REX REX American Resources Corporation

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended October 31, 2023
OR
☐	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 001-09097

 

REX AMERICAN RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

 

	Delaware	31-1095548
	(State or other jurisdiction of	(I.R.S. Employer
	incorporation or organization)	Identification Number)
	7720 Paragon Road, Dayton, Ohio	45459
	(Address of principal executive offices)	(Zip Code)

 

(937) 276-3931

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	REX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.               Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).               Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐		Accelerated filer ☒
Non-accelerated filer   ☐  (Do not check if a smaller reporting company)		Smaller reporting company ☐
		Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

 

At the close of business on December 1, 2023, the registrant had 17,503,745 shares of Common Stock, par value $.01 per share, outstanding.

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

 

INDEX

 

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets	3
	Consolidated Statements of Operations	4
	Consolidated Statements of Equity	5
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

Unaudited

 

(In Thousands)	October 31, 2023					January 31, 2023
Assets:
Current assets:
Cash and cash equivalents		$	72,828				$	69,612
Short-term investments			259,172					211,331
Restricted cash			1,728					1,735
Accounts receivable			30,138					25,162
Inventory			37,515					48,744
Refundable income taxes			4,448					2,962
Prepaid expenses and other			12,256					13,098
Total current assets			418,085					372,644
Property and equipment, net			144,567					135,497
Operating lease right-of-use assets			14,516					15,214
Other assets			13,589					23,179
Equity method investment			36,807					33,045
Total assets		$	627,564				$	579,579
Liabilities and equity:
Current liabilities:
Accounts payable – trade (includes $1.9 million and $1.5 million with related parties at October 31, 2023 and January 31, 2023, respectively)		$	28,766				$	34,091
Current operating lease liabilities			5,082					5,180
Accrued expenses and other current liabilities			14,842					15,328
Total current liabilities			48,690					54,599
Long-term liabilities:
Deferred taxes			1,097					1,097
Long-term operating lease liabilities			9,157					9,855
Other long-term liabilities			3,072					3,034
Total long-term liabilities			13,326					13,986
Equity:
REX shareholders’ equity:
Common stock			299					299
Paid-in capital			3,475					578
Retained earnings			681,193					640,826
Treasury stock			(191,974)					(193,721)
Total REX shareholders’ equity			492,993					447,982
Noncontrolling interests			72,555					63,012
Total equity			565,548					510,994
Total liabilities and equity		$	627,564				$	579,579

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

Unaudited

 

(In Thousands, Except Per Share Amounts)		Three Months Ended October 31,								Nine Months Ended October 31,
		2023				2022				2023				2022
Net sales and revenue		$	221,079			$	220,277			$	645,770			$	654,833
Cost of sales (includes $32,723 and $35,155 with related parties for the quarters ended October 31, 2023 and 2022, respectively, and $92,610 and $101,240 with related parties for the nine months ended October 31, 2023 and 2022, respectively)			181,789				211,004				577,962				619,549
Gross profit			39,290				9,273				67,808				35,284
Selling, general and administrative expenses			(7,609)				(5,823)				(21,996)				(17,689)
Equity in income of unconsolidated affiliates			4,738				661				9,275				6,210
Interest and other income, net			4,863				1,983				10,935				10,338
Income before income taxes			41,282				6,094				66,022				34,143
Provision for income taxes			(9,640)				(1,196)				(15,396)				(7,374)
Net income			31,642				4,898				50,626				26,769
Net income attributable to noncontrolling interests			(5,566)				(1,714)				(10,259)				(7,233)
Net income attributable to REX common shareholders		$	26,076			$	3,184			$	40,367			$	19,536
Weighted average shares outstanding – basic and diluted			17,531				17,591				17,461				17,714
Basic and diluted net income per share attributable to REX common shareholders		$	1.49			$	0.18			$	2.31			$	1.10

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Equity

For the Three and Nine Months Ended October 31, 2023 and 2022

Unaudited

 

(In Thousands)

 

		REX Shareholders
	Common Shares Issued										Treasury								Paid-in				Retained				Noncontrolling					Total
		Shares				Amount					Shares				Amount				Capital				Earnings				Interests					Equity
Balance at July 31, 2023			29,853				$	299				12,350			$	(192,037)			$	3,181			$	655,117				$	66,989			$	533,549
Net income																								26,076					5,566				31,642
Issuance of equity awards and stock based compensation expense																63				294													357
Balance at October 31, 2023			29,853				$	299				12,350			$	(191,974)			$	3,475			$	681,193				$	72,555			$	565,548
Balance at January 31, 2023			29,853				$	299				12,463			$	(193,721)			$	578			$	640,826				$	63,012			$	510,994
Net income																								40,367					10,259				50,626
Noncontrolling interests distribution and other																													(716)				(716)
Issuance of equity awards and stock based compensation expense												(113	)			1,747				2,897													4,644
Balance at October 31, 2023			29,853				$	299				12,350			$	(191,974)			$	3,475			$	681,193				$	72,555			$	565,548

 

Continued on the following page

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Equity

For the Three and Nine Months Ended October 31, 2023 and 2022

Unaudited

 

(In Thousands)

 

Continued from the previous page

 

		REX Shareholders
		Common Shares Issued									Treasury								Paid-in				Retained				Noncontrolling					Total
		Shares				Amount					Shares				Amount				Capital				Earnings				Interests					Equity
Balance at July 31, 2022			29,853				$	299				12,213			$	(186,996)			$	-			$	629,481				$	60,656			$	503,440
Net income																								3,184					1,714				4,898
Treasury stock acquired												250				(6,819)																	(6,819)
Noncontrolling interests distribution and other																													(97)				(97)
Issuance of equity awards and stock-based compensation expense																45				278													323
Balance at October 31, 2022			29,853				$	299				12,463			$	(193,770)			$	278			$	632,665				$	62,273			$	501,745
Balance at January 31, 2022			29,853				$	299				12,092			$	(181,114)			$	-			$	611,607				$	56,770			$	487,562
Net income																								19,536					7,233				26,769
Treasury stock acquired												472				(13,012)																	(13,012)
Noncontrolling interests distribution and other																													(1,730)				(1,730)
Issuance of equity awards and stock-based compensation expense												(101)				356				278				1,522									2,156
Balance at October 31, 2022			29,853				$	299				12,463			$	(193,770)			$	278			$	632,665				$	62,273			$	501,745

 

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Unaudited

 

(In Thousands)		Nine Months Ended October 31,
		2023				2022
Cash flows from operating activities:
Net income including noncontrolling interests		$	50,626			$	26,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			13,371				13,503
Amortization of operating lease right-of-use assets			3,766				4,105
Income from equity method investments			(9,275)				(6,210)
Dividends received from equity method investments			5,513				3,007
Interest income from investments			(6,950)				(1,098)
Deferred income tax			10,048				4,964
Stock based compensation expense			5,146				1,295
Loss (gain) on sale of property and equipment – net			205				(91)
Changes in assets and liabilities:
Accounts receivable			(4,976)				3,146
Inventories			11,229				180
Refundable income taxes			(1,486)				66
Other assets			409				649
Accounts payable, trade			(5,622)				7,990
Other liabilities			(4,812)				(4,281)
Net cash provided by operating activities			67,192				53,994
Cash flows from investing activities:
Capital expenditures			(22,359)				(7,182)
Purchase of short-term investments			(378,381)				(307,371)
Maturity of short-term investments			337,490				180,527
Proceeds from sale of real estate and property and equipment			10				-
Deposits			(27)				-
Net cash used in investing activities			(63,267)				(134,026)
Cash flows from financing activities:
Treasury stock acquired			-				(13,012)
Payments to noncontrolling interests holders			(716)				(1,730)
Net cash used in financing activities			(716)				(14,742)
Net increase (decrease) in cash, cash equivalents and restricted cash			3,209				(94,774)
Cash, cash equivalents and restricted cash, beginning of period			71,347				232,068
Cash, cash equivalents and restricted cash, end of period		$	74,556			$	137,294
Non cash investing activities – Accrued capital expenditures		$	722			$	93
Non cash financing activities – Stock awards accrued		$	1,467			$	679
Non cash financing activities – Stock awards issued		$	965			$	1,539
Right-of-use assets acquired and liabilities incurred upon lease execution		$	3,210			$	7,632
Reconciliation of total cash, cash equivalents and restricted cash:
Cash and cash equivalents		$	72,828			$	135,986
Restricted cash			1,728				1,308
Total cash, cash equivalents and restricted cash		$	74,556			$	137,294

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
October 31, 2023

 

Note 1. Consolidated Financial Statements

 

References to the Company – References to “REX” or the “Company” in the consolidated financial statements and in these notes to the consolidated condensed financial statements refer to REX American Resources Corporation, a Delaware corporation, and its majority and wholly owned subsidiaries.

 

The consolidated financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Financial information as of January 31, 2023 included in these financial statements has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2023 (fiscal year 2022). These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year.

 

Basis of Consolidation – The consolidated financial statements in this report include the operating results and financial position of the Company. All intercompany balances and transactions have been eliminated. The Company consolidates the results of its wholly owned and majority owned subsidiaries. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Statements of Operations on a delayed basis of one month as One Earth has a fiscal year end of December 31.

 

Stock Split – On June 21, 2022, the Board of Directors of the Company adopted resolutions declaring a three-for-one split of the Company’s Common Stock to be effectuated in the form of a 200% stock dividend, payable on August 5, 2022 to stockholders of record at the close of business on July 29, 2022.

 

Nature of Operations – The Company has one reportable segment, ethanol and by-products. Within the ethanol and by-products segment, the Company has equity investments in three ethanol limited liability companies, two of which are majority ownership interests.

 

Note 2. Accounting Policies

 

The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the

Company’s fiscal year 2022 Annual Report on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.

 

Revenue Recognition

 

The Company recognizes sales of ethanol, distillers grains and distillers corn oil when obligations under the terms of the respective contracts with customers are satisfied; this occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products.

 

Cost of Sales

 

Cost of sales includes depreciation, costs of raw materials, third-party freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant repair and maintenance costs, plant management, certain compensation costs and general facility overhead charges.

 

Selling, General and Administrative (“SG&A”) Expenses

 

The Company includes non-production related costs such as professional fees, selling charges and certain payroll in SG&A expenses.

 

Change in Accounting Principles

 

Effective for the second quarter of fiscal year 2023, the Company changed the method of accounting for shipping and handling costs for products sold to customers from recorded within “Selling, general and administrative expenses” to recorded within “Cost of sales” on the accompanying Consolidated Statements of Operations. While both presentations are allowable under accounting principles generally accepted in the United States of America, the Company believes that this change in classification is preferable because it improves the comparability of gross margin between periods and among industry peers.

The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:

 

		Three Months Ended October 31, 2022
		As Previously Reported		Effect of Change		As Currently Reported
Cost of sales		$208,941		$2,063		$211,004
Gross profit		$11,336		$(2,063)		$9,273
Selling, general and administrative		$(7,886)		$2,063		$(5,823)

 

		Nine Months Ended October 31, 2022
		As Previously Reported		Effect of Change		As Currently Reported
Cost of sales		$615,001		$4,548		$619,549
Gross profit		$39,832		$(4,548)		$35,284
Selling, general and administrative		$(22,237)		$4,548		$(17,689)

 

Financial Instruments

 

Certain of the forward corn purchase and ethanol, distillers grains and distillers corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of corn that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and distillers corn oil in quantities expected to be produced by the Company over a reasonable period of time in the normal course of business.

 

The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

Income Taxes

 

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $8.7 million and $2.2 million and received no refunds during the nine months ended October 31, 2023 and 2022, respectively.

 

As of October 31, 2023, and January 31, 2023, total unrecognized tax benefits were approximately $19,033,000. Accrued penalties and interest were approximately $64,000 and approximately $55,000 at October 31, 2023 and January 31, 2023, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $18.9 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.

 

Inventory

 

Inventories are carried at the lower of cost or net realizable value on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities associated with producing ethanol and related by-products. Inventory is written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. The Company did not record any inventory write-downs at October 31, 2023. The Company recorded inventory write-downs of approximately $0.7 million in cost of sales at January 31, 2023. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory and changes in commodity prices at a given point in time.

 

The components of inventory are as follows as of the dates presented (amounts in thousands):

 

		October 31, 2023				January 31, 2023
Ethanol and other finished goods		$	8,035			$	12,695
Work in process			5,697				10,194
Corn and other raw materials			23,783				25,855
Total		$	37,515			$	48,744

Property and Equipment

 

Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment.

 

In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable. The Company did not identify any indicators of impairment or record any impairment charges during the first nine months of fiscal years 2023 or 2022.

 

The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any.

 

Investments

 

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

 

The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Statements of Operations and a new cost basis in the investment is established.

 

Short-term investments, consisting of U.S. government obligations, are considered held to maturity, and therefore are carried at amortized historical cost.

 

Recently Issued Accounting Standards

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

 

Note 3. Net Sales and Revenue

 

The Company recognizes sales of products when obligations under the terms of the respective contracts with customers are satisfied. This occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods.

Sales, value added and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.

 

The majority of the Company’s sales have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not generally include a significant financing component. The Company has not historically entered into sales contracts in which payment is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.

