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SEGMENT REPORTING
 12 Months Ended
Jan. 31, 2026
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING
15.SEGMENT REPORTING

 

The Company has one reportable segment, ethanol and by-products. 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 and are consolidated in the financial statements presented. Prior period amounts have been reclassified to conform to current segment reporting.

The Company’s chief operating decision maker is the Executive Committee that includes the Executive Chairman of the Board and The Chief Executive Officer. The chief operating decision maker uses net income generated from operating segments in determining the allocation of resources and making assessment of Company performance.

 

In applying the criteria set forth in ASC 280 the Company determined that based on the nature of the products and production process and the expected financial results, the Company’s operations at its ethanol plants, each of which is reviewed in the same manner by the CODM, are aggregated into one reporting segment. Aggregation into one reporting segment is appropriate based upon the similarity of economic characteristics of the operating segments, including the markets for identical revenue sources and the primary input, corn. The plants in all locations operate in a similar manner to produce ethanol and by-products. The types of customers and how the products are distributed to the customers are similar across each operating entity, consisting of a combination of rail and truck shipments. Finally, the regulatory environment is largely impacted by guidance from the federal level, impacting each operating segment the same. The measure of segment assets is reported on the balance sheet as total consolidated assets.

 

The following tables set forth certain financial data for the Company’s reportable segment for the years ended January 31, 2026, 2025 and 2024 (amounts in thousands):

 

     Fiscal Year
     2025   2024   2023 
  Net sales and revenue               
  Ethanol and by-products  $1,658,393   $1,664,052   $2,213,035 
  Reconciling Item: Equity method ethanol investment   (1,007,906)   (1,021,561)   (1,379,651)
  Total consolidated net sales and revenue  $650,487   $642,491   $833,384 
                  
  Cost of sales               
  Ethanol and by-products:               
  Cost of corn  $1,057,816   $1,094,364   $1,542,265 
  Other cost of sales (1)   388,728    361,052    412,003 
  Reconciling Item: Equity method ethanol investment   (889,763)   (904,402)   (1,219,102)
  Total cost of sales  $556,781   $551,014   $735,166 
                  
  Gross profit               
  Ethanol and by-products  $211,849   $208,636   $258,767 
  Reconciling Item: Equity method ethanol investment   (118,143)   (117,159)   (160,549)
  Total consolidated gross profit  $93,706   $91,477   $98,218 
                  
  Depreciation and amortization expense               
  Ethanol and by-products  $46,374   $49,071   $56,207 
  Reconciling Item: Equity method ethanol investment   (23,212)   (27,356)   (33,168)
  Total consolidated depreciation and amortization expense  $23,162   $21,715   $23,039 
                  
  Income before taxes               
  Ethanol and by-products  $229,056   $201,650   $253,600 
  Reconciling Item: Equity method ethanol investment   (140,484)   (108,778)   (155,116)
  Total consolidated income before income taxes   88,572    92,872    98,484 
  Provision for income taxes   6,502    (21,386)   (22,560)
  Total consolidated net income  $95,074   $71,486   $75,924 

 

  (1) Expenses within “Other cost of sales” consists primarily of depreciation, other raw materials such as denaturant and chemicals, utilities, repair and maintenance and production labor.