Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Jul. 31, 2014 | Sep. 05, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'HIGHWATER ETHANOL LLC | ' |
Entity Central Index Key | '0001371451 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Jul-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 4,953 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Current Assets | ' | ' |
Cash and cash equivalents | $13,422,238 | $7,869,188 |
Derivative instruments | 17,170 | 558,309 |
Accounts receivable | 5,349,011 | 3,271,738 |
Inventories | 4,946,683 | 3,595,878 |
Prepaids and other | 56,616 | 143,307 |
Total current assets | 23,791,718 | 15,438,420 |
Property and Equipment | ' | ' |
Land and land improvements | 6,859,913 | 6,853,912 |
Buildings | 38,489,826 | 38,450,065 |
Office equipment | 577,458 | 367,508 |
Plant and process equipment | 63,485,410 | 60,890,831 |
Vehicles | 41,994 | 41,994 |
Construction in Progress | 305,242 | 5,672 |
Gross property and equipment | 109,759,843 | 106,609,982 |
Less accumulated depreciation | -31,176,073 | -26,297,641 |
Net property and equipment | 78,583,770 | 80,312,341 |
Other Assets | ' | ' |
Investments | 2,227,774 | 1,730,626 |
Restricted marketable securities | 1,523,215 | 1,556,139 |
Debt issuance costs, net | 487,072 | 570,590 |
Deposits | 191,457 | 191,457 |
Total other assets | 4,429,518 | 4,048,812 |
Total Assets | 106,805,006 | 99,799,573 |
Current Liabilities | ' | ' |
Accounts payable | 2,971,716 | 1,714,221 |
Accrued expenses | 1,028,103 | 553,942 |
Customer deposits | 29,696 | 22,317 |
Derivative instruments | 0 | 427,091 |
Current maturities of long-term debt | 3,980,475 | 4,527,410 |
Total Current Liabilities | 8,009,990 | 7,244,981 |
Long-Term Debt | 29,448,383 | 41,231,727 |
Commitments and Contingencies | ' | ' |
Members' Equity | ' | ' |
Members' equity, 4,953 units outstanding | 69,346,633 | 51,322,865 |
Total Liabilities and Members’ Equity | $106,805,006 | $99,799,573 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets Parenthetical | Jul. 31, 2014 | Oct. 31, 2013 |
Members' equity, units outstanding | 4,953 | 4,953 |
Condensed_Statements_of_Operat
Condensed Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | |
Revenues | $37,172,560 | $44,801,707 | $107,802,687 | $130,642,134 |
Cost of Goods Sold | 31,927,445 | 42,189,942 | 86,312,425 | 126,573,119 |
Gross Profit | 5,245,115 | 2,611,765 | 21,490,262 | 4,069,015 |
Operating Expenses | 468,920 | 400,257 | 1,668,270 | 1,365,715 |
Operating Profit | 4,776,195 | 2,211,508 | 19,821,992 | 2,703,300 |
Other Income (Expense) | ' | ' | ' | ' |
Interest income | 6,968 | 33,674 | 16,715 | 67,364 |
Other income | 8,758 | 1,523 | 258,148 | 3,961 |
Interest expense | -576,588 | -989,466 | -2,561,392 | -3,085,830 |
Gain on interest rate swap | 0 | 196,808 | 427,091 | 585,682 |
Income from equity in investment | 73,983 | 111,551 | 65,654 | 315,015 |
Total other expense, net | -486,879 | -645,910 | -1,793,784 | -2,113,808 |
Net Income | $4,289,316 | $1,565,598 | $18,028,208 | $589,492 |
Weighted Average Units Oustanding | 4,953 | 4,953 | 4,953 | 4,953 |
Net Income Per Unit | $866 | $316.09 | $3,639.86 | $119.02 |
Distributions Per Unit | $0 | $0 | $0 | $0 |
Condensed_Statements_of_Compre
Condensed Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | |
Net Income | $4,289,316 | $1,565,598 | $18,028,208 | $589,492 |
Other Comprehensive Income | ' | ' | ' | ' |
Unrealized loss on restricted marketable securities | -764 | -6,615 | -4,440 | -31,778 |
Comprehensive Income | $4,288,552 | $1,558,983 | $18,023,768 | $557,714 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 9 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Cash Flows from Operating Activities | ' | ' |
Net Income | $18,028,208 | $589,492 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 4,961,950 | 4,933,972 |
Income from equity method investments | -65,654 | -315,015 |
Non-cash patronage income | -197,494 | 0 |
Change in assets and liabilities | ' | ' |
Restricted marketable securities | 28,484 | -56,655 |
Accounts receivable | -2,077,273 | 840,355 |
Inventories | -1,350,805 | -588,726 |
Derivative instruments | 114,048 | -413,602 |
Prepaids and other | 86,691 | -41,504 |
Customer deposits | 7,379 | 0 |
Accounts payable | 1,257,495 | -32,191 |
Accrued expenses | 474,161 | 55,574 |
Net cash provided by operating activities | 21,267,190 | 4,971,700 |
Cash Flows from Investing Activities | ' | ' |
Capital expenditures | -797,724 | -193,443 |
Investment in equity method investment | -234,000 | -217,902 |
Net cash used in investing activities | -1,031,724 | -411,345 |
Cash Flows from Financing Activities | ' | ' |
Payments on long-term debt | -34,459,766 | -3,023,341 |
Advances on long-term debt | 20,000,000 | 0 |
Payment of debt issuance costs | -222,650 | 0 |
Net cash used in financing activities | -14,682,416 | -3,023,341 |
Net Increase in Cash and Cash Equivalents | 5,553,050 | 1,537,014 |
Cash and cash equivalents – Beginning of Period | 7,869,188 | 1,431,996 |
Cash and cash equivalents – End of Period | 13,422,238 | 2,969,010 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest expense | 2,282,251 | 3,099,042 |
Supplemental Disclosure of Noncash Financing and Investing Activities | ' | ' |
Unrealized loss on restricted marketable securities | -4,440 | -31,778 |
Capital lease financing | $2,352,137 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Jul. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The accompanying unaudited condensed interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. The accompanying balance sheet and related notes as of October 31, 2013 are derived from the audited financial statements as of that date. These condensed financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company’s audited financial statements for the year ended October 31, 2013, contained in the Company’s Form 10-K. | |
In the opinion of management, the interim condensed financial statements reflect all adjustments, consisting of only normal recurring adjustments, considered necessary for fair presentation of the Company's financial position as of July 31, 2014 and the results of operations and cash flows for all periods presented. | |
Nature of Business | |
