Committed to local growth
R
Committed to local growth Financial Report
2017
local growth
$
MILLION 1.7 MILLION 1.5 INCREASE IN NET SAVINGS
$
INCREASE IN WORKING CAPITAL
$
MILLION 1
$
IN
BACK TO MEMBERSHIP
$
657k
CASH $
BACK TO MEMBERSHIP THROUGH THE SECTION 199 TAX DEDUCTION
IMPROVED PATRONAGE RATES IN ALL CATEGORIES
2017 2016
2017 2016
2017 2016
2017 2016
1.22 %
FEED
2.24 %
2.83¢ /GAL
PETROLEUM
5.08¢ /GAL
1.17 %
AGRONOMY
2.78 %
5.72 %
1.24¢ /BU
2.54¢ /BU
GRAIN
11.95%
MERCH & SERVICES
2017 2016
Committed to local growth Thank you for your business and support in 2017. Your patronage in Viafield is critical to a strong local cooperative, supporting Viafield families, and strengthening your local communities. Over the past year all of us have worked to make Viafield your provider of choice by being the trusted advisor for all your farming needs. Our success is dependent on your success and we are driven with purpose to transform your company to better deliver products, services, technology, and innovation to ensure your success. 2017 was a year of significant customer growth and improved financial performance at Viafield. Revenues increased $2.4 million or 9.1% demonstrating solid results in each of our core businesses. We efficiently reduced expenses by $823,000 or 2.8% during the same period, allowing us to accomplish a Net Savings for the year of $2.5 million, an increase of $1.7 million over last year. Our balance sheet and financial strength remain very strong growing our working capital by $1.5 million. This year we are pleased to announce greater patronage allocations returning $2 million in equity and $500,000 in cash to members. The board also approved the distribution of $500k in non-qualified equity bringing total cash back to $1 million. Lastly, Viafield is passing $657,000 in section 199 deductions back to members this year. Your local coop is a valuable asset returning resources back to members and strengthening our communities. Viafield is also growing locally by investing in fixed assets to serve members now and well into the future. This year we completed construction of a $7 million state of the art dry fertilizer handling facility and seed treatment plant in Randalia, Iowa. These investments replace several worn out assets and positions Viafield for future expansion delivering industry leading capacity and speed. Viafield likewise completed a strategic project to improve service and reduce cost refreshing our entire application equipment fleet. This investment delivers the latest technology bringing 22 brand new units to the farm, while reducing Viafield’s total cost of ownership by over $500,000 during the next five years. We divested non-performing assets selling our Lamont, Iowa elevator during the past fiscal year. Our strategy is to own, operate and invest in assets focused on fueling growth opportunities for our members and the next generation of cooperative owners and customers. The coming year will be an exciting one for Viafield as we focus on local growth by ensuring your farming success. Although we continue to change Viafield to be relevant and viable for the future, we will not change the basic tenets of our long history: our commitment to a financially strong local cooperative adding measurable value to our owners. Again, thank you for your support and patronage in 2017. We look forward to serving you again in 2018!
Rick Matt
Board Chairman
Chris Ludwig
Chief Executive Officer
Who we are Our Vision Serve as the trusted advisor for the customer of the future through our talented team by delivering products, services, technology and innovation ensuring their profitability and ours.
Our Mission Committed to be the full-service provider of choice, enhancing the success of our customers, team and communities.
Our values Ethical - We embrace honesty &
integrity in everything we do.
Knowledge - We seek out new
information and ideas to deliver solutions to customers.
Service-oriented - We are
committed to responding to others needs in a timely and accurate manner.
Teamwork - We are respectful and
supportive while communicating openly and engaging others.
Leadership - We are positive
and professional while acting strategically and embracing change.
Results - We are accountable
and efficiently execute to build sustainable growth and profitability.
