Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 28, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-30 | |
Entity File Number | 333-115164 | |
Entity Registrant Name | U. S. PREMIUM BEEF, LLC | |
Entity Central Index Key | 0001289237 | |
Entity Tax Identification Number | 20-1576986 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 12200 North Ambassador Drive | |
Entity Address, City or Town | Kansas City | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 64163 | |
City Area Code | (866) | |
Local Phone Number | 877-2525 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | 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. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 75,849 | $ 97,732 |
Accounts receivable | 168 | 9 |
Due from members and associates | 2,061 | 921 |
Other current assets | 15 | 4 |
Total current assets | 78,093 | 98,666 |
Property, plant, and equipment, at cost | 265 | 266 |
Less accumulated depreciation | 226 | 212 |
Net property, plant, and equipment | 39 | 54 |
Right of use assets, net | 243 | 115 |
Investment in National Beef Packing Company, LLC | 181,344 | 179,556 |
Total assets | 259,719 | 278,391 |
Current liabilities: | ||
Accounts payable - trade | 11 | 36 |
Due to National Beef Packing Company, LLC | 0 | 1,132 |
Due to members and associates | 56 | 25 |
Accrued compensation and benefits | 995 | 2,667 |
Lease obligations | 48 | 57 |
Other accrued expenses and liabilities | 231 | 969 |
Distributions payable | 0 | 1 |
Total current liabilities | 1,341 | 4,887 |
Long-term liabilities: | ||
Lease obligations | 194 | 57 |
Other liabilities | 9,726 | 9,506 |
Total long-term liabilities | 9,920 | 9,563 |
Total liabilities | 11,261 | 14,450 |
Members' capital | ||
Members' contributed capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 248,458 | 263,941 |
Total members' capital | 248,458 | 263,941 |
Total liabilities and members' capital | $ 259,719 | $ 278,391 |
Balance Sheets (unaudited) (Par
Balance Sheets (unaudited) (Parenthetical) - shares | Sep. 30, 2023 | Dec. 31, 2022 |
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, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 843 | 2,019 | 3,141 | 5,637 |
Depreciation and amortization | 5 | 6 | 15 | 14 |
Total costs and expenses | 848 | 2,025 | 3,156 | 5,651 |
Operating loss | (848) | (2,025) | (3,156) | (5,651) |
Other income: | ||||
Interest income | 847 | 295 | 2,485 | 331 |
Equity in income of National Beef Packing Company, LLC | 14,755 | 44,509 | 37,060 | 159,894 |
Other income, net | 200 | 345 | 516 | 311 |
Total other income | 15,802 | 45,149 | 40,061 | 160,536 |
Net income | $ 14,954 | $ 43,124 | $ 36,905 | $ 154,885 |
Class A Units [Member] | ||||
Outstanding weighted-average Class A and Class B units: | ||||
Basic and diluted | 735,385 | 735,385 | 735,385 | 735,385 |
Class B Units [Member] | ||||
Outstanding weighted-average Class A and Class B units: | ||||
Basic and diluted | 755,385 | 755,385 | 755,385 | 755,385 |
Statements of Operations (una_2
Statements of Operations (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Class A Units [Member] | ||||
Basic and diluted | $ 2.03 | $ 5.86 | $ 5.02 | $ 21.06 |
Class B Units [Member] | ||||
Basic and diluted | $ 17.82 | $ 51.38 | $ 43.97 | $ 184.54 |
Statements of Cash Flows (unaud
Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 24, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 36,905 | $ 154,885 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15 | 14 |
Equity in net income of National Beef Packing Company, LLC | (37,060) | (159,894) |
Distributions from National Beef Packing Company, LLC | 35,271 | 162,980 |
Changes in assets and liabilities: | ||
Accounts receivable | (159) | 39 |
Due from affiliates | (1,140) | (603) |
Other assets | (12) | (9) |
Accounts payable | (25) | 2 |
Due to affiliates | (1,101) | 1,146 |
Accrued compensation and benefits | (1,452) | 1,786 |
Other accrued expenses and liabilities | (737) | (392) |
Net cash provided by operating activities | 30,505 | 159,954 |
Cash flows from investing activities: | ||
Investment in certificate of deposit | 20,000 | 0 |
Redemption of certificate of deposit | (20,000) | 0 |
Capital expenditures | 0 | (52) |
Net cash used in investing activities | 0 | (52) |
Cash flows from financing activities: | ||
Member distributions | (52,388) | (195,241) |
Net cash used in financing activities | (52,388) | (195,241) |
Net decrease in cash | (21,883) | (35,339) |