Highwater Ethanol, LLC, (a Minnesota Limited Liability Company) operates a 50 million gallon per year ethanol plant in Lamberton, Minnesota. The Company produces and sells fuel ethanol and distillers grains, a co-product of the fuel ethanol production process, in the continental United States, Mexico and Canada. | |
Accounting Estimates | |
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. 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. The Company uses estimates and assumptions in accounting for significant matters, among others, the carrying value of property and equipment and related impairment testing, inventory valuation, and derivative instruments. Actual results could differ from those estimates and such differences may be material to the financial statements. The Company periodically reviews estimates and assumptions and the effects of revisions are reflected in the period in which the revision is made. | |
Revenue Recognition | |
The Company generally sells ethanol and related products pursuant to marketing agreements. The Company’s products are shipped FOB shipping point. Revenues are recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. For ethanol sales, title transfers when loaded into the rail car and for distiller’s grains when the loaded rail cars leave the plant facility. | |
In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, marketing fees and freight due to the marketers are deducted from the gross sales price at the time incurred. Revenue is recorded net of these marketing fees and freight as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. | |
Derivative Instruments/Deposits with Broker | |
Derivatives are recognized in the balance sheet and the measurement of these instruments is at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recognized currently in earnings. | |
Contracts are evaluated to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales”. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting as derivatives, therefore, are not marked to market in our financial statements. | |
The Company entered into corn commodity-based and natural gas derivatives in order to protect cash flows from fluctuations caused by volatility in prices. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. Corn and natural gas derivative changes in fair market value are included in costs of goods sold. | |
Fair Value of Financial Instruments | |
The carrying value of cash and cash equivalents, accounts receivable, and accounts payable, and other working capital items approximate fair value at July 31, 2014 due to the short maturity nature of these instruments. | |
The carrying value of restricted marketable securities approximate their fair value based on quoted market prices at quarter end. The Company believes the carrying value of the derivative instruments approximates fair value based on quoted market prices or widely accepted valuation techniques including discounted cash flow analysis which includes observable market-based inputs. | |
The Company believes the carrying amount of the long-term debt approximates the fair value due to a significant portion of total indebtedness containing variable interest rates and this rate is a market interest rate for these borrowings. | |
Equity Method Investments | |
The Company has an investment interest in an unlisted company, Renewable Fuels Marketing Group, LLC (RPMG), who markets the Company’s ethanol. This investment is a flow-through entity and is being accounted for by the equity method of accounting under which the Company’s share of net income is recognized as income in the Company’s income statement and added to the investment account. Distributions or dividends received from the investment are treated as a reduction of the investment account. The Company has a 7% interest in RPMG. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the quarter ended July 31, 2014 is based on the investee’s results of operations for the three month period ended June 30, 2014. | |
The Company is one of eight member owner investors in Lawrenceville Tank, LLC. The Company will have a 7% ownership, and Lawrenceville Tank, LLC will own and operate a trans load/tank facility in Atlanta, Georgia area. This will provide another area of opportunity for the Company’s ethanol production to be marketed by RPMG. The Company has invested $231,000 of its $385,000 total commitment as of July 31, 2014. | |
Railcar Damages Accrual | |
In accordance with the railcar lease agreements, the Company is required to pay for damages considered to be in excess of normal wear and tear at the termination of the lease. The Company accrues the estimated cost for railcar damages over the term of the lease. |
Uncertainties
Uncertainties | 9 Months Ended |
Jul. 31, 2014 | |
Uncertainties [Abstract] | ' |
Uncertainties | ' |
UNCERTAINTIES | |
The Company derives substantially all of its revenues from the sale of ethanol and distillers grains. These products are commodities and the market prices for these products display substantial volatility and are subject to a number of factors which are beyond the control of the Company. The Company’s most significant manufacturing inputs are corn and natural gas. The price of these commodities is also subject to substantial volatility and uncontrollable market factors. In addition, these input costs do not necessarily fluctuate with the market prices for ethanol and distillers grains. As a result, the Company is subject to significant risk that its operating margins can be reduced or eliminated due to the relative movements in the market prices of its products and major manufacturing inputs. As a result, market fluctuations in the price of or demand for these commodities can have a significant adverse effect on the Company’s operations, profitability, and availability of cash flows to make loan payments and maintain compliance with the loan agreement. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
The following table provides information on those assets (liabilities) measured at fair value on a recurring basis. | |||||||||||||||||
Fair Value as of | Fair Value Measurement Using | ||||||||||||||||
July 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Restricted marketable securities | $ | 1,523,215 | $ | 1,523,215 | $ | — | $ | — | |||||||||
Derivative instrument assets - commodities | $ | 2,125 | $ | 2,125 | $ | — | $ | — | |||||||||
