10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended October 31, 2017
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________ to _________

Commission File Number 001-09097

REX AMERICAN RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	31-1095548
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

7720 Paragon Road, Dayton, Ohio	45459
(Address of principal executive offices)	(Zip Code)

(937) 276-3931

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.             Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).            Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o		Accelerated filer  x
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company  o
			Emerging growth company  o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x

At the close of business on December 5, 2017 the registrant had 6,566,769 shares of Common Stock, par value $.01 per share, outstanding.

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Condensed Balance Sheets	3
	Consolidated Condensed Statements of Operations	4
	Consolidated Condensed Statements of Equity	5
	Consolidated Condensed Statements of Cash Flows	6
	Notes to Consolidated Condensed Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	39

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

Unaudited

	October 31,			January 31,
	2017			2017
	(In Thousands)
Assets
Current assets:
Cash and cash equivalents	$	190,460		$	188,576
Restricted cash		230			130
Accounts receivable		9,801			11,901
Inventory		24,145			17,057
Refundable income taxes		977			1,070
Prepaid expenses and other		6,828			6,959
Deferred taxes, net		-			824
Total current assets		232,441			226,517
Property and equipment, net		198,959			182,761
Other assets		7,190			6,913
Equity method investments		35,755			37,833
Total assets	$	474,345		$	454,024
Liabilities and equity:
Current liabilities:
Accounts payable, trade	$	11,778		$	9,171
Accrued expenses and other current liabilities		11,223			13,348
Total current liabilities		23,001			22,519
Long-term liabilities:
Deferred taxes		34,629			41,135
Other long-term liabilities		3,343			2,096
Total long-term liabilities		37,972			43,231
Equity:
REX shareholders’ equity:
Common stock		299			299
Paid-in capital		146,887			145,767
Retained earnings		528,860			508,207
Treasury stock		(313,650	)		(313,838	)
Total REX shareholders’ equity		362,396			340,435
Noncontrolling interests		50,976			47,839
Total equity		413,372			388,274
Total liabilities and equity	$	474,345		$	454,024

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Operations

Unaudited

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2017			2016			2017			2016
	(In Thousands, Except Per Share Amounts)
Net sales and revenue	$	121,164		$	116,283		$	343,051		$	332,212
Cost of sales		106,297			96,121			304,914			286,344
Gross profit		14,867			20,162			38,137			45,868
Selling, general and administrative expenses		(7,347	)		(5,082	)		(17,528	)		(14,315	)
Equity in income of unconsolidated affiliates		1,094			1,838			1,931			3,257
(Loss) gain on sale of investment		-			-			(13	)		192
(Loss) gain on disposal of property and equipment, net		(100	)		179			(87	)		364
Interest and other income		745			117			1,294			374
Income before income taxes		9,259			17,214			23,734			35,740
Benefit (provision) for income taxes		5,735			(5,740	)		1,043			(11,771	)
Net income		14,994			11,474			24,777			23,969
Net income attributable to noncontrolling interests		(1,826	)		(2,536	)		(4,124	)		(4,017	)
Net income attributable to REX common shareholders	$	13,168		$	8,938		$	20,653		$	19,952
Weighted average shares outstanding – basic and diluted		6,597			6,590			6,594			6,591
Basic and diluted net income per share attributable to REX common shareholders		$2.00			$1.36			$3.13			$3.03

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Equity

Unaudited

(In Thousands)

	REX Shareholders
	Common Shares Issued				Treasury						Paid-in		Retained		Noncontrolling			Total
	Shares		Amount		Shares			Amount			Capital		Earnings		Interests			Equity
Balance at January 31, 2017		29,853	$	299		23,292		$	(313,838	)	$	145,767	$	508,207	$	47,839		$	388,274
Net income														20,653		4,124			24,777
Capital contributions																738			738
Issuance of equity awards and stock based compensation expense						(5	)		188			1,120							1,308
Noncontrolling interests distribution and other		-		-		-			-			-		-		(1,725	)		(1,725	)
Balance at October 31, 2017		29,853	$	299		23,287		$	(313,650	)	$	146,887	$	528,860	$	50,976		$	413,372
Balance at January 31, 2016		29,853	$	299		23,204		$	(309,754	)	$	144,844	$	475,874	$	44,496		$	355,759
Net income														19,952		4,017			23,969
Treasury stock acquired						88			(4,353	)									(4,353	)
Stock based compensation expense						-			263			900							1,163
Noncontrolling interests distribution and other		-		-		-			-			-		-		(2,096	)		(2,096	)
Balance at October 31, 2016		29,853	$	299		23,292		$	(313,844	)	$	145,744	$	495,826	$	46,417		$	374,442

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Cash Flows

Unaudited

	Nine Months Ended
	October 31,
	2017			2016
	(In Thousands)
Cash flows from operating activities:
Net income including noncontrolling interests	$	24,777		$	23,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		15,695			14,567
Income from equity method investments		(1,931	)		(3,257	)
Dividends received from equity method investee		4,009			4,010
Loss (gain) on disposal of real estate and property and equipment, net		87			(364	)
Loss (gain) on sale of investment		13			(192	)
Deferred income tax		(5,682	)		(1,019	)
Stock based compensation expense		881			68
Changes in assets and liabilities:
Accounts receivable		2,023			(1,686	)
Inventories		(7,039	)		(2,305	)
Other assets		(222	)		2,758
Accounts payable, trade		2,195			1,653
Other liabilities		(746	)		3,157
Net cash provided by operating activities		34,060			41,359
Cash flows from investing activities:
Capital expenditures		(19,315	)		(11,836	)
Acquisition of business, net of cash acquired		(12,049	)		-
Restricted cash		(100	)		8
Restricted investments and deposits		150			460
Proceeds from sale of investment		64			2,275
Proceeds from sale of real estate and property and equipment, net		42			1,510
Other		19			17
Net cash used in investing activities		(31,189	)		(7,566	)
Cash flows from financing activities:
Dividend payments to and purchases of stock from noncontrolling interests holders		(1,725	)		(2,096	)
Capital contributions from minority investor		738			-
Treasury stock acquired		-			(4,709	)
Net cash used in financing activities		(987	)		(6,805	)
Net increase in cash and cash equivalents		1,884			26,988
Cash and cash equivalents, beginning of period		188,576			135,765
Cash and cash equivalents, end of period	$	190,460		$	162,753
Non cash investing activities – Accrued capital expenditures	$	1,049		$	1,183
Non cash financing activities – Stock awards accrued	$	768		$	-
Non cash financing activities – Stock awards issued	$	1,195		$	1,095

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

October 31, 2017

Note 1. Consolidated Condensed Financial Statements

The consolidated condensed financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Financial information as of January 31, 2017 included in these financial statements has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2017 (fiscal year 2016). It is suggested that these unaudited consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2017. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year.

Basis of Consolidation – The consolidated condensed financial statements in this report include the operating results and financial position of REX American Resources Corporation and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Condensed Statements of Operations on a delayed basis of one month.

Nature of Operations – In the third quarter of fiscal year 2017, the Company began reporting the results of its refined coal operation as a new segment as a result of the August 10, 2017 acquisition of an entity that operates a refined coal facility (see Note 3). Prior to the acquisition, the Company had one reportable segment, ethanol. Beginning with the third quarter of fiscal year 2017, the Company has two reportable segments: i) ethanol and by-products and ii) refined coal. 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. Within the refined coal segment, the Company has a majority equity interest in one refined coal limited liability company.

Note 2. Accounting Policies

The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the Company’s fiscal year 2016 Annual Report on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates.

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Revenue Recognition

For ethanol and by-products segment sales, the Company recognizes sales from the production of ethanol, distillers grains and non-food grade corn oil when title transfers to customers, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. For refined coal segment sales, the Company recognizes sales from the production of refined coal when title transfers to its customer, generally upon the coal leaving the refined coal plant. Refined coal sales are recorded net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold (after processing).

Cost of Sales

Cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant management, certain compensations costs, and general facility overhead charges.

Selling, General and Administrative Expenses

The Company includes non-production related costs such as professional fees, selling charges and certain payroll in selling, general and administrative expenses.

Financial Instruments

Certain of the forward grain purchase and ethanol, distillers grains and non-food grade corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and non-food grade corn oil quantities expected to be produced by the Company over a reasonable period of time in the normal course of business. During fiscal year 2015, the Company began to carry a portion of its forward grain purchase contracts at fair value.

The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

Income Taxes

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual effective tax rate as adjusted for discrete items impacting the interim periods. The

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Company’s estimated annual effective tax rate includes the impact of its refined coal operation and the expected federal income tax credits to be earned in fiscal year 2017 beginning on the date of the refined coal acquisition (see Note 3). Based on current projections, the Company has estimated that its annual effective tax rate will be a tax benefit of approximately 4%, which is significantly less than prior estimates. As a result of the timing of the August 10, 2017 refined coal acquisition, the Company’s effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62% (as the cumulative effect of the reduced annual effective tax rate was recorded in the third quarter of fiscal year 2017), which then results in a year to date effective rate of a benefit of approximately 4%. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $6.8 million and $5.1 million during the nine months ended October 31, 2017 and 2016, respectively. The Company received refunds of state income taxes of approximately $0.5 million during the nine months ended October 31, 2017. The Company received no refunds of income taxes during the nine months ended October 31, 2016.

As of October 31, 2017 and January 31, 2017, total unrecognized tax benefits were approximately $2.0 million and $1.9 million, respectively. Accrued penalties and interest were approximately $0.3 million and $0.2 million at October 31, 2017 and January 31, 2017, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $1.3 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.

Inventories

Inventories are carried at the lower of cost or market on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities related to producing ethanol and related by-products and refined coal. Inventory is permanently written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. There were no significant permanent write-downs of inventory at October 31, 2017 and January 31, 2017. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory at a given point in time. The components of inventory are as follows as of the dates presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Ethanol and other finished goods		$	5,144		$	5,262
Work in process			2,881			2,359
Grain and other raw materials			16,120			9,436
Total		$	24,145		$	17,057

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Property and Equipment

Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 2 to 20 years for fixtures and equipment.

