Company: SDSYA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001163609-25-000017
Chunk: 23

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 23
---
 in inventories offset by a decrease in net income of approximately $2.0 million.

Cash Flows Used For Investing Activities

The $37.7 million increase in cash flows used for investing activities during the three-month period ended March 31, 2025, compared to the same period in 2024, was due to an increase in expenditures for purchases of various property and equipment used for the construction and development of the High Plains Processing plant. 

Cash Flows Provided By Financing Activities

The $49.7 million decrease in cash flows provided by financing activities was principally due to a decrease in proceeds from issuance of new capital units in our consolidated entities and a decrease in borrowings with our lender. During the three months ended March 31, 2024, our subsidiaries received $57.5 million in investment proceeds in connection with their equity financing, which were subsequently contributed for the construction and development of the High Plains Processing plant. Net proceeds from seasonal borrowings and long-term debt were $80.1 million during the three months ended March 31, 2025, compared to $110.1 million during the same period in 2024. Partially offsetting the decrease was a $31.8 million reduction in cash distributions to members during the three-month period ended March 31, 2025, compared to the same period in 2024.

Indebtedness

We hold various credit facilities with CoBank, our primary lender, to meet the short and long-term needs of our operations. The first credit line is a revolving long-term loan. Under this loan, we may borrow funds, as needed, up to the credit line maximum, or $65.0 million, and then pay down the principal whenever excess cash is available. Repaid amounts may be borrowed up to the available credit line. The available credit line decreases by $3.25 million every six months until the credit line’s maturity on March 20, 2028, at which time a balloon payment for the remaining balance is due. We pay a 0.40% annual commitment fee on any funds not borrowed. The principal balance outstanding on the revolving term loan was $61.8 million and $50.5 million as of March 31, 2025 and December 31, 2024, respectively. Under this loan, there were no additional funds available to borrow as of March 31, 2025.

The second credit line is a revolving working capital (seasonal) loan. The primary purpose of this