Cash and cash equivalents at beginning of period | 97,732 | 130,400 |
Cash and cash equivalents at end of period | $ 75,849 | $ 95,061 |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [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 (U.S. GAAP), for interim financial information; therefore, they do not include all of the information and footnotes required by U.S. 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 31, 2022. The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | (2) Accounting Policies Accounting for Investment in NBP 15.0729 Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP. If a decrease in value is deemed other than temporary, the Company would record an impairment charge, which may have an impact on the values of USPB’s Class A and Class B units. NBP’s plants are currently operational and its results of operations are profitable, as reflected in Note 6. As a result, USPB believes the fair value of its investment in NBP exceeds the carrying value. Cash and Cash Equivalents 75.8 Certificates of Deposit 20 4.28 September 25, 2023 |
Noncompetition Agreement
Noncompetition Agreement | 9 Months Ended |
Sep. 30, 2023 | |
Noncompetition Agreement | |
Noncompetition Agreement | (3) Noncompetition Agreement The CEO’s employment agreement provides for him to receive noncompetition payments for a twelve-month period following his termination of employment with USPB. As of September 30, 2023 and December 31, 2022, the Company had accrued $ 0.3 0.3 |
Employee Compensation Plans
Employee Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Compensation Plans | (4) Employee Compensation Plans In September 2010, USPB’s Board of Directors approved a management phantom unit plan and subsequently awarded phantom units in fiscal years 2010 and 2013. As of September 30, 2023 and December 31, 2022, the Company had accrued $ 9.6 10.4 Schedule of Accrued liabilities September 30, 2023 December 31, 2022 (unaudited) Accrued compensation and benefits $ 166 $ 1,210 Other liabilities 9,398 9,202 Total phantom accrual $ 9,564 $ 10,412 USPB provides its employees the opportunity to earn cash incentives and bonuses. As of September 30, 2023 and December 31, 2022, the Company had accrued $ 0.8 1.5 |
Earnings Per Unit
Earnings Per Unit | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Unit | (5) 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 allocating the remainder to Class B units. For the quarterly and year-to-date periods ended September 30, 2023 and September 24, 2022, respectively, 10% of USPB’s net income was allocated to the Class A units and 90% to the Class B units. The net income allocated to the Class A units and Class B units were then divided by the weighted-average number of Class A units and Class B units outstanding for the period to determine the basic EPU for each respective unit class. Diluted EPU reflects the potential dilution that could occur if any securities or contracts to issue Class A units or Class B units were exercised. There are no such securities or rights outstanding. Schedule of Reconciliation of earnings per unit Income Per Unit Calculation 14 weeks ended 13 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Basic and diluted earnings per unit: Income attributable to USPB available to unitholders (numerator) Class A $ 1,495 $ 4,312 $ 3,691 $ 15,489 Class B $ 13,459 $ 38,812 $ 33,214 $ 139,396 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 $ 2.03 $ 5.86 $ 5.02 $ 21.06 Class B $ 17.82 $ 51.38 $ 43.97 $ 184.54 |
Investment in National Beef Pac
Investment in National Beef Packing Company, LLC | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in National Beef Packing Company, LLC | (6) Investment in National Beef Packing Company, LLC USPB’s 15.0729% investment in NBP is accounted for using the equity method of accounting because the Company has the ability to exercise significant influence over NBP, but does not have financial or operational control. The table below summarizes the changes to USPB’s investment in NBP for the fourteen and thirty-nine week periods ended September 30, 2023 and thirteen and thirty-nine week periods ended September 24, 2022 (unaudited) (thousands of dollars): Schedule of Investment roll forward Investment at December 31, 2022 $ 179,556 Equity in net income for twelve-week period 7,600 Distributions – Investment at March 25, 2023 187,156 Equity in net income for thirteen-week period 14,705 Distributions (10,464 ) Investment at June 24, 2023 191,397 Equity in net income for