x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. | |
For the quarterly period ended | January 31, 2016 | |
OR | ||
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. | |
For the transition period from to . | ||
COMMISSION FILE NUMBER 000-51177 |
Iowa | 02-0575361 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
1822 43rd Street SW, Mason City, Iowa 50401 | ||||
(Address of principal executive offices) | ||||
(641) 423-8525 | ||||
(Registrant's telephone number, including area code) |
Large Accelerated Filer o | Accelerated Filer o |
Non-Accelerated Filer x | Smaller Reporting Company o |
Page Number | |
ASSETS | January 31, 2016 | October 31, 2015 | ||||||
(Unaudited) | ||||||||
Current Assets | ||||||||
Cash and equivalents | $ | 7,628,631 | $ | 21,084,029 | ||||
Marketable securities | 13,341,028 | 13,241,062 | ||||||
Accounts receivable | 3,847,227 | 2,717,592 | ||||||
Other receivables | 2,348,094 | 669,930 | ||||||
Derivative instruments | 452,083 | 879,332 | ||||||
Inventory | 8,059,499 | 6,866,505 | ||||||
Prepaid expenses and other | 1,827,928 | 1,578,458 | ||||||
Total current assets | 37,504,490 | 47,036,908 | ||||||
Property and Equipment | ||||||||
Land and land improvements | 12,516,479 | 12,516,479 | ||||||
Building and grounds | 25,761,752 | 25,761,752 | ||||||
Grain handling equipment | 15,329,548 | 15,178,214 | ||||||
Office equipment | 220,527 | 217,424 | ||||||
Plant and process equipment | 85,512,612 | 84,802,333 | ||||||
Construction in progress | 8,710,196 | 5,887,270 | ||||||
148,051,114 | 144,363,472 | |||||||
Less accumulated depreciation | 84,288,127 | 82,232,924 | ||||||
Net property and equipment | 63,762,987 | 62,130,548 | ||||||
Other Assets | ||||||||
Investments | 24,526,518 | 27,334,443 | ||||||
Other assets | 1,585,380 | 1,653,421 | ||||||
Total other assets | 26,111,898 | 28,987,864 | ||||||
Total Assets | $ | 127,379,375 | $ | 138,155,320 | ||||
LIABILITIES AND MEMBERS' EQUITY | January 31, 2016 | October 31, 2015 | ||||||
(Unaudited) | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 6,542,868 | $ | 6,324,850 | ||||
Accrued expenses | 1,201,536 | 1,679,336 | ||||||
Other current liabilities | 113,115 | 110,392 | ||||||
Total current liabilities | 7,857,519 | 8,114,578 | ||||||
Long-term Liabilities | ||||||||
Deferred compensation | 283,998 | 278,798 | ||||||
Deferred revenue, net of current portion | 167,843 | 198,164 | ||||||
Total long-term liabilities | 451,841 | 476,962 | ||||||
Commitments and Contingencies | ||||||||
Members' Equity (19,873,000 units issued and outstanding) | 119,070,015 | 129,563,780 | ||||||
Total Liabilities and Members’ Equity | $ | 127,379,375 | $ | 138,155,320 | ||||
Three Months Ended | Three Months Ended | |||||||
January 31, 2016 | January 31, 2015 | |||||||
Revenues | $ | 48,773,123 | $ | 61,048,123 | ||||
Cost of Goods Sold | 46,819,364 | 48,693,853 | ||||||
Gross Profit | 1,953,759 | 12,354,270 | ||||||
Operating Expenses | 998,968 | 1,055,988 | ||||||
Operating Income | 954,791 | 11,298,282 | ||||||
Other Income (Expense) | ||||||||
Other income | 99,204 | 82,864 | ||||||
Interest (expense) | (3,728 | ) | (35,289 | ) | ||||
Equity in net income of investments | 2,367,068 | 3,556,776 | ||||||
Total Other Income | 2,462,544 | 3,604,351 | ||||||
Net Income | $ | 3,417,335 | $ | 14,902,633 | ||||
Basic & diluted net income per unit | $ | 0.17 | $ | 0.75 | ||||
Weighted average units outstanding for the calculation of basic & diluted net income per unit | 19,873,000 | 19,873,000 | ||||||
Distributions Per Unit | $ | 0.70 | $ | 2.60 | ||||
Three Months Ended | Three Months Ended | |||||||
January 31, 2016 | January 31, 2015 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 3,417,335 | $ | 14,902,633 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,077,355 | 2,072,672 | ||||||
Unrealized (gain) loss on risk management & marketable securities | 327,283 | (219,460 | ) | |||||
Amortization of deferred revenue | (27,598 | ) | (73,835 | ) | ||||
Change in accretion of interest on grant & note receivable | (16,441 | ) | 16,209 | |||||
Distributions in excess of earnings from investments | 1,298,325 | 6,905,817 | ||||||
Deferred compensation expense | 5,200 | 131,139 | ||||||
Change in assets and liabilities | ||||||||
Accounts receivable | (1,129,635 | ) | 5,815,852 | |||||
Inventory | (1,192,994 | ) | (2,943,183 | ) | ||||
Prepaid expenses and other | (355,704 | ) | (981,262 | ) | ||||
Accounts payable | (318,431 | ) | (54,197 | ) | ||||
Accrued expenses | (477,800 | ) | (530,053 | ) | ||||
Deferred compensation payable | — | (126,014 | ) | |||||
Net cash provided by operating activities | 3,606,895 | 24,916,318 | ||||||
Cash Flows from Investing Activities | ||||||||
Capital expenditures | (3,151,193 | ) | (2,327,466 | ) | ||||
Purchase of marketable securities | (5,000,000 | ) | — | |||||
Proceeds from sale of marketable securities | 5,000,000 | 5,150,000 | ||||||
Net cash (used in) provided by investing activities | (3,151,193 | ) | 2,822,534 | |||||
Cash Flows from Financing Activities | ||||||||
Payments for long-term debt | — | (9,695 | ) | |||||
