Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 26, 2020 | Oct. 31, 2020 | |
Entity Registrant Name | U. S. Premium Beef, LLC | |
Entity Central Index Key | 0001289237 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 26, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-26 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Entity Emerging Growth | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 333-115164 | |
Entity Incorporation, State Country Code | DE | |
Class A Units [Member] | ||
Entity Common Stock, Shares Outstanding | 735,385 | |
Class B Units [Member] | ||
Entity Common Stock, Shares Outstanding | 755,385 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 86,395 | $ 77,909 |
Accounts receivable | 336 | 3 |
Due from affiliates | 162 | 41 |
Other current assets | 7 | 26 |
Total current assets | 86,900 | 77,979 |
Property, plant, and equipment, at cost | 243 | 238 |
Less accumulated depreciation | 207 | 195 |
Net property, plant, and equipment | 36 | 43 |
Right of use assets, net | 195 | 232 |
Investment in National Beef Packing Company, LLC | 163,999 | 131,786 |
Other assets | 13 | 43 |
Total assets | 251,143 | 210,083 |
Current liabilities: | ||
Accounts payable - trade | 14 | 28 |
Due to affiliates | 32 | 29 |
Accrued compensation and benefits | 2,416 | 2,260 |
Lease obligations | 42 | 49 |
Other accrued expenses and liabilities | 354 | 1,307 |
Distributions payable | 164 | 50 |
Total current liabilities | 3,022 | 3,723 |
Long-term liabilities: | ||
Lease obligations | 153 | 183 |
Other liabilities | 5,717 | 3,340 |
Total long-term liabilities | 5,870 | 3,523 |
Total liabilities | 8,892 | 7,246 |
Commitments and contingencies | ||
Members' capital | ||
Members' contributed capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 242,251 | 202,837 |
Total members' capital | 242,251 | 202,837 |
Total liabilities and members' capital | $ 251,143 | $ 210,083 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - shares | Sep. 26, 2020 | Dec. 28, 2019 |
Class A Units [Member] | ||
Members' capital, units authorized | 735,385 | 735,385 |
Members' capital, units issued | 735,385 | 735,385 |
Members' capital, units outstanding | 735,385 | 735,385 |
Class B Units [Member] | ||
Members' capital, units authorized | 755,385 | 755,385 |
Members' capital, units issued | 755,385 | 755,385 |
Members' capital, units outstanding | 755,385 | 755,385 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 4,011 | 818 | 6,358 | 3,509 |
Depreciation and amortization | 4 | 4 | 13 | 13 |
Total costs and expenses | 4,015 | 822 | 6,371 | 3,522 |
Operating loss | (4,015) | (822) | (6,371) | (3,522) |
Other income : | ||||
Interest income | 5 | 258 | 163 | 905 |
Interest expense | 0 | 0 | (2) | (15) |
Equity in income of National Beef Packing Company, LLC | 43,014 | 41,866 | 158,498 | 78,823 |
Other, net | 343 | 48 | 439 | 445 |
Total other income | 43,362 | 42,172 | 159,098 | 80,158 |
Net income | $ 39,347 | $ 41,350 | $ 152,727 | $ 76,636 |
Class A Units [Member] | ||||
Income per unit: | ||||
Basic and diluted | $ 5.35 | $ 5.62 | $ 20.77 | $ 10.42 |
Outstanding weighted-average Class A and Class B units: | ||||
Basic and diluted | 735,385 | 735,385 | 735,385 | 735,385 |
Class B Units [Member] | ||||
Income per unit: | ||||
Basic and diluted | $ 46.88 | $ 49.27 | $ 181.97 | $ 91.31 |
Outstanding weighted-average Class A and Class B units: | ||||
Basic and diluted | 755,385 | 755,385 | 755,385 | 755,385 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 152,727 | $ 76,636 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 13 | 13 |
Equity in net income of National Beef Packing Company, LLC | (158,498) | (78,823) |
Distributions from National Beef Packing Company, LLC | 126,285 | 46,296 |
Changes in assets and liabilities: | ||
Accounts receivable | (333) | 0 |
Due from affiliates | (121) | (11) |
Other assets | 49 | 41 |
Accounts payable | (14) | (3) |
Due to affiliates | 3 | (25) |
Accrued compensation and benefits | 2,533 | (281) |