In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable, based on an analysis of undiscounted future expected cash flows from the use and ultimate disposition of the asset. There were no impairment charges in the first nine months of fiscal years 2017 or 2016. Impairment charges have historically resulted from the Company’s management performing cash flow analysis and have represented management’s estimate of the excess of net book value over fair value.

The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any. The Company generally determines the fair value of the asset group using a discounted cash flow model based on market participant assumptions (for income producing asset groups) or by obtaining appraisals based on the market approach and comparable market transactions (for non-income producing asset groups).

Investments

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company consolidates the results of four majority owned subsidiaries, One Earth Energy, LLC (“One Earth”), NuGen Energy, LLC (“NuGen”), Future Energy, LLC (“Future Energy”) and an entity that owns a refined coal facility. The results of One Earth are included on a delayed basis of one month lag as One Earth has a fiscal year end of December 31. NuGen and the refined coal entity have the same fiscal year as the parent, and therefore, there is no lag in reporting the results of NuGen or the refined coal entity. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Any unallocated excess is treated as goodwill and is recorded as a component of the carrying value of the equity method investee. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than

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temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established.

Comprehensive Income

The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income.

Accounting Changes and Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This standard simplifies the accounting treatment for excess tax benefits and deficiencies, forfeitures, and cash flow considerations related to share-based compensation. The Company adopted this standard February 1, 2017. The adoption of ASU 2016-09 did not impact the Company’s consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02 “Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet as a right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Company will be required to adopt this standard effective February 1, 2019. The Company has not completed its analysis of adopting this guidance but it does expect the adoption of this guidance to have a material impact on its Consolidated Balance Sheet related to the right to use asset and lease obligation liability to be recognized upon adoption of this guidance. The related leases are currently accounted for as operating leases (see Note 4).

The Company will be required to adopt the amended guidance in ASC Topic 606 “Revenue from Contracts with Customers”, which requires revenue recognition to reflect the transfer of promised goods or services to customers and replaces existing revenue recognition guidance. The updated standard permits the use of either the retrospective or cumulative effect transition method. The FASB had deferred the required adoption of the amended guidance by one year, from February 1, 2017 to February 1, 2018. The Company is progressing in its evaluation of adopting this guidance but it does not expect the adoption of this guidance to have a material impact on its consolidated financial statements with respect to measurement and recognition of revenue. The Company expects to adopt this guidance using the modified prospective method. The Company is still evaluating the impact of adopting this guidance on disclosures in the consolidated financial statements although it is expected to result in expanded disclosures regarding revenue from contracts with customers.

In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”, (“ASU 2015-17”) which requires that for a particular tax-paying component of an entity and within a particular tax jurisdiction, all deferred tax liabilities and assets shall be offset and presented as a single noncurrent amount. The Company prospectively adopted the amended guidance effective February 1, 2017. Prior periods were not retrospectively adjusted. The adoption of ASU 2015-17 did not affect net income attributable to REX common shareholders or retained earnings in the presented periods.

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Note 3. Business Combinations

On August 10, 2017, the Company, through a 95.35% owned subsidiary, purchased the entire ownership interest of an entity that owns a refined coal facility. The Company began operating its refined coal facility immediately after the acquisition. The Company expects that the revenues from the sale of refined coal produced in the facility will be subsidized by federal production tax credits through November 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the Internal Revenue Code.

The impact on the combined results of operations of the Company and the refined coal entity, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2016 is as follows:

Cost of sales would have increased by approximately $692,000 for the quarter ended October 31, 2016. Cost of sales would have increased by approximately $1,385,000 and $2,077,000 for the nine months ended October 31, 2017 and 2016, respectively. These pro forma increases are a result of increased depreciation expense as if the refined coal entity was consolidated during those periods. Selling, general and administrative expenses would have decreased by approximately $2,077,000 and $2,140,000 for the quarter and nine months ended October 31, 2017, respectively. Selling, general and administrative expenses would have increased by approximately $2,140,000 for the nine months ended October 31, 2016. These pro forma adjustments are a result of transaction costs occurring (on a pro forma basis) during the first quarter of fiscal year 2016. The benefit for income taxes would have increased by approximately $789,000 and $287,000 for the quarter and nine months ended October 31, 2017, respectively. The provision for income taxes would have decreased by approximately $263,000 and $1,602,000 for the quarter and nine months ended October 31, 2016, respectively. Net income attributable to REX common shareholders would have increased by approximately $1,228,000 and $447,000 for the quarter and nine months ended October 31, 2017, respectively. Net income attributable to REX common shareholders would have decreased by approximately $409,000 and $2,493,000 for the quarter and nine months ended October 31, 2016, respectively. Basic and diluted net income per share attributable to REX common shareholders would have increased by approximately $0.19 per share and $0.07 per share for the quarter and nine months ended October 31, 2017, respectively. Basic and diluted net income per share attributable to REX common shareholders would have decreased by approximately $0.06 per share and $0.38 per share for the quarter and nine months ended October 31, 2016, respectively.

The results of the Company’s refined coal operations (approximately $0.2 million of net sales and revenue and approximately $4.5 million of net income attributable to REX common shareholders, including the income tax benefit of estimated Section 45 credits to be earned) have been included in the consolidated financial statements subsequent to the acquisition date and are included in the Company’s refined coal segment.

The purchase price was $12,049,000, which was paid in cash. The acquisition was recorded by allocating the total purchase price to the assets acquired, based on their estimated fair values at the acquisition date. The purchase price allocation is based on the preliminary results of a valuation analysis. The purchase price allocation is preliminary until the valuation analysis is completed. The income approach was used to determine the fair values of assets acquired. The following table summarizes the estimated fair values of the assets acquired at the acquisition date (amounts in thousands):

Inventory	$	49
Property, plant and equipment		12,000
Total assets acquired and purchase price	$	12,049

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Transaction costs totaled approximately $2.1 million during the first nine months of fiscal year 2017 and are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.

Note 4. Leases

At October 31, 2017, the Company has lease agreements, as lessee, for rail cars and a natural gas pipeline. All of the leases are accounted for as operating leases. The following table is a summary of future minimum rentals on such leases (amounts in thousands):

Years Ended January 31,	Minimum Rentals
Remainder of 2018		$	1,774
2019			6,910
2020			5,700
2021			3,931
2022			3,299
Thereafter			3,026
Total		$	24,640

Note 5. Fair Value

The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), which provides a framework for measuring fair value under accounting principles generally accepted in the United States of America. This accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative instruments at fair value.

The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate. The fair values of property and equipment are determined by using various models that discount future expected cash flows.

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To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2017 are summarized below (amounts in thousands):

	Level 1			Level 2			Level 3			Fair Value
Commodity futures (1)		$	-		$	120		$	-		$	120
Investment in cooperative (2)			-			-			333			333
Total assets		$	-		$	120		$	333		$	453
Forward purchase contract liability (3)		$	-		$	287		$	-		$	287

Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2017 are summarized below (amounts in thousands):

	Level 1			Level 2			Level 3			Fair Value
Commodity futures (1)		$	-		$	45		$	-		$	45
Forward purchase contract asset (4)			-			163			-			163
Investment in cooperative (2)			-			-			333			333
Total assets		$	-		$	208		$	333		$	541
Forward purchase contract liability (3)		$	-		$	136		$	-		$	136

(1) Commodity futures are included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

(2) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets.

(3) The forward purchase contract liability is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets.

(4) The forward purchase contract asset is included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

The Company determined the fair value of the investment in cooperative by using a discounted cash flow analysis on the expected cash flows. Inputs used in the analysis include the face value of the allocated equity amount, the projected term for repayment based upon a historical trend, and a risk adjusted discount rate based on the expected compensation participants would demand because of the uncertainty of the future cash flows. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment.

There were no assets measured at fair value on a non-recurring basis at October 31, 2017 or January 31, 2017. As discussed in Note 3, the Company estimated the fair values of refined coal assets acquired using the income approach. This estimated fair value is a level 3 measurement.

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Note 6. Property and Equipment

The components of property and equipment are as follows for the periods presented (amounts in thousands):

	October 31, 2017				January 31, 2017
Land and improvements		$	21,074			$	20,951
Buildings and improvements			23,272				23,203
Machinery, equipment and fixtures			280,986				255,348
Construction in progress			6,590				1,046
			331,922				300,548
Less:  accumulated depreciation			(132,963	)			(117,787	)
Total		$	198,959			$	182,761

Note 7. Other Assets

The components of other assets are as follows for the periods presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Real estate taxes refundable		$	6,450		$	5,923
Deposits			5			155
Other			735			835
Total		$	7,190		$	6,913

Real estate taxes refundable represent amounts due One Earth associated with refunds of previously paid taxes in connection with a tax increment financing arrangement with local taxing authorities. Deposits are with utility and other vendors.

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Note 8. Accrued Expenses and Other Current Liabilities

The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Accrued utility charges		$	2,097		$	2,414
Accrued payroll and related items			2,855			4,279
Accrued real estate taxes			1,966			2,716
Accrued income taxes			52			2,120
Other			4,253			1,819
Total		$	11,223		$	13,348

Note 9. Revolving Lines of Credit

Effective April 1, 2016, One Earth and NuGen each entered into $10.0 million revolving loan facilities that matured April 1, 2017. During the second quarter of fiscal year 2017, One Earth and NuGen renewed the revolving loan facilities, which now mature June 1, 2018. Neither One Earth nor NuGen had outstanding borrowings on the revolving loans during the nine months ended October 31, 2017 and 2016.

Note 10. Derivative Financial Instruments

The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn) and sale (ethanol, distillers grains and non-food grade corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques.

