Golden Growers Cooperative Files Q2 2024 10-Q

TL;DR

Golden Growers Coop filed their 10-Q for Q2 2024. Financials look steady.

AI Summary

Golden Growers Cooperative filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the cooperative. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors and stakeholders with a crucial update on Golden Growers Cooperative's financial health and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures for a cooperative.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-08-13 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Golden Growers Cooperative (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240813 (date) — Filing date
• 0001489874 (company) — Central Index Key for Golden Growers Cooperative
• American Crystal (company) — Mentioned in relation to the cooperative

FAQ

Key Financial Figures

• $33.9 million — ecognized corn revenue under ASC 606 of $33.9 million and $54.3 million, respectively. Disag
• $54.3 m — enue under ASC 606 of $33.9 million and $54.3 million, respectively. Disaggregated reve
• $10.5 million — evenue from Method A deliveries totaled $10.5 million and $18.4 million, respectively; and re
• $18.4 m — A deliveries totaled $10.5 million and $18.4 million, respectively; and revenue from M
• $23.4 million — venue from Method B deliveries totaled $23.4 million and $35.9 million, respectively. NOTE
• $35.9 m — B deliveries totaled $23.4 million and $35.9 million, respectively. NOTE 7 DISTRIBUTI
• $1.3 million — oGold LLC for a base price ranging from $1.3 million to $1.7 million, depending on when Carg
• $1.7 m — base price ranging from $1.3 million to $1.7 million, depending on when Cargill notifi

Filing Documents

• form10-q.htm (10-Q) — 345KB
• exhibit31-1.htm (EX-31.1) — 8KB
• exhibit32-1.htm (EX-32.1) — 3KB
• 0001826466-24-000075.txt ( ) — 2327KB
• ggro-20240630.xsd (EX-101.SCH) — 20KB
• ggro-20240630_cal.xml (EX-101.CAL) — 28KB
• ggro-20240630_def.xml (EX-101.DEF) — 44KB
• ggro-20240630_lab.xml (EX-101.LAB) — 157KB
• ggro-20240630_pre.xml (EX-101.PRE) — 120KB
• form10-q_htm.xml (XML) — 322KB

FINANCIAL

PART I. FINANCIAL INFORMATION 1

Financial

Item 1. Financial 1 Item 2.

Managements Discussion and Analysis of Financial Condition and Results of

Managements Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 13

Controls

Item 4. Controls and Procedures 13

OTHER

PART II. OTHER INFORMATION 13

Legal

Item 1. Legal Proceedings 13

Risk

Item 1A. Risk Factors 13 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 13

Defaults

Item 3. Defaults Upon Senior Securities 13

Mine

Item 4. Mine Safety Disclosures 13

Other

Item 5. Other Information 13

Exhibits

Item 6. Exhibits 14

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements GOLDEN GROWERS COOPERATIVE CONDENSED BALANCE SHEETS (In Thousands) June 30, 2024 December 31, 2023 (Unaudited) (Audited) ASSETS Current Assets: Cash and Cash Equivalents $ 296 $ 2,097 Short-Term Investments 5,687 4,548 Other Current Assets 112 318 Total Current Assets 6,095 6,963 Long-Term Investments 1,799 2,788 Investment in ProGold LLC 16,240 17,073 Total Assets $ 24,134 $ 26,824 LIABILITIES AND MEMBERS EQUITY Current Liabilities Accrued Liabilities 27 421 Total Current Liabilities 27 421 Commitments and contingencies (Note 9) Members' Equity: Members Equity Membership Units, Authorized 60,000,000 Units, Issued and Outstanding 15,490,480 as of June 30, 2024 and December 31, 2023 24,141 26,436 Accumulated Other Comprehensive Loss ( 34 ) ( 33 ) Total Members Equity 24,107 26,403 Total Liabilities and Members Equity $ 24,134 $ 26,824 See Notes to Condensed Financial Statements 1 GOLDEN GROWERS COOPERATIVE CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In Thousands, Other Than Share and Per-Share Data) (Unaudited) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 OPERATIONS Corn Revenue $ 15,801 $ 23,022 $ 33,944 $ 54,305 Corn Expense ( 15,814 ) ( 23,047 ) ( 33,968 ) ( 54,344 ) Net Income from ProGold LLC 1,546 1,555 3,139 3,160 General & Administrative Expenses ( 145 ) ( 131 ) ( 360 ) ( 341 ) Net Income from Operations 1,388 1,399 2,755 2,780 Other Income 108 54 217 146 Net Income Before Income Tax $ 1,496 $ 1,453 $ 2,972 $ 2,926 Net Income $ 1,496 $ 1,453 $ 2,972 $ 2,926 Weighted Average Shares/Units Outstanding 15,490,480 15,490,480 15,490,480 15,490,480 Earnings per Share/Membership Unit Primary and Fully Diluted $ 0.10 $ 0.09 $ 0.19

