Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Dec. 18, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | ADVANCED BIOENERGY, LLC | |
Entity Central Index Key | 1,325,740 | |
Current Fiscal Year End Date | --09-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,410,851 | |
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 18,804 | $ 15,416 |
Accounts receivable: | ||
Trade accounts receivables | 4,039 | 4,492 |
Other receivables | 805 | 584 |
Inventories | 4,334 | 4,530 |
Prepaid expenses | 665 | 712 |
Restricted cash | 1,000 | 1,000 |
Total current assets | 29,647 | 26,734 |
Property and equipment, net | 31,226 | 32,231 |
Other assets | 756 | 1,068 |
Total assets | 61,629 | 60,033 |
Current liabilities: | ||
Accounts payable | 3,531 | 3,634 |
Accrued expenses | 2,221 | 2,243 |
Current portion of long-term debt (stated principal amount of $4,677 and $4,000 at September 30, 2017 and September 30, 2016, respectively) | 4,581 | 3,904 |
Total current liabilities | 10,333 | 9,781 |
Other liabilities | 31 | 40 |
Long-term debt (stated principal amount of $20,000 and $24,000 at September 30, 2017 and September 30, 2016, respectively) | 19,785 | 23,689 |
Total liabilities | 30,149 | 33,510 |
Members’ equity: | ||
Members’ capital, no par value, 25,410,851 units issued and outstanding | 44,826 | 48,638 |
Accumulated deficit | (13,346) | (22,115) |
Total members’ equity | 31,480 | 26,523 |
Total liabilities and members’ equity | $ 61,629 | $ 60,033 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Current portion of long-term debt (stated principal amount) | $ 4,677 | $ 4,000 |
Principal amount of long-term debt | $ 20,000 | $ 24,000 |
Members' capital, par value | ||
Members' capital, units issued | 25,410,851 | 25,410,851 |
Members' capital, units outstanding | 25,410,851 | 25,410,851 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | |||
Ethanol and related products | $ 143,532 | $ 144,695 | $ 151,706 |
Other | 183 | 411 | |
Total net sales | 143,532 | 144,878 | 152,117 |
Cost of goods sold | 130,228 | 145,367 | 151,511 |
Gross profit (loss) | 13,304 | (489) | 606 |
Selling, general and administrative | 3,798 | 3,267 | 2,999 |
Asset impairment | 1,584 | ||
Operating income (loss) | 9,506 | (5,340) | (2,393) |
Other income | 132 | 383 | 434 |
Other expense | (73) | (7) | |
Interest income | 11 | 51 | 22 |
Interest expense | (880) | (914) | (147) |
Net income (loss) | $ 8,769 | $ (5,893) | $ (2,091) |
Weighted average units outstanding—basic & diluted | 25,411 | 25,411 | 25,411 |
Net income (loss) per unit—basic & diluted | $ 0.35 | $ (0.23) | $ (0.08) |
Cash distributions declared per unit | $ 0.15 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Members' Equity - USD ($) $ in Thousands | Total | Member's Capital [Member] | Accumulated Deficit [Member] |
Beginning Balance at Sep. 30, 2014 | $ 34,507 | $ 48,638 | $ (14,131) |
Beginning Balance, shares at Sep. 30, 2014 | 25,410,851 | ||
Net income (loss) | (2,091) | (2,091) | |
Ending Balance at Sep. 30, 2015 | 32,416 | $ 48,638 | (16,222) |
Ending Balance, shares at Sep. 30, 2015 | 25,410,851 | ||
Net income (loss) | (5,893) | (5,893) | |
Ending Balance at Sep. 30, 2016 | $ 26,523 | $ 48,638 | (22,115) |
Ending Balance, shares at Sep. 30, 2016 | 25,410,851 | 25,410,851 | |
Distribution to members | $ (3,812) | $ (3,812) | |
Net income (loss) | 8,769 | 8,769 | |
Ending Balance at Sep. 30, 2017 | $ 31,480 | $ 44,826 | $ (13,346) |
Ending Balance, shares at Sep. 30, 2017 | 25,410,851 | 25,410,851 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 8,769 | $ (5,893) | $ (2,091) |
Adjustments to reconcile net income (loss) to operating activities cash flows: | |||
Depreciation | 3,820 | 9,579 | 11,109 |
Amortization of deferred financing costs | 95 | 29 | 89 |
Amortization of deferred revenue and rent | (9) | 19 | (29) |
Amortization of additional carrying value of debt | (699) | (1,466) | |
(Gain) on troubled debt restructuring | (322) | (325) | |
Loss on impairment and disposal of assets | 102 | 1,593 | |
Change in working capital components: | |||
Trade accounts receivable | 453 | (502) | 162 |
Other receivable | (221) | (467) | (2) |
Inventories | 196 | 91 | (575) |
Prepaid expenses | 47 | 31 | (61) |
Accounts payable | (44) | (1,681) | 1,110 |
Accrued expenses | (22) | (55) | (916) |
Net cash provided by operating activities | 13,186 | 1,723 | 7,005 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (2,975) | (2,579) | (2,614) |
Proceeds from the sale of assets, net of transaction costs | 47 | ||
Change in other assets | 312 | 116 | 67 |
Change in restricted cash | 3,612 | 1,333 | |
Net cash provided by (used in) investing activities | (2,663) | 1,196 | (1,214) |
Cash flows from financing activities: | |||
Payments on debt | (4,425) | (34,069) | (11,207) |
Proceeds from debt | 1,102 | 30,000 | |
Distribution to members | (3,812) | ||
Net cash (used in) financing activities | (7,135) | (4,069) | (11,207) |
Net increase (decrease) in cash and cash equivalents | 3,388 | (1,150) | (5,416) |
Beginning cash and cash equivalents | 15,416 | 16,566 | 21,982 |
Ending cash and cash equivalents | 18,804 | 15,416 | 16,566 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 805 | 934 | 1,582 |
Supplemental disclosure of non-cash financing and investing activities: | |||
Reclassification of property and equipment to other assets | 200 | ||
Accounts payable related to fixed assets | $ 25 | $ 84 | $ 6 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ABE Fairmont, LLC (“ABE Fairmont”) and ABE South Dakota, LLC, (“ABE South Dakota”). Substantially all of the assets of ABE Fairmont were sold in December 2012 and the subsidiary is now inactive. Advanced BioEnergy, LLC is organized as a Delaware limited liability company. Members’ liability is limited pursuant to the Delaware Limited Liability Company Act. The Company’s operating agreement provides for the term of the entity to last until a Dissolution Event occurs as defined in the operating agreement; there is no exact Dissolution Event or date specified. The Company currently operates two ethanol production facilities in Aberdeen and Huron, South Dakota with a combined production capacity of 80 million gallons per year. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash balances are maintained in bank depositories and periodically exceed federally insured limits. The Company has not experienced losses in these accounts. Restricted cash at September 30, 2017 and 2016 included a deposit for a rail car sublease Fair Value of Financial Instruments Financial instruments include cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued expenses, and long-term debt. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate that management believes would currently be available to the Company for similar debt, taking into account the current credit risk of the Company and other market factors. Based on these factors, the fair value of the long-term debt is currently estimated at carrying value. Excluding cash and cash equivalents, the fair value of the other financial instruments are estimated to approximate carrying value due to the short-term nature of these instruments, and are considered to be Level 3 inputs. Fair Value Measurements In determining fair value of its derivative financial instruments, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often uses certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable inputs. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three fair value hierarchy 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. Commodity futures and exchange-traded commodity options contracts 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 Board of Trade (“CBOT”) and New York Mercantile Exchange (“NYMEX”) markets. There were no material balances of financial assets or financial liabilities, including derivative financial instruments, measured at the approximate fair value at September 30, 2017 or 2016. Deferred Financing Costs Deferred financing costs are recorded at cost and include expenditures related to secure debt financing. Deferred financing costs are shown as contra debt and are being amortized into interest expense over the term of the agreement using the straight-line method, which approximates the effective interest method. Receivables Credit sales are made to a relatively small number of customers with no collateral required. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and considering a customer’s financial condition, credit history and current economic conditions. Receivables are written off if deemed uncollectible. Recoveries of receivables previously written off are recorded when received. There was no allowance for doubtful accounts recorded at September 30, 2017 or September 30, 2016. Inventories Ethanol inventory, raw materials, work-in-process and parts inventory are valued using methods that approximate the lower of cost (first-in, first-out) or net realizable value (“NRV”). Distillers grains and related products are stated at net realizable value. In the valuation of inventories and purchase and sale commitments, the Company determines NRV by estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Property and Equipment Property and equipment is carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives: Office equipment 3-7 Years Other equipment 1-5 Years Process equipment 15 Years Building 40 Years During the fourth quarter of fiscal 2016, the Company decided to permanently cease operations at its smaller Aberdeen plant. Accordingly, the Company impaired the value of this asset to an estimated salvage value of $200,000 and recorded an impairment of approximately $1.6 million during the fourth quarter of fiscal 2016. In fiscal 2017, the Company incurred an additional expenses of $387,000 related to the demolition and other costs, which is included in selling, general and administrative expenses. Maintenance and repairs are charged to expense as incurred; major improvements and betterments are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount on the asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from operations are less than the carrying value of the asset group. An impairment loss is measured by the amount by which the carrying value of the asset group exceeds the estimated fair value on that date. Commodity Sales and Purchase Contracts, Derivative Instruments The Company enters into forward sales contracts for ethanol, distillers and corn oil, and purchase contracts for corn and natural gas. The Company classifies