Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2018 | Oct. 27, 2018 | |
Entity Registrant Name | U. S. Premium Beef, LLC | |
Entity Central Index Key | 1,289,237 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Emerging Growth | false | |
Entity Small Business | false | |
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. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 78,448 | $ 119,074 |
Due from affiliates | 19 | 137 |
Other current assets | 11 | 35 |
Total current assets | 78,478 | 119,246 |
Property, plant, and equipment, at cost | 230 | 223 |
Less accumulated depreciation | 210 | 201 |
Net property, plant, and equipment | 20 | 22 |
Investment in National Beef Packing Company, LLC | 134,043 | 140,030 |
Other assets | 70 | 103 |
Total assets | 212,611 | 259,401 |
Current liabilities: | ||
Accounts payable - trade | 3 | 58 |
Due to affiliates | 28 | 388 |
Accrued compensation and benefits | 2,113 | 2,250 |
Other accrued expenses and liabilities | 334 | 284 |
Distributions payable | 1,453 | 28,328 |
Total current liabilities | 3,931 | 31,308 |
Long-term liabilities: | ||
Other liabilities | 3,728 | 3,946 |
Total long-term liabilities | 3,728 | 3,946 |
Total liabilities | 7,659 | 35,254 |
Capital shares and equities: | ||
Members' capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 204,952 | 224,147 |
Total capital shares and equities | 204,952 | 224,147 |
Total liabilities and capital shares and equities | $ 212,611 | $ 259,401 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 29, 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 | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 813 | 859 | 3,345 | 2,760 |
Depreciation and amortization | 3 | 3 | 9 | 9 |
Total costs and expenses | 816 | 862 | 3,354 | 2,769 |
Operating loss | (816) | (862) | (3,354) | (2,769) |
Other income (expense): | ||||
Interest income | 283 | 113 | 741 | 184 |
Interest expense | (3) | (3) | (9) | (9) |
Equity in net income of National Beef Packing Company, LLC | 29,463 | 26,226 | 68,147 | 46,601 |
Other, net | 1 | 27 | 392 | 25 |
Total other expense | 29,744 | 26,363 | 69,271 | 46,801 |
Comprehensive income | $ 28,928 | $ 25,501 | $ 65,917 | $ 44,032 |
Class A Units [Member] | ||||
Earnings per unit: | ||||
Basic and diluted | $ 3.93 | $ 3.47 | $ 8.96 | $ 5.99 |
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 | $ 34.47 | $ 30.38 | $ 78.54 | $ 52.46 |
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 | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Comprehensive income | $ 65,917 | $ 44,032 |
Adjustments to reconcile comprehensive income to net cash provided by operating activities: | ||
Depreciation and amortization | 9 | 9 |
Equity in net income of National Beef Packing Company, LLC | (68,147) | (46,601) |
Distributions from National Beef Packing Company, LLC | 55,877 | 19,076 |
Changes in assets and liabilities: | ||
Due from affiliates | 118 | (211) |
Other assets | 58 | 58 |
Accounts payable | (55) | (53) |
Due to affiliates | (360) | 54 |
Accrued compensation and benefits | (355) | (369) |
Other accrued expenses and liabilities | 50 | (60) |
Net cash provided by operating activities | 53,112 | 15,935 |
Cash flows from investing activities: | ||
Capital expenditures, including interest capitalized | (7) | 0 |
Distributions from National Beef Packing Company, LLC | 18,256 | 7,436 |
Net cash provided by investing activities | 18,249 | 7,436 |
Cash flows from financing activities: | ||
Change in Distributions Payable | (26,875) | (1,159) |
Partnership distributions and redemptions | (85,112) | (25,895) |
Net cash used in financing activities | (111,987) | (27,054) |
Net decrease in cash | (40,626) | (3,683) |
Cash and cash equivalents at beginning of the period | 119,074 | 85,230 |
Cash and cash equivalents at end of the period | $ 78,448 | $ 81,547 |
