x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. | |
For the quarterly period ended | July 31, 2019 | |
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 |
Emerging Growth Company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Page Number | |
ASSETS | July 31, 2019 | October 31, 2018 | ||||||
(Unaudited) | ||||||||
Current Assets | ||||||||
Cash and equivalents | $ | 8,912,248 | $ | 9,322,805 | ||||
Marketable securities | 856,698 | 10,559,242 | ||||||
Accounts receivable | 7,123,154 | 1,085,581 | ||||||
Other receivables | 360,625 | 3,784,114 | ||||||
Derivative instruments | 1,666,339 | 804,952 | ||||||
Inventory | 8,428,443 | 6,876,956 | ||||||
Prepaid expenses and other | 3,004,433 | 2,730,444 | ||||||
Total current assets | 30,351,940 | 35,164,094 | ||||||
Property and Equipment | ||||||||
Land and land improvements | 14,319,211 | 12,961,713 | ||||||
Building and grounds | 31,319,540 | 31,319,540 | ||||||
Grain handling equipment | 16,046,157 | 16,046,157 | ||||||
Office equipment | 456,566 | 275,086 | ||||||
Plant and process equipment | 125,982,511 | 108,786,485 | ||||||
Construction in progress | 2,915,656 | 12,887,773 | ||||||
191,039,641 | 182,276,754 | |||||||
Less accumulated depreciation | 115,951,660 | 108,397,948 | ||||||
Net property and equipment | 75,087,981 | 73,878,806 | ||||||
Other Assets | ||||||||
Investments | 24,941,420 | 25,719,513 | ||||||
Other assets | 450,497 | 509,866 | ||||||
Total other assets | 25,391,917 | 26,229,379 | ||||||
Total Assets | $ | 130,831,838 | $ | 135,272,279 | ||||
LIABILITIES AND MEMBERS' EQUITY | July 31, 2019 | October 31, 2018 | ||||||
(Unaudited) | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 6,504,330 | $ | 4,465,376 | ||||
Accrued expenses | 2,939,474 | 2,801,329 | ||||||
Other current liabilities | 421,253 | 367,365 | ||||||
Total current liabilities | 9,865,057 | 7,634,070 | ||||||
Long-term Liabilities, deferred compensation | 457,932 | 536,414 | ||||||
Commitments and Contingencies | ||||||||
Members' Equity (19,873,000 units issued and outstanding) | 120,508,849 | 127,101,795 | ||||||
Total Liabilities and Members’ Equity | $ | 130,831,838 | $ | 135,272,279 | ||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
July 31, 2019 | July 31, 2018 | July 31, 2019 | July 31, 2018 | |||||||||||||
Revenues | $ | 51,773,780 | $ | 41,465,388 | $ | 147,578,817 | $ | 134,830,955 | ||||||||
Cost of Goods Sold | 53,275,986 | 40,632,307 | 148,131,565 | 131,595,219 | ||||||||||||
Gross Profit (Loss) | (1,502,206 | ) | 833,081 | (552,748 | ) | 3,235,736 | ||||||||||
Operating Expenses | 928,357 | 732,383 | 2,876,877 | 2,862,533 | ||||||||||||
— | ||||||||||||||||
Operating Income (Loss) | (2,430,563 | ) | 100,698 | (3,429,625 | ) | 373,203 | ||||||||||
Other Income (Expense) | ||||||||||||||||
Other income (expense) | 46,385 | 142,678 | 382,693 | (586,339 | ) | |||||||||||
Interest income (expense) | 53,263 | 7,982 | 165,574 | (571 | ) | |||||||||||
Equity in net income of investments | 657,049 | 1,189,013 | 1,256,662 | 3,657,785 | ||||||||||||
Total Other Income | 756,697 | 1,339,673 | 1,804,929 | 3,070,875 | ||||||||||||
Net Income (Loss) | $ | (1,673,866 | ) | $ | 1,440,371 | $ | (1,624,696 | ) | $ | 3,444,078 | ||||||
Basic & diluted net income (loss) per unit | $ | (0.08 | ) | $ | 0.07 | $ | (0.08 | ) | $ | 0.17 | ||||||
Weighted average units outstanding for the calculation of basic & diluted net income (loss) per unit | 19,873,000 | 19,873,000 | 19,873,000 | 19,873,000 | ||||||||||||
Distributions Per Unit for Class A & B | $ | — | $ | — | $ | 0.25 | $ | 0.75 | ||||||||
Members' Equity | |||
Balance - October 31, 2017 | $ | 135,635,246 | |
Net loss for the three-month period ended January 31, 2018 | (1,317,498 | ) | |
