Financial Data and Key Metrics Changes - Sales for Q1 2022 increased by 18% due to higher pricing for ethanol distiller grains and corn oil, with ethanol sales at 64.5 million gallons compared to 70 million gallons in Q1 2021 [6] - Gross profit decreased to $11.9 million in Q1 2022 from $19.5 million in the prior year, impacted by higher corn and natural gas prices [6][7] - Net income attributable to REX shareholders from continuing operations was $5.2 million in Q1 2022, down from $7.3 million in the prior year, with total net income per share decreasing from $1.30 to $0.87 [11] Business Line Data and Key Metrics Changes - Ethanol pricing improved by 27%, dried distilled grain by 5%, and corn oil pricing by 91% year-over-year, while corn costs increased by 27% and natural gas prices by 86% [7] - SG&A expenses decreased from $9.9 million to $5.2 million, primarily due to reduced outgoing freight costs [8] Market Data and Key Metrics Changes - The operating environment remains challenging due to increased ethanol production, logistics issues, and rising corn and natural gas prices affecting the crush margin [17] - Corn prices have been volatile, trading around $7.60, with natural gas at $9.20 and ethanol at $2.75 [39] Company Strategy and Development Direction - The company is focusing on carbon capture projects and evaluating potential acquisitions of ethanol plants that utilize similar technology [15] - A significant government payment related to COVID relief is expected to support operations, alongside ongoing evaluations of projects aimed at increasing production efficiency and reducing water consumption [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in the operating environment but acknowledged ongoing challenges, particularly from inflationary pressures and commodity pricing due to geopolitical factors [17] - The company anticipates a profitable second quarter and is actively working on carbon sequestration projects, with plans to file for a Class 6 permit by mid-2022 [20][21] Other Important Information - The company has $234 million in consolidated cash, which may be used for stock buybacks if market conditions allow [14] - The carbon sequestration project is in preliminary stages, with extensive data collection and analysis ongoing [24] Q&A Session Summary Question: Inquiry about carbon capture strategy - Management emphasized the importance of having the capacity for carbon capture and is exploring opportunities in various carbon-heavy industries [34][36] Question: Demand for corn oil - There has been a significant increase in demand for corn oil, driven by rising prices and market dynamics [38] Question: Impact of the war on the ethanol market - The war has affected corn prices due to reduced exports from Ukraine, leading to increased costs and market pressures [42][43] Question: EPA's higher blending levels - Management expressed skepticism about the impact of higher blending levels, stating it would have minimal effect unless made permanent [44][45] Question: Status of exports to China - Exports to China remain low, with calls for tariff reductions to facilitate trade [46][47]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF Securities registered pursuant to Section 12(b) of the Act: | | | Name of each exchange | | --- | --- | --- | | Title of each class | Trading Symbol(s) | on which registered | | Common Stock, $.01 par value | REX | New York Stock Exchange | Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑ Indicate ...

REX American Resources Corporation (NYSE:REX) Q4 2021 Earnings Conference Call March 23, 2022 11:00 AM ET Company Participants Douglas Bruggeman - Chief Financial Officer Stuart Rose - Executive Chairman of the Board Zafar Rizvi - Chief Executive Officer Conference Call Participants Bertrand Donnes - Truist Securities Chris Sakai - Singular Research Jarrod Edelen - South Dakota Investment Council Operator Greetings, and welcome to the REX American Resources Fiscal 2021 Fourth Quarter Conference Call. During ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated condensed financial statements, including Balance Sheets, Statements of Operations, Equity, and Cash Flows, with detailed notes on accounting policies, revenue, leases, and related-party transactions [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The balance sheet shows an increase in total assets and equity from January 31, 2021, to October 31, 2021, driven primarily by higher cash and cash equivalents and accounts receivable, while liabilities also increased Consolidated Condensed Balance Sheets (Amounts in Thousands) | (In Thousands) | October 31, 2021 | January 31, 2021 | Change (Oct 2021 vs Jan 2021) | % Change | | :-------------------------------- | :--------------- | :--------------- | :----------------------------- | :------- | | **Assets:** | | | | | | Cash and cash equivalents | $197,395 | $144,501 | $52,894 | 36.6% | | Accounts receivable | $40,026 | $19,713 | $20,313 | 103.0% | | Inventory | $29,753 | $37,426 | $(7,673) | -20.5% | | Total current assets | $307,242 | $258,750 | $48,492 | 18.7% | | Total assets | $524,402 | $479,345 | $45,057 | 9.4% | | **Liabilities:** | | | | | | Accounts payable, trade | $27,133 | $16,573 | $10,560 | 63.7% | | Accrued expenses and other current liabilities | $14,121 | $8,754 | $5,367 | 61.3% | | Total current liabilities | $46,535 | $30,737 | $15,798 | 51.4% | | Total liabilities | $59,699 | $42,162 | $17,537 | 41.6% | | **Equity:** | | | | | | Total REX shareholders' equity | $409,323 | $384,783 | $24,540 | 6.4% | | Noncontrolling interests | $55,380 | $52,400 | $2,980 | 5.7% | | Total equity | $464,703 | $437,183 | $27,520 | 6.3% | [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The company reported significant improvements in net sales, gross profit, and net income for both the three and nine months ended October 31, 2021, compared to the prior year, largely driven by increased commodity prices and production volumes Consolidated Condensed Statements of Operations (Amounts in Thousands, Except Per Share Amounts) | (In Thousands, Except Per Share Amounts) | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | 3M Change | 3M % Change | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2120 | 9M Change | 9M % Change | | :------------------------------------------------ | :------------------------------ | :------------------------------ | :-------- | :---------- | :----------------------------- | :----------------------------- | :-------- | :---------- | | Net sales and revenue | $203,066 | $124,217 | $78,849 | 63.5% | $562,786 | $246,694 | $316,092 | 128.1% | | Gross profit | $25,152 | $18,929 | $6,223 | 32.9% | $58,783 | $11,259 | $47,524 | 422.1% | | Income (loss) before income taxes | $19,226 | $16,349 | $2,877 | 17.6% | $39,219 | $(577) | $39,796 | -6897.1% | | Net income (loss) attributable to REX common shareholders (continuing operations) | $13,326 | $9,036 | $4,290 | 47.5% | $26,305 | $(1,464) | $27,769 | -1896.8% | | Net income (loss) attributable to REX common shareholders (discontinued operations) | $1,952 | $(195) | $2,147 | -1101.0% | $4,633 | $922 | $3,711 | 402.5% | | Net income (loss) attributable to REX common shareholders | $15,278 | $8,841 | $6,437 | 72.8% | $30,938 | $(542) | $31,480 | -5808.1% | | Basic and diluted net income (loss) per share from continuing operations | $2.23 | $1.47 | $0.76 | 51.7% | $4.39 | $(0.24) | $4.63 | -1929.2% | | Basic and diluted net income (loss) per share from discontinued operations | $0.33 | $(0.03) | $0.36 | -1200.0% | $0.77 | $0.15 | $0.62 | 413.3% | | Basic and diluted net income (loss) per share | $2.56 | $1.44 | $1.12 | 77.8% | $5.16 | $(0.09) | $5.25 | -5833.3% | [Consolidated Condensed Statements of Equity](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Equity) Total equity increased from **$437,183 thousand** at January 31, 2021, to **$464,703 thousand** at October 31, 2021, primarily due to net income and capital contributions, partially offset by treasury stock acquisitions and noncontrolling interest distributions Consolidated Condensed Statements of Equity (Amounts in Thousands) | (In Thousands) | Balance at Jan 31, 2021 | Net Income | Treasury Stock Acquired | Noncontrolling Interests Distribution and Other | Capital Contributions | Issuance of Equity Awards and Stock Based Compensation Expense | Balance at Oct 31, 2021 | | :-------------------------------- | :---------------------- | :--------- | :---------------------- | :-------------------------------------------- | :-------------------- | :---------------------------------------------------------- | :---------------------- | | REX Shareholders' Equity: | | | | | | | | | Common Stock | $299 | - | - | - | - | - | $299 | | Paid-in Capital | $149,110 | - | - | - | - | $189 | $149,299 | | Retained Earnings | $589,986 | $30,938 | - | - | - | - | $620,924 | | Treasury Stock | $(354,612) | - | $(6,627) | - | - | $40 | $(361,199) | | Total REX Shareholders' Equity | $384,783 | $30,938 | $(6,627) | - | - | $229 | $409,323 | | Noncontrolling Interests | $52,400 | $4,215 | - | $(1,515) | $280 | - | $55,380 | | Total Equity | $437,183 | $35,153 | $(6,627) | $(1,515) | $280 | $229 | $464,703 | [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$50,431 thousand** for the nine months ended October 31, 2021, from **$21,499 thousand** in the prior year, primarily due to higher net income from continuing operations, with investing activities providing cash and financing activities using cash mainly for treasury stock acquisitions Consolidated Condensed Statements of Cash Flows (Amounts in Thousands) | (In Thousands) | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | Change | % Change | | :------------------------------------------ | :----------------------------- | :----------------------------- | :----- | :------- | | Net cash provided by operating activities | $50,431 | $21,499 | $28,932 | 134.6% | | Net cash provided by (used in) investing activities | $10,405 | $(10,027) | $20,432 | -203.8% | | Net cash used in financing activities | $(7,862) | $(18,284) | $10,422 | -57.0% | | Net increase (decrease) in cash, cash equivalents and restricted cash | $52,974 | $(6,812) | $59,786 | -877.6% | | Cash, cash equivalents and restricted cash, end of period | $199,132 | $173,959 | $25,173 | 14.5% | [Notes to Consolidated Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) The notes provide essential context to the financial statements, detailing the company's accounting practices, significant events like the reclassification of the refined coal business to discontinued operations, and specific breakdowns of financial statement line items, including revenue, leases, fair value measurements, and related-party transactions [Note 1. Consolidated Condensed Financial Statements](index=9&type=section&id=Note%201.