v3.26.1
Segment Reporting
 3 Months Ended
Apr. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 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 members of the Executive Committee, consisting of the Executive Chairman of the Board and the Chief Executive Officer, are the Company’s chief operating decision maker. 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 are aggregated into one reporting segment, each of which is reviewed in the same manner by the chief operating decision maker. 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 three month periods ended April 30, 2026 and 2025 (in thousands):

 

   Three Months Ended
April 30,
   2026   2025 
Net sales and revenue          
Ethanol and by-products  $426,209   $430,643 
Reconciling Item: Equity method ethanol investment   (269,710)   (272,303)
Total consolidated net sales and revenue  $156,499   $158,340 
           
Production tax credit income          
Ethanol and by-products  $27,441   $- 
Reconciling Item: Equity method ethanol investment   (19,892)   - 
Total consolidated production tax credit income  $7,549   $- 
           
Cost of sales          
Ethanol and by-products:          
Cost of corn  $264,599   $280,365 
Other cost of sales (1)   114,875    121,686 
Reconciling Item: Equity method ethanol investment   (244,497)   (258,053)
Total cost of sales  $134,977   $143,998 
           
Gross profit          
Ethanol and by-products  $74,176   $28,592 
Reconciling Item: Equity method ethanol investment   (45,105)   (14,250)
Total consolidated gross profit  $29,071   $14,342 
           
Depreciation and amortization expense          
Ethanol and by-products  $13,196   $10,239 
Reconciling Item: Equity method ethanol investment   (6,486)   (5,220)
Total consolidated depreciation and amortization expense  $6,710   $5,019 
           
Income before taxes          
Ethanol and by-products  $68,802   $25,362 
Reconciling Item: Equity method ethanol investment   (42,687)   (11,736)
Total consolidated income before income taxes   26,115    13,626 
Provision for income taxes   (4,437)   (2,954)
Total consolidated net income  $21,678   $10,672 

 

(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.