Member distribution | (14,904,750 | ) | |
Balance - January 31, 2018 | 119,412,998 | ||
Net income for the three-month period ended April 30, 2018 | 3,321,205 | ||
Balance - April 30, 2018 | 122,734,203 | ||
Net income for the three-month period ended July 31, 2018 | 1,440,371 | ||
Balance - July 31, 2018 | $ | 124,174,574 |
Members' Equity | |||
(Unaudited) | |||
Balance - October 31, 2018 | $ | 127,101,795 | |
Net loss for the three-month period ended January 31, 2019 | (1,179,271 | ) | |
Member distributions | (4,968,250 | ) | |
Balance - January 31, 2019 | 120,954,274 | ||
Net income for the three-month period ended April 30, 2019 | 1,228,441 | ||
Balance - April 30, 2019 | 122,182,715 | ||
Net loss for the three-month period ended July 31, 2019 | (1,673,866 | ) | |
Balance - July 31, 2019 | $ | 120,508,849 |
Nine Months Ended | Nine Months Ended | |||||||
July 31, 2019 | July 31, 2018 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income (loss) | $ | (1,624,696 | ) | $ | 3,444,078 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 7,613,081 | 6,777,225 | ||||||
Unrealized (gain) loss on risk management & marketable securities | (1,222,886 | ) | 290,667 | |||||
Amortization of deferred revenue | — | (65,335 | ) | |||||
Cancellation of note receivable | — | 599,421 | ||||||
Change in accretion of interest on grant & note receivable | (2,326 | ) | (11,959 | ) | ||||
Distributions in excess of earnings from investments | 778,093 | 434,636 | ||||||
Proceeds from insurance claims and business interruption | 3,000,000 | — | ||||||
Change in deferred compensation | (78,482 | ) | 61,547 | |||||
Change in assets and liabilities | ||||||||
Accounts receivable | (6,037,573 | ) | (606,303 | ) | ||||
Inventory | (1,551,487 | ) | (2,325,607 | ) | ||||
Prepaid expenses and other | 67,160 | (159,136 | ) | |||||
Accounts payable | 2,277,933 | 739,622 | ||||||
Accrued expenses | 138,145 | (10,577 | ) | |||||
Net cash provided by operating activities | 3,356,962 | 9,168,279 | ||||||
Cash Flows from Investing Activities | ||||||||
Capital expenditures | (8,947,978 | ) | (16,079,403 | ) | ||||
Purchase of marketable securities | (7,515 | ) | (34,645 | ) | ||||
Proceeds from sale of marketable securities | 10,071,558 | 9,084,777 | ||||||
Net cash provided by (used in) investing activities | 1,116,065 | (7,029,271 | ) | |||||
Cash Flows from Financing Activities | ||||||||
Distributions to members | (4,968,250 | ) | (14,904,750 | ) | ||||
Payments received on grant receivable | 84,666 | 171,330 | ||||||
Net cash (used in) financing activities | (4,883,584 | ) | (14,733,420 | ) | ||||
Net Decrease in Cash and Equivalents | (410,557 | ) | (12,594,412 | ) | ||||
Cash and Equivalents – Beginning of Period | 9,322,805 | 17,518,187 | ||||||
Cash and Equivalents – End of Period | $ | 8,912,248 | $ | 4,923,775 | ||||
Supplemental Cash Flow Information | ||||||||
Cash paid for interest | $ | 38,215 | $ | 43,805 | ||||
Supplemental Disclosure of Noncash Operating, Investing & Financing Activities | ||||||||
Accounts payable related to construction in progress | $ | 1,065,957 | $ | 618,853 |
Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net earnings (loss) on marketable securities | $ | 46,000 | $ | 143,000 | $ | 313,000 | $ | (79,000 | ) | |||||||
Marketable Securities | ||||||||||||||||
As of | Cost | Fair Market Value | ||||||||||||||
July 31, 2019 | $ | 762,000 | $ | 857,000 | ||||||||||||
October 31, 2018 | $ | 10,857,000 | $ | 10,559,000 |
July 31, 2019 | October 31, 2018 | |||||||
Raw Materials | $ | 4,482,946 | $ | 2,859,081 | ||||
Work in Process | 1,887,542 | 1,232,248 | ||||||
Finished Goods | 2,057,955 | 2,785,627 | ||||||
Totals | $ | 8,428,443 | $ | 6,876,956 |
Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Sales ethanol | $ | 42,956,000 | $ | 33,153,000 | $ | 116,689,000 | $ | 107,071,000 | ||||||||
Sales distiller grains | 7,665,000 | 6,925,000 | 26,073,000 | 22,597,000 | ||||||||||||
Sales corn oil | 1,955,000 | 1,522,000 | 5,707,000 | 5,576,000 | ||||||||||||
Marketing fees-ethanol | $ | 61,000 | $ | 66,000 | $ | 183,000 | $ | 198,000 | ||||||||
Marketing fees-distiller grains | 62,000 | 55,000 | 199,000 | 170,000 | ||||||||||||
Marketing fees-corn oil | 15,000 | 13,000 | 45,000 | 45,000 | ||||||||||||
As of | July 31, 2019 | October 31, 2018 | ||||||||||||||
Amount due from RPMG | $ | 7,093,000 | $ | 1,080,000 |
Income Statement Classification | Realized Gain (Loss) | Change in Unrealized Gain (Loss) | Total Gain (Loss) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Commodity Contracts for the | Revenue | $ | (335,000 | ) | $ | (328,000 | ) | $ | (663,000 | ) | ||||
three months ended July 31, 2019 | Cost of Goods Sold | (1,477,000 | ) | 1,356,000 | (121,000 | ) | ||||||||
Total | $ | (1,812,000 | ) | $ | 1,028,000 | $ | (784,000 | ) | ||||||
Commodity Contracts for the | Revenue | $ | — | $ | — | $ | — | |||||||
three months ended July 31, 2018 | Cost of Goods Sold | 1,511,000 | 993,000 | 2,504,000 | ||||||||||
Total | $ | 1,511,000 | $ | 993,000 | $ | 2,504,000 | ||||||||
Commodity Contracts for the | Revenue | $ | (438,000 | ) | $ | (25,000 | ) | $ | (463,000 | ) | ||||
nine months ended July 31, 2019 | Cost of Goods Sold | (617,000 | ) | 756,000 | 139,000 | |||||||||
Total | $ | (1,055,000 | ) | $ | 731,000 | $ | (324,000 | ) | ||||||
Commodity Contracts for the | Revenue | $ | — | $ | — | $ | — | |||||||
nine months ended July 31, 2018 | Cost of Goods Sold | 1,585,000 | 24,000 | 1,609,000 | ||||||||||
Total | $ | 1,585,000 | $ | 24,000 | $ | 1,609,000 |
Balance Sheet Classification | July 31, 2019 | October 31, 2018 | ||||||||
Futures and option contracts through July 2020 | ||||||||||
In gain position | $ | 2,514,000 | $ | 801,000 | ||||||
In loss position | (1,322,000 | ) | (340,000 | ) | ||||||
Cash held by broker | 474,000 | 344,000 | ||||||||
Current Asset | $ | 1,666,000 | $ | 805,000 |
Commitments Through | Amount | |||||
Sale commitments | ||||||
Corn Oil - fixed price | August 2019 | $ | 994,000 | |||
Distiller Grains - fixed price | August 2019 | 2,128,000 | ||||
Purchase commitments | ||||||
Corn - fixed price | May 2020 | $ | 10,349,000 | |||
Corn - basis contract | June 2020 | 11,079,000 | ||||
Natural gas - fixed price | April 2021 | 7,513,000 |
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Marketable securities: | ||||||||||||||||
Assets, July 31, 2019 | $ | 857,000 | $ | 857,000 | $ | — | $ | — | ||||||||
Assets, October 31, 2018 | 10,559,000 | 10,559,000 | — | — | ||||||||||||
Derivative financial instruments: | ||||||||||||||||
July 31, 2019 | ||||||||||||||||
Assets | $ | 2,514,000 | $ | 1,999,000 | $ | 515,000 | $ | — | ||||||||
Liabilities | (1,322,000 | ) | (401,000 | ) | (921,000 | ) | — | |||||||||
October 31, 2018 | ||||||||||||||||
Assets | $ | 801,000 | $ | 195,000 | $ | 606,000 | $ | — | ||||||||
Liabilities | (340,000 | ) | (22,000 | ) | (318,000 | ) | — |
Balance Sheet | June 30, 2019 | September 30, 2018 | ||||||||||||||
Current Assets | $ | 366,204 | $ | 309,869 | ||||||||||||
Other Assets | 265,621 | 268,900 | ||||||||||||||
Current Liabilities | 252,313 | 199,683 | ||||||||||||||
Long-term Debt | 71,636 | 63,535 | ||||||||||||||
Members’ Equity | 307,875 | 315,550 | ||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
Income Statement | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue | $ | 200,713 | $ | 205,722 | $ | 569,540 | $ | 575,325 | ||||||||
