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Advanced Bioenergy, Llc (ABENU) SEC Filing 10-K Annual report for the fiscal year ending Friday, September 30, 2016

Advanced Bioenergy, Llc

CIK: 1325740 Ticker: ABENU

Exhibit 99.1

 

 

December 23, 2016

 

 

Dear ABE Unit Holder:

 

As we approach the New Year, we wanted to communicate a couple of items, including a tax estimate discussed below.  In addition we are including a copy of our fiscal third quarter Form 10Q.

 

Our fiscal 2016 began with sluggish margins.  The industry’s overall production was outpacing ethanol demand causing a steep increase in ethanol stocks which typically forces margins lower.  The first six months (October 2015 to March 2016) produced single digit EBITDA margins per gallon sold.  Margins improved in the second half of fiscal 2016.  Ethanol demand improved with the onset of the driving season coupled with low gas prices and increased export activity.

Our focus on improving our operations continued throughout fiscal 2016.  We completed several projects.  Two important projects completed were increased hammermill capacity at Aberdeen and corn oil extraction at Huron.  Corn oil production for fiscal 2017 is expected to exceed 20 million pounds.  In April 2016, we made the determination to close our smaller facility in Aberdeen which was producing approximately 8.5 million gallons annually.  The cost of operating and maintaining the smaller facility drove the decision to close it.  With the closure of this facility we turned our focus to increasing production at the second Aberdeen plant and the Huron plant.  Our efforts have resulted in replacing approximately 80% of the lost production.  Our Aberdeen plant is now producing at a rate of slightly more than 50 million gallons annually.

Annual Report and 10K

Our Form 10-K, which includes our audited financial statements, is available on our website under the tab “Investor Relations”.  We will be mailing our Annual Report, which includes the Form 10-K, and the Proxy Statement in early February 2017.  Our Annual Meeting will be held in Aberdeen, SD on March 9, 2017.  Details will be included with the mailing of the Proxy noted above.

Tax Estimate and K1 Timing

As a reminder, our tax year is based on a calendar year vs. our financial reporting year, which is October 1st to September 30th.  We are estimating taxable income per unit at 27 cents for calendar tax year 2016.  The mailing of K1’s is expected to occur the week of February 20th.

We appreciate your continued support as we work toward improving our business and increasing value for our unit holders.

Sincerely,

Richard R. Peterson

CEO

 


The following information was filed by Advanced Bioenergy, Llc (ABENU) on Friday, December 23, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Definitive Proxy Statement (Form DEF 14A)
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Advanced Bioenergy, Llc's Definitive Proxy Statement (Form DEF 14A) filed after their 2016 10-K Annual Report includes:

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Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Changes In Members' Equity
Consolidated Statements Of Operations
Debt
Debt (tables)
Debt - Additional Information (detail)
Debt - Schedule Of Maturities Of Long Term Debt (detail)
Debt - Summary Of Debt (detail)
Employee Benefit Plan
Employee Benefit Plan - Additional Information (detail)
Inventories
Inventories (tables)
Inventories - Summary Of Inventories (detail)
Lease Commitments And Contingencies
Lease Commitments And Contingencies (tables)
Lease Commitments And Contingencies - Additional Information (detail)
Lease Commitments And Contingencies - Schedule Of Future Minimum Rental Commitments (detail)
Major Customers
Major Customers (tables)
Major Customers - Additional Information (detail)
Major Customers - Sales And Receivables (detail)
Members' Equity
Members' Equity - Additional Information (detail)
One-time Termination Benefit
One-time Termination Benefit - Additional Information (detail)
Organization And Significant Accounting Policies
Organization And Significant Accounting Policies (policies)
Organization And Significant Accounting Policies (tables)
Organization And Significant Accounting Policies - Additional Information (detail)
Organization And Significant Accounting Policies - Estimated Useful Lives Of Property And Equipment (detail)
Parent Financial Statements
Parent Financial Statements (tables)
Parent Financial Statements - Additional Information (detail)
Parent Financial Statements - Balance Sheets (detail)
Parent Financial Statements - Balance Sheets (parenthetical) (detail)
Parent Financial Statements - Statements Of Cash Flows (detail)
Parent Financial Statements - Statements Of Operations (detail)
Property And Equipment
Property And Equipment (tables)
Property And Equipment - Summary Of Property And Equipment (detail)
Quarterly Financial Data (unaudited)
Quarterly Financial Data (unaudited) (tables)
Quarterly Financial Data (unaudited) - Quarterly Financial Data (detail)
Related Party Transactions
Related Party Transactions - Additional Information (detail)
Risk Management
Risk Management (tables)
Risk Management - Additional Information (detail)
Risk Management - Fixed Price Forward Contracts (detail)
Ticker: ABENU
CIK: 1325740
Form Type: 10-K Annual Report
Accession Number: 0001564590-16-030477
Submitted to the SEC: Fri Dec 23 2016 1:46:29 PM EST
Accepted by the SEC: Fri Dec 23 2016
Period: Friday, September 30, 2016
Industry: Industrial Organic Chemicals

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