The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands):

	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
	October 31, 2017		January 31, 2017		October 31, 2017		January 31, 2017
Commodity futures (1)	$	120	$	45	$	-	$	-
Forward purchase contracts (2)		-		163		287		136
Total	$	120	$	208	$	287	$	136

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(1) Commodity futures are included in prepaid expenses and other current assets. These contracts are short/sell positions for approximately 1.5 million and 0.7 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

(2) Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 4.7 million and 5.3 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

As of October 31, 2017, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements. The Company’s accounting policy is to offset positions amounts owed or owing with the same counterparty. As of October 31, 2017, the gross positions of the enforceable master netting agreements are not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparty may require collateral to secure the Company’s derivative contract position. As of October 31, 2017, the Company was required to maintain collateral with the counterparty in the amount of approximately $230,000 to secure the Company’s derivative position.

See Note 4 which contains fair value information related to derivative financial instruments.

Gains on the Company’s derivative financial instruments of approximately $75,000 and $115,000 for the third quarters of fiscal years 2017 and 2016, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations. Gains on the Company’s derivative financial instruments of approximately $1,052,000 and $1,740,000 for the first nine months of fiscal years 2017 and 2016, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations.

Note 11. Investments

The following table summarizes the Company’s equity method investment at October 31, 2017 and January 31, 2017 (dollars in thousands):

Entity	Ownership Percentage	Carrying Amount October 31, 2017	Carrying Amount January 31, 2017
Big River	10.3% at October 31, 2017 and 9.7% at January 31, 2017	$35,755	$37,833

Undistributed earnings of the Company’s equity method investee totaled approximately $15.7 million and $17.8 million at October 31, 2017 and January 31, 2017, respectively. The Company received dividends from its equity method investee of approximately $4.0 million during the first nine months of fiscal years 2017 and 2016.

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Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):

	Three Months Ended October 31,				Nine Months Ended October 31,
	2017		2016		2017		2016
Net sales and revenue	$	201,621	$	216,505	$	606,190	$	611,050
Gross profit	$	18,620	$	26,191	$	38,363	$	49,119
Income from continuing operations	$	11,010	$	18,934	$	19,628	$	33,555
Net income	$	11,010	$	18,934	$	19,628	$	33,555

Big River has debt agreements that limit amounts Big River can pay in the form of dividends or advances to owners. The restricted net assets of Big River at October 31, 2017 and January 31, 2017 are approximately $276.4 million and $278.7 million, respectively.

On June 1, 2015, Patriot Holdings, LLC (“Patriot”) and a subsidiary of CHS Inc. (“CHS”) completed a merger that resulted in CHS acquiring 100% of the ownership interest in Patriot. During the first quarter of fiscal year 2016, the Company received proceeds of approximately $2.3 million as partial payment for certain escrow holdbacks and adjustments to the purchase price. As a result, the Company recognized approximately $0.2 million as gain on sale of investment during the first quarter of fiscal year 2016. The Company does not expect any further proceeds or gain/loss on sale of investment to be significant.

Note 12. Employee Benefits

The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 550,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records noncash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At October 31, 2017, 511,174 shares remain available for issuance under the Plan. As a component of their compensation, restricted stock has been granted to directors at the closing market price of REX common stock on the date of the grant. In addition one third of executives’ incentive compensation is payable by an award of restricted stock based on the then closing market price of REX common stock.

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At October 31, and January 31, 2017, unrecognized compensation cost related to nonvested restricted stock was approximately $277,000 and $214,000, respectively. The following table summarizes non-vested restricted stock award activity for the nine months ended October 31, 2017 and 2016:

	Nine Months Ended October 31, 2017
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2017		23,350	$	1,386		2
Granted		14,156		1,370
Forfeited		-		-
Vested		8,091		481
Non-Vested at October 31, 2017		29,415	$	2,275		2

	Nine Months Ended October 31, 2016
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2016		3,168	$	200		2
Granted		21,502		1,269
Forfeited		-		-
Vested		1,320		83
Non-Vested at October 31, 2016		23,350	$	1,386		3

Note 13. Income Taxes

The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax

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authorities for years ended January 31, 2010 and prior. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):

	Nine Months Ended October 31,
	2017		2016
Unrecognized tax benefits, beginning of period	$	2,096	$	987
Changes for prior years’ tax positions		247		749
Changes for current year tax positions		-		491
Unrecognized tax benefits, end of period	$	2,343	$	2,227

Note 14. Commitments and Contingencies

The Company is involved in various legal actions arising in the normal course of business. After taking into consideration legal counsels’ evaluations of such actions, management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated Condensed Financial Statements.

One Earth and NuGen have combined forward purchase contracts for approximately 9.1 million bushels of corn, the principal raw material for their ethanol plants. They expect to take delivery of the grain through March 2018.

One Earth and NuGen have combined sales commitments for approximately 29.8 million gallons of ethanol, approximately 108,000 tons of distillers grains and approximately 16.7 million pounds of non-food grade corn oil. They expect to deliver the ethanol, distillers grains and non-food grade corn oil through December 2017.

The refined coal entity has various agreements (site license, operating agreements, etc.) containing payment terms based upon production of refined coal under which the Company is required to pay various fees. Since refined coal production began, these fees have totaled $2.4 million.

Note 15. Related-Party Transactions

During the third quarters of fiscal year 2017 and 2016, One Earth and NuGen purchased approximately $43.4 million and approximately $34.2 million, respectively, of corn from minority equity investors and board members of those subsidiaries. Such purchases totaled approximately $121.8 million and approximately $114.6 million for the nine months ended October 31, 2017 and 2016, respectively. The Company had amounts payable to related parties for corn purchases of approximately $2.7 million and $1.7 million at October 31, 2017 and January 31, 2017, respectively.

The Company recognized commission expense of approximately $1.6 million, payable to the minority investor in the refined coal entity. The commission expense is associated with the refined coal acquisition. The Company had accrued liabilities related to the commission expense of approximately $1.5 million at October 31, 2017.

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Note 16. Segment Reporting

In the third quarter of fiscal year 2017, the Company began reporting the results of its refined coal operations as a new segment as a result of the refined coal acquisition (see Note 3.) The Company has two segments: ethanol and by-products and refined coal. Historical amounts have been reclassified to conform to the current year segment reporting presentation. The Company evaluates the performance of each reportable segment based on net income attributable to REX common shareholders. The following table summarizes segment and other results and assets (amounts in thousands):

	Three Months Ended					Nine Months Ended
	October 31,					October 31,
	2017			2016		2017			2016
Net sales and revenue:
Ethanol and by-products	$	120,971		$	116,283	$	342,858		$	332,212
Refined coal 1		193			-		193			-
Total net sales and revenue	$	121,164		$	116,283	$	343,051		$	332,212
Segment gross profit (loss):
Ethanol and by-products	$	18,257		$	20,162	$	41,527		$	45,868
Refined coal		(3,390	)		-		(3,390	)		-
Total gross profit	$	14,867		$	20,162	$	38,137		$	45,868

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	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2017			2016			2017			2016
Income (loss) before income taxes:
Ethanol and by-products	$	15,554		$	17,682		$	31,807		$	37,294
Refined coal		(5,684	)		-			(5,684	)		-
Corporate and other		(611	)		(468	)		(2,389	)		(1,554	)
Total income (loss) before income taxes	$	9,259		$	17,214		$	23,734		$	35,740
Benefit (provision) for income taxes:
Ethanol and by-products	$	(4,379	)	$	(5,917	)	$	(9,712	)	$	(12,331	)
Refined coal 2		9,918			-			9,918			-
Corporate and other		196			177			837			560
Total benefit (provision) for income taxes	$	5,735		$	(5,740	)	$	1,043		$	(11,771	)
Segment profit (loss):
Ethanol and by-products	$	9,058		$	9,209		$	17,665		$	20,901
Refined coal		4,520			-			4,520			-
Corporate and other		(410	)		(271	)		(1,532	)		(949	)
Net income attributable to REX common shareholders	$	13,168		$	8,938		$	20,653		$	19,952

	October 31, 2017		January 31, 2017
Assets:
Ethanol and by-products	$	396,927	$	371,465
Refined coal		11,937		-
Corporate and other		65,481		82,559
Total assets	$	474,345	$	454,024

¹ The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold.

² The Company records its tax provision/benefit based on an estimated annual rate adjusted for items recorded discretely which it estimates to be approximately negative 4%. As a result of the timing of the refined coal acquisition on August 10, 2017, the Company’s effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62%, which then results in a year to date effective rate of a benefit of approximately 4%.

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	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
Sales of products, ethanol and by-products segment:
Ethanol	$	96,296	$	90,702	$	276,553	$	259,266
Dried distillers grains		16,703		19,551		45,325		55,551
Non-food grade corn oil		6,041		5,074		15,359		13,658
Modified distillers grains		1,889		853		5,557		3,400
Other		42		103		64		337
Total	$	120,971	$	116,283	$	342,858	$	332,212
Sales of products, refined coal segment:
Refined coal	$	193	$	-	$	193	$	-

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

Ethanol and by-Products

At October 31, 2017, investments in our ethanol business include equity investments in three ethanol limited liability companies, two of which we have a majority ownership interest in. The following table is a summary of ethanol gallons shipped at our plants:

Entity	Trailing 12 Months Ethanol Gallons Shipped	REX’s Current Effective Ownership Interest	Current Effective Ownership of Trailing 12 Months Ethanol Gallons Shipped
One Earth Energy, LLC	123.6 M	75.0%	92.7 M
NuGen Energy, LLC	131.9 M	99.5%	131.2
Big River Resources, LLC:
Big River Resources W Burlington, LLC	106.8 M	10.3%	11.0 M
Big River Resources Galva, LLC	124.6 M	10.3%	12.8 M
Big River United Energy, LLC	129.4 M	5.7%	7.4 M
Big River Resources Boyceville, LLC	57.1 M	10.3%	5.9 M
Total	673.4 M		261.0 M

Our ethanol operations are highly dependent on commodity prices, especially prices for corn, ethanol, distillers grains, non-food grade corn oil and natural gas. 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 a number of factors that affect commodity prices in general, including crop conditions, weather, federal policy and foreign trade. Because the market price of ethanol is not always directly related to corn prices (for example, crude and other energy prices can impact ethanol prices), at times ethanol prices may lag movements in corn prices and, in an environment of higher corn

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prices or lower ethanol prices, reduce the overall margin structure at the plants. As a result, at times, we may operate our plants at negative or marginally positive operating margins.

