Cover
Cover - shares | 6 Months Ended | |
Jun. 25, 2022 | Jul. 30, 2022 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 25, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-115164 | |
Entity Registrant Name | U. S. PREMIUM BEEF, LLC | |
Entity Central Index Key | 0001289237 | |
Entity Tax Identification Number | 20-1576986 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 12200 North Ambassador Drive | |
Entity Address, City or Town | Kansas City | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 64163 | |
City Area Code | (866) | |
Local Phone Number | 877-2525 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Units [Member] | ||
Entity Common Stock, Shares Outstanding | 735,385 | |
Class B Units [Member] | ||
Entity Common Stock, Shares Outstanding | 755,385 |
Balance Sheets (unaudited)
Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 76,000 | $ 130,400 |
Accounts receivable | 444 | 48 |
Due from affiliates | 1,110 | 58 |
Other current assets | 19 | 3 |
Total current assets | 77,573 | 130,509 |
Property, plant, and equipment, at cost | 266 | 243 |
Less accumulated depreciation | 201 | 222 |
Net property, plant, and equipment | 65 | 21 |
Right of use assets, net | 141 | 168 |
Investment in National Beef Packing Company, LLC | 193,013 | 213,290 |
Other assets | 1 | 2 |
Total assets | 270,793 | 343,990 |
Current liabilities: | ||
Accounts payable - trade | 23 | 14 |
Due to affiliates | 0 | 7 |
Accrued compensation and benefits | 1,559 | 2,106 |
Lease obligations | 56 | 54 |
Other accrued expenses and liabilities | 1,736 | 1,110 |
Distributions Payable | 361 | 833 |
Total current liabilities | 3,735 | 4,124 |
Long-term liabilities: | ||
Lease obligations | 85 | 114 |
Other liabilities | 8,212 | 7,480 |
Total long-term liabilities | 8,297 | 7,594 |
Total liabilities | 12,032 | 11,718 |
Commitments and contingencies | ||
Members' capital | ||
Members' contributed capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding | 258,761 | 332,272 |
Total members' capital | 258,761 | 332,272 |
Total liabilities and members' capital | $ 270,793 | $ 343,990 |
Balance Sheets (unaudited) (Par
Balance Sheets (unaudited) (Parenthetical) - shares | Jun. 25, 2022 | Dec. 25, 2021 |
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 | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Costs and expenses: | ||||
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general, and administrative expenses | 1,941 | 1,065 | 3,617 | 2,549 |
Depreciation and amortization | 6 | 3 | 9 | 6 |
Total costs and expenses | 1,947 | 1,068 | 3,626 | 2,555 |
Operating loss | (1,947) | (1,068) | (3,626) | (2,555) |
Other income: | ||||
Interest income | 33 | 2 | 36 | 4 |
Equity in income of National Beef Packing Company, LLC | 52,779 | 103,198 | 115,385 | 139,757 |
Other (loss) income, net | (151) | 202 | (34) | 257 |
Total other income | 52,661 | 103,402 | 115,387 | 140,018 |
Net income | $ 50,714 | $ 102,334 | $ 111,761 | $ 137,463 |
Class A Units [Member] | ||||
Income per unit: | ||||
Basic and diluted | $ 6.90 | $ 13.92 | $ 15.20 | $ 18.69 |
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 | $ 60.42 | $ 121.93 | $ 133.16 | $ 163.78 |
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 | 6 Months Ended | |
Jun. 25, 2022 | Jun. 26, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 111,761 | $ 137,463 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9 | 6 |
Equity in net income of National Beef Packing Company, LLC | (115,385) | (139,757) |
Distributions from National Beef Packing Company, LLC | 135,662 | 82,559 |
Changes in assets and liabilities: | ||
Accounts receivable | (396) | (877) |
Due from affiliates | (1,052) | 15 |
Other assets | (15) | 21 |
Accounts payable | 9 | (2) |
Due to affiliates | (7) | 0 |
Accrued compensation and benefits | 185 | (502) |
Other accrued expenses and liabilities | 626 | (197) |
Net cash provided by operating activities | 131,397 | 78,729 |
Cash flows from Investing activities: | ||
Capital expenditures | (53) | 0 |
Net cash used in investing activities | (53) | 0 |
Cash flows from financing activities: | ||
Member distributions | (185,744) | (93,014) |
