Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 31, 2015 | Aug. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | REX AMERICAN RESOURCES Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 6,905,193 | |
Amendment Flag | false | |
Entity Central Index Key | 744,187 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 138,107 | $ 137,697 |
Restricted cash | 203 | |
Accounts receivable | 13,736 | 8,794 |
Inventory | 23,250 | 18,062 |
Refundable income taxes | 2,958 | 3,019 |
Prepaid expenses and other | 5,854 | 5,810 |
Deferred taxes, net | 2,363 | 2,363 |
Total current assets | 186,471 | 175,745 |
Property and equipment, net | 189,056 | 194,447 |
Other assets | 8,118 | 6,366 |
Equity method investments | 41,778 | 80,389 |
Total assets | 425,423 | 456,947 |
Current liabilities: | ||
Accounts payable, trade | 11,975 | 9,210 |
Accrued expenses and other current liabilities | 8,223 | 10,347 |
Total current liabilities | 20,198 | 19,557 |
Long-term liabilities: | ||
Deferred taxes | 34,999 | 42,768 |
Other long-term liabilities | 797 | 1,658 |
Total long-term liabilities | 35,796 | 44,426 |
REX shareholders’ equity: | ||
Common stock | 299 | 299 |
Paid-in capital | 144,801 | 144,791 |
Retained earnings | 464,732 | 444,438 |
Treasury stock | (285,745) | (239,557) |
Total REX shareholders’ equity | 324,087 | 349,971 |
Noncontrolling interests | 45,342 | 42,993 |
Total equity | 369,429 | 392,964 |
Total liabilities and equity | $ 425,423 | $ 456,947 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net sales and revenue | $ 113,480 | $ 150,231 | $ 218,677 | $ 306,156 |
Cost of sales | 95,204 | 111,391 | 191,274 | 230,681 |
Gross profit | 18,276 | 38,840 | 27,403 | 75,475 |
Selling, general and administrative expenses | (6,456) | (4,839) | (10,909) | (11,010) |
Gain on sale of investment | 10,385 | 10,385 | ||
Equity in income of unconsolidated affiliates | 5,063 | 7,245 | 6,543 | 15,542 |
Gain on disposal of property and equipment, net | 12 | 495 | ||
Interest and other income | 107 | 87 | 325 | 135 |
Interest expense | (591) | (1,283) | ||
Income from continuing operations before income taxes | 27,387 | 40,742 | 34,242 | 78,859 |
Provision for income taxes | (8,676) | (14,017) | (11,092) | (27,937) |
Income from continuing operations | 18,711 | 26,725 | 23,150 | 50,922 |
Loss from discontinued operations, net of tax | (12) | (9) | ||
Gain on disposal of discontinued operations, net of tax | 5 | 5 | ||
Net income | 18,711 | 26,718 | 23,150 | 50,918 |
Net income attributable to noncontrolling interests | (2,344) | (4,811) | (2,856) | (7,269) |
Net income attributable to REX common shareholders | $ 16,367 | $ 21,907 | $ 20,294 | $ 43,649 |
Weighted average shares outstanding – basic (in Shares) | 7,580 | 8,182 | 7,737 | 8,150 |
Basic net income per share attributable to REX common shareholders (in Dollars per share) | $ 2.16 | $ 2.68 | $ 2.62 | $ 5.36 |
Weighted average shares outstanding – diluted (in Shares) | 7,580 | 8,182 | 7,737 | 8,166 |
Diluted net income per share attributable to REX common shareholders (in Dollars per share) | $ 2.16 | $ 2.68 | $ 2.62 | $ 5.35 |
Amounts attributable to REX common shareholders: | ||||
Income from continuing operations, net of tax | $ 16,367 | $ 21,914 | $ 20,294 | $ 43,653 |
Loss from discontinued operations, net of tax | (7) | (4) | ||
Net income | $ 16,367 | $ 21,907 | $ 20,294 | $ 43,649 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 23,150 | $ 50,918 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, impairment charges and amortization | 9,430 | 8,350 |
Income from equity method investments | (6,543) | (15,542) |
Gain on sale of investment | (10,385) | |
Gain on disposal of real estate and property and equipment, net | (495) | (3) |
Dividends received from equity method investees | 5,638 | 8,592 |
Derivative financial instruments | (770) | |
Deferred income tax | (8,644) | 5,323 |
Stock based compensation expense | 10 | |
Excess tax benefit from stock option exercises | (441) | |
Changes in assets and liabilities: | ||
Accounts receivable | (2,754) | 2,494 |
Inventories | (5,188) | 2,083 |
Other assets | 192 | 463 |
Accounts payable, trade | 261 | (198) |
Other liabilities | (2,110) | 353 |
Net cash provided by operating activities | 2,562 | 61,622 |
Cash flows from investing activities: | ||
Capital expenditures | (5,865) | (3,402) |
Restricted cash | (203) | 500 |
Restricted investments and deposits | 250 | 273 |
Proceeds from sale of investment | 45,476 | |
Proceeds from sale of real estate and property and equipment, net | 1,935 | 487 |
Other | 12 | |
Net cash provided by (used in) investing activities | 41,605 | (2,142) |
Cash flows from financing activities: | ||
Payments of long-term debt | (13,726) | |
Stock options exercised | 931 | |
Payments to noncontrolling interests holders | (507) | (39) |
Excess tax benefit from stock option exercises | 441 | |
Treasury stock acquired | (43,250) | |
Net cash used in financing activities | (43,757) | (12,393) |
Net increase in cash and cash equivalents | 410 | 47,087 |
Cash and cash equivalents, beginning of period | 137,697 | 105,149 |
Cash and cash equivalents, end of period | 138,107 | 152,236 |
Non cash investing activities – Accrued capital expenditures | 370 | $ 239 |
Non cash financing activities – Accrued treasury stock purchases | $ 2,938 |
Consolidated Condensed Financia
Consolidated Condensed Financial Statements | 6 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1. Consolidated Condensed Financial Statements The consolidated condensed financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Financial information as of January 31, 2015 included in these financial statements has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2015 (fiscal year 2014). It is suggested that these unaudited consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2015. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year. Basis of Consolidation – The consolidated condensed financial statements in this report include the operating results and financial position of REX American Resources Corporation and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Condensed Statements of Operations on a delayed basis of one month. Nature of Operations – The Company operates in one reportable segment, alternative energy, and has equity investments in three ethanol limited liability companies, two of which are majority ownership interests. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2. Accounting Policies The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the Company’s fiscal year 2014 Annual Report on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates. Revenue Recognition The Company recognizes sales from the production of ethanol, distillers grains and non-food grade corn oil when title transfers to customers, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Shipping and handling charges billed to customers are included in net sales and revenue. Cost of Sales Cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant management, certain compensation costs, and general facility overhead charges. Selling, General and Administrative Expenses The Company includes non-production related costs such as professional fees, selling charges and certain payroll in selling, general and administrative expenses. Interest Expense No interest was paid for the three months and six months ended July 31, 2015. Interest paid for the three months and six months ended July 31, 2014 was approximately $496,000 and $1,316,000, respectively. Financial Instruments The Company used derivative financial instruments to manage its balance of fixed and variable rate debt. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. Interest rate swap agreements involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the notional amounts between the parties. The swap agreement was not designated for hedge accounting pursuant to Accounting Standards Codification (“ASC”) 815, “ Derivatives and Hedging A majority of the forward grain purchase and ethanol, distillers grains and non-food grade corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of ASC 815 because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and non-food grade corn oil quantities expected to be produced by the Company over a reasonable period of time in the normal course of business. There were no settlements of forward contracts that are recorded at fair value. At July 31, 2015, the Company recorded a liability of approximately $0.5 million associated with these contracts. The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn, ethanol and distillers grains. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. Income Taxes The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $19,680,000 and $18,521,000 during the six months ended July 31, 2015 and 2014, respectively. The Company received refunds of state income taxes of approximately $100,000 during the six months ended July 31, 2015. The Company received no refunds of income taxes during the six months ended July 31, 2014. As of July 31, 2015, total unrecognized tax benefits were approximately $317,000 and accrued penalties and interest were approximately $480,000. If the Company were to prevail on all unrecognized tax benefits recorded, approximately $24,000 of the reserve would benefit the effective tax rate. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. Inventories Inventories are carried at the lower of cost or market on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities related to producing ethanol and related by-products. Inventory is permanently written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. There were no permanent write-downs of inventory at July 31, 2015 and January 31, 2015. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory at a given point in time. The components of inventory are as follows as of the dates presented (amounts in thousands): July 31, January 31, Ethanol and other finished goods $ 4,268 $ 3,039 Work in process 2,609 2,609 Grain and other raw materials 16,373 12,414 Total $ 23,250 $ 18,062 Property and Equipment Property and equipment is recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment. In accordance with ASC 360-10 “ Impairment or Disposal of Long-Lived Assets The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any. The Company generally determines the fair value of the asset group using a discounted cash flow model based on market participant assumptions (for income producing asset groups) or by obtaining appraisals based on the market approach and comparable market transactions (for non-income producing asset groups). For real estate assets, each individual real estate property represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. As such, the Company separately tests individual real estate properties for recoverability. Real estate assets include both income producing and non-income producing asset groups. For alternative energy reportable assets, each individual ethanol plant represents the lowest level for which identifiable cash flows are independent of the cash flows of other assets and liabilities. As such, the Company separately tests individual ethanol plants for recoverability. In addition to the general events and changes in circumstances noted above that indicate that an asset group may not be recoverable, the Company also considers the decision to suspend operations at a plant for at least a six month period an indicator. Alternative energy assets include only income producing asset groups. Investments The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company consolidates the results of two majority owned subsidiaries, One Earth and NuGen. The results of One Earth are included on a delayed basis of one month lag as One Earth has a fiscal year end of December 31. NuGen has the same fiscal year as the parent, and therefore, there is no lag in reporting the results of NuGen. The Company accounts for investments in limited liability companies in which it may have a less than 20% ownership interest, using the equity method of accounting when the factors discussed in ASC 323, “ Investments-Equity Method and Joint Ventures The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established. Comprehensive Income The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income. Accounting Changes and Recently Issued Accounting Standards The Company will be required to adopt the amended guidance in Accounting Standards Codification Topic 606, “ Revenue from Contracts with Customers Effective February 1, 2015, the Company was required to adopt Accounting Standard Update (“ASU”) No. 2014-08 (“ASU 2014-08”), “ Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective February 1, 2017, the Company will be required to adopt the amended guidance in Accounting Standards Codification Topic 330, “ Inventory: Simplifying the Measurement of Inventory” |
Leases
Leases | 6 Months Ended |
Jul. 31, 2015 | |
Leases [Abstract] | |
Leases of Lessor Disclosure [Text Block] | Note 3. Leases At July 31, 2015, the Company has lease agreements, as lessee, for rail cars and a natural gas pipeline. All of the leases are accounted for as operating leases. The following table is a summary of future minimum rentals on such leases (amounts in thousands): Years Ended January 31, Minimum Remainder of 2016 $ 3,694 2017 7,340 2018 6,575 2019 5,845 2020 4,341 Thereafter 6,947 Total $ 34,742 |
Fair Value