%20Consolidated%20Condensed%20Financial%20Statements) This note clarifies the company's identity, the unaudited nature of the financial statements, the basis of consolidation, and a significant change in segment reporting due to the cessation and reclassification of the refined coal business to discontinued operations * The refined coal business ceased operations on November 18, 2021, and its results are recognized in discontinued operations starting in the third quarter of fiscal year 2021. Prior period amounts have been reclassified accordingly[19](index=19&type=chunk) * The Company now operates with one reportable segment: ethanol and by-products, which includes equity investments in three ethanol LLCs (two majority-owned)[20](index=20&type=chunk) [Note 2. Accounting Policies](index=9&type=section&id=Note%202.%20Accounting%20Policies) This note outlines the company's key accounting policies, including revenue recognition, cost of sales, SG&A, financial instruments (derivatives), income taxes, inventories, property and equipment, and investments, highlighting the shift to an annual effective tax rate method for continuing operations and the reclassification of the refined coal segment * The Company uses derivative financial instruments (exchange-traded futures contracts) to manage commodity price risk, primarily related to corn, and changes in fair value are recognized in current period earnings as hedge accounting is not applied[28](index=28&type=chunk)[29](index=29&type=chunk) * Beginning in the three and nine months ended October 31, 2021, the Company returned to using the annual effective tax rate method for continuing operations, following the cessation and reclassification of the refined coal business (which previously caused significant fluctuations in the effective tax rate) to discontinued operations[30](index=30&type=chunk) Inventory Components (Amounts in Thousands) | Component | October 31, 2021 | January 31, 2021 | | :------------------------ | :--------------- | :--------------- | | Ethanol and other finished goods | $7,135 | $18,346 | | Work in process | $5,097 | $4,374 | | Grain and other raw materials | $17,521 | $14,706 | | **Total** | **$29,753** | **$37,426** | * The refined coal business ceased operations on November 18, 2021, as tax credits could no longer be earned, and its results are recognized in discontinued operations starting in the third quarter of fiscal year 2021[42](index=42&type=chunk) [Note 3. Net Sales and Revenue](index=13&type=section&id=Note%203.%20Net%20Sales%20and%20Revenue) This note details the company's revenue recognition policies and provides a disaggregated view of net sales and revenue by product for both continuing and discontinued operations, highlighting significant increases in ethanol and by-product sales Disaggregated Revenue by Product (Amounts in Thousands) | Product | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :-------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | **Continuing Operations:** | | | | | | Ethanol | $161,598 | $98,850 | $441,657 | $191,971 | | Dried distillers grains | $28,717 | $20,916 | $91,408 | $45,314 | | Non-food grade corn oil | $11,958 | $4,661 | $27,364 | $9,162 | | Modified distillers grains | $2,930 | $562 | $7,157 | $1,228 | | Derivative financial instruments losses | $(2,144) | $(777) | $(4,907) | $(1,075) | | Other | $7 | $5 | $107 | $94 | | **Total Continuing Operations** | **$203,066** | **$124,217** | **$562,786** | **$246,694** | | **Discontinued Operations:** | | | | | | Refined coal | $151 | $34 | $377 | $134 | [Note 4. Leases](index=14&type=section&id=Note%204.%20Leases) The company's lease agreements, primarily for railcars, are accounted for as operating leases, with total lease expense increasing for both the three and nine months ended October 31, 2021, compared to the prior year, and future minimum rentals detailed Total Lease Expense (Amounts in Thousands) | Type of Expense | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :-------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Operating lease expense | $1,690 | $1,545 | $4,805 | $4,779 | | Variable lease expense | $1,090 | $79 | $1,654 | $417 | | **Total lease expense** | **$2,780** | **$1,624** | **$6,459** | **$5,196** | Future Minimum Rentals on Leases (Amounts in Thousands) | Years Ended January 31, | Minimum Rentals (Oct 31, 2021) | Minimum Rentals (Jan 31, 2021) | | :---------------------- | :----------------------------- | :----------------------------- | | Remainder of 2022 | $1,506 | $5,397 | | 2023 | $4,836 | $3,690 | | 2024 | $3,670 | $2,524 | | 2025 | $2,221 | $1,648 | | 2026 | $49 | $49 | | **Total** | **$12,282** | **$13,308** | | Less: present value discount | $730 | $994 | | **Operating lease liabilities** | **$11,552** | **$12,314** | [Note 5. Fair Value](index=15&type=section&id=Note%205.%20Fair%20Value) This note describes the company's fair value measurements for financial instruments, categorizing them into Level 1, 2, and 3 inputs, and provides a summary of financial assets and liabilities measured at fair value, including an investment in cooperative and derivative contracts Financial Assets and Liabilities Measured at Fair Value (Amounts in Thousands) | Instrument | Level 1 (Oct 31, 2021) | Level 2 (Oct 31, 2021) | Level 3 (Oct 31, 2021) | Fair Value (Oct 31, 2021) | Level 1 (Jan 31, 2021) | Level 2 (Jan 31, 2021) | Level 3 (Jan 31, 2021) | Fair Value (Jan 31, 2021) | | :-------------------------- | :--------------------- | :--------------------- | :--------------------- | :------------------------ | :--------------------- | :--------------------- | :--------------------- | :------------------------ | | **Assets:** | | | | | | | | | | Investment in cooperative | $- | $- | $354 | $354 | $- | $- | $354 | $354 | | Forward purchase contracts | $- | $430 | $- | $430 | $- | $2,144 | $- | $2,144 | | **Total Assets** | **$-** | **$430** | **$354** | **$784** | **$-** | **$2,144** | **$354** | **$2,498** | | **Liabilities:** | | | | | | | | | | Forward purchase contracts | $- | $687 | $- | $687 | $- | $- | $- | $- | | Commodity futures liability | $- | $3,822 | $- | $3,822 | $- | $1,794 | $- | $1,794 | | **Total Liabilities** | **$-** | **$4,509** | **$-** | **$4,509** | **$-** | **$1,794** | **$-** | **$1,794** | [Note 6. Property and Equipment](index=17&type=section&id=Note%206.%20Property%20and%20Equipment) This note provides a breakdown of property and equipment, net of accumulated depreciation, showing a decrease in total net property and equipment from January 31, 2021, to October 31, 2021 Components of Property and Equipment (Amounts in Thousands) | Component | October 31, 2021 | January 31, 2021 | | :-------------------------- | :--------------- | :--------------- | | Land and improvements | $27,329 | $27,329 | | Buildings and improvements | $23,613 | $23,613 | | Machinery, equipment and fixtures | $294,906 | $293,762 | | Construction in progress | $2,006 | $215 | | **Total Cost** | **$347,854** | **$344,919** | | Less: accumulated depreciation | $(206,649) | $(194,058) | | **Total Net Property and Equipment** | **$141,205** | **$150,861** | [Note 7. Accrued Expenses and Other Current Liabilities](index=18&type=section&id=Note%207.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) This note details the components of accrued expenses and other current liabilities, which significantly increased from January 31, 2021, to October 31, 2021, primarily due to higher accrued payroll, utility charges, commodity futures, and forward purchase contracts Components of Accrued Expenses and Other Current Liabilities (Amounts in Thousands) | Component | October 31, 2021 | January 31, 2021 | | :---------------------------------- | :--------------- | :--------------- | | Accrued payroll and related items | $3,727 | $690 | | Accrued utility charges | $3,473 | $2,515 | | Accrued transportation related items | $578 | $1,560 | | Accrued real estate taxes | $1,419 | $1,778 | | Commodity futures | $3,822 | $1,794 | | Forward purchase contracts | $687 | $- | | Accrued income taxes | $62 | $55 | | Other | $353 | $362 | | **Total** | **$14,121** | **$8,754** | [Note 8. Derivative Financial Instruments](index=18&type=section&id=Note%208.