Net cash used in financing activities | (185,744) | (93,014) |
Net decrease in cash | (54,400) | (14,285) |
Cash and cash equivalents at beginning of period | 130,400 | 76,769 |
Cash and cash equivalents at end of period | $ 76,000 | $ 62,484 |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jun. 25, 2022 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | (1) Interim Financial Statements Basis of Presentation The accompanying unaudited Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (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 25, 2021. The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 25, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | (2) Accounting Policies Accounting for Investment in NBP. 15.0729 Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP, 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 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. 76.0 Accrued Expenses. 0.2 |
Noncompetition Agreements
Noncompetition Agreements | 6 Months Ended |
Jun. 25, 2022 | |
Noncompetition Agreements | |
Noncompetition Agreements | (3) Noncompetition Agreements The CEO’s employment agreement provides for him to receive noncompetition payments for a twelve-month period following his termination of employment with USPB. As of June 25, 2022 and December 25, 2021, the Company had accrued $ 0.3 0.3 Schedule of non-compete amounts June 25, 2022 December 25, 2021 (thousands of dollars) Current non-compete $ – $ – Long-term non-compete 301 323 Total non-compete $ 301 $ 323 |
Employee Compensation Plans
Employee Compensation Plans | 6 Months Ended |
Jun. 25, 2022 | |
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 June 25, 2022 and December 25, 2021, the Company had accrued $ 8.8 7.9 Schedule of Accrued Liabilities June 25, 2022 December 25, 2021 (thousands of dollars) Accrued compensation and benefits $ 879 $ 707 Other liabilities 7,911 7,157 Total phantom accrual $ 8,790 $ 7,864 USPB provides its employees the opportunity to earn cash incentives and bonuses. As of June 25, 2022 and December 25, 2021, the Company had accrued $ 0.7 1.4 |
Earnings Per Unit
Earnings Per Unit | 6 Months Ended |
Jun. 25, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Unit | (5) Earnings Per Unit Under the LLC structure, earnings of the Company are to be allocated to unitholders based on their proportionate share of underlying equity. Earnings Per Unit (EPU) has been presented in the accompanying Statements of Operations and in the table that follows. Basic EPU excludes dilution and is computed by first allocating a portion of USPB’s net income or net loss to Class A units and the remainder is allocated to Class B units. For the thirteen and twenty-six week periods ended June 25, 2022 and June 26, 2021, 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. 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. Schedule of Reconciliation of earnings per unit Income Per Unit Calculation 13 weeks ended 26 weeks ended (thousands of dollars, except unit and per unit data) June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Basic and diluted earnings per unit: Income attributable to USPB available to unitholders (numerator) Class A $ 5,071 $ 10,233 $ 11,176 $ 13,746 Class B $ 45,643 $ 92,101 $ 100,585 $ 123,717 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 $ 6.90 $ 13.92 $ 15.20 $ 18.69 Class B $ 60.42 $ 121.93 $ 133.16 $ 163.78 |
Investment in National Beef Pac
Investment in National Beef Packing Company, LLC | 6 Months Ended |
Jun. 25, 2022 | |
