Southwest Iowa Renewable Energy (SWIOU) 10-Q 10 Feb 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015
Document Information [Line Items]
Capital Units, Outstanding	13,327	13,327
Entity Registrant Name	Southwest Iowa Renewable Energy, LLC
Entity Central Index Key	1,424,844
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	8,993
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	3,334
Common Class C [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	1,000
Capital Unit, Class A [Member]
Document Information [Line Items]
Capital Units, Outstanding			8,993
Capital Unit, Class B [Member]
Document Information [Line Items]
Capital Units, Outstanding			3,334
Capital Unit Class C [Member]
Document Information [Line Items]
Capital Units, Outstanding			1,000

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current Assets
Cash and cash equivalents	$ 2,967	$ 3,030
Restricted cash	0	305
Accounts receivable	512	348
Accounts receivable, related party	5,386	3,416
Derivative financial instruments	514	819
Inventory	12,980	14,298
Prepaid expenses and other	890	327
Total current assets	23,249	22,543
Property, Plant, and Equipment
Land	2,064	2,064
Plant, building and equipment	214,177	213,552
Office and other equipment	1,128	1,128
Total Cost	217,369	216,744
Accumulated depreciation	(90,263)	(87,324)
Net property and equipment	127,106	129,420
Other Assets
Financing costs, net of amortization of $3,202 and $2,341, respectively	327	347
Other assets	2,148	2,166
Total other assets	2,475	2,513
Total Assets	152,830	154,476
Current Liabilities
Accounts payable	7,892	3,910
Accounts payable, related parties	179	741
Derivative Financial Instruments Related Party	674	659
Accrued expenses	5,600	6,144
Accrued expenses, related parties	671	133
Long-term Debt, Current Maturities	6,501	6,506
Total current liabilities	21,517	18,093
Long-term Debt, Excluding Current Maturities	23,076	29,227
Long Term Liabilities
Other long-term liabilities	5,815	5,840
Total long term liabilities	28,891	35,067
Members' Equity
Members' capital, 13,139 Units issued and outstanding	87,165	87,165
Accumulated profit (deficit)	15,257	14,151
Total members' equity	102,422	101,316
Total Liabilities and Members' Equity	$ 152,830	$ 154,476

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Accumulated Amortization, Deferred Finance Costs	$ 108,000	$ 87,000
Members' capital, units outstanding	13,327	13,327

Statements Of Operations

Statements Of Operations - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 53,199	$ 72,536
Cost of Goods Sold
Cost of goods sold-non hedging	51,000	56,186
Realized & unrealized hedging (gains)	(316)	(283)
Cost of Goods Sold	50,684	55,903
Gross Margin	2,515	16,633
General and administrative expenses	1,205	1,385
Operating Income	1,310	15,248
Other Income (Expense)
Other (Income) Expense	204	720
Gains (Losses) on Extinguishment of Debt	0	4,700
Net (Loss)	$ 1,106	$ 9,828
Weighted Average Units Outstanding	13,327	13,327
Weighted Average Number of Shares Outstanding, Diluted	14,127	21,415
Earnings Per Share, Basic	$ 82.99	$ 737.45
Earnings Per Share, Diluted	$ 78.29	$ 477.56

Condensed Statements Of Cash Fl

Condensed Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities
Net (loss)	$ 1,106	$ 9,828
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Depreciation	2,939	2,891
Amortization	18	18
Gains (Losses) on Extinguishment of Debt	0	4,700
Gain (Loss) on Investments	20	0
(Increase) decrease in current assets:
Accounts receivable	(2,134)	1,169
Inventories	1,318	1,033
Prepaid expenses and other	(563)	(150)
Increase (Decrease) in Derivative Assets	305	(445)
Decrease in other long-term liabilities	(25)	(25)
Increase (decrease) in current liabilities:
Accounts payable	3,420	(482)
Derivative Liability	15	(1,914)
Accrued expenses	(6)	595
Net Cash Provided by (Used in) Operating Activities	6,413	17,218
Cash Flows From Investing Activities
Purchase of property and equipment	(625)	(319)
Increase (Decrease) in Restricted Cash	(305)	0
Net Cash Provided by (Used in) Investing Activities	(320)	(319)
Cash Flows From Financing Activities
Proceeds from notes payable	16,141	10,100
Payments on borrowings	(22,297)	(33,127)
Net cash (used in) financing activities	(6,156)	(23,027)
Cash and Cash Equivalents, Period Increase (Decrease)	(63)	(6,128)
Cash And Equivalents-Beginning	3,030	9,267
Cash And Equivalents-Ending	2,967	3,139
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	330	711
Supplemental Disclosures Of Noncash Investing And Financing Activities
Purchase of property and equipment in accrued expenses	0	1,022
Increase (Decrease) in Put Options	$ 0	$ (4,700)

Nature Of Business

Nature Of Business	3 Months Ended
	Dec. 31, 2015
Nature Of Business [Abstract]
Nature Of Business	Nature of Business Southwest Iowa Renewable Energy, LLC (the “ Company ”), located in Council Bluffs, Iowa, was formed in March, 2005 and began producing ethanol in February, 2009. The Company is permitted to produce up to 125 million gallons of ethanol per year. The Company sells its ethanol, distillers grains, corn syrup, and corn oil in the continental United States, Mexico, and the Pacific Rim.