fourteen-week period 14,755 Distributions (24,808 ) Investment at September 30, 2023 $ 181,344 Investment at December 25, 2021 $ 213,290 Equity in net income for thirteen-week period 62,606 Distributions (52,755 ) Investment at March 26, 2022 223,141 Equity in net income for thirteen-week period 52,779 Distributions (82,907 ) Investment at June 25, 2022 193,013 Equity in net income for thirteen-week period 44,509 Distributions (27,318 ) Investment at September 24, 2022 $ 210,204 The difference between USPB’s percentage ownership share of NBP earnings and the recorded amount of Equity in income of NBP is attributable to the amortization of a basis difference related to the purchase accounting for NBP’s acquisition of Ohio Beef in 2019. Below is a summary of the results of operations for NBP for the quarterly and year-to-date periods ended September 30, 2023 and September 24, 2022 (thousands of dollars): Schedule of Operations for NBP 14 weeks ended 13 weeks ended 39 weeks ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 3,374,888 $ 2,846,156 $ 8,896,989 $ 8,819,780 Costs and expenses: Cost of sales 3,208,887 2,492,127 8,453,249 7,587,149 Selling, general, and administrative expenses 23,232 24,408 75,323 69,628 Depreciation and amortization 36,278 30,945 98,835 90,254 Total costs and expenses 3,268,397 2,547,480 8,627,407 7,747,031 Operating income 106,491 298,676 269,582 1,072,749 Other income (expense): Interest income 4 23 47 90 Interest expense (8,105 ) (1,121 ) (19,266 ) (4,809 ) Income before taxes 98,390 297,578 250,363 1,068,030 Income tax expense 504 (1,285 ) (1,491 ) (4,225 ) Net income $ 98,894 $ 296,293 $ 248,872 $ 1,063,805 As of September 30, 2023 and December 31, 2022, USPB’s balance sheet reflected receivables from affiliates of $ 2.1 1.9 0.9 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Because the Company is a limited liability company taxed as a partnership, taxes are not assessed at the Company level and the results of operations are included in the taxable income of individual members. USPB nonetheless is required to withhold state income taxes from the cash distributions it makes to its members. As of September 30, 2023 and December 31, 2022, Other accrued expenses and liabilities on the Company’s balance sheet reflected state taxes payable of $ 0.2 0.9 |
Long-term Debt and Loan Agreeme
Long-term Debt and Loan Agreements | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Loan Agreements | (8) Long-term Debt and Loan Agreements On July 13, 2020, USPB and CoBank entered into a Credit Agreement, an Amended and Restated Revolving Term Promissory Note (“Promissory Note”), and an Affirmation of Pledge Agreement. The Credit Agreement and Promissory Note provide for a $ 1.0 June 30, 2025 1.0 0.00 |
Members_ Capital
Members’ Capital | 9 Months Ended |
Sep. 30, 2023 | |
Members Capital | |
Members’ Capital | (9) Members’ Capital The following table represents a reconciliation of Members’ Capital for the fourteen and thirty-nine week periods ended September 30, 2023 and the thirteen and thirty-nine week periods ended September 24, 2022 (unaudited) (thousands of dollars). Schedule of Reconciliation of members’ capital Balance at December 31, 2022 $ 263,941 Net income for the twelve-week period ended March 25, 2023 7,381 Balance at March 25, 2023 271,322 Net income for the thirteen-week period ended June 24, 2023 14,570 Member distributions Class A ($6.56 per Class A unit) (4,877 ) Class B ($58.17 per Class B unit) (43,895 ) Balance at June 24, 2023 237,120 Net income for the fourteen-week period ended September 30, 2023 14,954 Member distributions Class A ($0.49 per Class A unit) (362 ) Class B ($4.31 per Class B unit) (3,254 ) Balance at September 30, 2023 $ 248,458 Balance at December 25, 2021 $ 332,272 Net income for the thirteen-week period ended March 26, 2022 61,047 Member distributions Class A ($16.16 per Class A unit) (11,888 ) Class B ($141.64 per Class B unit) (106,994 ) Balance at March 26, 2022 274,437 Net income for the thirteen-week period ended June 25, 2022 50,714 Member distributions Class A ($9.03 per Class A unit) (6,638 ) Class B ($79.10 per Class B unit) (59,752 ) Balance at June 25, 2022 258,761 Net income for the thirteen-week period ended September 24, 2022 43,124 Member distributions Class A ($1.25 per Class A unit) (917 ) Class B ($10.93 per Class B unit) (8,258 ) Balance at September 24, 2022 $ 292,710 |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | (10) Legal Proceedings USPB is not currently involved in any litigation. However, because its ownership interest in NBP is USPB’s largest asset and because of the cattle procurement and distribution relationship between USPB and NBP, litigation involving NBP may impact USPB. NBP is a defendant in (i) five putative class action lawsuits in the United States District Court, Minnesota District, alleging that it violated the Sherman Antitrust Act, the Packers and Stockyards Act, the Commodity Exchange Act, and various state laws and (ii) putative class action lawsuits in the Supreme Court of British Columbia and the Superior Court of Quebec, Montreal District, alleging that it violated the Canadian Competition Act and various provincial laws (the “Beef Class Actions”). The Beef Class Actions are entitled In re Cattle Antitrust Litigation Peterson et al. v. JBS USA Food Company Holdings, et al. In re DPP Beef Litigation Erbert & Gerbert’s, Inc. v. JBS USA Food Company Holdings, et al. Specht v. Tyson Foods, Inc., et al. Giang Bui v. Cargill, Incorporated, et al Sylvie De Bellefeuille v. Cargill, Inc. et al. Peterson Winn-Dixie Stores, Inc. and Bi-Lo Holding, LLC v. Cargill, Inc., et al. Cheney Brothers, Inc. v. Cargill, Inc., et al. Subway v. Cargill, Inc. et al. Amory Investments LLC v. Cargill, Inc. et al. Associated Grocers, Inc., et al. v. Cargill, Inc., et al. Giant Eagle, Inc. v. Cargill, Inc., et al. Sysco Corporation v. Cargill, Inc. John Soules Foods, Inc. v. Cargill, Inc., et al. Associated Grocers of the South et al. v. Cargill, Inc., et al. The Kroger Co. et al. v. Cargill, Inc., et al. ; Kraft Heinz Food Company v. Cargill Inc. et al. Aramark Food and Support Services Group., Inc. v. Cargill Inc., et al. ARCOP, Inc. v. Cargill, Inc., et al. CKE Restaurant Holdings, Inc. v. Cargill, Inc., et al. Sonic Industries Services Inc. v. Cargill, Inc. et al. Restaurant Services, Inc. v. Cargill, Inc., et al. Whatabrands LLC et al. vs. Cargill, Inc., et al. Sherwood Food Distributors, L.L.C. et al. vs. Cargill, Inc., et al. ALDI Inc vs Cargill, Inc,. et al, Quirch Foods, LLC v. Cargill, Inc., et al Compass Group USA, Inc. v. Cargill, Inc., et al. Conagra Brands, Inc. v. Cargill, Inc., et al., In re: Cattle and Beef Antitrust Litigation In addition to the above antitrust litigation, NBP is subject to an investigation by the United States Department of Justice (“DOJ”) and approximately 30 state attorneys general regarding fed cattle and beef packing markets. NBP is cooperating with these investigations and is working with the DOJ and the relevant states to provide information requested in connection with the investigations. NBP believes it has meritorious defenses to any potential claims that might arise out of these government investigations, although there can be no assurance as to the outcome of these investigations or the impact on NBP’s consolidated financial position, results of operations and cash flows. NBP is a defendant in a putative class action lawsuit entitled Brown, et al. v. JBS USA Food Company et al. NBP is a party to various other lawsuits and claims arising out of the operation of its business. Management of NBP believes the ultimate resolution of such matters should not have a material adverse effect on NBP’s financial condition, results of operations or liquidity. USPB is not able to assess what impact, if any, the actions described above will have on NBP or USPB. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | (11) Subsequent Events USPB has evaluated subsequent events through the date the financial statements were issued and determined there were no such other events to report. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting for Investment in NBP | Accounting for Investment in NBP 15.0729 Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP. If a decrease in value is deemed other than temporary, the Company would record an impairment charge, which may have an impact on the values of USPB’s Class A and Class B units. NBP’s plants are currently operational and its results of operations are profitable, as reflected in Note 6. As a result, USPB believes the fair value of its investment in NBP exceeds the carrying value. |
Cash and Cash Equivalents | Cash and Cash Equivalents 75.8 |
Certificates of Deposit | Certificates of Deposit 20 4.28 September 25, 2023 |
Employee Compensation Plans (Ta
