Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 98

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 year 2025 compared to approximately 77% ($98.9 million) during the second quarter
of fiscal year 2024. Natural gas accounted for approximately 4% ($5.7 million) of our cost of sales during the second quarter of
fiscal year 2025 and 3% ($3.9 million) in the second quarter of fiscal year 2024. Cost of sales increased 5% in the first six months
of fiscal year 2025, compared to the first six months of fiscal year 2024. Corn accounted for approximately 74% ($212.9 million)
of our cost of sales during the first six months of fiscal year 2025 compared to approximately 76% ($209.6 million) during the
first six months of fiscal year 2024. Natural gas accounted for approximately 5% ($13.8 million) of our cost of sales during the
first six months of fiscal year 2025 and 4% ($11.0 million) in the first six months of fiscal year 2024.

As a result of the foregoing, gross profit
for the second quarter of fiscal year 2025 decreased approximately $5.5 million compared to the prior year second quarter. Gross
profit for the first six months of fiscal year 2025 decreased approximately $5.6 million compared to the first six months of fiscal
year 2024.

We attempt to match quantities
of ethanol, distillers grains and distillers corn oil sales contracts with an appropriate quantity of corn purchase contracts over
a given time period when we can obtain a satisfactory margin resulting from the crush spread inherent in the contracts we have
executed. However, the market for future ethanol sales contracts generally lags the spot market 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 $6.2 million for the second quarter of fiscal year 2025, compared to approximately $6