v3.26.1
Segment Reporting
 6 Months Ended
Jul. 31, 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.

 

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 and six month periods ended July 31, 2026 and 2025 (in thousands):

 

   Three Months Ended
July 31,		   Six Months Ended
July 31,		 
    2026    2025    2026    2025 
Net sales and revenue                    
Ethanol and by-products  $501,789   $388,439   $927,998   $819,082 
Reconciling Item: Equity method ethanol investment   (333,296)   (229,876)   (603,006)   (502,179)
Total consolidated net sales and revenue  $168,493   $158,563   $324,992   $316,903 
                     
Production tax credit income                    
Ethanol and by-products  $38,737   $-   $66,178   $- 
Reconciling Item: Equity method ethanol investment   (20,327)   -    (40,219)   - 
Total consolidated production tax credit income  $18,410   $-   $25,959   $- 
                     
Cost of sales                    
Ethanol and by-products:                    
Cost of corn  $293,021   $253,382   $557,620   $533,747 
Other cost of sales (1)   111,504    107,500    226,379    229,186 
Reconciling Item: Equity method ethanol investment   (270,922)   (216,638)   (515,419)   (474,691)
Total cost of sales  $133,603   $144,244   $268,580   $288,242 
                     
Gross profit                    
Ethanol and by-products  $136,001   $27,557   $210,177   $56,149 
Reconciling Item: Equity method ethanol investment   (82,701)   (13,238)   (127,806)   (27,488)
Total consolidated gross profit  $53,300   $14,319   $82,371   $28,661 
                     
Depreciation and amortization expense                    
Ethanol and by-products  $13,282   $11,724   $26,478   $21,963 
Reconciling Item: Equity method ethanol investment   (6,642)   (5,970)   (13,128)   (11,190)
Total consolidated depreciation and amortization expense  $6,640   $5,754   $13,350   $10,773 
                     
Income before taxes                    
Ethanol and by-products  $125,899   $21,417   $194,701   $46,779 
Reconciling Item: Equity method ethanol investment   (77,781)   (9,320)   (120,468)   (21,056)
Total consolidated income before income taxes   48,118    12,097    74,233    25,723 
Provision for income taxes   (7,472)   (2,769)   (11,909)   (5,723)
Total consolidated net income  $40,646   $9,328   $62,324   $20,000 

 

  (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.