We expect our ethanol plants to produce approximately 2.8 gallons of denatured ethanol for each bushel of grain processed in the production cycle. We refer to the actual gallons of denatured ethanol produced per bushel of grain processed as the realized yield. We refer to the difference between the price per gallon of ethanol and the price per bushel of grain (divided by the realized yield) as the “crush spread”. Should the crush spread decline, it is possible that our ethanol plants will generate operating results that do not provide adequate cash flows for sustained periods of time. In such cases, production at the ethanol plants may be reduced or stopped altogether in order to minimize variable costs at individual plants. We also expect our ethanol plants to produce approximately 15.5 pounds of distillers grains and 0.7 pounds of non-food grade corn oil for each bushel of grain processed.

We attempt to manage the risk related to the volatility of commodity prices by utilizing forward grain purchase and forward ethanol, distillers grains and corn oil sale contracts and commodity futures agreements as management deems appropriate. We attempt to match quantities of these sale contracts with an appropriate quantity of grain purchase contracts over a given period of time when we can obtain an adequate gross 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 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 fixed price contracts cover, we generally cannot predict the future movements in the crush spread for more than four months; thus, we are unable to predict the likelihood or amounts of future income or loss from the operations of our ethanol facilities. We utilize derivative financial instruments, primarily exchange traded commodity future contracts, in conjunction with certain of our grain procurement activities.

Refined Coal

On August 10, 2017, we, through a 95.35% owned subsidiary, purchased the entire ownership interest of an entity that owns a refined coal facility for approximately $12.0 million. We began operating the refined coal facility immediately after the acquisition. We expect that the revenues from the sale of refined coal produced in the facility will be subsidized by federal production tax credits through November 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the Internal Revenue Code. In order to maintain compliance with Section 45 of the Internal Revenue Code, we are required to test every six months, through an independent laboratory, the effectiveness of our operations with respect to emissions reductions. Annually, the IRS publishes the amount of federal income tax credit earned per ton of refined coal produced and sold. We expect to earn credits at the rate of approximately $6.91 per ton of refined coal produced and sold during fiscal year 2017.

The refined coal facility is located at the site of a utility owned electrical generating power station, which is our refined coal operations sole customer. We expect refined coal production and sales amounts to vary with the demand requirements of the utility company, increasing during periods of colder and hotter weather conditions in the areas the utility company serves. We have contracted with an experienced third party to operate and maintain the refined coal facility and to provide us with management reporting and

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operating data as required. We do not have any employees on site at the refined coal facility.

Future Energy

During fiscal year 2013, we entered into a joint venture with Hytken HPGP, LLC (“Hytken”) to file and defend patents for eSteam technology relating to heavy oil and oil sands production methods, and to commercially exploit the technology to generate license fees, royalty income and development opportunities. The patented technology is an enhanced method of heavy oil recovery involving zero emissions downhole steam generation. We own 60% and Hytken owns 40% of the entity named Future Energy, LLC.

We have agreed to fund direct patent expenses relating to patent applications and defense, annual annuity fees and maintenance on a country by country basis, with the right to terminate funding and transfer related patent rights to Hytken. We may also fund, through loans, all costs relating to new intellectual property, consultants, and future research and development, pilot field tests and equipment purchases for commercialization stage of the patents. To date, we have paid approximately $1.8 million cumulatively for our ownership interest, patent and other expenses. We have not tested or proven the commercial feasibility of the technology.

Critical Accounting Policies and Estimates

During the three months ended October 31, 2017, we did not change any of our critical accounting policies as disclosed in our 2016 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 27, 2017 except for a new segment, refined coal, and reporting refined coal sales net of the cost of coal feedstock.

Fiscal Year

All references in this report to a particular fiscal year are to REX’s fiscal year ended January 31. For example, “fiscal year 2017” means the period February 1, 2017 to January 31, 2018.

Results of Operations

For a detailed analysis of period to period changes, see the segment discussion that follows this section as this is how management views and monitors our business.

Comparison of Three and Nine Months Ended October 31, 2017 and 2016

Net sales and revenue in the quarter ended October 31, 2017 were approximately $121.2 million compared to approximately $116.3 million in the prior year’s third quarter, representing an increase of approximately $4.9 million. The increase was primarily caused by higher sales in our ethanol and by-products segment of approximately $4.7 million. Net sales and revenue in the first nine months of fiscal year 2017 were approximately $343.1 million compared to approximately $332.2 million in the in the first nine months of fiscal year 2016, representing an increase of approximately $10.9 million. The increase was primarily caused by higher sales in our ethanol and by-products segment of approximately $10.6 million.

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Gross profit for the third quarter of fiscal year 2017 was approximately $14.9 million (12.3% of net sales and revenue) which was approximately $5.3 million lower compared to approximately $20.2 million of gross profit (17.3% of net sales and revenue) for the third quarter of fiscal year 2016. Gross profit for the third quarter of fiscal year 2017 decreased by $1.9 million compared to the prior year third quarter as a result of operations in the ethanol and by-products segment and by $3.4 million as a result of operations in the refined coal segment. Gross profit for the first nine months of fiscal year 2017 was approximately $38.1 million (11.1% of net sales and revenue) compared to approximately $45.9 million (13.8% of net sales and revenue) for the first nine months of fiscal year 2016. Gross profit for the first nine months of fiscal year 2017 decreased by $4.3 million compared to the prior year first nine months as a result of operations in the ethanol and by-products segment and by $3.4 million as a result of operations in the refined coal segment.

Selling, general and administrative expenses were approximately $7.3 million for the third quarter of fiscal year 2017 compared to approximately $5.1 million for the third quarter of fiscal year 2016. Such expenses were approximately $17.5 million for the first nine months of fiscal year 2017 compared to approximately $14.3 million for the first nine months of fiscal year 2016. The increases are primarily related to professional fees and commission expense associated with the refined coal acquisition. We expect selling, general and administrative expenses to remain consistent with fiscal year 2016 results in future periods, with the exception of variability of incentive compensation which is based upon Company profitability.

During the third quarters of fiscal years 2017 and 2016, we recognized income of approximately $1.1 million and $1.8 million, respectively, from our equity investment in Big River, which is included in our ethanol and by-products segment results. Such income was approximately $1.9 million and $3.3 million during the first nine months of fiscal year 2017 and 2016, respectively. Our investment in Big River, which has interests in four ethanol production plants, has an effective ownership of ethanol gallons shipped in the trailing twelve months ended October 31, 2017 of approximately 360 million gallons. Big River’s results in fiscal year 2017 have been negatively impacted by an asset impairment charge which reduced our equity method income by approximately $0.5 million. Due to the inherent volatility of commodity prices within the ethanol industry, we cannot predict the likelihood of future operating results from Big River being similar to historical results.

Until the second quarter of fiscal year 2015, we owned a minority interest in Patriot. On June 1, 2015 Patriot and a subsidiary of CHS Inc. (“CHS”) completed a merger that resulted in CHS acquiring 100% of the ownership interest in Patriot. During the first quarter of fiscal year 2016, we received proceeds of approximately $2.3 million as partial payment for certain escrow holdbacks and adjustments to the purchase price related to the merger between Patriot and CHS. As a result, we recognized approximately $0.2 million as gain on sale of investment during the first quarter of fiscal year 2016. We do not expect any further proceeds or gain/loss on sale of investment to be significant.

Gain on disposal of property and equipment of approximately $0.2 million and $0.4 million during the third quarter and first nine months of fiscal year 2016 relate to real estate properties sold. No such properties were sold during the first nine months of fiscal year 2017. We expect gain on disposal of property and equipment to be insignificant for the remainder of fiscal year 2017.

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Interest and other income was approximately $0.7 million for the third quarter of fiscal year 2017 versus approximately $0.1 million for the third quarter of fiscal year 2016. Interest and other income was approximately $1.3 million for the first nine months of fiscal year 2017 versus approximately $0.4 million for the first nine months of fiscal year 2016. The income has increased as yields on our excess cash have improved compared to fiscal year 2016. In addition, we received a federal grant of approximately $0.2 million during the third quarter of fiscal year 2017.

As a result of the foregoing, income before income taxes was approximately $9.3 million for the third quarter of fiscal year 2017 versus approximately $17.2 million for the third quarter of fiscal year 2016. Income before income taxes was approximately $23.7 million for the first nine months of fiscal year 2017 versus approximately $35.7 million for the first nine months of fiscal year 2016.

Our effective tax rate was approximately (61.9)% and 33.3% for the third quarters of fiscal years 2017 and 2016, respectively, and (4.4)% and 32.9% for the first nine months of fiscal years 2017 and 2016, respectively. The fluctuation in the rate results primarily from the production tax credits we expect to receive associated with our refined coal segment. We record our tax provision/benefit based on an estimated annual effective rate adjusted for items recorded discretely. Our estimated annual effective tax rate includes the impact of our refined coal operation and the expected federal income tax credits to be earned in fiscal year 2017 beginning on the date of the refined coal acquisition. Based on our current projections we have estimated that our annual effective tax rate will result in a tax benefit of approximately 4%. As a result of the timing of the August 10, 2017 refined coal acquisition, our effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62% (as the cumulative effect of the reduced annual effective tax rate was recorded in the third quarter of fiscal year 2017), which then results in a year to date effective rate of a benefit of approximately 4%.

As a result of the foregoing, net income was approximately $15.0 million for the third quarter of fiscal year 2017 compared to approximately $11.5 million for the third quarter of fiscal year 2016. Net income was approximately $24.8 million for the first nine months of fiscal year 2017 compared to approximately $24.0 million for the first nine months of fiscal year 2016.