Gross Profit | 9,731 | 24,985 | 23,438 | 55,788 | ||||||||||||
Net Income | 8,612 | 21,658 | 15,411 | 47,629 |
Three Months Ended July 31, | Nine Months Ended July 31, | |||||||||||||||
Equity in Net Income | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Absolute Energy | $ | 237 | $ | 282 | $ | 475 | $ | 1,161 | ||||||||
Guardian Energy | — | — | — | 1,172 | ||||||||||||
Homeland Energy Solutions | 350 | 849 | 570 | 1,256 | ||||||||||||
Other | 70 | 58 | 212 | 69 | ||||||||||||
Total | $ | 657 | $ | 1,189 | $ | 1,257 | $ | 3,658 |
• | Demand destruction from the small refinery exemptions to the RFS issued by the EPA; |
• | The impact the Chinese distiller grains and ethanol tariffs have on ethanol and distiller grains prices in the United States; |
• | 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 or reduction of the renewable fuels use requirements under the RFS; |
• | The impact of the ethanol export and import markets; |
• | The impact of the LCFS in certain parts of the country; |
• | Positions the EPA takes on topics such as RVO, RINS, and SREs; |
• | 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; |
• | 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. |
2019 | 2018 | |||||||||||
Income Statement Data | Amount | % | Amount | % | ||||||||
Revenues | $ | 51,773,780 | 100.0 | $ | 41,465,388 | 100.0 | ||||||
Cost of Goods Sold | 53,275,986 | 102.9 | 40,632,307 | 98.0 | ||||||||
Gross Profit (Loss) | (1,502,206 | ) | (2.9 | ) | 833,081 | 2.0 | ||||||
Operating Expenses | 928,357 | 1.8 | 732,383 | 1.8 | ||||||||
Operating Income (Loss) | (2,430,563 | ) | (4.7 | ) | 100,698 | 0.2 | ||||||
Other Income | 756,697 | 1.5 | 1,339,673 | 3.2 | ||||||||
Net Income (Loss) | $ | (1,673,866 | ) | (3.2 | ) | $ | 1,440,371 | 3.5 |
2019 | 2018 | |||||||||||
Income Statement Data | Amount | % | Amount | % | ||||||||
Revenues | $ | 147,578,817 | 100.0 | $ | 134,830,955 | 100.0 | ||||||
Cost of Goods Sold | 148,131,565 | 100.4 | 131,595,219 | 97.6 | ||||||||
Gross Profit (Loss) | (552,748 | ) | (0.4 | ) | 3,235,736 | 2.4 | ||||||
Operating Expenses | 2,876,877 | 1.9 | 2,862,533 | 2.1 | ||||||||
Operating Income (Loss) | (3,429,625 | ) | (2.3 | ) | 373,203 | 0.3 | ||||||
Other Income | 1,804,929 | 1.2 | 3,070,875 | 2.3 | ||||||||
Net Income (Loss) | $ | (1,624,696 | ) | (1.1 | ) | $ | 3,444,078 | 2.6 |
Nine Months Ended July 31, | |||||||
2019 | 2018 | ||||||
Net cash provided by operating activities | $ | 3,356,962 | $ | 9,168,279 | |||
Net cash provided by (used in) investing activities | 1,116,065 | (7,029,271 | ) | ||||
Net cash (used in) financing activities | (4,883,584 | ) | (14,733,420 | ) |
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 | 453,000 | MMBTU | 10% | $ | 118,000 | ||||||
Ethanol | 107,400,000 | Gallons | 10% | 14,993,000 | |||||||
Corn | 28,396,000 | Bushels | 10% | 11,498,000 |
(a) | The following exhibits are filed as part of this report. |
Exhibit No. | Exhibit | ||
31.1 | |||
31.2 | |||
32.1 | |||
32.2 | |||
101 | The following financial information from Golden Grain Energy, LLC's Quarterly Report on Form 10-Q for the quarter ended July 31, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) Balance Sheets as of July 31, 2019 and October 31, 2018, (ii) Statements of Operations for the three and nine months ended July 31, 2019 and 2018, (iii) Statements of Cash Flows for the nine months ended July 31, 2019 and 2018, and (iv) the Notes to Condensed Financial Statements.** |
GOLDEN GRAIN ENERGY, LLC | |||
Date: | September 11, 2019 | /s/ Curtis Strong | |
Curtis Strong | |||
Executive Vice-President | |||
(Principal Executive Officer) | |||