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 for the thirteen and twenty-six week periods ended June 25, 2022 and June 26, 2021 (thousands of dollars): Schedule of Investment roll forward Investment at December 25, 2021 $ 213,290 Equity in net income for thirteen-week period 62,606 Distributions (52,755 ) Investment at March 26, 2022 $ 223,141 Equity in net income for thirteen-week period 52,779 Distributions (82,907 ) Investment at June 25, 2022 $ 193,013 Investment at December 26, 2020 $ 131,494 Equity in net income for thirteen-week period 36,559 Distributions (21,402 ) Investment at March 27, 2021 $ 146,651 Equity in net income for thirteen-week period 103,198 Distributions (61,157 ) Investment at June 26, 2021 $ 188,692 The difference between USPB’s percentage ownership share of NBP earnings and the recorded amount of Equity in income of National Beef Packing Company, LLC is attributable to the amortization of a basis difference related to the purchase accounting for NBP’s acquisition of Ohio Beef in 2019. Below is a summary of the results of operations for NBP for the thirteen and twenty-six week periods ended June 25, 2022 and June 26, 2021 (thousands of dollars): Schedule of Operations for NBP 13 weeks ended 26 weeks ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 2,949,870 $ 2,948,388 $ 5,973,624 $ 5,264,003 Costs and expenses: Cost of sales 2,540,322 2,210,339 5,095,022 4,233,893 Selling, general, and administrative expenses 23,849 22,052 45,220 40,917 Depreciation and amortization 29,873 28,004 59,309 55,673 Total costs and expenses 2,594,044 2,260,395 5,199,551 4,330,483 Operating income 355,826 687,993 774,073 933,520 Other income (expense): Interest income 40 12 67 98 Interest expense (2,212 ) (2,396 ) (3,688 ) (4,796 ) Income before taxes 353,654 685,609 770,452 928,822 Income tax expense (1,497 ) (952 ) (2,940 ) (1,616 ) Net income $ 352,157 $ 684,657 $ 767,512 $ 927,206 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2022 | |
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 June 25, 2022 and December 25, 2021, Other accrued expenses and liabilities on the Company’s balance sheet reflected state taxes payable of $ 1.5 1.0 |
Long-term Debt and Loan Agreeme
Long-term Debt and Loan Agreements | 6 Months Ended |
Jun. 25, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Loan Agreements | (8) Long-term Debt and Loan Agreements On July 13, 2020, USPB, and CoBank, entered into a Credit Agreement, Amended and Restated Revolving Term Promissory Note (“Promissory Note”), and an Affirmation of Pledge Agreement. The Credit Agreement and Promissory Note provide for a $ 1.0 June 30, 2025 1.0 |
Members_ Capital
Members’ Capital | 6 Months Ended |
Jun. 25, 2022 | |
Members Capital | |
Members’ Capital | (9) Members’ Capital The following table represents a reconciliation of Members’ Capital for the thirteen and twenty-six week periods ended June 25, 2022 and June 26, 2021 (unaudited) (thousands of dollars). Schedule of Reconciliation of Members' Capital Balance at December 25, 2021 $ 332,272 Net income for the thirteen-week period ended March 26, 2022 61,047 Member distributions Class A ($16.16 per Class A unit) (11,888 ) Class B ($141.64 per Class B unit) (106,994 ) Balance at March 26, 2022 $ 274,437 Net income for the thirteen-week period ended June 25, 2022 50,714 Member distributions Class A ($9.03 per Class A unit) (6,638 ) Class B ($79.10 per Class B unit) (59,752 ) Balance at June 25, 2022 $ 258,761 Balance at December 26, 2020 $ 200,242 Net income for the thirteen-week period ended March 27, 2021 35,129 Member distributions Class A ($6.32 per Class A unit) (4,646 ) Class B ($55.36 per Class B unit) (41,817 ) Balance at March 27, 2021 $ 188,908 Net income for the thirteen-week period ended June 26, 2021 102,334 Member distributions Class A ($6.49 per Class A unit) (4,777 ) Class B ($56.92 per Class B unit) (42,992 ) Balance at June 26, 2021 $ 243,473 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Jun. 25, 2022 | |
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 antitrust lawsuits in the United States District Court, Minnesota District, and seven single plaintiff antitrust lawsuits in United States District Court, Minnesota District, the United States District Court, Southern District of Florida, the United States District Court, Connecticut, the United States District Court, Northern District of New York, the United States District Court, Northern District of Illinois, and the United States District Court, Southern District of Texas. In addition, NBP is a defendant in class action antitrust lawsuits in the Supreme Court of British Columbia and the Superior Court of Quebec, Montreal District. These lawsuits all allege that NBP