Income related to noncontrolling interests was approximately $1.8 million and approximately $2.5 million during the third quarters of fiscal years 2017 and 2016, respectively, and was approximately $4.1 million and approximately $4.0 million during the first nine months of fiscal years 2017 and 2016, respectively. These amounts represent the owners’ (other than us) share of the income or loss of NuGen, One Earth, the refined coal entity and Future Energy.

As a result of the foregoing, net income attributable to REX common shareholders for the third quarter of fiscal year 2017 was approximately $13.2 million, an increase of approximately $4.2 million from approximately $8.9 million for the third quarter of fiscal year 2016. Net income attributable to REX common shareholders for the first nine months of fiscal year 2017 was approximately $20.7 million, an increase of approximately $0.7 million from approximately $20.0 million for the first nine months of fiscal year 2016.

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Business Segment Results

In the third quarter of fiscal year 2017, we began reporting the results of our refined coal operations as a new segment as a result of the acquisition of a refined coal entity (see Note 3.) We now have two segments: ethanol and by-products and refined coal. Historical amounts have been reclassified to conform to the current year segment reporting presentation. We evaluate the performance of each reportable segment based on segment profit. Segment profit excludes indirect interest income and certain other items that are included in net income determined in accordance with accounting principles generally accepted in the United States of America. Segment profit includes realized and unrealized gains and losses on derivative financial instruments and the provision/benefit for income taxes.

The following sections discuss the results of operations for each of our business segments and corporate and other. Amounts in the corporate and other category include activities that are not separately reportable or related to a segment.

The following table summarizes segment and other results (amounts in thousands):

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2017			2016			2017			2016
Net sales and revenue:
Ethanol and by-products	$	120,971		$	116,283		$	342,858		$	332,212
Refined coal 1		193			-			193			-
Total net sales and revenue	$	121,164		$	116,283		$	343,051		$	332,212
Segment gross profit (loss):
Ethanol and by-products	$	18,257		$	20,162		$	41,527		$	45,868
Refined coal		(3,390	)		-			(3,390	)		-
Total gross profit	$	14,867		$	20,162		$	38,137		$	45,868
Income (loss) before income taxes:
Ethanol and by-products	$	15,554		$	17,682		$	31,807		$	37,294
Refined coal		(5,684	)		-			(5,684	)		-
Corporate and other		(611	)		(468	)		(2,389	)		(1,554	)
Total income (loss) before income taxes	$	9,259		$	17,214		$	23,734		$	35,740
Benefit (provision) for income taxes:
Ethanol and by-products	$	(4,379	)	$	(5,917	)	$	(9,712	)	$	(12,331	)
Refined coal 2		9,918			-			9,918			-
Corporate and other		196			177			837			560
Total benefit (provision) for income taxes	$	5,735		$	(5,740	)	$	1,043		$	(11,771	)

¹ We record sales in the refined coal segment net of the cost of coal as we purchase the coal feedstock from the customer to which refined coal is sold.

² We record our tax provision/benefit based on an estimated annual rate adjusted for items recorded

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discretely, which it estimates to be approximately negative 4%. As a result of the timing of the August 10, 2017 refined coal acquisition during the third quarter of fiscal year 2017, our effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62%, which then results in a year to date effective rate of a benefit of approximately 4%.

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2017			2016			2017			2016
Segment profit (loss):
Ethanol and by-products		9,058			9,209			17,665			20,901
Refined coal		4,520			-			4,520			-
Corporate and other		(410	)		(271	)		(1,532	)		(949	)
Net income attributable to REX common shareholders	$	13,168		$	8,938		$	20,653		$	19,952

Ethanol and by-Products

The ethanol and by-products segment includes the consolidated financial results of One Earth and NuGen, our equity investment in Big River and certain administrative expenses.

The following table summarizes sales from One Earth and NuGen by product group (amounts in thousands):

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
Sales of products, ethanol and by-products segment:
Ethanol	$	96,296	$	90,702	$	276,553	$	259,266
Dried distillers grains		16,703		19,551		45,325		55,551
Non-food grade corn oil		6,041		5,074		15,359		13,658
Modified distillers grains		1,889		853		5,557		3,400
Other		42		103		64		337
Total	$	120,971	$	116,283	$	342,858	$	332,212

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The following table summarizes selected operating data from One Earth and NuGen:

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
Average selling price per gallon of ethanol	$	1.45	$	1.44	$	1.45	$	1.42
Gallons of ethanol sold (in millions)		66.4		62.8		191.1		182.5
Average selling price per ton of dried distillers grains	$	108.34	$	122.34	$	101.44	$	127.27
Tons of dried distillers grains sold		154,178		159,812		446,813		436,474
Average selling price per pound of non-food grade corn oil	$	0.30	$	0.29	$	0.29	$	0.27
Pounds of non-food grade corn oil sold (in millions)		20.2		17.6		53.3		49.7
Average selling price per ton of modified distillers grains	$	41.64	$	45.17	$	41.53	$	54.49
Tons of modified distillers grains sold		45,366		18,876		133,800		62,393
Average cost per bushel of grain	$	3.35	$	3.30	$	3.39	$	3.51
Average cost of natural gas (per mmbtu)	$	3.22	$	3.31	$	3.41	$	3.08

Ethanol sales increased from approximately $90.7 million in the third quarter of fiscal year 2016 to approximately $96.3 million in the third quarter of fiscal year 2017, primarily a result of a 6% increase in gallons sold. Dried distillers grains sales decreased from approximately $19.6 million in the third quarter of fiscal year 2016 to approximately $16.7 million in the third quarter of fiscal year 2017, primarily a result of a $14.00 decline in the price per ton sold. Management believes the decline in the selling price results primarily from the ongoing uncertainty of Chinese imports of domestic dried distillers grains as the China Ministry of Commerce had announced an anti-dumping and countervailing duty investigation in January 2016 and has imposed an anti-dumping tariff and a countervailing duty on U.S. dried distillers grains exports to China. In a final ruling in January 2017, China increased the dried distillers grains anti-dumping duty to a range of 42.2% up to 53.7% and the dried distillers grains countervailing duty to a range of 11.2% up to 12.0%. In November 2017, the China Ministry of Commerce announced that the countervailing duty would be repealed. In addition, Vietnam suspended imports of U.S. dried distillers grains for a majority of fiscal year 2017 and this also contributed to the decline in DDG prices. In September of 2017, Vietnam lifted its ban on imports of U.S. dried distillers grains. Non-food grade corn oil sales increased from approximately $5.1 million in the third quarter of fiscal year 2016 to approximately $6.0 million in the third quarter of fiscal year 2017, primarily a result of a 15% increase in pounds sold. Modified distillers grains sales increased from approximately $0.9 million in the third quarter of fiscal year 2016 to approximately $1.9 million in the third quarter of fiscal year 2017, primarily a result of a 140% increase in tons sold.

Ethanol sales increased from approximately $259.3 million in the first nine months of fiscal year 2016 to approximately $276.6 million in the first nine months of fiscal year 2017, primarily a result of an increase of 8.6 million gallons sold and a $0.03 increase in the price per gallon sold. Dried distillers grains sales decreased from approximately $55.6 million in the first nine months of fiscal year 2016 to approximately $45.3 million in the first nine months of fiscal year 2017, primarily a result of a $25.83

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decline in the price per ton sold. Management believes the decline in the selling price results from the same reasons as described in the preceding paragraph. Non-food grade corn oil sales increased from approximately $13.7 million in the first nine months of fiscal year 2016 to approximately $15.4 million in the first nine months of fiscal year 2017, primarily a result of slight increases in the price per pound sold and quantities sold. Modified distillers grains sales increased from approximately $3.4 million in the first nine months of fiscal year 2016 to approximately $5.6 million in the first nine months of fiscal year 2017, primarily a result of a 114% increase in tons sold which was partially offset by a decline of $12.96 in the price per ton sold.

We expect that sales in future periods will be based upon the following (One Earth and NuGen only):

Product	Annual Sales Quantity
Ethanol	260 million to 280 million gallons
Dried distillers grains	590,000 to 630,000 tons
Non-food grade corn oil	70 million to 90 million pounds
Modified distillers grains	170,000 to 200,000 tons

This expectation assumes that One Earth and NuGen will continue to operate at or above historical production levels, which is dependent upon the crush spread realized. We may vary the amounts of ethanol, dried and modified distillers grains and corn oil production, and thus, the resulting sales, based upon market conditions. NuGen has received the EPA pathway approval and has permits to increase its production levels to 150 million gallons annually. One Earth has received the EPA pathway approval and has permits to increase its production levels to 131 million gallons annually. We plan to increase production levels over time dependent on market conditions, plant profitability and the completion of capacity expansion projects.

Gross profit for the third quarter of fiscal year 2017 was approximately $18.3 million (15.1% of net sales and revenue), which was approximately $1.9 million lower compared to approximately $20.2 million of gross profit (17.3% of net sales and revenue) for the third quarter of fiscal year 2016. The crush spread for the third quarter of fiscal year 2017 was approximately $0.29 per gallon of ethanol sold compared to the third quarter of fiscal year 2016 which was approximately $0.31 per gallon of ethanol sold. The decline of approximately $2.8 million in sales of dried distillers grains compared to the third quarter of fiscal year 2016 negatively affected gross profit. Management believes this decline results primarily from the continued uncertainty regarding future Chinese and Vietnamese imports of U. S produced distillers grains. Grain accounted for approximately 76% ($78.2 million) of our cost of sales during the third quarter of fiscal year 2017 compared to approximately 75% ($72.5 million) during the third quarter of fiscal year 2016. Natural gas accounted for approximately 5% ($5.6 million) of our cost of sales during the third quarter of fiscal year 2017 compared to approximately 6% ($5.3 million) during the third quarter of fiscal year 2016. The volume of ethanol sold during the third quarter of fiscal year 2017 compared to the third quarter of fiscal year 2016 positively impacted gross profit by approximately $1.0 million. In addition, corn oil sales positively impacted gross profit in the third quarter of fiscal year 2017 by approximately $1.0 million compared to the third quarter of fiscal year 2016.