 

The following tables shows disaggregated revenue by product (amounts in thousands):

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2023				2022				2023				2022
Ethanol		$	170,194			$	165,135			$	495,103			$	502,404
Dried distillers grains			34,983				38,009				106,632				104,167
Distillers corn oil			14,756				14,648				39,257				39,973
Modified distillers grains			1,159				2,477				3,814				9,288
Derivative financial instrument (losses) gains			(20)				8				840				(1,144)
Other			7				-				124				145
Total		$	221,079			$	220,277			$	645,770			$	654,833

 

Note 4. Leases

 

At October 31, 2023, the Company had lease agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

 

The components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2023				2022				2023				2022
Operating lease expense		$	1,499			$	2,060			$	4,691			$	5,661
Variable lease expense			(26)				92				277				757
Total lease expense		$	1,473			$	2,152			$	4,968			$	6,418

The following table is a summary of future minimum rentals on such leases at October 31, 2023 (amounts in thousands):

 

Years Ended January 31,		Minimum Rentals
Remainder of 2024		$	1,582
2025			5,108
2026			2,955
2027			2,907
2028			2,477
Thereafter			1,154
Total			16,183
Less:  present value discount			1,944
Operating lease liabilities		$	14,239

 

At October 31, 2023, the weighted average remaining lease term is 3.5 years, and the weighted average discount rate is 5.87% for the outstanding leases. At January 31, 2023, the weighted average remaining lease term was 3.7 years, and the weighted average discount rate was 5.51% for the outstanding leases.

 

Note 5. Fair Value

 

The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), which provides a framework for measuring fair value under accounting principles generally accepted in the United States of America. This accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

 

The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative instruments at fair value.

 

The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate.

To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2023 are summarized below (amounts in thousands):

 

		Level 1				Level 2				Level 3				Fair Value
Commodity futures asset (1)		$	-			$	172			$	-			$	172
Forward purchase contracts liability (2)		$	-			$	1,405			$	-			$	1,405
Commodity futures liability (2)			-				7				-				7
Total liabilities		$	-			$	1,412			$	-			$	1,412

 

Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2023 aresummarized below (amounts in thousands):

 

		Level 1				Level 2				Level 3				Fair Value
Forward purchase contracts asset (1)		$	-			$	105			$	-			$	105
Commodity futures asset (1)			-				80				-				80
Total assets		$	-			$	185			$	-			$	185
Forward purchase contracts liability (2)		$	-			$	355			$	-			$	355
Commodity futures liability (2)			-				67				-				67
Total liabilities		$	-			$	422			$	-			$	422

 

(1) The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets.

(2) The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets.

Note 6. Property and Equipment

 

The components of property and equipment are as follows for the periods presented (amounts in thousands):

 

		October 31, 2023				January 31, 2023
Land and improvements		$	31,205			$	30,194
Buildings and improvements			23,796				23,707
Machinery, equipment, and fixtures			305,310				299,665
Construction in progress			25,367				10,255
			385,678				363,821
Less: Accumulated depreciation			(241,111)				(228,324)
Total		$	144,567			$	135,497

 

Note 7. Other Assets

 

The components of other assets are as follows for the periods presented (amounts in thousands):

 

		October 31, 2023				January 31, 2023
Deferred taxes		$	11,916			$	21,964
Other			1,673				1,215
Total		$	13,589			$	23,179

 

Note 8. Accrued Expenses and Other Current Liabilities

 

The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):

 

		October 31, 2023				January 31, 2023
Accrued payroll and related items		$	6,943			$	4,428
Accrued utility charges			2,749				4,116
Accrued transportation related items			918				1,311
Accrued real estate taxes			1,387				1,850
Commodity futures			7				67
Forward purchase contracts			1,405				355
Accrued income taxes			130				2,049
Other			1,303				1,152
Total		$	14,842			$	15,328

Note 9. Derivative Financial Instruments

 

The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn and natural gas) and sale (ethanol, distillers grains and distillers corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

 

The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Balance Sheets in which the fair values are reflected (in thousands):

 

		Asset Derivatives Fair Value										Liability Derivatives Fair Value
		October 31, 2023					January 31, 2023					October 31, 2023					January 31, 2023
Commodity futures (1)			$	172				$	80				$	7				$	67
Forward purchase contracts (2)				-					105					1,405					355
Total			$	172				$	185				$	1,412				$	422

 

(1) Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023.

 

(2) Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.

 

As of October 31, 2023, and January 31, 2023, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements with the counterparties. The Company’s accounting policy is to offset positions and amounts owed with the same counterparties. As of October 31, 2023, and January 31, 2023, the gross positions of the enforceable master netting agreements

were not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparties may require collateral to secure the Company’s derivative contract position. The Company was required to maintain collateral in the amount of approximately $1.7 million to secure the Company’s derivative liability positions at both October 31, 2023 and January 31, 2023, which is recorded as “Restricted cash” on the accompanying Consolidated Balance Sheets.

 

See Note 5 which contains fair value information related to derivative financial instruments.

 

The Company recognized (losses) and gains, which are included in “Net sales and revenue” in the accompanying Consolidated Statement of Operations, on derivative financial instruments related to ethanol sales contracts of approximately $(20,000) and $8,000 for the third quarter of fiscal years 2023 and 2022, respectively. The Company recognized gains and (losses) on derivative financial instruments related to ethanol sales contracts of approximately $0.8 million and $(1.1) million for the first nine months of fiscal years 2023 and 2022, respectively.

 

The Company recognized gains, which are included in “Cost of sales” in the accompanying Consolidated Statement of Operations, on derivative financial instruments related to corn purchase contracts of approximately $10.6 million and of $9,000 for the third quarter of fiscal years 2023 and 2022, respectively. The Company recognized gains (losses) on derivative financial instruments related to corn purchase contracts of approximately $15.7 million and $(12.9) million for the first nine months of fiscal years 2023 and 2022, respectively.

 

Note 10. Investments

 

Equity Method Investment in Big River

 

The following table summarizes the Company’s equity method investment at October 31, 2023 and January 31, 2023 (dollars in thousands):

 

				Carrying Amount
Entity		Ownership Percentage		October 31, 2023		January 31, 2023
Big River		10.3%		$36,807		$ 33,045

 

Undistributed earnings of the Company’s equity method investee totaled approximately $16.8 million and approximately $13.0 million at October 31, 2023 and January 31, 2023, respectively. The Company received dividends from its equity method investee of approximately $5.5 million and $3.0 million in the first nine months of fiscal year 2023 and 2022, respectively.

Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):

 

		Three Months Ended October 31,								Nine Months Ended October 31,
		2023				2022				2023				2022
Net sales and revenue		$	351,390			$	398,838			$	1,128,012			$	1,200,980
Gross profit		$	52,869			$	11,432			$	107,395			$	60,593
Income from continuing operations		$	45,955			$	6,415			$	89,954			$	60,230
Net income		$	45,955			$	6,415			$	89,954			$	60,230

 

Short-term Investments

 

At October 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $259.2 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 5.5%. Unrealized gains or losses were insignificant.

 

At January 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $211.3 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 3.9%. Unrealized gains or losses were insignificant.

 

Note 11. Employee Benefits

 

The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 1,650,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. Until 2022, the Company had only granted restricted stock awards. In May 2022, the Company issued restricted stock units to certain officers of the Company which vest based on the Company’s Total Shareholder Return (“TSR”) compared to the TSRs of companies that comprise the Russell 2000 Index over a three-year performance period. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records non-cash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At October 31, 2023, 1,229,116 shares remain available for issuance under the Plan, excluding the impact of the 67,500 restricted stock units that may vest between zero and 135,000 shares of stock depending on certain performance metrics being achieved.

 

Restricted Stock Awards

 

As a component of their compensation, restricted stock has been granted to directors and certain employees at the closing market price of REX common stock on the grant date. In addition, one quarter of executives’ incentive compensation is payable by an award of restricted stock-based on the then closing market price of REX common stock on the grant date. The Company’s board of directors has determined

that the grant date will be June 15^th, or the next business day if June 15^th is not a business day, for all grants of restricted stock.

 

At October 31, 2023 and January 31, 2023, unrecognized compensation cost related to nonvested restricted stock awards was approximately $545,000 and $450,000 respectively. The following tables summarize non-vested restricted stock award activity for the periods presented:

 

		Nine Months Ended October 31, 2023
		Non-Vested Shares				Weighted Average Grant Date Fair Value (000’s)				Weighted Average Remaining Vesting Term (in years)
Non-Vested at January 31, 2023			81,264			$	2,320				2
Granted			113,726				3,945
Forfeited			-				-
Vested			32,135				896
Non-Vested at October 31, 2023			162,855			$	5,369				2

 

		Nine Months Ended October 31, 2022
			Non-Vested Shares				Weighted Average Grant Date Fair Value (000’s)			Weighted Average Remaining Vesting Term (in years)
Non-Vested at January 31, 2022			30,167			$	773				1
Granted			70,689				2,032
Forfeited			-				-
Vested			18,403				451
Non-Vested at October 31, 2022			82,453			$	2,354				2

 

Restricted Stock Units (“RSUs”)

 

In May 2022, the Company issued a total of 67,500 RSUs to certain officers. The number of RSUs eligible to vest will be determined based on how the Company’s TSR compares to the TSR of companies that comprise the Russell 2000 Index during the performance period ending December 31, 2024. The number of RSUs eligible to vest ranges from zero percent to two hundred percent, depending on actual

performance during the performance period. While dilutive, the impact to earnings per share is not material to the financial statements.

 

For the three and nine-month periods ended October 31, 2023, the Company recognized compensation cost of approximately $265,000 and $794,000, respectively, related to the RSUs. For the three and nine-month periods ended October 31, 2022, the Company recognized compensation cost of approximately $253,000 and $441,100, respectively, related to the RSUs. Unrecognized compensation cost related to the RSUs at October 31, 2023 and January 31, 2023, was approximately $1.2 million and $2.0 million, respectively.

 

Note 12. Income Taxes

 

The Company’s income tax provision was approximately $9.6 million and $1.2 million for the three months ended October 31, 2023 and 2022, respectively. The Company’s income tax provision was approximately $15.4 and $7.4 million for the nine months ended October 31, 2023 and 2022, respectively.

 

The Company assessed all available positive and negative evidence to determine whether it expects sufficient future taxable income will be generated to allow for the realization of existing federal deferred tax assets. There is sufficient objectively verifiable income for management to conclude that it is more likely than not that the Company will utilize available federal deferred tax assets prior to their expiration.

 

The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal income tax examination for the years ended January 31, 2015 through January 31, 2020.

 

On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months; however, the Company does not expect the change to have a material effect on results of operations or financial position. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):

 

		Nine Months Ended October 31,
		2023				2022
Unrecognized tax benefits, beginning of period		$	19,088			$	16,781
Changes for prior years’ tax positions			9				94
Changes for current year tax positions			-				-
Unrecognized tax benefits, end of period		$	19,097			$	16,875

Note 13. Commitments and Contingencies

 

The Company may be involved in various legal actions arising in the normal course of business, from time to time. After taking into consideration legal counsel’s evaluations of any such action(s), management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated Financial Statements. The Company maintained a liability of $250,000 at October 31, 2023 and January 31, 2023, as a probable and reasonably estimable loss associated with a legal contingency for a patent infringement case involving our refined coal facility which is no longer in operation.

 

At October 31, 2023, One Earth and NuGen had combined forward purchase contracts for approximately 13.8 million bushels of corn, the principal raw material for their ethanol plants, and they have combined forward purchase contracts for approximately 1.6 million MmBtu (million British thermal unit) of natural gas.

 

At October 31, 2023, One Earth and NuGen had combined sales commitments for approximately 53.8 million gallons of ethanol, approximately 111,000 tons of distillers grains and approximately 14.2 million pounds of distillers corn oil.

 

At October 31, 2023, One Earth had signed non-cancelable contracts for capital projects with approximately $38.1 million remaining in future payments, of which $31.2 million is related to One Earth’s carbon sequestration project and $6.9 million relates to planned plant expansion.

 

Note 14. Related-Party Transactions

 

During the third quarters of fiscal years 2023 and 2022, One Earth and NuGen purchased approximately $32.7 million and $35.2 million, respectively, of corn (and other supplies) from minority equity investors and board members of those affiliates. Such purchases totaled approximately $92.6 million and $101.2 million for the nine months ended October 31, 2023 and 2022, respectively. The Company had amounts payable to related parties of approximately $1.9 million and $1.5 million at October 31, 2023 and January 31, 2023, respectively.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Ethanol and By-Products

 

At October 31, 2023, we had investments in three ethanol limited liability companies, in two of which we have a majority ownership interest. The following table is a summary of ethanol entity ownership interests at October 31, 2023:

 

Entity	REX’s Current Ownership Interest
One Earth Energy, LLC	75.8%
NuGen Energy, LLC	99.7%
Big River Resources, LLC:
Big River Resources W Burlington, LLC	10.3%
Big River Resources Galva, LLC	10.3%
Big River United Energy, LLC	5.7%
Big River Resources Boyceville, LLC	10.3%

 

Our ethanol operations and the results thereof are highly dependent on commodity prices, especially prices for corn, ethanol, distillers grains, distillers corn oil and natural gas, and availability of corn. As a result of price volatility for these commodities, our operating results can fluctuate substantially. The price and availability of corn is subject to significant fluctuations depending upon several factors that affect commodity prices in general, including crop conditions, the amount of corn stored on farms, weather, federal policy, foreign trade, and international disruptions caused by wars or conflicts. Because the market prices of ethanol and distillers grains are not always directly related to corn prices (for example, demand for crude and other energy and related prices, the export market demand for ethanol and distillers grains, soybean meal prices, and the results of federal policy decisions and trade negotiations can impact ethanol and distillers grains prices), at times ethanol and distillers grains prices may not follow movements in corn prices and, in an environment of higher corn prices or lower ethanol or distillers grains prices, reduce the overall margin structure at the plants. As a result, at times, we may operate our plants at negative or minimally positive operating margins.