Fair Value | 6 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 4. Fair Value The Company applies ASC 820, “ Fair Value Measurements and Disclosures The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries an investment in cooperative at fair value. The fair values of property and equipment, as applicable, are determined by using various models that discount future expected cash flows. Estimation risk is greater for vacant properties as the probability of expected cash flows from the use of vacant properties is difficult to predict. Financial assets and liabilities measured at fair value on a recurring basis at July 31, 2015 are summarized below (amounts in thousands): Level 1 Level 2 Level 3 Fair Value Derivative financial instruments (1) $ 448 $ — $ — $ 448 Investment in cooperative (2) — — 333 333 Total assets $ 448 $ — $ 333 $ 781 Forward purchase contract liability (3) $ — $ — $ 469 $ 469 Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2015 are summarized below (amounts in thousands): Level 1 Level 2 Level 3 Fair Value Investment in cooperative (2) $ — $ — $ 333 $ 333 (1) The derivative financial instruments are included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets. (2) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets. (3) The forward purchase contract liability is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets. The Company determined the fair value of derivative financial instruments by obtaining unadjusted quoted prices in active markets for identical assets. The Company determined the fair value of the investment in cooperative by using a discounted cash flow analysis on the expected cash flows. Inputs used in the analysis include the face value of the allocated equity amount, the projected term for repayment based upon a historical trend, and a risk adjusted discount rate based on the expected compensation participants would demand because of the uncertainty of the future cash flows. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment. The Company determined the fair value of the forward purchase contracts by comparing the fixed purchase price included in the contracts to an equivalent purchase price published on commodity exchanges. Inputs used in the analysis include the quantity of corn to purchase and the delivery date of such corn. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment. There were no assets measured at fair value on a non-recurring basis at July 31, 2015 or January 31, 2015. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5. Property and Equipment The components of property and equipment are as follows for the periods presented (amounts in thousands): July 31, January 31, Land and improvements $ 21,598 $ 20,844 Buildings and improvements 24,519 27,069 Machinery, equipment and fixtures 231,907 231,422 Construction in progress 2,143 1,290 280,167 280,625 Less: accumulated depreciation (91,111 ) (86,178 ) $ 189,056 $ 194,447 |
Other Assets
Other Assets | 6 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | Note 6. Other Assets The components of other assets are as follows for the periods presented (amounts in thousands): July 31, January 31, Deposits $ 664 $ 914 Real estate taxes refundable 4,395 4,395 Proceeds from sale of investment held in escrow 2,188 — Other 871 1,057 Total $ 8,118 $ 6,366 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 7. Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands): July 31, January 31, Accrued utility charges $ 1,968 $ 3,085 Accrued payroll and related items 2,740 3,798 Accrued real estate taxes 1,959 2,507 Other 1,556 957 Total $ 8,223 $ 10,347 |
Revolving Lines of Credit
Revolving Lines of Credit | 6 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 8. Revolving Lines of Credit Effective April 1, 2015, One Earth and NuGen each entered into $10.0 million revolving loan facilities that mature April 1, 2016. Any borrowings will be secured by the inventory and accounts receivable of One Earth or NuGen. These revolving loan facilities are recourse only to One Earth and NuGen and not to REX American Resources Corporation or any of its other subsidiaries. Borrowings under these facilities bear interest at LIBOR plus 250 basis points. Neither One Earth nor NuGen had outstanding borrowings on the revolving loans during the six months ended July 31, 2015. One Earth and NuGen are also subject to certain financial covenants under the revolving loan facilities, including working capital requirements. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 31, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Note 9. Stock-Based Compensation The Company has a stock-based compensation plan which reserves a total of 550,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records noncash compensation expense related to equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. All of the Company’s existing share-based compensation awards have been determined to be equity awards. Restricted stock has been granted to directors at the market price of REX common stock on the date of the grant. In addition one third of executives’ incentive compensation is payable by an award of restricted stock based on the then market price of REX common stock. The following table summarizes non-vested stock award activity for the three and six months ended July 31, 2015: Non-Vested Weighted- Weighted- Non-Vested at January 31, 2015 — $ — Granted 3,168 200 Forfeited — — Vested — — Non-Vested at July 31, 2015 3,168 $ 200 3 At July 31, 2015, unrecognized compensation cost related to nonvested restricted stock was approximately $189,000. |
Income Per Share from Continuin
Income Per Share from Continuing Operations Attributable to REX Common Shareholders | 6 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 10. Income Per Share from Continuing Operations Attributable to REX Common Shareholders The following table reconciles the computation of basic and diluted net income per share from continuing operations for the periods presented (in thousands, except per share amounts): Three Months Ended Three Months Ended July 31, 2015 July 31, 2014 Income Shares Per Income Shares Per Basic income per share from continuing operations attributable to REX common shareholders $ 16,367 7,580 $ 2.16 $ 21,914 8,182 $ 2.68 Effect of restricted stock — — — — Diluted income per share from continuing operations attributable to REX common shareholders $ 16,367 7,580 $ 2.16 $ 21,914 8,182 $ 2.68 Six Months Ended Six Months Ended July 31, 2015 July 31, 2014 Income Shares Per Income Shares Per Basic income per share from continuing operations attributable to REX common shareholders $ 20,294 7,737 $ 2.62 $ 43,653 8,150 $ 5.36 Effect of restricted stock — — — 16 Diluted income per share from continuing operations attributable to REX common shareholders $ 20,294 7,737 $ 2.62 $ 43,653 8,166 $ 5.35 For the three and six months ended July 31, 2015, there were no shares subject to outstanding options. For the three and six months ended July 31, 2014, all shares subject to outstanding options were dilutive. As historical discontinued operations are immaterial, there is no difference between earnings per share from continuing operations and earnings per share attributable to REX common shareholders. |
Investments
Investments | 6 Months Ended |
Jul. 31, 2015 | |
Investments And Deposits [Abstract] | |