Derivative instrument liabilities - commodities | $ | (73,969 | ) | $ | (73,969 | ) | $ | — | $ | — | |||||||
Fair Value as of | Fair Value Measurement Using | ||||||||||||||||
31-Oct-13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Restricted marketable securities | $ | 1,556,139 | $ | 1,556,139 | $ | — | $ | — | |||||||||
Derivative instrument - interest rate swap | $ | (427,091 | ) | $ | — | $ | (427,091 | ) | $ | — | |||||||
Derivative instrument liabilities - commodities | $ | (467,015 | ) | $ | (467,015 | ) | $ | — | $ | — | |||||||
The fair value of restricted marketable securities is based on quoted market prices in an active market. The Company determined the fair value of the interest rate swap by using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each instrument and observable market-based inputs. The analysis reflects the contractual terms of the swap agreement, including the period to maturity and uses observable market-based inputs and uses the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The Company determines the fair values of commodities by obtaining the fair value measurements from an independent pricing service based on dealer quotes and live trading levels from the Chicago Board of Trade. |
Restricted_Marketable_Securiti
Restricted Marketable Securities | 9 Months Ended | |||||||||
Jul. 31, 2014 | ||||||||||
Restricted Marketable Securities [Abstract] | ' | |||||||||
Restricted Marketable Securities | ' | |||||||||
RESTRICTED MARKETABLE SECURITIES | ||||||||||
The cost and fair value of the Company's restricted marketable securities consist of the following at July 31, 2014: | ||||||||||
Amortized Cost | Gross | Fair Value | ||||||||
Unrealized | ||||||||||
Losses | ||||||||||
Restricted marketable securities - Long-term | $ | 1,537,330 | $ | (14,115 | ) | $ | 1,523,215 | |||
municipal obligations | ||||||||||
The cost and fair value of the Company's restricted marketable securities consist of the following at October 31, 2013: | ||||||||||
Amortized Cost | Gross | Fair Value | ||||||||
Unrealized | ||||||||||
Losses | ||||||||||
Restricted marketable securities - Long-term | $ | 1,565,814 | $ | (9,675 | ) | $ | 1,556,139 | |||
municipal obligations | ||||||||||
The long-term restricted marketable securities relate to the debt service reserve fund required by the capital lease agreement. The Company had unrealized losses of $14,115 and $9,675 included in accumulated other comprehensive income at July 31, 2014 and October 31, 2013, respectively. | ||||||||||
Shown below are the contractual maturities of marketable securities with fixed maturities at July 31, 2014. Actual maturities may differ from contractual maturities because certain securities may contain early call or prepayment rights. These are classified as long-term since they are held in the debt service reserve fund for long-term debt and are reinvested when due. | ||||||||||
Due within 1 year | $ | 1,523,215 | ||||||||
Total | $ | 1,523,215 | ||||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
INVENTORIES | |||||||||
Inventories consisted of the following at: | |||||||||
July 31, 2014 | 31-Oct-13 | ||||||||
Raw materials | $ | 1,294,878 | $ | 986,199 | |||||
Spare parts and supplies | 1,647,365 | 1,241,515 | |||||||
Work in process | 990,610 | 883,278 | |||||||
Finished goods | 1,013,830 | 484,886 | |||||||
Total | $ | 4,946,683 | $ | 3,595,878 | |||||
Derivative_Instruments
Derivative Instruments | 9 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Derivative Instruments [Abstract] | ' | ||||||||||||
Derivative Instruments | ' | ||||||||||||
DERIVATIVE INSTRUMENTS | |||||||||||||
As of July 31, 2014, the Company had entered into corn and ethanol derivative instruments, which are required to be recorded as either assets or liabilities at fair value in the statement of financial position. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. The Company must designate the hedging instruments based upon the exposure being hedged as a fair value hedge, a cash flow hedge or a hedge against foreign currency exposure. The derivative instruments outstanding at July 31, 2014 are not designated as effective hedges for accounting purposes. | |||||||||||||
Interest Rate Swap | |||||||||||||
The Company had an interest rate swap with a notional amount of approximately $15,992,000 that fixed the interest rate for a corresponding amount of long-term debt at 7.6%. On February 26, 2014, the Company terminated the interest rate swap. | |||||||||||||
Commodity Contracts | |||||||||||||
As of July 31, 2014, the Company has open positions for 50,000 bushels of corn. Management expects all open positions outstanding as of July 31, 2014 to be realized within the next twelve months. | |||||||||||||
The following tables provide details regarding the Company's derivative instruments at July 31, 2014 and October 31, 2013: | |||||||||||||
Instrument | Balance Sheet location | 31-Jul-14 | 31-Oct-13 | ||||||||||
Interest rate swap | Current liabilities | $ | — | $ | (427,091 | ) | |||||||
Corn, natural gas and ethanol contracts | |||||||||||||
In gain position | $ | 2,125 | $ | — | |||||||||
In loss position | (73,969 | ) | (467,015 | ) | |||||||||
Deposits with broker | 89,014 | 1,025,324 | |||||||||||
Current assets | $ | 17,170 | $ | 558,309 | |||||||||
Corn and natural gas contracts totaling $467,015 as of October 31, 2013 were netted with deposits with broker, to be consistent with the 2014 presentation. | |||||||||||||
The following table provide details regarding the gains (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments: | |||||||||||||
Statement of | Three Months Ended July 31, | ||||||||||||
Operations location | 2014 | 2013 | |||||||||||
Interest rate swap | Other income (expense) | $ | — | $ | 196,808 | ||||||||
Ethanol contracts | Revenues | 46,357 | — | ||||||||||
Corn contracts | Cost of goods sold | (1,911,954 | ) | 194,003 | |||||||||
Natural gas contracts | Cost of goods sold | (52,340 | ) | 21,418 | |||||||||
Statement of | Nine Months Ended July 31, | ||||||||||||
Operations location | 2014 | 2013 | |||||||||||
Interest rate swap | Other income (expense) | $ | 427,091 | $ | 585,682 | ||||||||
Ethanol contracts | Revenues | (477,785 | ) | — | |||||||||
Corn contracts | Cost of goods sold | (611,140 | ) | 24,909 | |||||||||
Natural gas contracts | Cost of goods sold | (144,546 | ) | 51,096 | |||||||||