violated the Sherman Antitrust Act or the Canadian Competition Act and some of the lawsuits allege that NBP violated the Packers and Stockyards Act, the Commodity Exchange Act, and various state or provincial laws. The class-action cases are entitled In re Cattle Antitrust Litigation, which was filed originally on April 23, 2019; Peterson et al. v. JBS USA Food Company Holdings, et al., which was filed originally on April 26, 2019; In re DPP Beef Litigation, which was filed originally on April 26, 2019; Erbert & Gerbert’s, Inc. v. JBS USA Food Company Holdings, et al., which was filed originally on June 18, 2020; Giang Bui v. Cargill, Incorporated, et al. which was filed originally on February 18, 2022; and Sylvie De Bellefeuille v. Cargill, Inc. et al., which was filed originally on March 24, 2022. The single-plaintiff Antitrust Cases are entitled Winn-Dixie Stores, Inc. and Bi-Lo Holding, LLC v. Cargill, Inc., et al., which was filed on August 2, 2021; Cheney Brothers, Inc. v. Cargill, Inc., et al., which was filed on January 31, 2022; Subway v. Cargill, Inc. et al., which was filed on February 22, 2022; Amory Investments LLC v. Cargill, Inc. et al., which was filed originally on March 8, 2022; Associated Grocers, Inc., et al. v. Cargill, Inc., et al., which was filed originally on May 12, 2022; Giant Eagle, Inc. v. Cargill, Inc., et al., which was filed originally on June 8, 2022; and Sysco Corporation v. Cargill, Inc., et al., which was filed originally on June 24, 2022. The plaintiffs in these cases seek treble damages and other relief under various laws including the Sherman Antitrust Act, the Canadian Competition Act, the Packers & Stockyards Act, and/or the Commodities Exchange Act and various state and provincial laws and attorneys’ fees. NBP believes it has meritorious defenses to the claims in these cases and intends to defend them vigorously. There can be no assurances, however, as to the outcome of these matters or the impact on NBP’s consolidated financial position, results of operations and cash flows. In addition to the antitrust litigation, NBP is subject to an investigation by the United States Department of Justice and approximately 30 state attorneys general regarding industry cattle procurement practices. NBP is cooperating with these investigations and is working with the Department of Justice and the relevant states to provide information requested in connection with the investigations. NBP believes it has meritorious defenses to any potential claims that might arise out of these government investigations, although there can be no assurance as to the outcome of these investigations or the impact on NBP’s consolidated financial position, results of operations and cash flows. NBP is a 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 NBP’s financial condition, results of operations or liquidity. USPB is not able to assess what impact, if any, the actions described above will have on NBP or USPB. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 25, 2022 | |
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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 25, 2022 | |
Accounting Policies [Abstract] | |
Accounting for Investment in NBP. | Accounting for Investment in NBP. 15.0729 Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP, 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 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. 76.0 |
Accrued Expenses. | Accrued Expenses. 0.2 |
Noncompetition Agreements (Tabl
Noncompetition Agreements (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Noncompetition Agreements | |
Schedule of non-compete amounts | Schedule of non-compete amounts June 25, 2022 December 25, 2021 (thousands of dollars) Current non-compete $ – $ – Long-term non-compete 301 323 Total non-compete $ 301 $ 323 |
Employee Compensation Plans (Ta