these sales and purchase contracts as normal sales and purchase contracts and accordingly these contracts are not marked to market. These contracts provide for the sale or purchase of an item other than a financial instrument or derivative instrument that will be delivered in quantities expected to be sold or used over a reasonable period in the normal course of business. On occasion, the Company has entered into derivative contracts to hedge the Company’s exposure to price risk related to forecasted corn purchases and forecasted ethanol sales. Accounting for derivative contracts requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (a) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, (b) a hedge of the exposure to variable cash flows of a forecasted transaction, or (c) a hedge of the foreign currency exposure of a net investment in a foreign operation, an unrecognized firm commitment, an available-for-sale security, or a foreign-currency-denominated forecasted transaction. Although the Company believes its derivative positions are economic hedges, none have been designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair value, with changes in fair value recognized in current period earnings. In addition, certain derivative financial instruments that meet the criteria for derivative accounting treatment also qualify for a scope exception to derivative accounting, as they are considered normal purchases and sales. The availability of this exception is based on the assumption that the Company has the ability and it is probable that it will deliver or take delivery of the underlying item. Derivatives that are considered to be normal purchases and sales are exempt from derivative accounting treatment, and are accounted for under accrual accounting. Revenue Recognition Ethanol revenue is recognized when product title and all risk of ownership is transferred to the customer as specified in the contractual agreements with the marketers. Under the terms of the marketing agreements, revenue is recognized when product is loaded into rail cars or trucks for shipment. Revenue from the sale of co-products is recorded when title and all risk of ownership transfers to customers. Co-products are normally shipped free on board (“FOB”) shipping point. In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, commissions due to the marketers are deducted from the gross sale price at the time of payment. Interest income is recognized as earned. Unit Based Compensation The Company uses the estimated market value at the time the units are granted to value those units granted to officers and directors. The Company records compensation cost on the straight line method over the vesting period for service based awards. If the units vest upon achievement of a certain milestone, the Company recognizes the expense in the period in which the goal was met. Shipping Costs Shipping costs are not separately identified under the contract with the marketer and therefore are reflected net in sales. Income (Loss) Per Unit Basic and diluted income (loss) per unit is computed using the weighted-average number of vested units outstanding during the period. Unit warrants are considered unit equivalents and are considered in the diluted income-per-unit computation. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the related business nature and expected financial results, the Company’s plants are aggregated into one reporting segment. Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Income Taxes The Company has elected to be treated as a partnership for tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company’s federal income tax returns are open and subject to examination from the 2014 tax return year and forward. Various state income tax returns are generally open from the 2013 and later tax return years based on individual state statute of limitations. Management has evaluated the Company’s tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Recent Accounting Pronouncements Effective October 1, 2015, the Company adopted the amended guidance in ASC 835-30, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Effective October 1, 2018, the Company will adopt the amended guidance in ASC 606, Revenue from Contracts with Customers, which requires revenue recognition to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated standard permits either the retrospective with cumulative effect transition method. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. Effective October 1, 2018, the Company will adopt the amended guidance in ASC 230, Statement of Cash Flows, which amends existing guidance to require that the Statement of Cash Flows now include restricted cash and restricted cash equivalents along with cash and cash equivalents when reconciling beginning and end-of-period amounts. Entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the Statement of Cash Flows. The amended standard is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. Because our restricted cash as of September 30, 2017 was $1.0 million, we do not expect this standard to have a significant effect on the presentation of our Statement of Cash Flows. In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In order to meet that objective, the new standard requires recognition of the assets and liabilities that arise from leases. Accordingly, a lessee will recognize a right-of-use (ROU) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The lease liability will initially be measured at the present value of the future minimum lease payments over the lease term. The ROU asset will initially be measured as the sum of the initial lease liability, initial costs directly attributable to negotiating and arranging the lease, and payments made by a lessee to the lessor at or before the lease commencement date less any lease incentives received. Lessees can make an accounting policy election by class of underlying asset not to recognize a ROU asset and corresponding lease liability for leases with a term of 12 months or less. Accounting by lessors will remain largely unchanged from current U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that companies may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases, leveraged leases, and amounts previously recognized in accordance with the business combinations guidance for leases. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We have not completed the evaluation of the effect this standard will have on our financial statements, but we believe that adopting this standard may have a material impact on our balance sheet. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories A summary of inventories is as follows (in thousands): September 30, 2017 September 30, 2016 Chemicals $ 939 $ 814 Work in process 646 705 Ethanol 788 1,180 Distillers grain 157 45 Supplies and parts 1,804 1,786 Total $ 4,334 $ 4,530 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment A summary of property and equipment is as follows (in thousands): September 30, 2017 September 30, 2016 Land $ 1,811 $ 1,811 Buildings 8,128 8,097 Process equipment 109,006 105,713 Other equipment 147 - Office equipment 1,770 1,600 Construction in process 580 1,571 121,442 118,792 Accumulated depreciation (90,216 ) (86,561 ) Property and equipment, net $ 31,226 $ 32,231 |
Debt
Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt A summary of debt is as follows (in thousands, except percentages): September 30, 2017 Interest Rate September 30, 2017 September 30, 2016 ABE South Dakota: Senior debt principal—variable 4.73 % 24,677 28,000 Deferred financing costs N/A (311 ) (407 ) Total outstanding $ 24,366 $ 27,593 The estimated maturities of debt at September 30, 2017 are as follows (in thousands): Senior Debt Principal Deferred Financing Costs Total 2018 $ 4,677 $ (96 ) $ 4,581 2019 4,000 (96 ) 3,904 2020 4,000 (95 ) 3,905 2021 12,000 (24 ) 11,976 Total debt $ 24,677 $ (311 ) $ 24,366 2015 Senior Credit Agreement for the South Dakota Plants On December 29, 2015, ABE South Dakota entered into a Master Credit Agreement (“2015 Credit Agreement”) with AgCountry Farm Credit Services, PCA as lender, (“AgCountry”) to refinance its existing 2010 Senior Credit Agreement. On December 29, 2015, the Company also entered into (i) a First Supplement to the 2015 Credit Agreement covering a $10.0 million Revolving Term Facility and (ii) a Second Supplemental covering a $20.0 million Term Loan. The transaction funded on December 30, 2015. The $20.0 million Term Loan has a variable interest rate (“Variable Rate”) equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. The applicable LIBOR interest rate at September 30, 2017 was 1.23%. Beginning April 1, 2016, the Company began making quarterly principal payments of $1.0 million, plus accrued interest, on the Term Loan. The Term Loan will be fully amortized over five years with the final payment on January 1, 2021. The Company may elect one or more fixed or adjustable interest rates, rather than the Variable Rate, based on AgCountry’s cost of funds at the time of the election, plus the Margin. Any election must apply to $1.0 million or more owing on the Term Loan. At September 30, 2017, the outstanding balance on the Term Loan was $14.0 million. The $10.0 Revolving Term Facility also has a Variable Rate equal to the one-month LIBOR rate plus an initial Margin of 350 basis points. Borrowings under the Revolving Term Facility may be advanced, repaid and re-borrowed during the term. The Company will make quarterly interest payments on the Revolving Term Facility, with the full principal amount outstanding due on January 1, 2021. Under the Revolving Term Facility, the Company is required to pay unused commitment fees of 50 basis points. The Margin will (i) decrease to 3.25% when the aggregate principal balance of all outstanding loans and the unfunded commitment level is $20.0 million or less, and (ii) decrease to 3.00% when this amount is $15.0 million or less. ABE South Dakota, LLC also entered into a Security Agreement with AgCountry under which borrowings under the 2015 Credit Agreement are secured by substantially all of ABE South Dakota’s assets. AgCountry holds a first priority security interest and mortgage in all inventory, accounts receivable, intangibles, equipment, fixtures, buildings, and a first mortgage in land owned or leased by ABE South Dakota. The 2015 Credit Agreement also included financial and non-financial covenants that limit distributions and debt and require minimum working capital, owner’s