The following table provides corrected gains (losses) from corn and natural gas contracts, which were originally reported as the reciprocal of these amounts: | |||||||||||||
Three Months Ended | |||||||||||||
April 30, | January 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Corn Contracts | $ | 910,331 | $ | (209,042 | ) | $ | 390,483 | $ | 39,948 | ||||
Natural Gas Contracts | 16,848 | 22,242 | (109,054 | ) | 7,436 | ||||||||
Debt_Financing
Debt Financing | 9 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Debt Financing [Abstract] | ' | |||||||
Debt Financing | ' | |||||||
DEBT FINANCING | ||||||||
Long-term debt consists of the following at: | ||||||||
31-Jul-14 | 31-Oct-13 | |||||||
Variable Rate Term Loan (AgStar) | $ | 15,958,325 | $ | — | ||||
Capital leases, see terms below | 17,470,533 | 15,180,000 | ||||||
Fixed rate note payable (FNBO) | — | 18,098,700 | ||||||
Variable rate note payable (FNBO) | — | 12,480,437 | ||||||
Total | 33,428,858 | 45,759,137 | ||||||
Less amounts due within one year | 3,980,475 | 4,527,410 | ||||||
Net long-term debt | $ | 29,448,383 | $ | 41,231,727 | ||||
Bank Financing | ||||||||
On February 27, 2014, the Company entered into a Credit Agreement with Ag Star Financial Services, PCA ("AgStar") for the purpose of refinancing the debt facility previously held by First National Bank of Omaha ("FNBO"). AgStar's Credit Agreement provides for a $20,000,000 Term Loan, a $5,000,000 Term Revolving Loan, and a $5,000,000 Revolving Line of Credit. The availability under the Term Revolving Loan supports and will be reduced by the issuance of letters of credit. The Company paid a $50,000 underwriting fee and a $75,000 commitment fee in addition to other standard closing costs in connection with the refinancing. | ||||||||
On February 26, 2014, in connection with and in preparation for the refinancing of the debt facility, the Company paid $7,639,971 towards the balance of FNBO's Variable Rate Note, leaving a combined balance due of $20,000,000 on FNBO's Fixed Rate Note and Variable Rate Note. The Company also terminated the interest rate swap. In connection with terminating the interest rate swap, the Company paid $234,550. | ||||||||
Variable Rate Term Loan | ||||||||
The Variable Rate Term Loan is for $20,000,000 with a variable interest rate that is the greater of the 30-day LIBOR rate plus 350 basis points or 4.25%. The interest rate is subject to a reduction to the greater of the 30-day LIBOR rate plus 300 basis points or 3.75% in the event the total outstanding principal balance of all debt is less than $27,500,000. Monthly principal payments are due on the Variable Rate Term Loan of approximately $208,334 plus accrued interest. A final balloon payment of approximately $7,500,000 will be due on February 27, 2019. The Company currently expects to convert the Term Loan to a Fixed Rate Loan, subject to certain conditions as described in the Credit Agreement. | ||||||||
Term Revolving Loan | ||||||||
The Term Revolving Loan is for up to $5,000,000 with a variable interest rate that is the greater of the 30-day LIBOR rate plus 350 basis points or 4.25%. The interest rate is subject to a reduction to the greater of the 30-day LIBOR rate plus 300 basis points or 3.75% in the event the total outstanding principal balance of all debt is less than $27,500,000. The Term Revolving Loan may be advanced, repaid and re-borrowed during the term. Monthly interest payments are due on the Term Revolving Loan. Payment of all amounts outstanding is due on February 27, 2019. As of July 31, 2014, the Company has $2,500,000 in letters of credit outstanding which reduce the amount available under the Term Revolving Loan. The Company pays interest at a rate of 1.5% on amounts outstanding for the letters of credit. | ||||||||
Revolving Line of Credit | ||||||||
The Company has a Revolving Line of Credit available equal to the amount of the Borrowing Base, with a maximum limit of $5,000,000. The Borrowing Base will vary and may at times be less than $5,000,000. The Revolving Line of Credit expires on March 1, 2015 and accrues interest at the 30-day LIBOR rate plus 350 basis points with no minimum interest rate. Monthly interest payments are due on the Revolving Line of Credit. | ||||||||
As of July 31, 2014, there are no amounts outstanding on the Term Revolving Loan or Revolving Line of Credit. | ||||||||
Covenants and other Miscellaneous Terms | ||||||||
The loan facility with AgStar is secured by substantially all business assets. The Company executed a mortgage creating a first lien on its real estate and plant and a security interest in all personal property located on the premises and assigned all rents and leases to property, marketing contracts, risk management services contract, and natural gas, electricity, water service and grain procurement agreements. | ||||||||
The Company is also subject to various financial and non-financial covenants that limit distributions and debt and require minimum debt service coverage, tangible net worth, and working capital requirements. The fixed charge coverage ratio is no less than 1.15:1.00 and is measured annually by comparing adjusted EBITDA to scheduled payments of principal and interest plus capital expenditures and distributions. The minimum net worth is no less than $42,000,000, which is calculated as the excess of total assets excluding various disallowed assets per the Credit Agreement over total liabilities, and is measured quarterly. The minimum working capital is $8,250,000, which is calculated as current assets plus the amount available for drawing under our Term Revolving Loan, and undrawn amounts on outstanding letters of credit less current liabilities, and is measured quarterly. | ||||||||
The Company is required to remit annual excess cash flow payments not to exceed $2,500,000 for any fiscal year or $10,000,000 over the term of the Credit Agreement which payments will be first applied to the outstanding principal of the Variable Rate Term Loan. The Company is also required to pay unused commitment fees for the Term Revolving Loan and the Revolving Line of Credit as defined in the Credit Agreement. | ||||||||