Other accrued expenses and liabilities | (953) | (375) |
Net cash used in operating activities | 121,691 | 43,468 |
Cash flows from investing activities: | ||
Capital expenditures, including interest capitalized | (6) | (43) |
Net cash used in investing activities | (6) | (43) |
Cash flows from financing activities: | ||
Member distributions | (113,199) | (56,458) |
Net cash used in financing activities | (113,199) | (56,458) |
Net increase (decrease) in cash | 8,486 | (13,033) |
Cash and cash equivalents at beginning of period | 77,909 | 88,411 |
Cash and cash equivalents at end of period | 86,395 | 75,378 |
Supplemental noncash disclosures of operating activities: | ||
Right of use assets | 0 | 243 |
Supplemental Noncash Disclosures Of Investing Activities: | ||
Investment in National Beef Packing Company, LLC | $ 0 | $ 23,691 |
1. Interim Financial Statements
1. Interim Financial Statements | 9 Months Ended |
Sep. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | (1) Interim Financial Statements Basis of Presentation The accompanying unaudited Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), for interim financial information; therefore, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included using management’s best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. For further information, refer to the audited Financial Statements and Notes to Financial Statements, which are included in the Company’s Annual Report on Form 10-K on file with the Securities and Exchange Commission (SEC), for the fiscal year ended December 28, 2019. The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year. |
2. Accounting Policies
2. Accounting Policies | 9 Months Ended |
Sep. 26, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | (2) Accounting Policies Accounting for Investment in NBP. Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment, which is other than temporary. Such potential decreases in value, if deemed other than temporary, will cause the Company to record an impairment charge, which may have an impact on the trading values of USPB’s Class A and Class B units. However, NBP’s plants are all operational at the present time; it has been designated as an essential business during the COVID-19 pandemic; and its results of operations are highly profitable, as reflected in Note 6. As a result, we believe the fair value of our investment in NBP exceeds the carrying value. Cash and Cash Equivalents. |
3. Noncompetition Agreements
3. Noncompetition Agreements | 9 Months Ended |
Sep. 26, 2020 | |
Compensation Related Costs [Abstract] | |
Noncompetition Agreements | (3) Noncompetition Agreements The former CEO’s employment agreement provided for him to receive noncompetition payments in connection with the Leucadia Transaction. He will continue to receive noncompetition payments of approximately $845,000 per year during calendar years 2020 and 2021. The current CEO’s employment agreement provides for him to receive noncompetition payments for a twelve-month period following his termination of employment with USPB. As of September 26, 2020 and December 28, 2019, the Company had accrued $1.4 million and $1.9 million, respectively, for the noncompetition agreements. The current and long-term portion of the accrued amounts are included in Accrued compensation and benefits and Other liabilities, respectively, on the balance sheet. The table below summarizes the current and long-term portions of the accrued non-compete amounts (thousands of dollars): September 26, 2020 December 28, 2019 Current non-compete $ 848 $ 848 Long-term non-compete 515 1,089 $ 1,363 $ 1,937 |
4. Employee Compensation Plans
4. Employee Compensation Plans | 9 Months Ended |
Sep. 26, 2020 | |
Retirement Benefits [Abstract] | |