Distributions to members | (13,911,100 | ) | (51,669,800 | ) | ||||
Payments received on grant receivable | — | 253,112 | ||||||
Net cash (used in) financing activities | (13,911,100 | ) | (51,426,383 | ) | ||||
Net (Decrease) in Cash and Equivalents | (13,455,398 | ) | (23,687,531 | ) | ||||
Cash and Equivalents – Beginning of Period | 21,084,029 | 47,444,566 | ||||||
Cash and Equivalents – End of Period | $ | 7,628,631 | $ | 23,757,035 | ||||
Supplemental Cash Flow Information | ||||||||
Cash paid for interest | $ | 16,648 | $ | 42,502 | ||||
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities | ||||||||
Accounts payable related to construction in process | $ | 536,449 | $ | 396,200 | ||||
Distributions declared and unpaid by equity method investee | 1,509,600 | — |
January 31, 2016 | October 31, 2015 | |||||||
Raw Materials | $ | 4,015,687 | $ | 4,032,244 | ||||
Work in Process | 1,157,341 | 1,208,661 | ||||||
Finished Goods | 2,886,471 | 1,625,600 | ||||||
Totals | $ | 8,059,499 | $ | 6,866,505 |
Three Months Ended January 31, | ||||||||
2016 | 2015 | |||||||
Sales ethanol, distiller grains & corn oil | $ | 48,873,000 | $ | 61,081,000 | ||||
Marketing fees | 100,000 | 89,000 | ||||||
As of | January 31, 2016 | October 31, 2015 | ||||||
Amount due from RPMG | $ | 3,836,000 | $ | 2,717,000 |
Income Statement Classification | Realized Gain | Change in Unrealized Gain (Loss) | Total Gain | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Commodity Contracts for the | Revenue | $ | — | $ | — | $ | — | |||||||
three months ended January 31, 2016 | Cost of Goods Sold | 382,000 | 217,000 | 599,000 | ||||||||||
Total | $ | 382,000 | $ | 217,000 | $ | 599,000 | ||||||||
Commodity Contracts for the | Revenue | $ | 141,000 | $ | (85,000 | ) | $ | 56,000 | ||||||
three months ended January 31, 2015 | Cost of Goods Sold | 186,000 | 200,000 | 386,000 | ||||||||||
Total | $ | 327,000 | $ | 115,000 | $ | 442,000 |
Balance Sheet Classification | January 31, 2016 | October 31, 2015 | ||||||||
Futures and option contracts through December 2016 | ||||||||||
In gain position | $ | 278,000 | $ | 58,000 | ||||||
In loss position | (241,000 | ) | (237,000 | ) | ||||||
Cash held by broker | 415,000 | 1,058,000 | ||||||||
Current Asset | $ | 452,000 | $ | 879,000 |
Commitments Through | Amount | |||||
Sale commitments | ||||||
Corn Oil - fixed price | April 2016 | $ | 1,033,000 | |||
Distiller Grains - fixed price | March 2016 | 2,528,000 | ||||
Purchase commitments | ||||||
Corn - fixed price | December 2016 | $ | 3,233,000 | |||
Corn - basis contract | May 2016 | 18,585,000 | ||||
Natural gas - fixed price | March 2016 | 396,000 |
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Marketable securities | ||||||||||||||||
Assets, January 31, 2016 | $ | 7,841,000 | $ | 7,841,000 | $ | — | $ | — | ||||||||
Assets, October 31, 2015 | 6,241,000 | 6,241,000 | — | — | ||||||||||||
Derivative financial instruments | ||||||||||||||||
January 31, 2016 | ||||||||||||||||
Assets | $ | 278,000 | $ | 260,000 | $ | 18,000 | $ | — | ||||||||
Liabilities | (241,000 | ) | (109,000 | ) | (132,000 | ) | — | |||||||||
October 31, 2015 | ||||||||||||||||
Assets | $ | 58,000 | $ | 33,000 | $ | 25,000 | $ | — | ||||||||
Liabilities | (237,000 | ) | (85,000 | ) | (152,000 | ) | — |
Balance Sheet | 12/31/2015 | 9/30/2015 | ||||||
Current Assets | $ | 293,971 | $ | 285,879 | ||||
Other Assets | 252,804 | 256,144 | ||||||
Current Liabilities | 167,964 | 142,927 | ||||||
Long-term Debt | 49,350 | 49,241 | ||||||
Members’ Equity | 329,461 | 349,855 | ||||||
Three Months Ended December 31, | ||||||||
Income Statement | 2015 | 2014 | ||||||
Revenue | $ | 184,049 | $ | 221,543 | ||||
Gross Profit | 21,795 | 49,229 | ||||||
Net Income | 17,520 | 44,036 |
Three Months Ended January 31, | ||||||||
Equity in Net Income | 2016 | 2015 | ||||||
Absolute Energy | $ | 550 | $ | 1,244 | ||||
Guardian Energy | 1,368 | 1,367 | ||||||
Homeland Energy Solutions | 405 | 990 | ||||||
Other | 44 | (44 | ) | |||||
Total | $ | 2,367 | $ | 3,557 |
Guardian Energy Condensed Financial Information | ||||||||
Balance Sheet | 12/31/2015 | 9/30/2015 | ||||||
Current Assets | $ | 25,126 | $ | 23,053 | ||||
Other Assets | 46,000 | 47,653 | ||||||
Current Liabilities | 11,707 | 7,918 | ||||||
Long-term Debt | 49,000 | 49,000 | ||||||
Members’ Equity | 10,419 | 13,788 | ||||||
Three Months Ended | ||||||||
Income Statement | 12/31/2015 | 12/31/2014 | ||||||
Revenue | $ | 52,137 | $ | 65,001 | ||||
Gross Profit | 7,290 | 16,354 | ||||||
Net Income | 3,881 | 12,924 |
Homeland Energy Solutions Condensed Financial Information | ||||||||
Balance Sheet | 12/31/2015 | 9/30/2015 | ||||||
Current Assets | $ | 76,604 | $ | 80,156 | ||||
Other Assets | 110,388 | 109,910 | ||||||
Current Liabilities | 37,661 | 36,118 | ||||||
Long-term Debt | 350 | 241 | ||||||
Members’ Equity | 148,980 | 153,707 | ||||||
Three Months Ended | ||||||||
Income Statement | 12/31/2015 | 12/31/2014 | ||||||
Revenue | $ | 68,246 | $ | 77,648 | ||||
Gross Profit | 59,872 | 13,887 | ||||||
