Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 31, 2018 | Sep. 04, 2018 | |
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 | 6,351,739 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 73,761 | $ 190,988 |
Short-term investments | 111,969 | |
Restricted cash | 778 | 354 |
Accounts receivable | 14,648 | 12,913 |
Inventory | 25,171 | 20,755 |
Refundable income taxes | 8,371 | 6,612 |
Prepaid expenses and other | 7,716 | 7,412 |
Total current assets | 242,414 | 239,034 |
Property and equipment, net | 190,823 | 197,827 |
Other assets | 7,816 | 7,454 |
Equity method investments | 35,117 | 34,549 |
Total assets | 476,170 | 478,864 |
Current liabilities: | ||
Accounts payable, trade | 11,595 | 8,149 |
Accrued expenses and other current liabilities | 10,555 | 13,716 |
Total current liabilities | 22,150 | 21,865 |
Long-term liabilities: | ||
Deferred taxes | 13,768 | 21,706 |
Other long-term liabilities | 4,004 | 3,367 |
Total long-term liabilities | 17,772 | 25,073 |
REX shareholders’ equity: | ||
Common stock | 299 | 299 |
Paid-in capital | 148,212 | 146,923 |
Retained earnings | 566,626 | 547,913 |
Treasury stock | (329,999) | (313,643) |
Total REX shareholders’ equity | 385,138 | 381,492 |
Noncontrolling interests | 51,110 | 50,434 |
Total equity | 436,248 | 431,926 |
Total liabilities and equity | $ 476,170 | $ 478,864 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
Net sales and revenue | $ 128,757 | $ 108,744 | $ 249,577 | $ 221,887 |
Cost of sales | 119,358 | 97,963 | 229,327 | 198,617 |
Gross profit | 9,399 | 10,781 | 20,250 | 23,270 |
Selling, general and administrative expenses | (6,110) | (4,779) | (10,663) | (10,181) |
Equity in income of unconsolidated affiliates | 874 | 137 | 1,571 | 837 |
Interest and other income | 696 | 334 | 1,350 | 549 |
Income before income taxes | 4,859 | 6,473 | 12,508 | 14,475 |
Benefit (provision) for income taxes | 5,631 | (2,302) | 8,334 | (4,692) |
Net income | 10,490 | 4,171 | 20,842 | 9,783 |
Net income attributable to noncontrolling interests | (1,273) | (1,230) | (2,129) | (2,298) |
Net income attributable to REX common shareholders | $ 9,217 | $ 2,941 | $ 18,713 | $ 7,485 |
Weighted average shares outstanding – basic and diluted (in Shares) | 6,466 | 6,593 | 6,517 | 6,592 |
Basic and diluted net income per share attributable to REX common shareholders (in Dollars per share) | $ 1.43 | $ 0.45 | $ 2.87 | $ 1.14 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total | Total |
Balance, Beginning of Period at Jan. 31, 2017 | $ 299 | $ (313,838) | $ 145,767 | $ 508,207 | $ 47,839 | $ 388,274 | |
Balance, Beginning of Period (in Shares) at Jan. 31, 2017 | 29,853 | 23,292 | |||||
Net income | 7,485 | 2,298 | 9,783 | $ 9,783 | |||
Issuance of equity awards and stock based compensation expense | $ 180 | 1,084 | 1,264 | ||||
Issuance of equity awards and stock based compensation expense (in Shares) | (5) | ||||||
Noncontrolling interests distribution and other | (1,725) | (1,725) | (1,725) | ||||
Balance, End of Period at Jul. 31, 2017 | $ 299 | $ (313,658) | 146,851 | 515,692 | 48,412 | 397,596 | |
Balance, End of Period (in Shares) at Jul. 31, 2017 | 29,853 | 23,287 | |||||
Balance, Beginning of Period at Jan. 31, 2018 | $ 299 | $ (313,643) | 146,923 | 547,913 | 50,434 | 431,926 | 431,926 |
Balance, Beginning of Period (in Shares) at Jan. 31, 2018 | 29,853 | 23,287 | |||||
Net income | 18,713 | 2,129 | 20,842 | 20,842 | |||
Treasury stock acquired | $ (16,648) | (16,648) | |||||
Treasury stock acquired (in Shares) | 228 | ||||||
Capital contributions | 246 | 246 | 246 | ||||
Issuance of equity awards and stock based compensation expense | $ 292 | 1,289 | 1,581 | ||||
Issuance of equity awards and stock based compensation expense (in Shares) | (13) | ||||||
Noncontrolling interests distribution and other | (1,699) | (1,699) | (1,699) | ||||
Balance, End of Period at Jul. 31, 2018 | $ 299 | $ (329,999) | $ 148,212 | $ 566,626 | $ 51,110 | $ 436,248 | $ 436,248 |
Balance, End of Period (in Shares) at Jul. 31, 2018 | 29,853 | 23,502 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 20,842 | $ 9,783 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 12,033 | 9,955 |
Income from equity method investments | (1,571) | (837) |
Dividends received from equity method investee | 1,003 | 2,005 |
Accrued interest income | (815) | |
Deferred income tax | (7,938) | 537 |
Stock based compensation expense | 443 | 350 |
Loss (gain) on disposal of property and equipment | 104 | (13) |
Loss on sale of investment | 13 | |
Changes in assets and liabilities: | ||
Accounts receivable | (1,735) | 886 |
Inventories | (4,416) | (5,034) |
Other assets | (2,443) | (953) |
Accounts payable, trade | 4,002 | 1,678 |
Other liabilities | (1,262) | (4,828) |
Net cash provided by operating activities | 18,247 | 13,542 |
Cash flows from investing activities: | ||
Capital expenditures | (5,813) | (14,366) |
Purchase of short-term investments | (111,154) | |
Other | 18 | 219 |
Net cash used in investing activities | (116,949) | (14,147) |
Cash flows from financing activities: | ||
Treasury stock acquired | (16,648) | |
Dividend payments to and purchases of stock from noncontrolling interests holders | (1,699) | (1,725) |
Capital contributions from minority investor | 246 | |
Net cash used in financing activities | (18,101) | (1,725) |
Net decrease in cash, cash equivalents and restricted cash | (116,803) | (2,330) |
Cash, cash equivalents and restricted cash, beginning of period | 191,342 | 188,706 |
Cash, cash equivalents and restricted cash, end of period | 74,539 | 186,376 |
Non cash investing activities – Accrued capital expenditures | 469 | 744 |
Non cash financing activities – Stock awards accrued | 335 | 281 |
Non cash financing activities – Stock awards issued | 1,473 | 1,195 |
Reconciliation of total cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 73,761 | 185,997 |
Restricted cash | $ 778 | $ 379 |
Consolidated Condensed Financia
Consolidated Condensed Financial Statements | 6 Months Ended |
Jul. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only 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, 2018 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, 2018 (fiscal year 2017). 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, 2018. 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 consolidates the results of its four majority owned subsidiaries. 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 as One Earth has a fiscal year end of December 31. Nature of Operations – In the third quarter of fiscal year 2017, the Company began reporting the results of its refined coal operation as a new segment as a result of the August 10, 2017 acquisition of an entity that operates a refined coal facility (see Note 4). Prior to the acquisition, the Company had one reportable segment, ethanol. Beginning with the third quarter of fiscal year 2017, the Company has two reportable segments: i) ethanol and by-products and ii) refined coal. Within the ethanol and by-products segment, the Company has equity investments in three ethanol limited liability companies, two of which are majority ownership interests. Within the refined coal segment, the Company has a majority equity interest in one refined coal limited liability company. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jul. 31, 2018 | |