Employee Compensation Plans | (4) Employee Compensation Plans In September 2010, USPB’s Board of Directors approved a management phantom unit plan and subsequently awarded phantom units in fiscal years 2010 and 2013. As of September 26, 2020 and December 28, 2019, the Company had accrued $5.7 million and $2.3 million, respectively, for the management phantom awards. The current and long-term portion of the accrued amounts are included in Accrued compensation and benefits and Other liabilities on the balance sheet. USPB provides its employees the opportunity to earn cash incentives and bonuses. As of September 26, 2020 and December 28, 2019, the Company had accrued $1.0 million and $1.4 million, respectively, for the cash incentive and bonus plans. The accrued amounts are included in Accrued compensation and benefits on the balance sheet. |
5. Earnings Per Unit
5. Earnings Per Unit | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Income (Loss) Per Unit Calculation | (5) Earnings Per Unit Under the LLC structure, earnings of the Company are to be allocated to unitholders based on their proportionate share of underlying equity. Earnings Per Unit (EPU) has been presented in the accompanying Statements of Operations and in the table that follows. Basic EPU excludes dilution and is computed by first allocating a portion of USPB’s net income or net loss to Class A units and the remainder is allocated to Class B units. For the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019, 10% of USPB’s net income was allocated to the Class A’s and 90% to the Class B’s. The net income allocated to the Class A and Class B units were then divided by the weighted-average number of Class A and Class B units outstanding for the period to determine the basic EPU for each respective class of unit. Income Per Unit Calculation 13 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 (unaudited) (unaudited) (unaudited) (unaudited) Basic and diluted earnings per unit: Income attributable to USPB available to unitholders (numerator) Class A $ 3,935 $ 4,135 $ 15,273 $ 7,664 Class B $ 35,412 $ 37,215 $ 137,454 $ 68,972 Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 735,385 Class B 755,385 755,385 755,385 755,385 Per unit amount Class A $ 5.35 $ 5.62 $ 20.77 $ 10.42 Class B $ 46.88 $ 49.27 $ 181.97 $ 91.31 Diluted EPU reflects the potential dilution that could occur to the extent that any outstanding dilutive Class A or Class B units were exercised. There are no potentially dilutive Class A or Class B units outstanding. |
6. Investment in National Beef
6. Investment in National Beef Packing Company, LLC | 9 Months Ended |
Sep. 26, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in National Beef Packing Company, LLC | (6) Investment in National Beef Packing Company, LLC USPB’s 15.0729% investment in NBP is accounted for using the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operational control. The table below summarizes the changes to USPB’s investment in NBP (unaudited) (thousands of dollars): Beginning investment at December 28, 2019 $ 131,786 Equity in net income for thirty-nine week period 158,498 Distributions (126,285 ) Ending investment at September 26, 2020 $ 163,999 Below is a summary of the results of operations for NBP for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019 (thousands of dollars): 13 weeks ended 39 weeks ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 2,236,299 $ 2,249,133 $ 7,099,345 $ 6,189,854 Costs and expenses: Cost of sales 1,901,384 1,915,866 5,897,265 5,507,504 Selling, general, and administrative expenses 20,728 20,545 59,961 59,941 Depreciation and amortization 27,142 31,432 80,465 89,049 Total costs and expenses 1,949,254 1,967,843 6,037,691 5,656,494 Operating income 287,045 281,290 1,061,654 533,360 Other income (expense): Interest income 201 109 337 347 Interest expense (1,012 ) (2,985 ) (7,582 ) (9,127 ) Income before taxes 286,234 278,414 1,054,409 524,580 Income tax expense (868 ) (657 ) (2,872 ) (1,637 ) Net income $ 285,366 $ 277,757 $ 1,051,537 $ 522,943 NBP's net income attributable to USPB $ 43,014 $ 41,866 $ 158,498 $ 78,823 |
7. Income Taxes
7. Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Effective August 29, 2004, the Company converted to an LLC, and under this structure, taxes are not assessed at the Company level as the results of operations are included in the taxable income of the individual members. Although income taxes are assessed to the individual members, USPB is required to withhold state income taxes from the cash distributions it makes to it members. As of September 26, 2020, Other accrued expenses and liabilities on the Company’s balance sheet reflected state taxes payable of $286 thousand. |
8. Long-term Debt and Loan Agre
8. Long-term Debt and Loan Agreements | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Loan Agreements | (8) Long-term Debt and Loan Agreements On July 13, 2020, USPB, and CoBank, ACB (“CoBank”), entered into a Credit Agreement, Amended and Restated Revolving Term Promissory Note (“Promissory Note”), and an Affirmation of Pledge Agreement. The Credit Agreement, Amended and Restated Revolving Term Promissory Note, and Affirmation of Pledge Agreement replace, amend and restate the arrangements between CoBank and USPB contained in that certain Master Loan Agreement, Revolving Term Loan Supplement to the Master Loan Agreement, Pledge Agreement, and Security Agreement dated July 26, 2011, as amended (the “Prior Agreements.”). The Credit Agreement and Promissory Note provide for a $1 million Revolving Term Commitment. That commitment carries a term of five years, maturing on June 30, 2025. All of the $1 million revolving credit commitment was available as of September 26, 2020. The Promissory Note defines Interest as equal to the One-Month LIBOR Index Rate or if LIBOR quotes are no longer available, CoBank will replace the LIBOR Index Rate with a replacement benchmark rate. The other terms and conditions of the Master Loan Agreement and the Revolving Term Loan Supplement continue the terms and conditions of the Prior Agreements without material modifications. The Affirmation of Pledge Agreement provides CoBank with a first-priority security interest in USPB’s Membership Interests in, and Distributions from, National Beef Packing Company, LLC. |
9. Members' Capital
9. Members' Capital | 9 Months Ended |
Sep. 26, 2020 | |
Members' Equity [Abstract] | |
Members' Capital | (9) Members’ Capital The following table represents a reconciliation of Members’ Capital for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019 (unaudited) (thousands of dollars). Balance at December 28, 2019 $ 202,837 Allocation of net income for the thirteen-week period ended March 28, 2020 12,176 Balance at March 28, 2020 $ 215,013 Allocation of net income for the thirteen-week period ended June 27, 2020 101,204 Member distributions Class A ($6.81 per Class A unit) (5,008 ) Class B ($59.67 per Class B unit) (45,071 ) Balance at June 27, 2020 $ 266,138 Allocation of net income for the thirteen-week period ended September 26, 2020 39,347 Member distributions Class A ($8.60 per Class A unit) (6,323 ) Class B ($75.34 Class B unit) (56,911 ) Balance at September 26, 2020 $ 242,251 Balance at December 29, 2018 $ 219,756 Allocation of net income for the thirteen-week period ended March 30, 2019 10,538 Member distributions Class A ($5.00 per Class A unit) (3,675 ) Class B ($43.78 per Class B unit) (33,071 ) Balance at March 30, 2019 $ 193,548 Allocation of net income for the thirteen-week period ended June 29, 2019 24,748 Member distributions Class A ($0.90 per Class A unit) (660 ) Class B ($7.86 per Class B unit) (5,940 ) Balance at June 29, 2019 $ 211,696 Allocation of net income for the thirteen-week period ended September 28, 2019 41,350 Member distributions Class A ($1.01 per Class A unit) (742 ) Class B ($8.85 per Class B unit) (6,683 ) Balance at September 28, 2019 $ 245,621 |
10. Legal Proceedings
10. Legal Proceedings | 9 Months Ended |