%20Derivative%20Financial%20Instruments) The company uses derivative financial instruments to manage commodity price risks, recognizing changes in fair value in current earnings, with this note providing the fair values of these instruments and the losses recognized in net sales and cost of sales Fair Values of Derivative Financial Instruments (Amounts in Thousands) | Instrument | Asset Derivatives (Oct 31, 2021) | Asset Derivatives (Jan 31, 2021) | Liability Derivatives (Oct 31, 2021) | Liability Derivatives (Jan 31, 2021) | | :-------------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | :--------------------------------- | | Commodity futures | $- | $- | $3,822 | $1,794 | | Forward purchase contracts | $430 | $2,144 | $687 | $- | | **Total** | **$430** | **$2,144** | **$4,509** | **$1,794** | Losses on Derivative Financial Instruments (Amounts in Thousands) | Impact Area | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Included in net sales and revenue | $(2,144) | $(777) | $(4,907) | $(1,076) | | Included in cost of sales (gains) | $5,474 | $(26) | $(2,562) | $(1,785) | [Note 9. Investments](index=20&type=section&id=Note%209.%20Investments) This note provides details on the company's equity method investment in Big River Resources, LLC, and its short-term investments in certificates of deposit, including their carrying amounts and summarized financial information for Big River Equity Method Investment (Amounts in Thousands) | Entity | Ownership Percentage | Carrying Amount (Oct 31, 2021) | Carrying Amount (Jan 31, 2021) | | :------- | :------------------- | :----------------------------- | :----------------------------- | | Big River | 10.3% | $30,715 | $29,456 | Summarized Financial Information for Big River (Amounts in Thousands) | Metric | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :-------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net sales and revenue | $347,059 | $209,397 | $966,858 | $537,155 | | Gross profit | $7,092 | $15,419 | $27,993 | $13,041 | | Income from continuing operations | $3,390 | $11,167 | $26,802 | $1,627 | | Net income | $3,390 | $11,167 | $26,802 | $1,627 | Short-term Investments (Certificates of Deposit) (Amounts in Thousands) | Date | Amortized Cost/Carrying Value | Contractual Maturity | | :--------------- | :---------------------------- | :------------------- | | October 31, 2021 | $21,620 | Less than one year | | January 31, 2021 | $36,194 | Less than one year | [Note 10. Employee Benefits](index=20&type=section&id=Note%2010.%20Employee%20Benefits) This note outlines the REX 2015 Incentive Plan, under which restricted stock awards are granted to eligible employees and directors, detailing the activity of non-vested restricted stock and the associated unrecognized compensation cost Non-Vested Restricted Stock Award Activity (Nine Months Ended October 31) | Metric | 2021 | 2020 | | :-------------------------- | :----- | :----- | | Non-Vested at January 31 | 19,705 | 28,576 | | Granted | 2,803 | 6,158 | | Forfeited | - | - | | Vested | 12,447 | 15,029 | | Non-Vested at October 31 | 10,061 | 19,705 | | Weighted Average Grant Date Fair Value (000's) at Oct 31 | $773 | $1,398 | | Weighted Average Remaining Vesting Term (in years) at Oct 31 | 2 | 2 | * Unrecognized compensation cost related to nonvested restricted stock was approximately **$126 thousand** at October 31, 2021, down from **$272 thousand** at January 31, 2021[75](index=75&type=chunk) [Note 11. Income Taxes](index=22&type=section&id=Note%2011.%20Income%20Taxes) This note explains the company's income tax provision and benefit for continuing and discontinued operations, the change in tax accounting method due to the refined coal business cessation, and the status of unrecognized tax benefits * The Company shifted from a discrete effective tax rate method to an annual effective tax rate method for continuing operations beginning in the three and nine months ended October 31, 2021, following the reclassification of the refined coal segment to discontinued operations[80](index=80&type=chunk) Income Tax Provision (Benefit) from Continuing Operations (Amounts in Thousands) | Period | 2021 | 2020 | | :------------------------------ | :----- | :----- | | Three Months Ended October 31 | $(4,338) | $(5,037) | | Nine Months Ended October 31 | $(8,329) | $444 | Income Tax Benefit from Discontinued Operations (Amounts in Thousands) | Period | 2021 | 2020 | | :------------------------------ | :----- | :----- | | Three Months Ended October 31 | $4,927 | $985 | | Nine Months Ended October 31 | $12,566 | $4,863 | Unrecognized Tax Benefits (Amounts in Thousands) | Period | 2021 | 2020 | | :-------------------------------- | :----- | :----- | | Unrecognized tax benefits, beginning of period | $8,400 | $7,370 | | Changes for prior years' tax positions | $15 | $(57) | | Changes for current year tax positions | $413 | $- | | **Unrecognized tax benefits, end of period** | **$8,828** | **$7,313** | [Note 12. Discontinued Operations](index=23&type=section&id=Note%2012.%20Discontinued%20Operations) This note provides detailed financial information for the refined coal business, which was reclassified as discontinued operations due to the cessation of its activities on November 18, 2021, as tax credits could no longer be earned * The refined coal business ceased operations on November 18, 2021, because federal production tax credits could no longer be earned, leading to its reclassification as discontinued operations starting in the third quarter of fiscal year 2021[87](index=87&type=chunk) Discontinued Operations Financial Items (Amounts in Thousands) | Metric | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net sales and revenue | $151 | $34 | $377 | $134 | | Cost of Sales | $3,033 | $1,284 | $8,015 | $4,375 | | Gross loss | $(2,882) | $(1,250) | $(7,638) | $(4,241) | | Income before income taxes | $(3,112) | $(1,238) | $(8,303) | $(4,134) | | Benefit for income taxes | $4,927 | $985 | $12,566 | $4,863 | | Net income from discontinued operations, net of tax | $1,815 | $(253) | $4,263 | $729 | | Net income (loss) attributable to REX common shareholders | $1,952 | $(195) | $4,633 | $922 | Discontinued Operations Assets and Liabilities (Amounts in Thousands) | Item | October 31, 2021 | January 31, 2021 | | :---------------------------------- | :--------------- | :--------------- | | **Assets:** | | | | Total current assets | $392 | $488 | | Property and equipment, net | $233 | $2,325 | | **Total Assets** | **$625** | **$2,813** | | **Liabilities:** | | | | Total current liabilities | $282 | $535 | | **Total Liabilities** | **$282** | **$535** | | **Net assets included in discontinued operations** | **$343** | **$2,278** | [Note 13. Commitments and Contingencies](index=24&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) This note addresses legal proceedings, stating no material adverse effects are expected, and details significant forward purchase contracts for raw materials and sales commitments for products at the ethanol plants, along with fees related to the refined coal entity * The Company is not party to any legal proceedings expected to have a material adverse effect on its financial condition, results of operations, or cash flows[89](index=89&type=chunk) * One Earth and NuGen have combined forward purchase contracts for approximately **12.4 million bushels of corn** and **2.1 million MmBtu of natural gas**[90](index=90&type=chunk) * One Earth and NuGen have combined sales commitments for approximately **50.3 million gallons of ethanol**, **113,000 tons of distillers grains**, and **13.5 million pounds of non-food grade corn oil**[90](index=90&type=chunk) [Note 14. Related-Party Transactions](index=25&type=section&id=Note%2014.%20Related-Party%20Transactions) This note discloses related-party transactions, including purchases of corn and other supplies from minority equity investors and board members of subsidiaries, and commission expenses related to the refined coal entity Purchases from Related Parties (Amounts in Millions) | Period | 2021 | 2020 | | :------------------------------ | :----- | :----- | | Three Months Ended October 31 | $22.9 | $16.9 | | Nine Months Ended October 31 | $60.3 | $34.0 | Amounts Payable to Related Parties (Amounts in Millions) | Date | Amount | | :--------------- | :----- | | October 31, 2021 | $1.7 | | January 31, 2021 | $0.7 | Commission Expense (Refined Coal) (Amounts in Millions) | Period | 2021 | 2020 | | :------------------------------ | :----- | :----- | | Three Months Ended October 31 | $0.04 | $(0.015) | | Nine Months Ended October 31 | $0.2 | $(0.2) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and future outlook, covering the ethanol and by-products business, refined coal operations, the Future Energy joint venture, critical accounting policies, and a detailed comparison of operating results and liquidity [Ethanol and By-Products](index=26&type=section&id=Ethanol%20and%20By-Products) The company's ethanol operations are highly dependent on volatile commodity prices for corn, ethanol, distillers grains, non-food grade corn oil, and natural gas, with the 'crush spread' being a key profitability indicator and risk managed through forward contracts REX's Current Effective Ownership of Trailing 12 Months Ethanol Gallons Shipped (in Millions) | Entity | Trailing 12 Months Ethanol Gallons Shipped | REX's Current Effective