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 2017 Annual Report on Form 10-K and the adoption of new accounting standards described at the end of this footnote. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less. Revenue Recognition For ethanol and by-products segment sales, the Company recognizes sales of ethanol, distillers grains and non-food grade corn oil when obligations under the terms of the respective contracts with customers are satisfied; this occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. For refined coal segment sales, the Company recognizes sales of refined coal when obligations under the term of the contract with its customer are satisfied; this occurs when title and control of the product transfers to its customer, generally upon the coal leaving the refined coal plant. Refined coal sales are recorded net of the cost of coal as the Company purchases the coal feedstock from the customer to which the processed refined coal is sold. 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 compensations 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. Financial Instruments Certain 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 Accounting Standards Codification (“ASC”) 815, “ Derivatives and Hedging The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting. Income Taxes The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual effective tax rate as adjusted for discrete items impacting the interim periods. The Company’s estimated annual effective tax rate includes the impact of its refined coal operation and the expected federal income tax credits to be earned, beginning August 10, 2017, the date of the refined coal acquisition (see Note 4). 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 $0.5 million and approximately $6.5 million during the six months ended July 31, 2018 and 2017, respectively. The company did not receive any refunds of income taxes during the six months ended July 31, 2018 and 2017. As of July 31, 2018 and January 31, 2018, total unrecognized tax benefits were approximately $2.8 million and $2.0 million, respectively. Accrued penalties and interest were approximately $0.4 million at July 31, 2018 and January 31, 2018. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $2.8 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. 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 and refined coal. 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 significant permanent write-downs of inventory at July 31, 2018 and January 31, 2018. 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 $ 8,193 $ 8,402 Work in process 2,975 2,824 Grain and other raw materials 14,003 9,529 Total $ 25,171 $ 20,755 Property and Equipment Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 5 to 40 years for buildings and improvements, and 2 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). Investments The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “ Investments-Equity Method and Joint Ventures 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. Short-term investments are considered held to maturity, and, therefore are carried at amortized historical cost. 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 Effective February 1, 2018, the Company adopted the amended guidance in ASC Topic 606 “ Revenue from Contracts with Customers Effective February 1, 2018, the Company prospectively adopted Accounting Standards Update “ASU” 2016-15 “ Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments Effective February 1, 2018, the Company adopted ASU 2016-18 “ Statement of Cash Flows (Topic 230), Restricted Cash In February 2016, the FASB issued ASU 2016-02 “Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet as a right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Company will be required to adopt this standard effective February 1, 2019. The related leases are currently accounted for as operating leases (see Note 5). This standard requires a modified retrospective transition approach and allows for early adoption. In July 2018, FASB issued Accounting Standards Update, Leases (Topic 842): Targeted Improvements The Company has not completed its analysis of the effect of adopting this guidance but it does expect the adoption of this guidance to have a material impact on its Consolidated Balance Sheet related to the right-of-use asset and lease obligation liability to be recognized upon adoption of this guidance in addition to requiring expanded disclosures in the Company’s consolidated financial statements. The Company expects to complete its analysis of the impact of adopting this guidance during the second half of fiscal year 2018. |
NET SALES AND REVENUE
NET SALES AND REVENUE | 6 Months Ended |
Jul. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 3. Net Sales and Revenue On February 1, 2018, the Company adopted the amended guidance in ASC Topic 606, “ Revenue from Contracts with Customers The Company recognizes sales of products when obligations under the terms of the respective contracts with customers are satisfied. This occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods. Sales, value add and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue. The majority of the Company’s sales have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not generally include a significant financing component. The Company has not historically, and does not intend to, enter into sales contracts in which payment is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue. The Company elected, pursuant to the new accounting guidance, to recognize the cost for shipping and handling activities that occur after the customer obtains control of the promised goods as fulfillment activities and not when performance obligations are met. See Note 17 for disaggregation of net sales and revenue by operating segment and by product. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jul. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 4. Business Combinations On August 10, 2017, the Company, through a 95.35% owned subsidiary, purchased the entire ownership interest of an entity that owns a refined coal facility. The Company began operating its refined coal facility immediately after the acquisition. The Company expects that the revenues from the sale of refined coal produced in the facility will be subsidized by federal production tax credits through November 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the Internal Revenue Code. The impact on the combined results of operations of the Company and the refined coal entity, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2017, is as follows: Cost of sales would have increased by approximately $692,000 and approximately $1,385,000 for the quarter and six months ended July 31, 2017, respectively. This pro forma increase is a result of increased depreciation expense as if the refined coal entity was consolidated during the six months ended July 31, 2017. Selling, general and administrative expenses would have increased by approximately $2,510,000 for the six months ended July 31, 2017. These pro forma adjustments are a result of transaction costs occurring (on a pro forma basis) during the first quarter of fiscal year 2017. The provision for income taxes would have decreased by approximately $263,000 for the quarter ended July 31, 2017 and approximately $1,480,000 for the six months ended July 31, 2017. Net income attributable to REX common shareholders would have decreased by approximately $409,000 and approximately $2,303,000 for the quarter and six months ended July 31, 2017, respectively. Basic and diluted net income per share attributable to REX common shareholders would have decreased by approximately $0.06 per share and approximately $0.35 for the quarter and six months ended July 31, 2017, respectively. The results of the Company’s refined coal operations (approximately $0.8 million of net sales and revenue and approximately $9.9 million of net income attributable to REX common shareholders, including the income tax benefit of estimated Section 45 credits to be earned) have been included in the consolidated financial statements subsequent to the acquisition date and are included in the Company’s refined coal segment. The purchase price was $12,049,000, which was paid in cash. The acquisition was recorded by allocating the total purchase price to the assets acquired, based on their estimated fair values at the acquisition date. The purchase price allocation is based on the final fair value assessment results of a valuation analysis. The income approach was used to determine the fair values of assets acquired. The following table summarizes the estimated fair values of the assets acquired at the acquisition date (amounts in thousands): Inventory $ 49 Property, plant and equipment 12,000 Total assets acquired and purchase price $ 12,049 Transaction costs totaled approximately $2.5 million during fiscal year 2017. The Company does not expect to incur additional transaction costs from this acquisition. |
LEASES
LEASES | 6 Months Ended |
