CHS Inc. Files Q3 2024 10-Q Report

Ticker: CHSCO · Form: 10-Q · Filed: Jul 10, 2024

Sentiment: neutral

Topics: 10-Q, quarterly-report, financials

TL;DR

CHS Inc. 10-Q filed for Q3 2024. Financials out.

AI Summary

CHS Inc. filed its 10-Q for the period ending May 31, 2024, reporting on its financial performance. The filing covers the third quarter and the first nine months of its fiscal year, detailing revenues, expenses, and other financial metrics. Specific financial figures and operational details for the period are provided within the report.

Why It Matters

This filing provides investors and stakeholders with an update on CHS Inc.'s financial health and operational performance for the third quarter of fiscal year 2024, influencing investment decisions and market perception.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the nature of the agricultural and energy sectors can introduce inherent volatility and risk.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter and nine months ended May 31, 2024.

What is the company's primary business classification?

CHS Inc. is classified under Standard Industrial Classification code 5150, Wholesale-Farm Product Raw Materials.

When was CHS Inc. incorporated or last changed its name?

The company was formerly known as CENEX HARVEST STATES COOPERATIVES until a name change on June 11, 1998, and prior to that, HARVEST STATES COOPERATIVES until December 12, 1996.

What is the company's fiscal year end?

CHS Inc.'s fiscal year ends on August 31.

What is the physical address of CHS Inc.?

The business and mailing address for CHS Inc. is 5500 CENEX DRIVE, INVER GROVE HEIGHTS, MN 55077.

Filing Stats: 4,510 words · 18 min read · ~15 pages · Grade level 15.9 · Accepted 2024-07-10 11:30:51

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page No. Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 2 Condensed Consolidated Balance Sheets as of Ma y 31 , 2024, and August 31, 2023 2 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended May 31 , 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended May 31 , 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended Ma y 31 , 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 45 Item 5. Other Information 45 Item 6. Exhibits 46

Signatures

Signatures 47 Unless the context otherwise requires, for purposes of this Quarterly Report on Form 10-Q, the words "CHS," "we," "us" and "our" refer to CHS Inc., a Minnesota cooperative corporation, and its subsidiaries as of May 31, 2024 .

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains, and our other CHS Inc. publicly available documents contain, and our officers, directors and representatives may from time to time make "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our businesses, financial condition and results of operations, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are discussed or identified in our filings made with the U.S. Securities and Exchange Commission, including in the "Risk Factors" discussion in Item 1A of CHS Annual Report on Form 10-K for the fiscal year ended August 31, 2023. These factors may include changes in commodity prices; the impact of government policies, mandates, regulations and trade agreements; global and regional political, economic, legal and other risks of doing business

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CHS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) May 31, 2024 August 31, 2023 (Dollars in thousands) ASSETS Current assets: Cash and cash equivalents $ 310,128 $ 1,765,286 Receivables 3,817,151 3,105,811 Inventories 3,305,167 3,215,179 Other current assets 1,027,818 1,042,373 Total current assets 8,460,264 9,128,649 Investments 3,893,649 3,828,872 Property, plant and equipment 5,032,713 4,869,373 Other assets 1,071,289 1,130,524 Total assets $ 18,457,915 $ 18,957,418 LIABILITIES AND EQUITIES Current liabilities: Notes payable $ 337,538 $ 547,923 Current portion of long-term debt 157,181 7,839 Accounts payable 2,696,898 2,930,607 Accrued expenses 864,484 773,054 Other current liabilities 1,153,091 1,639,771 Total current liabilities 5,209,192 5,899,194 Long-term debt 1,669,212 1,819,819 Other liabilities 665,194 786,016 Commitments and contingencies (Note 13) Equities: Preferred stock 2,264,038 2,264,038 Equity certificates 5,736,833 5,911,649 Accumulated other comprehensive loss ( 270,861 ) ( 265,395 ) Capital reserves 3,178,615 2,537,486 Total CHS Inc. equities 10,908,625 10,447,778 Noncontrolling interests 5,692 4,611 Total equities 10,914,317 10,452,389 Total liabilities and equities $ 18,457,915 $ 18,957,418 The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited). 2 Table of Contents CHS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 (Dollars in thousands) Revenues $ 9,608,983 $ 12,026,051 $ 30,087,121 $ 36,098,738 Cost of goods sold 9,141,188 11,351,711 28,608,484 34,160,996 Gross profit 467,795 674,340 1,478,637 1,937,742 Marketing, general and administrative expenses 316,435 273,238 866,721 749,829 Operating earnings 151,360 401,102 611,916 1,187,913 Interest expense 23,425 36,949 78,5

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