##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the quarterly period ended December 31, 2008
 OR
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the transition period from
                 to                  .
 Commission File Number: 000-52420
 SIOUXLAND ETHANOL, LLC
  Nebraska
(State or other jurisdiction of 
incorporation or organization)
    
    22-3902184
(I.R.S. Employer Identification No.)
 1501 Knox Boulevard
Jackson, NE 68743
 (402) 632-2676
 þ o
 o þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer   o
(Do not check if a smaller reporting company)
    
    Smaller reporting company þ




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Page No.PART I. FINANCIAL INFORMATION
    
    
    1Item 1. Financial Statements
    
    
    1Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    11Item 4T. Controls and Procedures
    
    
    17PART II. OTHER INFORMATION
    
    
    18Item 1. Legal Proceedings
    
    
    18Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    18Item 3. Defaults Upon Senior Securities
    
    
    18Item 4. Submission of Matters to a Vote of Security Holders
    
    
    18Item 5. Other Information
    
    
    18Item 6. Exhibits
    
    
    19SIGNATURES
    
    
    20EX-10.1EX-31.1EX-31.2EX-32.1EX-32.2




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 SIOUXLAND ETHANOL, LLC
  December 31,
    
    
    September 30,2008
    
    
    2008(Unaudited)ASSETSCurrent AssetsCash and equivalents
    
    $
    
    
    
    $
    4,130,632Restricted cash
    
    
    1,089,817
    
    
    
    4,430,581Accounts receivable
    
    
    3,363,785
    
    
    
    3,432,770Inventory
    
    
    2,924,443
    
    
    
    4,097,906Deposits and prepaid expenses
    
    
    173,772
    
    
    
    210,576Total current assets
    
    
    7,551,817
    
    
    
    16,302,465Property and EquipmentLand and land improvements
    
    
    9,740,984
    
    
    
    9,740,984Buildings
    
    
    8,505,350
    
    
    
    8,500,470Office equipment and furnishings
    
    
    224,004
    
    
    
    223,079Plant equipment and machinery
    
    
    60,125,997
    
    
    
    59,945,892Construction in progress
    
    
    946,551
    
    
    
    603,33879,542,886
    
    
    
    79,013,763Less accumulated depreciation
    
    
    (8,753,375
    )
    
    
    (7,436,643
    )Net property and equipment
    
    
    70,789,511
    
    
    
    71,577,120Other AssetsRestricted cash
    
    
    403,000
    
    
    
    404,807Construction deposit
    
    
    500,000
    
    
    
    500,000Debt issuance costs, net of amortization
    
    
    385,138
    
    
    
    394,646Deposits and other
    
    
    316,894
    
    
    
    312,112Total other assets
    
    
    1,605,032
    
    
    
    1,611,565Total Assets
    
    $
    79,946,360
    
    
    $
    89,491,150LIABILITIES AND EQUITYCurrent LiabilitiesLine of credit
    
    $
    1,816,114
    
    
    $
    703,034Current maturities of long-term debt
    
    
    3,751,503
    
    
    
    4,992,970Checks written in excess of bank balance
    
    
    278,149
    
    
    
    Accounts payable
    
    
    3,722,143
    
    
    
    3,368,785Accrued expenses
    
    
    1,675,326
    
    
    
    2,860,884Derivative instruments
    
    
    898,886
    
    
    
    3,747,589Construction payable
    
    
    320,821
    
    
    
    271,836Total current liabilities
    
    
    12,462,942
    
    
    
    15,945,098Long-Term Debt, net of current maturities
    
    
    28,706,990
    
    
    
    25,113,869Other Long-Term Liabilities
    
    
    276,752
    
    
    
    281,694Commitments and ContingenciesMembers Equity, 3,789 units issued and outstanding
    
    
    38,499,676
    
    
    
    48,150,489Total Liabilities and Members
Equity
    
    $
    79,946,360
    
    
    $
    89,491,150
  1




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SIOUXLAND ETHANOL, LLC
  Three months ended
    
    
    Three months endedDecember 31,
    
    
    December 31,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)Revenues
    
    $
    24,456,854
    
    
    $
    27,006,062Cost of Goods Sold
    
    
    31,941,078
    
    
    