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Gross profit for the first nine months of fiscal year 2017 was approximately $41.5 million (12.1% of net sales and revenue) which was approximately $4.4 million lower compared to approximately $45.9 million of gross profit (13.8% of net sales and revenue) for the first nine months of fiscal year 2016. The crush spread for the first nine months of fiscal year 2017 was approximately $0.26 per gallon of ethanol sold compared to approximately $0.20 per gallon of ethanol sold during the first nine months of fiscal year 2016. The decline of approximately $10.2 million in sales of dried distillers grain compared to the first nine months of fiscal year 2016 negatively affected gross profit. Grain accounted for approximately 76% ($229.1 million) of our cost of sales during the first nine months of fiscal year 2017 compared to approximately 77% ($221.3 million) during the first nine months of fiscal year 2016. Natural gas accounted for approximately 6% ($16.8 million) of our cost of sales during the first nine months of fiscal year 2017 compared to approximately 5% ($14.4 million) during the first nine months of fiscal year 2016. Given the inherent volatility in ethanol, distillers grains, non-food grade corn oil, grain and natural gas prices, we cannot predict the likelihood that the spread between ethanol, distillers grains, non-food grade corn oil and grain prices in future periods will be consistent compared to historical periods. The volume of ethanol sold during the first nine months of fiscal year 2017 compared to the first nine months of fiscal year 2016 positively impacted gross profit by approximately $2.2 million. In addition, corn oil sales positively impacted gross profit in the first nine months of fiscal year 2017 by approximately $1.7 million compared to the first nine months of fiscal year 2016. Plant related repairs and maintenance expense was approximately $2.1 million higher in the first nine months of fiscal year 2017 compared to the first nine months of fiscal year 2016; as our ethanol plants continue to age and operate at their current capacities, we expect plant related repairs and maintenance expense to continue to increase over time.

We attempt to match quantities of ethanol, distillers grains and non-food grade corn oil sale contracts with an appropriate quantity of grain purchase contracts over a given period of time 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 the crush spread for more than four months. Based on existing contracts at the end of the third quarter of fiscal year 2017, none of our forecasted ethanol, approximately 13% of our forecasted distillers grains and approximately 20% of our forecasted non-food grade corn oil production during the next 12 months have been sold under fixed-price contracts. The effect of a 10% adverse change in the price of ethanol, distillers grains and non-food grade corn oil from the current pricing would result in a decrease in annual revenues of approximately $47.8 million for the remaining forecasted sales. Similarly, approximately 1% of our estimated corn usage for the next 12 months was subject to fixed-price contracts. The effect of a 10% adverse change in the price of corn from the current pricing would result in an increase in annual cost of goods sold of approximately $32.1 million for the remaining forecasted grain purchases. Approximately 6% of our estimated natural gas usage for the next 12 months was subject to fixed-price contracts. The effect of a 10% adverse change in the price of natural gas from the current pricing would result in an increase in annual cost of goods sold of approximately $2.0 million for the remaining forecasted natural gas purchases.

Selling, general and administrative expenses for the third quarter of fiscal year 2017 were approximately $4.3 million, consistent with the third quarter of fiscal year 2016 amount of $4.4 million.

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Such expenses for the first nine months of fiscal year 2017 were approximately $12.4 million, consistent with the first nine months of fiscal year 2016 amount of $12.2 million.

Interest and other income was approximately $0.6 million for the third quarter of fiscal year 2017 versus approximately $0.1 million for the third quarter of fiscal year 2016. Interest and other income was approximately $0.8 million for the first nine months of fiscal year 2017 versus approximately $0.2 million for the first nine months of fiscal year 2016. The income has increased as yields on our excess cash have improved compared to fiscal year 2016.

Income related to noncontrolling interests was approximately $2.1 million and approximately $2.5 million during the third quarters of fiscal years 2017 and 2016, respectively, and was approximately $4.4 million and approximately $4.1 million during the first nine months of fiscal years 2017 and 2016, respectively. These amounts represent the owners’ (other than us) share of the income of NuGen and One Earth.

Segment profit for the third quarter of fiscal year 2017 was approximately $9.1 million consistent with the prior year third quarter profit of approximately $9.2 million. Segment profit for the first nine months of fiscal year 2017 was approximately $17.7 million, a decrease of approximately $3.2 million from approximately $20.9 million for the first nine months of fiscal year 2016. The decrease from fiscal year 2016 results is primarily related to reduced dried distillers grains pricing, increased natural gas costs and increased repairs and maintenance expenditures.

Refined Coal

The refined coal segment includes the consolidated financial results of our refined coal entity and certain administrative expenses. We acquired the refined coal entity during the third quarter of fiscal year 2017.

The following table summarizes sales from refined coal operations by product group (amounts in thousands):

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
Sales of products, refined coal segment:
Refined coal 1	$	193	$	-	$	193	$	-

¹ We record sales in the refined coal segment net of the cost of coal as we purchase the coal feedstock from the customer to which refined coal is sold.

Refined coal sales were approximately $0.2 million in the third quarter and first nine months of fiscal year 2017, the initial period we reported the results of refined coal operations. We expect future period sales to vary depending on fluctuations in demand from the site host utility which generally change based upon weather conditions in the geographic markets the utility serves.

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Gross loss was approximately $3.4 million in the third quarter and first nine months of fiscal year 2017. We expect future period gross loss to vary similar to the sales fluctuations described above. Based on the agreements in place that govern the operation, sales and purchasing activities of the refined coal plant, we expect the refined coal operation to continue operating at a gross loss; and that the ongoing losses will be subsidized by federal production income tax credits.

Selling, general and administrative expenses were approximately $2.3 million in the third quarter and first nine months of fiscal year 2017. These expenses include approximately $1.6 million of commission expense, payable to the minority investor in the refined coal entity. The commission expense is associated with the refined coal acquisition. As such, we expect future period expenses to be less than $1.0 million per quarter.

Income related to noncontrolling interests was approximately $0.3 million during the third quarter and first nine months of fiscal year 2017. This amount represents the owners’ (other than us) share of the pre-tax loss of refined coal operations.

As a result of the foregoing including the benefit of federal tax credits associated with refined coal production and sales, segment profit for the third quarter and first nine months of fiscal year 2017 was approximately $4.5 million.

Corporate and Other

Selling, general and administrative expenses for the third quarter of fiscal year 2017 were approximately $0.8 million consistent with $0.7 million of expenses for the third quarter of fiscal year 2016. Such expenses were approximately $2.9 million for the first nine months of fiscal year 2017 compared to approximately $2.1 million for the first nine months of fiscal year 2016. The increase is primarily related to higher professional expenses associated with due diligence and other efforts related to researching the refined coal operations prior to our refined coal acquisition.

Interest and other income was approximately $0.2 million for the third quarter of fiscal year 2017 versus approximately $0.1 million for the third quarter of fiscal year 2016. Interest and other income was approximately $0.5 million for the first nine months of fiscal year 2017 versus approximately $0.2 million for the first nine months of fiscal year 2016. The income has increased as yields on our excess cash have improved compared to fiscal year 2016.

Gain on disposal of property and equipment of approximately $0.2 million and $0.3 million during the third quarter and first nine months of fiscal year 2016 relate to real estate properties sold. No such properties were sold during the first nine months of fiscal year 2017. We expect gain on disposal of property and equipment to be insignificant for the remainder of fiscal year 2017.

Loss related to noncontrolling interests was insignificant during the third quarters and first nine months of fiscal year 2017 and 2016. This amount represents the owners’ (other than us) share of the loss of Future Energy.

Corporate and other expenses exceeded interest and other income and gain on disposal of property and equipment, for the third quarter of fiscal year 2017 by approximately $0.4 million, consistent with the

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$0.3 million loss for the third quarter of fiscal year 2016 and was approximately $1.5 million, an increase of approximately $0.6 million from approximately $0.9 million for the first nine months of fiscal year 2016. The increase from fiscal year 2016 results is primarily related to increased professional expenses, not allocated to the ethanol and by-products or refined coal segments described above.

Liquidity and Capital Resources

Net cash provided by operating activities was approximately $34.1 million for the first nine months of fiscal year 2017, compared to approximately $41.4 million for the first nine months of fiscal year 2016. For the first nine months of fiscal year 2017, cash was provided by net income of approximately $24.8 million, adjusted for non-cash items of approximately $9.0 million, which consisted of depreciation and amortization, income from equity method investments, the deferred income tax provision and stock based compensation expense. Big River paid dividends to REX of approximately $4.0 million during the first nine months of fiscal year 2017. A decrease in the balance of accounts receivable provided cash of approximately $2.0 million, which was primarily a result of the timing of customer shipments and payments. An increase in the balance of inventories used cash of approximately $7.0 million, which was primarily a result of the timing of receipt of raw materials as we took advantage of purchasing opportunities that existed during the first nine months of fiscal year 2017. An increase in the balance of accounts payable provided cash of approximately $2.2 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other current liabilities used cash of approximately $0.8 million which was primarily a result of payments of incentive compensation and real estate taxes.

Net cash provided by operating activities was approximately $41.4 million for the first nine months of fiscal year 2016. For the first nine months of fiscal year 2016, cash was provided by net income of approximately $24.0 million, adjusted for non-cash items of approximately $9.7 million, which consisted of depreciation and amortization, income from equity method investments, gain on disposal of real estate and property and equipment, net, gain on sale of investment and the deferred income tax provision. We received dividends from Big River of approximately $4.0 million during the first nine months of fiscal year 2016. An increase in the balance of accounts receivable used cash of approximately $1.7 million, which was primarily a result of the timing of customer shipments and payments. An increase in the balance of inventories used cash of approximately $2.3 million, which was primarily a result of the timing of receipt of raw materials as we took advantage of purchasing opportunities that existed during the third quarter of fiscal year 2016. A decrease in the balance of other assets provided cash of approximately $2.8 million, as prior year overpayments of income taxes were used to reduce estimates of our current year liabilities. An increase in the balance of accounts payable provided cash of approximately $1.7 million, which was primarily a result of the timing of inventory receipts and vendor payments. An increase in the balance of other current liabilities provided cash of approximately $3.2 million which was primarily a result of higher accruals for our income tax provision.