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary Of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Other Information The accompanying financial statements as of and for the three months ended December 31, 2015 and 2014 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. These unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto, for the fiscal year ended September 30, 2015 contained in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire year. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Revenue Recognition The Company sells ethanol and related products pursuant to marketing agreements. Revenues are recognized when the marketing company (the “ customer ”) has taken title to the product, prices are fixed or determinable and collectability is reasonably assured. The Company’s ethanol sales are handled through an ethanol purchase agreement (the “ Ethanol Agreement ”) with Bunge North America, Inc. (“ Bunge ”). Syrup and distillers grain (co-products) are sold through a distillers grains agreement (the “ DG Agreement ”) with Bunge, based on market prices. Marketing fees, agency fees, and commissions due to the marketer are paid separately from the settlement for the sale of the ethanol products and co-products and are included as a component of cost of goods sold. Shipping and handling costs incurred by the Company for the sale of ethanol and co-products are included in cost of goods sold. Corn oil is sold directly by the Company to various customers. Accounts Receivable Trade accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Most of the trade accounts are with Bunge. Management determines the allowance for doubtful accounts by regularly evaluating customer receivables and considering customer’s financial condition, credit history and current economic conditions. As of December 31, 2015 and September 30, 2015 , management had determined no allowance was necessary. Receivables are written off when deemed uncollectable and recoveries of receivables written off are recorded when received. Investment in Commodities Contracts, Derivative Instruments and Hedging Activities The Company’s operations and cash flows are subject to fluctuations due to changes in commodity prices. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material used to produce ethanol and ethanol by-products. Exposure to commodity price risk results from the Company’s dependence on corn in the ethanol production process. In general, rising corn prices might result in lower profit margins and, therefore, represent unfavorable market conditions. The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. To minimize the risk and the volatility of commodity prices, primarily related to corn and ethanol, the Company uses various derivative instruments, including forward corn, ethanol, and distillers grains purchase and sales contracts, over-the-counter and exchange-traded futures and option contracts. From time to time, when market conditions are appropriate, the Company will enter into derivative contracts to hedge its exposure to price risk related to forecasted corn needs and forward corn purchase contracts. Management has evaluated the Company’s contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting 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. The Company applies the normal sale exemption to forward contracts relating to ethanol, distillers grains, and corn oil and therefore these forward contracts are not marked to market. As of December 31, 2015 , the Company was committed to sell 0.4 million gallons of ethanol, 0.1 million tons of distillers grains and 3.2 million pounds of corn oil. Corn purchase contracts are treated as derivative financial instruments. Changes in market value of forward corn contracts, which are marked to market each period, are included in costs of goods sold. As of December 31, 2015 , the Company was committed to purchasing 1.9 million bushels of corn on a forward contract basis resulting in a total commitment of $7.1 million . In addition the Company was committed to purchase 0.5 million bushels of corn on basis contracts. The Company also enters into short-term options and futures contracts as a means of managing exposure to changes in commodity prices. The Company enters into derivative contracts to hedge the exposure to volatile commodity price fluctuations. The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market volatility. The Company’s specific goal is to protect itself from large moves in commodity costs. All derivatives are designated as non-hedge derivatives and the contracts will be accounted for at fair value. Although the contracts will be effective economic hedges of specified risks, they are not designated as and accounted for as hedging instruments. Derivatives not designated as hedging instruments along with cash held by brokers at December 31, 2015 and September 30, 2015 at market value are as follows: Balance Sheet Classification December 31, 2015 September 30, 2015 in 000's in 000's Futures and option contracts In gain position $ 627 $ 572 In loss position (100 ) (81 ) Cash held by (due to) broker (13 ) 328 Current asset 514 819 Forward contracts, corn Current liability 674 659 Net futures, options, and forward contracts $ (160 ) $ 160 The net realized and unrealized gains and losses on the Company’s derivative contracts for the three months ended December 31, 2015 and 2014 consist of the following: Three Months Ended Statement of Operations Classification December 31, 2015 December 31, 2014 in 000's in 000's Net realized and unrealized (gains) losses related to: Forward purchase corn contracts Cost of Goods Sold $ 879 $ (1,213 ) Futures and option corn contracts Cost of Goods Sold (1,195 ) 930 Inventory Inventory is stated at the lower of cost or market value using the average cost method. Income Per Unit Basic income per unit is calculated by dividing net income by the weighted average units outstanding for each period. Diluted income per unit is adjusted for convertible debt, using the treasury stock method and the put option using the reverse treasury stock method. Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data): Three Months Ended December 31, 2015 December 31, 2014 Numerator: Net income for basic earnings per unit $ 1,106 $ 9,828 Interest expense on convertible term note — 399 Net income for diluted earnings per unit $ 1,106 $ 10,227 Denominator: Weighted average units outstanding - basic 13,327 13,327 Weighted average units outstanding - diluted 14,127 21,415 Income per unit - basic $ 82.99 $ 737.45 Income per unit - diluted $ 78.29 $ 477.56