Date: | September 11, 2019 | /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: | September 11, 2019 | /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: | September 11, 2019 | /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: | September 11, 2019 |
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: | September 11, 2019 |
Inventory (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventory consisted of the following as of July 31, 2019 and October 31, 2018:
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Fair Value Measurements |
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Fair Value Disclosures [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 investments in short-term liquid investments (e.g. mutual funds), are classified within Level 1, 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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Summary of Significant Accounting Policies Note Receivable (Details) $ in Thousands |
Oct. 31, 2017
USD ($)
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Other Nonoperating Income (Expense) [Member] | |
Financing Receivable, Impaired [Line Items] | |
Notes receivable | $ 599 |
Investments (Tables) |
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Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method 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):
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Related Party Transactions (Details) - Director [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
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Jul. 31, 2019 |
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Jul. 31, 2019 |
Jul. 31, 2018 |
Oct. 31, 2018 |
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Related Party Transaction [Line Items] | |||||
Purchases from related parties | $ 11,331 | $ 8,187 | $ 30,800 | $ 31,083 | |
Amount owed to related parties | $ 518 | $ 518 | $ 420 |
Statements of Operations - USD ($) |
3 Months Ended | 9 Months Ended | ||
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Jul. 31, 2019 |
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Income Statement [Abstract] | ||||
Revenues | $ 51,773,780 | $ 41,465,388 | $ 147,578,817 | $ 134,830,955 |
Cost of Goods Sold | 53,275,986 | 40,632,307 | 148,131,565 | 131,595,219 |
Gross Profit | (1,502,206) | 833,081 | (552,748) | 3,235,736 |
Operating Expenses | 928,357 | 732,383 | 2,876,877 | 2,862,533 |
Operating Income (Loss) | (2,430,563) | 100,698 | (3,429,625) | 373,203 |
Other Income (Expense) | ||||
Other income (expense) | 46,385 | 142,678 | 382,693 | (586,339) |
Interest income (expense) | 53,263 | 7,982 | 165,574 | (571) |
Equity in net income of investments | 657,049 | 1,189,013 | 1,256,662 | 3,657,785 |
Total Other Income | 756,697 | 1,339,673 | 1,804,929 | 3,070,875 |
Net Income | $ (1,673,866) | $ 1,440,371 | $ (1,624,696) | $ 3,444,078 |
Basic & diluted net income per unit (usd per share) | $ (0.08) | $ 0.07 | $ (0.08) | $ 0.17 |
Weighted average units outstanding for the calculation of basic & diluted net income per unit (in shares) | 19,873,000 | 19,873,000 | 19,873,000 | 19,873,000 |
Distribution Per Unit (usd per share) | $ 0.00 | $ 0.00 | $ 0.25 | $ 0.75 |
Summary of Significant Accounting Policies |
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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, 2018, contained in the Company's annual report on Form 10-K for 2018. 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" and "the Company") is an approximately 120 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 The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term on the Balance Sheet, based on contractual maturity date and are stated at cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Marketable securities consisted of mutual funds invested in intermediate-term municipal and government bonds. For the periods ended July 31, 2019 and 2018, there was no other-than-temporary impairment recognized. 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. The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income as follows:
