Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ADVANCED BIOENERGY, LLC | |
Entity Central Index Key | 1,325,740 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,410,851 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 17,483 | $ 15,416 |
Accounts receivable: | ||
Trade accounts receivable | 3,315 | 4,492 |
Other receivables | 866 | 584 |
Inventories | 4,558 | 4,530 |
Prepaid expenses | 907 | 712 |
Restricted cash | 1,000 | 1,000 |
Total current assets | 28,129 | 26,734 |
Property and equipment, net | 31,860 | 32,231 |
Other assets | 899 | 1,068 |
Total assets | 60,888 | 60,033 |
Current liabilities: | ||
Accounts payable | 4,071 | 3,634 |
Accrued expenses | 2,036 | 2,243 |
Current portion of long-term debt (stated principal amount of $4,850 and $4,000 at June 30, 2017 and September 30, 2016, respectively) | 4,754 | 3,904 |
Total current liabilities | 10,861 | 9,781 |
Other liabilities | 33 | 40 |
Long-term debt (stated principal amount of $21,040 and $24,000 at June 30, 2017 and September 30, 2016, respectively) | 20,801 | 23,689 |
Total liabilities | 31,695 | 33,510 |
Members' equity: | ||
Members' capital, no par value, 25,410,851 units issued and outstanding | 44,826 | 48,638 |
Accumulated deficit | (15,633) | (22,115) |
Total members' equity | 29,193 | 26,523 |
Total liabilities and members' equity | $ 60,888 | $ 60,033 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Current portion of long-term debt (stated principal amount) | $ 4,850 | $ 4,000 |
Principal amount of long-term debt | $ 21,040 | $ 24,000 |
Members' capital, par value | ||
Members' capital, units issued | 25,410,851 | 25,410,851 |
Members' capital, units outstanding | 25,410,851 | 25,410,851 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales | ||||
Ethanol and related products | $ 33,819 | $ 37,052 | $ 106,113 | $ 110,232 |
Other | 183 | |||
Total net sales | 33,819 | 37,052 | 106,113 | 110,415 |
Cost of goods sold | 32,301 | 36,591 | 96,255 | 112,859 |
Gross profit (loss) | 1,518 | 461 | 9,858 | (2,444) |
Selling, general and administrative expenses | 997 | 750 | 2,907 | 2,419 |
Operating income (loss) | 521 | (289) | 6,951 | (4,863) |
Other income, net | 51 | 1 | 186 | 300 |
Interest income | 2 | 5 | 10 | 46 |
Interest expense | (217) | (294) | (665) | (671) |
Net income (loss) | $ 357 | $ (577) | $ 6,482 | $ (5,188) |
Weighted average units outstanding - basic and diluted | 25,411 | 25,411 | 25,411 | 25,411 |
Income (loss) per unit - basic and diluted | $ 0.01 | $ (0.02) | $ 0.26 | $ (0.20) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Members' Equity - 9 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Member's Capital [Member] | Accumulated Deficit [Member] |
Beginning Balance at Sep. 30, 2016 | $ 26,523 | $ 48,638 | $ (22,115) |
Beginning Balance, shares at Sep. 30, 2016 | 25,410,851 | 25,410,851 | |
Distribution to unit holders | $ (3,812) | $ (3,812) | |
Net income | 6,482 | 6,482 | |
Ending Balance at Jun. 30, 2017 | $ 29,193 | $ 44,826 | $ (15,633) |
Ending Balance, shares at Jun. 30, 2017 | 25,410,851 | 25,410,851 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,482 | $ (5,188) |
Adjustments to reconcile net income (loss) to operating activities cash flows: | ||
Depreciation | 2,851 | 8,504 |
Amortization of deferred financing costs | 72 | 50 |
Amortization of deferred rent | (7) | (21) |
Amortization of additional carrying value of debt | (699) | |
(Gain) on disposal of assets | (28) | (15) |
(Gain) on troubled debt restructuring | (322) | |
Change in working capital components: | ||
Trade accounts receivable | 1,177 | (1,735) |
Other receivables | (282) | (139) |
Inventories | (28) | 274 |
Prepaid expenses | (195) | (61) |
Accounts payable | 506 | (1,780) |
Accrued expenses | (207) | (297) |
Net cash provided by (used in) operating activities | 10,341 | (1,429) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,521) | (917) |
Proceeds from sale of assets | 24 | |
Change in other assets | 169 | 116 |
Change in restricted cash | 3,079 | |
Net cash provided by (used in) investing activities | (2,352) | 2,302 |
Cash flows from financing activities: | ||
Payments on debt | (3,212) | (33,069) |
Proceeds from debt | 1,102 | 30,000 |
Distribution to unit holders | (3,812) | |
Net cash (used in) financing activities | (5,922) | (3,069) |
Net increase (decrease) in cash and cash equivalents | 2,067 | (2,196) |
Beginning cash and cash equivalents | 15,416 | 16,566 |
Ending cash and cash equivalents | 17,483 | 14,370 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 613 | $ 663 |
Supplemental disclosure of non-cash financing and investing activities: | ||
Accounts payable and accrued expenses related to fixed assets | $ 15 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies The consolidated financial statements include the accounts of Advanced BioEnergy, LLC (“ABE” or the “Company”) and its wholly owned subsidiaries, ABE Fairmont, LLC (“ABE Fairmont”) and ABE South Dakota, LLC (“ABE South Dakota”). Substantially all of the assets of ABE Fairmont were sold in December 2012 and the subsidiary is now inactive. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, or GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The interim financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2016. The financial information as of June 30, 2017 and the results of operations for the three and nine months ended June 30, 2017 are not necessarily indicative of the results for the fiscal year ending September 30, 2017. In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary for fair presentation. The Company currently owns two ethanol production facilities in Aberdeen and Huron, South Dakota with a combined production capacity of 80 million gallons per year. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash balances are maintained in bank depositories and periodically exceed federally insured limits. The Company has not experienced losses in these accounts. Restricted cash at September 30, 2016 and June 30, 2017 included a deposit for a rail car sublease. Fair Value of Financial Instruments Financial instruments include cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued expenses, and long-term debt. We estimate the fair value of the long-term debt based on level 3 inputs, including the current anticipated interest rate that management believes would be available to the Company for similar debt, considering the current credit risk of the Company and other market factors. Based on these factors, the fair value of the long-term debt is currently estimated to approximate carrying value. Excluding cash and cash equivalents, the fair value of the other financial instruments are estimated to approximate carrying value due to the short-term nature of these instruments, and are considered to be Level 3 inputs. Receivables Credit sales are made to a relatively small number of customers with no collateral required. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and considering a customer’s financial condition, credit history and current economic conditions. Receivables are written off if deemed uncollectible. Recoveries of receivables previously written off are recorded when received. There was no allowance for doubtful accounts recorded at June 30, 2017 or September 30, 2016. Inventories Ethanol inventory, raw materials, work-in-process and parts inventory are valued using methods that approximate the lower of cost (first-in, first-out) or net realizable value (“NRV”). Distillers grains and related products are stated at NRV. In the valuation of inventories and purchase and sale commitments, the Company determines NRV by estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Property and Equipment Property and equipment is carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives: Office equipment 3-7 Years Other equipment 1-5 Years Process equipment 15 Years Buildings 40 Years Prior to June 30, 2016, the Company used an estimated useful life of 10 years for process equipment. Based on a re-evaluation of the useful lives of process equipment it conducted in the fiscal 2016 fourth quarter, the Company determined a change in estimate was necessary. Accordingly, the Company increased the estimated useful life for process equipment from 10 to 15 years in the fiscal 2016 fourth quarter. As a result of this change in estimate, depreciation expense was lower by approximately $5.3 million, or $0.21 per unit, in the nine months ended June 2017 than in the nine months ended June 2016. Maintenance and repairs are charged to expense as incurred; major improvements and betterments are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows from operations are less than the carrying value of the asset group. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds the estimated fair value on that date. Commodity Sales and Purchase Contracts, Derivative Instruments The Company enters into forward sales contracts for ethanol, distillers and corn oil, and purchase contracts for corn and natural gas. The Company classifies these sales and purchase contracts as normal sales and purchase contracts and accordingly these contracts are not marked to market. These contracts provide for the sale or purchase of an item other than a financial instrument or derivative instrument that will be delivered in quantities expected to be sold or used over a reasonable period in the normal course of business. In addition, certain derivative financial instruments that meet the criteria for derivative accounting treatment also qualify for a scope exception to derivative accounting, as they are considered normal purchases and sales. The availability of this exception is based on the assumption that the Company has the ability and it is probable that it will deliver or take delivery of the underlying item. Derivatives that are considered to be normal purchases and sales are exempt from derivative accounting treatment, and are accounted for under accrual accounting. Revenue Recognition Ethanol revenue is recognized when product title and all risk of ownership is transferred to the customer as specified in the contractual agreements with the marketers. Under the terms of the marketing agreements, revenue is recognized when product is loaded into rail cars or trucks for shipment. Revenue from the sale of co-products is recorded when title and all risk of ownership transfers to customers. Co-products are normally shipped free on board (“FOB”) shipping point. In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, commissions due to the marketers are deducted from the gross sale price at the time of payment. Interest income is recognized as earned. Income per Unit Basic and diluted income per unit is computed using the weighted-average number of units outstanding during each period presented. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles, or GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Income Taxes The Company has elected to be treated as a partnership for tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. The Company files income tax returns in the U.S. federal and various state jurisdictions. Recent Accounting Pronouncements Effective October 1, 2018, the Company will adopt the amended guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” which requires revenue recognition to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated standard permits either the retrospective prior period reporting or cumulative effect transition method. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard requires recognition of the assets and liabilities that arise from leases. Accordingly, a lessee will recognize a right-of-use (“ROU”) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The lease liability will initially be measured at the present value of the future minimum lease payments over the lease term. The ROU asset will initially be measured as the sum of the initial lease liability, initial costs directly attributable to negotiating and arranging the lease, and payments made by a lessee to the lessor at or before the lease commencement date less any lease incentives received. Lessees can make an accounting policy election by class of underlying asset not to recognize a ROU asset and corresponding lease liability for leases with a term of 12 months or less. Accounting by lessors will remain largely unchanged from current U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that companies may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The transition guidance also provides specific guidance for sale-and-leaseback transactions, build-to-suit leases, leveraged leases, and amounts previously recognized in accordance with the business combinations guidance for leases. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We are currently evaluating the potential effect of this new accounting standard |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories A summary of inventories is as follows (in thousands): June 30, September 30, 2017 2016 Chemicals $ 927 $ 814 Work in process 722 705 Ethanol 954 1,180 Distillers grain 143 45 Supplies and parts 1,812 1,786 Total $ 4,558 $ 4,530 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment A summary of property and equipment is as follows (in thousands): June 30, September 30, 2017 2016 Land $ 1,811 $ 1,811 Buildings 8,107 8,097 Process equipment 109,123 105,713 Other equipment 72 - Office equipment 1,763 1,600 Construction in process 392 1,571 121,268 118,792 Accumulated depreciation (89,408 ) (86,561 ) Property and equipment, net $ 31,860 $ 32,231 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 4. Long-term Debt A summary of long-term debt is as follows (in thousands, except percentages): June 30, 2017 June 30, September 30, Interest Rate 2017 2016 ABE South Dakota: Senior debt principal - variable 4.49% $ 25,890 $ 28,000 Deferred financing costs N/A (335 ) (407 ) Total outstanding $ 25,555 $ 27,593 The estimated maturities of debt are as follows (in thousands): Senior Debt Deferred Due By June 30: Principal Financing Total 2018 $ 4,850 $ (96 ) $ 4,754 2019 4,040 (96 ) 3,944 2020 4,000 (95 ) 3,905 2021 13,000 (48 ) 12,952 Total debt $ 25,890 $ (335 ) $ 25,555 2015 Senior Credit Agreement for the South Dakota Plants On December 29, 2015, ABE South Dakota entered into a Master Credit Agreement (“2015 Credit Agreement”) with AgCountry Farm Credit Services, PCA as lender, (“AgCountry”) to refinance its existing 2010 Senior Credit Agreement. On December 29, 2015, the Company also entered into (i) a First Supplement to the 2015 Credit Agreement covering a $10.0 million Revolving Term Facility and (ii) a Second Supplemental covering a $20.0 million Term Loan. The transaction funded on December 30, 2015. The $20.0 million Term Loan has a variable interest rate (“Variable Rate”) equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. The applicable LIBOR interest rate at June 30, 2017 was 0.99%. Beginning April 1, 2016, the Company began making quarterly principal payments of $1.0 million, plus accrued interest, on the Term Loan. The Term Loan will be fully amortized over five years with the final payment on January 1, 2021. The Company may elect one or more fixed or adjustable interest rates, rather than the Variable Rate, based on AgCountry’s cost of funds at the time of the election, plus the Margin. Any election must apply to $1.0 million or more owing on the Term Loan. At June 30, 2017, the balance of the Term Loan was $15.0 million. The $10.0 million Revolving Term Facility also has a Variable Rate equal to the one-month LIBOR rate plus an initial Margin of 350 basis points. Borrowings under the Revolving Term Facility may be advanced, repaid and re-borrowed during the term. The Company is required to make quarterly interest payments on the Revolving Term Facility, with the full principal amount outstanding due on January 1, 2021. Under the Revolving Term Facility, the Company is required to pay unused commitment fees of 50 basis points. At June 30, 2017, the balance of the Revolving Term Facility was $10.0 million. The Margin will (i) decrease to 3.25% when the aggregate principal balance of all outstanding loans and the unfunded commitment level is $20.0 million or less, and (ii) decrease to 3.00% when this amount is $15.0 million or less. ABE South Dakota, LLC also entered into a Security Agreement with AgCountry under which borrowings under the 2015 Credit Agreement are secured by substantially all of ABE South Dakota’s assets. AgCountry holds a first priority security interest and mortgage in all inventory, accounts receivable, intangibles, equipment, fixtures, buildings, and a first mortgage in land owned or leased by ABE South Dakota. The 2015 Credit Agreement also includes customary financial and non-financial covenants that limit capital expenditures, distributions and debt and require minimum working capital, current ratio, debt to EBITDA, and fixed charge coverage ratios. 2016 Term Loan On September 28, 2016, ABE South Dakota entered into the Third Supplement to the Master Credit Agreement (“2016 Term Loan”) with AgCountry to finance the corn oil extraction system at the Huron plant. The original loan commitment for the 2016 Term Loan was $1.7 million, however, the Company drew only $1.1 million of this commitment. The loan has a variable interest rate equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. The Company began making quarterly payments of accrued interest on the 2016 Term Loan on January 1, 2017, and began making quarterly principal payments of $212,500 on April 1, 2017. Amendment and Waivers to 2015 Credit Agreement On September 28, 2016, ABE South Dakota entered into a Limited Waiver and First Amendment to Master Credit Agreement (“First Amendment”) to (i) eliminate the Owner’s Equity Ratio Covenant, (ii) temporarily increase the Capital Expenditures Covenant to $3.0 million for fiscal 2016 to finance the corn oil extraction system at the Huron plant, and (iii) waive other obligations related to the post closing agreement. On November 19, 2016, ABE South Dakota received a waiver to the 2015 Credit Agreement from AgCountry that waived certain Events of Default related to the Working Capital requirement and the Total Outstanding Debt to EBITDA Ratio at September 30, 2016. ABE Letter of Credit The Company has a $1.0 million irrevocable and non-transferable standby letter of credit related to a rail car sublease. This letter of credit is collateralized by $1.0 million of cash in a restricted account; the cash in this account has been classified as restricted cash. |
Major Customers
Major Customers | 9 Months Ended |
Jun. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Major Customers | 5. Major Customers ABE South Dakota has ethanol marketing agreements with NGL Energy Partners, LP (“NGL”)(formerly Gavilon, LLC), a diversified energy business. These ethanol marketing agreements require that we sell to NGL all of the denatured fuel-grade ethanol produced at the South Dakota plants. The term of these ethanol marketing agreements expires on June 30, 2019. ABE South Dakota is party to a co-product marketing agreement with Dakotaland Feeds, LLC (“Dakotaland Feeds”), whereby Dakotaland Feeds markets the local sale of wet distillers’ grains produced at the ABE South Dakota Huron plant and modified distillers’ produced at the Aberdeen plant to third parties for an agreed-upon commission. ABE South Dakota has a marketing agreement with Gavilon (as defined below) to market the dried distillers’ grains from the Aberdeen and Huron plants through July 31, 2018. Sales and receivables from the ABE South Dakota’s major customers were as follows (in thousands): As of and for the Nine Months Ending As of and for the Nine Months Ending As Of June 30, June 30, September 30, 2017 2016 2016 NGL Energy - Ethanol Nine months revenues $ 87,325 $ 88,579 Receivable balance at period end 2,659 4,676 $ 3,642 Gavilon - Corn Oil & Distillers Grains Nine months revenues $ 9,958 $ 11,518 Receivable balance at period end 253 478 $ 323 Dakotaland Feeds - Distillers Grains Nine months revenues $ 7,897 $ 9,040 Receivable balance at period end 364 386 $ 470 |