Ownership Interest | REX's Current Effective Ownership of Trailing 12 Months Ethanol Gallons Shipped | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | :------------------------------------------------------------------------------ | | One Earth Energy, LLC | 137.9 M | 75.8% | 104.5 M | | NuGen Energy, LLC | 137.8 M | 99.7% | 137.4 M | | Big River Resources, LLC: | | | | | Big River Resources W Burlington, LLC | 110.3 M | 10.3% | 11.4 M | | Big River Resources Galva, LLC | 116.0 M | 10.3% | 11.9 M | | Big River United Energy, LLC | 125.3 M | 5.7% | 7.1 M | | Big River Resources Boyceville, LLC | 63.6 M | 10.3% | 6.6 M | | **Total** | **690.9 M** | | **278.9 M** | [Refined Coal](index=27&type=section&id=Refined%20Coal) The refined coal business ceased operations on November 18, 2021, as it was no longer able to earn federal production tax credits, which were essential for its profitability, with its income now presented within discontinued operations * The refined coal facility ceased operations on November 18, 2021, because federal production tax credits, which subsidized its revenues and made it profitable, could no longer be earned[99](index=99&type=chunk) [Future Energy](index=28&type=section&id=Future%20Energy) The company holds a **60% interest** in Future Energy, LLC, a joint venture focused on developing and commercializing eSteam technology for heavy oil recovery, with approximately **$2.5 million** funded to date, though commercial feasibility has not yet been proven * The Company owns **60%** of Future Energy, LLC, a joint venture with Hytken HPGP, LLC, to develop and commercially exploit eSteam technology for enhanced heavy oil recovery[102](index=102&type=chunk) * Approximately **$2.5 million** has been cumulatively paid and expensed to purchase the ownership interest and fund patent and other expenses, but the commercial feasibility of the technology has not yet been tested or proven[103](index=103&type=chunk) [Critical Accounting Policies and Estimates](index=28&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) No changes were made to the company's critical accounting policies during the three months ended October 31, 2021, as disclosed in its prior Annual Report on Form 10-K * No changes were made to the Company's critical accounting policies during the three months ended October 31, 2021[104](index=104&type=chunk) [Fiscal Year](index=28&type=section&id=Fiscal%20Year) The company's fiscal year ends on January 31 * The Company's fiscal year ends on January 31[105](index=105&type=chunk) [Results of Operations - Trends and Uncertainties](index=28&type=section&id=Results%20of%20Operations%20-%20Trends%20and%20Uncertainties) Operating results in the ethanol business have been impacted by weak margins, higher corn costs, and fluctuating demand, exacerbated by the COVID-19 pandemic and uncertainties surrounding the Renewable Fuel Standard II (RFS II) and small refiner waivers, while the refined coal business ceased operations due to expiring tax credits * Operating results in the ethanol and by-products business have been affected by a weak margin environment, including higher corn costs, lower local corn availability, lower ethanol demand, and EPA small refiner waivers[106](index=106&type=chunk) * The COVID-19 pandemic led to reduced demand for gasoline and ethanol, resulting in historically low ethanol pricing and the idling of NuGen and One Earth ethanol plants in March 2020, though production resumed later in 2020[107](index=107&type=chunk) * The CARES Act and large corn purchases by China have contributed to higher corn prices, and the Company experienced an increase in local basis price for corn[109](index=109&type=chunk) * Uncertainties surrounding the Renewable Fuel Standard II (RFS II) and the impact of small refiner waivers (SRWs) continue to affect the ethanol industry, with the EPA missing deadlines for 2021 and 2022 volume obligations[110](index=110&type=chunk)[112](index=112&type=chunk) * The refined coal business ceased operations on November 18, 2021, as tax credits could no longer be earned, and its operating results were previously affected by inconsistent utility plant demand[114](index=114&type=chunk) [Comparison of Three and Nine Months Ended October 31, 2021 and 2020](index=31&type=section&id=Comparison%20of%20Three%20and%20Nine%20Months%20Ended%20October%2031%2C%202021%20and%202020) The company experienced substantial growth in net sales and gross profit for both the three and nine months ended October 31, 2021, compared to 2020, driven by significantly higher production volumes and stronger commodity prices, particularly for ethanol and its by-products, despite increased costs for grain and natural gas Consolidated Results of Operations (Amounts in Thousands) | Metric | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :------------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net sales and revenue | $203,066 | $124,217 | $562,786 | $246,694 | | Cost of sales | $177,914 | $105,288 | $504,003 | $235,435 | | Gross profit | $25,152 | $18,929 | $58,783 | $11,259 | | Income (loss) before income taxes | $19,226 | $16,349 | $39,219 | $(577) | | Net income (loss) attributable to REX common shareholders (continuing operations) | $13,326 | $9,036 | $26,305 | $(1,464) | | Net income (loss) attributable to REX common shareholders (discontinued operations) | $1,952 | $(195) | $4,633 | $922 | Net Sales and Revenue by Product Group (Amounts in Thousands) | Product | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :-------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Ethanol | $161,598 | $98,850 | $441,657 | $191,971 | | Dried distillers grains | $28,717 | $20,916 | $91,408 | $45,314 | | Non-food grade corn oil | $11,958 | $4,661 | $27,364 | $9,162 | | Modified distillers grains | $2,930 | $562 | $7,157 | $1,228 | | Derivative financial instruments losses | $(2,144) | $(777) | $(4,907) | $(1,075) | | Refined coal (discontinued operations) | $151 | $34 | $377 | $134 | Selected Operating Data | Metric | Three Months Ended Oct 31, 2021 | Three Months Ended Oct 31, 2020 | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Average selling price per gallon of ethanol (net of hedging) | $2.31 | $1.31 | $2.12 | $1.28 | | Gallons of ethanol sold (in millions) | 69.0 | 74.6 | 207.9 | 149.4 | | Average selling price per ton of dried distillers grains | $184.85 | $129.38 | $200.02 | $136.49 | | Tons of dried distillers grains sold | 155,356 | 161,666 | 456,996 | 331,990 | | Average selling price per pound of non-food grade corn oil | $0.59 | $0.24 | $0.47 | $0.25 | | Pounds of non-food grade corn oil sold (in millions) | 20.2 | 19.0 | 57.9 | 37.2 | | Average selling price per ton of modified distillers grains | $92.10 | $56.68 | $83.97 | $52.44 | | Tons of modified distillers grains sold | 31,814 | 9,924 | 85,235 | 23,431 | | Average cost per bushel of grain | $6.45 | $3.28 | $6.05 | $3.57 | | Average cost of natural gas (per MmBtu) | $4.58 | $2.09 | $3.69 | $2.87 | * Net sales and revenue increased by approximately **63%** for the third quarter and **128%** for the first nine months of fiscal year 2021, primarily due to significantly higher production and sales volumes and stronger commodity pricing compared to the prior year, which was impacted by COVID-19[116](index=116&type=chunk) * Ethanol sales increased due to a **76% increase** in average selling price per gallon (Q3) and a **66% increase** (9M), coupled with a **39% increase** in gallons sold (9M), despite an **8% decrease** in gallons sold (Q3)[117](index=117&type=chunk) * Gross profit increased by approximately **$6,200 thousand** for Q3 and **$47,500 thousand** for 9M, driven by increased commodity prices and higher production volumes, although the crush spread decreased from **$0.19/gallon** (Q3 2020) to **$0.11/gallon** (Q3 2021) due to a **97% increase** in corn cost[123](index=123&type=chunk)[126](index=126&type=chunk) * Selling, general and administrative (SG&A) expenses increased significantly due to higher shipping costs and increased incentive compensation associated with improved profitability[129](index=129&type=chunk) * Net income attributable to REX common shareholders from continuing operations increased to **$13,300 thousand** (Q3 2021) from **$9,000 thousand** (Q3 2020), and to **$26,300 thousand** (9M 2021) from a net loss of **$1,500 thousand** (9M 2020)[138](index=138&type=chunk) * Net income attributable to REX common shareholders from discontinued operations (refined coal) was **$2,000 thousand** (Q3 2021) compared to a net loss of **$200 thousand** (Q3 2020), and **$4,600 thousand** (9M 2021) compared to **$900 thousand** (9M 2020), primarily due to production tax credits[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly improved, with net cash provided by operating activities more than doubling for the nine months ended October 31, 2021, with investing activities providing cash and financing activities using cash primarily for share repurchases, and the company exploring various uses for its excess cash, including a carbon sequestration project Net Cash Flows (Amounts in Thousands) | Activity | Nine Months Ended Oct 31, 2021 | Nine Months Ended Oct 31, 2020 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $50,431 | $21,499 | | Net cash provided by (used in) investing activities | $10,405 | $(10,027) | | Net cash used in financing activities | $(7,862) | $(18,284) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $52,974 | $(6,812) | * Working capital increased to approximately **$260,700 thousand** at October 31, 2021, from **$228,000 thousand** at January 31, 2021, with a current ratio of **6.6 to 1**[144](index=144&type=chunk) * Capital expenditures for the first nine months of fiscal year 2021 were approximately **$4,200 thousand**, with an expectation of **$3,000 thousand to $5,000 thousand** for the remainder of fiscal year 2021[145](index=145&type=chunk) * The company repurchased approximately **84,099 shares** of common stock for **$6,600 thousand** during the first nine months of fiscal year 2021 and authorized an additional **500,000 share** buyback[148](index=148&type=chunk)[150](index=150&type=chunk) * The company is investigating a carbon sequestration project near the One Earth ethanol plant, with drilling for a test well commenced and further testing and research needed to determine feasibility[151](index=151&type=chunk) [Forward-Looking Statements](index=38&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement regarding forward-looking statements, highlighting various risks and uncertainties that could cause actual results to differ materially from projections, including impacts from pandemics, legislative changes, and commodity price volatility * Forward-looking statements are subject to risks and uncertainties, including the effects of pandemics (like COVID-19), legislative and regulatory changes, price volatility and availability of commodities (corn, ethanol, natural gas), logistical delays, operational efficiency of plants, and global economic conditions[152](index=152&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market fluctuations in commodity prices and manages this risk using forward purchase and sale contracts and exchange-traded commodity futures, with a **10% adverse change** in commodity prices potentially significantly decreasing pre-tax income Estimated Decrease in Pre-tax Income from a 10% Adverse Change in Commodity Price (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 | 280,000 | Gallons | $69,669 | | Corn | 100,000 | Bushels | $48,528 | | Distillers Grains | 725 | Tons | $10,509 | | Non-food grade Corn Oil | 73,700 | Pounds | $3,595 | | Natural Gas | 7,400 | MmBtu | $2,733 | [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of October 31, 2021, with no material changes to internal control over financial reporting during the last fiscal quarter * The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of October 31, 2021[156](index=156&type=chunk) * There were no changes in the Company's internal control over financial reporting during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[157](index=157&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings that are expected to have a material adverse effect on its financial condition, results of operations, or cash flows * The Company is not party to any legal proceedings that are believed to have a material adverse effect on its financial condition, results of operations, or cash flows[159](index=159&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously discussed in the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2021 * There have been no material changes to the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended January 31, 2021[160](index=160&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the company for the reporting period * This item is not applicable[161](index=161&type=chunk) [Item 3. Defaults upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This item is not applicable to the company for the reporting period * This item is not applicable[161](index=161&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period * This item is not applicable[161](index=161&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) There is no other information to report under this item * None[161](index=161&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including certifications and the iXBRL formatted financial statements * Exhibits filed include Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and iXBRL formatted financial statements[161](index=161&type=chunk)

Financial Data and Key Metrics Changes - Sales for the quarter increased by 63% due to higher pricing for ethanol, distillers grains, and corn oil [5] - Gross profit from continuing operations was $25.2 million compared to $18.9 million in the prior year [5] - Net income attributable to REX shareholders from continuing operations was $13.3 million, a 47% improvement from $9 million in the prior year [7] - Net income per share from continuing operations was $2.23, up from $1.47 in the prior year [8] - Cash balance rose to $219 million from $108.7 million at year-end [11] Business Line Data and Key Metrics Changes - The company has discontinued refined coal operations, now focusing solely on ethanol and by-products [4] - Ethanol sales volume decreased to 69 million gallons from 74.6 million gallons due to limited corn supply at the beginning of the quarter [5] - Ethanol pricing improved by 76%, dried distillers grains by 43%, and corn oil pricing by 146% compared to the prior year [5] Market Data and Key Metrics Changes - The operating environment improved in 2021, with favorable ethanol and corn oil prices contributing to increased crush margins [13] - Logistic problems are affecting production and net income, with challenges in rail and container availability [13] Company Strategy and Development Direction - The company is focusing on carbon sequestration projects and exploring alternative energy opportunities [11][14] - Plans to develop a hub for carbon sequestration, with initial project costs estimated between $35 million to $50 million [28] - The company is open to considering other alternative energy projects and carbon capture opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current quarter, indicating a significantly better performance due to rising crush spreads [10][18] - The company is cautious about predicting future commodity market conditions due to various influencing factors [25] - Management highlighted the importance of logistics in maintaining ethanol prices and production levels [24] Other Important Information - The company reported a tax provision of $4.3 million for the third quarter, down from $5 million in the prior year [7] - The carbon sequestration project is in preliminary stages, with ongoing testing and modeling to predict CO2 behavior [15][16] Q&A Session Summary Question: Thoughts on the significant move higher in ethanol prices - Management noted logistics issues as a key factor driving ethanol prices higher, with demand outpacing supply due to transportation challenges [24] Question: Larger scale investment in carbon capture - Estimated costs for carbon capture projects range from $35 million to $50 million, with potential for further investment based on initial project success [28] Question: M&A and alternative energy projects - Management discussed potential opportunities in carbon capture and other alternative energy projects, emphasizing the need for a place to store captured carbon [34] Question: Legal status of RINs for 2021 - Management indicated uncertainty regarding EPA's actions but noted that prices for RINs have been declining recently [36]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the Company's unaudited consolidated condensed financial statements, including Balance Sheets, Statements of Operations, Equity, and Cash Flows, with notes on accounting policies, fair values, and segment performance for the periods ended July 31, 2021, and January 31, 2021 [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Consolidated Condensed Balance Sheets (In Thousands) | Metric | July 31, 2021 | January 31, 2021 | | :-------------------------- | :-------------- | :--------------- | | Cash and cash equivalents | $154,312 | $144,501 | | Short-term investments | $33,282 | $36,194 | | Restricted cash | $6,758 | $1,657 | | Accounts receivable | $29,521 | $19,713 | | Inventory | $41,759 | $37,880 | | Total current assets | $284,699 | $258,750 | | Property and equipment, net | $145,078 | $153,186 | | Total assets | $505,507 | $479,345 | | Accounts payable, trade | $22,041 | $16,907 | | Total current liabilities | $38,695 | $30,737 | | Total long-term liabilities | $13,515 | $11,425 | | Total REX shareholders' equity | $399,272 | $384,783 | | Noncontrolling interests | $54,025 | $52,400 | | Total equity | $453,297 | $437,183 | | Total liabilities and equity | $505,507 | $479,345 | - Total assets increased by **$26,162k (5.46%)** from January 31, 2021, to July 31, 2021[11](index=11&type=chunk) - Total equity increased by **$16,114k (3.68%)** from January 31, 2021, to July 31, 2021[11](index=11&type=chunk) [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Consolidated Condensed Statements of Operations (In Thousands, Except Per Share Amounts) | Metric | Three Months Ended July 31, 2021 | Three Months Ended July 31, 2020 | Six Months Ended July 31, 2021 | Six Months Ended July 31, 2020 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales and revenue | $195,843 | $39,327 | $359,947 | $122,577 | | Gross profit (loss) | $11,074 | $(1,331) | $28,876 | $(10,661) | | Income (loss) before income taxes | $6,375 | $(6,079) | $14,802 | $(19,822) | | Net income (loss) | $10,052 | $(2,033) | $18,450 | $(10,463) | | Net income (loss) attributable to REX common shareholders | $7,876 | $(1,748) | $15,660 | $(9,383) | | Basic and diluted net income (loss) per