Jul. 31, 2018 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Note 5. Leases At July 31, 2018, 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 2019 $ 3,919 2020 6,873 2021 4,817 2022 4,164 2023 2,582 Thereafter 5,532 Total $ 27,887 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jul. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 6. 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 certain cash equivalents, investments and derivative instruments at fair value. The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate. To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at July 31, 2018 are summarized below (amounts in thousands): Level 1 Level 2 Level 3 Fair Value Investment in cooperative (2) $ — $ — $ 333 $ 333 Total assets $ — $ — $ 333 $ 333 Commodity futures (3) $ — $ 152 $ — $ 152 Forward purchase contract liability (4) — 1,724 — 1,724 Total liabilities $ — $ 1,876 $ — $ 1,876 Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2018 are summarized below (amounts in thousands): Level 1 Level 2 Level 3 Fair Value Forward purchase contracts asset (1) $ — $ 72 $ — $ 72 Investment in cooperative (2) — — 333 333 Total assets $ — $ 72 $ 333 $ 405 Commodity futures (3) $ — $ 87 $ — $ 87 Forward purchase contract liability (4) — 34 — 34 Total liabilities $ — $ 121 $ — $ 121 (1) The forward purchase contract asset is 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) Commodity futures are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets. (4) 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 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. There were no assets measured at fair value on a non-recurring basis at July 31, 2018 or January 31, 2018. As discussed in Note 4, the Company estimated the fair values of refined coal assets acquired using the income approach. This estimated fair value is a level 3 measurement. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jul. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 7. 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 $ 21,095 $ 21,074 Buildings and improvements 23,598 23,272 Machinery, equipment and fixtures 293,509 288,832 Construction in progress 2,589 3,155 340,791 336,333 Less: accumulated depreciation (149,968 ) (138,506 ) Total $ 190,823 $ 197,827 |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jul. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | Note 8. Other Assets The components of other assets are as follows for the periods presented (amounts in thousands): July 31, January 31, Real estate taxes refundable $ 7,099 $ 6,719 Deposits — 5 Other 717 730 Total $ 7,816 $ 7,454 Real estate taxes refundable represent amounts due One Earth associated with refunds of previously paid taxes in connection with a tax increment financing arrangement with local taxing authorities. Deposits are with utility and other vendors. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jul. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Note 9. 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 payroll and related items $ 1,543 $ 5,108 Accrued utility charges 2,162 2,639 Accrued real estate taxes 1,570 2,678 Accrued income taxes 47 61 Other 5,233 3,230 Total $ 10,555 $ 13,716 |
REVOLVING LINES OF CREDIT
REVOLVING LINES OF CREDIT | 6 Months Ended |
Jul. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 10. Revolving Lines of Credit Effective April 1, 2016, One Earth and NuGen Energy, LLC (“NuGen”) each entered into $10.0 million revolving loan facilities that mature June 1, 2019 as extended. Neither One Earth nor NuGen had outstanding borrowings on the revolving loans during the six months ended July 31, 2018 and 2017. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 11. Derivative Financial Instruments The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn) and sale (ethanol, distillers grains and non-food grade corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques. The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value July 31, January 31, July 31, January 31, Commodity futures (1) $ — $ — $ 152 $ 87 Forward purchase contracts (2) — 72 1,724 34 Total $ — $ 72 $ 1,876 $ 121 (1) Commodity futures are included in accrued expenses and other current liabilities. These contracts are short/sell positions for approximately 4.9 million and 2.5 million bushels of corn at July 31, 2018 and January 31, 2018, respectively. (2) Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 11.5 million and 11.7 million bushels of corn at July 31, 2018 and January 31, 2018, respectively. As of July 31, 2018, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements. The Company’s accounting policy is to offset positions and amounts owed or owing with the same counterparty. As of July 31, 2018, the gross positions of the enforceable master netting agreements are not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparty may require collateral to secure the Company’s derivative contract position. As of July 31, 2018, the Company was required to maintain collateral in the amount of approximately $778,000 to secure the Company’s derivative position. See Note 6 which contains fair value information related to derivative financial instruments. (Losses) or gains on the Company’s derivative financial instruments of approximately $(405,000) and approximately $853,000 for the second quarters of fiscal years 2018 and 2017, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations. Gains on the Company’s derivative financial instruments of approximately $160,000 and approximately $977,000 for the first six months of fiscal years 2018 and 2017, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jul. 31, 2018 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | Note 12. Investments The following table summarizes the Company’s equity method investment at July 31, 2018 and January 31, 2018 (dollars in thousands): Entity Ownership Percentage Carrying Amount Carrying Amount Big River 10.3% $ 35,117 $ 34,549 Undistributed earnings of the Company’s equity method investee totaled approximately $15.1 million and $14.5 million at July 31, 2018 and January 31, 2018, respectively. The Company received dividends from its equity method investee of approximately $1.0 million and approximately $2.0 million during the first six months of fiscal years 2018 and 2017, respectively. Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net sales and revenue $ 212,092 $ 212,070 $ 404,035 $ 404,569 Gross profit $ 10,648 $ 11,582 $ 24,339 $ 19,764 Income from continuing operations $ 8,468 $ 1,411 $ 15,232 $ 8,618 Net income $ 8,468 $ 1,411 $ 15,232 $ 8,618 The following table summarizes the Company’s held-to-maturity securities at July 31, 2018 (dollars in thousands): Amortized Gross Unrealized Estimated United States Treasury Bills $ 111,969 $ 36 $ 111,933 As of July 31, 2018, the contractual maturities of these investments were less than one year. Yield to maturity rates vary between 1.6% and 1.8%. The Company had no held-to-maturity investments as of January 31, 2018. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 6 Months Ended |
Jul. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Note 13. Employee Benefits The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, 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. Since plan inception, the Company has only granted restricted stock awards. 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 liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At July 31, 2018, 489,430 shares remain available for issuance under the Plan. As a component of their compensation, restricted stock has been granted to directors at the closing market price of REX common stock on the predetermined grant date. In addition one third of executives’ incentive compensation is payable by an award of restricted stock based on the then closing market price of REX common stock on the predetermined grant date. At July 31, 2018 and January 31, 2018, unrecognized compensation cost related to nonvested restricted stock was approximately $275,000 and $233,000, respectively. The following tables summarize non-vested restricted stock award activity for the six months ended July 31, 2018 and 2017: Six Months Ended July 31, 2018 Weighted Weighted Average Grant Average Remaining Non-Vested Date Fair Value Vesting Term Shares (000’s) (in years) Non-Vested at January 31, 2018 29,415 $ 2,275 2 Granted 21,745 1,622 Forfeited — — Vested 13,124 963 Non-Vested at July 31, 2018 38,036 $ 2,934 2 Six Months Ended July 31, 2017 Weighted Weighted Average Grant Average Remaining Non-Vested Date Fair Value Vesting Term Shares (000’s) (in years) Non-Vested at January 31, 2017 23,350 $ 1,386 2 Granted 14,156 1,370 Forfeited — — Vested 8,091 481 Non-Vested at July 31, 2017 29,415 2,275 2 The above tables include 34,148 and 24,711 non-vested shares at July 31, 2018 and 2017, respectively, which are included in the number of weighted average shares outstanding used to determine basic and diluted earnings per share attributable to REX common shareholders. Such shares are treated, for accounting purposes, as being fully vested at the grant date as they were granted to recipients who were retirement eligible at the time of grant. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 14 . Income Taxes The effective tax rate on consolidated pre-tax income was (115.9)% and 35.6% for the three months ended July 31, 2018 and 2017, respectively. The effective tax rate on consolidated pre-tax income was (66.6) % and 32.4% for the six months ended July 31, 2018 and 2017, respectively The fluctuation in the rate results primarily from the production tax credits the Company expects to receive associated with its refined coal segment, lower tax rates as a result of the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) and expected research and experimentation federal tax credits to be claimed and earned in fiscal year 2018. The Company records its tax provision/benefit based on an estimated annual effective rate adjusted for items recorded discretely. The estimated annual effective tax rate includes the impact of the refined coal operation and the expected federal income tax credits to be earned in fiscal year 2018. The Tax Act signed into law on December 22, 2017, reduced the federal corporate income tax rate to 21% effective January 1, 2018. The Tax Act also made numerous other changes to the U.S. tax code, including, but not limited to, permitting full expensing of qualified property acquired after September 27, 2017, expanding prior limitations of the deductibility of certain executive compensation and eliminating the corporate alternative minimum tax. The SEC issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. In recognition of the inherent complexities associated with accounting for the effects of the Tax Act, SAB 118 provides a measurement period of up to one year from enactment of the Tax Act for companies to complete the accounting for the tax effects of the Tax Act. Although the Company’s accounting for the tax effects of the Tax Act are not yet complete, at January 31, 2018, the Company made a preliminary estimate of the effect of the tax rate reduction on the existing deferred tax balances and recorded a tax benefit of approximately $14,362,000 to remeasure the deferred tax liability at the new 21% rate. The Company will continue to refine the calculation as additional analysis is completed, which will include a final determination of the deferred tax balances at January 31, 2018 after the Company’s federal income tax return is filed, and as further guidance is provided by the Internal Revenue Service. Through its refined coal operation, the Company earns production tax credits pursuant to IRC Section 45. The credits can be used to reduce future income tax liabilities for up to 20 years. The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2013 and prior. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands): Six Months Ended 2018 2017 Unrecognized tax benefits, beginning of period $ 2,325 $ 2,096 Changes for prior years’ tax positions 832 164 Changes for current year tax positions — — Unrecognized tax benefits, end of period $ 3,157 $ 2,260 The Company expects to claim research and experimentation credits in the current year and certain prior years. In connection with this, the Company has increased the amount of unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 15. 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 adverse effect on the Company’s Consolidated Condensed Financial Statements. One Earth and NuGen have combined forward purchase contracts for approximately 11.5 million bushels of corn, the principal raw material for their ethanol plants. They expect to take delivery of the grain through December 2018. One Earth and NuGen have combined forward purchase contracts for approximately 1,936,000 Mmbtu (million british thermal units) of natural gas. They expect to take delivery of the natural gas through March 2019. One Earth and NuGen have combined sales commitments for approximately 17.9 million gallons of ethanol, approximately 62,000 tons of distillers grains and approximately 10.2 million pounds of non-food grade corn oil. They expect to deliver a majority of the ethanol, distillers grains and non-food grade corn oil through September 2018. The refined coal entity has various agreements (site license, operating agreements, etc.) containing payment terms based upon production of refined coal under which the Company is required to pay various fees. These fees totaled approximately $5.1 million in the first six months of fiscal year 2018. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jul. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 16. Related-Party Transactions During the second quarters of fiscal years 2018 and 2017, One Earth and NuGen purchased approximately $45.2 million and approximately $36.5 million, respectively, of corn from minority equity investors and board members of those subsidiaries. Such purchases totaled approximately $91.4 million and approximately $78.7 million for the six months ended July 31, 2018 and 2017, respectively. One Earth purchases all of its corn from an equity investor which acts as a grain origination agent for One Earth. The Company had amounts payable to related parties for corn purchases of approximately $1.4 million and $0.9 million at July 31, 2018 and January 31, 2018, respectively. During the three months and six months ended July 31, 2018, the Company recognized commission expense of approximately $0.2 million and $0.3 million, respectively, payable to the minority investor in the refined coal entity. The Company did not recognize any commission expense during the first six months of fiscal year 2017. The commission expense is associated with the refined coal acquisition. The Company had accrued liabilities and accounts payable related to the commission expense of approximately $1.5 million at July 31, 2018 and January 31, 2018, respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 17. Segment Reporting In the third quarter of fiscal year 2017, the Company began reporting the results of its refined coal operations as a new segment as a result of the refined coal acquisition (see Note 4.) The Company has two segments: ethanol and by-products and refined coal. Historical amounts have been reclassified to conform to the current year segment reporting presentation. The Company evaluates the performance of each reportable segment based on net income attributable to REX common shareholders. The following table summarizes segment and other results and assets (amounts in thousands): Three Months Ended Six Months Ended July 31, July 31, 2018 2017 2018 2017 Net sales and revenue: Ethanol and by-products $ 128,491 $ 108,744 $ 249,171 $ 221,887 Refined coal 1 266 — 406 — Total net sales and revenue $ 128,757 $ 108,744 $ 249,577 $ 221,887 1 Segment gross profit (loss): Ethanol and by-products $ 13,669 $ 10,781 $ 27,215 $ 23,270 Refined coal (4,270 ) — (6,965 ) — Total gross profit $ 9,399 $ 10,781 $ 20,250 $ 23,270 Income (loss) before income taxes: Ethanol and by-products $ 10,077 $ 7,330 $ 21,086 $ 16,253 Refined coal (4,788 ) — (7,647 ) — Corporate and other (430 ) (857 ) (931 ) (1,778 ) Total income (loss) before income taxes $ 4,859 $ 6,473 $ 12,508 $ 14,475 Benefit (provision) for income taxes: Ethanol and by-products $ (2,029 ) $ (2,675 ) $ (3,449 ) $ (5,380 ) Refined coal 7,597 — 11,596 — Corporate and other 63 373 187 688 Total benefit (provision) for income taxes $ 5,631 $ (2,302 ) $ 8,334 $ (4,692 ) Segment profit (loss): Ethanol and by-products $ 6,561 $ 3,419 $ 15,150 $ 8,561 Refined coal 3,018 — 4,289 — Corporate and other (362 ) (478 ) (726 ) (1,076 ) Net income attributable to REX common shareholders $ 9,217 $ 2,941 $ 18,713 $ 7,485 Assets: July 31, January 31, Ethanol and by-products $ 402,728 $ 384,997 Refined coal 10,052 12,165 Corporate and other 63,390 81,702 Total assets $ 476,170 $ 478,864 Three Months Ended Six Months Ended 2018 2017 2018 2017 Sales of products, ethanol and by-products segment: Ethanol $ 100,289 $ 88,785 $ 192,182 $ 180,257 Dried distillers grains 21,059 13,472 41,143 28,622 Non-food grade corn oil 5,075 4,726 10,055 9,318 Modified distillers grains 2,043 1,748 5,760 3,667 Other 25 13 31 23 Total $ 128,491 $ 108,744 $ 249,171 $ 221,887 Sales of products, refined coal segment: Refined coal $ 266 $ — $ 406 $ — |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jul. 31, 2018 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition For ethanol and by-products segment sales, the Company recognizes sales of ethanol, distillers grains and non-food grade corn oil when obligations under the terms of the respective contracts with customers are satisfied; this occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. For refined coal segment sales, the Company recognizes sales of refined coal when obligations under the term of the contract with its customer are satisfied; this occurs when title and control of the product transfers to its customer, generally upon the coal leaving the refined coal plant. Refined coal sales are recorded net of the cost of coal as the Company purchases the coal feedstock from the customer to which the processed refined coal is sold. |