Net Income | 4,961 | 12,528 |
• | Reduced corn ethanol use requirements in the EPA's renewable volume obligations under the Renewable Fuels Standard for 2014, 2015 and 2016; |
• | The impact lower gasoline prices have on the market price of ethanol and our ability to profitably operate the ethanol plant; |
• | Changes in the availability and price of corn and natural gas; |
• | Any elimination of the renewable fuels use requirements under the RFS; |
• | Our ability to transport our finished goods in order to continue to operate our ethanol plant at capacity; |
• | Our ability to profitably operate the ethanol plant, including the sale of distiller grains and corn oil, and maintain a positive spread between the selling price of our products and our raw material costs; |
• | Lower distillers grains prices which result from the Chinese antidumping investigation; |
• | The ability of the ethanol industry to generate additional demand through higher level blends of ethanol, including E15 and E85; |
• | The effect our hedging activities have on our financial performance and cash flows; |
• | Ethanol, distiller grains and corn oil supply exceeding demand and corresponding price reductions; |
• | Our ability to generate free cash flow to invest in our business, service our debt and satisfy the financial covenants contained in our credit agreement with our lender; |
• | Changes in our business strategy, capital improvements or development plans; |
• | Changes in plant production capacity or technical difficulties in operating the plant; |
• | Changes in general economic conditions or the occurrence of certain events causing an economic impact in the agriculture, oil or automobile industries; |
• | Changes and advances in ethanol production technology; |
• | Changes in interest rates or the lack of credit availability; and |
• | Our ability to retain key employees and maintain labor relations. |
2016 | 2015 | ||||||||||
Income Statement Data | Amount | % | Amount | % | |||||||
Revenues | $ | 48,773,123 | 100.0 | $ | 61,048,123 | 100.0 | |||||
Cost of Goods Sold | 46,819,364 | 96.0 | 48,693,853 | 79.8 | |||||||
Gross Profit | 1,953,759 | 4.0 | 12,354,270 | 20.2 | |||||||
Operating Expenses | 998,968 | 2.0 | 1,055,988 | 1.7 | |||||||
Operating Income | 954,791 | 2.0 | 11,298,282 | 18.5 | |||||||
Other Income | 2,462,544 | 5.0 | 3,604,351 | 5.9 | |||||||
Net Income | $ | 3,417,335 | 7.0 | $ | 14,902,633 | 24.4 |
Three Months Ended January 31, | |||||||
2016 | 2015 | ||||||
Net cash provided by operating activities | $ | 3,606,895 | $ | 24,916,318 | |||
Net cash (used in) provided by investing activities | (3,151,193 | ) | 2,822,534 | ||||
Net cash (used in) financing activities | (13,911,100 | ) | (51,426,383 | ) |
Estimated Volume Requirements for the next 12 months (net of forward and futures contracts) | Unit of Measure | Hypothetical Adverse Change in Price | Approximate Adverse Change to Income | ||||||||
Natural Gas | 2,510,000 | MMBTU | 10% | $ | 641,000 | ||||||
Ethanol | 115,000,000 | Gallons | 10% | 14,594,000 | |||||||
Corn | 35,306,000 | Bushels | 10% | 12,551,000 |
(a) | The following exhibits are filed as part of this report. |
Exhibit No. | Exhibit | ||
31.1 | Certificate Pursuant to 17 CFR 240.13a-14(a)* | ||
31.2 | Certificate Pursuant to 17 CFR 240.13a-14(a)* | ||
32.1 | Certificate Pursuant to 18 U.S.C. Section 1350* | ||
32.2 | Certificate Pursuant to 18 U.S.C. Section 1350* | ||
101 | The following financial information from Golden Grain Energy, LLC's Quarterly Report on Form 10-Q for the quarter ended January 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of January 31, 2016 and October 31, 2015, (ii) Statements of Operations for the three months ended January 31, 2016 and 2015, (iii) Statements of Cash Flows for the three months ended January 31, 2016 and 2015, and (iv) the Notes to Condensed Financial Statements.** |
GOLDEN GRAIN ENERGY, LLC | |||
Date: | March 14, 2016 | /s/ Curtis Strong | |
Curtis Strong | |||
Executive Vice-President | |||
(Principal Executive Officer) | |||
Date: | March 14, 2016 | /s/ Christine Marchand | |
Christine Marchand | |||
Chief Financial Officer | |||
(Principal Financial and Accounting Officer) |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
a) | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | March 14, 2016 | /s/ Curtis Strong | |
Curtis Strong, Executive Vice President (Principal Executive Officer) |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
a) | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | March 14, 2016 | /s/ Christine Marchand | |
Christine Marchand, Chief Financial Officer (Principal Financial Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Curtis Strong | |
Curtis Strong | |
Executive Vice President | |
Dated: | March 14, 2016 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Christine Marchand | |
Christine Marchand | |
Chief Financial Officer | |
Dated: | March 14, 2016 |
Document and Entity Information Document - shares |
3 Months Ended | |
---|---|---|
Jan. 31, 2016 |
Mar. 14, 2016 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | GOLDEN GRAIN ENERGY, LLC | |