Investments And Deposits [Text Block] | Note 11. Investments The following table summarizes equity method investments at July 31, 2015 and January 31, 2015 (amounts in thousands): Entity Ownership Percentage Carrying Amount July 31, 2015 Carrying Amount January 31, 2015 Big River 10 % $ 41,778 $ 40,188 Patriot (sold June 1, 2015) 27 % — 40,201 Total Equity Method Investments $ 41,778 $ 80,389 The following table summarizes income recognized from equity method investments for the periods presented (amounts in thousands): Three Months Ended July 31, Six Months Ended July 31, 2015 2014 2015 2014 Big River $ 2,589 $ 4,720 $ 3,596 $ 9,779 Patriot 2,474 2,525 2,947 5,763 Total $ 5,063 $ 7,245 $ 6,543 $ 15,542 Undistributed earnings totaled approximately $21.8 million and $41.9 million at July 31, 2015 (Big River) and January 31, 2015 (Big River and Patriot), respectively. During the first six months of fiscal years 2015 and 2014, the Company received dividends from equity method investees of approximately $5.6 million and $8.6 million, respectively. Summarized financial information for each of the Company’s equity method investees is presented in the following table for the periods presented (amounts in thousands): Three Months Ended Three Months Ended Patriot (1) Big River Patriot (1) Big River Net sales and revenue $ 52,375 $ 223,191 $ 79,127 $ 312,843 Gross profit $ 10,605 $ 38,463 $ 11,244 $ 40,476 Income from continuing operations $ 9,321 $ 26,663 $ 9,511 $ 48,618 Net income $ 9,321 $ 26,663 $ 9,511 $ 48,618 Six Months Ended Six Months Ended Patriot (1) Big River Patriot (1) Big River Net sales and revenue $ 115,614 $ 407,998 $ 159,536 $ 593,267 Gross profit $ 14,424 $ 49,267 $ 25,029 $ 124,310 Income from continuing operations $ 11,100 $ 37,040 $ 21,705 $ 100,739 Net income $ 11,100 $ 37,040 $ 21,705 $ 100,739 (1) For Patriot, results are for the two and five month periods ended May 31, 2015 as the Company’s equity interest in Patriot was sold June 1, 2015. Big River has debt agreements that limit amounts the Company can pay in the form of dividends or advances to owners. The restricted net assets of Big River at July 31, 2015 and January 31, 2015 are approximately $335.5 million and $322.1 million, respectively. The restricted net assets of Patriot at January 31, 2015 were approximately $99.8 million. On June 1, 2015, Patriot and a subsidiary of CHS Inc. (“CHS”) completed a merger that resulted in CHS acquiring 100% of the ownership interest in Patriot. The Company received a cash payment of approximately $45.5 million at the closing, representing its proportionate share of the merger consideration. The total merger consideration was approximately $196 million in cash subject to certain adjustments and certain escrow holdbacks. In connection with this transaction, the Company recognized a gain of approximately $10.4 million. At July 31, 2015, the Company has approximately $2.2 million in accounts receivable and approximately $2.2 million in other long term assets on the accompanying Consolidated Condensed Balance Sheet related to estimated escrow proceeds that were recognized as income. The Company expects that a determination of the final payment of escrowed proceeds to be received will occur by December 1, 2016. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 12 . Income Taxes The effective tax rate on consolidated pre-tax income from continuing operations was 31.7% for the three months ended July 31, 2015, and 34.4% for the three months ended July 31, 2014. The effective tax rate on consolidated pre-tax income from continuing operations was 32.4% for the six months ended July 31, 2015, and 35.4% for the six months ended July 31, 2014. The fluctuations in the effective tax rate primarily relate to the release of valuation allowances against capital loss carryforwards and the domestic production activities deduction. These items reduced the effective tax rate approximately 3% for the quarter and six months ended July 31, 2015. The Company files a U.S. federal income tax return and income tax returns in various states. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2011 and prior. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands): Unrecognized tax benefits, January 31, 2015 $ 1,658 Changes for prior years’ tax positions (861 ) Changes for current year tax positions — Unrecognized tax benefits, July 31, 2015 $ 797 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jul. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 13. Discontinued Operations During fiscal year 2009, the Company completed the exit of its retail business. Accordingly, certain of the Company’s former retail operations and certain sold properties had been classified as discontinued operations prior to the adoption of ASU 2014-08 effective February 1, 2015. Below is a table reflecting certain items of the Consolidated Condensed Statement of Operations that were reclassified as discontinued operations for the periods presented (amounts in thousands): Three Months Ended Six Months Ended July 31, July 31, 2015 2014 2015 2014 Net sales and revenue $ — $ — $ — $ 12 Cost of sales — 19 — 26 Loss before income taxes — (19 ) — (14 ) Benefit for income taxes — 7 — 5 Loss from discontinued operations, net of tax $ — $ (12 ) $ — $ (9 ) Gain on disposal $ — $ 8 $ — $ 8 Provision for income taxes — (3 ) — (3 ) Gain on disposal of discontinued operations, net of tax $ — $ 5 $ — $ 5 The cash flows from the discontinued operations were immaterial for all periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 14. Commitments and Contingencies The Company is involved in various legal actions arising in the normal course of business. After taking into consideration legal counsels’ evaluations of such actions, management is of the opinion that their outcome will not have a material effect on the Company’s consolidated condensed financial statements. One Earth and NuGen have combined forward purchase contracts for approximately 10.8 million bushels of corn, the principal raw material for their ethanol plants. They expect to take delivery of the grain through December 2015. One Earth and NuGen have combined sales commitments for approximately 53.7 million gallons of ethanol, approximately 84,000 tons of distillers grains and approximately 6.4 million pounds of non-food grade corn oil. They expect to deliver the ethanol, distillers grains and non-food grade corn oil through November 2015. |
Net Sales and Revenue
Net Sales and Revenue | 6 Months Ended |
Jul. 31, 2015 | |
Net Sales And Revenue [Abstract] | |
Net Sales And Revenue [Text Block] | Note 15. Net Sales and Revenue The following table summarizes sales for each product and service group for the periods presented (amounts in thousands): Three Months Ended Six Months Ended July 31, July 31, Product or Service Category 2015 2014 2015 2014 Ethanol $ 86,990 $ 118,613 $ 165,562 $ 237,719 Dried distillers grains 21,585 25,809 41,836 56,838 Non-food grade corn oil 4,049 4,729 8,008 8,659 Modified distillers grains 696 791 3,001 2,281 Other 160 289 270 659 Total $ 113,480 $ 150,231 $ 218,677 $ 306,156 |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jul. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 16. Related-Party Transactions During the second quarters of fiscal year 2015 and 2014, One Earth and NuGen purchased approximately $38.0 million and $40.4 million, respectively, of corn from minority equity investors and board members of those subsidiaries. Such purchases totaled approximately $76.3 million and approximately $85.2 million for the six months ended July 31, 2015 and 2014, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 17. Subsequent Event Subsequent to the end of the second quarter of fiscal year 2015, the Company purchased 233,243 of its common shares for approximately $11.6 million, completing the previously authorized share repurchase authorization. On August 26, 2015, the Company’s Board of Directors increased its share repurchase authorization by an additional 500,000 shares. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the Company’s fiscal year 2014 Annual Report on Form 10-K. |