 

We expect our ethanol plants to produce approximately 2.9 gallons of denatured ethanol for each bushel of corn processed in the production cycle. We refer to the actual gallons of denatured ethanol produced per bushel of corn processed as the realized yield. We refer to the difference between the price per gallon of ethanol and the price per bushel of corn (divided by the realized yield) as the “crush spread”. Should the crush spread decline, it is possible that our ethanol plants will generate operating results that do not provide adequate cash flows for sustained periods of time. In such cases, production at the ethanol plants may be reduced or stopped altogether in order to minimize variable costs at individual plants.

 

We attempt to manage the risk related to the volatility of commodity prices by utilizing forward corn and natural gas purchase contracts, forward ethanol, distillers grains and distillers corn oil sale contracts and commodity futures agreements, as management deems appropriate. We attempt to match quantities of these sale contracts with an appropriate quantity of corn purchase contracts over a given period of time when we can obtain an adequate gross margin resulting from the crush spread inherent in the

contracts we have executed. However, the market for future ethanol sales contracts generally lags the spot market with respect to ethanol price. Consequently, we generally execute fixed price ethanol contracts for no more than four months into the future at any given time and we may lock in our corn or ethanol price without having a corresponding locked in ethanol or corn price for short durations of time. As a result of the relatively short period of time our fixed price contracts cover, we generally cannot predict the future movements in our realized crush spread for more than four months; thus, we are unable to predict the likelihood or amounts of future income or loss from the operations of our ethanol facilities. We utilize derivative financial instruments, primarily exchange traded commodity future contracts and swap contracts, in conjunction with certain of our corn procurement activities and commodity marketing activities.

 

One Earth Energy, LLC Carbon Sequestration and Plant Expansion

 

Through our affiliate, One Earth Energy, LLC, we are in the developmental stage of a carbon sequestration project near the One Earth Energy ethanol plant. A test well has been drilled to a total depth of approximately 7,100 feet, in which almost 2,000 feet of Mt. Simon Sandstone was encountered, which is the geological formation that is the region’s primary carbon storage resource. Three-dimensional seismic testing has been performed, as well as geological modeling for predicting the movement of injected carbon and the plume area to determine maximum injection pressure, reservoir quality and storage capacity for the potential wells. We have applied for a Class VI injection well permit for three wells with the U.S. Environmental Protection Agency (“EPA”). In addition, we have begun construction for a facility to capture, dehydrate, and compress carbon dioxide from the One Earth Energy ethanol plant to a state suitable for sequestration. We expect to complete construction by July 31, 2024, at which time testing of the facility would commence. We have submitted an application for a short pipeline to deliver carbon dioxide from the ethanol plant to the sequestration site. Although we have made meaningful progress and significant investments in this project, we continue to complete required documentation for various government agencies and obtain other approvals with no assurances of ultimate success.

 

We also intend to concurrently expand the One Earth ethanol plant. We recently received a permit to increase production from 150 million gallons of ethanol per year to 175 million gallons of ethanol per year. Once we achieve that level of production, planned for late 2024, we intend to apply for a 200 million gallon per year permit from the EPA. Finally, we continue to work to identify ways to reduce our carbon intensity (“CI”) score at the One Earth plant with the intention to maximize tax credits available under the Inflation Reduction Act.

 

If all approvals and permits are received, we expect the total cost of these projects to be approximately $165 million, which we currently plan to pay from our available cash. As of October 31, 2023, we have spent $16.0 million life-to-date and are contractually committed to spend an additional $31.2 million toward the carbon sequestration project. If the carbon sequestration project is successful, we believe we would qualify for tax credits under section 45Q of the Internal Revenue Code (“45Q”) and section 45Z of the Internal Revenue Code (“45Z”), as outlined in the Inflation Reduction Act. As of October 31, 2023, we have spent $8.5 million life-to-date and are contractually committed to spend an additional $6.9 million toward plant capacity expansion and ongoing efforts to reduce our CI scoring.

Refined Coal

 

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, for approximately $12.0 million, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. As the plant was no longer eligible to receive federal production tax credits beginning on November 18, 2021, we ceased operations on that date. We began classifying this operation as discontinued operations in the third quarter of fiscal 2021. The federal production tax credits received through ownership of this facility remain under IRS audit.

 

Critical Accounting Policies and Estimates

 

During the three months ended October 31, 2023, we did not change any of our critical accounting policies as disclosed in our 2022 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 30, 2023.

 

Fiscal Year

 

All references in this report to a particular fiscal year are to REX’s fiscal year ended January 31. The Company refers to its fiscal year by reference to the year immediately preceding the January 31 fiscal year end date. For example, “fiscal year 2023” means the period February 1, 2023 to January 31, 2024.

 

Results of Operations

 

Trends and Uncertainties

 

Renewable Fuel Standard II (“RFS II”), established in October 2010, has been an important factor in the growth of ethanol usage in the United States. In recent years, there has been much uncertainty on the enforcement of RFS II. When it was originally established, RFS II required the volume of “conventional” or corn derived ethanol to be blended with gasoline to increase each year until it reached 15.0 billion gallons in 2015 and required that it remain at that level through 2022. There are no established congressional target volumes beginning in 2023, and the EPA was given the authority to calculate and establish the target volumes for subsequent periods. The EPA also has the authority to waive the biofuel mandate, in whole or in part, if there is inadequate domestic renewable fuel supply or the requirement severely harms the domestic economy or environment. In addition, under RFS II, a small refiner that processes less than 75,000 barrels of oil per day can petition the EPA for a waiver of their obligation to submit renewable identification numbers (“RINs”) for the oil they process. The EPA, through consultation with the Department of Energy and the U.S. Department of Agriculture (“USDA”), can grant the refiner a full or partial waiver, or deny the waiver. The EPA issued 88 refinery exemptions for 2016-2018 compliance years, undercutting the statutory renewable fuel volumes by a total of 4.3 billion gallons. In recent years, the EPA had largely denied small refiners on their requested waivers. On November 22, 2023, the Fifth U.S. Circuit Court of Appeals (the “Court”) ruled against the EPA on six small refiner exemptions the EPA had previously denied. The Court remanded those six petitions back to the EPA and each refinery

will continue to operate under temporary small refiner exemptions previously offered to them by the Court.

 

On June 21, 2023, the EPA issued final Renewable Fuel Standard volume obligations for calendar years 2023-2025. The volumes from conventional biofuels (which includes corn-based ethanol) were 15.25 billion gallons for 2023 and 15.0 billion gallons for each of 2024 and 2025.

 

In November 2023, the USDA forecasted the 2023 U.S. corn harvest to be 15.2 billion bushels. This represents approximately an 11% increase over the prior year. That forecast was based upon then available information to the USDA.

 

Due to the Russian-Ukraine conflict, corn and natural gas supplies worldwide have been adversely affected at times. This could contribute to the volatility in the prices for both commodities and could impact corn availability in the United States.

 

The Inflation Reduction Act of 2022 (the “IRA”) will likely impact our business by creating a new Clean Fuel Production Credit, section 45Z of the Internal Revenue Code, that would be dependent on the level of greenhouse gas emissions reduction for each gallon of ethanol produced and sold, available for years 2025 to 2027. The Act also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton under section 45Q of the Internal Revenue Code. Taxpayers may elect to be treated as making a payment against tax for 100% of the value of the 45Q credit (“direct pay”) for the first five years, starting with the year a qualifying carbon sequestration facility is placed in service, but not beyond December 31, 2032. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available. Other potential impacts include (a) extending the biodiesel tax credit, which could positively impact our distillers corn oil prices, as this co-product serves as a low-carbon feedstock for renewable diesel and biomass based diesel production; (b) creating a new tax credit for sustainable aviation fuel; (c) funding biofuel refueling infrastructure which could positively impact the availability of higher level ethanol blended fuel; and (d) providing for production and purchase credits for electric vehicles, which could impact the amount of internal combustion engines on the road over time, and ultimately reduce the demand for gasoline, diesel fuels and ethanol. Certain rules and implementation guidance associated with the IRA have yet to be finalized, so we cannot determine the full impact it may have on our business at this time.

 

Through our subsidiary One Earth Energy LLC we have begun construction of a carbon capture facility along with a planned carbon sequestration site near our ethanol plant using a short pipeline. We have spent approximately $16.0 million to date and have commitments of approximately $31.2 million towards this project. We continue to work on required approvals and permits required to complete this project without guarantee that we will be able to receive these permits.

 

Should any of the trends and uncertainties mentioned above continue, our future operating results could be impacted.

Comparison of Three and Nine Months Ended October 31, 2023 and 2022

 

The following table summarizes our results from operations (amounts in thousands):

 

		Three Months Ended								Nine Months Ended
		October 31,								October 31,
		2023				2022				2023				2022
Net sales and revenue		$	221,079			$	220,277			$	645,770			$	654,833
Cost of sales			181,789				211,004				577,962				619,549
Gross profit		$	39,290			$	9,273			$	67,808			$	35,284
Income before income taxes		$	41,282			$	6,094			$	66,022			$	34,143
Provision for income taxes		$	(9,640)			$	(1,196)			$	(15,396)			$	(7,374)
Net income attributable to REX common shareholders		$	26,076			$	3,184			$	40,367			$	19,536

 

The following table summarizes net sales and revenue by product group (amounts in thousands):

 

		Three Months Ended								Nine Months Ended
		October 31,								October 31,
		2023				2022				2023				2022
Ethanol		$	170,194			$	165,135			$	495,103			$	502,404
Dried distillers grains			34,983				38,009				106,632				104,167
Distillers corn oil			14,756				14,648				39,257				39,973
Modified distillers grains			1,159				2,477				3,814				9,288
Derivative financial instruments (losses) gains			(20)				8				840				(1,144)
Other			7				-				124				145
Total		$	221,079			$	220,277			$	645,770			$	654,833

The following table summarizes selected operating data:

 

		Three Months Ended								Nine Months Ended
		October 31,								October 31,
		2023				2022				2023				2022
Average selling price per gallon of ethanol (net of hedging)		$	2.32			$	2.49			$	2.32			$	2.48
Gallons of ethanol sold (in millions)			73.2				66.3				213.8				202.1
Average selling price per ton of dried distillers grains		$	194.94			$	230.29			$	220.92			$	232.51
Tons of dried distillers grains sold			179,451				165,052				482,660				448,016
Average selling price per pound of distillers corn oil		$	0.61			$	0.74			$	0.60			$	0.70
Pounds of distillers corn oil sold (in millions)			24.1				19.8				65.5				57.1
Average selling price per ton of modified distillers grains		$	85.86			$	116.49			$	104.94			$	120.23
Tons of modified distillers grains sold			13,496				21,264				36,349				77,253

 

Net sales and revenue in the quarter ended October 31, 2023 increased less than 1% compared to the prior year’s third quarter. Net sales and revenue in the first nine months ended October 31, 2023 decreased approximately 1% compared to the first nine months of fiscal year 2022.

 

Ethanol sales increased 3% in the third quarter of fiscal year 2023 compared to the third quarter of fiscal year 2022 as the quantities sold at our consolidated plants during the third quarter of fiscal year 2023 increased 10% from the prior year comparable period, offset by a 7% decrease in the average selling price on ethanol. Ethanol sales decreased 1% in the first nine months of fiscal year 2023 compared to the first nine months of fiscal year 2022, driven by a 6% decrease in selling price, offset partially by a 6% increase in gallons sold. The decrease in the ethanol selling price resulted primarily from a decrease in commodity prices.

 

Dried distillers grains sales decreased 8% in the third quarter of fiscal year 2023 compared to the third quarter of fiscal year 2022 as the average price per ton sold decreased 15%, offset by a 9% increase in tons sold. The decrease in the dried distillers grains selling price resulted primarily from a decrease in corn prices as dried distillers grains prices often correlate with corn pricing. Dried distillers grains sales increased 2% in the first nine months of fiscal year 2023 compared to the first nine months of fiscal year 2022, primarily driven by a 8% increase in tons sold, offset by a 5% decrease in price per ton sold.

 

Distillers corn oil sales increased approximately 1% in the third quarter of fiscal year 2023 compared to the third quarter of fiscal year 2022 as the amount of pounds sold increased 22%, offset partially by a 18% decrease in the price per ton sold. Distillers corn oil sales decreased approximately 2% in the first nine months of fiscal year 2023 compared to the first nine months of fiscal year 2022 as the selling price of distillers corn oil decreased 14% over the prior year, offset partially by a 15% increase in pounds sold. The decrease in the distillers corn oil selling price resulted primarily from a decrease in commodity prices.

Modified distillers grains sales decreased in the third quarter of fiscal year 2023 compared to the third quarter of fiscal year 2022 due to a 37% decrease in tons sold, as well as a 26% decrease in price per ton sold. Modified distillers grains sales decreased in the first nine months of fiscal year 2023 compared to the first nine months of fiscal year 2022 due to a 53% decrease in tons sold, as well as a 13% decrease in price per ton sold. The decrease in the modified distillers grains selling price resulted primarily from a decrease in corn prices. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuates from time to time based upon market conditions.