    18,988,137Lower of Cost or Market Adjustment
    
    
    871,213
    
    
    
    Gross Profit (Loss)
    
    
    (8,355,437
    )
    
    
    8,017,925Selling, General, and Administrative Expenses
    
    
    722,814
    
    
    
    713,894Operating Income (Loss)
    
    
    (9,078,251
    )
    
    
    7,304,031Other Income (Expense)Interest income
    
    
    8,761
    
    
    
    15,877Interest expense
    
    
    (582,835
    )
    
    
    (946,823
    )Other income
    
    
    1,512
    
    
    
    2,758Total other expense, net
    
    
    (572,562
    )
    
    
    (928,188
    )Net Income (Loss)
    
    $
    (9,650,813
    )
    
    $
    6,375,843Weighted Average Units
Outstanding  Basic and Diluted
    
    
    3,789
    
    
    
    3,789Net Income (Loss) Per Unit  Basic and Diluted
    
    $
    (2,547.06
    )
    
    $
    1,682.72Distributions Per Unit  Basic and Diluted
    
    $
    
    
    
    $
    
  2




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SIOUXLAND ETHANOL, LLC
  Three months ended
    
    
    Three months endedDecember 31,
    
    
    December 31,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)Cash Flows from Operating ActivitiesNet income (loss)
    
    $
    (9,650,813
    )
    
    $
    6,375,843Adjustments to reconcile net income (loss) to net cash from (used in) operations:Depreciation and amortization
    
    
    1,326,240
    
    
    
    1,367,096Change in fair value of derivative instruments
    
    
    1,039,682
    
    
    
    (3,255,348
    )Loss on lower of cost or market adjustment
    
    
    871,213
    
    
    
    Income earned on restricted cash and investments
    
    
    (1,824
    )
    
    
    Non-cash interest income
    
    
    (4,782
    )
    
    
    Change in assets and liabilities:Restricted cash
    
    
    3,138,145
    
    
    
    (1,128,613
    )Accounts receivable
    
    
    68,985
    
    
    
    (1,323,323
    )Inventory
    
    
    746,385
    
    
    
    (1,555,339
    )Derivative instruments
    
    
    (3,888,385
    )
    
    
    (35,725
    )Deposits and prepaid expenses
    
    
    36,804
    
    
    
    (32,086
    )Accounts payable
    
    
    353,358
    
    
    
    355,798Accrued expenses and other liabilities
    
    
    (1,634,635
    )
    
    
    45,054Net cash from (used in) operating activities
    
    
    (7,599,627
    )
    
    
    813,357Cash Flows from Investing ActivitiesCapital expenditures
    
    
    (480,138
    )
    
    
    (244,240
    )Net cash used in investing activities
    
    
    (480,138
    )
    
    
    (244,240
    )Cash Flows from Financing ActivitiesProceeds from line of credit
    
    
    2,467,160
    
    
    
    645,851Payments on line of credit
    
    
    (1,354,080
    )
    
    
    (159,512
    )Checks written in excess of bank balance
    
    
    278,149
    
    
    
    Payments on revolving term note
    
    
    
    
    
    
    (5,300,000
    )Proceeds from long-term debt
    
    
    2,816,920
    
    
    
    Payments on long-term debt
    
    
    (465,266
    )
    
    
    (1,198,010
    )Net withdrawals from restricted cash
    
    
    206,250
    
    
    
    185,284Net cash from (used in) financing activities
    
    
    3,949,133
    
    
    
    (5,826,387
    )Net Decrease in Cash and Equivalents
    
    
    (4,130,632
    )
    
    
    (5,257,270
    )Cash and Equivalents  Beginning of Period
    
    
    4,130,632
    
    
    
    5,924,234Cash and Equivalents  End of Period
    
    $
    
    
    
    $
    666,964Supplemental Cash Flow InformationCash paid during the period for interest expensed
    
    $
    683,811
    
    
    $
    816,523Supplemental Disclosure of Noncash Investing and Financing ActivitiesCapital expenditures in construction payable
    