equity, current ratio, debt to EBITDA ratio, and fixed charge coverage ratios. Those covenants, as amended, include the following: • ABE South Dakota has a minimum working capital requirement of $10.0 million beginning at loan closing, increasing to $12.75 million at September 30, 2016 and thereafter. Working capital is calculated as (i) (a) current assets plus (b) the amount available under the Revolving Term Facility, less (ii) current liabilities, measured quarterly. • ABE South Dakota’s owner’s equity ratio was the ratio of (i) net worth divided by (ii) total assets. This ratio was to be measured annually at fiscal year-end and would have increased by 2% each fiscal year, from 40% at September 30, 2015, until a 50% ratio was achieved and maintained This covenant was eliminated by the First Amendment (as defined below). • ABE South Dakota must maintain a ratio of current assets to current liabilities of not less than 1.2 to 1.0. • ABE South Dakota debt to EBITDA ratio must be less than 4.00:1.00. Debt is defined as total interest bearing debt, while EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. The debt to EBITDA ratio will be measured quarterly, but tested annually at each fiscal year end. • ABE South Dakota’s minimum fixed charge coverage ratio is 1.15:1.00 and is measured quarterly, but tested annually at each fiscal year end. The fixed charge coverage ratio is calculated by dividing EBITDA by the sum of scheduled payments of principal and interest, capital expenditures, any cash taxes, and distributions. When ABE South Dakota has achieved reached and maintained an owners’ equity ratio of 60.0% and working capital of $15.0 million, then the minimum fixed charge coverage ratio requirement will be reduced to 1.00:1.00. If subsequently the owners’ equity ratio declines below 60.0%, or working capital declines below $15.0 million, then the 1.15:1.00 minimum fixed charge ratio covenant will be reinstated. • ABE South Dakota is limited to annual capital expenditures of $2.0 million without prior consent of AgCountry, and is limited from incurring additional debt over certain amounts without prior approval, and making additional investments without prior approval of AgCountry. ABE South Dakota is also prohibited from making member distributions in excess of 40% of pre-tax net income in a given year without the prior consent of Ag Country. When ABE South Dakota achieves and maintains owners’ equity ratio of 60.0% and working capital of $15.0 million, then it may pay member dividends of 100.0% of pre-tax net income. If the owner’s equity ratio declines below 60.0%, or working capital declines below $15.0 million, then dividends will be restricted until ABE South Dakota regains compliance. ABE South Dakota must meet all loan covenants before and after any distribution. 2016 Term Loan On September 28, 2016, ABE South Dakota entered into the Third Supplement to the Master Credit Agreement (“2016 Term Loan”) with AgCountry to finance the corn oil extraction system at the Huron plant. The total loan commitment for 2016 Term Loan was $1.7 million, and the loan has a variable interest rate equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. Beginning January 1, 2017, the Company began making quarterly payments of accrued interest on the 2016 Term Loan. Beginning April 1, 2017, the Company began making quarterly principal payments of $212,500 on the 2016 Term Loan. A total of $1.1 million of the $1.7 million commitment was drawn from this loan. As of September 30, 2017 the balance of the 2016 Term Loan was $0.7 million. Amendment and Waivers to 2015 Credit Agreement On September 28, 2016, ABE South Dakota entered into a Limited Waiver and First Amendment to Master Credit Agreement (“First Amendment”) to (i) eliminate the Owner’s Equity Ratio Covenant, (ii) temporarily increase the Capital Expenditures Covenant to $3.0 million for fiscal 2016 to finance the corn oil extraction system at the Huron plant, and (iii) waive other obligations related to the post closing agreement. On November 19, 2016, ABE South Dakota received a waiver to the 2015 Credit Agreement from AgCountry that waived certain Events of Default related to the Working Capital requirement and the Total Outstanding Debt to EBITDA Ratio at September 30, 2016. On October 16, 2017, ABE South Dakota received a waiver to the 2015 Credit Agreement from AgCountry that waived the Event of Default related to the Capital Expenditure Covenant for fiscal 2017. The Capital Expenditure Covenant for fiscal 2016 was increased to $3.0 million due to the addition of corn oil extraction system at Huron. However, a portion of the capital expenditure cost was incurred in fiscal 2017, so an additional waiver was granted for this period. 2010 Senior Credit Agreement ABE South Dakota entered into an Amended and Restated Senior Credit Agreement (the “2010 Senior Credit Agreement”), effective as of June 18, 2010, and amended on December 9, 2011, which was accounted for under troubled debt restructuring rules. The 2010 Senior Credit Agreement was executed among ABE South Dakota, the lenders from time to time party thereto, and an Administrative Agent and Collateral Agent. The 2010 Senior Credit Agreement converted the outstanding principal amount of the loans and certain other amounts under interest rate protection agreements to a senior term loan. The interest accrued on outstanding term and working capital loans under the previous credit agreement were reduced to zero. ABE South Dakota agreed to pay a $3.0 million restructuring fee to the lender due at the earlier of March 31, 2016 and the date on which the loans are repaid in full. ABE South Dakota recorded the restructuring fee as non-interest bearing debt on its consolidated balance sheets. See “Additional Carrying Value of Restructured Debt” below. The principal amount of the term loan facility was payable in quarterly payments of $750,000, with the remaining principal amount fully due and payable on March 31, 2016. During the year ended September 30, 2015, ABE South Dakota made debt sweep payments totaling $8.0 million in addition to its scheduled principal payments of $3.0 million. ABE South Dakota was also obligated to pay the remaining $68,750 installment of a $275,000 waiver fee to the senior lenders on March 31, 2016. The Company recorded this fee as non-interest bearing debt on its consolidated balance sheet and is included in the Restructuring Fee category in the above debt tables net of the unamortized portion. ABE South Dakota had the option to select the interest rate on the senior term loan between base rate and euro-dollar rates for maturities of one to six months. Base rate loans bear interest at the administrative agent’s base rate plus an applicable margin of 3.0%. Euro-dollar loans bear interest at LIBOR plus the applicable margin of 4.0%. As of September 30, 2015, ABE South Dakota had selected the LIBOR plus 4.0% rate for a period of one month. ABE South Dakota’s obligations under the 2010 Senior Credit Agreement were secured by a first-priority security interest in the equity and assets of ABE South Dakota. In connection with closing, ABE South Dakota paid in full all amounts outstanding under the 2010 Senior Credit Agreement, including $29.0 million of principal, accrued interest, the $3.0 restructuring fee, and the waiver fee of $68,750, and all security interests of the prior lenders were extinguished. Additional Carrying Value of Restructured Debt Since the future maximum undiscounted cash payments on the 2010 Senior Credit Agreement (including principal, interest and the restructuring fee) exceeded the adjusted carrying value at the time of the June 2010 restructuring, no gain for the forgiven interest was recorded, the carrying value was not adjusted and the modification of terms was accounted for on a prospective basis, via a new effective interest calculation, amortized over the life of the note, offsetting interest expense. As a result of the final payoff of the 2010 Credit Agreement in December 2015, the carrying value of the debt exceeded the scheduled principal and interest payments remaining over the term of the loan. As a result, a gain of $0.3 million was recognized in fiscal 2016. ABE Letter of Credit In connection with the execution of a rail car sublease, the Company, as parent of ABE South Dakota agreed to post a $2.5 million irrevocable and non-transferable standby letter of credit in May 2012 for the benefit of its ethanol marketer as security for the payment obligations of ABE South Dakota. The Company deposited $2.5 million in a restricted account as collateral for this letter of credit and classified it as restricted cash. Effective May 15, 2014, the letter of credit and corresponding deposit of collateral was decreased by $1.0 million in conjunction with an amendment to the rail car sublease. Effective June 27, 2016, the letter of credit and corresponding deposit of collateral was decreased by $0.5 million in conjunction with an amendment to the rail car sublease. |
Members' Equity
Members' Equity | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Members' Equity | 5. Members’ Equity Unit Appreciation Rights As of September 30, 2017, the Company had 312,500 Unit Appreciation Rights (“UAR”) fully vested and outstanding. At the time of their respective grants, (i) 200,000 of the UARs had an exercise price of $1.15 per unit, (ii) 12,500 of the UARs had an exercise price of $1.00 per unit, and (iii) 100,000 of the UARs had an exercise price of $1.24 per unit. As a result of cash distributions paid to the Company’s unit holders subsequent to the dates of the respective UAR grants, as of September 30, 2017, (i) the exercise price of the 200,000 January 2013 UARs has been reduced to $0.21 per unit, (ii) the exercise price of the 12,500 January 2015 UARs has been reduced to $0.85 and (iii) the exercise price of the 100,000 January 2016 UARs is $1.09 per unit. The exercise price of each of these awards will be reduced by any future distributions paid to the Company’s unit holders. The units are contingently exercisable only under certain limited circumstances; therefore, the Company is not recognizing compensation expense related to the awards until these defined circumstances are probable of occurring. Board Representation and Voting Agreement The Company, certain directors of the Company, South Dakota Wheat Growers Association, entities associated with Clean Energy Capital, LLC (“CEC”) (and predecessor entities) and entities associated with Thomas H. Lee Partners, L.P. (“THL”) (and predecessor entities), have each executed a voting agreement (the “Voting Agreement”). The Voting Agreement requires the parties to (a) nominate for election to the Board two designees of THL and the Chief Executive Officer of the Company, (b) recommend to the members the election of each of the designees, (c) vote all units of the Company they beneficially own or otherwise control to elect each of the designees to the Board, (d) not take any action that would result in the removal of any of the designees from the Board or to increase the size of the Board to more than nine members, and (e) not grant a proxy with respect to any units that is inconsistent with the parties’ obligations under the Voting Agreement. At December 1, 2017, the parties to the Voting Agreement held in the aggregate approximately 39.6% of the outstanding units of the Company. |