 

Losses on derivative financial instruments, included in net sales and revenue, were approximately $20,000 in the third quarter of fiscal year 2023, compared to gains on derivative financial instruments of approximately $8,000 during the third quarter of fiscal year 2022. For the first nine months of fiscal year 2023, gains on derivative financial instruments, which are included in net sales and revenue, were approximately $0.8 million, compared to losses of $1.1 million in the first nine months of fiscal year 2022. These gains and losses are related to our risk management activities and were impacted by the price movements and types of contracts entered into at one of our consolidated ethanol plants.

 

Cost of sales decreased approximately 14% in the quarter ended October 31, 2023, compared to the prior year third quarter. Corn accounted for approximately 80% ($145.2 million) of our cost of sales during the third quarter of fiscal year 2023 compared to approximately 82% ($172.5 million) during the third quarter of fiscal year 2022. The cost of corn decreased primarily due to lower corn prices, partially offset by an increase in corn used between the two periods. Natural gas accounted for approximately 3% ($6.2 million) of our cost of sales during the third quarter of fiscal year 2023 compared to approximately 6% ($12.2 million) during the third quarter of fiscal year 2022. Cost of sales decreased approximately 7% in the nine months ended October 31, 2023, compared to the prior year comparable period. Corn accounted for approximately 81% ($467.0 million) of our cost of sales during the first nine months of fiscal year 2023 compared to approximately 83% ($512.2 million) during the first nine months of fiscal year 2022. The cost of corn decreased primarily due to lower corn prices during the nine-month period ended October 31, 2023, compared to the prior year comparable period, partially offset by an increase in corn used between the two periods. Natural gas accounted for approximately 4% ($23.3 million) of our cost of sales during the first nine months of fiscal year 2023 compared to approximately 6% ($35.9 million) during the first nine months of fiscal year 2022.

 

As a result of the foregoing, gross profit for the third quarter of fiscal year 2023 increased approximately $30.0 million compared to the prior year’s third quarter. Gross profit for the first nine months of fiscal year 2023 increased approximately $32.5 million compared to the first nine months of fiscal year 2022.

 

We attempt to match quantities of ethanol, distillers grains and distillers corn oil sales contracts with an appropriate quantity of corn purchase contracts over a given time period when we can obtain a satisfactory margin resulting from the crush spread inherent in the contracts we have executed. However, the market for future ethanol sales contracts generally lags the spot market with respect to ethanol price. Consequently, we generally execute fixed price sales contracts for no more than four months into the future at any given time and we may lock in our corn or ethanol price without having a corresponding locked in ethanol or corn price for short durations of time. As a result of the relatively short period of

time our contracts cover, we generally cannot predict the future movements in our realized crush spread for more than four months.

 

SG&A expenses were approximately $7.6 million for the third quarter of fiscal year 2023, compared to approximately $5.8 million of expenses for the third quarter of fiscal year 2022. SG&A expenses were approximately $22.0 million for the first nine months of fiscal year 2023, compared to approximately $17.7 million for the first nine months of fiscal year 2022. The increases are primarily related to the increase in performance bonus expense as a result of higher net income in 2023. In addition, the year-to-date increase is also impacted by restricted stock awards granted to certain executive officers in the second quarter of 2023, which were expensed upon issuance.

 

During the third quarter of fiscal year 2023, we recognized income from our equity investment in Big River of approximately $4.7 million compared to income of approximately $0.7 million for the third quarter of fiscal year 2022. During the first nine months of fiscal year 2023, we recognized income from our equity investment in Big River of approximately $9.3 million compared to income of approximately $6.2 million during the first nine months of fiscal year 2022. During the second quarter of 2022, COVID-19 relief grants from the USDA received by Big River contributed $1.6 million to the income we recognized in 2022. The third quarter of fiscal year 2023 benefited approximately $195,000 from an additional USDA payment. Our investment in Big River, which has interests in four ethanol production plants, represents an effective ownership of approximately 38.0 million gallons of ethanol shipped in the trailing twelve months ended October 31, 2023. Due to the inherent volatility of commodity prices within the ethanol industry, we cannot predict the likelihood of future operating results from Big River being similar to historical results.

 

Interest and other income was approximately $4.9 million for the third quarter of fiscal year 2023 versus approximately $2.0 million for the third quarter of fiscal year 2022. Interest and other income was approximately $10.9 million for the first nine months of 2023 versus approximately $10.3 million for the first nine months of fiscal year 2022. During 2022, the Company’s consolidated plants received COVID-19 relief grants from the USDA totaling approximately $7.8 million in the second quarter. Each plant received an additional payment from that program in 2023, totaling $1.0 million. The remaining change in both the three-month and nine-month periods related to increased interest income in the current year as yields on our excess cash and short-term investments increased in fiscal year 2023, compared to 2022.

 

As a result of the foregoing, income before income taxes was approximately $41.3 million and $6.1 million for the third quarters of fiscal year 2023 and 2022, respectively. Income before income taxes was approximately $66.0 million and $34.1 million for the first nine months of fiscal year 2023 and 2022, respectively.

 

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. Our income tax provision was approximately $9.6 million and $1.2 million for the three months ended October 31, 2023 and 2022, respectively. Our income tax provision was approximately $15.4 million and $7.4 million for the first nine months of fiscal year 2023 and 2022, respectively.

 

As a result of the foregoing, net income was approximately $31.6 million for the third quarter of fiscal year 2023 compared to approximately $4.9 million for the third quarter of fiscal year 2022. Net

income was approximately $50.6 million for the first nine months of fiscal year 2023 compared to approximately $26.8 million for the first nine months of fiscal year 2022.

 

Net income attributable to noncontrolling interests was approximately $5.6 million for the third quarter of fiscal year 2023 compared to $1.7 million for the third quarter of fiscal year 2022. Net income attributable to noncontrolling interests was approximately $10.3 million for the first nine months of fiscal year 2023 compared to approximately $7.2 million for the first nine months of fiscal year 2022. These amounts represent the other owners’ share of the income of NuGen and One Earth.

 

As a result of the foregoing, net income attributable to REX common shareholders from for the third quarter of fiscal year 2023 was approximately $26.1 million, compared to net income attributable to REX common shareholders of approximately $3.2 million for the third quarter of fiscal year 2022. Net income attributable to REX common shareholders from the first nine months of fiscal year 2023 was approximately $40.4 million, compared to net income attributable to REX common shareholders of approximately $19.5 million for the first nine months of fiscal year 2022.

 

Liquidity and Capital Resources

 

Net cash provided by operating activities was approximately $67.2 million for the first nine months of fiscal year 2023, compared to cash provided by operating activities of approximately $54.0 million for the first nine months of fiscal year 2022. For the first nine months of fiscal year 2023, cash was provided by net income of approximately $50.6 million, adjusted for non-cash items of approximately $16.3 million, which consisted of depreciation, amortization of operating lease right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, stock-based compensation expense, and loss on sale of property and equipment. We received dividends from Big River of approximately $5.5 million in the first nine months of fiscal year 2023. An increase in the balance of accounts receivable used cash of approximately $5.0 million, primarily a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories decreased over the first nine months of fiscal year 2023, providing cash of $11.2 million. A decrease in the balance of other assets of approximately $0.4 million primarily relates to changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value. An increase in the balance of refundable income taxes of approximately $1.5 million primarily relates to overpayment of taxes currently payable for the previous fiscal year and quarterly estimated tax payments. While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $5.6 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $4.8 million.

 

Net cash provided by operating activities was approximately $54.0 million for the first nine months of fiscal year 2022. For the first nine months of fiscal year 2022, cash was provided by net income of approximately $26.8 million, adjusted for non-cash items of approximately $16.5 million, which consisted of depreciation, amortization of operating lease right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, stock-based compensation expense, and gain on sale of property and equipment. We received dividends from Big River of approximately $3.0 million in the first nine months of fiscal year 2022. A decrease in the balance of accounts receivable provided cash of approximately $3.1 million, primarily a result of the timing of

products shipped and the receipt of customer payments at One Earth and NuGen. Inventories remained relatively flat over the first nine months of fiscal year 2022. A decrease in the balance of other assets of approximately $0.6 million primarily relates to changes in the carrying value of forward purchase contracts recorded at fair value. A decrease in the balance of refundable income taxes of approximately $66,000 primarily relates to amounts currently payable on income from the first nine months of the fiscal year, offset by quarterly estimated tax payments. An increase in the balance of accounts payable provided cash of approximately $8.0 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $4.3 million.

 

At October 31, 2023, working capital was approximately $369.4 million, compared to $318.0 million at January 31, 2023. The ratio of current assets to current liabilities was 8.6 to 1 at October 31, 2023 and 6.8 to 1 at January 31, 2023.

 

Cash of approximately $63.3 million was used by investing activities for the first nine months of fiscal year 2023, compared to cash used by investing activities of approximately $134.0 million during the first nine months of fiscal year 2022. During the first nine months of fiscal year 2023, we had capital expenditures of approximately $22.4 million, primarily for various capital projects at our consolidated ethanol plants, including $7.7 million for expansion and CI scoring reduction projects at the One Earth facility and $8.0 million for the carbon sequestration project. During the first nine months of fiscal year 2023, we purchased short-term U.S. Treasury Bills of approximately $378.4 million, while U.S. Treasury Bills of approximately $337.5 million matured. The U.S Treasury Bills had maturities of less than one year and we classified them as short-term investments. Depending on investment options available, we may elect to retain the funds, or a portion thereof, in cash, short-term investments or long-term investments.

 

Cash of approximately $134.0 million was used in investing activities for the first nine months of fiscal year 2022. During the first nine months of fiscal year 2022, we had capital expenditures of approximately $7.2 million, primarily for improvements at the One Earth and NuGen facilities. During the first nine months of fiscal year 2022, we purchased U.S. Treasury Bills of approximately $307.4 million. During the first nine months of fiscal year 2022 certificates of deposit of approximately $180.5 million matured. The certificates of deposit and U.S. Treasury Bills had maturities of less than one year and we classified as short-term investments.

 

Cash of approximately $0.7 million was used in financing activities for the first nine months of fiscal year 2023 for payments to noncontrolling interests holders, compared to approximately $1.7 million for the first nine months of fiscal year 2022. No treasury stock was acquired in the first nine months of fiscal year 2023, compared to $13.0 million to purchase approximately 472,000 shares of our common stock in open market transactions in the first nine months of fiscal year 2022.

 

We are investigating various uses for our excess cash and short-term investments. We have a stock buyback program with 876,786 shares remaining authorized at October 31, 2023. We typically repurchase our common stock when our stock price is trading at a price we deem to be a discount to the underlying value of our net assets. We plan to seek and evaluate various investment opportunities including ethanol and/or energy related, carbon sequestration related, agricultural or other ventures we believe meet our investment criteria. If all approvals and permits are received, we expect capital expenditures related to the construction at the One Earth plant to approximate $165 million, inclusive of the carbon sequestration project and plant capacity expansion and ongoing efforts to reduce CI scoring, which we currently plan to

pay from our available cash. As of October 31, 2023, we have spent $16.0 million life-to-date and are contractually committed to spend an additional $31.2 million toward the carbon sequestration project. As of October 31, 2023, we have spent $8.5 million life-to-date and are contractually committed to spend an additional $6.9 million toward plant capacity expansion and CI scoring reduction efforts. For all projects, we plan to spend $40 million to $50 million during the remainder of fiscal year 2023.

 

Forward-Looking Statements

 

This Form 10-Q contains or may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the effect of pandemics such as COVID-19 on the Company’s business operations, including impacts on supplies, demand, personnel and other factors, the impact of legislative and regulatory changes, the price volatility and availability of corn, distillers grains, ethanol, distillers corn oil, gasoline and natural gas, commodity market risk, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, success in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, changes in the international, national or regional economies, the impact of inflation, the ability to attract employees, weather, results of income tax audits, changes in income tax laws or regulations, the impact of U.S. foreign trade policy, changes in foreign currency exchange rates and the effects of terrorism or acts of war. The Company does not intend to update publicly any forward-looking statements except as required by law. Other factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023 (File No. 001-09097).

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

We are exposed to the impact of market fluctuations associated with commodity prices as discussed below.

 

We manage a portion of our risk with respect to the volatility of commodity prices inherent in the ethanol industry by using forward fixed-price purchase and fixed-price sale contracts and exchange traded commodity futures contracts. Our remaining exposure to market risk, which includes the impact of our risk management activities resulting from our fixed-price purchase and sale contracts and derivatives, is based on the estimated effect on pre-tax income for the twelve months following October 31, 2023 is as follows, assuming normal operating capacity (amounts in thousands):

 

Commodity		Estimated Total Volume for 12 Months		Unit of Measure		Decrease in Pre-tax Income From a 10% Adverse Change in Price
Ethanol		284,000		Gallons		$ 49,365
Corn		101,400		Bushels		$ 44,646
Distillers Grains		681		Tons		$ 10,401
Distillers Corn Oil		89,800		Pounds		$   4,779
Natural Gas		7,400		MmBtu		$   2,384

 

Item 4. Controls and Procedures

 

Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are, from time to time, involved in various legal proceedings incidental to the conduct of our business, We believe that any current proceedings will not have a material adverse effect on our financial condition or results of operations.

 

Item 1A. Risk Factors

 

There have been no material changes to the risk factors discussed in our Annual Report on Form 10-K for the year ended January 31, 2023.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

On August 31, 2021, our Board of Directors increased our share repurchase authorization by an additional 1,500,000 shares (split-adjusted). At October 31, 2023, a total of 876,786 shares remained available to purchase under this authorization.

 

There were no share repurchases by the Company in the third quarter of fiscal year 2023.