Risk Management
Risk Management | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Risk Management | 6. Risk Management The Company is exposed to a variety of market risks, including the effects of changes in commodity prices and interest rates. These financial exposures are monitored and managed by the Company as an integral part of its overall risk management program. The Company’s risk management program seeks to reduce the potentially adverse effects that the volatility of these markets may have on its current and future operating results. To reduce these effects, the Company generally attempts to fix corn purchase prices and related sale prices of ethanol, distillers’ grains and corn oil, with forward purchase and sale contracts to lock in future operating margins. The Company had entered into the following fixed price forward contracts at June 30, 2017: Commodity Type Quantity Amount (in 000's) Period Covered Through Ethanol Sale 1,180,800 gallons $ 1,618 July 31, 2017 Distillers grains Sale 11,801 tons 437 July 31, 2017 Corn oil Sale 250,000 lbs 65 July 31, 2017 Corn Purchase 250,000 bushels 864 July 31, 2017 Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales” and therefore are not marked to market in the financial statements. |
Parent Financial Statements
Parent Financial Statements | 9 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Financial Statements | 7. Parent Financial Statements The following financial information represents the unconsolidated financial statements of Advanced BioEnergy, LLC (“ABE”) as of June 30, 2017 and September 30, 2016, and for the nine months ended June 30, 2017 and 2016. ABE’s ability to receive distributions from ABE South Dakota is based on the terms and conditions in ABE South Dakota credit agreement. Under its current credit agreement, ABE South Dakota is allowed to make equity distributions of up to 40% of its net income and may distribute up to 100% of its net income if it achieves and maintains an owner’s equity ratio of at least 60% and working capital of at least $15 million. There were no distributions from ABE South Dakota during the last three fiscal years. Advanced BioEnergy, LLC (Unconsolidated) Balance Sheets (Dollars in thousands) June 30, September 30, 2017 2016 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 825 $ 5,176 Restricted cash 1,000 1,000 Prepaids 25 - Total current assets 1,850 6,176 Property and equipment, net 69 118 Other assets: Investment in ABE South Dakota 27,414 20,420 Other assets 32 32 Total assets $ 29,365 $ 26,746 LIABILITIES AND MEMBERS' EQUITY Liabilities: Accounts payable $ 1 $ 5 Accrued expenses 138 179 Other liabilities 33 39 Total liabilities 172 223 Members' equity: Members' capital, no par value, 25,410,851 units issued and outstanding 44,826 48,638 Accumulated deficit (15,633 ) (22,115 ) Total members' equity 29,193 26,523 Total liabilities and members' equity $ 29,365 $ 26,746 Advanced BioEnergy, LLC (Unconsolidated) Statements of Operations (Dollars in thousands) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Equity in earnings (losses) of consolidated subsidiary $ 522 $ (420 ) $ 6,994 $ (4,773 ) Selling, general and administrative expenses (167 ) (162 ) (521 ) (455 ) Operating income (loss) 355 (582 ) 6,473 (5,228 ) Other expense - - - (6 ) Interest income 2 5 9 46 Net income (loss) $ 357 $ (577 ) $ 6,482 $ (5,188 ) Advanced BioEnergy, LLC (Unconsolidated) Statements of Cash Flows (Dollars in thousands) (Unaudited) Nine Months Ended June 30, June 30, 2017 2016 Cash flows from operating activities: Net income (loss) $ 6,482 $ (5,188 ) Adjustments to reconcile net income (loss) to operating activities cash flows: Depreciation 49 83 Equity in (earnings) losses of consolidated subsidiaries (6,994 ) 4,773 Loss on disposal of fixed asset - 7 Amortization of deferred revenue and rent (6 ) (21 ) Change in working capital components: Other receivable - 6 Prepaid expenses (25 ) - Accounts payable (4 ) - Accrued expenses (41 ) (192 ) Net cash (used in) operating activities (539 ) (532 ) Cash flows from investing activities: Proceeds from sale of asset - 25 Change in restricted cash - (33 ) Net cash (used in) investing activities - (8 ) Cash flows from financing activities: Distribution to unit holders (3,812 ) (3,000 ) Distribution to subsidiary - 108 Net cash (used in) financing activities (3,812 ) (2,892 ) Net (decrease) in cash and cash equivalents (4,351 ) (3,432 ) Beginning cash and cash equivalents 5,176 8,158 Ending cash and cash equivalents $ 825 $ 4,726 |
Organization and Significant 14
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash balances are maintained in bank depositories and periodically exceed federally insured limits. The Company has not experienced losses in these accounts. Restricted cash at September 30, 2016 and June 30, 2017 included a deposit for a rail car sublease. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments include cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued expenses, and long-term debt. We estimate the fair value of the long-term debt based on level 3 inputs, including the current anticipated interest rate that management believes would be available to the Company for similar debt, considering the current credit risk of the Company and other market factors. Based on these factors, the fair value of the long-term debt is currently estimated to approximate carrying value. Excluding cash and cash equivalents, the fair value of the other financial instruments are estimated to approximate carrying value due to the short-term nature of these instruments, and are considered to be Level 3 inputs. |
Receivables | Receivables Credit sales are made to a relatively small number of customers with no collateral required. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and considering a customer’s financial condition, credit history and current economic conditions. Receivables are written off if deemed uncollectible. Recoveries of receivables previously written off are recorded when received. There was no allowance for doubtful accounts recorded at June 30, 2017 or September 30, 2016. |