Entity Central Index Key | 0001206942 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,873,000 |
Balance Sheet Parenthetical - shares |
Jan. 31, 2016 |
Oct. 31, 2015 |
---|---|---|
Members' Equity, units issued and outstanding | 19,873,000 | 19,873,000 |
Statement of Operations - USD ($) |
3 Months Ended | |
---|---|---|
Jan. 31, 2016 |
Jan. 31, 2015 |
|
Revenues | $ 48,773,123 | $ 61,048,123 |
Cost of Goods Sold | 46,819,364 | 48,693,853 |
Gross Profit | 1,953,759 | 12,354,270 |
Operating Expenses | 998,968 | 1,055,988 |
Operating Income | 954,791 | 11,298,282 |
Other Income (Expense) | ||
Other income | 99,204 | 82,864 |
Interest (expense) | (3,728) | (35,289) |
Equity in net income of investments | 2,367,068 | 3,556,776 |
Total Other Income | 2,462,544 | 3,604,351 |
Net Income | $ 3,417,335 | $ 14,902,633 |
Basic & diluted net income per unit | $ 0.17 | $ 0.75 |
Weighted average units outstanding for the calculation of basic & diluted net income per unit | 19,873,000 | 19,873,000 |
Distribution Per Unit | $ 0.70 | $ 2.60 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Jan. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and notes disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted as permitted by such rules and regulations. These financial statements and related notes should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements for the year ended October 31, 2015, contained in the Company's annual report on Form 10-K for 2015. In the opinion of management, the interim condensed financial statements reflect all adjustments considered necessary for fair presentation. The adjustments made to these statements consist only of normal recurring adjustments. Nature of Business Golden Grain Energy, LLC (Golden Grain Energy) is approximately a 110 million gallon annual production ethanol plant near Mason City, Iowa. The Company sells its production of ethanol, distiller grains with solubles and corn oil primarily in the continental United States. The Company also holds several investments in various companies that focus on ethanol production, marketing and/or logistics. Organization Golden Grain Energy is organized as an Iowa limited liability company. The members' liability is limited as specified in Golden Grain Energy's operating agreement and pursuant to the Iowa Revised Uniform Limited Liability Company Act. 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. Cash and Equivalents The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments, that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. Marketable Securities Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At January 31, 2016, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $7,812,000 and $7,841,000, respectively, and certificates of deposit all with maturities of less than one year and approximate value of $5,500,000. At October 31, 2015, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $6,257,000 and $6,241,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $7,000,000. For the periods ended January 31, 2016 and 2015, there was no other-than-temporary impairment recognized. For the three months ended January 31, 2016 and 2015, the Company recorded interest, dividends and net realized and unrealized gains and losses of approximately $99,000 and $83,000, respectively, from these investments part of other income (expense). Receivables Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. Investments The Company has less than a 20% investment interest in five companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. The fiscal years of Renewable Products Marketing Group, LLC (RPMG) and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC, Homeland Energy Solutions, LLC and Lawrenceville Tank, LLC end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the period ended January 31, 2016, for all companies, is based on the investee's results for the three months ended December 31, 2015. Revenue and Cost Recognition Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. Inventory Inventories are generally valued at the lower of weighted average cost or net realized value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. Effective November 1, 2015, the Company adopted Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring the measurement of inventory at the lower of cost or net realizable value. The adoption of this standard did not have a material effect on the financial statements. Property & Equipment Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 and 40 years. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Investment in commodities contracts, derivative instruments and hedging activities The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company occasionally also enters into derivative contracts to hedge its exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. Net income per unit Basic and diluted earnings per unit are computed using the weighted-average number of Class A and B units outstanding during the period. Fair Value Financial instruments include cash and equivalents, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices. The fair value, determined using level 3 inputs, of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the three months ended January 31, 2016, ethanol sales accounted for approximately 80% of total revenue, distiller grains sales accounted for approximately 16% of total revenue, and corn oil sales accounted for approximately 4% of total revenue, while corn costs averaged approximately 81% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. |