Revenue Recognition, Policy [Policy Text Block] | The Company recognizes sales from the production of ethanol, distillers grains and non-food grade corn oil when title transfers to customers, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Shipping and handling charges billed to customers are included in net sales and revenue. |
Cost of Sales, Policy [Policy Text Block] | Cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant management, certain compensation costs, and general facility overhead charges. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | The Company includes non-production related costs such as professional fees, selling charges and certain payroll in selling, general and administrative expenses. |
Interest Expense, Policy [Policy Text Block] | No interest was paid for the three months and six months ended July 31, 2015. Interest paid for the three months and six months ended July 31, 2014 was approximately $496,000 and $1,316,000, respectively. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company used derivative financial instruments to manage its balance of fixed and variable rate debt. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. Interest rate swap agreements involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the notional amounts between the parties. The swap agreement was not designated for hedge accounting pursuant to Accounting Standards Codification (“ASC”) 815, “ Derivatives and Hedging A majority of the forward grain purchase and ethanol, distillers grains and non-food grade corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of ASC 815 because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and non-food grade corn oil quantities expected to be produced by the Company over a reasonable period of time in the normal course of business. There were no settlements of forward contracts that are recorded at fair value. At July 31, 2015, the Company recorded a liability of approximately $0.5 million associated with these contracts. The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn, ethanol and distillers grains. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn, ethanol and distillers grains. |
Income Tax, Policy [Policy Text Block] | The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $19,680,000 and $18,521,000 during the six months ended July 31, 2015 and 2014, respectively. The Company received refunds of state income taxes of approximately $100,000 during the six months ended July 31, 2015. The Company received no refunds of income taxes during the six months ended July 31, 2014. As of July 31, 2015, total unrecognized tax benefits were approximately $317,000 and accrued penalties and interest were approximately $480,000. If the Company were to prevail on all unrecognized tax benefits recorded, approximately $24,000 of the reserve would benefit the effective tax rate. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. |
Inventory, Policy [Policy Text Block] | Inventories are carried at the lower of cost or market on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities related to producing ethanol and related by-products. Inventory is permanently written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. There were no permanent write-downs of inventory at July 31, 2015 and January 31, 2015. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory at a given point in time. The components of inventory are as follows as of the dates presented (amounts in thousands): July 31, January 31, Ethanol and other finished goods $ 4,268 $ 3,039 Work in process 2,609 2,609 Grain and other raw materials 16,373 12,414 Total $ 23,250 $ 18,062 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment is recorded at cost. Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 3 to 20 years for fixtures and equipment. In accordance with ASC 360-10 “ Impairment or Disposal of Long-Lived Assets The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any. The Company generally determines the fair value of the asset group using a discounted cash flow model based on market participant assumptions (for income producing asset groups) or by obtaining appraisals based on the market approach and comparable market transactions (for non-income producing asset groups). For real estate assets, each individual real estate property represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. As such, the Company separately tests individual real estate properties for recoverability. Real estate assets include both income producing and non-income producing asset groups. For alternative energy reportable assets, each individual ethanol plant represents the lowest level for which identifiable cash flows are independent of the cash flows of other assets and liabilities. As such, the Company separately tests individual ethanol plants for recoverability. In addition to the general events and changes in circumstances noted above that indicate that an asset group may not be recoverable, the Company also considers the decision to suspend operations at a plant for at least a six month period an indicator. Alternative energy assets include only income producing asset groups. |
Investment, Policy [Policy Text Block] | The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company consolidates the results of two majority owned subsidiaries, One Earth and NuGen. The results of One Earth are included on a delayed basis of one month lag as One Earth has a fiscal year end of December 31. NuGen has the same fiscal year as the parent, and therefore, there is no lag in reporting the results of NuGen. The Company accounts for investments in limited liability companies in which it may have a less than 20% ownership interest, using the equity method of accounting when the factors discussed in ASC 323, “ Investments-Equity Method and Joint Ventures The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established. |
Comprehensive Income, Policy [Policy Text Block] | The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income. |