Sep. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | (10) Legal Proceedings USPB is not currently involved in any litigation. However, because its ownership interest in NBP is USPB’s largest asset and because of the cattle procurement and distribution relationship between USPB and NBP, litigation involving NBP may impact USPB. NBP is a defendant in four class action lawsuits in the United States District Court, Minnesota District alleging that it violated the Sherman Antitrust Act, the Packers and Stockyards Act, the Commodity Exchange Act, and various state laws (the “Antitrust Cases”). The Antitrust Cases are entitled In re Cattle Antitrust Litigation Peterson et al. v. JBS USA Food Company Holdings, et al Samuels v. Cargill, Inc., et al, Erbert & Gerbert’s, Inc. v. JBS USA Food Company Holdings, et al. Thornton v. Tyson Foods, Inc., et al. Lucero v. Tyson Foods, et al NBP is a party to various other lawsuits and claims arising out of the operation of its business. Management believes the ultimate resolution of such matters should not have a material adverse effect on NPB’s financial condition, results of operations or liquidity. USPB is not able to assess what impact, if any, the actions described above will have on NBP or USPB. |
11. Subsequent Events
11. Subsequent Events | 9 Months Ended |
Sep. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (11) Subsequent Events USPB has evaluated subsequent events through the date the financial statements were issued and determined there were no such events to report. |
2. Accounting Policies (Policie
2. Accounting Policies (Policies) | 9 Months Ended |
Sep. 26, 2020 | |
Accounting Policies [Abstract] | |
Accounting for Investment in NBP | Accounting for Investment in NBP. Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment, which is other than temporary. Such potential decreases in value, if deemed other than temporary, will cause the Company to record an impairment charge, which may have an impact on the trading values of USPB’s Class A and Class B units. However, NBP’s plants are all operational at the present time; it has been designated as an essential business during the COVID-19 pandemic; and its results of operations are highly profitable, as reflected in Note 6. As a result, we believe the fair value of our investment in NBP exceeds the carrying value. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
3. Noncompetition Agreements (T
3. Noncompetition Agreements (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Compensation Related Costs [Abstract] | |
Schedule of non-compete amounts | The table below summarizes the current and long-term portions of the accrued non-compete amounts (thousands of dollars): September 26, 2020 December 28, 2019 Current non-compete $ 848 $ 848 Long-term non-compete 515 1,089 $ 1,363 $ 1,937 |
5. Earnings Per Unit (Tables)
5. Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of earnings per unit | Income Per Unit Calculation 13 weeks ended 39 weeks ended (thousands of dollars, except unit and per unit data) September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 (unaudited) (unaudited) (unaudited) (unaudited) Basic and diluted earnings per unit: Income attributable to USPB available to unitholders (numerator) Class A $ 3,935 $ 4,135 $ 15,273 $ 7,664 Class B $ 35,412 $ 37,215 $ 137,454 $ 68,972 Weighted average outstanding units (denominator) Class A 735,385 735,385 735,385 735,385 Class B 755,385 755,385 755,385 755,385 Per unit amount Class A $ 5.35 $ 5.62 $ 20.77 $ 10.42 Class B $ 46.88 $ 49.27 $ 181.97 $ 91.31 |
6. Investment in National Bee_2
6. Investment in National Beef Packing Company, LLC (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment roll forward | The table below summarizes the changes to USPB’s investment in NBP (unaudited) (thousands of dollars): Beginning investment at December 28, 2019 $ 131,786 Equity in net income for thirty-nine week period 158,498 Distributions (126,285 ) Ending investment at September 26, 2020 $ 163,999 |