Inventory |
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Inventory [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | INVENTORY Inventory consisted of the following as of January 31, 2016 and October 31, 2015:
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Bank Financing |
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Jan. 31, 2016 | |
Bank Financing [Abstract] | |
Bank Financing | BANK FINANCING The Company has entered into a master loan agreement with Farm Credit Services of America (FLCA) which includes a revolving term loan with original maximum borrowings of $35,000,000 and maturity on February 1, 2020. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (3.58% as of January 31, 2016). The borrowings are secured by substantially all the assets of the Company. The agreement allows for additional reductions in the maximum borrowings at the Company's request. The Company is subject to certain financial covenants including but not limited to minimum working capital and net worth requirements and limitations on distributions. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of the outstanding principal balances on the loans and/or imposition of fees or penalties. As of January 31, 2016, the Company had no outstanding borrowings and $10 million available to borrow under the credit agreement. As of October 31, 2015, the Company had no borrowings outstanding. |
Related Party Transactions |
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Jan. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS The Company purchased corn and materials from members of its Board of Directors or Risk Management Committee that own or manage elevators. Purchases from the related parties during the three months ended January 31, 2016 totaled approximately $24,260,000. Purchases during the three months ended January 31, 2015 totaled approximately $18,984,000. As of January 31, 2016 and October 31, 2015, the amount owed to related parties was approximately $839,000 and $666,000, respectively. |
Commitments, Contingencies and Agreements |
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Commitments, Contingencies and Agreements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments, Contingencies and Agreements | COMMITMENTS, CONTINGENCIES AND AGREEMENTS Ethanol, Distiller Grains and Corn Oil marketing agreements and major customers The Company has entered into marketing agreements with a marketing company, in which the Company has an investment, for the exclusive rights to market, sell and distribute the entire ethanol, distiller grains and corn oil inventory produced by the Company. The marketing fees are presented net in revenues. Approximate sales and marketing fees related to the agreements in place are as follows:
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Risk Management |
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Risk Management [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management | RISK MANAGEMENT The Company's activities expose it to a variety of market risks, including the effects of changes in commodity prices. 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 focuses on the unpredictability of financial and commodities markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. To reduce price risk caused by market fluctuations, the Company generally follows a policy of using exchange traded futures contracts to reduce its net position of merchandisable agricultural commodity inventories and forward cash purchase and sales contracts and uses exchange traded futures contracts to reduce price risk. Exchange-traded futures contracts are valued at market price. Changes in market price of contracts related to corn and natural gas are recorded in cost of goods sold and changes in market prices of contracts related to sale of ethanol are recorded in revenues. Unrealized gains and losses on forward contracts are deemed "normal purchases" under derivative accounting guidelines and, therefore, are not marked to market in the Company's financial statements. The following table represents the approximate amount of realized and unrealized gains (losses) and changes in fair value recognized in earnings on commodity contracts for the periods ended January 31, 2016 and 2015 and the fair value of derivatives as of January 31, 2016 and October 31, 2015:
As of January 31, 2016, the Company had the following approximate outstanding purchase and sale commitments, of which approximately $11,715,000 of the purchase commitments were with related parties.