Accounts Receivable 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 statement of operations and added to the investment account. Distributions or dividends received from the investments are treated as a reduction of the investment account. Distributions or dividends received in excess of the carrying value are recognized as income in the statement of operations. 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 statement of operations for the period ended July 31, 2019, for all companies, is based on the investee's results for the three and nine months ended June 30, 2019. Note Receivable The Company carried a note receivable from an unrelated party with a balance of approximately $599,000 as of October 31, 2017, included in other assets. This balance included the original face value plus accrued interest. During 2018, the Company deemed the likelihood of collecting on the note receivable remote and wrote-off the entire balance, included in other expense on the statement of operations for the nine months ended July 31, 2018. Revenue and Cost Recognition In the first quarter of 2019, the Company adopted Accounting Standards Update (ASU) 2014-9, Revenue from Contracts with Customers (Topic 606). Under the ASU, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and with consideration of short-term nature of customer payments, the Company has adopted the practical expedient related to the financing component of the contract. The Company applied the five-step method outlined in the ASU to all contracts with customers and elected the modified retrospective implementation method. The Company generally has a single performance obligation in its arrangements with customers. The Company believes for its contracts with customers, control is transferred at a point in time, typically upon delivery to the customers. When the Company performs shipping and handling activities after the transfer of control to the customers (e.g., when control transfers prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. Adopting the practical expedient for contract costs, the Company expenses contract costs when incurred because the amortization period would have been less than one year. The implementation of the new standard does not have any material impact on the measurement or recognition of revenue of prior periods, however additional disclosures have been added in accordance with the ASU. Revenues from contracts with customers are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. The principal activities which we generate revenue include: sales of ethanol, sales of distiller grains and sales of corn oil. All revenue recognized in the income statement is considered to be revenue from contracts with customers. The disaggregation of revenue according to product line, along with accounts receivable from contracts with customers, is as disclosed in Note 5. 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. Based upon the timing of the transfer of control of our products to our customers, there are no contract assets or liabilities as of July 31, 2019. Inventory Inventories are generally valued at the lower of weighted average cost or net realizable 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. 