Additionally, the Company is limited to annual capital expenditures of $1,000,000 without prior approval, incurring additional debt over certain amounts without prior approval, and making additional investments as described in the Credit Agreement, and is also prohibited from making distributions to members in excess of 40% of net income in a given year for tax purposes without prior approval. | ||||||||
Capital Leases | ||||||||
City of Lamberton, Minnesota | ||||||||
The capital lease agreement with U.S. Bank National Association and the City of Lamberton is subject to various financial and non-financial covenants that limit distributions and leverage and require minimum tangible net worth, fixed charge coverage ratio, working-capital requirements, and a maximum leverage ratio. The Company is currently meeting all of these covenants. However, if the Company fails to comply with the covenants and does not obtain a waiver, the Trustee and the City could elect to exercise their available remedies, which include forcing immediate payment of outstanding balances. | ||||||||
Butamax | ||||||||
The Company entered into a series of related definitive agreements, dated September 26, 2013, with Butamax which include an Easement for Construction and Process Demonstration Agreement, an Equipment Lease Agreement, a Technology License Agreement, a Technology Demonstration Risk Reduction Agreement and a Security Agreement (collectively, the "Agreements") pursuant to which Butamax has agreed to construct, install and lease its corn oil separation system and license to the Company its proprietary, patent-protected corn oil separation technology. Pursuant to the Agreements, the Company agreed to give Butamax access to the plant in order to construct, install, operate, test and commercially validate a corn oil separation system. Butamax retains ownership of the corn oil separation system and technology but agrees to lease it to the Company for a term of 120 months subject to Butamax's right to remove the system if the Company is in breach of the Agreements. The term of the lease may also be extended or terminated pursuant to the terms of the Agreements. The Company is responsible for repairs and maintenance of the system and bear the risk of loss. In return, the Company agrees to payment of certain license fees which are subject to being reduced under the terms of the Agreements if the corn oil separation system does not meet certain performance goals. The Agreements provide that the corn oil separation system shall be conveyed to the Company at the end of the term so long as the Company is not in breach of the Agreements. The Company granted a security interest to Butamax in the corn oil separation system to secure its obligations under the Agreements. Pursuant to the Agreements, the Company agreed, subject to certain obligations of confidentiality, to provide Butamax with Company information on a monthly basis including business and financial information and have granted Butamax the option to have a representative present in board and committee meetings as an observer. The Company also agreed to give Butamax notice in the event of an issuance or sale of membership interests or convertible debt instruments. The Company recorded this as a capital lease in April 2014, and the balance as of July 31, 2014 was $2,290,533. | ||||||||
The estimated maturities of the long-term debt at July 31, 2014 are as follows: | ||||||||
2015 | $ | 3,980,475 | ||||||
2016 | 4,766,255 | |||||||
2017 | 4,855,528 | |||||||
2018 | 4,243,354 | |||||||
2019 | 8,059,913 | |||||||
2020 and thereafter | 7,523,333 | |||||||
Long-term debt | $ | 33,428,858 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Regulatory Agencies | |
The Company is subject to oversight from regulatory agencies regarding environmental concerns which arise in the ordinary course of its business. | |
Forward Contracts | |
At July 31, 2014, the Company has approximately 2,230,000 gallons of forward fixed price ethanol sales contracts and approximately 20,430 tons of forward dried distiller grains sales contracts at various fixed prices for various delivery periods through August 2014 and September 2014, respectively. At July 31, 2014, the Company also has 1,500,750 pounds of forward fixed price corn oil sales contracts and 378,000 MMBTU of natural gas contracts for various delivery periods through December 2014 and March 2015, respectively. In addition, at July 31, 2014, the Company has forward corn purchase contracts for approximately 400,000 bushels for various delivery periods through August 2014. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Jul. 31, 2014 | |
Subsequent Event [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
On August 29, 2014, the Company paid it’s scheduled principal payment as well as an additional $4,000,000 to AgStar. This reduced the amount of total long-term debt to $29,158,714 as of August 29, 2014. |
Accounting_Policies
Accounting Policies | 9 Months Ended |
Jul. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Accounting Estimates | ' |
Accounting Estimates | |
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. 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. The Company uses estimates and assumptions in accounting for significant matters, among others, the carrying value of property and equipment and related impairment testing, inventory valuation, and derivative instruments. Actual results could differ from those estimates and such differences may be material to the financial statements. The Company periodically reviews estimates and assumptions and the effects of revisions are reflected in the period in which the revision is made. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company generally sells ethanol and related products pursuant to marketing agreements. The Company’s products are shipped FOB shipping point. Revenues are recognized when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. For ethanol sales, title transfers when loaded into the rail car and for distiller’s grains when the loaded rail cars leave the plant facility. | |
In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, marketing fees and freight due to the marketers are deducted from the gross sales price at the time incurred. Revenue is recorded net of these marketing fees and freight as they do not provide an identifiable benefit that is sufficiently separable from the sale of ethanol and related products. | |
Derivative Instruments | ' |
Derivative Instruments/Deposits with Broker | |