share | $1.31 | $(0.28) | $2.61 | $(1.50) | - Net sales and revenue for the three months ended July 31, 2021, increased by **398%** compared to the same period in 2020[12](index=12&type=chunk) - Net income attributable to REX common shareholders for the six months ended July 31, 2021, was **$15,660k**, a significant improvement from a loss of **$(9,383)k** in the prior year[12](index=12&type=chunk) [Consolidated Condensed Statements of Equity](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Equity) Consolidated Condensed Statements of Equity (In Thousands) | Metric | Balance at January 31, 2021 | Balance at July 31, 2021 | | :-------------------------- | :-------------------------- | :----------------------- | | Common Shares Issued (Shares) | 29,853 | 29,853 | | Common Shares Issued (Amount) | $299 | $299 | | Treasury Shares | 23,861 | 23,866 | | Treasury Stock (Amount) | $(354,612) | $(355,936) | | Paid-in Capital | $149,110 | $149,263 | | Retained Earnings | $589,986 | $605,646 | | Noncontrolling Interests | $52,400 | $54,025 | | **Total Equity** | **$437,183** | **$453,297** | - Retained earnings increased by **$15,660k** from January 31, 2021, to July 31, 2021, reflecting net income[14](index=14&type=chunk) - Treasury stock increased by **$(1,324)k**, indicating share repurchases during the period[14](index=14&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Consolidated Condensed Statements of Cash Flows (In Thousands) | Metric | Six Months Ended July 31, 2021 | Six Months Ended July 31, 2020 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $17,157 | $(9,034) | | Net cash provided by (used in) investing activities | $276 | $(12,355) | | Net cash used in financing activities | $(2,521) | $(5,724) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $14,912 | $(27,113) | | Cash, cash equivalents and restricted cash, end of period | $161,070 | $153,658 | - Operating activities generated **$17,157k** in cash for the first six months of 2021, a significant improvement from cash used of **$(9,034)k** in the prior year[18](index=18&type=chunk) - Cash, cash equivalents and restricted cash increased by **$14,912k** during the first six months of 2021, ending at **$161,070k**[18](index=18&type=chunk) [Notes to Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) [Note 1. Consolidated Condensed Financial Statements](index=8&type=section&id=Note%201.%20Consolidated%20Condensed%20Financial%20Statements) - The Company (REX American Resources Corporation) consolidates its majority and wholly-owned subsidiaries, with intercompany balances and transactions eliminated[19](index=19&type=chunk)[21](index=21&type=chunk) - The Company has two reportable segments: ethanol and by-products (with equity investments in three ethanol LLCs, two majority-owned) and refined coal (with a majority equity interest in one refined coal LLC)[22](index=22&type=chunk) - Financial information for One Earth Energy, LLC is included on a delayed basis of one month due to its December 31 fiscal year end[21](index=21&type=chunk) [Note 2. Accounting Policies](index=8&type=section&id=Note%202.%20Accounting%20Policies) - Revenue from ethanol and by-products is recognized upon transfer of control (shipment/loading), while refined coal sales are recognized when title and control transfer, recorded net of coal cost[26](index=26&type=chunk) - The Company uses derivative financial instruments (exchange-traded futures) to manage commodity price risk (primarily corn) but does not use hedge accounting, recognizing fair value changes in current earnings[31](index=31&type=chunk) - Inventories are carried at the lower of cost or net realizable value (FIFO basis) and include direct production and certain overhead costs, with write-downs of approximately **$1.3 million** recorded at July 31, 2021[35](index=35&type=chunk) [Note 3. Net Sales and Revenue](index=12&type=section&id=Note%203.%20Net%20Sales%20and%20Revenue) - Revenue is measured as the consideration expected in exchange for goods, with sales, value-added, and other taxes excluded from net sales[45](index=45&type=chunk) - Payment terms for most sales range from 5 to 10 days after control transfer, and the Company does not record unearned revenue[46](index=46&type=chunk) [Note 4. Leases](index=12&type=section&id=Note%204.%20Leases) Total Lease Expense (In Thousands) | Metric | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Operating lease expense | $1,565 | $1,548 | $3,115 | $3,234 | | Variable lease expense | $520 | $207 | $564 | $338 | | **Total lease expense** | **$2,085** | **$1,755** | **$3,679** | **$3,572** | Operating Lease Liabilities (In Thousands) | Metric | July 31, 2021 | January 31, 2021 | | :------------------------ | :-------------- | :--------------- | | Total Minimum Rentals | $13,791 | $13,308 | | Less: present value discount | $877 | $994 | | **Operating lease liabilities** | **$12,914** | **$12,314** | - At July 31, 2021, the weighted average remaining lease term was **2.7 years**, and the weighted average discount rate was **4.88%** for the Company's operating leases, primarily for railcars[50](index=50&type=chunk) [Note 5. Fair Value](index=14&type=section&id=Note%205.%20Fair%20Value) Financial Assets and Liabilities Measured at Fair Value (In Thousands) at July 31, 2021 | Instrument | Level 1 | Level 2 | Level 3 | Fair Value | | :------------------------ | :------ | :------ | :------ | :--------- | | Investment in cooperative | $- | $- | $354 | $354 | | Commodity futures asset | $- | $784 | $- | $784 | | Forward purchase contracts | $- | $673 | $- | $673 | | **Total assets** | **$-** | **$1,457** | **$354** | **$1,811** | | Commodity futures liability | $- | $4,590 | $- | $4,590 | - The fair value of derivative assets and liabilities is determined using quantitative models with multiple market inputs, while the investment in cooperative is valued using a discounted cash flow analysis[55](index=55&type=chunk)[59](index=59&type=chunk) [Note 6. Property and Equipment](index=15&type=section&id=Note%206.%20Property%20and%20Equipment) Property and Equipment, Net (In Thousands) | Category | July 31, 2021 | January 31, 2021 | | :-------------------------- | :-------------- | :--------------- | | Land and improvements | $27,437 | $27,437 | | Buildings and improvements | $23,701 | $23,701 | | Machinery, equipment and fixtures | $306,514 | $305,640 | | Construction in progress | $1,173 | $215 | | Less: accumulated depreciation | $(213,747) | $(203,807) | | **Total** | **$145,078** | **$153,186** | - Total property and equipment, net, decreased by **$8,108k** from January 31, 2021, to July 31, 2021[61](index=61&type=chunk) - No impairment charges were identified or recorded during the first six months of fiscal year 2021, following a recoverability test in fiscal year 2020 due to COVID-19 impacts[38](index=38&type=chunk) [Note 7. Accrued Expenses and Other Current Liabilities](index=16&type=section&id=Note%207.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued Expenses and Other Current Liabilities (In Thousands) | Category | July 31, 2021 | January 31, 2021 | | :-------------------------------- | :-------------- | :--------------- | | Accrued payroll and related items | $1,882 | $690 | | Accrued utility charges | $2,708 | $2,515 | | Accrued transportation related items | $204 | $1,560 | | Accrued real estate taxes | $1,220 | $1,778 | | Commodity futures | $4,590 | $1,794 | | Accrued income taxes | $51 | $55 | | Other | $619 | $563 | | **Total** | **$11,274** | **$8,955** | - Total accrued expenses and other current liabilities increased by **$2,319k (25.89%)** from January 31, 2021, to July 31, 2021[62](index=62&type=chunk) - Commodity futures liabilities significantly increased from **$1,794k** to **$4,590k**, while accrued transportation related items decreased from **$1,560k** to **$204k**[62](index=62&type=chunk) [Note 8. Derivative Financial Instruments](index=16&type=section&id=Note%208.%20Derivative%20Financial%20Instruments) Fair Values of Derivative Financial Instruments (In Thousands) | Instrument | July 31, 2021 (Asset) | January 31, 2021 (Asset) | July 31, 2021 (Liability) | January 31, 2021 (Liability) | | :------------------------ | :-------------------- | :----------------------- | :---------------------- | :----------------------- | | Commodity futures | $784 | $- | $4,590 | $1,794 | | Forward purchase contracts | $673 | $2,144 | $- | $- | | **Total** | **$1,457** | **$2,144** | **$4,590** | **$1,794** | - The Company recognized losses on derivative financial instruments of approximately **$1.6 million** (Q2 2021) and **$2.8 million** (first six months 2021) in net sales and revenue[68](index=68&type=chunk) - Collateral required to secure derivative positions increased from approximately **$1.7 million** at January 31, 2021, to **$6.8 million** at July 31, 2021[66](index=66&type=chunk) [Note 9. Investments](index=17&type=section&id=Note%209.%20Investments) Equity Method Investment in Big River (In Thousands) | Entity | Ownership Percentage | Carrying Amount (July 31, 2021) | Carrying Amount (January 31, 2021) | | :------- | :------------------- | :------------------------------ | :--------------------------------- | | Big River | 10.3% | $31,870 | $29,456 | Summarized Financial Information for Big River (In Thousands) | Metric | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net sales and revenue | $363,383 | $130,126 | $619,799 | $327,758 | | Net income (loss) | $17,877 | $(4,914) | $23,412 | $(9,540) | - The Company did not receive any dividends from its equity method investee in the first six months of fiscal year 2021, compared to approximately **$2.0 million** in the first six months of fiscal year 2020[70](index=70&type=chunk) [Note 10. Employee Benefits](index=18&type=section&id=Note%2010.