As of January 31, 2016, the Company has fixed price futures and forward contracts in place for approximately 9% of our anticipated corn needs, 16% of our natural gas needs and 0% of our ethanol sales for the next 12 months with no open positions beyond that period. As of January 31, 2016, the Company had approximately 36,000 bushels with approximate market value of $126,000 of priced later and deferred payment corn contracts. As of October 31, 2015, the Company had approximately 197,000 bushels with approximate market value of $705,000 of priced later and deferred payment corn contracts. |
Fair Value Measurements |
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Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Marketable Securities: The Company's short-term investments are classified within Level 1 and comprised of short-term liquid investments (e.g. mutual funds), classified as trading securities, which are carried at fair value based on the quoted market prices. Derivative financial instruments: 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 markets such as the CME and NYMEX. Crush swaps are bundled contracts or combined contracts that include a portion of corn, ethanol and natural gas rolled into a single trading instrument. These contracts are reported at fair value utilizing Level 2 inputs and are based on the various trading activity of the components of each segment of the bundled contract. The following table summarizes financial assets and financial liabilities measured at the approximate fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
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Investments |
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Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Condensed, combined unaudited financial information of the Company’s investments in Absolute Energy, Homeland Energy Solutions, Guardian Energy, Lawrenceville Tank and RPMG is as follows (in 000’s):
The Company recorded equity in net income of approximately (in 000's):
During the three months ended January 31, 2016, Guardian Energy made distributions in excess of the equity balance recorded by the Company. The excess distribution was approximately $961,000 and is recorded as part of income for the three months ended January 31, 2016. The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented.
The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions. The Company's equitable portion of assets of Homeland Energy Solutions is greater than than 10% of the Company's assets for certain periods presented:
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Accounting Policies |
3 Months Ended |
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Jan. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. |
Cash and Equivalents | Cash and Equivalents The Company's cash balances are maintained in bank depositories and regularly exceed federally insured limits. The Company has not experienced any losses in connection with these balances. Also included in cash and equivalents are highly liquid investments, that are readily convertible into known amounts of cash, which are subject to an insignificant risk of change in value due to interest rate, quoted price or penalty on withdrawal and have a maturity of three months or less. |
Marketable Securities | Marketable Securities Marketable securities consist of certificates of deposits with original maturities of greater than three months and mutual funds. Certificates of deposit are considered held to maturity securities, which are measured at cost. Mutual funds are considered trading securities which are measured at fair value using prices obtained from pricing services. Any unrealized or realized gains and losses on the trading securities are recorded as part of other income (expense). At January 31, 2016, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $7,812,000 and $7,841,000, respectively, and certificates of deposit all with maturities of less than one year and approximate value of $5,500,000. At October 31, 2015, marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds with an approximate cost and fair market value of $6,257,000 and $6,241,000, respectively, and certificates of deposit all with maturities of less than one year and an approximate value of $7,000,000. For the periods ended January 31, 2016 and 2015, there was no other-than-temporary impairment recognized. For the three months ended January 31, 2016 and 2015, the Company recorded interest, dividends and net realized and unrealized gains and losses of approximately $99,000 and $83,000, respectively, from these investments part of other income (expense). |
Receivables | Receivables Credit sales are made primarily to one customer and no collateral is required. The Company carries these accounts receivable at original invoice amount with no allowance for doubtful accounts due to the historical collection rates on these accounts. |
Investments | Investments The Company has less than a 20% investment interest in five companies in related industries. These investments are being accounted for by the equity method of accounting under which the Company's share of net income is recognized as income in the Company's income statement and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. The investments are evaluated for indications of impairment on a regular basis. A loss would be recognized when the fair value is determined to be less than the carrying value. The fiscal years of Renewable Products Marketing Group, LLC (RPMG) and Guardian Energy Janesville, LLC end on September 30 and the fiscal years of Absolute Energy, LLC, Homeland Energy Solutions, LLC and Lawrenceville Tank, LLC end on December 31. The Company consistently follows the practice of recognizing the net income based on the most recent reliable data. Therefore, the net income which is reported in the Company's income statement for the period ended January 31, 2016, for all companies, is based on the investee's results for the three months ended December 31, 2015. |