 

Item 3. Defaults upon Senior Securities

 

Not Applicable

 

Item 4. Mine Safety Disclosures

 

Not Applicable

 

Item 5. Other Information

 

Not Applicable

Item 6. Exhibits

 

The following exhibits are filed with this report:

 

31		Rule 13a-14(a)/15d-14(a) Certifications
32		Section 1350 Certifications
101		The following information from REX American Resources Corporation Quarterly Report on Form 10-Q for the quarter ended October 31, 2023, formatted in iXBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements.

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

REX American Resources Corporation

Registrant

 

Signature	Title	Date
/s/ Zafar A. Rizvi (Zafar A. Rizvi)   /s/ Douglas L. Bruggeman (Douglas L. Bruggeman)	Chief Executive Officer and President (Chief Executive Officer)   Vice President, Finance and Treasurer (Chief Financial Officer)	December 4, 2023   December 4, 2023

Exhibit 31

 

CERTIFICATIONS

 

I, Zafar A. Rizvi, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of REX American Resources Corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

	Date: December 4, 2023
	/s/ Zafar A. Rizvi
	Zafar A. Rizvi
	Chief Executive Officer and President

CERTIFICATIONS

 

I, Douglas L. Bruggeman, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of REX American Resources Corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

	Date: December 4, 2023
	/s/ Douglas L. Bruggeman
	Douglas L. Bruggeman
	Vice President, Finance, Treasurer and
	Chief Financial Officer

Exhibit 32

 

REX American Resources Corporation

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED BY SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned officers of REX American Resources Corporation (the “Company”) hereby certify, to their knowledge, that the Company’s Quarterly Report on Form 10-Q for the period ended October 31, 2023 which this certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

/s/ Zafar A. Rizvi
Zafar A. Rizvi
Chief Executive Officer and President
/s/ Douglas L. Bruggeman
Douglas L. Bruggeman
Vice President, Finance, Treasurer and
Chief Financial Officer
Date:  December 4, 2023

v3.23.3

Document And Entity Information - shares	9 Months Ended
	Oct. 31, 2023	Dec. 01, 2023
Document Information Line Items
Entity Registrant Name	REX AMERICAN RESOURCES CORPORATION
Trading Symbol	REX
Document Type	10-Q
Current Fiscal Year End Date	--01-31
Entity Common Stock, Shares Outstanding		17,503,745
Amendment Flag	false
Entity Central Index Key	0000744187
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Period End Date	Oct. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-09097
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1095548
Entity Address, Address Line One	7720 Paragon Road
Entity Address, City or Town	Dayton
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45459
City Area Code	937
Local Phone Number	276-3931
Title of 12(b) Security	Common stock, $0.01 par value
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

v3.23.3

Consolidated Condensed Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023
Current assets:
Cash and cash equivalents	$ 72,828	$ 69,612
Short-term investments	259,172	211,331
Restricted cash	1,728	1,735
Accounts receivable	30,138	25,162
Inventory	37,515	48,744
Refundable income taxes	4,448	2,962
Prepaid expenses and other	12,256	13,098
Total current assets	418,085	372,644
Property and equipment, net	144,567	135,497
Operating lease right-of-use assets	14,516	15,214
Other assets	13,589	23,179
Equity method investment	36,807	33,045
Total assets	627,564	579,579
Current liabilities:
Accounts payable – trade (includes $1.9 million and $1.5 million with related parties at October 31, 2023 and January 31, 2023, respectively)	28,766	34,091
Current operating lease liabilities	5,082	5,180
Accrued expenses and other current liabilities	14,842	15,328
Total current liabilities	48,690	54,599
Long-term liabilities:
Deferred taxes	1,097	1,097
Long-term operating lease liabilities	9,157	9,855
Other long-term liabilities	3,072	3,034
Total long-term liabilities	13,326	13,986
REX shareholders’ equity:
Common stock	299	299
Paid-in capital	3,475	578
Retained earnings	681,193	640,826
Treasury stock	(191,974)	(193,721)
Total REX shareholders’ equity	492,993	447,982
Noncontrolling interests	72,555	63,012
Total equity	565,548	510,994
Total liabilities and equity	$ 627,564	$ 579,579

v3.23.3

Consolidated Condensed Balance Sheets (Parentheticals) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 31, 2023	Jan. 31, 2023
Statement of Financial Position [Abstract]
Accounts payable, related parties	$ 1.9	$ 1.5

v3.23.3

Consolidated Condensed Statement of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Income Statement [Abstract]
Net sales and revenue	$ 221,079	$ 220,277	$ 645,770	$ 654,833
Cost of sales (includes $32,723 and $35,155 with related parties for the quarters ended October 31, 2023 and 2022, respectively, and $92,610 and $101,240 with related parties for the nine months ended October 31, 2023 and 2022, respectively)	181,789	211,004	577,962	619,549
Gross profit	39,290	9,273	67,808	35,284
Selling, general and administrative expenses	(7,609)	(5,823)	(21,996)	(17,689)
Equity in income of unconsolidated affiliates	4,738	661	9,275	6,210
Interest and other income, net	4,863	1,983	10,935	10,338
Income before income taxes	41,282	6,094	66,022	34,143
Provision for income taxes	(9,640)	(1,196)	(15,396)	(7,374)
Net income	31,642	4,898	50,626	26,769
Net income attributable to noncontrolling interests	(5,566)	(1,714)	(10,259)	(7,233)
Net income attributable to REX common shareholders	$ 26,076	$ 3,184	$ 40,367	$ 19,536
Weighted average shares outstanding – basic and diluted (in Shares)	17,531	17,591	17,461	17,714
Basic and diluted net income per share attributable to REX common shareholders (in Dollars per share)	$ 1.49	$ 0.18	$ 2.31	$ 1.1

v3.23.3

Consolidated Condensed Statement of Operations (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Income Statement [Abstract]
Cost of sales, related parties	$ 32,723	$ 35,155	$ 92,610	$ 101,240

v3.23.3

Consolidated Condensed Statements of Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Treasury Stock, Common [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]
Balance at Jan. 31, 2022	$ 487,562	$ 299	$ (181,114)		$ 611,607	$ 56,770
Balance (in Shares) at Jan. 31, 2022		29,853,000	12,092,000
Net income	26,769				19,536	7,233
Treasury stock acquired	(13,012)		$ (13,012)
Treasury stock acquired (in Shares)			472,000
Noncontrolling interests distribution and other	(1,730)					(1,730)
Issuance of equity awards and stock based compensation expense	2,156		$ 356	$ 278	1,522
Issuance of equity awards and stock based compensation expense (in Shares)			(101,000)
Balance at Oct. 31, 2022	501,745	$ 299	$ (193,770)	278	632,665	62,273
Balance (in Shares) at Oct. 31, 2022		29,853,000	12,463,000
Balance at Jul. 31, 2022	503,440	$ 299	$ (186,996)		629,481	60,656
Balance (in Shares) at Jul. 31, 2022		29,853,000	12,213,000
Net income	4,898				3,184	1,714
Treasury stock acquired	(6,819)		$ (6,819)
Treasury stock acquired (in Shares)			250,000
Noncontrolling interests distribution and other	(97)					(97)
Issuance of equity awards and stock based compensation expense	323		$ 45	278
Balance at Oct. 31, 2022	501,745	$ 299	$ (193,770)	278	632,665	62,273
Balance (in Shares) at Oct. 31, 2022		29,853,000	12,463,000
Balance at Jan. 31, 2023	510,994	$ 299	$ (193,721)	578	640,826	63,012
Balance (in Shares) at Jan. 31, 2023		29,853,000	12,463,000
Net income	50,626				40,367	10,259
Noncontrolling interests distribution and other	(716)					(716)
Issuance of equity awards and stock based compensation expense	4,644		$ 1,747	2,897
Issuance of equity awards and stock based compensation expense (in Shares)			(113,000)
Balance at Oct. 31, 2023	565,548	$ 299	$ (191,974)	3,475	681,193	72,555
Balance (in Shares) at Oct. 31, 2023		29,853,000	12,350,000
Balance at Jul. 31, 2023	533,549	$ 299	$ (192,037)	3,181	655,117	66,989
Balance (in Shares) at Jul. 31, 2023		29,853,000	12,350,000
Net income	31,642				26,076	5,566
Issuance of equity awards and stock based compensation expense	357		$ 63	294
Balance at Oct. 31, 2023	$ 565,548	$ 299	$ (191,974)	$ 3,475	$ 681,193	$ 72,555
Balance (in Shares) at Oct. 31, 2023		29,853,000	12,350,000

v3.23.3

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Statement of Cash Flows [Abstract]
Net income including noncontrolling interests	$ 50,626	$ 26,769
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	13,371	13,503
Amortization of operating lease right-of-use assets	3,766	4,105
Income from equity method investments	(9,275)	(6,210)
Dividends received from equity method investments	5,513	3,007
Interest income from investments	(6,950)	(1,098)
Deferred income tax	10,048	4,964
Stock based compensation expense	5,146	1,295
Loss (gain) on sale of property and equipment – net	205	(91)
Changes in assets and liabilities:
Accounts receivable	(4,976)	3,146
Inventories	11,229	180
Refundable income taxes	(1,486)	66
Other assets	409	649
Accounts payable, trade	(5,622)	7,990
Other liabilities	(4,812)	(4,281)
Net cash provided by operating activities	67,192	53,994
Cash flows from investing activities:
Capital expenditures	(22,359)	(7,182)
Purchase of short-term investments	(378,381)	(307,371)
Maturity of short-term investments	337,490	180,527
Proceeds from sale of real estate and property and equipment	10	0
Deposits	(27)	0
Net cash used in investing activities	(63,267)	(134,026)
Cash flows from financing activities:
Treasury stock acquired	0	(13,012)
Payments to noncontrolling interests holders	(716)	(1,730)
Net cash used in financing activities	(716)	(14,742)
Net increase (decrease) in cash, cash equivalents and restricted cash	3,209	(94,774)
Cash, cash equivalents and restricted cash, beginning of period	71,347	232,068
Cash, cash equivalents and restricted cash, end of period	74,556	137,294
Non cash investing activities – Accrued capital expenditures	722	93
Non cash financing activities – Stock awards accrued	1,467	679
Non cash financing activities – Stock awards issued	965	1,539
Right-of-use assets acquired and liabilities incurred upon lease execution	3,210	7,632
Cash and cash equivalents	72,828	135,986
Restricted cash	1,728	1,308
Total cash, cash equivalents and restricted cash	$ 74,556	$ 137,294

v3.23.3

Consolidated Financial Statements	9 Months Ended
	Oct. 31, 2023
Condensed Financial Information Disclosure [Abstract]
Condensed Financial Information of Parent Company Only Disclosure [Text Block]	Note 1. Consolidated Financial Statements   References to the Company – References to “REX” or the “Company” in the consolidated financial statements and in these notes to the consolidated condensed financial statements refer to REX American Resources Corporation, a Delaware corporation, and its majority and wholly owned subsidiaries.   The consolidated financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Financial information as of January 31, 2023 included in these financial statements has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2023 (fiscal year 2022). These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year.   Basis of Consolidation – The consolidated financial statements in this report include the operating results and financial position of the Company. All intercompany balances and transactions have been eliminated. The Company consolidates the results of its wholly owned and majority owned subsidiaries. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Statements of Operations on a delayed basis of one month as One Earth has a fiscal year end of December 31.   Stock Split – On June 21, 2022, the Board of Directors of the Company adopted resolutions declaring a three-for-one split of the Company’s Common Stock to be effectuated in the form of a 200% stock dividend, payable on August 5, 2022 to stockholders of record at the close of business on July 29, 2022.   Nature of Operations – The Company has one reportable segment, ethanol and by-products. Within the ethanol and by-products segment, the Company has equity investments in three ethanol limited liability companies, two of which are majority ownership interests.