%20Employee%20Benefits) - Unrecognized compensation cost related to non-vested restricted stock was approximately **$155k** at July 31, 2021, down from **$272k** at January 31, 2021[76](index=76&type=chunk) Non-Vested Restricted Stock Activity (Shares) | Metric | Six Months Ended July 31, 2021 | Six Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | | Non-Vested at January 31 | 19,705 | 28,576 | | Granted | 2,803 | 6,158 | | Vested | 12,447 | 15,029 | | **Non-Vested at July 31** | **10,061** | **19,705** | [Note 11. Income Taxes](index=19&type=section&id=Note%2011.%20Income%20Taxes) Income Tax Benefit (In Thousands) | Metric | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Income tax benefit | $3,677 | $4,046 | $3,648 | $9,359 | - The income tax benefit for the first six months of fiscal year 2021 was **$3,648k**, significantly lower than **$9,359k** in the prior year, primarily due to a shift from pre-tax losses to pre-tax income and the level of tax credits from refined coal operations[82](index=82&type=chunk) - Total unrecognized tax benefits, including interest and penalties, increased from **$8,400k** at the beginning of the period to **$8,685k** at July 31, 2021[85](index=85&type=chunk) [Note 12. Commitments and Contingencies](index=20&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) - One Earth and NuGen have combined forward purchase contracts for approximately **10.6 million bushels** of corn and **639,000 MmBtu** of natural gas[87](index=87&type=chunk) - One Earth and NuGen have combined sales commitments for approximately **31.7 million gallons** of ethanol, **46,000 tons** of distillers grains, and **9.6 million pounds** of non-food grade corn oil[88](index=88&type=chunk) - Fees related to the refined coal operation totaled approximately **$3.1 million** for the six months ended July 31, 2021, compared to **$1.4 million** in the prior year[89](index=89&type=chunk) [Note 13. Related-Party Transactions](index=21&type=section&id=Note%2013.%20Related-Party%20Transactions) Related-Party Purchases of Corn and Other Supplies (In Millions) | Period | 2021 | 2020 | | :------------------------ | :----- | :----- | | Three Months Ended July 31 | $20.7 | $4.9 | | Six Months Ended July 31 | $37.4 | $17.2 | - Amounts payable to related parties were approximately **$2.5 million** at July 31, 2021, up from **$0.7 million** at January 31, 2021[90](index=90&type=chunk) - Commission expense of approximately **$0.2 million** was recognized in the second quarter and first six months of fiscal year 2021, payable to the minority investor in the refined coal entity[91](index=91&type=chunk) [Note 14. Segment Reporting](index=22&type=section&id=Note%2014.%20Segment%20Reporting) Net Sales and Revenue by Segment (In Thousands) | Segment | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Ethanol and by-products | $195,678 | $39,242 | $359,720 | $122,477 | | Refined coal | $165 | $85 | $227 | $100 | | **Total** | **$195,843** | **$39,327** | **$359,947** | **$122,577** | Segment Gross Profit (Loss) (In Thousands) | Segment | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Ethanol and by-products | $14,155 | $553 | $33,631 | $(7,670) | | Refined coal | $(3,081) | $(1,884) | $(4,755) | $(2,991) | | **Total** | **$11,074** | **$(1,331)** | **$28,876** | **$(10,661)** | Net Income (Loss) Attributable to REX Common Shareholders by Segment (In Thousands) | Segment | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Ethanol and by-products | $6,418 | $(2,178) | $14,374 | $(9,611) | | Refined coal | $2,139 | $898 | $2,612 | $1,048 | | Corporate and other | $(681) | $(468) | $(1,326) | $(820) | | **Total** | **$7,876** | **$(1,748)** | **$15,660** | **$(9,383)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the Company's financial condition and operational results, covering ethanol, refined coal, and Future Energy segments, alongside key trends, uncertainties, and liquidity for the periods ended July 31, 2021, and 2020 [Ethanol and By-Products](index=24&type=section&id=Ethanol%20and%20By-Products) REX's Effective Ownership of Trailing 12 Months Ethanol Gallons Shipped (In Millions) | Entity | Current Effective Ownership Interest | REX's Current Effective Ownership of Trailing 12 Months Ethanol Gallons Shipped | | :-------------------------------- | :--------------------------------- | :------------------------------------------------------------------------------ | | One Earth Energy, LLC | 75.6% | 108.8 M | | NuGen Energy, LLC | 99.7% | 137.0 M | | Big River Resources, LLC (various plants) | 5.7% - 10.3% | 36.2 M | | **Total** | | **283.0 M** | - Ethanol operations are highly dependent on volatile commodity prices for corn, ethanol, distillers grains, non-food grade corn oil, and natural gas, leading to substantial fluctuations in operating results[96](index=96&type=chunk) - The Company manages commodity price risk using forward grain purchase, ethanol, distillers grains, and corn oil sale contracts, and commodity futures agreements, typically for no more than four months into the future[98](index=98&type=chunk)[99](index=99&type=chunk) [Refined Coal](index=25&type=section&id=Refined%20Coal) - The Company owns **95.35%** of a refined coal facility, acquired in August 2017 for approximately **$12.0 million**[100](index=100&type=chunk) - Revenues from refined coal sales are subsidized by federal production tax credits (IRC Section 45), expected to be approximately **$7.38 per ton** in calendar year 2021[100](index=100&type=chunk) - Operations are expected to cease by November 18, 2021, as the facility will no longer be eligible for tax credits, and would otherwise be unprofitable[100](index=100&type=chunk) [Future Energy](index=25&type=section&id=Future%20Energy) - The Company owns **60%** of Future Energy, LLC, a joint venture focused on eSteam technology for zero-emissions downhole heavy oil recovery[102](index=102&type=chunk) - Approximately **$2.5 million** has been cumulatively paid and expensed for ownership interest, patent, and other development costs[104](index=104&type=chunk) - The commercial feasibility of the eSteam technology has not yet been tested or proven[104](index=104&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - No changes were made to critical accounting policies during the three months ended July 31, 2021, as disclosed in the 2020 Annual Report on Form 10-K[105](index=105&type=chunk) [Fiscal Year](index=26&type=section&id=Fiscal%20Year) - All references to a fiscal year in this report refer to REX's fiscal year ending January 31[106](index=106&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) [Trends and Uncertainties](index=26&type=section&id=Trends%20and%20Uncertainties) - Ethanol segment operating results have been affected by weak margins due to higher corn costs, lower local corn availability, reduced ethanol demand, and EPA small refiner waivers[107](index=107&type=chunk) - The COVID-19 pandemic led to reduced demand for gasoline and ethanol, causing the idling of NuGen and One Earth ethanol plants in March 2020, with production resuming in May/June 2020[108](index=108&type=chunk) - The refined coal segment's operating results were affected by inconsistent utility plant demand, and operations are expected to cease by November 18, 2021, due to the expiration of federal production tax credits[113](index=113&type=chunk) [Comparison of Three and Six Months Ended July 31, 2021 and 2020](index=28&type=section&id=Comparison%20of%20Three%20and%20Six%20Months%20Ended%20July%2031%2C%202021%20and%202020) Net Sales and Revenue by Segment (In Thousands) | Segment | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Ethanol and by-products | $195,678 | $39,242 | $359,720 | $122,477 | | Refined coal | $165 | $85 | $227 | $100 | | **Total** | **$195,843** | **$39,327** | **$359,947** | **$122,577** | Segment Gross Profit (Loss) (In Thousands) | Segment | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Ethanol and by-products | $14,155 | $553 | $33,631 | $(7,670) | | Refined coal | $(3,081) | $(1,884) | $(4,755) | $(2,991) | | **Total** | **$11,074** | **$(1,331)** | **$28,876** | **$(10,661)** | Net Income (Loss) Attributable to REX Common Shareholders (In Thousands) | Metric | 3 Months Ended July 31, 2021 | 3 Months Ended July 31, 2020 | 6 Months Ended July 31, 2021 | 6 Months Ended July 31, 2020 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to REX common shareholders | $7,876 | $(1,748) | $15,660 | $(9,383) | - Ethanol sales increased by **160%** in gallons sold and **80%** in average selling price per gallon for Q2 2021 YoY, and **86%** in gallons sold and **62%** in average selling price per gallon for the first six months YoY[119](index=119&type=chunk) - The crush spread for Q2 2021 was approximately **break-even per gallon**, a significant improvement from **$(0.04) per gallon** in Q2 2020, and for the first six months, it improved from **$(0.08)** to **$0.02 per gallon**[125](index=125&type=chunk)[128](index=128&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Net Cash Flow Summary (In Thousands) | Activity | Six Months Ended July 31, 2021 | Six Months Ended July 31, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $17,157 | $(9,034) | | Net cash provided by (used in) investing activities | $276 | $(12,355) | | Net cash used in financing activities | $(2,521) | $(5,724) | - Working capital increased to approximately **$246.0 million** at July 31, 2021, from **$228.0 million** at January 31, 2021[144](index=144&type=chunk) - The Company completed a **500,000 share** buyback authorization and obtained authorization for an additional **500,000 shares**[149](index=149&type=chunk) - The Company is exploring a carbon sequestration project near the One Earth ethanol plant in collaboration with the University of Illinois[150](index=150&type=chunk) [Forward-Looking Statements](index=36&type=section&id=Forward-Looking%20Statements) - Forward-looking statements are subject to risks and uncertainties, including the impact of pandemics (COVID-19), legislative/regulatory changes, commodity price volatility (corn, ethanol, natural gas), logistical delays, and operational efficiency[152](index=152&type=chunk) - The Company does not intend to update publicly any forward-looking statements except as required by law[152](index=152&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's market risk exposure, particularly commodity price volatility, and its management strategies, quantifying the estimated impact of adverse price changes on pre-tax income Estimated Decrease in Pre-tax Income from a 10% Adverse Change in Commodity Prices (as of July 31, 2021, In Thousands) | Commodity | Volume for 12 Months | Unit of Measure | Decrease in Pre-tax Income From a 10% Adverse Change in Price | | :------------------------ | :------------------- | :---------------- | :------------------------------------------------------------ | | Ethanol | 280,000 | Gallons | $62,678 | | Corn | 100,000 | Bushels | $57,302 | | Distillers Grains | 770 | Tons | $12,548 | | Non-food grade Corn Oil | 77,750 | Pounds | $3,905 | | Natural Gas | 7,400 | MmBtu | $800 | - The Company manages commodity price risk with respect to the volatility of commodity prices inherent in the ethanol industry by using forward purchase and sale contracts and exchange traded commodity futures contracts[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of July 31, 2021, with no material changes in internal control over financial reporting during the last quarter - The Company's disclosure controls and procedures were evaluated and deemed effective as of July 31, 2021[156](index=156&type=chunk) - There were no material changes in internal control over financial reporting during the last fiscal quarter[157](index=157&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not involved in legal proceedings expected to materially adversely affect its financial condition, results of operations, or cash flows - The Company is not party to any legal proceedings that are believed to have a material adverse effect on its financial condition, results of operations, or cash flows[159](index=159&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2021 - There have been no material changes to the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended January 31, 2021[160](index=160&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable, reporting no unregistered sales of equity securities or use of proceeds [Item 3. Defaults upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section is not applicable, reporting no defaults upon senior securities [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable, reporting no mine safety disclosures [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No other information is reported in this section [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including certifications and iXBRL formatted financial statements and notes - The report includes Rule 13a-14(a)/15d-14(a) and Section 1350 Certifications[161](index=161&type=chunk) - The Consolidated Condensed Balance Sheets, Statements of Operations, Statements of Equity, Statements of Cash Flows, and Notes to Consolidated Condensed Financial Statements are provided in iXBRL format[161](index=161&type=chunk) [SIGNATURES](index=39&type=section&id=SIGNATURES) This section contains the certifications and signatures of the CEO and CFO for the report dated September 3, 2021 - The report was signed by Zafar Rizvi (Chief Executive Officer and President) and Douglas L. Bruggeman (Vice President, Finance and Treasurer / Chief Financial Officer) on September 3, 2021[164](index=164&type=chunk)

Financial Data and Key Metrics Changes - Sales for the quarter increased substantially by 398% primarily due to higher production levels as the NuGen and One Earth plants were idled for a portion of last year's second quarter due to the pandemic [6] - Ethanol sales for the quarter were based on 69 million gallons this year versus 26.5 million gallons last year, benefiting from a significant increase in average selling prices [7] - Gross profit for the ethanol and byproduct segment was $14.2 million compared to $553,000 in the prior year, with gross margin benefiting from increased volume and selling prices, offset somewhat by higher corn pricing [8] - Net income attributable to REX shareholders was $7.9 million in this year's second quarter compared to a net loss of $1.7 million in the prior year [14] Business Line Data and Key Metrics Changes - The refined coal segment reported a gross loss of $3.1 million for the second quarter, compared to a loss of $1.9 million in the prior year, but was offset by tax benefits from this segment [10] - SG&A expenses increased to $6.6 million from $4.4 million in the prior year, primarily due to increased shipping costs and higher incentive compensation [11] Market Data and Key Metrics Changes - The company noted that high corn prices and shortages are hampering the ethanol business, impacting profitability [17] - The availability of corn at reasonable prices and logistics issues are affecting production capacity at both majority-owned plants [22] Company Strategy and Development Direction - The company is looking for opportunities to acquire ethanol plants but has not had success this year [20] - A significant focus is on carbon capture projects, with collaboration with the University of Illinois and government grants to support these efforts [20][28] Management's Comments on Operating Environment and Future Outlook - Management indicated that while the operating environment is improving, cash margins are declining due to high corn prices and other logistical challenges [22] - The company expects gross margins to remain under pressure in the near future, which could adversely affect the third quarter [24] Other Important Information - The company completed its most recent share repurchase authorization and has approved an additional 500,000 share repurchase authorization [15] - The refined coal business is expected to end by November 18, 2021, as it will no longer be eligible for tax credits [10] Q&A Session Summary Question: Can you expand on the logistics issues with the DDG containers? - Management noted that logistics issues were improving, with an increase in container arrivals helping to alleviate storage concerns [34][36] Question: What are the expectations regarding corn prices? - Management observed that while corn prices have come down, the basis is weakening, and they are cautious about overbuying [37][38] Question: How does the company view share buybacks in the long term? - Management indicated that share buybacks are opportunistic and aim to support the stock price during dips, rather than being a constant strategy [39][40] Question: What are the major milestones for the carbon capture project? - The test well is expected to be drilled this fall, with results anticipated by mid-next year to assess carbon storage capacity [44][46] Question: When does the company expect the EPA to release fuel blending volume mandates? - Management expressed uncertainty regarding the timeline for the EPA's release of mandates, noting it has been delayed [51][52] Question: What is the impact of Hurricane Ida on ethanol demand? - Management indicated that any increase in demand due to Hurricane Ida would likely be short-term and not lead to permanent changes [58][59] Question: Why were there no acquisitions made this quarter? - Management stated that they did not find suitable acquisition opportunities that met their criteria, preferring to buy back shares instead [66][68] Question: Which countries are currently demanding ethanol? - Management highlighted that Canada, South Korea, Peru, and Mexico are significant markets, while Brazil's demand has decreased significantly this year [68][70]

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 April 30, 2021 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- ...

REX American Resources Corporation (NYSE:REX) Q1 2021 Earnings Conference Call May 26, 2021 11:00 AM ET Company Participants Doug Bruggeman - Chief Financial Officer Stuart Rose - Executive Chairman Zafar Rizvi - Chief Executive Officer Conference Call Participants Jordan Levy - Truist Securities Operator Greetings. And welcome to the REX American Resources Fiscal 2021 First Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a questio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JANUARY 31, 2021 COMMISSION FILE NO. 001-09097 REX AMERICAN RESOURCES CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 31-1095548 (I.R.S. Employer Identification No.) 7720 Paragon Road, Dayton, Ohio (Address of principal executiv ...