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 asset group may not be recoverable. If circumstances require a long-lived asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset group to the carrying value of the asset group. If the carrying value of the asset group 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 earnings (loss) per unit Basic and diluted earnings (loss) 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, 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, as disclosed in Note 7. The fair value, determined using level 3 inputs, of all 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 and nine months ended July 31, 2019, ethanol sales accounted for approximately 80% and 78%, respectively, of total revenue, distiller grains sales accounted for approximately 16% and 18%, respectively, of total revenue and corn oil sales accounted for approximately 4% of total revenue while corn costs averaged approximately 76% 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, and government policies and programs. The Company's risk management program is used to protect against the price volatility of these commodities. Recent Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02 "Leases" ("ASU 2016-02"). ASU 2016-02 requires the recognition of lease assets and lease liabilities by lessees for all leases greater than one year in duration and classified as operating leases under previous GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and for interim periods within that fiscal year. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted cash flow basis; and (2) a "right of use" asset, which is an asset that represents the lessee's right to use the specified asset for the lease term. The Company is currently evaluating the impact of its pending adoption of the new standard on the financial statements but expects that upon adoption of this accounting standard, right of use assets and lease obligations recognized on the balance sheet will be material. |
Bank Financing Long Term Debt (Details) - Farm Credit Services of America [Member] - USD ($) |
Jul. 31, 2019 |
Oct. 31, 2018 |
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Debt Instrument [Line Items] | ||
Original maximum borrowings | $ 35,000,000 | |
Availability | $ 10,000,000 | |
Stated interest rate | 3.15% | |
Effective interest rate | 5.35% | |
Outstanding borrowings | $ 0 | $ 0 |
Summary of Significant Accounting Policies Marketable Securities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
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Jul. 31, 2019 |
Jul. 31, 2018 |
Jul. 31, 2019 |
Jul. 31, 2018 |
Oct. 31, 2018 |
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Debt Securities, Available-for-sale [Line Items] | |||||
Marketable securities, gain (loss) | $ 46,000 | $ 143,000 | $ 313,000 | $ (79,000) | |
Marketable securities | 857,000 | 857,000 | $ 10,559,000 | ||
Mutual Fund [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Marketable securities | $ 762,000 | $ 762,000 | $ 10,857,000 |
Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The Company recorded interest, dividends and net realized and unrealized gains (losses) from these investments as part of other income 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. 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 periods ended July 31, 2019 and 2018 and the fair value of derivatives as of July 31, 2019 and October 31, 2018:
As of July 31, 2019, the Company had the following approximate outstanding purchase and sale commitments, of which all sales commitments and approximately $2,855,000 of the purchase commitments were with related parties. As of July 31, 2019 and October 31, 2018 the Company recognized an impairment on our forward purchase contracts of approximately $400,000 and $394,000, respectively. This reduced inventory on the balance sheet and increased cost of good sold on the statement of operations.