Revenue and Cost Recognition | Revenue and Cost Recognition Revenue from the sale of the Company's products is recognized at the time title to the goods and all risks of ownership transfer to the customers. This generally occurs upon shipment, loading of the goods or when the customer picks up the goods. Collectability of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers. Interest income is recognized as earned. Shipping costs incurred by the Company in the sale of ethanol, distiller grains and corn oil are not specifically identifiable and as a result, revenue from the sale of ethanol, distiller grains and corn oil are recorded based on the net selling price reported to the Company from its marketer. Railcar lease costs incurred by the Company in the sale and shipment of distiller grain products are included in cost of goods sold. |
Inventory | Inventory Inventories are generally valued at the lower of weighted average cost or net realized value. In the valuation of inventories and purchase commitments, net realizable value is defined as estimated selling price in the ordinary course of business less reasonable predictable costs of completion, disposal and transportation. Effective November 1, 2015, the Company adopted Accounting Standards Update 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring the measurement of inventory at the lower of cost or net realizable value. The adoption of this standard did not have a material effect on the financial statements. |
Property and Equipment | Property & Equipment Property and equipment are stated at historical cost. Significant additions and betterments are capitalized, while expenditures for maintenance and repairs are charged to operations when incurred. The Company uses the straight-line method of computing depreciation over the estimated useful lives between 3 and 40 years. The Company reviews its property and equipment for impairment whenever events indicate that the carrying amount of the assets may not be recoverable. If circumstances require a long-lived asset to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Investment in commodities contracts, derivative instruments and hedging activities | Investment in commodities contracts, derivative instruments and hedging activities The Company evaluates its contracts to determine whether the contracts are derivative instruments. Certain contracts that meet the definition of a derivative may be exempted from derivative accounting and treated as normal purchases or normal sales if documented as such. Normal purchases and normal sales are contracts that provide for the purchase or sale of something other than a financial instrument or derivative instrument that will be delivered in quantities expected to be used or sold over a reasonable period in the normal course of business. The Company enters into short-term cash, option and futures contracts as a means of securing corn and natural gas for the ethanol plant and managing exposure to changes in commodity and energy prices. The Company occasionally also enters into derivative contracts to hedge its exposure to price risk as it relates to ethanol sales. As part of its risk management process, the Company uses futures and option contracts through regulated commodity exchanges or through the over-the-counter market to manage its risk related to pricing of inventories. All of the Company's derivatives, other than those excluded under the normal purchases and sales exclusion, are designated as non-hedge derivatives, with changes in fair value recognized in net income. Although the contracts are economic hedges of specified risks, they are not designated or accounted for as hedging instruments. Realized and unrealized gains and losses related to derivative contracts related to corn and natural gas are included as a component of cost of goods sold and derivative contracts related to ethanol are included as a component of revenues in the accompanying financial statements. The fair values of contracts are presented on the accompanying balance sheet as derivative instruments net of cash due from/to broker. |
Net income (loss) per unit | Net income per unit Basic and diluted earnings per unit are computed using the weighted-average number of Class A and B units outstanding during the period. |
Fair Value | Fair Value Financial instruments include cash and equivalents, certificates of deposit, marketable securities, receivables, accounts payable, accrued expenses and derivative instruments. The fair value of marketable securities and derivative financial instruments is based on quoted market prices. The fair value, determined using level 3 inputs, of other current financial instruments is estimated to approximate carrying value due to the short-term nature of these instruments. |
Risks and Uncertainties | Risks and Uncertainties The Company has certain risks and uncertainties that it will experience during volatile market conditions, which can have a severe impact on operations. The Company's revenues are derived from the sale and distribution of ethanol and distiller grains to customers primarily located in the United States. Corn for the production process is supplied to the plant primarily from local agricultural producers and from purchases on the open market. For the three months ended January 31, 2016, ethanol sales accounted for approximately 80% of total revenue, distiller grains sales accounted for approximately 16% of total revenue, and corn oil sales accounted for approximately 4% of total revenue, while corn costs averaged approximately 81% of cost of goods sold. The Company's operating and financial performance is largely driven by the prices at which ethanol is sold and the net expense of corn. The price of ethanol is influenced by factors such as supply and demand, weather, government policies and programs, and unleaded gasoline and the petroleum markets with ethanol selling, in general, for less than gasoline at the wholesale level. Excess ethanol supply in the market, in particular, puts downward pressure on the price of ethanol. The Company's largest cost of production is corn. The cost of corn is generally impacted by factors such as supply and demand, weather, government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. |