v3.23.3

Accounting Policies	9 Months Ended
	Oct. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 2. Accounting Policies   The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the Company’s fiscal year 2022 Annual Report on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates.   Cash and Cash Equivalents   Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.   Revenue Recognition   The Company recognizes sales of ethanol, distillers grains and distillers corn oil when obligations under the terms of the respective contracts with customers are satisfied; this occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products.   Cost of Sales   Cost of sales includes depreciation, costs of raw materials, third-party freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant repair and maintenance costs, plant management, certain compensation costs and general facility overhead charges.   Selling, General and Administrative (“SG&A”) Expenses   The Company includes non-production related costs such as professional fees, selling charges and certain payroll in SG&A expenses.   Change in Accounting Principles   Effective for the second quarter of fiscal year 2023, the Company changed the method of accounting for shipping and handling costs for products sold to customers from recorded within “Selling, general and administrative expenses” to recorded within “Cost of sales” on the accompanying Consolidated Statements of Operations. While both presentations are allowable under accounting principles generally accepted in the United States of America, the Company believes that this change in classification is preferable because it improves the comparability of gross margin between periods and among industry peers. The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:       Three Months Ended October 31, 2022                   As Previously Reported   Effect of Change   As Currently Reported               Cost of sales   $208,941   $2,063   $211,004               Gross profit   $11,336   $(2,063)   $9,273               Selling, general and administrative   $(7,886)   $2,063   $(5,823)       Nine Months Ended October 31, 2022                   As Previously Reported   Effect of Change   As Currently Reported               Cost of sales   $615,001   $4,548   $619,549               Gross profit   $39,832   $(4,548)   $35,284               Selling, general and administrative   $(22,237)   $4,548   $(17,689)   Financial Instruments   Certain of the forward corn purchase and ethanol, distillers grains and distillers corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of corn that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and distillers corn oil in quantities expected to be produced by the Company over a reasonable period of time in the normal course of business.   The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting. Income Taxes   The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $8.7 million and $2.2 million and received no refunds during the nine months ended October 31, 2023 and 2022, respectively.   As of October 31, 2023, and January 31, 2023, total unrecognized tax benefits were approximately $19,033,000. Accrued penalties and interest were approximately $64,000 and approximately $55,000 at October 31, 2023 and January 31, 2023, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $18.9 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.   Inventory   Inventories are carried at the lower of cost or net realizable value on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities associated with producing ethanol and related by-products. Inventory is written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. The Company did not record any inventory write-downs at October 31, 2023. The Company recorded inventory write-downs of approximately $0.7 million in cost of sales at January 31, 2023. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory and changes in commodity prices at a given point in time.   The components of inventory are as follows as of the dates presented (amounts in thousands):       October 31, 2023     January 31, 2023                     Ethanol and other finished goods   $ 8,035     $ 12,695   Work in process     5,697       10,194   Corn and other raw materials     23,783       25,855   Total   $ 37,515     $ 48,744   Property and Equipment   Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment.   In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable. The Company did not identify any indicators of impairment or record any impairment charges during the first nine months of fiscal years 2023 or 2022.   The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any.   Investments   The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.   The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Statements of Operations and a new cost basis in the investment is established.   Short-term investments, consisting of U.S. government obligations, are considered held to maturity, and therefore are carried at amortized historical cost.   Recently Issued Accounting Standards   In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

v3.23.3

Net Sales and Revenue	9 Months Ended
	Oct. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Note 3. Net Sales and Revenue   The Company recognizes sales of products when obligations under the terms of the respective contracts with customers are satisfied. This occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods. Sales, value added and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.   The majority of the Company’s sales have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not generally include a significant financing component. The Company has not historically entered into sales contracts in which payment is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.   The following tables shows disaggregated revenue by product (amounts in thousands):       Three Months Ended October 31,     Nine Months Ended October 31,       2023     2022     2023     2022   Ethanol   $ 170,194     $ 165,135     $ 495,103     $ 502,404   Dried distillers grains     34,983       38,009       106,632       104,167   Distillers corn oil     14,756       14,648       39,257       39,973   Modified distillers grains     1,159       2,477       3,814       9,288   Derivative financial instrument (losses) gains     (20)       8       840       (1,144)   Other     7       -       124       145   Total   $ 221,079     $ 220,277     $ 645,770     $ 654,833

v3.23.3

Leases	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block [Abstract]
Leases of Lessee Disclosure [Text Block]	Note 4. Leases   At October 31, 2023, the Company had lease agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream.   The components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):       Three Months Ended October 31,     Nine Months Ended October 31,       2023     2022     2023     2022                             Operating lease expense   $ 1,499     $ 2,060     $ 4,691     $ 5,661   Variable lease expense     (26)       92       277       757   Total lease expense   $ 1,473     $ 2,152     $ 4,968     $ 6,418   The following table is a summary of future minimum rentals on such leases at October 31, 2023 (amounts in thousands):   Years Ended January 31,   Minimum Rentals             Remainder of 2024   $ 1,582   2025     5,108   2026     2,955   2027     2,907   2028     2,477   Thereafter     1,154   Total     16,183   Less:  present value discount     1,944   Operating lease liabilities   $ 14,239     At October 31, 2023, the weighted average remaining lease term is 3.5 years, and the weighted average discount rate is 5.87% for the outstanding leases. At January 31, 2023, the weighted average remaining lease term was 3.7 years, and the weighted average discount rate was 5.51% for the outstanding leases.

v3.23.3

Fair Value	9 Months Ended
	Oct. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Note 5. Fair Value   The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), which provides a framework for measuring fair value under accounting principles generally accepted in the United States of America. This accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.   The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative instruments at fair value.   The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate. To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2023 are summarized below (amounts in thousands):       Level 1     Level 2     Level 3     Fair Value                             Commodity futures asset (1)   $ -     $ 172     $ -     $ 172                                     Forward purchase contracts liability (2)   $ -     $ 1,405     $ -     $ 1,405   Commodity futures liability (2)     -       7       -       7   Total liabilities   $ -     $ 1,412     $ -     $ 1,412     Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2023 aresummarized below (amounts in thousands):       Level 1     Level 2     Level 3     Fair Value                             Forward purchase contracts asset (1)   $ -     $ 105     $ -     $ 105   Commodity futures asset (1)     -       80       -       80   Total assets   $ -     $ 185     $ -     $ 185                                     Forward purchase contracts liability (2)   $ -     $ 355     $ -     $ 355   Commodity futures liability (2)     -       67       -       67   Total liabilities   $ -     $ 422     $ -     $ 422     (1) The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. (2) The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets.

v3.23.3

Property and Equipment	9 Months Ended
	Oct. 31, 2023
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	Note 6. Property and Equipment   The components of property and equipment are as follows for the periods presented (amounts in thousands):       October 31, 2023     January 31, 2023                     Land and improvements   $ 31,205     $ 30,194   Buildings and improvements     23,796       23,707   Machinery, equipment, and fixtures     305,310       299,665   Construction in progress     25,367       10,255         385,678       363,821   Less: Accumulated depreciation     (241,111)       (228,324)   Total   $ 144,567     $ 135,497

v3.23.3

Other Assets	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Other Assets Disclosure [Text Block]	Note 7. Other Assets   The components of other assets are as follows for the periods presented (amounts in thousands):       October 31, 2023     January 31, 2023                     Deferred taxes   $ 11,916     $ 21,964   Other     1,673       1,215   Total   $ 13,589     $ 23,179

v3.23.3

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	Note 8. Accrued Expenses and Other Current Liabilities   The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):       October 31, 2023     January 31, 2023                     Accrued payroll and related items   $ 6,943     $ 4,428   Accrued utility charges     2,749       4,116   Accrued transportation related items     918       1,311   Accrued real estate taxes     1,387       1,850   Commodity futures     7       67   Forward purchase contracts     1,405       355   Accrued income taxes     130       2,049   Other     1,303       1,152   Total   $ 14,842     $ 15,328

v3.23.3

Derivative Financial Instruments	9 Months Ended
	Oct. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Note 9. Derivative Financial Instruments   The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn and natural gas) and sale (ethanol, distillers grains and distillers corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.   The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Balance Sheets in which the fair values are reflected (in thousands):       Asset Derivatives Fair Value     Liability Derivatives Fair Value       October 31, 2023     January 31, 2023     October 31, 2023     January 31, 2023                                     Commodity futures (1)   $ 172     $ 80     $ 7     $ 67   Forward purchase contracts (2)     -       105       1,405       355   Total   $ 172     $ 185     $ 1,412     $ 422     (1) Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023.   (2) Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.   As of October 31, 2023, and January 31, 2023, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements with the counterparties. The Company’s accounting policy is to offset positions and amounts owed with the same counterparties. As of October 31, 2023, and January 31, 2023, the gross positions of the enforceable master netting agreements were not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparties may require collateral to secure the Company’s derivative contract position. The Company was required to maintain collateral in the amount of approximately $1.7 million to secure the Company’s derivative liability positions at both October 31, 2023 and January 31, 2023, which is recorded as “Restricted cash” on the accompanying Consolidated Balance Sheets.   See Note 5 which contains fair value information related to derivative financial instruments.   The Company recognized (losses) and gains, which are included in “Net sales and revenue” in the accompanying Consolidated Statement of Operations, on derivative financial instruments related to ethanol sales contracts of approximately $(20,000) and $8,000 for the third quarter of fiscal years 2023 and 2022, respectively. The Company recognized gains and (losses) on derivative financial instruments related to ethanol sales contracts of approximately $0.8 million and $(1.1) million for the first nine months of fiscal years 2023 and 2022, respectively.   The Company recognized gains, which are included in “Cost of sales” in the accompanying Consolidated Statement of Operations, on derivative financial instruments related to corn purchase contracts of approximately $10.6 million and of $9,000 for the third quarter of fiscal years 2023 and 2022, respectively. The Company recognized gains (losses) on derivative financial instruments related to corn purchase contracts of approximately $15.7 million and $(12.9) million for the first nine months of fiscal years 2023 and 2022, respectively.

v3.23.3

Investments	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Investment [Text Block]	Note 10. Investments   Equity Method Investment in Big River   The following table summarizes the Company’s equity method investment at October 31, 2023 and January 31, 2023 (dollars in thousands):           Carrying Amount Entity   Ownership Percentage   October 31, 2023   January 31, 2023               Big River   10.3%   $36,807   $ 33,045   Undistributed earnings of the Company’s equity method investee totaled approximately $16.8 million and approximately $13.0 million at October 31, 2023 and January 31, 2023, respectively. The Company received dividends from its equity method investee of approximately $5.5 million and $3.0 million in the first nine months of fiscal year 2023 and 2022, respectively. Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):       Three Months Ended October 31,     Nine Months Ended October 31,       2023     2022     2023     2022                                     Net sales and revenue   $ 351,390     $ 398,838     $ 1,128,012     $ 1,200,980   Gross profit   $ 52,869     $ 11,432     $ 107,395     $ 60,593   Income from continuing operations   $ 45,955     $ 6,415     $ 89,954     $ 60,230   Net income   $ 45,955     $ 6,415     $ 89,954     $ 60,230     Short-term Investments   At October 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $259.2 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 5.5%. Unrealized gains or losses were insignificant.   At January 31, 2023, the Company owned United States Treasury Bills (classified as short-term investments) that had an amortized cost, or carrying value, of approximately $211.3 million. The contractual maturity of these investments was less than one year. The yield to maturity rate was approximately 3.9%. Unrealized gains or losses were insignificant.

v3.23.3

Employee Benefits	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Compensation and Employee Benefit Plans [Text Block]	Note 11. Employee Benefits   The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 1,650,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. Until 2022, the Company had only granted restricted stock awards. In May 2022, the Company issued restricted stock units to certain officers of the Company which vest based on the Company’s Total Shareholder Return (“TSR”) compared to the TSRs of companies that comprise the Russell 2000 Index over a three-year performance period. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records non-cash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At October 31, 2023, 1,229,116 shares remain available for issuance under the Plan, excluding the impact of the 67,500 restricted stock units that may vest between zero and 135,000 shares of stock depending on certain performance metrics being achieved.   Restricted Stock Awards   As a component of their compensation, restricted stock has been granted to directors and certain employees at the closing market price of REX common stock on the grant date. In addition, one quarter of executives’ incentive compensation is payable by an award of restricted stock-based on the then closing market price of REX common stock on the grant date. The Company’s board of directors has determined that the grant date will be June 15th, or the next business day if June 15th is not a business day, for all grants of restricted stock.   At October 31, 2023 and January 31, 2023, unrecognized compensation cost related to nonvested restricted stock awards was approximately $545,000 and $450,000 respectively. The following tables summarize non-vested restricted stock award activity for the periods presented:       Nine Months Ended October 31, 2023               Non-Vested Shares     Weighted Average Grant Date Fair Value (000’s)     Weighted Average Remaining Vesting Term (in years)                           Non-Vested at January 31, 2023     81,264     $ 2,320        2   Granted     113,726       3,945           Forfeited     -       -           Vested     32,135       896                                     Non-Vested at October 31, 2023     162,855     $ 5,369       2         Nine Months Ended October 31, 2022                           Non-Vested Shares       Weighted Average Grant Date Fair Value (000’s)     Weighted Average Remaining Vesting Term (in years)                           Non-Vested at January 31, 2022     30,167     $ 773       1   Granted     70,689       2,032           Forfeited     -       -           Vested     18,403       451                                     Non-Vested at October 31, 2022     82,453     $ 2,354       2     Restricted Stock Units (“RSUs”)   In May 2022, the Company issued a total of 67,500 RSUs to certain officers. The number of RSUs eligible to vest will be determined based on how the Company’s TSR compares to the TSR of companies that comprise the Russell 2000 Index during the performance period ending December 31, 2024. The number of RSUs eligible to vest ranges from zero percent to two hundred percent, depending on actual performance during the performance period. While dilutive, the impact to earnings per share is not material to the financial statements.   For the three and nine-month periods ended October 31, 2023, the Company recognized compensation cost of approximately $265,000 and $794,000, respectively, related to the RSUs. For the three and nine-month periods ended October 31, 2022, the Company recognized compensation cost of approximately $253,000 and $441,100, respectively, related to the RSUs. Unrecognized compensation cost related to the RSUs at October 31, 2023 and January 31, 2023, was approximately $1.2 million and $2.0 million, respectively.