1. Interim Financial Statements
1. Interim Financial Statements | 9 Months Ended |
Sep. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | (1) Interim Financial Statements Basis of Presentation and Significant Accounting Policies 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. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases. The new standard requires the recognition of all leases that are longer than one year on the balance sheet, which will result in the recognition of a right-of-use asset and a corresponding lease liability. The right-of -use asset and lease liability will be measured initially using the present value of the remaining rental payments. The new standard is effective for annual and interim periods beginning after December 15, 2018. We are currently evaluating the impact of the new guidance but do not believe it will have a material impact on our financial statements. |
2. Members' Capital
2. Members' Capital | 9 Months Ended |
Sep. 29, 2018 | |
Members' Equity [Abstract] | |
Members' Capital | (2) Members’ Capital The following table represents a reconciliation of Members’ Capital for the thirty-nine week period ended September 29, 2018 (thousands of dollars). Balance at December 30, 2017 $ 224,147 Allocation of comprehensive income for the thirty-nine week period ended September 29, 2018 65,917 Member distributions (85,112) Balance at September 29, 2018 $ 204,952 |
3. Earnings Per Unit
3. Earnings Per Unit | 9 Months Ended |
Sep. 29, 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 to Class A units and the remainder is allocated to Class B units. For the thirteen and thirty-nine week periods ended September 29, 2018 and fourteen and thirty-nine week periods ended September 30, 2017, 10% of USPB’s comprehensive income was 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 14 weeks ended 39 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Basic and diluted earnings per unit: Comprehensive income attributable to USPB available to unitholders (numerator) Class A $ 2,893 $ 2,550 $ 6,592 $ 4,403 Class B $ 26,035 $ 22,951 $ 59,325 $ 39,629 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 $ 3.93 $ 3.47 $ 8.96 $ 5.99 Class B $ 34.47 $ 30.38 $ 78.54 $ 52.46 |
4. Investment in National Beef
4. Investment in National Beef Packing Company, LLC | 9 Months Ended |
Sep. 29, 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 thirty-nine week periods ended September 29, 2018 and fourteen and thirty-nine week periods ended September 30, 2017 (thousands of dollars): 13 weeks ended 14 weeks ended 39 weeks ended 39 weeks ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 1,880,561 $ 2,038,823 $ 5,605,170 $ 5,472,340 Costs and expenses: Cost of sales 1,637,216 1,816,473 5,014,815 5,030,882 Selling, general, and administrative expenses 18,858 19,974 56,010 56,085 Depreciation and amortization 26,121 26,664 77,445 73,522 Total costs and expenses 1,682,195 1,863,111 5,148,270 5,160,489 Operating income 198,366 175,712 456,900 311,851 Other income (expense): Interest income 88 57 233 230 Interest expense (2,718) (1,710) (8,196) (5,780) Other, net 318 418 4,646 3,705 Income before taxes 196,054 174,477 453,583 310,006 Income tax expense (585) (482) (1,468) (833) Net income $ 195,469 $ 173,995 $ 452,115 $ 309,173 NBP's net income attributable to USPB $ 29,463 $ 26,226 $ 68,147 $ 46,601 |
2. Members' Capital (Tables)
2. Members' Capital (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Members' Equity [Abstract] | |
Schedule of Reconciliation of Members' Capital | Balance at December 30, 2017 $ 224,147 Allocation of comprehensive income for the thirty-nine week period ended September 29, 2018 65,917 Member distributions (85,112) Balance at September 29, 2018 $ 204,952 |
3. Earnings Per Unit (Tables)
3. Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Limited Liability Company (LLC) Members' Equity [Abstract] | |
Schedule of Income (Loss) Per Unit Calculation | Comprehensive Income Per Unit Calculation 13 weeks ended 14 weeks ended 39 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 Basic and diluted earnings per unit: Comprehensive income attributable to USPB available to unitholders (numerator) Class A $ 2,893 $ 2,550 $ 6,592 $ 4,403 Class B $ 26,035 $ 22,951 $ 59,325 $ 39,629 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 $ 3.93 $ 3.47 $ 8.96 $ 5.99 Class B $ 34.47 $ 30.38 $ 78.54 $ 52.46 |
4. Investment in National Bee_2
4. Investment in National Beef Packing Company, LLC (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Operations for NBP | 13 weeks ended 14 weeks ended 39 weeks ended 39 weeks ended September 29, 2018 September 30, 2017 September 29, 2018 September 30, 2017 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 1,880,561 $ 2,038,823 $ 5,605,170 $ 5,472,340 Costs and expenses: Cost of sales 1,637,216 1,816,473 5,014,815 5,030,882 Selling, general, and administrative expenses 18,858 19,974 56,010 56,085 Depreciation and amortization 26,121 26,664 77,445 73,522 Total costs and expenses 1,682,195 1,863,111 5,148,270 5,160,489 Operating income 198,366 175,712 456,900 311,851 Other income (expense): Interest income 88 57 233 230 Interest expense (2,718) (1,710) (8,196) (5,780) Other, net 318 418 4,646 3,705 Income before taxes 196,054 174,477 453,583 310,006 Income tax expense (585) (482) (1,468) (833) Net income $ 195,469 $ 173,995 $ 452,115 $ 309,173 NBP's net income attributable to USPB $ 29,463 $ 26,226 $ 68,147 $ 46,601 |
1. Interim Financial Statemen_2
1. Interim Financial Statements (Details Narrative) | Sep. 29, 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 | 9 Months Ended |
Sep. 29, 2018USD ($) | |
Members' Equity [Abstract] | |
Beginning balance | $ 224,147 |
Allocation of comprehensive income | 65,917 |
Member distributions | (85,112) |
Ending balance | $ 204,952 |
3. Earnings Per Unit (Details)
3. Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 65,917 | |||
Class A Units [Member] | ||||
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 2,893 | $ 2,550 | $ 6,592 | $ 4,403 |
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | $ 3.93 | $ 3.47 | $ 8.96 | $ 5.99 |
Class B Units [Member] | ||||
Basic and diluted earnings per unit | ||||
Comprehensive income attributable to USPB unitholders (numerator) | $ 26,035 | $ 22,951 | $ 59,325 | $ 39,629 |
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | $ 34.47 | $ 30.38 | $ 78.54 | $ 52.46 |
3. Earnings Per Unit (Details N
3. Earnings Per Unit (Details Narrative) | 9 Months Ended |
Sep. 29, 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 Bee_3
4. Investment in National Beef Packing Company, LLC (Details) - National Beef Packing Company, LLC [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Investment in National Beef Packing | ||||
Net sales | $ 1,880,561 | $ 2,038,823 | $ 5,605,170 | $ 5,472,340 |
Costs and expenses: | ||||
Cost of sales | 1,637,216 | 1,816,473 | 5,014,815 | 5,030,882 |
Selling, general, and administrative expenses | 18,858 | 19,974 | 56,010 | 56,085 |
Depreciation and amortization | 26,121 | 26,664 | 77,445 | 73,522 |
Total costs and expenses | 1,682,195 | 1,863,111 | 5,148,270 | 5,160,489 |
Operating income | 198,366 | 175,712 | 456,900 | 311,851 |
Other income (expense): | ||||
Interest income | 88 | 57 | 233 | 230 |
Interest expense | (2,718) | (1,710) | (8,196) | (5,780) |
Other, net | 318 | 418 | 4,646 | 3,705 |
Income before taxes | 196,054 | 174,477 | 453,583 | 310,006 |
Income tax expense | (585) | (482) | (1,468) | (833) |
Net income | 195,469 | 173,995 | 452,115 | 309,173 |
NBP's net income attributable to USPB | $ 29,463 | $ 26,226 | $ 68,147 | $ 46,601 |