Inventories | Inventories Ethanol inventory, raw materials, work-in-process and parts inventory are valued using methods that approximate the lower of cost (first-in, first-out) or net realizable value (“NRV”). Distillers grains and related products are stated at NRV. In the valuation of inventories and purchase and sale commitments, the Company determines NRV by estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives: Office equipment 3-7 Years Other equipment 1-5 Years Process equipment 15 Years Buildings 40 Years Prior to June 30, 2016, the Company used an estimated useful life of 10 years for process equipment. Based on a re-evaluation of the useful lives of process equipment it conducted in the fiscal 2016 fourth quarter, the Company determined a change in estimate was necessary. Accordingly, the Company increased the estimated useful life for process equipment from 10 to 15 years in the fiscal 2016 fourth quarter. As a result of this change in estimate, depreciation expense was lower by approximately $5.3 million, or $0.21 per unit, in the nine months ended June 2017 than in the nine months ended June 2016. Maintenance and repairs are charged to expense as incurred; major improvements and betterments are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows from operations are less than the carrying value of the asset group. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds the estimated fair value on that date. |
Commodity Sales and Purchase Contracts, Derivative Instruments | Commodity Sales and Purchase Contracts, Derivative Instruments The Company enters into forward sales contracts for ethanol, distillers and corn oil, and purchase contracts for corn and natural gas. The Company classifies these sales and purchase contracts as normal sales and purchase contracts and accordingly these contracts are not marked to market. These contracts provide for the sale or purchase of an item other than a financial instrument or derivative instrument that will be delivered in quantities expected to be sold or used over a reasonable period in the normal course of business. In addition, certain derivative financial instruments that meet the criteria for derivative accounting treatment also qualify for a scope exception to derivative accounting, as they are considered normal purchases and sales. The availability of this exception is based on the assumption that the Company has the ability and it is probable that it will deliver or take delivery of the underlying item. Derivatives that are considered to be normal purchases and sales are exempt from derivative accounting treatment, and are accounted for under accrual accounting. |
Revenue Recognition | Revenue Recognition Ethanol revenue is recognized when product title and all risk of ownership is transferred to the customer as specified in the contractual agreements with the marketers. Under the terms of the marketing agreements, revenue is recognized when product is loaded into rail cars or trucks for shipment. Revenue from the sale of co-products is recorded when title and all risk of ownership transfers to customers. Co-products are normally shipped free on board (“FOB”) shipping point. In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, commissions due to the marketers are deducted from the gross sale price at the time of payment. Interest income is recognized as earned. |
Income Per Unit | Income per Unit Basic and diluted income per unit is computed using the weighted-average number of units outstanding during each period presented. |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles, or GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. |
Income Taxes | Income Taxes The Company has elected to be treated as a partnership for tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. The Company files income tax returns in the U.S. federal and various state jurisdictions. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective October 1, 2018, the Company will adopt the amended guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” which requires revenue recognition to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated standard permits either the retrospective prior period reporting or cumulative effect transition method. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard requires recognition of the assets and liabilities that arise from leases. Accordingly, a lessee will recognize a right-of-use (“ROU”) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The lease liability will initially be measured at the present value of the future minimum lease payments over the lease term. The ROU asset will initially be measured as the sum of the initial lease liability, initial costs directly attributable to negotiating and arranging the lease, and payments made by a lessee to the lessor at or before the lease commencement date less any lease incentives received. Lessees can make an accounting policy election by class of underlying asset not to recognize a ROU asset and corresponding lease liability for leases with a term of 12 months or less. Accounting by lessors will remain largely unchanged from current U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that companies may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The transition guidance also provides specific guidance for sale-and-leaseback transactions, build-to-suit leases, leveraged leases, and amounts previously recognized in accordance with the business combinations guidance for leases. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We are currently evaluating the potential effect of this new accounting standard |
Organization and Significant 15
Organization and Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Estimated Useful Lives of Property and Equipment | Property and equipment is carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives: Office equipment 3-7 Years Other equipment 1-5 Years Process equipment 15 Years Buildings 40 Years |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories is as follows (in thousands): June 30, September 30, 2017 2016 Chemicals $ 927 $ 814 Work in process 722 705 Ethanol 954 1,180 Distillers grain 143 45 Supplies and parts 1,812 1,786 Total $ 4,558 $ 4,530 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | A summary of property and equipment is as follows (in thousands): June 30, September 30, 2017 2016 Land $ 1,811 $ 1,811 Buildings 8,107 8,097 Process equipment 109,123 105,713 Other equipment 72 - Office equipment 1,763 1,600 Construction in process 392 1,571 121,268 118,792 Accumulated depreciation (89,408 ) (86,561 ) Property and equipment, net $ 31,860 $ 32,231 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | A summary of long-term debt is as follows (in thousands, except percentages): June 30, 2017 June 30, September 30, Interest Rate 2017 2016 ABE South Dakota: Senior debt principal - variable 4.49% $ 25,890 $ 28,000 Deferred financing costs N/A (335 ) (407 ) Total outstanding $ 25,555 $ 27,593 |