Inventory

Inventory	3 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory is comprised of the following: December 31, 2015 September 30, 2015 (000's) (000's) Raw Materials - corn $ 2,399 $ 3,390 Supplies and Chemicals 3,425 3,098 Work in Process 1,476 1,496 Finished Goods 5,680 6,314 Total $ 12,980 $ 14,298

Revolving Loan_Credit Agreement

Revolving Loan/Credit Agreements	3 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Revolving Loan/Credit Agreements	Revolving Loan/Credit Agreements FCSA/CoBank The Company has a credit agreement with Farm Credit Services of America, FLCA (“ FCSA ”) and CoBank, ACB, as cash management provider and agent (“ CoBank ”) which provides the Company with a term loan (the “ Term Loan ”) and a revolving term loan in the original amount of up to $36,000,000 (the “ Revolving Term Loan ”, together with the Term Loan, the “ FCSA Credit Facility ”). The FCSA Credit Facility is secured by a security interest on all of the Company’s assets. The Term Loan provides for quarterly payments by the Company to FCSA of $1,500,000 , with a maturity date of September 20, 2019. The Revolving Term Loan has a maturity date of June 1, 2023 and requires reductions in principal availability in increments of $6,000,000 each June 1 commencing on June 1, 2020. Under the FCSA Credit Facility, the Company has the right to select from the several LIBOR based interest rate options with respect to each of the Term Loan and the Revolving Term Loan. As of December 31, 2015 , there was $33.5 million available under the Revolving Term Loan. Notes payable Notes payable consists of the following: December 31, 2015 September 30, 2015 (000's) (000's) Term Loan bearing interest at LIBOR plus 3.35% (3.78% at December 31, 2015) $ 22,500 $ 24,000 Revolving Term Loan bearing interest at LIBOR plus 3.35% (3.78% at December 31, 2015) 2,520 6,894 Other debt with interest rates ranging from 3.50% to 4.15% and maturities through 2022 4,557 4,839 29,577 35,733 Less Current Maturities 6,501 6,506 Total Long Term Debt $ 23,076 $ 29,227 The approximate aggregate maturities of notes payable as of December 31, are as follows: 2016 $ 6,501 2017 6,522 2018 6,543 2019 5,065 2020 581 2021 and Thereafter 4,365 Total $ 29,577

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company used various methods including market, income and cost approaches. Based on these approaches, the Company often utilized certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observable inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3 - Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, including the general classifications of such instruments pursuant to the valuation hierarchy, is set below. Put Option liability . The put option liability consists of an agreement between the Company and ICM that contains a conditional obligation to repurchase feature. In accordance with accounting for put options as a liability, the Company calculated the fair value of the put option under Level 3, using a Monte Carlo Simulation model. Unrealized gains and losses related to the change in fair value of the put option liability are included in other expense on the Statement of Operations. Management estimates that the fair value of the put option did not materially change during the three months ended December 31, 2015. Derivative financial instruments . Commodity futures and exchange traded options are reported at fair value utilizing Level 1 inputs. For these contracts, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes and live trading levels from the Chicago Mercantile Exchange (“ CME ”) market. Ethanol contracts are reported at fair value utilizing Level 2 inputs from third-party pricing services. Forward purchase contracts are reported at fair value utilizing Level 2 inputs. For these contracts, the Company obtains fair value measurements from local grain terminal values. The fair value measurements consider observable data that may include live trading bids from local elevators and processing plants which are based on the CME market. The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and September 30, 2015 , categorized by the level of the valuation inputs within the fair value hierarchy (in '000s): December 31, 2015 Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 627 $ — $ — Liabilities: Derivative financial instruments 100 674 — Put option liability — — 5,640 September 30, 2015 Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 572 $ — $ — Liabilities: Derivative financial instruments 81 659 — Put option liability — — 5,640 The following table summarizes the assumptions used in computing the fair value of the put options subject to fair value accounting at the date of issue and during the three months ended December 31, 2015 and September 30, 2015 Put option assumptions: Expected dividend yield — Risk-free interest rate 0.41 % Expected volatility 36 % Expected life (years) 1.25 Exercise price $10,897 Company unit price $6,300 The following table reflects the activity for liabilities measured at fair value using Level 3 inputs during the three months ended December 31, 2015 and 2014: Three Months Ended December 31, 2015 December 31, 2014 Beginning Balance $5,640 $0 Put Option Issued — 4,700 Change in Value — — Ending Balance $5,640 $4,700