Schedule of Operations for NBP | Below is a summary of the results of operations for NBP for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019 (thousands of dollars): 13 weeks ended 39 weeks ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 2,236,299 $ 2,249,133 $ 7,099,345 $ 6,189,854 Costs and expenses: Cost of sales 1,901,384 1,915,866 5,897,265 5,507,504 Selling, general, and administrative expenses 20,728 20,545 59,961 59,941 Depreciation and amortization 27,142 31,432 80,465 89,049 Total costs and expenses 1,949,254 1,967,843 6,037,691 5,656,494 Operating income 287,045 281,290 1,061,654 533,360 Other income (expense): Interest income 201 109 337 347 Interest expense (1,012 ) (2,985 ) (7,582 ) (9,127 ) Income before taxes 286,234 278,414 1,054,409 524,580 Income tax expense (868 ) (657 ) (2,872 ) (1,637 ) Net income $ 285,366 $ 277,757 $ 1,051,537 $ 522,943 NBP's net income attributable to USPB $ 43,014 $ 41,866 $ 158,498 $ 78,823 |
9. Members' Capital (Tables)
9. Members' Capital (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Members' Equity [Abstract] | |
Schedule of Reconciliation of Members' Capital | The following table represents a reconciliation of Members’ Capital for the thirteen and thirty-nine week periods ended September 26, 2020 and September 28, 2019 (unaudited) (thousands of dollars). Balance at December 28, 2019 $ 202,837 Allocation of net income for the thirteen-week period ended March 28, 2020 12,176 Balance at March 28, 2020 $ 215,013 Allocation of net income for the thirteen-week period ended June 27, 2020 101,204 Member distributions Class A ($6.81 per Class A unit) (5,008 ) Class B ($59.67 per Class B unit) (45,071 ) Balance at June 27, 2020 $ 266,138 Allocation of net income for the thirteen-week period ended September 26, 2020 39,347 Member distributions Class A ($8.60 per Class A unit) (6,323 ) Class B ($75.34 Class B unit) (56,911 ) Balance at September 26, 2020 $ 242,251 Balance at December 29, 2018 $ 219,756 Allocation of net income for the thirteen-week period ended March 30, 2019 10,538 Member distributions Class A ($5.00 per Class A unit) (3,675 ) Class B ($43.78 per Class B unit) (33,071 ) Balance at March 30, 2019 $ 193,548 Allocation of net income for the thirteen-week period ended June 29, 2019 24,748 Member distributions Class A ($0.90 per Class A unit) (660 ) Class B ($7.86 per Class B unit) (5,940 ) Balance at June 29, 2019 $ 211,696 Allocation of net income for the thirteen-week period ended September 28, 2019 41,350 Member distributions Class A ($1.01 per Class A unit) (742 ) Class B ($8.85 per Class B unit) (6,683 ) Balance at September 28, 2019 $ 245,621 |
2. Accounting Policies (Details
2. Accounting Policies (Details Narrative) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 86,395 | $ 77,909 | $ 75,378 | $ 88,411 |
3. Noncompetition Agreements (D
3. Noncompetition Agreements (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Compensation Related Costs [Abstract] | ||
Current non-compete | $ 848 | $ 848 |
Long-term non-compete | 515 | 1,089 |
Total non-compete | $ 1,363 | $ 1,937 |
3. Noncompetition Agreements _2
3. Noncompetition Agreements (Details Narrative) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Compensation Related Costs [Abstract] | ||
Noncompetition payment payable year one | $ 845 | |
Noncompetition payment payable year two | 845 | |
Accrued Noncompetition Payments | $ 1,400 | $ 1,900 |
4. Employee Options and Benefit
4. Employee Options and Benefit Plans (Details Narrative) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Accrued compensation and benefits | $ 2,416 | $ 2,260 |
Management Phantom Unit Plan [Member] | ||
Accrued liabilities | 5,700 | 2,300 |
Cash Incentive And Bonus Plans [Member] | ||
Accrued compensation and benefits | $ 1,000 | $ 1,400 |
5. Earnings Per Unit (Details)
5. Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Basic and diluted earnings per unit: | ||||||||
Income attributable to USPB available to unitholders (numerator) | $ 39,347 | $ 101,204 | $ 12,176 | $ 24,748 | $ 24,748 | $ 10,538 | ||