One-Time Termination Benefit
One-Time Termination Benefit | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
One-Time Termination Benefit | 6. One-Time Termination Benefit Subsequent to the sale of its Fairmont facility in fiscal 2013, the Company implemented a cost reduction program reducing its headquarters staff to align its staffing with the remaining on-going operations. In connection with this cost reduction program, the Company recognized expense of $0.4 million in fiscal 2015. |
Lease Commitments and Contingen
Lease Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Lease Commitments and Contingencies | 7. Lease Commitments and Contingencies Lease Commitments The Company leases ethanol and distillers rail cars, office and other equipment and an office facility under operating lease agreements with the following approximate future minimum rental commitments through 2022 for the years ended September 30 (in thousands): Minimum Rental Commitments 2018 $ 3,612 2019 2,392 2020 1,008 2021 910 2022 528 Thereafter 128 $ 8,578 The Company recognized rent expense related to the above leases of approximately $4.5 million, $5.0 million, and $5.1 million for the years ended September 30, 2017, 2016, and 2015, respectively. |
Major Customers
Major Customers | 12 Months Ended |
Sep. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Major Customers | 8. Major Customers ABE South Dakota has ethanol marketing agreements with NGL Energy Partners, LP (“NGL”)(formerly Gavilon, LLC), a diversified energy business. These ethanol marketing agreements require that we sell to NGL all of the denatured fuel-grade ethanol produced at the South Dakota plants. The term of these ethanol marketing agreements expires on June 30, 2019. ABE South Dakota is party to a co-product marketing agreement with Dakotaland Feeds, LLC (“Dakotaland Feeds”), whereby Dakotaland Feeds markets the local sale of wet distillers’ grains produced at the ABE South Dakota Huron plant and modified distillers’ produced at the Aberdeen plant to third parties for an agreed upon commission. ABE South Dakota has a marketing agreement with Gavilon to market the dried distillers’ grains from the Aberdeen and Huron plants through July 31, 2018. Sales and receivables from the Company’s major customers were as follows (in thousands): September 30, 2017 September 30, 2016 September 30, 2015 NGL Energy—Ethanol Twelve months revenues $ 118,000 $ 116,455 $ 119,689 Receivable balance at period end 3,116 3,642 3,272 Gavilon—Ethanol, Corn Oil & Distillers Grains Twelve months revenues $ 13,786 $ 15,269 $ 17,685 Receivable balance at period end 326 323 384 Dakotaland Feeds—Distillers Grains Twelve months revenues $ 10,663 $ 11,686 $ 11,325 Receivable balance at period end 575 470 206 |
Risk Management
Risk Management | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Risk Management | 9. Risk Management The Company is exposed to a variety of market risks, including the effects of changes in commodity prices and interest rates. These financial exposures are monitored and managed by the Company as an integral part of its overall risk management program. The Company’s risk management program seeks to reduce the potentially adverse effects that the volatility of these markets may have on its current and future operating results. To reduce these effects, the Company generally attempts to fix corn purchase prices and related sale prices of ethanol, distillers’ grains and corn oil, with forward purchase and sale contracts to lock in future operating margins. In addition to entering into contracts to purchase 0.6 million bushels of corn in which the basis or futures price was not locked, the Company had entered into the following fixed price forward sales and purchase contracts at September 30, 2017: Commodity Type Quantity Amount (in 000’s) Period Through Ethanol Sale 594,000 gallons $ 794 October 31, 2017 Distillers grains Sale 19,418 tons 1,564 November 30, 2017 Unrealized gains and losses on forward contracts, in which delivery has not occurred, are deemed “normal purchases and normal sales,” and, therefore are not marked to market in the financial statements. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure Abstract | |
Employee Benefit Plan | 10. Employee Benefit Plan The Company sponsors a 401(k) plan for eligible employees. Eligible employees may make elective deferral contributions to the plan. The Company’s matching contribution is 100% of the employee’s elective deferrals, not to exceed 5% of the employee’s eligible wages. The Company contributed approximately $165,000, $160,000, and $163,000, to the plan in the years ended September 30, 2017, 2016, and 2015, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions Grain Purchases from South Dakota Wheat Growers Association (SDWG) The Company purchased $93.8 million, $104.9 million and $101.1 million of corn from SDWG in the years ended September 30, 2017, 2016, and 2015 pursuant to a grain origination agreement, which covers all corn purchases in South Dakota. SDWG owns approximately 5% of the Company’s outstanding units. As of September 30, 2017 and 2016, the Company had outstanding amounts payable to SDWG of approximately $2.2 million and $2.0 million, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 12. Quarterly Financial Data (Unaudited) The following table presents summarized quarterly financial data for the years ended September 30, 2017 and 2016. Dollars in thousands, except per unit amounts: Year Ended September 30, 2017 (1) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total net sales $ 38,508 $ 33,786 $ 33,819 $ 37,419 Gross profit 7,357 950 1,248 3,749 Net income 6,037 88 357 2,287 Basic & diluted income per common unit $ 0.24 $ 0.00 $ 0.01 $ 0.09 Year Ended September 30, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total net sales $ 37,263 $ 36,102 $ 37,052 $ 34,461 Gross profit (loss) (682 ) (2,223 ) 461 1,955 Net (loss) (1,178 ) (3,433 ) (577 ) (705 ) Basic & diluted (loss) per common unit $ (0.05 ) $ (0.14 ) $ (0.02 ) $ (0.03 ) (1) Certain expenses have been reclassified for year-end presentation to be consistent with the classifications that management has adopted. As such, certain amounts have been reclassified for the quarterly periods presented. |
Parent Financial Statements
Parent Financial Statements | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Financial Statements | 13. Parent Financial Statements The following financial information represents the unconsolidated financial statements of Advanced BioEnergy, LLC (“ABE”) as of September 30, 2017 and 2016, and for the years ended September 30, 2017, 2016 and 2015. ABE’s ability to receive distributions from ABE South Dakota is based on the terms and conditions in the ABE South Dakota credit agreement. Under its current credit agreement, ABE South Dakota is allowed to make equity distributions of up to 40% of its net income, and may distribute up to 100% of its net income if it achieves and maintains an owner’s equity ratio of at least 60% and working capital of at least $15 million. There were no distributions from ABE South Dakota during the last three fiscal years. Advanced BioEnergy, LLC (Unconsolidated) Balance Sheets September 30, September 30, 2017 2016 (Dollars in thousands) ASSETS Current assets: Cash and cash equivalents $ 725 $ 5,176 Restricted cash 1,000 1,000 Total current assets 1,725 6,176 Property and equipment, net 54 118 Other assets: Investment in ABE South Dakota 29,862 20,420 Other assets 32 32 Total assets $ 31,673 $ 26,746 LIABILITIES AND MEMBERS’ EQUITY Liabilities: Accounts payable - 5 Accrued expenses 162 179 Other liabilities 31 39 Total liabilities 193 223 Members’ equity: Members’ capital, no par value, 25,410,851 units issued and outstanding 44,826 48,638 Accumulated deficit (13,346 ) (22,115 ) Total members’ equity 31,480 26,523 Total liabilities and members’ equity $ 31,673 $ 26,746 Advanced BioEnergy, LLC (Unconsolidated) Statements of Operations Years Ended September 30, September 30, September 30, 2017 2016 2015 (Dollars in thousands) Equity in earnings (losses) of consolidated subsidiary $ 9,442 $ (5,296 ) $ (1,647 ) Selling, general and administrative expenses . (684 ) (640 ) (486 ) Operating income (loss) 8,758 (5,936 ) (2,133 ) Other income (expense) - (6 ) 20 Interest income 11 49 22 Net Income (loss) $ 8,769 $ (5,893 ) $ (2,091 ) Advanced BioEnergy, LLC (Unconsolidated) Statements of Cash Flows Years Ended September 30, September 30, September 30, 2017 2016 2015 (Dollars in thousands) Cash flows from operating activities: Net income (loss) $ 8,769 $ (5,893 ) $ (2,091 ) Adjustments to reconcile net income (loss) to operating activities cash flows: Depreciation 64 102 129 Equity in (earnings) losses of consolidated subsidiaries (9,442 ) 5,296 1,647 Gain on disposal of fixed assets - (15 ) - Amortization of deferred revenue and rent (8 ) 19 (29 ) Change in working capital components: Other receivable - 6 (6 ) Prepaid expenses - - 5 Accounts payable (5 ) 5 - Accrued expenses (17 ) (116 ) (485 ) Net cash (used in) operating activities (639 ) (596 ) (830 ) Cash flows from investing activities: Purchase of property and equipment - (41 ) - Proceeds from disposal of fixed assets - 47 - Decrease in restricted cash - 500 - Net cash provided by investing activities - 506 - Cash flows from financing activities: Distribution to subsidiary - (3,000 ) - Distribution from subsidiary - 108 - Distribution to members (3,812 ) - - Net cash (used in) financing activities (3,812 ) (2,892 ) - Net (decrease) in cash and cash equivalents (4,451 ) (2,982 ) (830 ) Beginning cash and cash equivalents 5,176 8,158 8,988 Ending cash and cash equivalents $ 725 $ 5,176 $ 8,158 |