Inventory (Tables) |
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Inventory [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory |
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Commitments, Contingencies and Agreements (Tables) |
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Commitments, Contingencies and Agreements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions |
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Risk Management (Tables) |
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Risk Management [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
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Long-term Purchase Commitment |
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Fair Value Measurements (Tables) |
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Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
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Investments (Tables) |
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Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments |
The Company recorded equity in net income of approximately (in 000's):
During the three months ended January 31, 2016, Guardian Energy made distributions in excess of the equity balance recorded by the Company. The excess distribution was approximately $961,000 and is recorded as part of income for the three months ended January 31, 2016. The following table shows the condensed financial information of Guardian Energy, which represents greater than 10% of the net income during certain periods presented.
The following table (in 000's) shows the condensed financial information of Homeland Energy Solutions. The Company's equitable portion of assets of Homeland Energy Solutions is greater than than 10% of the Company's assets for certain periods presented:
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Summary of Significant Accounting Policies Production (Details) gal in Millions |
3 Months Ended |
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Jan. 31, 2016
gal
| |
Product Information [Line Items] | |
Equity Method Investments, Number of Entities | 5 |
Ethanol [Member] | |
Product Information [Line Items] | |
Annual Production Capacity | 110 |
Summary of Significant Accounting Policies Marketable Securities (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2016 |
Jan. 31, 2015 |
Oct. 31, 2015 |
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Schedule of Held-to-maturity Securities [Line Items] | |||
Marketable Securities, Realized Gain (Loss) | $ 99,000 | ||
Marketable Securities, Unrealized Gain (Loss) | $ 83,000 | ||
Mutual Fund [Member] | Original Cost [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity Securities, Current | 7,812,000 | $ 6,257,000 | |
Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity Securities, Current | 7,841,000 | 6,241,000 | |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Held-to-maturity Securities, Current | $ 5,500,000 | $ 7,000,000 |
Property and Equipment (Details) - Property, Plant and Equipment [Member] |
3 Months Ended |
---|---|
Jan. 31, 2016 | |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Inventory (Details) - USD ($) |
Jan. 31, 2016 |
Oct. 31, 2015 |
---|---|---|
Inventory [Abstract] | ||
Raw Materials | $ 4,015,687 | $ 4,032,244 |
Work in Process | 1,157,341 | 1,208,661 |
Finished Goods | 2,886,471 | 1,625,600 |
Inventory | $ 8,059,499 | $ 6,866,505 |
Bank Financing Long Term Debt (Details) - Farm Credit Services of America [Member] - USD ($) |
Jan. 31, 2016 |
Oct. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 35,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | |
Debt Instrument, Interest Rate at Period End | 3.58% | |
Long-term Debt | $ 0 | $ 0 |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 10,000,000 |
Related Party Transactions (Details) - Director [Member] - USD ($) |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2016 |
Jan. 31, 2015 |
Oct. 31, 2015 |
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Related Party Transaction [Line Items] | |||
Related Party Transaction, Purchases from Related Party | $ 24,260,000 | $ 18,984,000 | |
Related Party Transaction, Due from (to) Related Party | $ 839,000 | $ 666,000 |
Commitments, Contingencies and Agreements (Details) - Investee [Member] - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2016 |
Jan. 31, 2015 |
Oct. 31, 2015 |
|
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 48,873 | $ 61,081 | |
Related Party Transaction, Expenses from Transactions with Related Party | 100 | $ 89 | |
Related Party Transaction, Due from (to) Related Party | $ 3,836 | $ 2,717 |
Risk Management Derivative Instruments - Balance Sheet Location (Details) - USD ($) |
Jan. 31, 2016 |
Oct. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $ 452,083 | $ 879,332 |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Liability [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Current | (241,000) | (237,000) |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Current | 278,000 | 58,000 |
Good Faith and Margin Deposits with Broker-Dealers | 415,000 | 1,058,000 |
Derivative Instruments and Hedges, Assets | $ 452,000 | $ 879,000 |
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