    $
    48,985
    
    
    $
    
  3




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SIOUXLAND ETHANOL, LLC
 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of Presentation
   Nature of Business
  Accounting Estimates
  Revenue Recognition
  4




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SIOUXLAND ETHANOL, LLC
  Income Taxes
 Accounting for Uncertainty in Income Taxes Accounting for Income Taxes,
 Reclassifications
  2. UNCERTAINTIES
  3. FAIR VALUE MEASUREMENTS
 Fair
Value Measurements The Fair Value Option for Financial Assets and Financial
Liabilities  Including an amendment of FASB Statement No. 115
 5




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SIOUXLAND ETHANOL, LLC
       Fair Value as of
    
    Fair Value Measurement UsingDecember 31,2008
    
    Level 1
    
    Level 2
    
    Level 3Restricted cash  current
    
    $
    35,725
    
    
    $
    35,725
    
    
    $
    
    
    
    $
    Restricted cash  long-term
    
    $
    403,000
    
    
    $
    403,000
    
    
    $
    
    
    
    $
    Commodity derivative instruments
    
    $
    (898,886
    )
    
    $
    (898,886
    )
    
    $
    
    
    
    $
    
  4. INVENTORY
  December 31,
    
    
    September 30,2008
    
    
    2008*Raw materials
    
    $
    1,577,171
    
    
    $
    2,634,690Supplies
    
    
    342,471
    
    
    
    340,485Work in process
    
    
    530,710
    
    
    
    830,261Finished goods
    
    
    474,091
    
    
    
    292,470Total
    
    $
    2,924,443
    
    
    $
    4,097,906
 
 *
    
    Derived from audited financial statements. 6




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SIOUXLAND ETHANOL, LLC
    5. DERIVATIVE INSTRUMENTS
  6. LINE OF CREDIT
   7




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SIOUXLAND ETHANOL, LLC
   7. LONG-TERM DEBT
  December 31,
    
    
    September 30,2008
    
    
    2008*Term note payable, see terms below
    
    $
    26,015,000
    
    
    $
    26,015,000Revolving promissory note, see terms below
    
    
    2,366,920
    
    
    
    Tax increment financing
    
    
    4,020,000
    
    
    
    4,025,000Equipment note
    
    
    56,573
    
    
    
    66,839Total
    
    
    32,458,493
    
    
    
    30,106,839Less amounts due within one year
    
    
    3,751,503
    
    
    
    4,992,970Net long-term debt
    
    $
    28,706,990
    
    
    $
    25,113,869
 
 *
    
    Derived from audited financial statements. Term Note
  Revolving Promissory Note
   8




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SIOUXLAND ETHANOL, LLC
    Maturities
  2009
    
    $
    3,751,5032010
    
    
    4,931,9452011
    
    
    4,927,5002012
    
    
    4,947,5002013
    
    
    4,967,500Thereafter
    
    
    8,932,545Total long-term debt
    
    $
    32,458,493
 . COMMITMENTS AND CONTINGENCIES
 Purchase Commitments
  9




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SIOUXLAND ETHANOL, LLC
    Corn Oil Extraction Contract
  9. RELATED PARTY TRANSACTIONS
  2008
    
    2007Corn purchases
    
    $
    815,000
    
    
    $
    552,000Distillers grain sales
    
    
    338,000
    
    
    
    189,000
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operation
  Disclosure Regarding Forward-Looking Statements
  
    
    Changes in the availability and costs of products and raw materials, particularly
corn and natural gas;
    
    Changes in the production capacity of the ethanol industry, advances in ethanol
technologies and other competitive factors;
    
    Fluctuations in the price and market for ethanol and distillers grains;
    
    Financial impact of our hedging strategies;
    
    Our ability to market and our reliance on third parties to market our products;
    
    Changes in plant production capacity, variations in actual ethanol and distillers
grains production from expectations or technical difficulties in operating the plant;
    
    Changes in interest rates and the availability of credit to support capital
improvements and operations;
    
    Changes in or elimination of governmental mandates for the use of ethanol or
other laws, tariffs, trade or other controls or enforcement practices affecting the
ethanol markets;
    
