REX American Resources (REX) - 2025 Q1 - Quarterly Report

Revenue and Sales Performance - Ethanol revenue decreased 25% in Q1 FY2024 compared to Q1 FY2023, with average selling price per gallon dropping 28% to $1.60, offset by a 4% increase in gallons sold to 74.5 million gallons[112][113] - Distillers corn oil revenue decreased 25% in Q1 FY2024, with average price per pound dropping 25% to $0.47, partially offset by a 2% increase in pounds sold to 21.0 million pounds[112][115] - Modified distillers grains revenue decreased 24% in Q1 FY2024, with average price per ton dropping 35% to $82.52, partially offset by an 18% increase in tons sold to 14,510 tons[112][116] - Net sales and revenue decreased 24% in Q1 FY2024 compared to Q1 FY2023[112] Capital Expenditures and Projects - The company has spent $41.0 million life-to-date and is contractually committed to spend an additional $9.2 million on the carbon sequestration project, with total expected costs of $165-175 million[100] - The company has spent $37.0 million life-to-date and is contractually committed to spend an additional $5.1 million on the One Earth plant expansion and CI reduction efforts[100] - The company plans to increase One Earth ethanol plant production from 150 million gallons/year to 175 million gallons/year in Q1 FY2025, with further expansion to 200 million gallons/year planned[98] - The company submitted a CO2 pipeline application to the ICC but expects it to be dismissed due to new Illinois legislation, potentially delaying the project until July 1, 2026[96] - Capital expenditures for Q1 FY2024 were $24.8 million, including $10.1 million for expansion and CI scoring reduction at One Earth and $11.0 million for the carbon sequestration project[129] - Total capital expenditures for One Earth facilities are expected to be $165 million to $175 million, with $85 million to $110 million planned for the remainder of FY2024[132] Financial Instruments and Risk Management - The company utilizes derivative financial instruments, primarily exchange-traded commodity futures and swaps, for corn procurement and commodity marketing activities[93][119] - The company is exposed to market fluctuations in commodity prices, which could impact future operating results[137] Operating Expenses and Income - SG&A expenses increased to $6.1 million in Q1 FY2024 from $5.8 million in Q1 FY2023, primarily due to higher performance bonus expenses[120] - Income from equity investment in Big River was $1.7 million in Q1 FY2024, up from $1.5 million in Q1 FY2023, representing an effective ownership of 38.8 million gallons of ethanol shipped in the trailing twelve months[121] - Interest and other income increased to $5.9 million in Q1 FY2024 from $2.8 million in Q1 FY2023, driven by higher yields on excess cash and short-term investments[122] - Income before income taxes rose to $16.0 million in Q1 FY2024 compared to $8.7 million in Q1 FY2023, with an income tax provision of $3.7 million and $2.0 million respectively[123] - Net income attributable to REX common shareholders was $10.2 million in Q1 FY2024, up from $5.2 million in Q1 FY2023[125] Cash Flow and Working Capital - Net cash used in operating activities decreased to $2.3 million in Q1 FY2024 from $14.0 million in Q1 FY2023, with cash provided by net income of $12.3 million and non-cash adjustments of $5.6 million[126] - Working capital stood at $358.9 million as of April 30, 2024, down from $385.8 million at January 31, 2024, with a current assets to current liabilities ratio of 6.7 to 1[128] Shareholder Equity and Buyback Program - The company has a stock buyback program with 876,786 shares remaining authorized as of April 30, 2024[133]