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2015
Related Party Transaction, Due from (to) Related Party [Abstract]
Related Party Transactions	Related Party Transactions Bunge On December 5, 2014, the Company entered into an Amended and Restated Ethanol Purchase Agreement (the “ Ethanol Agreement ”) with Bunge. Under the Ethanol Agreement, the Company has agreed to sell Bunge all of the ethanol produced by the Company, and Bunge has agreed to purchase the same. The Company will pay Bunge a percentage fee for ethanol sold by Bunge, subject to a minimum and maximum annual fee. The initial term of the Ethanol Agreement expires on December 31, 2019, however it will automatically renew for one five -year term unless Bunge provides the Company with notice of election not to renew no later than 180 days prior to the expiration of the initial term. The Company has incurred ethanol marketing expenses of $410 thousand and $312 thousand during the three months ended December 31, 2015 and 2014 , respectively. The Company and Bunge also entered into an Amended and Restated Grain Feedstock Agency Agreement on December 5, 2014 (the “ Agency Agreement ”). The Agency Agreement provides that Bunge will procure corn for the Company, the Company will pay Bunge a per bushel fee, subject to a minimum and maximum annual fee. The initial term of the Agency Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides the Company with notice of election not to renew no later than 180 days prior to the expiration of the initial term. Expenses for corn procurement were $142 thousand and $332 thousand for the three months ended December 31, 2015 and 2014 , respectively. Starting with the 2015 crop year, the Company is using corn containing Syngenta Seeds, Inc.’s proprietary Enogen® technology (“ Enogen Corn ”) for a portion of its ethanol production needs. The Company contracts directly with growers to produce Enogen Corn for sale to the Company. Consistent with the Agency Agreement, the Company and Bunge entered into a Services Agreement regarding corn purchases (the “ Services Agreement ”). Under this agreement, the Company will originate all Enogen Corn contracts for its facility and Bunge will assist the Company with certain administrative matters related to Enogen Corn, including facilitating delivery to the facility. The Company will pay Bunge a per bushel service fee. The initial term of the Services Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides the Company with notice of election not to renew no later than 180 days prior to the expiration of the initial term. On December 5, 2014, the Company and Bunge entered into an Amended and Restated Distillers Grain Purchase Agreement (the “ DG Purchase Agreement ”). Under the DG Purchase Agreement, Bunge will purchase all distillers grains produced by the Company, and will receive a fee based on the net sale price of distillers grains, subject to a minimum and maximum annual fee. The initial term of the DG Purchase Agreement expires on December 31, 2019 and will automatically renew for one additional five year term unless Bunge provides the Company with notice of election not to renew no later than 180 days prior to the expiration of the initial term. The Company has incurred distillers grains marketing expenses of $330 thousand and $305 thousand during the three months ended December 31, 2015 and 2014 , respectively. The Company and Bunge executed a letter agreement (the “ Letter Agreement ”) on December 5, 2015, terminating the Corn Oil Agency Agreement dated as of November 12, 2010 (the " Corn Oil Agency Agreement ") by and between the Company and Bunge and the Risk Management Services Agreement by and between the Company and Bunge dated as of December 15, 2008. Expenses under this terminated Corn Oil Agency Agreement were $0 and $67 thousand for the three months ended December 31, 2015 and 2014 , respectively. On June 26, 2009, the Company executed a Railcar Agreement with Bunge for the lease of 325 ethanol cars and 300 hopper cars which are used for the delivery and marketing of ethanol and distillers grains. Under the Railcar Agreement, the Company leases railcars for terms lasting 120 months and continuing on a month to month basis thereafter. The Railcar Agreement will terminate upon the expiration of all railcar leases. The Company entered into a one year sublease for 147 hoppers with Bunge that will expire September 14, 2015. The Company has subleased another 54 hopper cars to an unrelated third party, which expires March 25, 2019. Expenses under this agreement were $0.8 million for the three months ended December 31, 2015 and December 31, 2014 , net of subleases and accretion, respectively. The Company continues to work with Bunge to determine the need for ethanol and hopper cars in light of current market conditions, and the expected conditions in 2016 and beyond.

Major Customers

Major Customers	3 Months Ended
	Dec. 31, 2015
Major Customers [Abstract]
Major Customers	Major Customer The Company is party to the Ethanol and DG Purchase Agreements with Bunge for the exclusive marketing, selling, and distributing of all the ethanol, distillers grains, and syrup produced by the Company. Until December 5, 2014, the Company was also a party to the Corn Oil Agency Agreement with Bunge providing for the purchase by Bunge of all corn oil produced by the Company. Revenues from Bunge were $51.2 million and $69.8 million for the three months ended December 31, 2015 and 2014 , respectively.