New Accounting Pronouncements, Policy [Policy Text Block] | The Company will be required to adopt the amended guidance in Accounting Standards Codification Topic 606, “ Revenue from Contracts with Customers Effective February 1, 2015, the Company was required to adopt Accounting Standard Update (“ASU”) No. 2014-08 (“ASU 2014-08”), “ Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective February 1, 2017, the Company will be required to adopt the amended guidance in Accounting Standards Codification Topic 330, “ Inventory: Simplifying the Measurement of Inventory” |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The components of inventory are as follows as of the dates presented (amounts in thousands): July 31, January 31, Ethanol and other finished goods $ 4,268 $ 3,039 Work in process 2,609 2,609 Grain and other raw materials 16,373 12,414 Total $ 23,250 $ 18,062 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At July 31, 2015, the Company has lease agreements, as lessee, for rail cars and a natural gas pipeline. All of the leases are accounted for as operating leases. The following table is a summary of future minimum rentals on such leases (amounts in thousands): Years Ended January 31, Minimum Remainder of 2016 $ 3,694 2017 7,340 2018 6,575 2019 5,845 2020 4,341 Thereafter 6,947 Total $ 34,742 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Financial assets and liabilities measured at fair value on a recurring basis at July 31, 2015 are summarized below (amounts in thousands): Level 1 Level 2 Level 3 Fair Value Derivative financial instruments (1) $ 448 $ — $ — $ 448 Investment in cooperative (2) — — 333 333 Total assets $ 448 $ — $ 333 $ 781 Forward purchase contract liability (3) $ — $ — $ 469 $ 469 Level 1 Level 2 Level 3 Fair Value Investment in cooperative (2) $ — $ — $ 333 $ 333 (1) The derivative financial instruments are included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets. (2) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets. (3) The forward purchase contract liability is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The components of property and equipment are as follows for the periods presented (amounts in thousands): July 31, January 31, Land and improvements $ 21,598 $ 20,844 Buildings and improvements 24,519 27,069 Machinery, equipment and fixtures 231,907 231,422 Construction in progress 2,143 1,290 280,167 280,625 Less: accumulated depreciation (91,111 ) (86,178 ) $ 189,056 $ 194,447 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Other Assets [Table Text Block] | The components of other assets are as follows for the periods presented (amounts in thousands): July 31, January 31, Deposits $ 664 $ 914 Real estate taxes refundable 4,395 4,395 Proceeds from sale of investment held in escrow 2,188 — Other 871 1,057 Total $ 8,118 $ 6,366 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Liabilities [Table Text Block] | The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands): July 31, January 31, Accrued utility charges $ 1,968 $ 3,085 Accrued payroll and related items 2,740 3,798 Accrued real estate taxes 1,959 2,507 Other 1,556 957 Total $ 8,223 $ 10,347 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table summarizes non-vested stock award activity for the three and six months ended July 31, 2015: Non-Vested Weighted- Weighted- Non-Vested at January 31, 2015 — $ — Granted 3,168 200 Forfeited — — Vested — — Non-Vested at July 31, 2015 3,168 $ 200 3 |
Income Per Share from Continu30
Income Per Share from Continuing Operations Attributable to REX Common Shareholders (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles the computation of basic and diluted net income per share from continuing operations for the periods presented (in thousands, except per share amounts): Three Months Ended Three Months Ended July 31, 2015 July 31, 2014 Income Shares Per Income Shares Per Basic income per share from continuing operations attributable to REX common shareholders $ 16,367 7,580 $ 2.16 $ 21,914 8,182 $ 2.68 Effect of restricted stock — — — — Diluted income per share from continuing operations attributable to REX common shareholders $ 16,367 7,580 $ 2.16 $ 21,914 8,182 $ 2.68 Six Months Ended Six Months Ended July 31, 2015 July 31, 2014 Income Shares Per Income Shares Per Basic income per share from continuing operations attributable to REX common shareholders $ 20,294 7,737 $ 2.62 $ 43,653 8,150 $ 5.36 Effect of restricted stock — — — 16 Diluted income per share from continuing operations attributable to REX common shareholders $ 20,294 7,737 $ 2.62 $ 43,653 8,166 $ 5.35 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Investments And Deposits [Abstract] | |
Equity Method Investments [Table Text Block] | The following table summarizes equity method investments at July 31, 2015 and January 31, 2015 (amounts in thousands): Entity Ownership Percentage Carrying Amount July 31, 2015 Carrying Amount January 31, 2015 Big River 10 % $ 41,778 $ 40,188 Patriot (sold June 1, 2015) 27 % — 40,201 Total Equity Method Investments $ 41,778 $ 80,389 |
Schedule Of Income Loss Recognized From Equity Method Investments [Table Text Block] | The following table summarizes income recognized from equity method investments for the periods presented (amounts in thousands): Three Months Ended July 31, Six Months Ended July 31, 2015 2014 2015 2014 Big River $ 2,589 $ 4,720 $ 3,596 $ 9,779 Patriot 2,474 2,525 2,947 5,763 Total $ 5,063 $ 7,245 $ 6,543 $ 15,542 |
Schedule of Financial Information for Equity Method Investments [Table Text Block] | Summarized financial information for each of the Company’s equity method investees is presented in the following table for the periods presented (amounts in thousands): Three Months Ended Three Months Ended Patriot (1) Big River Patriot (1) Big River Net sales and revenue $ 52,375 $ 223,191 $ 79,127 $ 312,843 Gross profit $ 10,605 $ 38,463 $ 11,244 $ 40,476 Income from continuing operations $ 9,321 $ 26,663 $ 9,511 $ 48,618 Net income $ 9,321 $ 26,663 $ 9,511 $ 48,618 Six Months Ended Six Months Ended Patriot (1) Big River Patriot (1) Big River Net sales and revenue $ 115,614 $ 407,998 $ 159,536 $ 593,267 Gross profit $ 14,424 $ 49,267 $ 25,029 $ 124,310 Income from continuing operations $ 11,100 $ 37,040 $ 21,705 $ 100,739 Net income $ 11,100 $ 37,040 $ 21,705 $ 100,739 (1) For Patriot, results are for the two and five month periods ended May 31, 2015 as the Company’s equity interest in Patriot was sold June 1, 2015. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands): Unrecognized tax benefits, January 31, 2015 $ 1,658 Changes for prior years’ tax positions (861 ) Changes for current year tax positions — Unrecognized tax benefits, July 31, 2015 $ 797 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Below is a table reflecting certain items of the Consolidated Condensed Statement of Operations that were reclassified as discontinued operations for the periods presented (amounts in thousands): Three Months Ended Six Months Ended July 31, July 31, 2015 2014 2015 2014 Net sales and revenue $ — $ — $ — $ 12 Cost of sales — 19 — 26 Loss before income taxes — (19 ) — (14 ) Benefit for income taxes — 7 — 5 Loss from discontinued operations, net of tax $ — $ (12 ) $ — $ (9 ) Gain on disposal $ — $ 8 $ — $ 8 Provision for income taxes — (3 ) — (3 ) Gain on disposal of discontinued operations, net of tax $ — $ 5 $ — $ 5 |
Net Sales and Revenue (Tables)
Net Sales and Revenue (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Net Sales And Revenue [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | The following table summarizes sales for each product and service group for the periods presented (amounts in thousands): Three Months Ended Six Months Ended July 31, July 31, Product or Service Category 2015 2014 2015 2014 Ethanol $ 86,990 $ 118,613 $ 165,562 $ 237,719 Dried distillers grains 21,585 25,809 41,836 56,838 Non-food grade corn oil 4,049 4,729 8,008 8,659 Modified distillers grains 696 791 3,001 2,281 Other 160 289 270 659 Total $ 113,480 $ 150,231 $ 218,677 $ 306,156 |