Statement of Savings Statement of savings Sales Cost of Goods Sold Gross Savings on Sales Other Revenue Total Gross Revenue Operating Expenses, Including Interest Savings before Income Taxes Income Taxes Current Deferred Net Savings
2017
2016
$224,096,469 207,495,730 16,600,739 14,201,477 30,802,216
$252,689,651 238,440,825 14,248,826 15,875,102 30,123,928
28,433,057
29,256,442
2,369,159
867,486
262,152 (376,979)
28,750 58,984
$2,483,986
$779,752
2,500,000 (16,014) $2,483,986
1,250,000 (470,248) $779,752
500,000 2,000,000
0 1,250,000
distribution of net savings Patronage Dividends Deferred - Non-Qualified Retained Savings Net Savings
Patronage allocation Cash Deferred - Non-Qualified Patronage Rates Grain Merchandise & Services Agronomy Petroleum Feed
2.54 Cents/BU 1.24 Cents/BU 5.72% 11.95% 1.17% 2.78% 5.08 Cents/Gal 2.83 Cents/Gal 1.22% 2.24%
Balance Sheet 2017
2016
$35,678
$3,880,915
16,449
95,232
7,373,056 878,131 2,935,897 0
6,339,049 868,750 1,968,976 0
9,737,087 8,847,735 591,574 897,546 909,885 65,332
3,679,026 10,040,738 714,858 1,080,115 59,715 24,169
32,288,370 15,303,329 3,960,957 $19,264,286
28,751,543 7,813,334 10,000,000 $17,813,337
$1,538,727 81,143,007 82,681,734 (42,852,564) 39,829,170 6,533,812 46,362,982
$1,564,033 85,786,326 87,350,359 (41,853,903) 45,496,456 522,487 46,018,943
$33,614
$37,975
Equity in Other Organizations
$20,749,071
$20,432,830
TOTAL ASSETS
$99,434,037
$95,241,291
CurrenT assets Cash Receivables Notes & Contracts Trade-Net of Allowance for Doubtful Accts Grain in Transit Other Margin Deposits Inventories Grain Merchandise Petroleum Prepaid Commodities Prepaid Expenses Deferred Income Taxes Total Current Assets Working Capital Available Term Revolver Adjusted Working Capital
Property, plant & equipmentt Land Buildings and Equipment Total Land, Buildings and Equipment Accumulated Depreciation Undepreciated Cost Construction in Process Net Property, Plant and Equipment
Other assets Long-Term Notes & Contracts
investments
Balance Sheet 2017
2016
$708,915 600,000 1,262,977 0 2,444,491
$1,610,339 200,000 1,208,745 0 2,411,877
4,300,441 1,532,844 3,410,285 7,613
5,076,641 1,373,811 4,398,622 2,546,088
129,108 1,084,159 900,569 74,347 29,292 500,000 $16,985,041
85,336 1,086,810 896,702 0 43,238 0 $20,938,209
Current liabilities Checks Written in Excess of Bank Bal. Current Maturities of Long-Term Debt Current Maturities of Capital Lease Notes Payable-Operating Demand Notes Payables Trade Customer Credit Bal. & Prepaid Sales Unpaid Grain Margin Account Accrued Expenses Interest Payroll Property Taxes Income Taxes Other Patronage Dividends Payable Total Current Liabilities
Long-term liabilities - Net of current maturities Notes Payable Capital Lease Payable
$9,164,924 9,593,562
$1,708,428 10,856,539
Total Long-Term Liabilities Accrued Pension Costs Deferred Income Taxes
18,758,486 1,812,528 239,301
12,564,967 1,131,319 603,399
Member’s Equity - Capital Stock Class A & B Subscriptions Local Preferred Regional Preferred Allocated Patronage Dividends Non-Qualified Deferred Equity Paid in Capital Accumulated Other Comprehensive Income (Loss) Equity from Acquisition Retained Earnings Total Member’s Equity
502,000 46,885 6,158,130 8,377,995 2,000,000 6,409,006 191,688
504,000 47,485 6,225,111 8,484,233 1,250,000 5,159,591 191,688
(6,519,671) 18,254,816 26,217,832 $61,638,681
(6,346,782) 18,254,816 26,233,255 $60,003,397
TOTAL LIABILITIES & MEMBER’S EQUITY
$99,434,037
$95,241,291
R
1001 Blunt Pkwy Charles City, Iowa 50616 641-715-1203 www.viafield.com © 2017 Viafield, a Cooperative. All rights reserved.