Summary Of Significant Accoun13

Summary Of Significant Accounting Policies (Policy)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis Of Presentation And Other Information	Basis of Presentation and Other Information The accompanying financial statements as of and for the three months ended December 31, 2015 and 2014 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim periods. These unaudited financial statements and notes should be read in conjunction with the audited financial statements and notes thereto, for the fiscal year ended September 30, 2015 contained in the Company’s Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire year.
Use Of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Revenue Recognition	Revenue Recognition The Company sells ethanol and related products pursuant to marketing agreements. Revenues are recognized when the marketing company (the “ customer ”) has taken title to the product, prices are fixed or determinable and collectability is reasonably assured. The Company’s ethanol sales are handled through an ethanol purchase agreement (the “ Ethanol Agreement ”) with Bunge North America, Inc. (“ Bunge ”). Syrup and distillers grain (co-products) are sold through a distillers grains agreement (the “ DG Agreement ”) with Bunge, based on market prices. Marketing fees, agency fees, and commissions due to the marketer are paid separately from the settlement for the sale of the ethanol products and co-products and are included as a component of cost of goods sold. Shipping and handling costs incurred by the Company for the sale of ethanol and co-products are included in cost of goods sold. Corn oil is sold directly by the Company to various customers.
Accounts Receivable	Accounts Receivable Trade accounts receivable are recorded at original invoice amounts less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Most of the trade accounts are with Bunge. Management determines the allowance for doubtful accounts by regularly evaluating customer receivables and considering customer’s financial condition, credit history and current economic conditions. As of December 31, 2015 and September 30, 2015 , management had determined no allowance was necessary. Receivables are written off when deemed uncollectable and recoveries of receivables written off are recorded when received.
Investment In Commodities Contracts, Derivative Instruments And Hedging Activities	Investment in Commodities Contracts, Derivative Instruments and Hedging Activities The Company’s operations and cash flows are subject to fluctuations due to changes in commodity prices. The Company is subject to market risk with respect to the price and availability of corn, the principal raw material used to produce ethanol and ethanol by-products. Exposure to commodity price risk results from the Company’s dependence on corn in the ethanol production process. In general, rising corn prices might result in lower profit margins and, therefore, represent unfavorable market conditions. The availability and price of corn is subject to wide fluctuations due to unpredictable factors such as weather conditions, farmer planting decisions, governmental policies with respect to agriculture and international trade and global demand and supply. To minimize the risk and the volatility of commodity prices, primarily related to corn and ethanol, the Company uses various derivative instruments, including forward corn, ethanol, and distillers grains purchase and sales contracts, over-the-counter and exchange-traded futures and option contracts. From time to time, when market conditions are appropriate, the Company will enter into derivative contracts to hedge its exposure to price risk related to forecasted corn needs and forward corn purchase contracts. Management has evaluated the Company’s contracts to determine whether the contracts are derivative instruments. Certain contracts that literally meet the definition of a derivative may be exempted from derivative accounting 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. The Company applies the normal sale exemption to forward contracts relating to ethanol, distillers grains, and corn oil and therefore these forward contracts are not marked to market. As of December 31, 2015 , the Company was committed to sell 0.4 million gallons of ethanol, 0.1 million tons of distillers grains and 3.2 million pounds of corn oil. Corn purchase contracts are treated as derivative financial instruments. Changes in market value of forward corn contracts, which are marked to market each period, are included in costs of goods sold. As of December 31, 2015 , the Company was committed to purchasing 1.9 million bushels of corn on a forward contract basis resulting in a total commitment of $7.1 million . In addition the Company was committed to purchase 0.5 million bushels of corn on basis contracts. The Company also enters into short-term options and futures contracts as a means of managing exposure to changes in commodity prices. The Company enters into derivative contracts to hedge the exposure to volatile commodity price fluctuations. The Company maintains a risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by market volatility. The Company’s specific goal is to protect itself from large moves in commodity costs. All derivatives are designated as non-hedge derivatives and the contracts will be accounted for at fair value. Although the contracts will be effective economic hedges of specified risks, they are not designated as and accounted for as hedging instruments. Derivatives not designated as hedging instruments along with cash held by brokers at December 31, 2015 and September 30, 2015 at market value are as follows: Balance Sheet Classification December 31, 2015 September 30, 2015 in 000's in 000's Futures and option contracts In gain position $ 627 $ 572 In loss position (100 ) (81 ) Cash held by (due to) broker (13 ) 328 Current asset 514 819 Forward contracts, corn Current liability 674 659 Net futures, options, and forward contracts $ (160 ) $ 160 The net realized and unrealized gains and losses on the Company’s derivative contracts for the three months ended December 31, 2015 and 2014 consist of the following: Three Months Ended Statement of Operations Classification December 31, 2015 December 31, 2014 in 000's in 000's Net realized and unrealized (gains) losses related to: Forward purchase corn contracts Cost of Goods Sold $ 879 $ (1,213 ) Futures and option corn contracts Cost of Goods Sold (1,195 ) 930
Inventory	Inventory Inventory is stated at the lower of cost or market value using the average cost method.
Net (Loss) Per Unit	Income Per Unit Basic income per unit is calculated by dividing net income by the weighted average units outstanding for each period. Diluted income per unit is adjusted for convertible debt, using the treasury stock method and the put option using the reverse treasury stock method. Basic earnings and diluted per unit data were computed as follows (in thousands except per unit data): Three Months Ended December 31, 2015 December 31, 2014 Numerator: Net income for basic earnings per unit $ 1,106 $ 9,828 Interest expense on convertible term note — 399 Net income for diluted earnings per unit $ 1,106 $ 10,227 Denominator: Weighted average units outstanding - basic 13,327 13,327 Weighted average units outstanding - diluted 14,127 21,415 Income per unit - basic $ 82.99 $ 737.45 Income per unit - diluted $ 78.29 $ 477.56

