 $ 13.05 $ 44.07 $ 22.08 |
4. Investment in National Bee12
4. Investment in National Beef Packing Company, LLC (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Operations for NBP | 13 weeks ended 13 weeks ended 26 weeks ended 25 weeks ended June 30, 2018 June 24, 2017 June 30, 2018 June 24, 2017 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 1,942,690 $ 1,874,494 $ 3,724,609 $ 3,433,517 Costs and expenses: Cost of sales 1,706,825 1,750,570 3,377,599 3,214,409 Selling, general, and administrative expenses 19,116 19,810 37,151 36,111 Depreciation and amortization 25,805 24,460 51,324 46,858 Total costs and expenses 1,751,746 1,794,840 3,466,074 3,297,378 Operating income 190,944 79,654 258,535 136,139 Other income (expense): Interest income 78 57 146 173 Interest expense (3,370) (2,256) (5,478) (4,070) Other, net 984 970 4,326 3,286 Income before taxes 188,636 78,425 257,529 135,528 Income tax expense (629) (483) (883) (351) Net income $ 188,007 $ 77,942 $ 256,646 $ 135,177 NBP's net income attributable to USPB $ 28,338 $ 11,748 $ 38,684 $ 20,375 |
1. Interim Financial Statemen13
1. Interim Financial Statements (Details Narrative) | Jun. 30, 2018 |
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. 30, 2018USD ($) | |
Members' Equity [Abstract] | |
Beginning balance | $ 224,147 |
Allocation of comprehensive income | 36,989 |
Member distributions | (65,356) |
Ending balance | $ 195,780 |
3. Earnings Per Unit (Details)
3. Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 24, 2017 | Jun. 30, 2018 | Jun. 24, 2017 | |
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 36,989 | |||
Class A Units [Member] | ||||
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 2,779 | $ 1,095 | $ 3,699 | $ 1,853 |
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | $ 3.78 | $ 1.49 | $ 5.03 | $ 2.52 |
Class B Units [Member] | ||||
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 25,009 | $ 9,859 | $ 33,290 | $ 16,678 |
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | $ 33.11 | $ 13.05 | $ 44.07 | $ 22.08 |
3. Earnings Per Unit (Details N
3. Earnings Per Unit (Details Narrative) | 6 Months Ended |
Jun. 30, 2018 | |
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% |
4. Investment in National Bee17
4. Investment in National Beef Packing Company, LLC (Details) - National Beef Packing Company, LLC [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 24, 2017 | Jun. 30, 2018 | Jun. 24, 2017 | |
Investment in National Beef Packing | ||||
Net sales | $ 1,942,690 | $ 1,874,494 | $ 3,724,609 | $ 3,433,517 |
Costs and expenses: | ||||
Cost of sales | 1,706,825 | 1,750,570 | 3,377,599 | 3,214,409 |
Selling, general, and administrative expenses | 19,116 | 19,810 | 37,151 | 36,111 |
Depreciation and amortization | 25,805 | 24,460 | 51,324 | 46,858 |
Total costs and expenses | 1,751,746 | 1,794,840 | 3,466,074 | 3,297,378 |
Operating income | 190,944 | 79,654 | 258,535 | 136,139 |
Other income (expense): | ||||
Interest income | 78 | 57 | 146 | 173 |
Interest expense | (3,370) | (2,256) | (5,478) | (4,070) |
Other, net | 984 | 970 | 4,326 | 3,286 |
Income before taxes | 188,636 | 78,425 | 257,529 | 135,528 |
Income tax expense | (629) | (483) | (883) | (351) |
Net income | 188,007 | 77,942 | 256,646 | 135,177 |
NBP's net income attributable to USPB | $ 28,338 | $ 11,748 | $ 38,684 | $ 20,375 |