REX American Resources (REX) - 2026 Q2 - Quarterly Report

Report Information This section provides administrative details of the Form 10-Q filing, including registrant information and securities status Form 10-Q Details This section outlines the administrative specifics of the Form 10-Q filing, including reporting period and registrant status - The report is a Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the period ended July 31, 2025[2] - REX American Resources Corporation is a Delaware corporation with Commission File Number 001-09097[2] - The registrant is a Large accelerated filer and is not a shell company[5] - As of August 29, 2025, there were 16,528,787 shares of Common Stock outstanding[5] Index The index outlines the 10-Q report's structure, detailing financial and other information with corresponding page numbers - The report is divided into two main parts: Part I - Financial Information and Part II - Other Information[7] - Part I includes Financial Statements, Management's Discussion and Analysis, Quantitative and Qualitative Disclosures About Market Risk, and Controls and Procedures[7] - Part II covers Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities, Defaults upon Senior Securities, Mine Safety Disclosures, Other Information, and Exhibits[7] Commonly Used Defined Terms This section defines key corporate entities, industry terms, and accounting/general business terms for report clarity - Key corporate entities include REX/the Company, NuGen (99.7% REX ownership), One Earth (76.1% REX ownership), and Big River (10.3% REX ownership)[10] - Industry terms defined include CI (Carbon Intensity), CO2 (Carbon dioxide), EPA (United States Environmental Protection Agency), IRA (Inflation Reduction Act), RFS II (Renewable Fuel Standard II), RIN(s) (Renewable Identification Number(s)), SAF (Sustainable Aviation Fuel), and various IRC sections (41, 45, 45Q, 45Z)[11] - Accounting and general business terms include ASC (Accounting Standards Codification), ASU (Accounting Standards Update), FASB (Financial Accounting Standards Board), and SG&A (Selling, general, and administrative)[12] PART I. FINANCIAL INFORMATION This part presents the unaudited consolidated financial statements and management's discussion and analysis for the reporting period Item 1. Financial Statements This section presents the unaudited consolidated financial statements, encompassing balance sheets, statements of operations, equity, cash flows, and detailed notes Consolidated Balance Sheets This section presents the consolidated balance sheets, detailing assets, liabilities, and equity at July 31, 2025, and January 31, 2025 Consolidated Balance Sheet Highlights (In Thousands) | Metric | July 31, 2025 | January 31, 2025 | Change (Jul 25 vs Jan 25) | | :-------------------------------- | :-------------- | :--------------- | :------------------------ | | Total Assets | $700,596 | $720,008 | -$19,412 | | Total Current Assets | $390,516 | $435,819 | -$45,303 | | Cash and cash equivalents | $240,962 | $196,255 | +$44,707 | | Short-term investments | $69,490 | $162,820 | -$93,330 | | Total Liabilities | $69,606 | $76,406 | -$6,800 | | Total Current Liabilities | $37,085 | $50,443 | -$13,358 | | Total Equity | $630,990 | $643,602 | -$12,612 | - Total assets decreased by $19.4 million from January 31, 2025, to July 31, 2025, primarily due to a significant decrease in short-term investments, partially offset by an increase in cash and cash equivalents[14] - Total current liabilities decreased by $13.4 million, driven by reductions in accounts payable and accrued expenses[14] Consolidated Statements of Operations This section presents the consolidated statements of operations, outlining net sales, costs, and net income for the three and six months ended July 31, 2025 and 2024 Consolidated Statements of Operations Highlights (In Thousands, Except Per Share Amounts) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales and revenue | $158,563 | $148,155 | $316,903 | $309,386 | | Cost of sales | $144,244 | $128,382 | $288,242 | $275,162 | | Gross profit | $14,319 | $19,773 | $28,661 | $34,224 | | Income before income taxes | $12,097 | $19,496 | $25,723 | $35,459 | | Net income attributable to REX common shareholders | $7,111 | $12,378 | $15,789 | $22,569 | | Basic net income per share | $0.43 | $0.71 | $0.95 | $1.29 | | Diluted net income per share | $0.43 | $0.70 | $0.95 | $1.28 | - Net sales and revenue increased by 7% for the three months ended July 31, 2025, compared to the prior year, and by 2% for the six months ended July 31, 2025[15] - Gross profit decreased significantly by 27.6% for the three months and 16.3% for the six months ended July 31, 2025, primarily due to a higher increase in cost of sales relative to revenue growth[15] - Net income attributable to REX common shareholders decreased by 42.6% for the three months and 30.0% for the six months ended July 31, 2025, reflecting the decline in gross profit and income before taxes[15] Consolidated Statements of Equity This section details changes in REX shareholders' equity and noncontrolling interests for the six months ended July 31, 2025 REX Shareholders' Equity Changes (In Thousands) | Metric | Balance at Jan 31, 2025 | Balance at July 31, 2025 | Change | | :-------------------------- | :---------------------- | :--------------------- | :----- | | Total REX shareholders' equity | $560,337 | $545,766 | -$14,571 | | Retained earnings | $759,928 | $775,717 | +$15,789 | | Treasury stock | $(206,360) | $(238,287) | -$31,927 | | Noncontrolling interests | $83,265 | $85,224 | +$1,959 | - REX shareholders' equity decreased by $14.6 million from January 31, 2025, to July 31, 2025, primarily due to significant treasury stock acquisitions ($32.7 million and $0.1 million) partially offset by net income[17] - Retained earnings increased by $15.8 million, reflecting net income attributable to REX common shareholders for the six-month period[17] Consolidated Statements of Cash Flows This section presents consolidated cash flows, categorizing movements from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Six Months Ended July 31, In Thousands) | Cash Flow Activity | 2025 | 2024 | Change (2025 vs 2024) | | :-------------------------------- | :------- | :------- | :-------------------- | | Net cash provided by operating activities | $12,808 | $5,708 | +$7,100 | | Net cash provided by investing activities | $67,533 | $33,772 | +$33,761 | | Net cash used in financing activities | $(35,634) | $(1,837) | -$33,797 | | Net increase in cash and cash equivalents | $44,707 | $37,643 | +$7,064 | | Cash and cash equivalents, end of period | $240,962 | $261,040 | -$20,078 | - Operating cash flow significantly increased to $12.8 million in 2025 from **