Consolidated Condensed Financ35
Consolidated Condensed Financial Statements (Details) - Jul. 31, 2015 | Total |
Disclosure Text Block [Abstract] | |
Number of Reportable Segments | 1 |
Number of Ethanol Entities Under Ownership Interest | 3 |
Number of Ethanol Entities Under Majority Ownership Interest | 2 |
Accounting Policies (Details)
Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | |
Accounting Policies (Details) [Line Items] | ||||
Interest Paid | $ 0 | $ 496,000 | $ 0 | $ 1,316,000 |
Derivative Settlement on Interest Rate Swap | 0 | $ 376,000 | 0 | 774,000 |
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | 0 | 0 | ||
Liabilities Associated with Forward Contracts | 500,000 | 500,000 | ||
Income Taxes Paid | 19,680,000 | 18,521,000 | ||
Proceeds from Income Tax Refunds | 100,000 | 0 | ||
Unrecognized Tax Benefit | 317,000 | 317,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 480,000 | 480,000 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 24,000 | $ 24,000 | ||
Property, Plant and Equipment, Depreciation Methods | Depreciation is computed using the straight-line method. | |||
Asset Impairment Charges | $ 125,000,000,000 | $ 68,000,000,000 | ||
Number of Ethanol Entities Under Majority Ownership Interest | 2 | 2 | ||
Cost of Sales [Member] | ||||
Accounting Policies (Details) [Line Items] | ||||
Maximum Percentage of Equity Ownership Interest Which May be Considered for Equity Method of Accounting | 20.00% | |||
Minimum [Member] | Building and Building Improvements [Member] | ||||
Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Minimum [Member] | Fixtures And Equipment [Member] | ||||
Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum [Member] | Building and Building Improvements [Member] | ||||
Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Maximum [Member] | Fixtures And Equipment [Member] | ||||
Accounting Policies (Details) [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years |
Accounting Policies (Details) -
Accounting Policies (Details) - Schedule of components of inventory - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Schedule of components of inventory [Abstract] | ||
Ethanol and other finished goods | $ 4,268 | $ 3,039 |
Work in process | 2,609 | 2,609 |
Grain and other raw materials | 16,373 | 12,414 |
Total | $ 23,250 | $ 18,062 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands | Jul. 31, 2015USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Remainder of 2016 | $ 3,694 |
2,017 | 7,340 |
2,018 | 6,575 |
2,019 | 5,845 |
2,020 | 4,341 |
Thereafter | 6,947 |
Total | $ 34,742 |
Fair Value (Details) - Schedule
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 | |
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative financial instruments (1) | [1] | $ 448 | |
Investment in cooperative (2) | [2] | 333 | $ 333 |
Total assets | 781 | ||
Forward purchase contract liability (3) | [3] | 469 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative financial instruments (1) | [1] | $ 448 | |
Investment in cooperative (2) | [2] | ||
Total assets | $ 448 | ||
Forward purchase contract liability (3) | [3] | ||
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative financial instruments (1) | [1] | ||
Investment in cooperative (2) | [2] | ||
Forward purchase contract liability (3) | [3] | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Derivative financial instruments (1) | [1] | ||
Investment in cooperative (2) | [2] | $ 333 | $ 333 |
Total assets | 333 | ||
Forward purchase contract liability (3) | [3] | $ 469 | |
[1] | The derivative financial instruments are included in "Prepaid expenses and other current assets" on the accompanying Consolidated Condensed Balance Sheets. | ||
[2] | The investment in cooperative is included in "Other assets" on the accompanying Consolidated Condensed Balance Sheets. | ||
[3] | The forward purchase contract liability is included in "Accrued expenses and other current liabilities" on the accompanying Consolidated Condensed Balance Sheets. |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of Property Plant and Equipment - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Schedule of Property Plant and Equipment [Abstract] | ||
Land and improvements | $ 21,598 | $ 20,844 |
Buildings and improvements | 24,519 | 27,069 |
Machinery, equipment and fixtures | 231,907 | 231,422 |
Construction in progress | 2,143 | 1,290 |
280,167 | 280,625 | |
Less: accumulated depreciation | (91,111) | (86,178) |
$ 189,056 | $ 194,447 |
Other Assets (Details) - Schedu
Other Assets (Details) - Schedule of Other Assets - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Schedule of Other Assets [Abstract] | ||
Deposits | $ 664 | $ 914 |
Real estate taxes refundable | 4,395 | 4,395 |
Proceeds from sale of investment held in escrow | 2,188 | |
Other | 871 | 1,057 |
Total | $ 8,118 | $ 6,366 |
Accrued Expenses and Other Cu42
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Accrued utility charges | $ 1,968 | $ 3,085 |
Accrued payroll and related items | 2,740 | 3,798 |
Accrued real estate taxes | 1,959 | 2,507 |
Other | 1,556 | 957 |
Total | $ 8,223 | $ 10,347 |
Revolving Lines of Credit (Deta
Revolving Lines of Credit (Details) - Jul. 31, 2015 - USD ($) $ in Millions | Total |
Debt Disclosure [Abstract] | |
Line of Credit, Current | $ 10 |
Line of Credit Facility, Interest Rate Description | LIBOR plus 250 basis points |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Jul. 31, 2015 - USD ($) | Total |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Common Stock, Capital Shares Reserved for Future Issuance | 550,000 |
Unrecognized Compensation Cost Related to Nonvested Restricted Stock | $ 189,000 |
Stock-Based Compensation (Det45
Stock-Based Compensation (Details) - Schedule of Non-Vested Stock Award Activity - Jul. 31, 2015 - $ / shares shares in Thousands, $ / shares in Thousands | Total |
Schedule of Non-Vested Stock Award Activity [Abstract] | |
Non-Vested, Weighted-Average Grant Date Fair Value | $ 200 |
Non-Vested, Weighted-Average Vesting Term | 3 years |
Granted | 3,168 |
Granted | $ 200 |
Non-Vested, Shares | 3,168 |
Income Per Share from Continu46
Income Per Share from Continuing Operations Attributable to REX Common Shareholders (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Basic income per share from continuing operations attributable to REX common shareholders (in Dollars) | $ 16,367 | $ 21,914 | $ 20,294 | $ 43,653 |
Basic income per share from continuing operations attributable to REX common shareholders | 7,580 | 8,182 | 7,737 | 8,150 |
Basic income per share from continuing operations attributable to REX common shareholders (in Dollars per share) | $ 2.16 | $ 2.68 | $ 2.62 | $ 5.36 |
Effect of restricted stock | 16 | |||
Diluted income per share from continuing operations attributable to REX common shareholders (in Dollars) | $ 16,367 | $ 21,914 | $ 20,294 | $ 43,653 |
Diluted income per share from continuing operations attributable to REX common shareholders | 7,580 | 8,182 | 7,737 | 8,166 |