Employee Compensation Plans (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Accrued Liabilities | Schedule of Accrued Liabilities June 25, 2022 December 25, 2021 (thousands of dollars) Accrued compensation and benefits $ 879 $ 707 Other liabilities 7,911 7,157 Total phantom accrual $ 8,790 $ 7,864 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of earnings per unit | Schedule of Reconciliation of earnings per unit Income Per Unit Calculation 13 weeks ended 26 weeks ended (thousands of dollars, except unit and per unit data) June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Basic and diluted earnings per unit: Income attributable to USPB available to unitholders (numerator) Class A $ 5,071 $ 10,233 $ 11,176 $ 13,746 Class B $ 45,643 $ 92,101 $ 100,585 $ 123,717 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 $ 6.90 $ 13.92 $ 15.20 $ 18.69 Class B $ 60.42 $ 121.93 $ 133.16 $ 163.78 |
Investment in National Beef P_2
Investment in National Beef Packing Company, LLC (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment roll forward | Schedule of Investment roll forward Investment at December 25, 2021 $ 213,290 Equity in net income for thirteen-week period 62,606 Distributions (52,755 ) Investment at March 26, 2022 $ 223,141 Equity in net income for thirteen-week period 52,779 Distributions (82,907 ) Investment at June 25, 2022 $ 193,013 Investment at December 26, 2020 $ 131,494 Equity in net income for thirteen-week period 36,559 Distributions (21,402 ) Investment at March 27, 2021 $ 146,651 Equity in net income for thirteen-week period 103,198 Distributions (61,157 ) Investment at June 26, 2021 $ 188,692 |
Schedule of Operations for NBP | Schedule of Operations for NBP 13 weeks ended 26 weeks ended June 25, 2022 June 26, 2021 June 25, 2022 June 26, 2021 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ 2,949,870 $ 2,948,388 $ 5,973,624 $ 5,264,003 Costs and expenses: Cost of sales 2,540,322 2,210,339 5,095,022 4,233,893 Selling, general, and administrative expenses 23,849 22,052 45,220 40,917 Depreciation and amortization 29,873 28,004 59,309 55,673 Total costs and expenses 2,594,044 2,260,395 5,199,551 4,330,483 Operating income 355,826 687,993 774,073 933,520 Other income (expense): Interest income 40 12 67 98 Interest expense (2,212 ) (2,396 ) (3,688 ) (4,796 ) Income before taxes 353,654 685,609 770,452 928,822 Income tax expense (1,497 ) (952 ) (2,940 ) (1,616 ) Net income $ 352,157 $ 684,657 $ 767,512 $ 927,206 |
Members_ Capital (Tables)
Members’ Capital (Tables) | 6 Months Ended |
Jun. 25, 2022 | |
Members Capital | |
Schedule of Reconciliation of Members' Capital | Schedule of Reconciliation of Members' Capital Balance at December 25, 2021 $ 332,272 Net income for the thirteen-week period ended March 26, 2022 61,047 Member distributions Class A ($16.16 per Class A unit) (11,888 ) Class B ($141.64 per Class B unit) (106,994 ) Balance at March 26, 2022 $ 274,437 Net income for the thirteen-week period ended June 25, 2022 50,714 Member distributions Class A ($9.03 per Class A unit) (6,638 ) Class B ($79.10 per Class B unit) (59,752 ) Balance at June 25, 2022 $ 258,761 Balance at December 26, 2020 $ 200,242 Net income for the thirteen-week period ended March 27, 2021 35,129 Member distributions Class A ($6.32 per Class A unit) (4,646 ) Class B ($55.36 per Class B unit) (41,817 ) Balance at March 27, 2021 $ 188,908 Net income for the thirteen-week period ended June 26, 2021 102,334 Member distributions Class A ($6.49 per Class A unit) (4,777 ) Class B ($56.92 per Class B unit) (42,992 ) Balance at June 26, 2021 $ 243,473 |
Accounting Policies (Details Na
Accounting Policies (Details Narrative) $ in Thousands | Jun. 25, 2022 USD ($) |
Cash and Cash Equivalents, at Carrying Value | $ 76,000 |
Tax and audit related expenses | $ 200 |
National Beef Packing Company, LLC [Member] | |
Equity investment ownership percentage | 15.0729% |
Noncompetition Agreements (Deta
Noncompetition Agreements (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Noncompetition Agreements | ||
Current non-compete | $ 0 | $ 0 |
Long-term non-compete | 301 | 323 |
Total non-compete | $ 301 | $ 323 |
Noncompetition Agreements (De_2
Noncompetition Agreements (Details Narrative) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Noncompetition Agreements | ||
Contractual Obligation | $ 300 | $ 300 |
Employee Compensation Plans (De