Committed to local growth Financial Report
2017
local growth
$
MILLION 1.7 MILLION 1.5 INCREASE IN NET SAVINGS
$
INCREASE IN WORKING CAPITAL
$
MILLION 1
$
IN
BACK TO MEMBERSHIP
$
657k
CASH $
BACK TO MEMBERSHIP THROUGH THE SECTION 199 TAX DEDUCTION
IMPROVED PATRONAGE RATES IN ALL CATEGORIES
2017 2016
2017 2016
2017 2016
2017 2016
1.22 %
FEED
2.24 %
2.83¢ /GAL
PETROLEUM
5.08¢ /GAL
1.17 %
AGRONOMY
2.78 %
5.72 %
1.24¢ /BU
2.54¢ /BU
GRAIN
11.95%
MERCH & SERVICES
2017 2016
Committed to local growth Thank you for your business and support in 2017. Your patronage in Viafield is critical to a strong local cooperative, supporting Viafield families, and strengthening your local communities. Over the past year all of us have worked to make Viafield your provider of choice by being the trusted advisor for all your farming needs. Our success is dependent on your success and we are driven with purpose to transform your company to better deliver products, services, technology, and innovation to ensure your success. 2017 was a year of significant customer growth and improved financial performance at Viafield. Revenues increased $2.4 million or 9.1% demonstrating solid results in each of our core businesses. We efficiently reduced expenses by $823,000 or 2.8% during the same period, allowing us to accomplish a Net Savings for the year of $2.5 million, an increase of $1.7 million over last year. Our balance sheet and financial strength remain very strong growing our working capital by $1.5 million. This year we are pleased to announce greater patronage allocations returning $2 million in equity and $500,000 in cash to members. The board also approved the distribution of $500k in non-qualified equity bringing total cash back to $1 million. Lastly, Viafield is passing $657,000 in section 199 deductions back to members this year. Your local coop is a valuable asset returning resources back to members and strengthening our communities. Viafield is also growing locally by investing in fixed assets to serve members now and well into the future. This year we completed construction of a $7 million state of the art dry fertilizer handling facility and seed treatment plant in Randalia, Iowa. These investments replace several worn out assets and positions Viafield for future expansion delivering industry leading capacity and speed. Viafield likewise completed a strategic project to improve service and reduce cost refreshing our entire application equipment fleet. This investment delivers the latest technology bringing 22 brand new units to the farm, while reducing Viafield’s total cost of ownership by over $500,000 during the next five years. We divested non-performing assets selling our Lamont, Iowa elevator during the past fiscal year. Our strategy is to own, operate and invest in assets focused on fueling growth opportunities for our members and the next generation of cooperative owners and customers. The coming year will be an exciting one for Viafield as we focus on local growth by ensuring your farming success. Although we continue to change Viafield to be relevant and viable for the future, we will not change the basic tenets of our long history: our commitment to a financially strong local cooperative adding measurable value to our owners. Again, thank you for your support and patronage in 2017. We look forward to serving you again in 2018!
Rick Matt
Board Chairman
Chris Ludwig
Chief Executive Officer
Who we are Our Vision Serve as the trusted advisor for the customer of the future through our talented team by delivering products, services, technology and innovation ensuring their profitability and ours.
Our Mission Committed to be the full-service provider of choice, enhancing the success of our customers, team and communities.
Our values Ethical - We embrace honesty &
integrity in everything we do.
Knowledge - We seek out new
information and ideas to deliver solutions to customers.
Service-oriented - We are
committed to responding to others needs in a timely and accurate manner.
Teamwork - We are respectful and
supportive while communicating openly and engaging others.
Leadership - We are positive
and professional while acting strategically and embracing change.
Results - We are accountable
and efficiently execute to build sustainable growth and profitability.