Organization and Significant 20
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company’s cash balances are maintained in bank depositories and periodically exceed federally insured limits. The Company has not experienced losses in these accounts. Restricted cash at September 30, 2017 and 2016 included a deposit for a rail car sublease |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments include cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued expenses, and long-term debt. The fair value of the long-term debt is estimated based on level 3 inputs based on the current anticipated interest rate that management believes would currently be available to the Company for similar debt, taking into account the current credit risk of the Company and other market factors. Based on these factors, the fair value of the long-term debt is currently estimated at carrying value. Excluding cash and cash equivalents, the fair value of the other financial instruments are estimated to approximate carrying value due to the short-term nature of these instruments, and are considered to be Level 3 inputs. |
Fair Value Measurements | Fair Value Measurements In determining fair value of its derivative financial instruments, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often uses certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable inputs. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three fair value hierarchy 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. Commodity futures and exchange-traded commodity options contracts 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 Board of Trade (“CBOT”) and New York Mercantile Exchange (“NYMEX”) markets. There were no material balances of financial assets or financial liabilities, including derivative financial instruments, measured at the approximate fair value at September 30, 2017 or 2016. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are recorded at cost and include expenditures related to secure debt financing. Deferred financing costs are shown as contra debt and are being amortized into interest expense over the term of the agreement using the straight-line method, which approximates the effective interest method. |
Receivables | Receivables Credit sales are made to a relatively small number of customers with no collateral required. Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by regularly evaluating individual receivables and considering a customer’s financial condition, credit history and current economic conditions. Receivables are written off if deemed uncollectible. Recoveries of receivables previously written off are recorded when received. There was no allowance for doubtful accounts recorded at September 30, 2017 or September 30, 2016. |
Inventories | Inventories Ethanol inventory, raw materials, work-in-process and parts inventory are valued using methods that approximate the lower of cost (first-in, first-out) or net realizable value (“NRV”). Distillers grains and related products are stated at net realizable value. In the valuation of inventories and purchase and sale commitments, the Company determines NRV by estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives: Office equipment 3-7 Years Other equipment 1-5 Years Process equipment 15 Years Building 40 Years During the fourth quarter of fiscal 2016, the Company decided to permanently cease operations at its smaller Aberdeen plant. Accordingly, the Company impaired the value of this asset to an estimated salvage value of $200,000 and recorded an impairment of approximately $1.6 million during the fourth quarter of fiscal 2016. In fiscal 2017, the Company incurred an additional expenses of $387,000 related to the demolition and other costs, which is included in selling, general and administrative expenses. Maintenance and repairs are charged to expense as incurred; major improvements and betterments are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount on the asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from operations are less than the carrying value of the asset group. An impairment loss is measured by the amount by which the carrying value of the asset group exceeds the estimated fair value on that date. |
Commodity Sales and Purchase Contracts, Derivative Instruments | Commodity Sales and Purchase Contracts, Derivative Instruments The Company enters into forward sales contracts for ethanol, distillers and corn oil, and purchase contracts for corn and natural gas. The Company classifies these sales and purchase contracts as normal sales and purchase contracts and accordingly these contracts are not marked to market. These contracts provide for the sale or purchase of an item other than a financial instrument or derivative instrument that will be delivered in quantities expected to be sold or used over a reasonable period in the normal course of business. On occasion, the Company has entered into derivative contracts to hedge the Company’s exposure to price risk related to forecasted corn purchases and forecasted ethanol sales. Accounting for derivative contracts requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (a) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, (b) a hedge of the exposure to variable cash flows of a forecasted transaction, or (c) a hedge of the foreign currency exposure of a net investment in a foreign operation, an unrecognized firm commitment, an available-for-sale security, or a foreign-currency-denominated forecasted transaction. Although the Company believes its derivative positions are economic hedges, none have been designated as a hedge for accounting purposes and derivative positions are recorded on the balance sheet at their fair value, with changes in fair value recognized in current period earnings. In addition, certain derivative financial instruments that meet the criteria for derivative accounting treatment also qualify for a scope exception to derivative accounting, as they are considered normal purchases and sales. The availability of this exception is based on the assumption that the Company has the ability and it is probable that it will deliver or take delivery of the underlying item. Derivatives that are considered to be normal purchases and sales are exempt from derivative accounting treatment, and are accounted for under accrual accounting. |
Revenue Recognition | Revenue Recognition Ethanol revenue is recognized when product title and all risk of ownership is transferred to the customer as specified in the contractual agreements with the marketers. Under the terms of the marketing agreements, revenue is recognized when product is loaded into rail cars or trucks for shipment. Revenue from the sale of co-products is recorded when title and all risk of ownership transfers to customers. Co-products are normally shipped free on board (“FOB”) shipping point. In accordance with the Company’s agreements for the marketing and sale of ethanol and related products, commissions due to the marketers are deducted from the gross sale price at the time of payment. Interest income is recognized as earned. |
Unit Based Compensation | Unit Based Compensation The Company uses the estimated market value at the time the units are granted to value those units granted to officers and directors. The Company records compensation cost on the straight line method over the vesting period for service based awards. If the units vest upon achievement of a certain milestone, the Company recognizes the expense in the period in which the goal was met. |
Shipping Costs | Shipping Costs Shipping costs are not separately identified under the contract with the marketer and therefore are reflected net in sales. |
Income (Loss) Per Unit | Income (Loss) Per Unit Basic and diluted income (loss) per unit is computed using the weighted-average number of vested units outstanding during the period. Unit warrants are considered unit equivalents and are considered in the diluted income-per-unit computation. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the related business nature and expected financial results, the Company’s plants are aggregated into one reporting segment. |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. |
Income Taxes | Income Taxes The Company has elected to be treated as a partnership for tax purposes and generally does not incur income taxes. Instead, the Company’s earnings and losses are included in the income tax returns of the members. Therefore, no provision or liability for federal or state income taxes has been included in these financial statements. The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company’s federal income tax returns are open and subject to examination from the 2014 tax return year and forward. Various state income tax returns are generally open from the 2013 and later tax return years based on individual state statute of limitations. Management has evaluated the Company’s tax positions under the Financial Accounting Standards Board issued guidance on accounting for uncertainty in income taxes and concluded the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Effective October 1, 2015, the Company adopted the amended guidance in ASC 835-30, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Effective October 1, 2018, the Company will adopt the amended guidance in ASC 606, Revenue from Contracts with Customers, which requires revenue recognition to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated standard permits either the retrospective with cumulative effect transition method. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. Effective October 1, 2018, the Company will adopt the amended guidance in ASC 230, Statement of Cash Flows, which amends existing guidance to require that the Statement of Cash Flows now include restricted cash and restricted cash equivalents along with cash and cash equivalents when reconciling beginning and end-of-period amounts. Entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the Statement of Cash Flows. The amended standard is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. Because our restricted cash as of September 30, 2017 was $1.0 million, we do not expect this standard to have a significant effect on the presentation of our Statement of Cash Flows. In February 2016, the ASC was amended and a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In order to meet that objective, the new standard requires recognition of the assets and liabilities that arise from leases. Accordingly, a lessee will recognize a right-of-use (ROU) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The lease liability will initially be measured at the present value of the future minimum lease payments over the lease term. The ROU asset will initially be measured as the sum of the initial lease liability, initial costs directly attributable to negotiating and arranging the lease, and payments made by a lessee to the lessor at or before the lease commencement date less any lease incentives received. Lessees can make an accounting policy election by class of underlying asset not to recognize a ROU asset and corresponding lease liability for leases with a term of 12 months or less. Accounting by lessors will remain largely unchanged from current U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that companies may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases, leveraged leases, and amounts previously recognized in accordance with the business combinations guidance for leases. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We have not completed the evaluation of the effect this standard will have on our financial statements, but we believe that adopting this standard may have a material impact on our balance sheet. |