v3.23.3

Income Taxes	9 Months Ended
	Oct. 31, 2023
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 12. Income Taxes   The Company’s income tax provision was approximately $9.6 million and $1.2 million for the three months ended October 31, 2023 and 2022, respectively. The Company’s income tax provision was approximately $15.4 and $7.4 million for the nine months ended October 31, 2023 and 2022, respectively.   The Company assessed all available positive and negative evidence to determine whether it expects sufficient future taxable income will be generated to allow for the realization of existing federal deferred tax assets. There is sufficient objectively verifiable income for management to conclude that it is more likely than not that the Company will utilize available federal deferred tax assets prior to their expiration.   The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2014 and prior. The Company is currently undergoing a federal income tax examination for the years ended January 31, 2015 through January 31, 2020.   On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months; however, the Company does not expect the change to have a material effect on results of operations or financial position. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):       Nine Months Ended October 31,       2023     2022                     Unrecognized tax benefits, beginning of period   $ 19,088     $ 16,781   Changes for prior years’ tax positions     9       94   Changes for current year tax positions     -       -   Unrecognized tax benefits, end of period   $ 19,097     $ 16,875

v3.23.3

Commitments and Contingencies	9 Months Ended
	Oct. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Note 13. Commitments and Contingencies   The Company may be involved in various legal actions arising in the normal course of business, from time to time. After taking into consideration legal counsel’s evaluations of any such action(s), management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated Financial Statements. The Company maintained a liability of $250,000 at October 31, 2023 and January 31, 2023, as a probable and reasonably estimable loss associated with a legal contingency for a patent infringement case involving our refined coal facility which is no longer in operation.   At October 31, 2023, One Earth and NuGen had combined forward purchase contracts for approximately 13.8 million bushels of corn, the principal raw material for their ethanol plants, and they have combined forward purchase contracts for approximately 1.6 million MmBtu (million British thermal unit) of natural gas.   At October 31, 2023, One Earth and NuGen had combined sales commitments for approximately 53.8 million gallons of ethanol, approximately 111,000 tons of distillers grains and approximately 14.2 million pounds of distillers corn oil.   At October 31, 2023, One Earth had signed non-cancelable contracts for capital projects with approximately $38.1 million remaining in future payments, of which $31.2 million is related to One Earth’s carbon sequestration project and $6.9 million relates to planned plant expansion.

v3.23.3

Related-Party Transactions	9 Months Ended
	Oct. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 14. Related-Party Transactions   During the third quarters of fiscal years 2023 and 2022, One Earth and NuGen purchased approximately $32.7 million and $35.2 million, respectively, of corn (and other supplies) from minority equity investors and board members of those affiliates. Such purchases totaled approximately $92.6 million and $101.2 million for the nine months ended October 31, 2023 and 2022, respectively. The Company had amounts payable to related parties of approximately $1.9 million and $1.5 million at October 31, 2023 and January 31, 2023, respectively.

v3.23.3

Accounting Policies, by Policy (Policies)	9 Months Ended
	Oct. 31, 2023
Accounting Policies [Abstract]
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.
Revenue [Policy Text Block]	Revenue Recognition The Company recognizes sales of ethanol, distillers grains and distillers corn oil when obligations under the terms of the respective contracts with customers are satisfied; this occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products.
Cost of Goods and Service [Policy Text Block]	Cost of Sales Cost of sales includes depreciation, costs of raw materials, third-party freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant repair and maintenance costs, plant management, certain compensation costs and general facility overhead charges.
Selling, General and Administrative Expenses, Policy [Policy Text Block]	Selling, General and Administrative (“SG&A”) Expenses The Company includes non-production related costs such as professional fees, selling charges and certain payroll in SG&A expenses.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Financial Instruments Certain of the forward corn purchase and ethanol, distillers grains and distillers corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of corn that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and distillers corn oil in quantities expected to be produced by the Company over a reasonable period of time in the normal course of business. The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available positive and negative evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $8.7 million and $2.2 million and received no refunds during the nine months ended October 31, 2023 and 2022, respectively. As of October 31, 2023, and January 31, 2023, total unrecognized tax benefits were approximately $19,033,000. Accrued penalties and interest were approximately $64,000 and approximately $55,000 at October 31, 2023 and January 31, 2023, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $18.9 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.
Inventory, Policy [Policy Text Block]	Inventory Inventories are carried at the lower of cost or net realizable value on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities associated with producing ethanol and related by-products. Inventory is written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. The Company did not record any inventory write-downs at October 31, 2023. The Company recorded inventory write-downs of approximately $0.7 million in cost of sales at January 31, 2023. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory and changes in commodity prices at a given point in time. The components of inventory are as follows as of the dates presented (amounts in thousands):     October 31, 2023     January 31, 2023                     Ethanol and other finished goods   $ 8,035     $ 12,695   Work in process     5,697       10,194   Corn and other raw materials     23,783       25,855   Total   $ 37,515     $ 48,744
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment. In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable. The Company did not identify any indicators of impairment or record any impairment charges during the first nine months of fiscal years 2023 or 2022. The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any.
Investment, Policy [Policy Text Block]	Investments The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31. The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Statements of Operations and a new cost basis in the investment is established. Short-term investments, consisting of U.S. government obligations, are considered held to maturity, and therefore are carried at amortized historical cost.
Accounting, Policy [Policy Text Block]	Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures.

v3.23.3

Accounting Policies (Tables)	3 Months Ended	9 Months Ended
	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Accounting Policies [Abstract]
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:     Three Months Ended October 31, 2022                   As Previously Reported   Effect of Change   As Currently Reported               Cost of sales   $208,941   $2,063   $211,004               Gross profit   $11,336   $(2,063)   $9,273               Selling, general and administrative   $(7,886)   $2,063   $(5,823)		The following tables show the effect of the retrospective change to the Consolidated Statements of Operations previously presented:     Nine Months Ended October 31, 2022                   As Previously Reported   Effect of Change   As Currently Reported               Cost of sales   $615,001   $4,548   $619,549               Gross profit   $39,832   $(4,548)   $35,284               Selling, general and administrative   $(22,237)   $4,548   $(17,689)
Schedule of Inventory, Current [Table Text Block]		The components of inventory are as follows as of the dates presented (amounts in thousands):     October 31, 2023     January 31, 2023                     Ethanol and other finished goods   $ 8,035     $ 12,695   Work in process     5,697       10,194   Corn and other raw materials     23,783       25,855   Total   $ 37,515     $ 48,744

v3.23.3

Net Sales and Revenue (Tables)	9 Months Ended
	Oct. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following tables shows disaggregated revenue by product (amounts in thousands):     Three Months Ended October 31,     Nine Months Ended October 31,       2023     2022     2023     2022   Ethanol   $ 170,194     $ 165,135     $ 495,103     $ 502,404   Dried distillers grains     34,983       38,009       106,632       104,167   Distillers corn oil     14,756       14,648       39,257       39,973   Modified distillers grains     1,159       2,477       3,814       9,288   Derivative financial instrument (losses) gains     (20)       8       840       (1,144)   Other     7       -       124       145   Total   $ 221,079     $ 220,277     $ 645,770     $ 654,833

v3.23.3

Leases (Tables)	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block [Abstract]
Lease, Cost [Table Text Block]	The components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):     Three Months Ended October 31,     Nine Months Ended October 31,       2023     2022     2023     2022                             Operating lease expense   $ 1,499     $ 2,060     $ 4,691     $ 5,661   Variable lease expense     (26)       92       277       757   Total lease expense   $ 1,473     $ 2,152     $ 4,968     $ 6,418
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	The following table is a summary of future minimum rentals on such leases at October 31, 2023 (amounts in thousands): Years Ended January 31,   Minimum Rentals             Remainder of 2024   $ 1,582   2025     5,108   2026     2,955   2027     2,907   2028     2,477   Thereafter     1,154   Total     16,183   Less:  present value discount     1,944   Operating lease liabilities   $ 14,239

v3.23.3

Fair Value (Tables)	9 Months Ended
	Oct. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2023 are summarized below (amounts in thousands):     Level 1     Level 2     Level 3     Fair Value                             Commodity futures asset (1)   $ -     $ 172     $ -     $ 172                                     Forward purchase contracts liability (2)   $ -     $ 1,405     $ -     $ 1,405   Commodity futures liability (2)     -       7       -       7   Total liabilities   $ -     $ 1,412     $ -     $ 1,412       Level 1     Level 2     Level 3     Fair Value                             Forward purchase contracts asset (1)   $ -     $ 105     $ -     $ 105   Commodity futures asset (1)     -       80       -       80   Total assets   $ -     $ 185     $ -     $ 185                                     Forward purchase contracts liability (2)   $ -     $ 355     $ -     $ 355   Commodity futures liability (2)     -       67       -       67   Total liabilities   $ -     $ 422     $ -     $ 422   (1) The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. (2) The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets.

v3.23.3

Property and Equipment (Tables)	9 Months Ended
	Oct. 31, 2023
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	The components of property and equipment are as follows for the periods presented (amounts in thousands):     October 31, 2023     January 31, 2023                     Land and improvements   $ 31,205     $ 30,194   Buildings and improvements     23,796       23,707   Machinery, equipment, and fixtures     305,310       299,665   Construction in progress     25,367       10,255         385,678       363,821   Less: Accumulated depreciation     (241,111)       (228,324)   Total   $ 144,567     $ 135,497

v3.23.3

Other Assets (Tables)	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Schedule of Other Assets [Table Text Block]	The components of other assets are as follows for the periods presented (amounts in thousands):     October 31, 2023     January 31, 2023                     Deferred taxes   $ 11,916     $ 21,964   Other     1,673       1,215   Total   $ 13,589     $ 23,179

v3.23.3

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):     October 31, 2023     January 31, 2023                     Accrued payroll and related items   $ 6,943     $ 4,428   Accrued utility charges     2,749       4,116   Accrued transportation related items     918       1,311   Accrued real estate taxes     1,387       1,850   Commodity futures     7       67   Forward purchase contracts     1,405       355   Accrued income taxes     130       2,049   Other     1,303       1,152   Total   $ 14,842     $ 15,328

v3.23.3

Derivative Financial Instruments (Tables)	9 Months Ended
	Oct. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Assets at Fair Value [Table Text Block]	The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Balance Sheets in which the fair values are reflected (in thousands):     Asset Derivatives Fair Value     Liability Derivatives Fair Value       October 31, 2023     January 31, 2023     October 31, 2023     January 31, 2023                                     Commodity futures (1)   $ 172     $ 80     $ 7     $ 67   Forward purchase contracts (2)     -       105       1,405       355   Total   $ 172     $ 185     $ 1,412     $ 422   (1) Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023. (2) Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.

v3.23.3

Investments (Tables)	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Equity Method Investments [Table Text Block]	The following table summarizes the Company’s equity method investment at October 31, 2023 and January 31, 2023 (dollars in thousands):         Carrying Amount Entity   Ownership Percentage   October 31, 2023   January 31, 2023               Big River   10.3%   $36,807   $ 33,045
Schedule of Financial Information for Equity Method Investments [Table Text Block]	Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):     Three Months Ended October 31,     Nine Months Ended October 31,       2023     2022     2023     2022                                     Net sales and revenue   $ 351,390     $ 398,838     $ 1,128,012     $ 1,200,980   Gross profit   $ 52,869     $ 11,432     $ 107,395     $ 60,593   Income from continuing operations   $ 45,955     $ 6,415     $ 89,954     $ 60,230   Net income   $ 45,955     $ 6,415     $ 89,954     $ 60,230

v3.23.3

Employee Benefits (Tables)	9 Months Ended
	Oct. 31, 2023
Disclosure Text Block Supplement [Abstract]
Nonvested Restricted Stock Shares Activity [Table Text Block]	The following tables summarize non-vested restricted stock award activity for the periods presented:     Nine Months Ended October 31, 2023               Non-Vested Shares     Weighted Average Grant Date Fair Value (000’s)     Weighted Average Remaining Vesting Term (in years)                           Non-Vested at January 31, 2023     81,264     $ 2,320        2   Granted     113,726       3,945           Forfeited     -       -           Vested     32,135       896                                     Non-Vested at October 31, 2023     162,855     $ 5,369       2       Nine Months Ended October 31, 2022                           Non-Vested Shares       Weighted Average Grant Date Fair Value (000’s)     Weighted Average Remaining Vesting Term (in years)                           Non-Vested at January 31, 2022     30,167     $ 773       1   Granted     70,689       2,032           Forfeited     -       -           Vested     18,403       451                                     Non-Vested at October 31, 2022     82,453     $ 2,354       2

v3.23.3

Income Taxes (Tables)	9 Months Ended
	Oct. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):     Nine Months Ended October 31,       2023     2022                     Unrecognized tax benefits, beginning of period   $ 19,088     $ 16,781   Changes for prior years’ tax positions     9       94   Changes for current year tax positions     -       -   Unrecognized tax benefits, end of period   $ 19,097     $ 16,875

v3.23.3

Consolidated Financial Statements (Details)	9 Months Ended
	Oct. 31, 2023
Consolidated Financial Statements (Details) [Line Items]
Number of Operating Segments	1
Ethanol [Member]
Consolidated Financial Statements (Details) [Line Items]
Number of Operating Segments	3
Majority-Owned Subsidiary, Nonconsolidated [Member] | Ethanol [Member]
Consolidated Financial Statements (Details) [Line Items]
Number of Operating Segments	2

v3.23.3

Accounting Policies (Details) - USD ($)	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Jan. 31, 2023
Accounting Policies (Details) [Line Items]
Income Taxes Paid	$ 8,700,000	$ 2,200,000
Unrecognized Tax Benefits	19,033,000		$ 19,033,000
Income Tax Examination, Penalties and Interest Accrued	64,000		$ 55,000
Inventory Write-down	700,000
Provision for Income Taxes [Member]
Accounting Policies (Details) [Line Items]
Unrecognized Tax Benefits	$ 18,900,000
Cost of Sales [Member]
Accounting Policies (Details) [Line Items]
Maximum Percentage of Equity Ownership Interest Which May be Considered for Equity Method of Accounting	20.00%
Building and Building Improvements [Member] | Minimum [Member]
Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Building and Building Improvements [Member] | Maximum [Member]
Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Fixtures And Equipment [Member] | Minimum [Member]
Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Fixtures And Equipment [Member] | Maximum [Member]
Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	20 years