Schedule of Maturities of Long Term Debt | The estimated maturities of debt are as follows (in thousands): Senior Debt Deferred Due By June 30: Principal Financing Total 2018 $ 4,850 $ (96 ) $ 4,754 2019 4,040 (96 ) 3,944 2020 4,000 (95 ) 3,905 2021 13,000 (48 ) 12,952 Total debt $ 25,890 $ (335 ) $ 25,555 |
Major Customers (Tables)
Major Customers (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Sales and Receivables | Sales and receivables from the ABE South Dakota’s major customers were as follows (in thousands): As of and for the Nine Months Ending As of and for the Nine Months Ending As Of June 30, June 30, September 30, 2017 2016 2016 NGL Energy - Ethanol Nine months revenues $ 87,325 $ 88,579 Receivable balance at period end 2,659 4,676 $ 3,642 Gavilon - Corn Oil & Distillers Grains Nine months revenues $ 9,958 $ 11,518 Receivable balance at period end 253 478 $ 323 Dakotaland Feeds - Distillers Grains Nine months revenues $ 7,897 $ 9,040 Receivable balance at period end 364 386 $ 470 |
Risk Management (Tables)
Risk Management (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fixed Price Forward Contracts | The Company had entered into the following fixed price forward contracts at June 30, 2017: Commodity Type Quantity Amount (in 000's) Period Covered Through Ethanol Sale 1,180,800 gallons $ 1,618 July 31, 2017 Distillers grains Sale 11,801 tons 437 July 31, 2017 Corn oil Sale 250,000 lbs 65 July 31, 2017 Corn Purchase 250,000 bushels 864 July 31, 2017 |
Parent Financial Statements (Ta
Parent Financial Statements (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Advanced BioEnergy, LLC (Unconsolidated) Balance Sheets (Dollars in thousands) June 30, September 30, 2017 2016 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 825 $ 5,176 Restricted cash 1,000 1,000 Prepaids 25 - Total current assets 1,850 6,176 Property and equipment, net 69 118 Other assets: Investment in ABE South Dakota 27,414 20,420 Other assets 32 32 Total assets $ 29,365 $ 26,746 LIABILITIES AND MEMBERS' EQUITY Liabilities: Accounts payable $ 1 $ 5 Accrued expenses 138 179 Other liabilities 33 39 Total liabilities 172 223 Members' equity: Members' capital, no par value, 25,410,851 units issued and outstanding 44,826 48,638 Accumulated deficit (15,633 ) (22,115 ) Total members' equity 29,193 26,523 Total liabilities and members' equity $ 29,365 $ 26,746 |
Statements of Operations | Advanced BioEnergy, LLC (Unconsolidated) Statements of Operations (Dollars in thousands) (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, June 30, June 30, 2017 2016 2017 2016 Equity in earnings (losses) of consolidated subsidiary $ 522 $ (420 ) $ 6,994 $ (4,773 ) Selling, general and administrative expenses (167 ) (162 ) (521 ) (455 ) Operating income (loss) 355 (582 ) 6,473 (5,228 ) Other expense - - - (6 ) Interest income 2 5 9 46 Net income (loss) $ 357 $ (577 ) $ 6,482 $ (5,188 ) |
Statements of Cash Flows | Advanced BioEnergy, LLC (Unconsolidated) Statements of Cash Flows (Dollars in thousands) (Unaudited) Nine Months Ended June 30, June 30, 2017 2016 Cash flows from operating activities: Net income (loss) $ 6,482 $ (5,188 ) Adjustments to reconcile net income (loss) to operating activities cash flows: Depreciation 49 83 Equity in (earnings) losses of consolidated subsidiaries (6,994 ) 4,773 Loss on disposal of fixed asset - 7 Amortization of deferred revenue and rent (6 ) (21 ) Change in working capital components: Other receivable - 6 Prepaid expenses (25 ) - Accounts payable (4 ) - Accrued expenses (41 ) (192 ) Net cash (used in) operating activities (539 ) (532 ) Cash flows from investing activities: Proceeds from sale of asset - 25 Change in restricted cash - (33 ) Net cash (used in) investing activities - (8 ) Cash flows from financing activities: Distribution to unit holders (3,812 ) (3,000 ) Distribution to subsidiary - 108 Net cash (used in) financing activities (3,812 ) (2,892 ) Net (decrease) in cash and cash equivalents (4,351 ) (3,432 ) Beginning cash and cash equivalents 5,176 8,158 Ending cash and cash equivalents $ 825 $ 4,726 |
Organization and Significant 22
Organization and Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, gal in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($)Facility$ / sharesgal | Jun. 30, 2016 | |
Organization And Significant Accounting Policies [Line Items] | |||
Number of ethanol production facilities | Facility | 2 | ||
Cash and cash equivalents maturity period | Three months or less | ||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Decrease in depreciation expense | $ 5,300,000 | ||
Decrease in depreciation expense per unit | $ / shares | $ 0.21 | ||
Process Equipment [Member] | |||
Organization And Significant Accounting Policies [Line Items] | |||
Estimated useful life | 15 years | 15 years | 10 years |
South Dakota [Member] | |||
Organization And Significant Accounting Policies [Line Items] | |||
Capacity of production facilities | gal | 80 |
Organization and Significant 23
Organization and Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Office Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Office Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Other Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 1 year | ||
Other Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Process Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 15 years | 15 years | 10 years |
Buildings [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 40 years |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Summary of inventories | ||
Chemicals | $ 927 | $ 814 |
Work in process | 722 | 705 |
Ethanol | 954 | 1,180 |
Distillers grain | 143 | 45 |
Supplies and parts | 1,812 | 1,786 |
Total | $ 4,558 | $ 4,530 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 121,268 | $ 118,792 |
Accumulated depreciation | (89,408) | (86,561) |
Property and equipment, net | 31,860 | 32,231 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,811 | 1,811 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,107 | 8,097 |
Process Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 109,123 | 105,713 |
Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 72 | |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,763 | 1,600 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 392 | $ 1,571 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (335) | |