As of July 31, 2019, the Company has fixed price futures and forward contracts in place for approximately 29% of its anticipated corn needs and 11% of its ethanol sales for the next 12 months with no open positions beyond that period. As of July 31, 2019, the Company has fixed price futures and forward contracts in place for approximately 85% of its natural gas needs for the next 12 months and approximately 22% of its natural gas needs for the next 24 months with no open positions beyond that period. |
Risk Management Derivative Instruments - Income Statement (Details) - Not Designated as Hedging Instrument [Member] - Commodity Contract [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 31, 2019 |
Jul. 31, 2018 |
Jul. 31, 2019 |
Jul. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | $ (1,812) | $ 1,511 | $ (1,055) | $ 1,585 |
Change in Unrealized Gain (Loss) | 1,028 | 993 | 731 | 24 |
Total Gain (Loss) | (784) | 2,504 | (324) | 1,609 |
Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | (335) | 0 | (438) | 0 |
Change in Unrealized Gain (Loss) | (328) | 0 | (25) | 0 |
Total Gain (Loss) | (663) | 0 | (463) | 0 |
Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) | (1,477) | 1,511 | (617) | 1,585 |
Change in Unrealized Gain (Loss) | 1,356 | 993 | 756 | 24 |
Total Gain (Loss) | $ (121) | $ 2,504 | $ 139 | $ 1,609 |
Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2019 |
Dec. 31, 2018 |
Jul. 31, 2018 |
Dec. 31, 2017 |
Jul. 31, 2019 |
Jul. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 30, 2018 |
|
Balance Sheet | |||||||||
Current Assets | $ 366,204 | $ 309,869 | |||||||
Other Assets | 265,621 | 268,900 | |||||||
Current Liabilities | 252,313 | 199,683 | |||||||
Long-term Debt | 71,636 | 63,535 | |||||||
Members’ Equity | 307,875 | $ 315,550 | |||||||
Income Statement | |||||||||
Revenue | 200,713 | $ 205,722 | $ 569,540 | $ 575,325 | |||||
Gross Profit | 9,731 | 24,985 | 23,438 | 55,788 | |||||
Net Income | $ 657 | $ 8,612 | $ 1,189 | $ 21,658 | $ 1,257 | $ 3,658 | $ 15,411 | $ 47,629 | |
Absolute Energy [Member] | |||||||||
Income Statement | |||||||||
Net Income | 237 | 282 | 475 | 1,161 | |||||
Guardian Energy [Member] | |||||||||
Income Statement | |||||||||
Net Income | 0 | 0 | 0 | 1,172 | |||||
Homeland Energy Solutions [Member] | |||||||||
Income Statement | |||||||||
Net Income | 350 | 849 | 570 | 1,256 | |||||
Other Investee [Member] | |||||||||
Income Statement | |||||||||
Net Income | $ 70 | $ 58 | $ 212 | $ 69 |
Document and Entity Information Document - shares |
9 Months Ended | |
---|---|---|
Jul. 31, 2019 |
Sep. 11, 2019 |
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Document and Entity Information [Abstract] | ||
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 | Jul. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 18,953,000 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Small Business | false |
Bank Financing |
9 Months Ended |
---|---|
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Bank Financing | BANK FINANCING The Company has entered into a master loan agreement with Farm Credit Services of America (FLCA) which includes revolving term loans with original maximum borrowings of $35 million and which currently has availability of $10 million and matures on February 1, 2020. Interest on the term loan is payable monthly at 3.15% above the one-month LIBOR (5.35% as of July 31, 2019). The borrowings are secured by substantially all the assets of the Company. The credit agreements are subject to covenants, including requiring the Company to maintain various financial ratios, as well as certain distribution limitations. As of July 31, 2019, the Company was in compliance with all of the loan covenants. Failure to comply with the protective loan covenants or maintain the required financial ratios may cause acceleration of any outstanding principal balances on the loans and/or imposition of fees and penalties. As of July 31, 2019 and October 31, 2018, the Company had no outstanding borrowings. |
Summary of Significant Accounting Policies Concentration Risk (Details) |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 31, 2019 |
Jul. 31, 2019 |
|
Revenue, Product and Service Benchmark [Member] | Ethanol [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 80.00% | 78.00% |
Revenue, Product and Service Benchmark [Member] | Distillers Grains [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16.00% | 18.00% |
Revenue, Product and Service Benchmark [Member] | Corn Oil [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 4.00% | 4.00% |
Cost of Goods and Service Benchmark [Member] | Corn [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 76.00% | 79.00% |
Summary of Significant Accounting Policies Production (Details) gal in Millions |
9 Months Ended |
---|---|
Jul. 31, 2019
company
gal
| |
Product Information [Line Items] | |
Number of entities | company | 5 |
Ethanol [Member] | |
Product Information [Line Items] | |
Annual production capacity | gal | 120 |
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