Diluted income per share from continuing operations attributable to REX common shareholders (in Dollars per share) | $ 2.16 | $ 2.68 | $ 2.62 | $ 5.35 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 01, 2015 | Jul. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2015 |
Investments (Details) [Line Items] | ||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ (5,638) | $ (8,592) | ||
Gain (Loss) on Sale of Investments | (10,385) | |||
Other Assets, Noncurrent | 8,118 | $ 6,366 | ||
Related to Estimated Escrow Proceeds [Member] | ||||
Investments (Details) [Line Items] | ||||
Accounts Receivable, Net | 2,200 | |||
Other Assets, Noncurrent | 2,200 | |||
Money Market Funds [Member] | ||||
Investments (Details) [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Big River [Member] | ||||
Investments (Details) [Line Items] | ||||
Retained Earnings, Undistributed Earnings from Equity Method Investees | 21,800 | |||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | 335,500 | 322,100 | ||
Patriot And Big River [Member] | ||||
Investments (Details) [Line Items] | ||||
Retained Earnings, Undistributed Earnings from Equity Method Investees | 41,900 | |||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 5,600 | $ 8,600 | ||
Patriot [Member] | ||||
Investments (Details) [Line Items] | ||||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | $ 99,800 | |||
Cash Received at Closing, Merger Consideration | $ 45,500 | |||
Total Merger Consideration | 196,000 | |||
Gain (Loss) on Sale of Investments | $ 10,400 |
Investments (Details) - Schedul
Investments (Details) - Schedule of Equity Method Investments - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Total Equity Method Investments, Carrying Amount | $ 41,778 | $ 80,389 |
Big River [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Equity Method Investments, Ownership Percentage | 10.00% | |
Total Equity Method Investments, Carrying Amount | $ 41,778 | 40,188 |
Patriot [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Equity Method Investments, Ownership Percentage | 27.00% | |
Total Equity Method Investments, Carrying Amount | $ 40,201 |
Investments (Details) - Sched49
Investments (Details) - Schedule of Income Recognized from Equity Method Investments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Investments (Details) - Schedule of Income Recognized from Equity Method Investments [Line Items] | ||||
Income From Equity Method Investments | $ 5,063 | $ 7,245 | $ 6,543 | $ 15,542 |
Big River [Member] | ||||
Investments (Details) - Schedule of Income Recognized from Equity Method Investments [Line Items] | ||||
Income From Equity Method Investments | 2,589 | 4,720 | 3,596 | 9,779 |
Patriot [Member] | ||||
Investments (Details) - Schedule of Income Recognized from Equity Method Investments [Line Items] | ||||
Income From Equity Method Investments | $ 2,474 | $ 2,525 | $ 2,947 | $ 5,763 |
Investments (Details) - Sched50
Investments (Details) - Schedule of Financial information For Equity Method Investment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | ||
Patriot [Member] | |||||
Investments (Details) - Schedule of Financial information For Equity Method Investment [Line Items] | |||||
Net sales and revenue | [1] | $ 52,375 | $ 79,127 | $ 115,614 | $ 159,536 |
Gross profit | [1] | 10,605 | 11,244 | 14,424 | 25,029 |
Income from continuing operations | [1] | 9,321 | 9,511 | 11,100 | 21,705 |
Net income | [1] | 9,321 | 9,511 | 11,100 | 21,705 |
Big River [Member] | |||||
Investments (Details) - Schedule of Financial information For Equity Method Investment [Line Items] | |||||
Net sales and revenue | 223,191 | 312,843 | 407,998 | 593,267 | |
Gross profit | 38,463 | 40,476 | 49,267 | 124,310 | |
Income from continuing operations | 26,663 | 48,618 | 37,040 | 100,739 | |
Net income | $ 26,663 | $ 48,618 | $ 37,040 | $ 100,739 | |
[1] | For Patriot, results are for the two and five month periods ended May 31, 2015 as the Company's equity interest in Patriot was sold June 1, 2015. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | 31.70% | 34.40% | 32.40% | 35.40% |
Effective Income Tax Rate Reconciliation, Deduction, Percent | 3.00% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward $ in Thousands | 6 Months Ended |
Jul. 31, 2015USD ($) | |
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract] | |
Unrecognized tax benefits, January 31, 2015 | $ 1,658 |
Changes for prior years’ tax positions | (861) |
Unrecognized tax benefits, July 31, 2015 | $ 797 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Schedule of Disposal Groups Including Discontinued Operations - Jul. 31, 2014 - USD ($) $ in Thousands | Total | Total |
Schedule of Disposal Groups Including Discontinued Operations [Abstract] | ||
Net sales and revenue | $ 12 | |
Cost of sales | $ 19 | 26 |
Loss before income taxes | (19) | (14) |
Benefit for income taxes | 7 | 5 |
Loss from discontinued operations, net of tax | (12) | (9) |
Gain on disposal | 8 | 8 |
Provision for income taxes | (3) | (3) |
Gain on disposal of discontinued operations, net of tax | $ 5 | $ 5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Jul. 31, 2015 - One Earth Energy And Nu Gen Energy [Member] lb in Millions, gal in Millions, bu in Millions | Tlbbugal |
Commitments and Contingencies (Details) [Line Items] | |
Quantity of Bushels under Forward Purchase Contract | bu | 10.8 |
Quantity of Ethanol under Sales Commitment | gal | 53.7 |
Quantity of Distillers Grains Under Sales Commitment | T | 84,000 |
Quantity of Non-food Grade Corn Oil Under Sales Commitments | 6.4 |
Supply Commitment Expected Period Of Delivery | They expect to deliver the ethanol, distillers grains and non-food grade corn oil through November 2015. |
Net Sales and Revenue (Details)
Net Sales and Revenue (Details) - Schedule of Net Sales and Revenue for Each Product and Service Group - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Revenue from External Customer [Line Items] | ||||
Product or Service | $ 113,480 | $ 150,231 | $ 218,677 | $ 306,156 |
Ethanol [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Product or Service | 86,990 | 118,613 | 165,562 | 237,719 |
Dried distillers grains [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Product or Service | 21,585 | 25,809 | 41,836 | 56,838 |
Non-food grade corn oil [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Product or Service | 4,049 | 4,729 | 8,008 | 8,659 |
Modified distillers grains [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Product or Service | 696 | 791 | 3,001 | 2,281 |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Product or Service | $ 160 | $ 289 | $ 270 | $ 659 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
One Earth Energy And Nu Gen Energy [Member] | ||||
Related-Party Transactions (Details) [Line Items] | ||||
Costs and Expenses, Related Party | $ 38 | $ 40.4 | $ 76.3 | $ 85.2 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 31, 2015 | Aug. 26, 2015 | |
Subsequent Events [Abstract] | ||
Stock Repurchased During Period, Shares | 233,243 | |
Stock Repurchased During Period, Value (in Dollars) | $ 11.6 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 500,000 |