Summary Of Significant Accoun14

Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]	Three Months Ended December 31, 2015 December 31, 2014 Numerator: Net income for basic earnings per unit $ 1,106 $ 9,828 Interest expense on convertible term note — 399 Net income for diluted earnings per unit $ 1,106 $ 10,227 Denominator: Weighted average units outstanding - basic 13,327 13,327 Weighted average units outstanding - diluted 14,127 21,415 Income per unit - basic $ 82.99 $ 737.45 Income per unit - diluted $ 78.29 $ 477.56
Schedule Of Derivatives Not Designated As Hedging Instruments	Derivatives not designated as hedging instruments along with cash held by brokers at December 31, 2015 and September 30, 2015 at market value are as follows: Balance Sheet Classification December 31, 2015 September 30, 2015 in 000's in 000's Futures and option contracts In gain position $ 627 $ 572 In loss position (100 ) (81 ) Cash held by (due to) broker (13 ) 328 Current asset 514 819 Forward contracts, corn Current liability 674 659 Net futures, options, and forward contracts $ (160 ) $ 160
Schedule of Derivative Instruments [Table Text Block]	The net realized and unrealized gains and losses on the Company’s derivative contracts for the three months ended December 31, 2015 and 2014 consist of the following: Three Months Ended Statement of Operations Classification December 31, 2015 December 31, 2014 in 000's in 000's Net realized and unrealized (gains) losses related to: Forward purchase corn contracts Cost of Goods Sold $ 879 $ (1,213 ) Futures and option corn contracts Cost of Goods Sold (1,195 ) 930

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Components Of Inventory	Inventory is comprised of the following: December 31, 2015 September 30, 2015 (000's) (000's) Raw Materials - corn $ 2,399 $ 3,390 Supplies and Chemicals 3,425 3,098 Work in Process 1,476 1,496 Finished Goods 5,680 6,314 Total $ 12,980 $ 14,298

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Dec. 31, 2015
Notes Payable [Abstract]
Components Of Notes Payable	Notes payable consists of the following: December 31, 2015 September 30, 2015 (000's) (000's) Term Loan bearing interest at LIBOR plus 3.35% (3.78% at December 31, 2015) $ 22,500 $ 24,000 Revolving Term Loan bearing interest at LIBOR plus 3.35% (3.78% at December 31, 2015) 2,520 6,894 Other debt with interest rates ranging from 3.50% to 4.15% and maturities through 2022 4,557 4,839 29,577 35,733 Less Current Maturities 6,501 6,506 Total Long Term Debt $ 23,076 $ 29,227
Aggregate Maturities Of Notes Payable	The approximate aggregate maturities of notes payable as of December 31, are as follows: 2016 $ 6,501 2017 6,522 2018 6,543 2019 5,065 2020 581 2021 and Thereafter 4,365 Total $ 29,577

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	The following table reflects the activity for liabilities measured at fair value using Level 3 inputs during the three months ended December 31, 2015 and 2014: Three Months Ended December 31, 2015 December 31, 2014 Beginning Balance $5,640 $0 Put Option Issued — 4,700 Change in Value — — Ending Balance $5,640 $4,700
Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis	The following table summarizes financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and September 30, 2015 , categorized by the level of the valuation inputs within the fair value hierarchy (in '000s): December 31, 2015 Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 627 $ — $ — Liabilities: Derivative financial instruments 100 674 — Put option liability — — 5,640 September 30, 2015 Level 1 Level 2 Level 3 Assets: Derivative financial instruments $ 572 $ — $ — Liabilities: Derivative financial instruments 81 659 — Put option liability — — 5,640
Financial Instruments Subject to Mandatory Redemption Disclosure [Table Text Block]	The following table summarizes the assumptions used in computing the fair value of the put options subject to fair value accounting at the date of issue and during the three months ended December 31, 2015 and September 30, 2015 Put option assumptions: Expected dividend yield — Risk-free interest rate 0.41 % Expected volatility 36 % Expected life (years) 1.25 Exercise price $10,897 Company unit price $6,300

Nature Of Business (Details)

Nature Of Business (Details) gal in Millions	3 Months Ended
	Dec. 31, 2015gal
Nature Of Business [Abstract]
Production, Number Of Gallons	125