Organization and Significant 21
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Estimated Useful Lives of Property and Equipment | Property and equipment is carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives: Office equipment 3-7 Years Other equipment 1-5 Years Process equipment 15 Years Building 40 Years |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories is as follows (in thousands): September 30, 2017 September 30, 2016 Chemicals $ 939 $ 814 Work in process 646 705 Ethanol 788 1,180 Distillers grain 157 45 Supplies and parts 1,804 1,786 Total $ 4,334 $ 4,530 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | A summary of property and equipment is as follows (in thousands): September 30, 2017 September 30, 2016 Land $ 1,811 $ 1,811 Buildings 8,128 8,097 Process equipment 109,006 105,713 Other equipment 147 - Office equipment 1,770 1,600 Construction in process 580 1,571 121,442 118,792 Accumulated depreciation (90,216 ) (86,561 ) Property and equipment, net $ 31,226 $ 32,231 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt is as follows (in thousands, except percentages): September 30, 2017 Interest Rate September 30, 2017 September 30, 2016 ABE South Dakota: Senior debt principal—variable 4.73 % 24,677 28,000 Deferred financing costs N/A (311 ) (407 ) Total outstanding $ 24,366 $ 27,593 |
Schedule of Maturities of Long Term Debt | The estimated maturities of debt at September 30, 2017 are as follows (in thousands): Senior Debt Principal Deferred Financing Costs Total 2018 $ 4,677 $ (96 ) $ 4,581 2019 4,000 (96 ) 3,904 2020 4,000 (95 ) 3,905 2021 12,000 (24 ) 11,976 Total debt $ 24,677 $ (311 ) $ 24,366 |
Lease Commitments and Conting25
Lease Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Commitments | The Company leases ethanol and distillers rail cars, office and other equipment and an office facility under operating lease agreements with the following approximate future minimum rental commitments through 2022 for the years ended September 30 (in thousands): Minimum Rental Commitments 2018 $ 3,612 2019 2,392 2020 1,008 2021 910 2022 528 Thereafter 128 $ 8,578 |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Sales and Receivables | Sales and receivables from the Company’s major customers were as follows (in thousands): September 30, 2017 September 30, 2016 September 30, 2015 NGL Energy—Ethanol Twelve months revenues $ 118,000 $ 116,455 $ 119,689 Receivable balance at period end 3,116 3,642 3,272 Gavilon—Ethanol, Corn Oil & Distillers Grains Twelve months revenues $ 13,786 $ 15,269 $ 17,685 Receivable balance at period end 326 323 384 Dakotaland Feeds—Distillers Grains Twelve months revenues $ 10,663 $ 11,686 $ 11,325 Receivable balance at period end 575 470 206 |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fixed Price Forward Contracts | In addition to entering into contracts to purchase 0.6 million bushels of corn in which the basis or futures price was not locked, the Company had entered into the following fixed price forward sales and purchase contracts at September 30, 2017: Commodity Type Quantity Amount (in 000’s) Period Through Ethanol Sale 594,000 gallons $ 794 October 31, 2017 Distillers grains Sale 19,418 tons 1,564 November 30, 2017 |
Quarterly Financial Data (Una28
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | The following table presents summarized quarterly financial data for the years ended September 30, 2017 and 2016. Dollars in thousands, except per unit amounts: Year Ended September 30, 2017 (1) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total net sales $ 38,508 $ 33,786 $ 33,819 $ 37,419 Gross profit 7,357 950 1,248 3,749 Net income 6,037 88 357 2,287 Basic & diluted income per common unit $ 0.24 $ 0.00 $ 0.01 $ 0.09 Year Ended September 30, 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total net sales $ 37,263 $ 36,102 $ 37,052 $ 34,461 Gross profit (loss) (682 ) (2,223 ) 461 1,955 Net (loss) (1,178 ) (3,433 ) (577 ) (705 ) Basic & diluted (loss) per common unit $ (0.05 ) $ (0.14 ) $ (0.02 ) $ (0.03 ) (1) Certain expenses have been reclassified for year-end presentation to be consistent with the classifications that management has adopted. As such, certain amounts have been reclassified for the quarterly periods presented. |
Parent Financial Statements (Ta
Parent Financial Statements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Advanced BioEnergy, LLC (Unconsolidated) Balance Sheets September 30, September 30, 2017 2016 (Dollars in thousands) ASSETS Current assets: Cash and cash equivalents $ 725 $ 5,176 Restricted cash 1,000 1,000 Total current assets 1,725 6,176 Property and equipment, net 54 118 Other assets: Investment in ABE South Dakota 29,862 20,420 Other assets 32 32 Total assets $ 31,673 $ 26,746 LIABILITIES AND MEMBERS’ EQUITY Liabilities: Accounts payable - 5 Accrued expenses 162 179 Other liabilities 31 39 Total liabilities 193 223 Members’ equity: Members’ capital, no par value, 25,410,851 units issued and outstanding 44,826 48,638 Accumulated deficit (13,346 ) (22,115 ) Total members’ equity 31,480 26,523 Total liabilities and members’ equity $ 31,673 $ 26,746 |
Statements of Operations | Advanced BioEnergy, LLC (Unconsolidated) Statements of Operations Years Ended September 30, September 30, September 30, 2017 2016 2015 (Dollars in thousands) Equity in earnings (losses) of consolidated subsidiary $ 9,442 $ (5,296 ) $ (1,647 ) Selling, general and administrative expenses . (684 ) (640 ) (486 ) Operating income (loss) 8,758 (5,936 ) (2,133 ) Other income (expense) - (6 ) 20 Interest income 11 49 22 Net Income (loss) $ 8,769 $ (5,893 ) $ (2,091 ) |
Statements of Cash Flows | Advanced BioEnergy, LLC (Unconsolidated) Statements of Cash Flows Years Ended September 30, September 30, September 30, 2017 2016 2015 (Dollars in thousands) Cash flows from operating activities: Net income (loss) $ 8,769 $ (5,893 ) $ (2,091 ) Adjustments to reconcile net income (loss) to operating activities cash flows: Depreciation 64 102 129 Equity in (earnings) losses of consolidated subsidiaries (9,442 ) 5,296 1,647 Gain on disposal of fixed assets - (15 ) - Amortization of deferred revenue and rent (8 ) 19 (29 ) Change in working capital components: Other receivable - 6 (6 ) Prepaid expenses - - 5 Accounts payable (5 ) 5 - Accrued expenses (17 ) (116 ) (485 ) Net cash (used in) operating activities (639 ) (596 ) (830 ) Cash flows from investing activities: Purchase of property and equipment - (41 ) - Proceeds from disposal of fixed assets - 47 - Decrease in restricted cash - 500 - Net cash provided by investing activities - 506 - Cash flows from financing activities: Distribution to subsidiary - (3,000 ) - Distribution from subsidiary - 108 - Distribution to members (3,812 ) - - Net cash (used in) financing activities (3,812 ) (2,892 ) - Net (decrease) in cash and cash equivalents (4,451 ) (2,982 ) (830 ) Beginning cash and cash equivalents 5,176 8,158 8,988 Ending cash and cash equivalents $ 725 $ 5,176 $ 8,158 |
Organization and Significant 30
Organization and Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, gal in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($) | Jun. 30, 2016 | Sep. 30, 2017USD ($)FacilitySegment$ / sharesgal | Sep. 30, 2016USD ($)$ / shares | |
Organization And Significant Accounting Policies [Line Items] | ||||
Number of ethanol production facilities | Facility | 2 | |||
Cash and cash equivalents maturity period | Three months or less | |||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | |
Asset impairment | 1,584,000 | |||
Decrease in depreciation expense | $ 5,300,000 | $ 1,800,000 | ||
Decrease in depreciation expense per unit | $ / shares | $ 0.21 | $ 0.07 | ||
Aggregate of Company's plants | Segment | 1 | |||
Restricted cash | $ 1,000,000 | |||
ASC 835-30 [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Debt issuance costs, gross | 478,000 | |||
Aberdeen Plant [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Asset impairment | 1,600,000 | |||
Proceeds from salvage value | 155,000 | |||
Salvage value | $ 200,000 | 45,000 | $ 200,000 | |
Aberdeen Plant [Member] | Selling, General and Administrative Expenses [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Additional expenses related to demolition and other costs | $ 387,000 | |||
Process Equipment [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | 10 years | 15 years | |
South Dakota [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Capacity of production facilities | gal | 80 |
Organization and Significant 31
Organization and Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | |
Office Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Office Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Other Equipment [Member] | Minimum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 1 year | ||
Other Equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Process Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 15 years | 10 years | 15 years |
Building [Member] | |||
Property Plant And Equipment [Line Items] | |||
Estimated useful lives | 40 years |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Summary of inventories | ||
Chemicals | $ 939 | $ 814 |
Work in process | 646 | 705 |
Ethanol | 788 | 1,180 |
Distillers grain | 157 | 45 |
Supplies and parts | 1,804 | 1,786 |
