Golden Growers Cooperative, a company engaged in the marketing of members' corn and holding a significant interest in ProGold LLC, has released its Form 10-Q report for the third quarter of 2023. The report provides a detailed overview of the company's financial performance and operational highlights for the nine-month period ended September 30, 2023.
Financial Highlights
- Corn Revenue: $71.8 million, a decrease of 13% year to date due primarily to a decrease in the price per bushel of corn sold compared to the same period in 2022.
- Net Income from Operations: $3.976 million for the nine months ended September 30, 2023, compared to $4.758 million during the same period in 2022, reflecting a decrease in ProGold's lease revenue.
- Net Income: $4.033 million for the nine months ended September 30, 2023, compared to $4.914 million during the same period in 2022, primarily due to decreased ProGold LLC distributions.
- Earnings per Share/Membership Unit: $0.26 for the nine months ended September 30, 2023, compared to $0.32 during the same period in 2022.
- General & Administrative Expenses: $479,000 for the nine months ended September 30, 2023, compared to $421,000 during the same period in 2022, primarily due to additional accounting and consulting expenses.
- Other Income (Loss): $57,000 for the nine months ended September 30, 2023, compared to $156,000 during the same period in 2022, primarily due to realized losses on the sale of investments.
Business Highlights
- Revenue Segments: The Cooperative derives revenue from two primary sources: operations related to the marketing of members’ corn and income from its membership interest in ProGold LLC. For the nine-month period ended September 30, 2023, revenue from Method A deliveries totaled $21.4 million, while revenue from Method B deliveries totaled $50.4 million.
- Sales Units: During the nine-month period ended September 30, 2023, the Cooperative sold approximately 11.8 million bushels of corn. Members delivered 3.4 million bushels using Method A and 8.4 million bushels using Method B.
- Ownership in ProGold LLC: As of March 1, 2022, the Cooperative and Cargill each hold a 50% interest in ProGold LLC. This ownership structure allows the Cooperative to receive 50% of any cash distributions from ProGold LLC.
- ProGold Facility Lease: ProGold LLC leases its corn wet milling facility to Cargill, which processes corn into high fructose corn syrup. The lease term extends through December 31, 2026.
- Membership and Delivery Obligations: Members are required to deliver corn to the Cooperative for processing in proportion to their membership units. For fiscal year 2023, members elected to deliver 27.5% of their corn by Method A and 72.5% by Method B.
- Future Outlook: Management expects that the Cooperative’s cash and cash equivalents, together with available borrowings under the line of credit, will be sufficient to fund its operations for the foreseeable future, including at least the next twelve months.
SEC Filing: