Company: REX
Filing Date: 2025-06-04
Form Type: 10-Q
Source: 0000930413-25-001941
Chunk: 70

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-06-04
Form: 10-Q
Item: Part I, Item 8
Chunk 70
---
,220) 
     (8,664)

    Total consolidated depreciation and amortization expense 
    $5,019  
    $5,892 

    Income before taxes 

    Ethanol and by-products 
    $25,362  
    $35,125 

    Reconciling Item: Equity method ethanol investment 
     (11,736) 
     (19,162)

    Total consolidated income before income taxes 
     13,626  
     15,963 

    Provision for income taxes 
     (2,954) 
     (3,690)

    Total consolidated net income 
    $10,672  
    $12,273 

(1)Expenses within “Other cost of sales” consist primarily
                                                            of depreciation, other raw materials, third-party freight charges,
                                                            purchasing and receiving costs, inspection costs, other distribution
                                                            expenses, warehousing costs, plant repair and maintenance costs, production
                                                            labor and related payroll costs, and general facility overhead charges.

24

Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Ethanol and By-Products

At April 30, 2025, we had investments in
three ethanol limited liability companies, in two of which we have a majority ownership interest. The following table is a summary
of ethanol entity ownership interests at April 30, 2025:

    Entity
     
    Location
    REX’s Current
Ownership Interest

    One Earth Energy, LLC
     
    Gibson City, IL
    75.9%

    NuGen Energy, LLC
     
    Marion, SD
    99.7%

    Big River Resources, LLC:

Big River Resources W Burlington, LLC

Big River Resources Galva, LLC

Big River United Energy, LLC

Big River Resources Boyceville, LLC

    W. Burlington, IA

Galva, IL

Dyersville, IA

Boyceville, WI

    10.3%

10.3%

5.7%

10.3%

Our ethanol operations are highly dependent
on commodity prices, especially prices for corn, ethanol, distillers grains, distillers corn oil and natural gas, and availability
of corn. As a result of price volatility for these commodities, our operating results can fluctuate substantially. The price and
availability of corn is subject to significant fluctuations depending upon several factors that affect commodity prices