Total | $ 4,334 | $ 4,530 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 121,442 | $ 118,792 |
Accumulated depreciation | (90,216) | (86,561) |
Property and equipment, net | 31,226 | 32,231 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,811 | 1,811 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,128 | 8,097 |
Process Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 109,006 | 105,713 |
Other Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 147 | |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,770 | 1,600 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 580 | $ 1,571 |
Debt - Summary of Debt (Detail)
Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Senior debt principal—variable | $ 24,677 | |
Deferred financing costs | (311) | |
Total outstanding | 24,366 | $ 27,593 |
ABE South Dakota [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (311) | (407) |
ABE South Dakota [Member] | Senior Debt Principal - Variable [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate variable | 4.73% | |
Senior debt principal—variable | $ 24,677 | $ 28,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | $ 24,677 | |
Deferred Financing Costs | (311) | |
Total | 24,366 | $ 27,593 |
2018 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 4,677 | |
Deferred Financing Costs | (96) | |
Total | 4,581 | |
2019 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 4,000 | |
Deferred Financing Costs | (96) | |
Total | 3,904 | |
2020 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 4,000 | |
Deferred Financing Costs | (95) | |
Total | 3,905 | |
2021 [Member] | ||
Schedule Of Maturities Of Long Term Debt [Line Items] | ||
Senior Debt Principal | 12,000 | |
Deferred Financing Costs | (24) | |
Total | $ 11,976 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Sep. 28, 2016 | Jun. 27, 2016 | Dec. 29, 2015 | May 15, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | May 31, 2012 | Jun. 18, 2010 |
Debt Instrument [Line Items] | ||||||||||
Principal amount of term loan payable | $ 750,000 | |||||||||
Reduction in accrued interest payable | The interest accrued on outstanding term and working capital loans under the previous credit agreement were reduced to zero. | |||||||||
Interest accrued | $ 0 | |||||||||
Senior term loan maturity period, Start Range | 1 month | |||||||||
Senior term loan maturity period, End Range | 6 months | |||||||||
Payment of principal and accrued interest | $ 4,425,000 | $ 34,069,000 | 11,207,000 | |||||||
Restricted account collateral for letter of credit | $ 1,000,000 | 1,000,000 | ||||||||
Amount of collateral deposit decreased | (3,612,000) | $ (1,333,000) | ||||||||
Letter of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of collateral deposit decreased | $ (500,000) | $ (1,000,000) | ||||||||
Standby Letter of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Irrevocable and non-transferable standby letter of credit | $ 2,500,000 | |||||||||
Restricted account collateral for letter of credit | $ 2,500,000 | |||||||||
Other Income [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Recognized gains from the Debt | $ 300,000 | |||||||||
ABE South Dakota [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Threshold owner's equity ratio | 60.00% | |||||||||
Threshold working capital | $ 15,000,000 | |||||||||
ABE South Dakota [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin on variable rate | 3.00% | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payment of principal and accrued interest | $ 29,000,000 | |||||||||
Payment of restructuring fee | 3,000,000 | |||||||||
Payment of waiver fee | $ 68,750 | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.25 % [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in applicable margin | 3.25% | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.25 % [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unfunded commitments | $ 20,000,000 | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.00 % [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in applicable margin | 3.00% | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | Applicable Margin 3.00 % [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unfunded commitments | $ 15,000,000 | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum working capital requirement | 10,000,000 | |||||||||
Minimum working capital requirement after next twelve months and thereafter | $ 12,750,000 | |||||||||
Increase in owner's equity ratio | 2.00% | |||||||||
Owner's equity ratio | 40.00% | |||||||||
Owner's equity ratio, upper limit | 50.00% | |||||||||
Minimum fixed charge coverage ratio | 1.15 | |||||||||
Reduced minimum fixed charge coverage ratio subject to threshold compliance | 1 | |||||||||
Threshold owner's equity ratio | 60.00% | |||||||||
Threshold working capital | $ 15,000,000 | |||||||||
Threshold annual capital expenditure | $ 2,000,000 | |||||||||
Threshold pre-tax net income distribution | 40.00% | |||||||||
Permitted distribution when covenants are met | 100.00% | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt to EBITDA ratio | 4 | |||||||||
Threshold pre-tax net income distribution | 40.00% | |||||||||
Permitted distribution when covenants are met | 100.00% | |||||||||
AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current assets to current liabilities ratio | 1.2 | |||||||||
Ag Country Farm First Amendment Senior Credit Agreement [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Threshold annual capital expenditure | $ 3,000,000 | |||||||||
Debt covenant description | ABE South Dakota entered into a Limited Waiver and First Amendment to Master Credit Agreement (“First Amendment”) to (i) eliminate the Owner’s Equity Ratio Covenant, (ii) temporarily increase the Capital Expenditures Covenant to $3.0 million for fiscal 2016 to finance the corn oil extraction system at the Huron plant, and (iii) waive other obligations related to the post closing agreement. | |||||||||
2010 Senior Credit Agreement [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate description | LIBOR plus 4.0% rate for a period of one month | |||||||||
Principal amount of term loan payable | $ 3,000,000 | |||||||||
Restructuring fee paid to the lenders | 3,000,000 | |||||||||
Debt sweep payment | 8,000,000 | |||||||||
Remaining waiver fee | $ 68,750 | |||||||||
Fee to senior lenders | $ 275,000 | |||||||||
2010 Senior Credit Agreement [Member] | ABE South Dakota [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin on variable rate | 4.00% | |||||||||
Eurodollar Rate Loans [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate description | LIBOR plus the applicable margin of 4.0% | |||||||||
Eurodollar Rate Loans [Member] | ABE South Dakota [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin on variable rate | 4.00% | |||||||||
Revolving Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, maturity date | Jan. 1, 2021 | |||||||||
Unused commitment fees | 0.50% | |||||||||
Revolving Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | 30-Day LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin on variable rate | 3.50% | |||||||||
Revolving Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | First Supplement Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 10,000,000 | |||||||||
Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, date of first required payment | Apr. 1, 2016 | |||||||||
Principal amount of term loan payable | $ 1,000,000 | |||||||||
Debt instrument, term | 5 years | |||||||||
Debt instrument, maturity date | Jan. 1, 2021 | |||||||||
Outstanding balance amount | $ 14,000,000 | |||||||||
Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, applicable interest rate | 1.23% | |||||||||
Interest rate description | Term Loan has a variable interest rate (“Variable Rate”) equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. | |||||||||
Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | ABE South Dakota [Member] | One-Month LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin on variable rate | 3.50% | |||||||||
Interest rate description | The $10.0 Revolving Term Facility also has a Variable Rate equal to the one-month LIBOR rate plus an initial Margin of 350 basis points. | |||||||||
Term Loan [Member] | AgCountry Farm Senior Credit Agreement [Member] | Second Supplemental Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 20,000,000 | |||||||||
2016 Term Loan [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, date of first required payment | Apr. 1, 2017 | |||||||||
Principal amount of term loan payable | $ 212,500 | |||||||||
Debt Instrument Outstanding balance | $ 700,000 | |||||||||
Funds drawn from loan | $ 1,100,000 | |||||||||
2016 Term Loan [Member] | ABE South Dakota [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate description | the loan has a variable interest rate equal to the one-month LIBOR rate plus a “Margin” of 350 basis points. | |||||||||
2016 Term Loan [Member] | ABE South Dakota [Member] | One-Month LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable margin on variable rate | 3.50% | |||||||||
2016 Term Loan [Member] | Third Supplemental Agreement [Member] | ABE South Dakota [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt instrument | $ 1,700,000 |
Members' Equity - Additional In
Members' Equity - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2017Member$ / sharesshares | Dec. 01, 2017 | |
Maximum [Member] | ||
Equity [Line Items] | ||
Number of Board members | Member | 9 | |
Subsequent Event [Member] | ||
Equity [Line Items] | ||
Voting agreement outstanding units | 39.60% | |
Stock Appreciation Rights (SARs) [Member] | ||
Equity [Line Items] | ||
Unit appreciation right | shares | 312,500 | |
January 2013 Stock Appreciation Rights (SARs) [Member] | ||
Equity [Line Items] | ||
Unit appreciation rights, granted | shares | 200,000 | |
Grant exercise price of UAR | $ 1.15 | |
Reduction in grant price after cash distribution | $ 0.21 | |
January 2015 Stock Appreciation Rights (SARs) [Member] | ||
Equity [Line Items] | ||
Unit appreciation rights, granted | shares | 12,500 | |
Grant exercise price of UAR | $ 1 | |
Reduction in grant price after cash distribution | $ 0.85 | |
January 2016 Stock Appreciation Rights (SARs) [Member] | ||
Equity [Line Items] | ||
Unit appreciation rights, granted | shares | 100,000 | |
Grant exercise price of UAR | $ 1.24 | |
Reduction in grant price after cash distribution | $ 1.09 |
One-Time Termination Benefit -