Summary Of Significant Accoun19

Summary Of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, lb in Millions, gal in Millions, bu in Millions, T in Millions	3 Months Ended
	Dec. 31, 2015USD ($)Tlb$ / sharessharesbugal	Dec. 31, 2014USD ($)$ / sharesshares	Sep. 30, 2015USD ($)
Summary Of Significant Accounting Policies [Line Items]
Derivative Asset	$ 627,000
Allowance for Doubtful Accounts Receivable	$ 0
Forward Contracts, Corn, Hedged Basis | bu	1.9
Production, Number Of Gallons | gal	125
Sale of ethanol (in gallons) | gal	0.4
Debt Instrument, Convertible, Interest Expense	$ 0	$ 399,000
Net Income (Loss) Available to Common Stockholders, Basic		9,828,000
Net Income (Loss) Attributable to Parent	1,106,000	9,828,000
Net Income (Loss) Available to Common Stockholders, Diluted	$ 1,106,000	$ 10,227,000
Weighted Average Number of Shares Outstanding, Basic | shares	13,327	13,327
Weighted Average Number of Shares Outstanding, Diluted | shares	14,127	21,415
Earnings Per Share, Basic | $ / shares	$ 82.99	$ 737.45
Earnings Per Share, Diluted | $ / shares	$ 78.29	$ 477.56
Sale of distillers, grains, and solubles (in tons) | T	0.1
Total purchase commitment of corn (in bushels) | bu	0.5
Total purchase commitment	$ 7,100,000
Realized & unrealized hedging (gains)	(316,000)	$ (283,000)
Net realized and unrealized (gains) losses	$ 316,000	283,000
Corn Oil [Member]
Summary Of Significant Accounting Policies [Line Items]
Total Commitment to Sale of Corn Oil (pounds) | lb	3.2
corn [Member] | Future And Option Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Realized & unrealized hedging (gains)	$ 1,195,000	(930,000)
Net realized and unrealized (gains) losses	(1,195,000)	930,000
corn [Member] | Forward Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Realized & unrealized hedging (gains)	(879,000)	1,213,000
Net realized and unrealized (gains) losses	879,000	$ (1,213,000)
Derivative Liability			$ 659,000
ethanol [Member] | Future And Option Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Realized & unrealized hedging (gains)	0
Net realized and unrealized (gains) losses	0
Fair Value, Inputs, Level 2 [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Asset	0		0
Derivative Liability	$ 674,000		$ 659,000

Summary Of Significant Accoun20

Summary Of Significant Accounting Policies (Schedule Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Summary Of Significant Accounting Policies [Line Items]
Net realized and unrealized (gains) losses	$ 316	$ 283
Derivative Assets	(627)
Derivative Assets (Liabilities), at Fair Value, Net	(160)		$ 160
In Gain Position [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets			(572)
In loss position [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets	100		81
Cash Held By Broker [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets	13		(328)
Future And Option Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	514		819
Fair Value, Inputs, Level 1 [Member]
Summary Of Significant Accounting Policies [Line Items]
Derivative Assets			(572)
Derivative Liability	100		81
corn [Member] | Future And Option Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Net realized and unrealized (gains) losses	(1,195)	930
corn [Member] | Forward Contracts [Member]
Summary Of Significant Accounting Policies [Line Items]
Net realized and unrealized (gains) losses	$ 879	$ (1,213)
Derivative Liability			$ 659

Summary Of Significant Accoun21

Summary Of Significant Accounting Policies (Schedule Of Property And Equipment) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Allowance for Doubtful Accounts Receivable	$ 0
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	$ 316,000	$ 283,000
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Process Equipment - Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Process Equipment - Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Office Equipment - Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Office Equipment - Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
ethanol [Member] | Future And Option Contracts [Member]
Property, Plant and Equipment [Line Items]
Gain (Loss) on Derivative Instruments Held for Trading Purposes, Net	$ 0

Inventory (Components Of Invent

Inventory (Components Of Inventory) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Inventory Disclosure [Abstract]
Raw Materials - corn	$ 2,399	$ 3,390
Supplies and Chemicals	3,425	3,098
Work in Process	1,476	1,496
Finished Goods	5,680	6,314
Inventory	$ 12,980	$ 14,298

Revolving Loan_Credit Agreeme23

Revolving Loan/Credit Agreements (AgStar and Bunge) (Narrative) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Long-term Debt	$ 29,577,000	$ 35,733,000
FSCA - Term Revolver [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	3.35%
Variable interest rate	3.50%
Debt Instrument, Description of Variable Rate Basis	LIBOR plus 3.35%
Various Other [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	0.00%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	4.15%
FSCA [Member]
Debt Instrument [Line Items]
Term Revolver, Face Amount	$ 36,000,000
Debt Instrument, Periodic Payment, Principal	1,500,000
Debt Instrument, Periodic Principal Reduction	6,000,000
Term Revolver, Outstanding Amount	$ 33,500,000

