ANNUAL FINANCIAL REPORT

Transcription

1 ANNUAL FINANCIAL REPORT

2 PERSONNEL AND ORGANIZATIONAL DATA July 31, 2018 OFFICERS AND DIRECTORS Name Address District Term Expires Position Hal Clemensen... Aberdeen, SD... District President Joel Erickson... Langford, SD... District Director Marlin Nilsson... Mansfield, SD... District Director Phillip Shanley... Warner, SD... District Director Lance Hanson... Groton, SD... District Director Matt Johnson... Webster, SD... District Director Glen Crawford... Aberdeen, SD... District Director Mark Bushfield... Hitchcock, SD... District Director Ron Frericks... Northville, SD... District Second-Vice President Wallace Knock... Willow Lake, SD... District Secretary Jeff Lakner... Wessington, SD... District Director Chris Eymer... Reliance, SD... District Director David Salmen... Wessington Springs, SD... District Director Dale Swanson... Pukwana, SD... District Director Mike Clements... Miller, SD... District Director Steve Halverson... Pierre, SD... District Director Colby Beck... Artas, SD... District Director Dan Malsam... Roscoe, SD... District Director Larry Vetch... Onaka, SD... District Director Nathan Davis... Ipswich, SD... District Director Dale Gill... Java, SD... District Director Derek Merkel... Leola, SD... District Director Steve Pfeifer... McLaughlin, SD... District Director Quentin Larson... Pollock, SD... District Director Rick Osterday... Java, SD... District First-Vice President Ken Rau... Mobridge, SD... District Director LEADERSHIP TEAM Name Position Chris Pearson... Chief Executive Officer Mike Nickolas... Executive Vice-President & Chief Operating Officer, Grain Division John Husk... Chief Operating Officer Blake Bomesberger... Chief Financial Officer Dan Rosenbaum... Chief Information Officer Tracy Linbo... Senior Vice-President, Agronomy, Communications & Marketing Judy Stulken... Senior Vice-President, Organizational & Member Development ORGANIZATIONAL DATA Articles of Incorporation... Restated February 1, 2018 Under the Code of... South Dakota, as Amended Federal Identification Number

3 Independent Auditor s Report To the Board of Directors Agtegra Cooperative We have audited the accompanying consolidated financial statements of Agtegra Cooperative,, which comprise the consolidated balance sheet as of July 31, 2018, and the related consolidated statements of savings, members equity and cash flows for the year then ended, and the related notes to the consolidated financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statement in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion New York Ave., Suite 200 Des Moines, IA Phone: (515) Fax: (515)

4 Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Agtegra Cooperative,, as of July 31, 2018, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter We also have audited, in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheet of Agtegra Cooperative and all of its subsidiaries as of July 31, 2018, and the related consolidated statements of savings, members equity and cash flows for the year then ended (none of which is presented herein), and we expressed an unmodified opinion on those consolidated financial statements. Such consolidated financial statements are the general-purpose financial statements of Agtegra Cooperative and its subsidiaries, and the financial statements of parent company presented herein are not a valid substitute for those consolidated financial statements. November 19,

5 CONSOLIDATED BALANCE SHEET July 31, 2018 ASSETS CURRENT ASSETS Cash $ 740,991 Marketable Securities 1,826,105 Receivables Notes and Contracts 15,715,789 Trade Net of Allowance for Doubtful Accounts of $2,000,000 44,966,791 Grain in Transit 31,938,006 Unadvanced Loan Commitment 65,000,000 Other 55,611,588 Margin Account 7,954,138 Inventories Grain 158,128,497 Merchandise 89,279,263 Prepayments on Inventory 14,883,140 Prepaid Expenses 5,209,759 Deferred Income Taxes 1,318,208 Total Current Assets 492,572,275 PROPERTY, PLANT AND EQUIPMENT Land 21,364,081 Buildings and Equipment 625,309, ,673,685 Accumulated Depreciation (302,527,083) Undepreciated Cost 344,146,602 Construction and Purchases in Process 3,472,795 Total Property, Plant and Equipment 347,619,397 OTHER ASSETS Notes and Contracts 2,405,888 Finance Costs 127,585 Other Developmental Costs 39,500 Goodwill 730,840 Total Other Assets 3,303,813 INVESTMENTS Equity in Other Cooperatives 50,887,279 Investment in Other Companies 40,346,095 Total Investments 91,233,374 TOTAL ASSETS $ 934,728,859 The accompanying notes are an integral part of the consolidated financial statements. 4

6 CONSOLIDATED BALANCE SHEET July 31, 2018 LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES Checks in Excess of Bank Balance $ 17,617,677 Current Maturities of Long Term Debt Notes Payable Term 6,478,697 Notes Payable Seasonal 18,000,000 Notes Payable Patron Demand 12,012,983 Payables Trade 14,863,886 Unpaid Grain 210,635,917 Patron Credit Balances 16,513,200 Grain Contracts to Market/Other 28,145,478 Accrued Expenses Property Taxes 2,348,732 Interest 11,059,481 Accrued Compensated Absences 3,294,770 Other 4,694,609 Patronage Dividends Payable 4,000,000 Total Current Liabilities 349,665,430 LONG TERM LIABILTIES Notes Payable Term 174,936,431 Unpaid Grain 41,617,055 Total Long Term Liabilities 216,553,486 DEFERRED INCOME TAXES 7,892,360 MEMBERS' EQUITY Patrons Reserve 110,040,896 Retired Patrons Reserve 2,293,058 Equity Acquired in Merger 42,908,644 Reserve Capital 205,374,985 Total Members' Equity 360,617,583 TOTAL LIABILITIES AND MEMBERS EQUITY $934,728,859 The accompanying notes are an integral part of the consolidated financial statements. 5

7 CONSOLIDATED STATEMENT OF SAVINGS Year Ended July 31, 2018 Sales and Service Income $1,544,288,478 Cost of Goods Sold 1,379,376,337 Gross Savings on Sales and Service Income 164,912,141 Other Revenue 26,559,246 Total Gross Revenue 191,471,387 Operating Expenses, Including Interest 171,910,108 Operating Savings Local 19,561,279 Loss on Investment Buyout (475,971) Income from Investments 1,848,812 Patronage Dividend Income 2,216,787 Savings Before Taxes 23,150,907 Income Taxes Current (257,058) Deferred (9,141,420) Net Savings $ 32,549,385 DISTRUBUTION OF NET SAVINGS Patronage Dividend Provision Qualified Cash 40% $ 4,000,000 Deferred 60% 6,000,000 10,000,000 Capital Reserve 22,549,385 $ 32,549, New York Ave., Suite 200 Des Moines, IA Phone: (515) Fax: (515)