At October 31, 2017, working capital was approximately $209.4 million, compared to approximately $204.0 million at January 31, 2017. The ratio of current assets to current liabilities was 10.1 to 1 at October 31, 2017 and January 31, 2017.

Cash of approximately $31.2 million was used in investing activities for the first nine months of fiscal year 2017, compared to approximately $7.6 million during the first nine months of fiscal year 2016.

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During the first nine months of fiscal year 2017, we had capital expenditures of approximately $19.3 million, the majority of which were plant capacity expansion projects at the One Earth and NuGen ethanol plants. We expect to spend between $2.0 million and $3.0 million during the remainder of fiscal year 2017 on various capital projects. During the first nine months of fiscal year 2017, we used cash of approximately $12.0 for the refined coal acquisition.

Cash of approximately $7.6 million was used in investing activities for the first nine months of fiscal year 2016. During the first nine months of fiscal year 2016, we had capital expenditures of approximately $11.8 million, primarily related to improvements at the One Earth and NuGen ethanol plants. During the first nine months of fiscal year 2016, we received approximately $2.3 million as partial payment for certain escrow holdbacks and adjustments to the purchase price related to the sale of our equity investment in Patriot. We received approximately $1.5 million of proceeds from the sale of three real estate properties during the first nine months of fiscal year 2016.

Cash used in financing activities totaled approximately $1.0 million for the first nine months of fiscal year 2017 compared to approximately $6.8 million for the first nine months of fiscal year 2016. During the first nine months of fiscal year 2017, we used cash of approximately $1.7 million to purchase shares from and pay dividends to noncontrolling members of One Earth. During the first nine months of fiscal year 2017, we received approximately $0.7 million in capital contributions from the minority investor in the refined coal entity. We expect to continue to receive these capital contributions in the future as we expect the minority investor to continue funding its proportionate share of refined coal operating losses.

Cash used in financing activities totaled approximately $6.8 million for the first nine months of fiscal year 2016. During the first nine months of fiscal year 2016, we used cash of approximately $4.7 million to purchase approximately 95,000 shares of our common stock in open market transactions. During the first nine months of fiscal year 2016, we used cash of approximately $2.1 million to purchase shares from and pay dividends to noncontrolling members of One Earth and NuGen.

We are investigating various uses for our excess cash. We have a stock buyback program, and given our current authorization level, can repurchase a total of approximately 155,000 shares. We also plan to seek and evaluate investment opportunities including energy related, agricultural or other ventures we believe fit our investment criteria.

Effective April 1, 2016, One Earth and NuGen each entered into $10.0 million revolving loan facilities that matured April 1, 2017. One Earth and NuGen renewed the revolving loan facilities, which mature June 1, 2018, during the second quarter of fiscal year 2017. Neither One Earth nor NuGen had outstanding borrowings on the revolving loans during the nine months ended October 31, 2017. These agreements do not contain any financial covenants.

Forward-Looking Statements

This Form 10-Q contains or may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks

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and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the impact of legislative changes, the price volatility and availability of corn, distillers grains, ethanol, non-food grade corn oil, gasoline, natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, results of income tax audits, changes in income tax laws or regulations and the effects of terrorism or acts of war. The Company does not intend to update publicly any forward-looking statements except as required by law. Other factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2017 (File No. 001-09097).

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to the impact of market fluctuations associated with commodity prices as discussed below.

We manage a portion of our risk with respect to the volatility of commodity prices inherent in the ethanol industry by using forward purchase and sale contracts. At October 31, 2017, One Earth and NuGen combined have forward purchase contracts for approximately 9.1 million bushels of corn, the principal raw material for their ethanol plants. One Earth and NuGen expect to take delivery of the corn through March 2018. At October 31, 2017, One Earth and NuGen have combined sales commitments for approximately 29.8 million gallons of ethanol, approximately 108,000 tons of distillers grains and approximately 16.7 million pounds of non-food grade corn oil. One Earth and NuGen expect to deliver the ethanol, distillers grains and non-food grade corn oil through December 2017. None of our forecasted ethanol sales during the next 12 months have been sold under fixed-price contracts. As a result, the effect of a 10% adverse move in the price of ethanol from the current pricing would result in a decrease in annual revenues of approximately $38.8 million. Approximately 13% of our forecasted distillers grains sales during the next 12 months have been sold under fixed-price contracts. As a result, the effect of a 10% adverse move in the price of distillers grains from the current pricing would result in a decrease in annual revenues of approximately $7.0 million. Approximately 20% of our forecasted non-food grade corn oil sales during the next 12 months have been sold under fixed-price contracts. As a result, the effect of a 10% adverse move in the price of non-food grade corn oil from the current pricing would result in a decrease in annual revenues of approximately $2.0 million. Similarly, approximately 1% of our estimated corn usage for the next 12 months was subject to fixed-price contracts. As a result, the effect of a 10% adverse move in the price of corn from the current pricing would result in an increase in annual cost of goods sold of approximately $32.1 million. Approximately 6% of our estimated natural gas usage for the next 12 months was subject to fixed-price contracts. As a result, the effect of a 10% adverse move in the price of natural gas from the current pricing would result in an increase in annual cost of goods sold of approximately $2.0 million.

Item 4. Controls and Procedures

Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer

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concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are not party to any legal proceedings that we believe would, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors

During the quarter ended October 31, 2017, there have been no material changes to the risk factors discussed in our Annual Report on Form 10-K for the year ended January 31, 2017 except for those risk factors related to refined coal that were disclosed in Item 1A to the Form 10-Q for the quarter ended July 31, 2017, which are hereby incorporated by reference.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Dividend Policy

REX did not pay dividends in the current or prior years. We currently have no restrictions on the payment of dividends. None of our consolidated subsidiaries have restrictions on their ability to pay dividends to us. During the first nine months of fiscal year 2017, One Earth paid dividends to REX of approximately $5.1 million. During the first nine months of fiscal year 2017, NuGen did not pay dividends.

Item 3. Defaults upon Senior Securities

Not Applicable

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

38

Item 6. Exhibits

The following exhibits are filed with this report:

31 Rule 13a-14(a)/15d-14(a) Certifications

32 Section 1350 Certifications

101 The following information from REX American Resources Corporation Quarterly Report on Form 10-Q for the quarter ended October 31, 2017, formatted in XBRL: (i) Consolidated Condensed Balance Sheets, (ii) Consolidated Condensed Statements of Operations, (iii) Consolidated Condensed Statements of Equity, (iv) Consolidated Condensed Statements of Cash Flows and (v) Notes to Consolidated Condensed Financial Statements.

39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

REX American Resources Corporation

Registrant

Signature	Title	Date
/s/ Zafar Rizvi (Zafar Rizvi) /s/ Douglas L. Bruggeman (Douglas L. Bruggeman)	Chief Executive Officer and President (Chief Executive Officer) Vice President, Finance and Treasurer (Chief Financial Officer)	December 6, 2017 December 6, 2017

40

EX-31

Exhibit 31

CERTIFICATIONS

I, Zafar Rizvi, certify that:

1.      I have reviewed this quarterly report on Form 10-Q of REX American Resources Corporation;

2.      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.      The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.      The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 6, 2017

/s/ Zafar Rizvi

Zafar Rizvi

Chief Executive Officer and President

CERTIFICATIONS

I, Douglas L. Bruggeman, certify that:

1.      I have reviewed this quarterly report on Form 10-Q of REX American Resources Corporation;

2.      Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.      Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.      The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.      The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 6, 2017

/s/ Douglas L. Bruggeman

Douglas L. Bruggeman

Vice President, Finance, Treasurer and

Chief Financial Officer

EX-32

Exhibit 32

REX American Resources Corporation
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED BY SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officers of REX American Resources Corporation (the “Company”) hereby certify, to their knowledge, that the Company’s Quarterly Report on Form 10-Q for the period ended October 31, 2017 which this certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Zafar Rizvi
Zafar Rizvi
Chief Executive Officer and President

/s/ Douglas L. Bruggeman
Douglas L. Bruggeman
Vice President, Finance, Treasurer and

Chief Financial Officer

Date: December 6, 2017

XML

Document And Entity Information - shares	9 Months Ended
	Oct. 31, 2017	Dec. 05, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	REX AMERICAN RESOURCES Corp
Document Type	10-Q
Current Fiscal Year End Date	--01-31
Entity Common Stock, Shares Outstanding		6,566,769
Amendment Flag	false
Entity Central Index Key	0000744187
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Oct. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3

XML

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Current assets:
Cash and cash equivalents	$ 190,460	$ 188,576
Restricted cash	230	130
Accounts receivable	9,801	11,901
Inventory	24,145	17,057
Refundable income taxes	977	1,070
Prepaid expenses and other	6,828	6,959
Deferred taxes, net		824
Total current assets	232,441	226,517
Property and equipment, net	198,959	182,761
Other assets	7,190	6,913
Equity method investments	35,755	37,833
Total assets	474,345	454,024
Current liabilities:
Accounts payable, trade	11,778	9,171
Accrued expenses and other current liabilities	11,223	13,348
Total current liabilities	23,001	22,519
Long-term liabilities:
Deferred taxes	34,629	41,135
Other long-term liabilities	3,343	2,096
Total long-term liabilities	37,972	43,231
REX shareholders’ equity:
Common stock	299	299
Paid-in capital	146,887	145,767
Retained earnings	528,860	508,207
Treasury stock	(313,650)	(313,838)
Total REX shareholders’ equity	362,396	340,435
Noncontrolling interests	50,976	47,839
Total equity	413,372	388,274
Total liabilities and equity	$ 474,345	$ 454,024

