Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 108

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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 with respect to ethanol price. Consequently,
we generally execute fixed price sales contracts for no more than four months into the future at any given time and we may lock
in our corn or ethanol price without having a corresponding locked in ethanol or corn price for short durations of time. As a
result of the relatively short period of time our contracts cover, we generally cannot predict the future movements in our realized
crush spread for more than four months. We utilize derivative financial instruments, primarily exchange traded commodity future
contracts and swap contracts, in conjunction with certain of our corn procurement activities and commodity marketing activities.

SG&A expenses were approximately $5.9
million for the first quarter of fiscal year 2025, compared to approximately $6.1 million of expenses for the first quarter of
fiscal year 2024. The decreases compared to the prior year first quarter are due primarily to a decrease in performance bonus
expense of $0.2 million and a decrease in stock compensation expense of $0.3 million subsequent to the completion of the restricted
stock units performance period on December 31, 2024. These decreases were partially offset by an increase in rail car lease expense
due to higher rates realized upon lease renewals.

During the first quarter of fiscal year
2025, we recognized income from our equity investment in Big River of approximately $1.0 million compared to income of approximately
$1.7 million for the first quarter of fiscal year 2024. Our investment in Big River, which has interests in four ethanol production
plants, represents an effective ownership of approximately 39.2 million gallons of ethanol shipped in the trailing twelve months
ended April 30, 2025. Due to the inherent volatility of commodity prices within the

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ethanol industry, we cannot predict the likelihood of future
operating results from Big River being similar to historical results.

Interest and other income was approximately
$4.2 million for the first quarter of fiscal year 2025 versus approximately $5.9 million for the first quarter of fiscal year
2024. The decrease is primarily related to decreased interest income
of $1.3 million in the current year based upon lower balances and yields on our excess cash and short-term investments in fiscal
year 2025, compared to 2024. One of our consolidated ethanol plants recognized $0.5 million less in patronage income from an investment
in a cooperative in the first quarter of 2025 ($0.7 million) compared to the