Fri, Nov 8, 3:46 PM (101 days ago)
U.S. Premium Beef, LLC (USPB) reported a significant decline in financial performance for the third quarter of 2024 compared to the same period in 2023. For the thirteen weeks ended September 28, 2024, USPB recorded a net income of $3.5 million, down from $15.0 million in the prior year, primarily due to a decrease in equity income from its investment in National Beef Packing Company, LLC (NBP), which saw a drop in profitability attributed to reduced production volumes and lower beef processing margins. Total operating loss for the quarter was approximately $0.6 million, a slight improvement from $0.8 million previously. Revenue trends indicate no net sales for both the current and previous quarter, with operating cash flows significantly reduced to $0.2 million from $30.5 million year-over-year, largely due to decreased distributions from NBP. USPB’s cash and cash equivalents decreased to $38.8 million from $58.5 million, reflecting ongoing investment strategies including a $10 million increase in certificates of deposit. The company maintained compliance with its credit agreements, holding a $1.0 million revolving credit line. Legal uncertainties surrounding NBP’s antitrust litigation could impact future operations, but management remains optimistic about cash sufficiency for ongoing needs.