Employee Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Accrued liabilities | Schedule of Accrued liabilities September 30, 2023 December 31, 2022 (unaudited) Accrued compensation and benefits $ 166 $ 1,210 Other liabilities 9,398 9,202 Total phantom accrual $ 9,564 $ 10,412 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of earnings per unit | Schedule of Reconciliation of earnings per unit Income Per Unit Calculation 14 weeks ended 13 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Basic and diluted earnings per unit: Income attributable to USPB available to unitholders (numerator) Class A $ 1,495 $ 4,312 $ 3,691 $ 15,489 Class B $ 13,459 $ 38,812 $ 33,214 $ 139,396 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 $ 2.03 $ 5.86 $ 5.02 $ 21.06 Class B $ 17.82 $ 51.38 $ 43.97 $ 184.54 |
Investment in National Beef P_2
Investment in National Beef Packing Company, LLC (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment roll forward | Schedule of Investment roll forward Investment at December 31, 2022 $ 179,556 Equity in net income for twelve-week period 7,600 Distributions – Investment at March 25, 2023 187,156 Equity in net income for thirteen-week period 14,705 Distributions (10,464 ) Investment at June 24, 2023 191,397 Equity in net income for fourteen-week period 14,755 Distributions (24,808 ) Investment at September 30, 2023 $ 181,344 Investment at December 25, 2021 $ 213,290 Equity in net income for thirteen-week period 62,606 Distributions (52,755 ) Investment at March 26, 2022 223,141 Equity in net income for thirteen-week period 52,779 Distributions (82,907 ) Investment at June 25, 2022 193,013 Equity in net income for thirteen-week period 44,509 Distributions (27,318 ) Investment at September 24, 2022 $ 210,204 |
Schedule of Operations for NBP | Schedule of Operations for NBP 14 weeks ended 13 weeks ended 39 weeks ended September 30, 2023 September 24, 2022 September 30, 2023 September 24, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 3,374,888 $ 2,846,156 $ 8,896,989 $ 8,819,780 Costs and expenses: Cost of sales 3,208,887 2,492,127 8,453,249 7,587,149 Selling, general, and administrative expenses 23,232 24,408 75,323 69,628 Depreciation and amortization 36,278 30,945 98,835 90,254 Total costs and expenses 3,268,397 2,547,480 8,627,407 7,747,031 Operating income 106,491 298,676 269,582 1,072,749 Other income (expense): Interest income 4 23 47 90 Interest expense (8,105 ) (1,121 ) (19,266 ) (4,809 ) Income before taxes 98,390 297,578 250,363 1,068,030 Income tax expense 504 (1,285 ) (1,491 ) (4,225 ) Net income $ 98,894 $ 296,293 $ 248,872 $ 1,063,805 |
Members_ Capital (Tables)
Members’ Capital (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Members Capital | |
Schedule of Reconciliation of members’ capital | Schedule of Reconciliation of members’ capital Balance at December 31, 2022 $ 263,941 Net income for the twelve-week period ended March 25, 2023 7,381 Balance at March 25, 2023 271,322 Net income for the thirteen-week period ended June 24, 2023 14,570 Member distributions Class A ($6.56 per Class A unit) (4,877 ) Class B ($58.17 per Class B unit) (43,895 ) Balance at June 24, 2023 237,120 Net income for the fourteen-week period ended September 30, 2023 14,954 Member distributions Class A ($0.49 per Class A unit) (362 ) Class B ($4.31 per Class B unit) (3,254 ) Balance at September 30, 2023 $ 248,458 Balance at December 25, 2021 $ 332,272 Net income for the thirteen-week period ended March 26, 2022 61,047 Member distributions Class A ($16.16 per Class A unit) (11,888 ) Class B ($141.64 per Class B unit) (106,994 ) Balance at March 26, 2022 274,437 Net income for the thirteen-week period ended June 25, 2022 50,714 Member distributions Class A ($9.03 per Class A unit) (6,638 ) Class B ($79.10 per Class B unit) (59,752 ) Balance at June 25, 2022 258,761 Net income for the thirteen-week period ended September 24, 2022 43,124 Member distributions Class A ($1.25 per Class A unit) (917 ) Class B ($10.93 per Class B unit) (8,258 ) Balance at September 24, 2022 $ 292,710 |
Accounting Policies (Details Na
Accounting Policies (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 27, 2023 |
Cash and Cash Equivalents, at Carrying Value | $ 75,800 | |
Certificate of Deposit | $ 20,000 | |
Certificate of deposit interest rate | 4.28% | |
Maturity date of CD | Sep. 25, 2023 | |
National Beef Packing Company LLC [Member] | ||
Equity investment ownership percentage | 15.0729% |
Noncompetition Agreement (Detai
Noncompetition Agreement (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Noncompetition Agreement | ||
Contractual Obligation | $ 300 | $ 300 |
Employee Compensation Plans (De
Employee Compensation Plans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Retirement Benefits [Abstract] | ||
Accrued compensation and benefits | $ 166 | $ 1,210 |
Other liabilities | 9,398 | 9,202 |
Total phantom accrual | $ 9,564 | $ 10,412 |
Employee Compensation Plans (_2
Employee Compensation Plans (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Accrued compensation and benefits | $ 995 | $ 2,667 |
Management Phantom Unit Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Accrued Liabilities, Current | 9,600 | 10,400 |
Cash Incentive And Bonus Plans [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Accrued compensation and benefits | $ 800 | $ 1,500 |
Earnings Per Unit (Details)
Earnings Per Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Class A Units [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income attributable to USPB available to unitholders (numerator) | $ 1,495 | $ 4,312 | $ 3,691 | $ 15,489 |
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | 2.03 | 5.86 | 5.02 | 21.06 |
Class B Units [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income attributable to USPB available to unitholders (numerator) | $ 13,459 | $ 38,812 | $ 33,214 | $ 139,396 |
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | 17.82 | 51.38 | 43.97 | 184.54 |
Investment in National Beef P_3
Investment in National Beef Packing Company, LLC (Details - Investment rollforward) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 24, 2023 | Mar. 25, 2023 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Beginning Investment Balance | $ 191,397 | $ 187,156 | $ 179,556 | $ 193,013 | $ 223,141 | $ 213,290 | $ 179,556 | $ 213,290 |
Equity in net income | 14,755 | 14,705 | 7,600 | 44,509 | 52,779 | 62,606 | 37,060 | 159,894 |
Distributions | (24,808) | (10,464) | 0 | (27,318) | (82,907) | (52,755) | (35,271) | (162,980) |
Ending Investment Balance | $ 181,344 | $ 191,397 | $ 187,156 | $ 210,204 | $ 193,013 | $ 223,141 | $ 181,344 | $ 210,204 |
Investment in National Beef P_4
Investment in National Beef Packing Company, LLC (Details - Summary of operations) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 24, 2022 | Sep. 30, 2023 | Sep. 24, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Net sales | $ 3,374,888 | $ 2,846,156 | $ 8,896,989 | $ 8,819,780 |
Costs and expenses: | ||||
Cost of sales | 3,208,887 | 2,492,127 | 8,453,249 | 7,587,149 |
Selling, general, and administrative expenses | 23,232 | 24,408 | 75,323 | 69,628 |
Depreciation and amortization | 36,278 | 30,945 | 98,835 | 90,254 |
Total costs and expenses | 3,268,397 | 2,547,480 | 8,627,407 | 7,747,031 |
Operating income | 106,491 | 298,676 | 269,582 | 1,072,749 |
Other income (expense): | ||||
Interest income | 4 | 23 | 47 | 90 |
Interest expense | (8,105) | (1,121) | (19,266) | (4,809) |
Income before taxes | 98,390 | 297,578 | 250,363 | 1,068,030 |
Income tax expense | 504 | (1,285) | (1,491) | (4,225) |
Net income | $ 98,894 | $ 296,293 | $ 248,872 | $ 1,063,805 |
Investment in National Beef P_5
Investment in National Beef Packing Company, LLC (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Income tax receivable | $ 2,100 | $ 900 |
National Beef Packing Company LLC [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Income tax payable | $ 1,900 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
State income tax payable | $ 200 | $ 900 |
Long-term Debt and Loan Agree_2
Long-term Debt and Loan Agreements (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Jul. 06, 2023 | |
Line of Credit Facility [Line Items] | ||
Interest rate percentage | 0% | |
Co Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit line maximum borrowing capacity | $ 1 | |
Credit line expiration date | Jun. 30, 2025 | |
Credit line, remaining borrowing capacity | $ 1 |
Members Capital (Details)
Members Capital (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 24, 2023 | Mar. 25, 2023 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | |
Beginning balance | $ 237,120 | $ 271,322 | $ 263,941 | $ 258,761 | $ 274,437 | $ 332,272 |
Allocation of net income | 14,954 | 14,570 | 7,381 | 43,124 | 50,714 | 61,047 |
Ending balance | 248,458 | 237,120 | $ 271,322 | 292,710 | 258,761 | 274,437 |
Class A Units [Member] | ||||||
Member distributions | (362) | (4,877) | (917) | (6,638) | (11,888) | |
Class B Units [Member] | ||||||
Member distributions | $ (3,254) | $ (43,895) | $ (8,258) | $ (59,752) | $ (106,994) |