Derivatives are recognized in the balance sheet and the measurement of these instruments is at fair value. In order for a derivative to qualify as a hedge, specific criteria must be met and appropriate documentation maintained. Gains and losses from derivatives that do not qualify as hedges, or are undesignated, must be recognized immediately in earnings. If the derivative does qualify as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will be either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. Changes in the fair value of undesignated derivatives are recognized currently in earnings. | |
Contracts are evaluated to determine whether the contracts are derivatives. Certain contracts that literally meet the definition of a derivative may be exempted as “normal purchases or normal sales”. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. Contracts that meet the requirements of normal purchases or sales are documented as normal and exempted from accounting as derivatives, therefore, are not marked to market in our financial statements. | |
The Company entered into corn commodity-based and natural gas derivatives in order to protect cash flows from fluctuations caused by volatility in prices. These derivatives are not designated as effective hedges for accounting purposes. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. Corn and natural gas derivative changes in fair market value are included in costs of goods sold. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying value of cash and cash equivalents, accounts receivable, and accounts payable, and other working capital items approximate fair value at July 31, 2014 due to the short maturity nature of these instruments. | |
The carrying value of restricted marketable securities approximate their fair value based on quoted market prices at quarter end. The Company believes the carrying value of the derivative instruments approximates fair value based on quoted market prices or widely accepted valuation techniques including discounted cash flow analysis which includes observable market-based inputs. | |
The Company believes the carrying amount of the long-term debt approximates the fair value due to a significant portion of total indebtedness containing variable interest rates and this rate is a market interest rate for these borrowings. | |
Investments | ' |
Equity Method Investments | |
The Company has an investment interest in an unlisted company, Renewable Fuels Marketing Group, LLC (RPMG), who markets the Company’s ethanol. This investment is a flow-through entity and is being accounted for by the equity method of accounting under which the Company’s share of net income is recognized as income in the Company’s income statement and added to the investment account. Distributions or dividends received from the investment are treated as a reduction of the investment account. The Company has a 7% interest in RPMG. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the quarter ended July 31, 2014 is based on the investee’s results of operations for the three month period ended June 30, 2014. | |
The Company is one of eight member owner investors in Lawrenceville Tank, LLC. The Company will have a 7% ownership, and Lawrenceville Tank, LLC will own and operate a trans load/tank facility in Atlanta, Georgia area. This will provide another area of opportunity for the Company’s ethanol production to be marketed by RPMG. The Company has invested $231,000 of its $385,000 total commitment as of July 31, 2014. | |
Railcar Damages Accrual | ' |
Railcar Damages Accrual | |
In accordance with the railcar lease agreements, the Company is required to pay for damages considered to be in excess of normal wear and tear at the termination of the lease. The Company accrues the estimated cost for railcar damages over the term of the lease. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
The following table provides information on those assets (liabilities) measured at fair value on a recurring basis. | |||||||||||||||||
Fair Value as of | Fair Value Measurement Using | ||||||||||||||||
July 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Restricted marketable securities | $ | 1,523,215 | $ | 1,523,215 | $ | — | $ | — | |||||||||
Derivative instrument assets - commodities | $ | 2,125 | $ | 2,125 | $ | — | $ | — | |||||||||
Derivative instrument liabilities - commodities | $ | (73,969 | ) | $ | (73,969 | ) | $ | — | $ | — | |||||||
Fair Value as of | Fair Value Measurement Using | ||||||||||||||||
31-Oct-13 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Restricted marketable securities | $ | 1,556,139 | $ | 1,556,139 | $ | — | $ | — | |||||||||
Derivative instrument - interest rate swap | $ | (427,091 | ) | $ | — | $ | (427,091 | ) | $ | — | |||||||
Derivative instrument liabilities - commodities | $ | (467,015 | ) | $ | (467,015 | ) | $ | — | $ | — | |||||||
Restricted_Marketable_Securiti1
Restricted Marketable Securities (Tables) | 9 Months Ended | |||||||||
Jul. 31, 2014 | ||||||||||
Restricted Marketable Securities [Abstract] | ' | |||||||||
Restricted Marketable Securities | ' | |||||||||
The cost and fair value of the Company's restricted marketable securities consist of the following at July 31, 2014: | ||||||||||
Amortized Cost | Gross | Fair Value | ||||||||
Unrealized | ||||||||||
Losses | ||||||||||
Restricted marketable securities - Long-term | $ | 1,537,330 | $ | (14,115 | ) | $ | 1,523,215 | |||
municipal obligations | ||||||||||
The cost and fair value of the Company's restricted marketable securities consist of the following at October 31, 2013: | ||||||||||
Amortized Cost | Gross | Fair Value | ||||||||
Unrealized | ||||||||||
Losses | ||||||||||
Restricted marketable securities - Long-term | $ | 1,565,814 | $ | (9,675 | ) | $ | 1,556,139 | |||
municipal obligations | ||||||||||
Contractual Maturities of Marketable Securities | ' | |||||||||
Due within 1 year | $ | 1,523,215 | ||||||||
Total | $ | 1,523,215 | ||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
July 31, 2014 | 31-Oct-13 | ||||||||
Raw materials | $ | 1,294,878 | $ | 986,199 | |||||
Spare parts and supplies | 1,647,365 | 1,241,515 | |||||||
Work in process | 990,610 | 883,278 | |||||||
Finished goods | 1,013,830 | 484,886 | |||||||