One-Time Termination Benefit - Additional Information (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Discontinued Operations And Disposal Groups [Abstract] | |
Restructuring charges | $ 0.4 |
Lease Commitments and Conting39
Lease Commitments and Contingencies - Schedule of Future Minimum Rental Commitments (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,018 | $ 3,612 |
2,019 | 2,392 |
2,020 | 1,008 |
2,021 | 910 |
2,022 | 528 |
Thereafter | 128 |
Total | $ 8,578 |
Lease Commitments and Conting40
Lease Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 4.5 | $ 5 | $ 5.1 |
Major Customers - Additional In
Major Customers - Additional Information (Detail) - ABE South Dakota [Member] | 12 Months Ended |
Sep. 30, 2017 | |
Ethanol Marketing Agreements [Member] | |
Revenue, Major Customer [Line Items] | |
Agreement expiration date | Jun. 30, 2019 |
Co-product Marketing Agreement [Member] | |
Revenue, Major Customer [Line Items] | |
Agreement expiration date | Jul. 31, 2018 |
Major Customers - Sales and Rec
Major Customers - Sales and Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
NGL Energy Ethanol [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 118,000 | $ 116,455 | $ 119,689 |
Receivable balance at period end | 3,116 | 3,642 | 3,272 |
Gavilon Ethanol, Corn Oil & Distillers Grains [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 13,786 | 15,269 | 17,685 |
Receivable balance at period end | 326 | 323 | 384 |
Dakotaland Feeds Distillers Grains [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 10,663 | 11,686 | 11,325 |
Receivable balance at period end | $ 575 | $ 470 | $ 206 |
Risk Management - Additional In
Risk Management - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2017bu | |
Corn (Bushels) Purchase Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Quantity | 600,000 |
Risk Management - Fixed Price F
Risk Management - Fixed Price Forward Contracts (Detail) - Forward Contracts [Member] | 12 Months Ended |
Sep. 30, 2017USD ($)Tgal | |
Ethanol (Gallons) Sales Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Quantity | gal | 594,000 |
Forward contracts, Amount | $ 794,000 |
Forward contracts, Period Covered Through | Oct. 31, 2017 |
Distillers Grains (Tons) Sales Contracts [Member] | |
Derivative [Line Items] | |
Forward contracts, Amount | $ 1,564,000 |
Forward contracts, Period Covered Through | Nov. 30, 2017 |
Forward contracts, Quantity | T | 19,418 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Percentage of employee's elective deferrals to company's matching contribution | 100.00% | ||
Maximum percentage of employee's eligible wages to company's matching contribution | 5.00% | ||
Company's contribution | $ 165 | $ 160 | $ 163 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - South Dakota Wheat Growers Association [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Amount of corn purchased by the company | $ 93.8 | $ 104.9 | $ 101.1 |
Percentage of company's outstanding units owned | 5.00% | ||
Outstanding amount payable to SDWG | $ 2.2 | $ 2 |
Quarterly Financial Data (Una47
Quarterly Financial Data (Unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Effect of Fourth Quarter Events [Line Items] | |||
Total net sales | $ 143,532 | $ 144,878 | $ 152,117 |
Gross profit (loss) | 13,304 | (489) | 606 |
Net income (loss) | $ 8,769 | $ (5,893) | $ (2,091) |
Basic & diluted income (loss) per common unit | $ 0.35 | $ (0.23) | $ (0.08) |
1st Quarter [Member] | |||
Effect of Fourth Quarter Events [Line Items] | |||
Total net sales | $ 38,508 | $ 37,263 | |
Gross profit (loss) | 7,357 | (682) | |
Net income (loss) | $ 6,037 | $ (1,178) | |
Basic & diluted income (loss) per common unit | $ 0.24 | $ (0.05) | |
2nd Quarter [Member] | |||
Effect of Fourth Quarter Events [Line Items] | |||
Total net sales | $ 33,786 | $ 36,102 | |
Gross profit (loss) | 950 | (2,223) | |
Net income (loss) | $ 88 | $ (3,433) | |
Basic & diluted income (loss) per common unit | $ 0 | $ (0.14) | |
3rd Quarter [Member] | |||
Effect of Fourth Quarter Events [Line Items] | |||
Total net sales | $ 33,819 | $ 37,052 | |
Gross profit (loss) | 1,248 | 461 | |
Net income (loss) | $ 357 | $ (577) | |
Basic & diluted income (loss) per common unit | $ 0.01 | $ (0.02) | |
4th Quarter [Member] | |||
Effect of Fourth Quarter Events [Line Items] | |||
Total net sales | $ 37,419 | $ 34,461 | |
Gross profit (loss) | 3,749 | 1,955 | |
Net income (loss) | $ 2,287 | $ (705) | |
Basic & diluted income (loss) per common unit | $ 0.09 | $ (0.03) |
Parent Financial Statements - A
Parent Financial Statements - Additional Information (Detail) - ABE South Dakota [Member] - USD ($) | Dec. 29, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Distributions from subsidiaries | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | ||||
Threshold owner's equity ratio | 60.00% | |||
Threshold working capital | $ 15,000,000 | |||
AgCountry Farm Senior Credit Agreement [Member] | ||||
Threshold owner's equity ratio | 60.00% | |||
Threshold working capital | $ 15,000,000 | |||
Threshold pre-tax net income distribution | 40.00% | |||
Permitted distribution when covenants are met | 100.00% | |||
AgCountry Farm Senior Credit Agreement [Member] | Maximum [Member] | ||||
Threshold pre-tax net income distribution | 40.00% | |||
Permitted distribution when covenants are met | 100.00% |
Parent Financial Statements - B
Parent Financial Statements - Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 18,804 | $ 15,416 | $ 16,566 | $ 21,982 |
Restricted cash | 1,000 | 1,000 | ||
Total current assets | 29,647 | 26,734 | ||
Property and equipment, net | 31,226 | 32,231 | ||
Other assets: | ||||
Other assets | 756 | 1,068 | ||
Total assets | 61,629 | 60,033 | ||
Liabilities: | ||||
Accounts payable | 3,531 | 3,634 | ||
Accrued expenses | 2,221 | 2,243 | ||
Other liabilities | 31 | 40 | ||
Total liabilities | 30,149 | 33,510 | ||
Members’ equity: | ||||
Members’ capital, no par value, 25,410,851 units issued and outstanding | 44,826 | 48,638 | ||
Accumulated deficit | (13,346) | (22,115) | ||
Total members’ equity | 31,480 | 26,523 | 32,416 | 34,507 |
Total liabilities and members’ equity | 61,629 | 60,033 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 725 | 5,176 | $ 8,158 | $ 8,988 |
Restricted cash | 1,000 | 1,000 | ||
Total current assets | 1,725 | 6,176 | ||
Property and equipment, net | 54 | 118 | ||
Other assets: | ||||
Other assets | 32 | 32 | ||
Total assets | 31,673 | 26,746 | ||
Liabilities: | ||||
Accounts payable | 5 | |||
Accrued expenses | 162 | 179 | ||
Other liabilities | 31 | 39 | ||
Total liabilities | 193 | 223 | ||
Members’ equity: | ||||
Members’ capital, no par value, 25,410,851 units issued and outstanding | 44,826 | 48,638 | ||
Accumulated deficit | (13,346) | (22,115) | ||
Total members’ equity | 31,480 | 26,523 | ||
Total liabilities and members’ equity | 31,673 | 26,746 | ||
ABE South Dakota [Member] | Parent Company [Member] | ||||
Other assets: | ||||
Investment in ABE | $ 29,862 | $ 20,420 |
Parent Financial Statements -50
Parent Financial Statements - Balance Sheets (Parenthetical) (Detail) - $ / shares | Sep. 30, 2017 | Sep. 30, 2016 |
Members' capital, par value | ||
Members' capital, units issued | 25,410,851 | 25,410,851 |
Members' capital, units outstanding | 25,410,851 | 25,410,851 |
Parent Company [Member] | ||
Members' capital, par value | ||
Members' capital, units issued | 25,410,851 | 25,410,851 |
Members' capital, units outstanding | 25,410,851 | 25,410,851 |
Parent Financial Statements - S
Parent Financial Statements - Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Selling, general and administrative expenses . | $ (3,798) | $ (3,267) | $ (2,999) |
Operating income (loss) | 9,506 | (5,340) | (2,393) |
Interest income | 11 | 51 | 22 |
Net income (loss) | 8,769 | (5,893) | (2,091) |
Parent Company [Member] | |||
Equity in earnings (losses) of consolidated subsidiary | 9,442 | (5,296) | (1,647) |
Selling, general and administrative expenses . | (684) | (640) | (486) |
Operating income (loss) | 8,758 | (5,936) | (2,133) |
Other income (expense) | (6) | 20 | |
Interest income | 11 | 49 | 22 |
Net income (loss) | $ 8,769 | $ (5,893) | $ (2,091) |
Parent Financial Statements -52
Parent Financial Statements - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 8,769 | $ (5,893) | $ (2,091) |
Adjustments to reconcile net income (loss) to operating activities cash flows: | |||
Depreciation | 3,820 | 9,579 | 11,109 |
Amortization of deferred revenue and rent | (9) | 19 | (29) |
Change in working capital components: | |||
Other receivable | (221) | (467) | (2) |
Prepaid expenses | 47 | 31 | (61) |
Accounts payable | (44) | (1,681) | 1,110 |
Accrued expenses | (22) | (55) | (916) |
Net cash provided by operating activities | 13,186 | 1,723 | 7,005 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (2,975) | (2,579) | (2,614) |
Proceeds from disposal of fixed assets | 47 | ||
Decrease in restricted cash | 3,612 | 1,333 | |
Net cash provided by (used in) investing activities | (2,663) | 1,196 | (1,214) |
Cash flows from financing activities: | |||
Distribution to members | (3,812) | ||
Net increase (decrease) in cash and cash equivalents | 3,388 | (1,150) | (5,416) |
Beginning cash and cash equivalents | 15,416 | 16,566 | 21,982 |
Ending cash and cash equivalents | 18,804 | 15,416 | 16,566 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income (loss) | 8,769 | (5,893) | (2,091) |
Adjustments to reconcile net income (loss) to operating activities cash flows: | |||
Depreciation | 64 | 102 | 129 |
Equity in (earnings) losses of consolidated subsidiaries | (9,442) | 5,296 | 1,647 |
Gain on disposal of fixed assets | (15) | ||
Amortization of deferred revenue and rent | (8) | 19 | (29) |
Change in working capital components: | |||
Other receivable | 6 | (6) | |
Prepaid expenses | 5 | ||
Accounts payable | (5) | 5 | |
Accrued expenses | (17) | (116) | (485) |
Net cash provided by operating activities | (639) | (596) | (830) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (41) | ||
Proceeds from disposal of fixed assets | 47 | ||
Decrease in restricted cash | 500 | ||
Net cash provided by (used in) investing activities | 506 | ||
Cash flows from financing activities: | |||
Distribution to subsidiary | (3,000) | ||
Distribution from subsidiary | 108 | ||
Distribution to members | (3,812) | ||
Net cash (used in) financing activities | (3,812) | (2,892) | |
Net increase (decrease) in cash and cash equivalents | (4,451) | (2,982) | (830) |
Beginning cash and cash equivalents | 5,176 | 8,158 | 8,988 |
Ending cash and cash equivalents | $ 725 | $ 5,176 | $ 8,158 |