Cost of Sales, Policy [Policy Text Block] | 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 compensations costs, and general facility overhead charges. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | 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. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments Certain 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 Accounting Standards Codification (“ASC”) 815, “ Derivatives and Hedging The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual effective tax rate as adjusted for discrete items impacting the interim periods. The Company’s estimated annual effective tax rate includes the impact of its refined coal operation and the expected federal income tax credits to be earned, beginning August 10, 2017, the date of the refined coal acquisition (see Note 4). 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 $0.5 million and approximately $6.5 million during the six months ended July 31, 2018 and 2017, respectively. The company did not receive any refunds of income taxes during the six months ended July 31, 2018 and 2017. As of July 31, 2018 and January 31, 2018, total unrecognized tax benefits were approximately $2.8 million and $2.0 million, respectively. Accrued penalties and interest were approximately $0.4 million at July 31, 2018 and January 31, 2018. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $2.8 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. |
Inventory, Policy [Policy Text Block] | 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 and refined coal. 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 significant permanent write-downs of inventory at July 31, 2018 and January 31, 2018. 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 $ 8,193 $ 8,402 Work in process 2,975 2,824 Grain and other raw materials 14,003 9,529 Total $ 25,171 $ 20,755 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 5 to 40 years for buildings and improvements, and 2 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). |
Investment, Policy [Policy Text Block] | Investments The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “ Investments-Equity Method and Joint Ventures 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. Short-term investments are considered held to maturity, and, therefore are carried at amortized historical cost. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income. |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Changes and Recently Issued Accounting Standards Effective February 1, 2018, the Company adopted the amended guidance in ASC Topic 606 “ Revenue from Contracts with Customers Effective February 1, 2018, the Company prospectively adopted Accounting Standards Update “ASU” 2016-15 “ Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments Effective February 1, 2018, the Company adopted ASU 2016-18 “ Statement of Cash Flows (Topic 230), Restricted Cash In February 2016, the FASB issued ASU 2016-02 “Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet as a right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Company will be required to adopt this standard effective February 1, 2019. The related leases are currently accounted for as operating leases (see Note 5). This standard requires a modified retrospective transition approach and allows for early adoption. In July 2018, FASB issued Accounting Standards Update, Leases (Topic 842): Targeted Improvements The Company has not completed its analysis of the effect of adopting this guidance but it does expect the adoption of this guidance to have a material impact on its Consolidated Balance Sheet related to the right-of-use asset and lease obligation liability to be recognized upon adoption of this guidance in addition to requiring expanded disclosures in the Company’s consolidated financial statements. The Company expects to complete its analysis of the impact of adopting this guidance during the second half of fiscal year 2018. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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 $ 8,193 $ 8,402 Work in process 2,975 2,824 Grain and other raw materials 14,003 9,529 Total $ 25,171 $ 20,755 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired at the acquisition date (amounts in thousands): Inventory $ 49 Property, plant and equipment 12,000 Total assets acquired and purchase price $ 12,049 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At July 31, 2018, 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 2019 $ 3,919 2020 6,873 2021 4,817 2022 4,164 2023 2,582 Thereafter 5,532 Total $ 27,887 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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, 2018 are summarized below (amounts in thousands): Level 1 Level 2 Level 3 Fair Value Investment in cooperative (2) $ — $ — $ 333 $ 333 Total assets $ — $ — $ 333 $ 333 Commodity futures (3) $ — $ 152 $ — $ 152 Forward purchase contract liability (4) — 1,724 — 1,724 Total liabilities $ — $ 1,876 $ — $ 1,876 Level 1 Level 2 Level 3 Fair Value Forward purchase contracts asset (1) $ — $ 72 $ — $ 72 Investment in cooperative (2) — — 333 333 Total assets $ — $ 72 $ 333 $ 405 Commodity futures (3) $ — $ 87 $ — $ 87 Forward purchase contract liability (4) — 34 — 34 Total liabilities $ — $ 121 $ — $ 121 (1) The forward purchase contract asset is 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) Commodity futures are included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets. (4) 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, 2018 | |
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 $ 21,095 $ 21,074 Buildings and improvements 23,598 23,272 Machinery, equipment and fixtures 293,509 288,832 Construction in progress 2,589 3,155 340,791 336,333 Less: accumulated depreciation (149,968 ) (138,506 ) Total $ 190,823 $ 197,827 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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, Real estate taxes refundable $ 7,099 $ 6,719 Deposits — 5 Other 717 730 Total $ 7,816 $ 7,454 |
ACCRUED EXPENSES AND OTHER CU30
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands): July 31, January 31, Accrued payroll and related items $ 1,543 $ 5,108 Accrued utility charges 2,162 2,639 Accrued real estate taxes 1,570 2,678 Accrued income taxes 47 61 Other 5,233 3,230 Total $ 10,555 $ 13,716 |
DERIVATIVE FINANCIAL INSTRUME31
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value July 31, January 31, July 31, January 31, Commodity futures (1) $ — $ — $ 152 $ 87 Forward purchase contracts (2) — 72 1,724 34 Total $ — $ 72 $ 1,876 $ 121 (1) Commodity futures are included in accrued expenses and other current liabilities. These contracts are short/sell positions for approximately 4.9 million and 2.5 million bushels of corn at July 31, 2018 and January 31, 2018, respectively. (2) Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 11.5 million and 11.7 million bushels of corn at July 31, 2018 and January 31, 2018, respectively. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Investments Schedule [Abstract] | |
Equity Method Investments [Table Text Block] | The following table summarizes the Company’s equity method investment at July 31, 2018 and January 31, 2018 (dollars in thousands): Entity Ownership Percentage Carrying Amount Carrying Amount Big River 10.3% $ 35,117 $ 34,549 |