Employee Compensation Plans (Details) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Retirement Benefits [Abstract] | ||
Accrued compensation and benefits | $ 879 | $ 707 |
Other liabilities | 7,911 | 7,157 |
Total phantom accrual | $ 8,790 | $ 7,864 |
Employee Compensation Plans (_2
Employee Compensation Plans (Details Narrative) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Accrued compensation and benefits | $ 1,559 | $ 2,106 |
Management Phantom Unit Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Accrued Liabilities, Current | 8,800 | 7,900 |
Cash Incentive And Bonus Plans [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Accrued compensation and benefits | $ 700 | $ 1,400 |
Earnings Per Unit (Details)
Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Class A Units [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income attributable to USPB available to unitholders (numerator) | $ 5,071 | $ 10,233 | $ 11,176 | $ 13,746 |
Weighted average outstanding units (denominator) | 735,385 | 735,385 | 735,385 | 735,385 |
Per unit amount | $ 6.90 | $ 13.92 | $ 15.20 | $ 18.69 |
Class B Units [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Income attributable to USPB available to unitholders (numerator) | $ 45,643 | $ 92,101 | $ 100,585 | $ 123,717 |
Weighted average outstanding units (denominator) | 755,385 | 755,385 | 755,385 | 755,385 |
Per unit amount | $ 60.42 | $ 121.93 | $ 133.16 | $ 163.78 |
Investment in National Beef P_3
Investment in National Beef Packing Company (Details - Investment rollforward) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 25, 2022 | Mar. 26, 2022 | Jun. 26, 2021 | Mar. 27, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Beginning Investment Balance | $ 223,141 | $ 213,290 | $ 146,651 | $ 131,494 | $ 213,290 | $ 131,494 |
Equity in net income | 52,779 | 62,606 | 103,198 | 36,559 | 115,385 | 139,757 |
Distributions | (82,907) | (52,755) | (61,157) | (21,402) | ||
Ending Investment Balance | $ 193,013 | $ 223,141 | $ 188,692 | $ 146,651 | $ 193,013 | $ 188,692 |
Investment in National Beef P_4
Investment in National Beef Packing Company (Details - Summary of operations) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2022 | Jun. 26, 2021 | Jun. 25, 2022 | Jun. 26, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Net sales | $ 2,949,870 | $ 2,948,388 | $ 5,973,624 | $ 5,264,003 |
Costs and expenses: | ||||
Cost of sales | 2,540,322 | 2,210,339 | 5,095,022 | 4,233,893 |
Selling, general, and administrative expenses | 23,849 | 22,052 | 45,220 | 40,917 |
Depreciation and amortization | 29,873 | 28,004 | 59,309 | 55,673 |
Total costs and expenses | 2,594,044 | 2,260,395 | 5,199,551 | 4,330,483 |
Operating income | 355,826 | 687,993 | 774,073 | 933,520 |
Other income (expense): | ||||
Interest income | 40 | 12 | 67 | 98 |
Interest expense | (2,212) | (2,396) | (3,688) | (4,796) |
Income before taxes | 353,654 | 685,609 | 770,452 | 928,822 |
Income tax expense | (1,497) | (952) | (2,940) | (1,616) |
Net income | $ 352,157 | $ 684,657 | $ 767,512 | $ 927,206 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | Jun. 25, 2022 | Dec. 25, 2021 |
Income Tax Disclosure [Abstract] | ||
State income tax payable | $ 1,500 | $ 1,000 |
Long-term Debt and Loan Agree_2
Long-term Debt and Loan Agreements (Details Narrative) - Co Bank [Member] - Revolving Credit Facility [Member] $ in Thousands | 6 Months Ended |
Jun. 25, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Credit line maximum borrowing capacity | $ 1,000 |
Credit line expiration date | Jun. 30, 2025 |
Credit line, remaining borrowing capacity | $ 1,000 |
Members Capital (Details)
Members Capital (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 25, 2022 | Mar. 26, 2022 | Jun. 26, 2021 | Mar. 27, 2021 | |
Beginning balance | $ 274,437 | $ 332,272 | $ 188,908 | $ 200,242 |
Allocation of net income | 50,714 | 61,047 | 102,334 | 35,129 |
Ending balance | 258,761 | 274,437 | 243,473 | 188,908 |
Class A Units [Member] | ||||
Member distributions | (6,638) | (11,888) | (4,777) | (4,646) |
Class B Units [Member] | ||||
Member distributions | $ (59,752) | $ (106,994) | $ (42,992) | $ (41,817) |