v3.23.3

Accounting Policies (Details) - Schedule of Consolidated Statements of Operation - Three Months Ended [Member] $ in Thousands	3 Months Ended
	Oct. 31, 2022 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales	$ 211,004
Gross profit	9,273
Selling, general and administrative	(5,823)
Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales	208,941
Gross profit	11,336
Selling, general and administrative	(7,886)
Effect of Retrospective Change to Classification of Shipping Costs [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales	2,063
Gross profit	(2,063)
Selling, general and administrative	$ 2,063

v3.23.3

Accounting Policies (Details) - Schedule of Consolidated Statements of Operation - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales	$ 181,789	$ 211,004	$ 577,962	$ 619,549
Gross profit	39,290	9,273	67,808	35,284
Selling, general and administrative	$ (7,609)	$ (5,823)	$ (21,996)	(17,689)
Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales				615,001
Gross profit				39,832
Selling, general and administrative				(22,237)
Effect of Retrospective Change to Classification of Shipping Costs [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of sales				4,548
Gross profit				(4,548)
Selling, general and administrative				$ 4,548

v3.23.3

Accounting Policies (Details) - Schedule of Components of Inventory - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023
Schedule Of Components Of Inventory Abstract
Ethanol and other finished goods	$ 8,035	$ 12,695
Work in process	5,697	10,194
Corn and other raw materials	23,783	25,855
Total	$ 37,515	$ 48,744

v3.23.3

Net Sales and Revenue (Details) - Schedule of Disaggregated Revenue by Product - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Segment Reporting Information [Line Items]
Sales of products, continuing operations	$ 221,079	$ 220,277	$ 645,770	$ 654,833
Ethanol [Member]
Segment Reporting Information [Line Items]
Sales of products, continuing operations	170,194	165,135	495,103	502,404
Dried Distillers Grains [Member]
Segment Reporting Information [Line Items]
Sales of products, continuing operations	34,983	38,009	106,632	104,167
Distillers Corn Oil [Member]
Segment Reporting Information [Line Items]
Sales of products, continuing operations	14,756	14,648	39,257	39,973
Modified Distillers Grains [Member]
Segment Reporting Information [Line Items]
Sales of products, continuing operations	1,159	2,477	3,814	9,288
Derivative financial instruments losses [Member]
Segment Reporting Information [Line Items]
Sales of products, continuing operations	(20)	8	840	(1,144)
Other[Member]
Segment Reporting Information [Line Items]
Sales of products, continuing operations	$ 7	$ 0	$ 124	$ 145

v3.23.3

Leases (Details)	Oct. 31, 2023	Jan. 31, 2023
Disclosure Text Block [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	3 years 6 months	3 years 8 months 12 days
Operating Lease, Weighted Average Discount Rate, Percent	5.87%	5.51%

v3.23.3

Leases (Details) - Schedule of Components of Lease Expense - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Schedule Of Components Of Lease Expense Abstract
Operating lease expense	$ 1,499	$ 2,060	$ 4,691	$ 5,661
Variable lease expense	(26)	92	277	757
Total lease expense	$ 1,473	$ 2,152	$ 4,968	$ 6,418

v3.23.3

Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands	Oct. 31, 2023 USD ($)
Schedule Of Future Minimum Rental Payments For Operating Leases Abstract
Remainder of 2024	$ 1,582
2025	5,108
2026	2,955
2027	2,907
2028	2,477
Thereafter	1,154
Total	16,183
Less: present value discount	1,944
Operating lease liabilities	$ 14,239

v3.23.3

Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands		Oct. 31, 2023	Jan. 31, 2023
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures asset	[1]	$ 172	$ 80
Total assets			185
Forward purchase contracts liability	[2]	1,405	355
Commodity futures liability	[2]	7	67
Total liabilities		1,412	422
Forward purchase contracts asset	[1]		105
Fair Value, Inputs, Level 1 [Member]
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures asset	[1]
Total assets
Forward purchase contracts liability	[2]
Commodity futures liability	[2]
Total liabilities
Forward purchase contracts asset	[1]
Fair Value, Inputs, Level 2 [Member]
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures asset	[1]	172	80
Total assets			185
Forward purchase contracts liability	[2]	1,405	355
Commodity futures liability	[2]	7	67
Total liabilities		1,412	422
Forward purchase contracts asset	[1]		105
Fair Value, Inputs, Level 3 [Member]
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures asset	[1]
Total assets
Forward purchase contracts liability	[2]
Commodity futures liability	[2]
Total liabilities
Forward purchase contracts asset	[1]
[1] The forward purchase contracts and commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. [2] The commodity futures and forward purchase contracts liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets.

v3.23.3

Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023
Schedule Of Property And Equipment Abstract
Land and improvements	$ 31,205	$ 30,194
Buildings and improvements	23,796	23,707
Machinery, equipment, and fixtures	305,310	299,665
Construction in progress	25,367	10,255
	385,678	363,821
Less: Accumulated depreciation	(241,111)	(228,324)
Total	$ 144,567	$ 135,497

v3.23.3

Other Assets (Details) - Schedule of Other Assets - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023
Schedule Of Other Assets Abstract
Deferred taxes	$ 11,916	$ 21,964
Other	1,673	1,215
Total	$ 13,589	$ 23,179

v3.23.3

Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023
Schedule Of Accrued Expenses And Other Current Liabilities Abstract
Accrued payroll and related items	$ 6,943	$ 4,428
Accrued utility charges	2,749	4,116
Accrued transportation related items	918	1,311
Accrued real estate taxes	1,387	1,850
Commodity futures	7	67
Forward purchase contracts	1,405	355
Accrued income taxes	130	2,049
Other	1,303	1,152
Total	$ 14,842	$ 15,328

v3.23.3

Derivative Financial Instruments (Details)	3 Months Ended		9 Months Ended
	Oct. 31, 2023 USD ($) bu	Oct. 31, 2022 USD ($)	Oct. 31, 2023 USD ($) bu	Oct. 31, 2022	Jan. 31, 2023 USD ($) bu
Derivative Financial Instruments (Details) [Line Items]
Debt Instrument, Collateral Amount (in Dollars) | $	$ 1,700,000		$ 1,700,000		$ 1,700,000
Gain (Loss) on Derivative Instruments, Net, Sales and Revenue (in Dollars) | $	(20,000)	$ 8,000
Gain (Loss) on Derivative Instruments, Net, Pretax (in Dollars) | $	$ 10,600,000	$ 9,000
Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Description of Location of Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments in Financial Statements			$15.7	(12.9)
Ethanol [Member]
Derivative Financial Instruments (Details) [Line Items]
Description of Location of Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments in Financial Statements			$0.8	(1.1)
Assets [Member] | Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Forward Purchase Contracts, Quantity	13,800,000		13,800,000		12,800,000
Liability [Member] | Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Forward Purchase Contracts, Quantity					5,200,000
Short/Sell [Member] | Assets [Member] | Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Commodity Futures, Quantity	500,000		500,000		3,200,000
Short/Sell [Member] | Liability [Member] | Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Commodity Futures, Quantity	45,000		45,000		1,400,000
Long/Buy [Member] | Assets [Member] | Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Commodity Futures, Quantity	4,700,000		4,700,000		725,000
Long/Buy [Member] | Liability [Member] | Corn [Member]
Derivative Financial Instruments (Details) [Line Items]
Commodity Futures, Quantity	1,300,000		1,300,000

v3.23.3

Derivative Financial Instruments (Details) - Schedule of Fair Values for Derivative Financial Instruments - USD ($) $ in Thousands		Oct. 31, 2023	Jan. 31, 2023
Derivative Financial Instruments (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items]
Asset Derivatives, Fair Value		$ 172	$ 185
Liability Derivatives, Fair Value		1,412	422
Commodity Contract [Member]
Derivative Financial Instruments (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items]
Asset Derivatives, Fair Value	[1]	172	80
Liability Derivatives, Fair Value	[1]	7	67
Forward Contracts [Member]
Derivative Financial Instruments (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items]
Asset Derivatives, Fair Value	[2]	0	105
Liability Derivatives, Fair Value	[2]	$ 1,405	$ 355
[1] Commodity futures assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 0.5 million bushels and 4.7 million bushels of corn, respectively, at October 31, 2023. These contracts included short/sell positions and long/buy positions for approximately 3.2 million bushels and 725,000 bushels of corn, respectively, at January 31, 2023. Commodity futures liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts include short/sell positions and long/buy positions for approximately 45,000 bushels and 1.3 million bushels of corn, respectively, at October 31, 2023.These contracts included short/sell positions for approximately 1.4 million bushels of corn at January 31, 2023. [2] Forward purchase contracts assets are included in “Prepaid expenses and other” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 5.2 million bushels of corn at January 31, 2023. Forward contract liabilities are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Balance Sheets. These contracts were for purchases of approximately 13.8 million bushels and 12.8 million bushels of corn at October 31, 2023 and January 31, 2023, respectively.

v3.23.3

Investments (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Jan. 31, 2023
Disclosure Text Block Supplement [Abstract]
Retained Earnings, Undistributed Earnings from Equity Method Investees	$ 16,800		$ 13,000
Dividends	5,500	$ 3,000
Short-Term Investments	$ 259,172		$ 211,331
Debt Securities, Held-to-Maturity, Weighted Average Yield, Maturity, Year One	5.50%		3.90%

v3.23.3

Investments (Details) - Schedule of Equity Method Investments - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023
Schedule Of Equity Method Investments Abstract
Big River	10.30%
Big River	$ 36,807	$ 33,045

v3.23.3

Investments (Details) - Schedule of Financial Information For Equity Method Investment - Big River [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Investments (Details) - Schedule of Financial Information For Equity Method Investment [Line Items]
Net sales and revenue	$ 351,390	$ 398,838	$ 1,128,012	$ 1,200,980
Gross profit	52,869	11,432	107,395	60,593
Income from continuing operations	45,955	6,415	89,954	60,230
Net income	$ 45,955	$ 6,415	$ 89,954	$ 60,230

v3.23.3

Employee Benefits (Details) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Employee Benefits (Details) [Line Items]
Restricted Stock or Unit Expense	$ 1,200,000	$ 2,000,000	$ 265,000	$ 253,000	$ 794,000	$ 441,100
Rex Shareholders [Member]
Employee Benefits (Details) [Line Items]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 545,000	$ 450,000	$ 545,000		$ 545,000
Share-Based Payment Arrangement, Option [Member] | Stock Option Plans 2015 [Member]
Employee Benefits (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in Shares)	1,650,000		1,650,000		1,650,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in Shares)	1,229,116		1,229,116		1,229,116

v3.23.3

Employee Benefits (Details) - Schedule of Non-Vested Restricted Stock Award Activity - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Schedule Of Non Vested Restricted Stock Award Activity Abstract
Non-Vested Shares, Beginning of Period	81,264	30,167
Weighted Average Grant Date Fair Value, Beginning of Period (in Dollars)	$ 2,320	$ 773
Weighted Average Vesting Term, Beginning of Period	2 years	1 year
Non-Vested Shares, Granted	113,726	70,689
Weighted Average Grant Date Fair Value, Granted (in Dollars per share)	$ 3,945	$ 2,032
Forfeited	0	0
Non-Vested Shares, Vested	32,135	18,403
Weighted Average Grant Date Fair Value, Vested (in Dollars)	$ 896	$ 451
Non-Vested Shares, End of Period	162,855	82,453
Weighted Average Grant Date Fair Value, End of Period (in Dollars)	$ 5,369	$ 2,354
Weighted Average Vesting Term, End of Period	2 years	2 years

v3.23.3

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 9,640	$ 1,196	$ 15,396	$ 7,374

v3.23.3

Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Schedule Of Unrecognized Tax Benefits Roll Forward Abstract
Unrecognized tax benefits, beginning of period	$ 19,088	$ 16,781
Changes for prior years’ tax positions	9	94
Changes for current year tax positions
Unrecognized tax benefits, end of period	$ 19,097	$ 16,875

v3.23.3

Commitments and Contingencies (Details) lb in Millions, gal in Millions, bu in Millions	Oct. 31, 2023 USD ($) MMBTU T lb bu gal	Jan. 31, 2023 USD ($)
Commitments and Contingencies (Details) [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 250,000	$ 250,000
Capital Projects Remaining Future Payments	38,100,000
Capital Projects Remaining Future Payments Subset	31,200,000
Planned Project Expansion	$ 6,900,000
One Earth Energy And Nu Gen Energy [Member]
Commitments and Contingencies (Details) [Line Items]
Quantity of Bushels under Forward Purchase Contract (in US Bushels) | bu	13.8
Quantity Of Natural Gas Under Sales Commitment (in Millions of British Thermal Units) | MMBTU	1.6
Quantity of Ethanol under Sales Commitment (in US Gallons) | gal	53.8
Quantity of Distillers Grains Under Sales Commitment (in US Tons) | T	111,000
Quantity of Non-food Grade Corn Oil Under Sales Commitments (in Pounds) | lb	14.2

v3.23.3

Related-Party Transactions (Details) - One Earth Energy And Nu Gen Energy [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022	Jan. 31, 2023
Related-Party Transactions (Details) [Line Items]
Costs and Expenses, Related Party	$ 32.7	$ 35.2	$ 92.6	$ 101.2
Accounts Payable Related Parties			$ 1.9		$ 1.5

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