Schedule of Financial Information for Equity Method Investments [Table Text Block] | Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net sales and revenue $ 212,092 $ 212,070 $ 404,035 $ 404,569 Gross profit $ 10,648 $ 11,582 $ 24,339 $ 19,764 Income from continuing operations $ 8,468 $ 1,411 $ 15,232 $ 8,618 Net income $ 8,468 $ 1,411 $ 15,232 $ 8,618 |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table summarizes the Company’s held-to-maturity securities at July 31, 2018 (dollars in thousands): Amortized Gross Unrealized Estimated United States Treasury Bills $ 111,969 $ 36 $ 111,933 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following tables summarize non-vested restricted stock award activity for the six months ended July 31, 2018 and 2017: Six Months Ended July 31, 2018 Weighted Weighted Average Grant Average Remaining Non-Vested Date Fair Value Vesting Term Shares (000’s) (in years) Non-Vested at January 31, 2018 29,415 $ 2,275 2 Granted 21,745 1,622 Forfeited — — Vested 13,124 963 Non-Vested at July 31, 2018 38,036 $ 2,934 2 Six Months Ended July 31, 2017 Weighted Weighted Average Grant Average Remaining Non-Vested Date Fair Value Vesting Term Shares (000’s) (in years) Non-Vested at January 31, 2017 23,350 $ 1,386 2 Granted 14,156 1,370 Forfeited — — Vested 8,091 481 Non-Vested at July 31, 2017 29,415 2,275 2 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
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): Six Months Ended 2018 2017 Unrecognized tax benefits, beginning of period $ 2,325 $ 2,096 Changes for prior years’ tax positions 832 164 Changes for current year tax positions — — Unrecognized tax benefits, end of period $ 3,157 $ 2,260 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 31, 2018 | |
Segment Reporting (Tables) [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table summarizes segment and other results and assets (amounts in thousands): Three Months Ended Six Months Ended July 31, July 31, 2018 2017 2018 2017 Net sales and revenue: Ethanol and by-products $ 128,491 $ 108,744 $ 249,171 $ 221,887 Refined coal 1 266 — 406 — Total net sales and revenue $ 128,757 $ 108,744 $ 249,577 $ 221,887 Segment gross profit (loss): Ethanol and by-products $ 13,669 $ 10,781 $ 27,215 $ 23,270 Refined coal (4,270 ) — (6,965 ) — Total gross profit $ 9,399 $ 10,781 $ 20,250 $ 23,270 Income (loss) before income taxes: Ethanol and by-products $ 10,077 $ 7,330 $ 21,086 $ 16,253 Refined coal (4,788 ) — (7,647 ) — Corporate and other (430 ) (857 ) (931 ) (1,778 ) Total income (loss) before income taxes $ 4,859 $ 6,473 $ 12,508 $ 14,475 Benefit (provision) for income taxes: Ethanol and by-products $ (2,029 ) $ (2,675 ) $ (3,449 ) $ (5,380 ) Refined coal 7,597 — 11,596 — Corporate and other 63 373 187 688 Total benefit (provision) for income taxes $ 5,631 $ (2,302 ) $ 8,334 $ (4,692 ) Segment profit (loss): Ethanol and by-products $ 6,561 $ 3,419 $ 15,150 $ 8,561 Refined coal 3,018 — 4,289 — Corporate and other (362 ) (478 ) (726 ) (1,076 ) Net income attributable to REX common shareholders $ 9,217 $ 2,941 $ 18,713 $ 7,485 Three Months Ended Six Months Ended 2018 2017 2018 2017 Sales of products, ethanol and by-products segment: Ethanol $ 100,289 $ 88,785 $ 192,182 $ 180,257 Dried distillers grains 21,059 13,472 41,143 28,622 Non-food grade corn oil 5,075 4,726 10,055 9,318 Modified distillers grains 2,043 1,748 5,760 3,667 Other 25 13 31 23 Total $ 128,491 $ 108,744 $ 249,171 $ 221,887 Sales of products, refined coal segment: Refined coal $ 266 $ — $ 406 $ — 1 |
Assets [Member] | |
Segment Reporting (Tables) [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Assets: July 31, January 31, Ethanol and by-products $ 402,728 $ 384,997 Refined coal 10,052 12,165 Corporate and other 63,390 81,702 Total assets $ 476,170 $ 478,864 |
Consolidated Condensed Financ36
Consolidated Condensed Financial Statements (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 | |
Consolidated Condensed Financial Statements (Details) [Line Items] | ||||
Number of Consolidated Subsidiaries | 4 | |||
Number of Reportable Segments | 2 | 2 | 1 | |
Ethanol [Member] | ||||
Consolidated Condensed Financial Statements (Details) [Line Items] | ||||
Number of Operating Segments | 3 | |||
Ethanol [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | ||||
Consolidated Condensed Financial Statements (Details) [Line Items] | ||||
Number of Operating Segments | 2 | |||
Refined Coal [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | ||||
Consolidated Condensed Financial Statements (Details) [Line Items] | ||||
Number of Operating Segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jan. 31, 2018 | Jan. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Income Taxes Paid | $ 500,000 | |||||
Unrecognized Tax Benefits | $ 2,325,000 | $ 2,096,000 | $ 2,800,000 | $ 2,000,000 | 2,800,000 | $ 2,000,000 |
Inventory Write-down | 0 | $ 0 | ||||
Property, Plant and Equipment, Depreciation Methods | Depreciation is computedusing the straight-line method. | |||||
Asset Impairment Charges | $ 0 | 0 | ||||
Cash and Cash Equivalents, Period Increase (Decrease) | 354,000 | $ 130,000,000,000 | 379,000,000,000 | |||
Provision for Income Taxes [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Unrecognized Tax Benefits | $ (2,800,000) | (2,800,000) | ||||
Cost of Sales [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Maximum Percentage of Equity Ownership Interest Which May be Considered for Equity Method of Accounting | 20.00% | |||||
Minimum [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Income Taxes Paid | $ 6,500,000 | |||||
Minimum [Member] | Building and Building Improvements [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 5 | |||||
Minimum [Member] | Fixtures And Equipment [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 2 | |||||
Maximum [Member] | Building and Building Improvements [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 40 years | |||||
Maximum [Member] | Fixtures And Equipment [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | 20 years | |||||
Customer Concentration Risk [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
Income Tax Examination, Penalties and Interest Accrued | $ 400,000 | $ 400,000 | $ 400,000 | |||
Accounting Standards Update 2016-15 [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Description | Effective February 1, 2018, the Company prospectivelyadopted Accounting Standards Update “ASU” 2016-15 “Statement of Cash Flows (Topic 230), Classification ofCertain Cash Receipts and Cash Payments”. This standard provides guidance on eight specific cash flow issues. The cashflow issues covered by this ASU are: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instrumentsor other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing;3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5)proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributionsreceived from equity method investees; 7) beneficial interests in securitization transactions; and 8) separately identifiable cashflows and application of the predominance principle for distributions received from equity method investees in the Statement ofCash Flows. The adoption of this standard did not affect the consolidated condensed financial statements and related disclosures. | |||||
Accounting Standards Update 2016-18 [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Description | Effective February 1, 2018, the Company adoptedASU 2016-18 “Statement of Cash Flows (Topic 230), Restricted Cash”. This standard requires that the statementsof cash flows explain the changes in the combined total of restricted and unrestricted cash balances. Amounts generally describedas restricted cash will be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of periodbalances on the statements of cash flows. The Company adopted this standard retrospectively. Therefore, the beginning period balanceof cash and cash equivalents as of January 31, 2017 was increased by $130,000, the end of period balance of cash and cash equivalentsas of July 31, 2017 was increased by $379,000 and the beginning period balance of cash and cash equivalents as of January 31,2018 was increased by $354,000 to reflect the respective restricted cash amounts. | |||||
Accounting Standards Update 2016-02 [Member] | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Description | In February 2016, the FASB issued ASU 2016-02“Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet asa right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Companywill be required to adopt this standard effective February 1, 2019. The related leases are currently accounted for as operatingleases (see Note 5). This standard requires a modified retrospective transition approach and allows for early adoption. In July2018, FASB issued Accounting Standards Update, Leases (Topic 842): Targeted Improvements, which provides an option to applythe transition provisions of the new standard at the adoption date instead of the earliest comparative period presented in thefinancial statements. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Components of Inventory - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Schedule of Components of Inventory [Abstract] | ||
Ethanol and other finished goods | $ 8,193 | $ 8,402 |
Work in process | 2,975 | 2,824 |
Grain and other raw materials | 14,003 | 9,529 |
Total | $ 25,171 | $ 20,755 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 31, 2018 | Jul. 31, 2017 | Apr. 30, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2018 | Aug. 10, 2017 | |
BUSINESS COMBINATIONS (Details) [Line Items] | |||||||
Selling, General and Administrative Expense | $ 6,110,000 | $ 4,779,000 | $ 10,663,000 | $ 10,181,000 | |||
Income Tax Expense (Benefit) | (5,631,000) | 2,302,000 | (8,334,000) | 4,692,000 | |||
Net Income (Loss) Attributable to Parent | 9,217,000 | $ 2,941,000 | 18,713,000 | $ 7,485,000 | |||
Payments to Acquire Businesses, Gross | 12,049,000 | ||||||
Refined Coal [Member] | |||||||
BUSINESS COMBINATIONS (Details) [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 95.35% | ||||||
Income Tax Expense (Benefit) | $ (7,597,000) | $ (11,596,000) | |||||
Business Acquisition, Pro Forma Earnings Per Share, Basic (in Dollars per share) | $ 0.06 | $ 0.35 | |||||
Business Acquisition, Pro Forma Revenue | $ 800,000 | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | 9,900,000 | ||||||
Payments to Acquire Businesses, Gross | 12,049,000 | ||||||
Business Acquisition, Transaction Costs | $ 2,500,000 | ||||||
Refined Coal [Member] | Pro Forma [Member] | |||||||
BUSINESS COMBINATIONS (Details) [Line Items] | |||||||
Costs and Expenses | $ 692,000 | $ 1,385,000 | |||||
Selling, General and Administrative Expense | 2,510,000 | ||||||
Net Income (Loss) Attributable to Parent | $ 409,000 | 2,303,000 | |||||
Refined Coal [Member] | Pro Forma1 Member | |||||||
BUSINESS COMBINATIONS (Details) [Line Items] | |||||||
Income Tax Expense (Benefit) | $ 263,000 | $ 1,480,000 |
BUSINESS COMBINATIONS (Detail40
BUSINESS COMBINATIONS (Details) - Schedule of Estimated Fair Values of Assets Acquired at Acquisition Date $ in Thousands | 6 Months Ended |
Jul. 31, 2018USD ($) | |
Schedule of Estimated Fair Values of Assets Acquired at Acquisition Date [Abstract] | |
Inventory | $ 49 |
Property, plant and equipment | 12,000 |
Total assets acquired and purchase price | $ 12,049 |
LEASES (Details) - Schedule of
LEASES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands | Jul. 31, 2018USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Remainder of 2019 | $ 3,919 |
2,020 | 6,873 |
2,021 | 4,817 |
2,022 | 4,164 |
2,023 | 2,582 |
Thereafter | 5,532 |
Total | $ 27,887 |
FAIR VALUE (Details) - Schedule
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | |
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investment in cooperative (2) | [1] | $ 333 | $ 333 |
Total assets | 333 | 405 | |
Commodity futures (3) | [2] | 152 | 87 |
Forward purchase contract liability (4) | [3] | 1,724 | 34 |
Total liabilities | 1,876 | 121 | |
Forward purchase contracts asset | [4] | 72 | |
Fair Value, Inputs, Level 1 [Member] | |||
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investment in cooperative (2) | [1] | ||
Commodity futures (3) | [2] | ||
Forward purchase contract liability (4) | [3] | ||
Forward purchase contracts asset | [4] | ||
Fair Value, Inputs, Level 2 [Member] | |||
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investment in cooperative (2) | [1] | ||
Total assets | 72 | ||
Commodity futures (3) | [2] | 152 | 87 |
Forward purchase contract liability (4) | [3] | 1,724 | 34 |
Total liabilities | 1,876 | 121 | |
Forward purchase contracts asset | [4] | 72 | |
Fair Value, Inputs, Level 3 [Member] | |||
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Investment in cooperative (2) | [1] | 333 | 333 |
Total assets | 333 | 333 | |
Commodity futures (3) | [2] | ||
Forward purchase contract liability (4) | [3] | ||
Forward purchase contracts asset | [4] | ||
[1] | The investment in cooperative is included in "Other assets" on the accompanying Consolidated Condensed Balance Sheets. | ||
[2] | Commodity futures are included in "Accrued expenses and other current liabilities" 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. | ||
[4] | The forward purchase contract asset is included in "Prepaid expenses and other current assets" on the accompanying Consolidated Condensed Balance Sheets. |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Schedule of Property and Equipment [Abstract] | ||
Land and improvements | $ 21,095 | $ 21,074 |
Buildings and improvements | 23,598 | 23,272 |
Machinery, equipment and fixtures | 293,509 | 288,832 |
Construction in progress | 2,589 | 3,155 |
340,791 | 336,333 | |
Less: accumulated depreciation | (149,968) | (138,506) |
Total | $ 190,823 | $ 197,827 |
OTHER ASSETS (Details) - Schedu
OTHER ASSETS (Details) - Schedule of Other Assets - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Schedule of Other Assets [Abstract] | ||
Real estate taxes refundable | $ 7,099 | $ 6,719 |
Deposits | 5 | |
Other | 717 | 730 |
Total | $ 7,816 | $ 7,454 |
ACCRUED EXPENSES AND OTHER CU45
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Accrued payroll and related items | $ 1,543 | $ 5,108 |
Accrued utility charges | 2,162 | 2,639 |
Accrued real estate taxes | 1,570 | 2,678 |
Accrued income taxes | 47 | 61 |
Other | 5,233 | 3,230 |
Total | $ 10,555 | $ 13,716 |
REVOLVING LINES OF CREDIT (Deta
REVOLVING LINES OF CREDIT (Details) $ in Millions | 6 Months Ended |
Jul. 31, 2018USD ($) | |
Debt Disclosure [Abstract] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 10 |
Debt Instrument, Maturity Date | Jun. 1, 2019 |
DERIVATIVE FINANCIAL INSTRUME47
DERIVATIVE FINANCIAL INSTRUMENTS (Details) bu in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2018USD ($)bu | Jul. 31, 2017USD ($) | Jul. 31, 2018USD ($)bu | Jul. 31, 2017USD ($) | Jan. 31, 2018bu | |
DERIVATIVE FINANCIAL INSTRUMENTS (Details) [Line Items] | |||||
Debt Instrument, Collateral Amount | $ 778,000 | $ 778,000 | |||
Derivative, Loss on Derivative | $ (405,000) | $ 853,000 | |||
Derivative, Gain on Derivative | $ 160,000 | $ 977,000 | |||
Corn [Member] | |||||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) [Line Items] | |||||
Forward Purchase Contracts, Quantity (in US Bushels) | bu | 11.5 | 11.5 | 11.7 | ||
Corn [Member] | Short/Sell [Member] | |||||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) [Line Items] | |||||
Commodity Futures, Quantity (in US Bushels) | bu | 4.9 | 4.9 | 2.5 |
DERIVATIVE FINANCIAL INSTRUME48
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 | |
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items] | |||
Asset Derivatives, Fair Value | $ 72 | ||
Liability Derivatives, Fair Value | $ 1,876 | 121 | |
Commodity Contract [Member] | |||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items] | |||
Asset Derivatives, Fair Value | [1] | ||
Liability Derivatives, Fair Value | [1] | 152 | 87 |
Forward Contracts [Member] | |||
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items] | |||
Asset Derivatives, Fair Value | [2] | 72 | |
Liability Derivatives, Fair Value | [2] | $ 1,724 | $ 34 |
[1] | Commodity futures are included in accrued expenses and other current liabilities. These contracts are short/sell positions for approximately 4.9 million and 2.5 million bushels of corn at July 31, 2018 and January 31, 2018, respectively. | ||
[2] | Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 11.5 million and 11.7 million bushels of corn at July 31, 2018 and January 31, 2018, respectively. |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2018 | |
INVESTMENTS (Details) [Line Items] | ||||
Proceeds from Equity Method Investment, Distribution | $ 1,003 | $ 2,005 | ||
Yield To Maturity Rates Minimum | 1.60% | 1.60% | ||
Yield To Maturity Rates Max | 1.80% | |||
Big River [Member] | ||||
INVESTMENTS (Details) [Line Items] | ||||