Senior debt principal - variable | 25,890 | |
Total outstanding | 25,555 | $ 27,593 |
ABE South Dakota [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (335) | (407) |
ABE South Dakota [Member] | Senior Debt Principal - Variable [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate variable | 4.49% | |
Senior debt principal - variable | $ 25,890 | $ 28,000 |
Long-term Debt - Schedule of Ma
Long-term Debt - Schedule of Maturities of Long Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | $ 25,890 | |
Deferred Financing Costs | (335) | |
Total | 25,555 | $ 27,593 |
2018 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 4,850 | |
Deferred Financing Costs | (96) | |
Total | 4,754 | |
2019 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 4,040 | |
Deferred Financing Costs | (96) | |
Total | 3,944 | |
2020 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 4,000 | |
Deferred Financing Costs | (95) | |
Total | 3,905 | |
2021 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 13,000 | |
Deferred Financing Costs | (48) | |
Total | $ 12,952 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Sep. 28, 2016 | Dec. 29, 2015 | Jun. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||
Restricted account collateral for letter of credit | $ 1,000,000 | $ 1,000,000 | ||
Standby Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Irrevocable and non-transferable standby letter of credit | 1,000,000 | |||
Restricted account collateral for letter of credit | $ 1,000,000 | |||
2016 Term Loan [Member] | ABE South Dakota [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, date of first required payment | Apr. 1, 2017 | |||
Principal amount of term loan payable | $ 212,500 | |||
Funds drawn from loan | $ 1,100,000 | |||
2016 Term Loan [Member] | ABE South Dakota [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate description | The loan has a variable interest rate equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. | |||
2016 Term Loan [Member] | ABE South Dakota [Member] | One-Month LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable rate | 3.50% | |||
2016 Term Loan [Member] | Third Supplemental Agreement [Member] | ABE South Dakota [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 1,700,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.25 % [Member] | ||||
Debt Instrument [Line Items] | ||||
Decrease in applicable margin | 3.25% | |||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.25 % [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Unfunded commitments | $ 20,000,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.00 % [Member] | ||||
Debt Instrument [Line Items] | ||||
Decrease in applicable margin | 3.00% | |||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.00 % [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Unfunded commitments | $ 15,000,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | Revolving Term Loan [Member] | ABE South Dakota [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Jan. 1, 2021 | |||
Balance amount | $ 10,000,000 | |||
Unused commitment fees | 0.50% | |||
AgCountry Farm Senior Credit Agreement [Member] | Revolving Term Loan [Member] | ABE South Dakota [Member] | 30-Day LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable rate | 3.50% | |||
AgCountry Farm Senior Credit Agreement [Member] | Revolving Term Loan [Member] | First Supplement Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 10,000,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | Term Loan [Member] | ABE South Dakota [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, date of first required payment | Apr. 1, 2016 | |||
Principal amount of term loan payable | $ 1,000,000 | |||
Debt instrument, term | 5 years | |||
Debt instrument, maturity date | Jan. 1, 2021 | |||
Balance amount | $ 15,000,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | Term Loan [Member] | ABE South Dakota [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, applicable interest rate | 0.99% | |||
Interest rate description | Term Loan has a variable interest rate (“Variable Rate”) equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. | |||
AgCountry Farm Senior Credit Agreement [Member] | Term Loan [Member] | ABE South Dakota [Member] | One-Month LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin on variable rate | 3.50% | |||
Interest rate description | The $10.0 million Revolving Term Facility also has a Variable Rate equal to the one-month LIBOR rate plus an initial Margin of 350 basis points. | |||
AgCountry Farm Senior Credit Agreement [Member] | Term Loan [Member] | Second Supplemental Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 20,000,000 | |||
Ag Country Farm First Amendment Senior Credit Agreement [Member] | ABE South Dakota [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold annual capital expenditure | $ 3,000,000 | |||
Debt covenant description | ABE South Dakota entered into a Limited Waiver and First Amendment to Master Credit Agreement (“First Amendment”) to (i) eliminate the Owner’s Equity Ratio Covenant, (ii) temporarily increase the Capital Expenditures Covenant to $3.0 million for fiscal 2016 to finance the corn oil extraction system at the Huron plant, and (iii) waive other obligations related to the post closing agreement. |
Major Customers - Additional In
Major Customers - Additional Information (Detail) - ABE South Dakota [Member] | 9 Months Ended |
Jun. 30, 2017 | |
Ethanol Marketing Agreements [Member] | |
Revenue, Major Customer [Line Items] | |
Agreement expiration date | Jun. 30, 2019 |
Co-product Marketing Agreement [Member] | |
Revenue, Major Customer [Line Items] | |
Agreement expiration date | Jul. 31, 2018 |
Major Customers - Sales and Rec
Major Customers - Sales and Receivables (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
NGL Energy Ethanol [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 87,325 | $ 88,579 | |
Receivable balance at period end | 2,659 | 4,676 | $ 3,642 |
Gavilon Corn Oil & Distillers Grains [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 9,958 | 11,518 | |
Receivable balance at period end | 253 | 478 | 323 |
Dakotaland Feeds Distillers Grains [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 7,897 | 9,040 | |
Receivable balance at period end | $ 364 | $ 386 | $ 470 |
Risk Management - Fixed Price F
Risk Management - Fixed Price Forward Contracts (Detail) - Forward Contracts [Member] | 9 Months Ended |
Jun. 30, 2017USD ($)Tlbgalbu | |
Ethanol (Gallons) Sales Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Quantity | gal | 1,180,800 |