Statement of Savings Statement of savings Sales Cost of Goods Sold Gross Savings on Sales Other Revenue Total Gross Revenue Operating Expenses, Including Interest Savings before Income Taxes Income Taxes Current Deferred Net Savings
2017
2016
$224,096,469 207,495,730 16,600,739 14,201,477 30,802,216
$252,689,651 238,440,825 14,248,826 15,875,102 30,123,928
28,433,057
29,256,442
2,369,159
867,486
262,152 (376,979)
28,750 58,984
$2,483,986
$779,752
2,500,000 (16,014) $2,483,986
1,250,000 (470,248) $779,752
500,000 2,000,000
0 1,250,000
distribution of net savings Patronage Dividends Deferred - Non-Qualified Retained Savings Net Savings
Patronage allocation Cash Deferred - Non-Qualified Patronage Rates Grain Merchandise & Services Agronomy Petroleum Feed
2.54 Cents/BU 1.24 Cents/BU 5.72% 11.95% 1.17% 2.78% 5.08 Cents/Gal 2.83 Cents/Gal 1.22% 2.24%
Balance Sheet 2017
2016
$35,678
$3,880,915
16,449
95,232
7,373,056 878,131 2,935,897 0
6,339,049 868,750 1,968,976 0
9,737,087 8,847,735 591,574 897,546 909,885 65,332
3,679,026 10,040,738 714,858 1,080,115 59,715 24,169
32,288,370 15,303,329 3,960,957 $19,264,286
28,751,543 7,813,334 10,000,000 $17,813,337
$1,538,727 81,143,007 82,681,734 (42,852,564) 39,829,170 6,533,812 46,362,982
$1,564,033 85,786,326 87,350,359 (41,853,903) 45,496,456 522,487 46,018,943
$33,614
$37,975
Equity in Other Organizations
$20,749,071
$20,432,830
TOTAL ASSETS
$99,434,037
$95,241,291
CurrenT assets Cash Receivables Notes & Contracts Trade-Net of Allowance for Doubtful Accts Grain in Transit Other Margin Deposits Inventories Grain Merchandise Petroleum Prepaid Commodities Prepaid Expenses Deferred Income Taxes Total Current Assets Working Capital Available Term Revolver Adjusted Working Capital
Property, plant & equipmentt Land Buildings and Equipment Total Land, Buildings and Equipment Accumulated Depreciation Undepreciated Cost Construction in Process Net Property, Plant and Equipment
Other assets Long-Term Notes & Contracts
investments
Balance Sheet 2017
2016
$708,915 600,000 1,262,977 0 2,444,491
$1,610,339 200,000 1,208,745 0 2,411,877
4,300,441 1,532,844 3,410,285 7,613
5,076,641 1,373,811 4,398,622 2,546,088
129,108 1,084,159 900,569 74,347 29,292 500,000 $16,985,041
85,336 1,086,810 896,702 0 43,238 0 $20,938,209
Current liabilities Checks Written in Excess of Bank Bal. Current Maturities of Long-Term Debt Current Maturities of Capital Lease Notes Payable-Operating Demand Notes Payables Trade Customer Credit Bal. & Prepaid Sales Unpaid Grain Margin Account Accrued Expenses Interest Payroll Property Taxes Income Taxes Other Patronage Dividends Payable Total Current Liabilities
Long-term liabilities - Net of current maturities Notes Payable Capital Lease Payable
$9,164,924 9,593,562
$1,708,428 10,856,539
Total Long-Term Liabilities Accrued Pension Costs Deferred Income Taxes
18,758,486 1,812,528 239,301
12,564,967 1,131,319 603,399
Member’s Equity - Capital Stock Class A & B Subscriptions Local Preferred Regional Preferred Allocated Patronage Dividends Non-Qualified Deferred Equity Paid in Capital Accumulated Other Comprehensive Income (Loss) Equity from Acquisition Retained Earnings Total Member’s Equity
502,000 46,885 6,158,130 8,377,995 2,000,000 6,409,006 191,688
504,000 47,485 6,225,111 8,484,233 1,250,000 5,159,591 191,688
(6,519,671) 18,254,816 26,217,832 $61,638,681
(6,346,782) 18,254,816 26,233,255 $60,003,397
TOTAL LIABILITIES & MEMBER’S EQUITY
$99,434,037
$95,241,291
R
1001 Blunt Pkwy Charles City, Iowa 50616 641-715-1203 www.viafield.com © 2017 Viafield, a Cooperative. All rights reserved.