    Fluctuations in U.S. petroleum consumption and in petroleum and gasoline prices;
    
    The availability and adequacy of cash flow to meet our working capital
requirements;
    
    Competition from alternative fuels and alternative fuel additives;
    
    Changes in general economic conditions or the occurrence of certain events
causing an economic impact in the agriculture, oil or automobile industries;
    
    Lack of transport, storage and blending infrastructure preventing ethanol from
reaching markets;
    
    The loss of, or inability to obtain, any license or permit needed to operate our
plant;
    
    The loss of available loan funding due to our inability to comply with loan
covenants;
    
    Unanticipated liability resulting from litigation or regulatory actions.
  11




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Overview
    12




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Results of Operations
 Comparison of the three month periods ended December 31, 2008 and 2007.
 Three Months Ended
    
    
    Three Months EndedDecember 31, 2008
    
    
    December 31, 2007(Unaudited)
    
    
    (Unaudited)% of
    
    
    
    
    
    
    % ofStatement of Operations Data
    
    Amount
    
    
    Revenues
    
    
    Amount
    
    
    RevenuesRevenues
    
    $
    24,456,854
    
    
    
    100.0
    %
    
    $
    27,006,062
    
    
    
    100.0
    %Cost of Goods Sold
    
    
    32,812,291
    
    
    
    134.2
    %
    
    
    18,988,137
    
    
    
    70.3
    %Gross Profit (Loss)
    
    
    (8,355,437
    )
    
    
    (34.2
    )%
    
    
    8,017,925
    
    
    
    29.7
    %SG&A Expenses
    
    
    722,814
    
    
    
    3.0
    %
    
    
    713,894
    
    
    
    2.7
    %Operating Income (loss)
    
    
    (9,078,251
    )
    
    
    (37.2
    )%
    
    
    7,304,031
    
    
    
    27.0
    %Other Expense, net
    
    
    (572,562
    )
    
    
    (2.3
    )%
    
    
    (928,188
    )
    
    
    (3.4
    )%Net Income (loss)
    
    $
    (9,650,813
    )
    
    
    (39.5
    )%
    
    $
    6,375,843
    
    
    
    23.6
    %
 Revenues
  13




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Cost of Goods Sold
    14




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Selling, General and Administrative Expenses
 Other Expense.
 Liquidity and Capital Resources
        15




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16




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Application of Critical Accounting Estimates
  Off-Balance Sheet Arrangements
  
 Item 4T. Controls and Procedures
   17




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PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
    18




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Item 6. Exhibits
  Exhibit No.
    
    Exhibit3.1
    
    Articles of Organization of Siouxland Ethanol, LLC. Filed as Exhibit 3.1 to
the Companys Registration Statement on Form SB-2 (Commission File No.
333-123473) and incorporated by reference herein.3.2
    
    Amended and Restated Operating Agreement of Siouxland Ethanol, LLC. Filed as
Exhibit 3.2 to the Companys Registration Statement on Form SB-2 (Commission
File No. 333-123473) and incorporated by reference herein.4.1
    
    Form of Membership Certificate. Filed as Exhibit 4.1 to the Companys
Registration Statement on Form SB-2 (Commission File No. 333-123473) and
incorporated by reference herein.10.1
    
    Seventh Amendment to Credit Agreement, made and entered into effective
February 19, 2009, by and between Siouxland Ethanol, LLC and Farm Credit
Services of America, FLCA and Farm Credit Services of America, PCA.31.1
    
    Certification of Principal Executive Officer pursuant to 17 CFR 240.13a-14(a).31.2
    
    Certification of Principal Financial Officer pursuant to 17 CFR 240.13a-14(a).32.1
    
    Certification of Principal Executive Officer pursuant to 18 U.S.C. § 1350.32.2
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. § 1350.
 19




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SIGNATURES
  SIOUXLAND ETHANOL, LLCDate:      February 23, 2009
    /s/ Charles HoflandCharles HoflandPresident and Chief Executive Officer (Principal Executive
Officer)Date:      February 23, 2009
    /s/ Mark RolfesMark RolfesTreasurer and Chief Financial Officer (Principal Financial 
and Accounting Officer) 20