Forward contracts, Amount | $ 1,618,000 |
Forward contracts, Period Covered Through | Jul. 31, 2017 |
Distillers Grains (Tons) Sales Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Amount | $ 437,000 |
Forward contracts, Period Covered Through | Jul. 31, 2017 |
Forward contracts, Quantity | T | 11,801 |
Corn Oil (Pounds) Sales Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Amount | $ 65,000 |
Forward contracts, Period Covered Through | Jul. 31, 2017 |
Forward contracts, Quantity | lb | 250,000 |
Corn (Bushels) Purchase Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Quantity | bu | 250,000 |
Forward contracts, Amount | $ 864,000 |
Forward contracts, Period Covered Through | Jul. 31, 2017 |
Parent Financial Statements - A
Parent Financial Statements - Additional Information (Detail) - ABE South Dakota [Member] - USD ($) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Distributions from subsidiaries | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | ||||
Threshold owner's equity ratio | 60.00% | |||
Threshold working capital | $ 15,000,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | Maximum [Member] | ||||
Threshold pre-tax net income distribution | 40.00% | |||
Permitted distribution when covenants are met | 100.00% |
Parent Financial Statements - B
Parent Financial Statements - Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 17,483 | $ 15,416 | $ 14,370 | $ 16,566 |
Restricted cash | 1,000 | 1,000 | ||
Prepaids | 907 | 712 | ||
Total current assets | 28,129 | 26,734 | ||
Property and equipment, net | 31,860 | 32,231 | ||
Other assets: | ||||
Other assets | 899 | 1,068 | ||
Total assets | 60,888 | 60,033 | ||
Liabilities: | ||||
Accounts payable | 4,071 | 3,634 | ||
Accrued expenses | 2,036 | 2,243 | ||
Other liabilities | 33 | 40 | ||
Total liabilities | 31,695 | 33,510 | ||
Members' equity: | ||||
Members' capital, no par value, 25,410,851 units issued and outstanding | 44,826 | 48,638 | ||
Accumulated deficit | (15,633) | (22,115) | ||
Total members' equity | 29,193 | 26,523 | ||
Total liabilities and members' equity | 60,888 | 60,033 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 825 | 5,176 | $ 4,726 | $ 8,158 |
Restricted cash | 1,000 | 1,000 | ||
Prepaids | 25 | |||
Total current assets | 1,850 | 6,176 | ||
Property and equipment, net | 69 | 118 | ||
Other assets: | ||||
Other assets | 32 | 32 | ||
Total assets | 29,365 | 26,746 | ||
Liabilities: | ||||
Accounts payable | 1 | 5 | ||
Accrued expenses | 138 | 179 | ||
Other liabilities | 33 | 39 | ||
Total liabilities | 172 | 223 | ||
Members' equity: | ||||
Members' capital, no par value, 25,410,851 units issued and outstanding | 44,826 | 48,638 | ||
Accumulated deficit | (15,633) | (22,115) | ||
Total members' equity | 29,193 | 26,523 | ||
Total liabilities and members' equity | 29,365 | 26,746 | ||
ABE South Dakota [Member] | Parent Company [Member] | ||||
Other assets: | ||||
Investment in ABE | $ 27,414 | $ 20,420 |
Parent Financial Statements -34
Parent Financial Statements - Balance Sheets (Parenthetical) (Detail) - $ / shares | Jun. 30, 2017 | Sep. 30, 2016 |
Members' capital, par value | ||
Members' capital, units issued | 25,410,851 | 25,410,851 |
Members' capital, units outstanding | 25,410,851 | 25,410,851 |
Parent Company [Member] | ||
Members' capital, par value | ||
Members' capital, units issued | 25,410,851 | 25,410,851 |
Members' capital, units outstanding | 25,410,851 | 25,410,851 |
Parent Financial Statements - S
Parent Financial Statements - Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Selling, general and administrative expenses | $ (997) | $ (750) | $ (2,907) | $ (2,419) |
Operating income (loss) | 521 | (289) | 6,951 | (4,863) |
Other expense | 51 | 1 | 186 | 300 |
Interest income | 2 | 5 | 10 | 46 |
Net income (loss) | 357 | (577) | 6,482 | (5,188) |
Parent Company [Member] | ||||
Equity in earnings (losses) of consolidated subsidiary | 522 | (420) | 6,994 | (4,773) |
Selling, general and administrative expenses | (167) | (162) | (521) | (455) |
Operating income (loss) | 355 | (582) | 6,473 | (5,228) |
Other expense | (6) | |||
Interest income | 2 | 5 | 9 | 46 |
Net income (loss) | $ 357 | $ (577) | $ 6,482 | $ (5,188) |
Parent Financial Statements -36
Parent Financial Statements - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 357 | $ (577) | $ 6,482 | $ (5,188) |
Adjustments to reconcile net income (loss) to operating activities cash flows: | ||||
Depreciation | 2,851 | 8,504 | ||
Loss on disposal of fixed asset | (28) | (15) | ||
Amortization of deferred revenue and rent | (7) | (21) | ||
Change in working capital components: | ||||
Other receivable | (282) | (139) | ||
Prepaid expenses | (195) | (61) | ||
Accounts payable | 506 | (1,780) | ||
Accrued expenses | (207) | (297) | ||
Net cash provided by (used in) operating activities | 10,341 | (1,429) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of asset | 24 | |||
Change in restricted cash | 3,079 | |||
Net cash provided by (used in) investing activities | (2,352) | 2,302 | ||
Cash flows from financing activities: | ||||
Distribution to unit holders | (3,812) | |||
Net increase (decrease) in cash and cash equivalents | 2,067 | (2,196) | ||
Beginning cash and cash equivalents | 15,416 | 16,566 | ||
Ending cash and cash equivalents | 17,483 | 14,370 | 17,483 | 14,370 |
Parent Company [Member] | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 357 | (577) | 6,482 | (5,188) |
Adjustments to reconcile net income (loss) to operating activities cash flows: | ||||
Depreciation | 49 | 83 | ||
Equity in (earnings) losses of consolidated subsidiaries | (522) | 420 | (6,994) | 4,773 |
Loss on disposal of fixed asset | 7 | |||
Amortization of deferred revenue and rent | (6) | (21) | ||
Change in working capital components: | ||||
Other receivable | 6 | |||
Prepaid expenses | (25) | |||
Accounts payable | (4) | |||
Accrued expenses | (41) | (192) | ||
Net cash provided by (used in) operating activities | (539) | (532) | ||
Cash flows from investing activities: | ||||
Proceeds from sale of asset | 25 | |||
Change in restricted cash | (33) | |||
Net cash provided by (used in) investing activities | (8) | |||
Cash flows from financing activities: | ||||
Distribution to unit holders | (3,812) | (3,000) | ||
Distribution to subsidiary | 108 | |||
Net cash (used in) financing activities | (3,812) | (2,892) | ||
Net increase (decrease) in cash and cash equivalents | (4,351) | (3,432) | ||
Beginning cash and cash equivalents | 5,176 | 8,158 | ||
Ending cash and cash equivalents | $ 825 | $ 4,726 | $ 825 | $ 4,726 |