Total | $ | 4,946,683 | $ | 3,595,878 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Derivative Instruments [Abstract] | ' | ||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position | ' | ||||||||||||
Instrument | Balance Sheet location | 31-Jul-14 | 31-Oct-13 | ||||||||||
Interest rate swap | Current liabilities | $ | — | $ | (427,091 | ) | |||||||
Corn, natural gas and ethanol contracts | |||||||||||||
In gain position | $ | 2,125 | $ | — | |||||||||
In loss position | (73,969 | ) | (467,015 | ) | |||||||||
Deposits with broker | 89,014 | 1,025,324 | |||||||||||
Current assets | $ | 17,170 | $ | 558,309 | |||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position | ' | ||||||||||||
Statement of | Three Months Ended July 31, | ||||||||||||
Operations location | 2014 | 2013 | |||||||||||
Interest rate swap | Other income (expense) | $ | — | $ | 196,808 | ||||||||
Ethanol contracts | Revenues | 46,357 | — | ||||||||||
Corn contracts | Cost of goods sold | (1,911,954 | ) | 194,003 | |||||||||
Natural gas contracts | Cost of goods sold | (52,340 | ) | 21,418 | |||||||||
Statement of | Nine Months Ended July 31, | ||||||||||||
Operations location | 2014 | 2013 | |||||||||||
Interest rate swap | Other income (expense) | $ | 427,091 | $ | 585,682 | ||||||||
Ethanol contracts | Revenues | (477,785 | ) | — | |||||||||
Corn contracts | Cost of goods sold | (611,140 | ) | 24,909 | |||||||||
Natural gas contracts | Cost of goods sold | (144,546 | ) | 51,096 | |||||||||
The following table provides corrected gains (losses) from corn and natural gas contracts, which were originally reported as the reciprocal of these amounts: | |||||||||||||
Three Months Ended | |||||||||||||
April 30, | January 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Corn Contracts | $ | 910,331 | $ | (209,042 | ) | $ | 390,483 | $ | 39,948 | ||||
Natural Gas Contracts | 16,848 | 22,242 | (109,054 | ) | 7,436 | ||||||||
Debt_Financing_Tables
Debt Financing (Tables) | 9 Months Ended | |||||||
Jul. 31, 2014 | ||||||||
Debt Financing [Abstract] | ' | |||||||
Schedule of Long-term Debt | ' | |||||||
31-Jul-14 | 31-Oct-13 | |||||||
Variable Rate Term Loan (AgStar) | $ | 15,958,325 | $ | — | ||||
Capital leases, see terms below | 17,470,533 | 15,180,000 | ||||||
Fixed rate note payable (FNBO) | — | 18,098,700 | ||||||
Variable rate note payable (FNBO) | — | 12,480,437 | ||||||
Total | 33,428,858 | 45,759,137 | ||||||
Less amounts due within one year | 3,980,475 | 4,527,410 | ||||||
Net long-term debt | $ | 29,448,383 | $ | 41,231,727 | ||||
Schedule of Maturities of Long-term Debt | ' | |||||||
2015 | $ | 3,980,475 | ||||||
2016 | 4,766,255 | |||||||
2017 | 4,855,528 | |||||||
2018 | 4,243,354 | |||||||
2019 | 8,059,913 | |||||||
2020 and thereafter | 7,523,333 | |||||||
Long-term debt | $ | 33,428,858 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Details) (Ethanol [Member]) | 9 Months Ended |
Jul. 31, 2014 | |
gal | |
Ethanol [Member] | ' |
Product Information [Line Items] | ' |
Annual Production Capacity | 50,000,000 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Investment (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments | $2,227,774 | $1,730,626 |
Renewable Fuels Marketing Group (RPMG) [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 7.00% | ' |
Lawrenceville Tank, LLC [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 7.00% | ' |
Investments | 231,000 | ' |
Equity Method Investments, Total Amount Committed | $385,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities, Restricted | $1,523,215 | ' |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities, Restricted | 1,523,215 | 1,556,139 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities, Restricted | 1,523,215 | 1,556,139 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities, Restricted | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities, Restricted | 0 | 0 |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | 2,125 | ' |
Derivative Liability | -73,969 | -467,015 |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | 2,125 | ' |
Derivative Liability | -73,969 | -467,015 |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | 0 | ' |
Derivative Liability | 0 | 0 |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | 0 | ' |
Derivative Liability | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | ' | -427,091 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | ' | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | ' | -427,091 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Assets | ' | $0 |
Restricted_Marketable_Securiti2
Restricted Marketable Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Jul. 31, 2014 | Oct. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Restricted Marketable Securities, Noncurrent | $1,523,215 | $1,556,139 |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 14,115 | 9,675 |
Restricted Marketable Securities, Long-Term [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 1,537,330 | 1,565,814 |
Available-for-sale Securities, Gross Unrealized Gains | -14,115 | -9,675 |
Restricted Marketable Securities, Noncurrent | $1,523,215 | $1,556,139 |
Restricted_Marketable_Securiti3
Restricted Marketable Securities Schedule of Held To Maturity Securities (Details) (USD $) | Jul. 31, 2014 |
Restricted Marketable Securities [Abstract] | ' |
Available-for-sale Securities, Debt Maturities, Due within 1 year | $1,523,215 |
Marketable Securities, Restricted | $1,523,215 |
Inventories_Details
Inventories (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Inventories [Abstract] | ' | ' |
Raw Materials | $1,294,878 | $986,199 |
Spare parts and supplies | 1,647,365 | 1,241,515 |
Work in Process | 990,610 | 883,278 |
Finished Goods | 1,013,830 | 484,886 |
Inventories | $4,946,683 | $3,595,878 |
Derivative_Instruments_Balance
Derivative Instruments Balance Sheet (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Good Faith and Margin Deposits with Broker-Dealers | $89,014 | $1,025,324 |
Derivative instruments | 17,170 | 558,309 |
Interest Rate Swap [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest Rate Derivative Liabilities, at Fair Value | 0 | -427,091 |
Corn [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Nonmonetary Notional Amount | 50,000 | ' |
Commodity [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Current | 2,125 | 0 |
Derivative Liability, Current | ($73,969) | ($467,015) |
Derivative_Instruments_Income_
Derivative Instruments Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | |
Interest Rate Swap [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $15,992,000 | ' | ' | ' | ' | ' | $15,992,000 | ' |
Derivative, Fixed Interest Rate | 7.60% | ' | ' | ' | ' | ' | 7.60% | ' |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | ' | ' | 196,808 | ' | ' | 427,091 | 585,682 |
Not Designated as Hedging Instrument [Member] | Ethanol [Member] | Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 46,357 | ' | ' | 0 | ' | ' | -477,785 | 0 |
Not Designated as Hedging Instrument [Member] | Corn [Member] | Cost of Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -1,911,954 | 910,331 | 390,483 | 194,003 | -209,042 | 39,948 | -611,140 | 24,909 |
Not Designated as Hedging Instrument [Member] | Natural Gas [Member] | Cost of Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | ($52,340) | $16,848 | ($109,054) | $21,418 | $22,242 | $7,436 | ($144,546) | $51,096 |
Debt_Financing_Details
Debt Financing (Details) (USD $) | Jul. 31, 2014 | Feb. 26, 2014 | Oct. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Feb. 26, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2014 | Oct. 31, 2013 |
AgStar Financial Services, PCA [Member] | AgStar Financial Services, PCA [Member] | AgStar Financial Services, PCA [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | Notes Payable to Banks [Member] | ||||
Letter of Credit [Member] | Revolving Credit Facility [Member] | Variable Rate Note [Member] | AgStar Financial Services, PCA [Member] | AgStar Financial Services, PCA [Member] | AgStar Financial Services, PCA [Member] | AgStar Financial Services, PCA [Member] | First National Bank of Omaha (FNBO) [Member] | First National Bank of Omaha (FNBO) [Member] | First National Bank of Omaha (FNBO) [Member] | First National Bank of Omaha (FNBO) [Member] | |||||
Term Loan [Member] | Term Loan [Member] | Term Revolving Loan [Member] | Fixed Rate Note [Member] | Fixed Rate Note [Member] | Variable Rate Note [Member] | Variable Rate Note [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | $15,958,325 | $0 | ' | $0 | $18,098,700 | $0 | $12,480,437 |
Capital Lease Obligations | 17,470,533 | ' | 15,180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt and Capital Lease Obligations | 33,428,858 | ' | 45,759,137 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities of long-term debt | 3,980,475 | ' | 4,527,410 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-Term Debt | 29,448,383 | ' | 41,231,727 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | 27,500,000 | 20,000,000 | ' | 5,000,000 | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 2,500,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Underwriting Expense | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Fee Amount | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Principal Reduction Payment | ' | ' | ' | ' | ' | ' | 7,639,971 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate Cash Flow Hedge Liability at Fair Value | ' | 234,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate at Period End | ' | ' | ' | ' | ' | ' | ' | ' | 4.25% | ' | 4.25% | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment, Principal | ' | ' | ' | ' | ' | ' | ' | ' | 208,334 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' |
Minimum Net Worth Required for Compliance | ' | ' | ' | 42,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Capital Requirement | ' | ' | ' | 8,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Excess Cash Flow Payments, Annually | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maximum Excess Cash Flow Payments | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Annual Capital Expenditure Limit | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income available for distributions, percentage | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | 3.50% | ' | 3.00% | 3.50% | ' | 3.50% | ' | ' | ' | ' |
Fixed Charge Coverage Ratio, Percent | 115.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Lease Obligations, Current | $2,290,533 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Financing_Short_Term_Debt
Debt Financing Short Term Debt (Details) (AgStar Financial Services, PCA [Member], USD $) | 9 Months Ended |
Jul. 31, 2014 | |
Letter of Credit [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $2,500,000 |
Line of Credit Facility, Interest Rate at Period End | 1.50% |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 |
Line of Credit Facility, Amount Outstanding | $0 |
Debt Instrument, Basis Spread on Variable Rate | 3.50% |
Debt_Financing_Schedule_of_Mat
Debt Financing Schedule of Maturities of Long-Term Debt (Details) (USD $) | Jul. 31, 2014 | Oct. 31, 2013 |
Debt Financing [Abstract] | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $3,980,475 | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 4,766,255 | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 4,855,528 | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 4,243,354 | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 8,059,913 | ' |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 7,523,333 | ' |
Long-term Debt and Capital Lease Obligations | $33,428,858 | $45,759,137 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Jul. 31, 2014 |
gal | |
Ethanol [Member] | ' |
Supply Commitment [Line Items] | ' |
Supply Commitment, Remaining Minimum Amount Committed, Volume | 2,230,000 |
Distillers Grain [Member] | ' |
Supply Commitment [Line Items] | ' |
Supply Commitment, Remaining Minimum Amount Committed, Mass | 20,430 |
Corn Oil [Member] | ' |
Supply Commitment [Line Items] | ' |
Supply Commitment, Remaining Minimum Amount Committed, Mass | 1,500,750 |
Natural Gas [Member] | ' |
Supply Commitment [Line Items] | ' |
Supply Commitment, Remaining Minimum Amount Committed, Energy | 378,000 |
Corn [Member] | ' |
Supply Commitment [Line Items] | ' |
Purchase Commitment, Remaining Minimum Amount Committed, Volume | 400,000 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], AgStar Financial Services, PCA [Member], USD $) | 3 Months Ended |
Oct. 31, 2014 | |
Subsequent Event [Member] | AgStar Financial Services, PCA [Member] | ' |
Subsequent Event [Line Items] | ' |
Debt Instrument, Periodic Payment, Principal | $4,000,000 |
Long-term Debt | $29,158,714 |