Revolving Loan_Credit Agreeme24

Revolving Loan/Credit Agreements (ICM) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Debt Instrument [Line Items]
Long-term Debt	$ 29,577		$ 35,733
Gains (Losses) on Extinguishment of Debt	$ 0	$ 4,700

Notes Payable (Components Of No

Notes Payable (Components Of Notes Payable) (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Notes Payable [Line Items]
Long-term Debt	$ 29,577,000	$ 35,733,000
Less current maturities	(6,501,000)	(6,506,000)
Total long term debt	23,076,000	29,227,000
FSCA [Member]
Notes Payable [Line Items]
Term Revolver, Face Amount	36,000,000
Debt Instrument, Periodic Payment, Principal	$ 1,500,000
FSCA - Term Facility [Member]
Notes Payable [Line Items]
Reference rate	LIBOR plus 3.35%
Bearing interest rate	3.50%
Stated interest rate, minimum	3.35%
Term Loan bearing interest at LIBOR plus 3.35% (3.78% at December 31, 2015)
Notes Payable [Line Items]
Line of Credit Facility, Amount Outstanding	$ 22,500,000	24,000,000
Other debt with interest rates ranging from 3.50% to 4.15% and maturities through 2022
Notes Payable [Line Items]
Line of Credit Facility, Amount Outstanding	4,557,000	4,839,000
FSCA [Member]
Notes Payable [Line Items]
Term Loan	$ 2,520,000	$ 6,894,000
FSCA - Term Revolver [Member]
Notes Payable [Line Items]
Reference rate	LIBOR plus 3.35%
Bearing interest rate	3.50%
Stated interest rate, minimum	3.35%

Notes Payable (Aggregate Maturi

Notes Payable (Aggregate Maturities Of Notes Payable) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Debt Disclosure [Abstract]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	$ 6,501
Long-term Debt, Maturities, Repayments of Principal in Year Two	6,522
Long-term Debt, Maturities, Repayments of Principal in Year Three	6,543
Long-term Debt, Maturities, Repayments of Principal in Year Four	5,065
Long-term Debt, Maturities, Repayments of Principal in Year Five	581
Long-term Debt, Maturities, Repayments of Principal after Year Five	4,365
Total	$ 29,577	$ 35,733

Fair Value Measurement (Financi

Fair Value Measurement (Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative [Line Items]
Warrants Not Settleable in Cash, Fair Value Disclosure	$ 5,640	$ 4,700	$ 5,640	$ 0
Derivative Assets	$ 627
Warrants and rights outstanding, expected yield	0.00%	0.00%
Warrants and rights outstanding, risk-free interest rate	0.41%	0.41%
Warrants and rights outstanding, expected volatility	36.00%	36.00%
Fair Value Assumptions, Expected Term	1 year 3 months	1 year 3 months
Fair Value Assumptions, Exercise Price	$ 10,897		$ 10,897
Share Price	$ 6,300		$ 6,300
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants	$ 0	$ 4,700
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)	0	$ 0
Level 1 [Member]
Derivative [Line Items]
Derivative Assets			$ 572
Liabilities: Derivative financial instruments	100		81
Fair Value, Put Option Liability	0		0
Level 2 [Member]
Derivative [Line Items]
Derivative Assets	0		0
Liabilities: Derivative financial instruments	674		659
Fair Value, Put Option Liability	0		0
Level 3 [Member]
Derivative [Line Items]
Derivative Assets	0		0
Liabilities: Derivative financial instruments	0		0
Fair Value, Put Option Liability	$ 5,640		$ 5,640

Related Party Transactions (Bun

Related Party Transactions (Bunge) (Narrative) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2015
Related Party Transaction [Line Items]
Agreement period	120 months
Gains (Losses) on Extinguishment of Debt	$ 0	$ (4,700)
Bunge [Member]
Related Party Transaction [Line Items]
number of railcars, subleased	147
Gavilon [Member]
Related Party Transaction [Line Items]
number of railcars, subleased	54
Ethanol Agreement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 410	$ 312
Total Renewal Periods	1
Related Party Renewal Period		5 years
Ethanol Cars [Member]
Related Party Transaction [Line Items]
Number of railcars	325
Hopper Cars [Member]
Related Party Transaction [Line Items]
Number of railcars	300
Railcar Agreement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party		$ 800
DG Agreement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 330	305
Total Renewal Periods			1
Related Party Renewal Period			5 years
Grain Feedstock Agency Agreement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 142	332
Total Renewal Periods	1
Related Party Renewal Period	5 years
Corn Oil Agency Agreement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 0	$ 67
Enogen Corn [Member]
Related Party Transaction [Line Items]
Total Renewal Periods	1
Related Party Renewal Period	5 years

Major Customers (Details)

Major Customers (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Bunge [Member]
Revenue, Major Customer [Line Items]
Revenue from Related Parties	$ 51.2	$ 69.8