Class A Units [Member] | ||||||||
Basic and diluted earnings per unit: | ||||||||
Income attributable to USPB available to unitholders (numerator) | $ 3,935 | $ 4,135 | $ 15,273 | $ 7,664 | ||||
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 | ||||
Per unit amount | $ 5.35 | $ 5.62 | $ 20.77 | $ 10.42 | ||||
Class B Units [Member] | ||||||||
Basic and diluted earnings per unit: | ||||||||
Income attributable to USPB available to unitholders (numerator) | $ 35,412 | $ 37,215 | $ 137,454 | $ 68,972 | ||||
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 | ||||
Per unit amount | $ 46.88 | $ 49.27 | $ 181.97 | $ 91.31 |
6. Investment in National Bee_3
6. Investment in National Beef Packing Company (Details - Investment rollforward) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Beginning Investment Balance | $ 131,786 | |||
Equity in net income | $ 43,014 | $ 41,866 | 158,498 | $ 78,823 |
Distributions from National Beef Packing Company, LLC | (126,285) | $ (46,296) | ||
Ending Investment Balance | $ 163,999 | $ 163,999 |
6. Investment in National Bee_4
6. Investment in National Beef Packing Company (Details - Summary of operations) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Investment in National Beef Packing | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 4,011 | 818 | 6,358 | 3,509 |
Depreciation and amortization | 4 | 4 | 13 | 13 |
Total costs and expenses | 4,015 | 822 | 6,371 | 3,522 |
Other income (expense): | ||||
Interest income | 5 | 258 | 163 | 905 |
Interest expense | 0 | 0 | (2) | (15) |
National Beef Packing Company, LLC [Member] | ||||
Investment in National Beef Packing | ||||
Net sales | 2,236,299 | 2,249,133 | 7,099,345 | 6,189,854 |
Costs and expenses: | ||||
Cost of sales | 1,901,384 | 1,915,866 | 5,897,265 | 5,507,504 |
Selling, general, and administrative expenses | 20,728 | 20,545 | 59,961 | 59,941 |
Depreciation and amortization | 27,142 | 31,432 | 80,465 | 89,049 |
Total costs and expenses | 1,949,254 | 1,967,843 | 6,037,691 | 5,656,494 |
Operating income | 287,045 | 281,290 | 1,061,654 | 533,360 |
Other income (expense): | ||||
Interest income | 201 | 109 | 337 | 347 |
Interest expense | (1,012) | (2,985) | (7,582) | (9,127) |
Income before taxes | 286,234 | 278,414 | 1,054,409 | 524,580 |
Income tax expense | (868) | (657) | (2,872) | (1,637) |
Net income | 285,366 | 277,757 | 1,051,537 | 522,943 |
NBP's net income attributable to USPB | $ 43,014 | $ 41,866 | $ 158,498 | $ 78,823 |
6. Investment in National Bee_5
6. Investment in National Beef Packing Company, LLC (Details Narrative) | Sep. 26, 2020 |
National Beef Packing Company, LLC [Member] | |
Ownership percentage | 15.0729% |
7. Income Taxes (Details Narrat
7. Income Taxes (Details Narrative) $ in Thousands | Sep. 26, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
State income tax payable | $ 286 |
8. Long-Term Debt and Loan Ag_2
8. Long-Term Debt and Loan Agreements (Details Narrative) - CoBank [Member] - Revolving Credit Facility [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2020 | Jul. 13, 2020 | |
Credit line maximum borrowing capacity | $ 1,000 | |
Credit line, remaining borrowing capacity | $ 1,000 | |
Credit line expiration date | Jun. 30, 2025 |
9. Members' Capital (Details)
9. Members' Capital (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Beginning balance | $ 266,138 | $ 215,013 | $ 202,837 | $ 211,696 | $ 193,548 | $ 219,756 | $ 202,837 | $ 219,756 |
Allocation of net income | 39,347 | 101,204 | 12,176 | 24,748 | 24,748 | 10,538 | ||
Ending balance | 242,251 | 266,138 | $ 215,013 | 211,696 | 211,696 | 193,548 | 242,251 | 211,696 |
Class A Units [Member] | ||||||||
Allocation of net income | 3,935 | 4,135 | 15,273 | 7,664 | ||||
Member distributions | (6,323) | (5,008) | (660) | (660) | (3,675) | |||
Class B Units [Member] | ||||||||
Allocation of net income | 35,412 | 37,215 | $ 137,454 | $ 68,972 | ||||
Member distributions | $ (56,911) | $ (45,071) | $ (5,940) | $ (5,940) | $ (33,071) |