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023 NOTE 1 BASIS OF PRESENTATION The condensed financial statements of Golden Growers Cooperative (the Cooperative) for the six-month periods ended June 30, 2024 and 2023 are unaudited and reflect all adjustments consisting of normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the interim period. The condensed financial statements should be read in conjunction with the financial statements and notes thereto, contained in the Cooperatives Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The results of operations for the six-month period ended June 30, 2024 are not necessarily indicative of the results for the entire fiscal year ending December 31, 2024. NOTE 2 EXPENSES The Cooperative contracts with Cargill, Incorporated (Cargill) in connection with the procurement of corn and other agency services for an annual fee of $ 60,000 , which is paid by the Cooperative to Cargill in quarterly 4 installments. The agreements between Cargill and the Cooperative terminate concurrently with Cargills Second Amended and Restated Facility Lease with ProGold Limited Liability Company (ProGold LLC). Effective March 1, 2022, the term of the Facility Lease was extended through December 31, 2026 . NOTE 3 PROGOLD LIMITED LIABILITY COMPANY Prior to March 1, 2022, the Cooperative and American Crystal Sugar Company (American Crystal) held a 49 % and 51 % interest in ProGold LLC, respectively. On March 1, 2022, pursuant to an Option Agreement by and between Cargill and American Crystal, and a Consent Agreement by and among the Cooperative, Cargill, and American Crystal, each effective January 1, 2018, Cargill purchased a 50 % interest in ProGold LLC from American Crystal, while the Cooperative purchased the remaining 1 % of ProGold LLC held by American Crystal. As a result of these tran

financial statements were issued for potential recognition or disclosure in the

financial statements were issued for potential recognition or disclosure in the June 30, 2024 financial statements and concluded that no subsequent events have occurred that would require recognition in the June 30, 2024 financial

Managements Discussion and Analysis of Financial

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

Forward Looking Statements The following discussion and analysis should be read in conjunction with the financial statements and notes thereto included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited financial statements and related notes thereto and Item 7,

Managements Discussion and Analysis of Financial Conditions and Results

Managements Discussion and Analysis of Financial Conditions and Results of Operations , included in the Cooperatives Annual Report Form on 10-K for the fiscal year ended December 31, 2023. This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements include, among others, those similar expressions. The Cooperatives actual results or actions could and likely will differ materially from those anticipated in the forward-looking Cooperatives joint ownership interest in ProGold LLC following Cargills acquisition of a 50% interest in ProGold LLC; (ii) fluctuations in the market price per bushel of corn, including as a result of global armed conflicts, severe weather events and other natural conditions, changes to supply and demand, or other factors; (iii) the impact of severe weather events and other natural conditions on ProGold LLCs facility or operations and/or Members choice of delivery method; (iv) the effect of inflation as well as general economic conditions; (v) our expectations with respect to accessing our current debt facility or any other debt facility or other capital sources in the future; (vi) our beliefs regarding the adequacy of our cash on hand to fund working capital and other general corporate expenses; and (vii) other factors described from time to time in the Cooperatives Securities and Exchange Commission filings. The Cooperative does not intend to update the forward-looking required by law and qualifies all of its forward-looking statements by these cautionary statements. Overview Golden Growers Cooperative is a value-added agricultural cooperative association governed under Minnesota Statutes Chapter 308B. The Cooperative is owned by 1,451 membe

of the Cooperatives Annual Report on Form 10-K for the fiscal year ended

Item 1 of the Cooperatives Annual Report on Form 10-K for the fiscal year ended December 31, 2023. ProGold Facility Lease. ProGold LLC leases its corn wet milling facility to Cargill, which uses the facility to process corn into high fructose corn syrup. In connection with the Option exercise, ProGold LLC and Cargill entered into that certain First Amendment to Second Amended and Restated Facility Lease, effective March 1, 2022, which extended the term of the Facility Lease through December 31, 2026. Membership and Delivery Obligations. Any person residing in the United States can own membership units of the Cooperative (Units) as long as that person delivers or provides for the delivery of corn for processing at theProGold LLC facility. Ownership of Units requires members to deliver bushels of corn to the Cooperative for processing in proportion to the number of Units each member holds. Currently, 15,490,480 Units are issued and outstanding. The Cooperatives income and losses are allocated to its members based on the volume of corn they deliver. Subject to certain limitations, as long as a member patronizes the Cooperative by delivering one (1) bushel of corn for each Unit held by the member, the member will be allocated a corresponding portion of the Cooperatives income (or loss). In this way, the Cooperative operates on a cooperative basis. To hold Units, a member is required to execute a Uniform Member Agreement that obligates the member to deliver corn to the Cooperative and an Annual Delivery Agreement by which each member annually elects the members method to deliver corn - either Method A or Method B, or a combination of both. Under Method A, a member is required to physically deliver the required bushels of corn to the Cooperative either at the facility or another location designated by the Cooperative. Under Method B, a member appoints the Cooperative as its agent to arrange for the acquisition and delivery of the required bushels of corn on the member

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