Company: REX
Filing Date: 2025-12-04
Form Type: 10-Q
Source: 0000930413-25-003566
Chunk: 40

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-12-04
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
The decrease in tons sold was impacted by increased production levels of other ethanol by-products.

Distillers corn oil revenue increased approximately
60% in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 as the selling price per pound increased
36% and the amount of pounds sold increased 17%. Distillers corn oil revenue increased approximately 35% in the first nine months
of 2025 compared to the first nine months of fiscal year 2024 as the selling price per pound increased 23% and the amount of pounds
sold increased 11%. The corn oil yield per bushel ground improved at our consolidated ethanol plants in both the three- and nine-month
periods ended October 31, 2025, relative to the comparable period in fiscal 2024. The increase in the distillers corn oil selling
price resulted primarily from fluctuations in demand in the renewable biodiesel market.

Modified distillers grains revenue increased
2% in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 as the amount of tons sold increased
by 13%, offset partially with a 9% decrease in the average selling price per ton sold. Modified distillers grains revenue increased
16% in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 as the amount of tons sold
increased by 23%, offset partially by a 5% decrease in the average selling price per ton sold. The decrease in the modified distillers
grains selling price in the three- and nine-month periods resulted primarily from an extended period of lower corn prices, as prices
tend to move in the same direction but are also impacted by changes in local market demand. Our consolidated plants’ decisions
to sell modified or dried distillers grains fluctuate from time to time based upon market conditions.

Cost of sales increased 3% in the quarter
ended October 31, 2025, compared to the prior year third quarter. Corn accounted for approximately 75% ($104.2 million) of our
cost of sales during the third quarter of fiscal year 2025 compared to approximately 76% ($102.6 million) during the third quarter
of fiscal year 2024. Natural gas accounted for approximately 4% ($6.2 million) of our cost of sales during the third quarter of
fiscal year 2025 and 3%