Retained Earnings, Undistributed Earnings from Equity Method Investees | $ 15,100 | $ 15,100 | $ 14,500 | |
Proceeds from Equity Method Investment, Distribution | $ 1,000 | $ 2,000 |
INVESTMENTS (Details) - Schedul
INVESTMENTS (Details) - Schedule of Equity Method Investments - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Schedule of Equity Method Investments [Abstract] | ||
Big River | 10.30% | |
Big River | $ 35,117 | $ 34,549 |
INVESTMENTS (Details) - Sched51
INVESTMENTS (Details) - Schedule of Financial information For Equity Method Investment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | |
INVESTMENTS (Details) - Schedule of Financial information For Equity Method Investment [Line Items] | ||||
Net income | $ 9,217 | $ 2,941 | $ 18,713 | $ 7,485 |
Big River [Member] | ||||
INVESTMENTS (Details) - Schedule of Financial information For Equity Method Investment [Line Items] | ||||
Net sales and revenue | 212,092 | 212,070 | 404,035 | 404,569 |
Gross profit | 10,648 | 11,582 | 24,339 | 19,764 |
Income from continuing operations | 8,468 | 1,411 | 15,232 | 8,618 |
Net income | $ 8,468 | $ 1,411 | $ 15,232 | $ 8,618 |
INVESTMENTS (Details) - Sched52
INVESTMENTS (Details) - Schedule of Held To Maturity Securities $ in Thousands | 3 Months Ended |
Jul. 31, 2018USD ($) | |
Schedule of Held To Maturity Securities [Abstract] | |
United States Treasury Bills | $ 111,969 |
United States Treasury Bills | 36 |
United States Treasury Bills | $ 111,933 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) | Jul. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 |
EMPLOYEE BENEFITS (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 38,036 | 29,415 | 29,415 | 23,350 |
Rex Shareholders [Member] | ||||
EMPLOYEE BENEFITS (Details) [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 275,000 | $ 233,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 24,711 | 34,148 | ||
Stock Option Plans 2015 [Member] | Employee Stock Option [Member] | ||||
EMPLOYEE BENEFITS (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 550,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 489,430 |
EMPLOYEE BENEFITS (Details) - S
EMPLOYEE BENEFITS (Details) - Schedule of Non-Vested Restricted Stock Award Activity - USD ($) $ / shares in Thousands, $ in Thousands | 6 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Schedule of Non-Vested Restricted Stock Award Activity [Abstract] | ||
Non-Vested Shares, Beginning of Period | 29,415 | 23,350 |
Weighted Average Grant Date Fair Value,Beginning of Period (in Dollars) | $ 2,275 | $ 1,386 |
Weighted Average Vesting Term, Beginning of Period | 2 years | 2 years |
Non-Vested Shares, Granted | 21,745 | 14,156 |
Weighted Average Grant Date Fair Value, Granted (in Dollars per share) | $ 1,622 | $ 1,370 |
Non-Vested Shares, Forfeited | ||
Weighted Average Grant Date Fair Value, Forfeited (in Dollars) | ||
Non-Vested Shares, Vested | 13,124 | 8,091 |
Weighted Average Grant Date Fair Value, Vested (in Dollars) | $ 963 | $ 481 |
Non-Vested Shares, End of Period | 38,036 | 29,415 |
Weighted Average Grant Date Fair Value, End of Period (in Dollars) | $ 2,934 | $ 2,275 |
Weighted Average Vesting Term, End of Period | 2 years | 2 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Jan. 31, 2018 | Jan. 01, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Depreciation, Percent | (115.90%) | 35.60% | (66.60%) | 32.40% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||
Deferred Other Tax Expense (Benefit) (in Dollars) | $ (14,362,000) |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Unrecognized Tax Benefits Roll Forward - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2018 | Jul. 31, 2017 | |
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract] | ||
Unrecognized tax benefits, beginning of period | $ 2,325 | $ 2,096 |
Changes for prior years’ tax positions | 832 | 164 |
Unrecognized tax benefits, end of period | $ 3,157 | $ 2,260 |
Commitments and Contingencies (
Commitments and Contingencies (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions | 6 Months Ended |
Jul. 31, 2018USD ($)MMBTUTlbbugal | |
One Earth Energy And Nu Gen Energy [Member] | |
Commitments and Contingencies (Details) [Line Items] | |
Quantity of Bushels under Forward Purchase Contract | bu | 11.5 |
Quantity Of Natural Gas Under Sales Commitment | MMBTU | 1,936,000 |
Quantity of Ethanol under Sales Commitment | gal | 17.9 |
Quantity of Distillers Grains Under Sales Commitment | T | 62,000 |
Quantity of Non-food Grade Corn Oil Under Sales Commitments | lb | 10.2 |
Refined Coal [Member] | |
Commitments and Contingencies (Details) [Line Items] | |
Fees Incurred By Subsidiary | $ | $ 5.1 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2018 | |
Related-Party Transactions (Details) [Line Items] | |||||
Costs and Expenses, Related Party | $ 91.4 | $ 78.7 | |||
Accounts Payable, Related Parties, Current | $ 1.4 | 1.4 | $ 0.9 | ||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 0.2 | 0.3 | |||
Refined Coal [Member] | |||||
Related-Party Transactions (Details) [Line Items] | |||||
Accrued Liabilities for Commissions, Expense and Taxes | 1.5 | $ 1.5 | $ 1.5 | ||
One Earth Energy And Nu Gen Energy [Member] | |||||
Related-Party Transactions (Details) [Line Items] | |||||
Costs and Expenses, Related Party | $ 45.2 | $ 36.5 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jul. 31, 2017 | Jan. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of Reportable Segments | 2 | 2 | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule Of Segment Results And Assets - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Net sales and revenue: | $ 128,757 | $ 108,744 | $ 249,577 | $ 221,887 | |
Segment gross profit (loss): | 9,399 | 10,781 | 20,250 | 23,270 | |
Income (loss) before income taxes: | 4,859 | 6,473 | 12,508 | 14,475 | |
Benefit (provision) for income taxes: | 5,631 | (2,302) | 8,334 | (4,692) | |
Segment profit (loss): | 9,217 | 2,941 | 18,713 | 7,485 | |
Sales of products, ethanol and by-products and refined coal segments: | 128,491 | 108,744 | 249,171 | 221,887 | |
Ethanol [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales and revenue: | 128,491 | 108,744 | 249,171 | 221,887 | |
Segment gross profit (loss): | 13,669 | 10,781 | 27,215 | 23,270 | |
Income (loss) before income taxes: | 10,077 | 7,330 | 21,086 | 16,253 | |
Benefit (provision) for income taxes: | (2,029) | (2,675) | (3,449) | (5,380) | |
Segment profit (loss): | 6,561 | 3,419 | 15,150 | 8,561 | |
Sales of products, ethanol and by-products and refined coal segments: | 100,289 | 88,785 | 192,182 | 180,257 | |
Refined Coal [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales and revenue: | [1] | 266 | 406 | ||
Segment gross profit (loss): | (4,270) | (6,965) | |||
Income (loss) before income taxes: | (4,788) | (7,647) | |||
Benefit (provision) for income taxes: | 7,597 | 11,596 | |||
Segment profit (loss): | 3,018 | 4,289 | |||
Sales of products, ethanol and by-products and refined coal segments: | 266 | 406 | |||
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes: | (430) | (857) | (931) | (1,778) | |
Benefit (provision) for income taxes: | 63 | 373 | 187 | 688 | |
Segment profit (loss): | (362) | (478) | (726) | (1,076) | |
Dried Distillers Grains [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of products, ethanol and by-products and refined coal segments: | 21,059 | 13,472 | 41,143 | 28,622 | |
Non-Food Grade Corn Oil [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of products, ethanol and by-products and refined coal segments: | 5,075 | 4,726 | 10,055 | 9,318 | |
Modified Distillers Grains [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of products, ethanol and by-products and refined coal segments: | 2,043 | 1,748 | 5,760 | 3,667 | |
Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales of products, ethanol and by-products and refined coal segments: | $ 25 | $ 13 | $ 31 | $ 23 | |
[1] | The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold. |
Segment Reporting (Details) -61
Segment Reporting (Details) - Schedule Of Segment Assets - USD ($) $ in Thousands | Jul. 31, 2018 | Jan. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 476,170 | $ 478,864 |
Ethanol [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 402,728 | 384,997 |
Refined Coal [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 10,052 | 12,165 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 63,390 | $ 81,702 |