XML

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Net sales and revenue	$ 121,164	$ 116,283	$ 343,051	$ 332,212
Cost of sales	106,297	96,121	304,914	286,344
Gross profit	14,867	20,162	38,137	45,868
Selling, general and administrative expenses	(7,347)	(5,082)	(17,528)	(14,315)
Equity in income of unconsolidated affiliates	1,094	1,838	1,931	3,257
(Loss) gain on sale of investment			(13)	192
(Loss) gain on disposal of property and equipment, net	(100)	179	(87)	364
Interest and other income	745	117	1,294	374
Income before income taxes	9,259	17,214	23,734	35,740
Benefit (provision) for income taxes	5,735	(5,740)	1,043	(11,771)
Net income	14,994	11,474	24,777	23,969
Net income attributable to noncontrolling interests	(1,826)	(2,536)	(4,124)	(4,017)
Net income attributable to REX common shareholders	$ 13,168	$ 8,938	$ 20,653	$ 19,952
Weighted average shares outstanding – basic and diluted (in Shares)	6,597	6,590	6,594	6,591
Basic and diluted net income per share attributable to REX common shareholders (in Dollars per share)	$ 2.00	$ 1.36	$ 3.13	$ 3.03

XML

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Balance at Jan. 31, 2016	$ 299	$ (309,754)	$ 144,844	$ 475,874	$ 44,496	$ 355,759
Balance (in Shares) at Jan. 31, 2016	29,853	23,204
Net income				19,952	4,017	23,969
Treasury stock acquired		$ (4,353)				(4,353)
Treasury stock acquired (in Shares)		88
Stock based compensation expense		$ 263	900			1,163
Noncontrolling interests distribution and other					(2,096)	(2,096)
Balance at Oct. 31, 2016	$ 299	$ (313,844)	145,744	495,826	46,417	374,442
Balance (in Shares) at Oct. 31, 2016	29,853	23,292
Balance at Jan. 31, 2017	$ 299	$ (313,838)	145,767	508,207	47,839	388,274
Balance (in Shares) at Jan. 31, 2017	29,853	23,292
Net income				20,653	4,124	24,777
Capital contributions					738	738
Issuance of equity awards and stock based compensation expense		$ 188	1,120			1,308
Issuance of equity awards and stock based compensation expense (in Shares)		(5)
Noncontrolling interests distribution and other					(1,725)	(1,725)
Balance at Oct. 31, 2017	$ 299	$ (313,650)	$ 146,887	$ 528,860	$ 50,976	$ 413,372
Balance (in Shares) at Oct. 31, 2017	29,853	23,287

XML

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Cash flows from operating activities:
Net income including noncontrolling interests	$ 24,777	$ 23,969
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,695	14,567
Income from equity method investments	(1,931)	(3,257)
Dividends received from equity method investee	4,009	4,010
Loss (gain) on disposal of real estate and property and equipment, net	87	(364)
Loss (gain) on sale of investment	13	(192)
Deferred income tax	(5,682)	(1,019)
Stock based compensation expense	881	68
Changes in assets and liabilities:
Accounts receivable	2,023	(1,686)
Inventories	(7,039)	(2,305)
Other assets	(222)	2,758
Accounts payable, trade	2,195	1,653
Other liabilities	(746)	3,157
Net cash provided by operating activities	34,060	41,359
Cash flows from investing activities:
Capital expenditures	(19,315)	(11,836)
Acquisition of business, net of cash acquired	(12,049)
Restricted cash	(100)	8
Restricted investments and deposits	150	460
Proceeds from sale of investment	64	2,275
Proceeds from sale of real estate and property and equipment, net	42	1,510
Other	19	17
Net cash used in investing activities	(31,189)	(7,566)
Cash flows from financing activities:
Dividend payments to and purchases of stock from noncontrolling interests holders	(1,725)	(2,096)
Capital contributions from minority investor	738
Treasury stock acquired		(4,709)
Net cash used in financing activities	(987)	(6,805)
Net increase in cash and cash equivalents	1,884	26,988
Cash and cash equivalents, beginning of period	188,576	135,765
Cash and cash equivalents, end of period	190,460	162,753
Non cash investing activities – Accrued capital expenditures	1,049	1,183
Non cash financing activities – Stock awards accrued	768
Non cash financing activities – Stock awards issued	$ 1,195	$ 1,095

XML

CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

9 Months Ended

Oct. 31, 2017

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1. Consolidated Condensed Financial Statements

The consolidated condensed financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Financial information as of January 31, 2017 included in these financial statements has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2017 (fiscal year 2016). It is suggested that these unaudited consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2017. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year.

Basis of Consolidation – The consolidated condensed financial statements in this report include the operating results and financial position of REX American Resources Corporation and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company includes the results of operations of One Earth Energy, LLC (“One Earth”) in its Consolidated Condensed Statements of Operations on a delayed basis of one month.

Nature of Operations – In the third quarter of fiscal year 2017, the Company began reporting the results of its refined coal operation as a new segment as a result of the August 10, 2017 acquisition of an entity that operates a refined coal facility (see Note 3). Prior to the acquisition, the Company had one reportable segment, ethanol. Beginning with the third quarter of fiscal year 2017, the Company has two reportable segments: i) ethanol and by-products and ii) refined coal. 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. Within the refined coal segment, the Company has a majority equity interest in one refined coal limited liability company.

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ACCOUNTING POLICIES

9 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 2. Accounting Policies

The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the Company’s fiscal year 2016 Annual Report on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be accomplished at fiscal year-end. Examples of such estimates include accrued liabilities, such as management bonuses, and the provision for income taxes. Any adjustments pursuant to such estimates during the quarter were of a normal recurring nature. Actual results could differ from those estimates.

Revenue Recognition

For ethanol and by-products segment sales, the Company recognizes sales from the production of ethanol, distillers grains and non-food grade corn oil when title transfers to customers, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. For refined coal segment sales, the Company recognizes sales from the production of refined coal when title transfers to its customer, generally upon the coal leaving the refined coal plant. Refined coal sales are recorded net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold (after processing).

Cost of Sales

Cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant management, certain compensations costs, and general facility overhead charges.

Selling, General and Administrative Expenses

The Company includes non-production related costs such as professional fees, selling charges and certain payroll in selling, general and administrative expenses.

Financial Instruments

Certain of the forward grain purchase and ethanol, distillers grains and non-food grade corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and non-food grade corn oil quantities expected to be produced by the Company over a reasonable period of time in the normal course of business. During fiscal year 2015, the Company began to carry a portion of its forward grain purchase contracts at fair value.

The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

Income Taxes

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual effective tax rate as adjusted for discrete items impacting the interim periods. The Company’s estimated annual effective tax rate includes the impact of its refined coal operation and the expected federal income tax credits to be earned in fiscal year 2017 beginning on the date of the refined coal acquisition (see Note 3). Based on current projections, the Company has estimated that its annual effective tax rate will be a tax benefit of approximately 4%, which is significantly less than prior estimates. As a result of the timing of the August 10, 2017 refined coal acquisition, the Company’s effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62% (as the cumulative effect of the reduced annual effective tax rate was recorded in the third quarter of fiscal year 2017), which then results in a year to date effective rate of a benefit of approximately 4%. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $6.8 million and $5.1 million during the nine months ended October 31, 2017 and 2016, respectively. The Company received refunds of state income taxes of approximately $0.5 million during the nine months ended October 31, 2017. The Company received no refunds of income taxes during the nine months ended October 31, 2016.

As of October 31, 2017 and January 31, 2017, total unrecognized tax benefits were approximately $2.0 million and $1.9 million, respectively. Accrued penalties and interest were approximately $0.3 million and $0.2 million at October 31, 2017 and January 31, 2017, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $1.3 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.

Inventories

Inventories are carried at the lower of cost or market on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities related to producing ethanol and related by-products and refined coal. Inventory is permanently written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. There were no significant permanent write-downs of inventory at October 31, 2017 and January 31, 2017. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory at a given point in time. The components of inventory are as follows as of the dates presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Ethanol and other finished goods		$	5,144		$	5,262
Work in process			2,881			2,359
Grain and other raw materials			16,120			9,436
Total		$	24,145		$	17,057

Property and Equipment

Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 2 to 20 years for fixtures and equipment.

In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable, based on an analysis of undiscounted future expected cash flows from the use and ultimate disposition of the asset. There were no impairment charges in the first nine months of fiscal years 2017 or 2016. Impairment charges have historically resulted from the Company’s management performing cash flow analysis and have represented management’s estimate of the excess of net book value over fair value.

The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any. The Company generally determines the fair value of the asset group using a discounted cash flow model based on market participant assumptions (for income producing asset groups) or by obtaining appraisals based on the market approach and comparable market transactions (for non-income producing asset groups).

Investments

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company consolidates the results of four majority owned subsidiaries, One Earth Energy, LLC (“One Earth”), NuGen Energy, LLC (“NuGen”), Future Energy, LLC (“Future Energy”) and an entity that owns a refined coal facility. The results of One Earth are included on a delayed basis of one month lag as One Earth has a fiscal year end of December 31. NuGen and the refined coal entity have the same fiscal year as the parent, and therefore, there is no lag in reporting the results of NuGen or the refined coal entity. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Any unallocated excess is treated as goodwill and is recorded as a component of the carrying value of the equity method investee. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established.

Comprehensive Income

The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income.

Accounting Changes and Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This standard simplifies the accounting treatment for excess tax benefits and deficiencies, forfeitures, and cash flow considerations related to share-based compensation. The Company adopted this standard February 1, 2017. The adoption of ASU 2016-09 did not impact the Company’s consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02 “Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet as a right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Company will be required to adopt this standard effective February 1, 2019. The Company has not completed its analysis of adopting this guidance but it does expect the adoption of this guidance to have a material impact on its Consolidated Balance Sheet related to the right to use asset and lease obligation liability to be recognized upon adoption of this guidance. The related leases are currently accounted for as operating leases (see Note 4).

The Company will be required to adopt the amended guidance in ASC Topic 606 “Revenue from Contracts with Customers”, which requires revenue recognition to reflect the transfer of promised goods or services to customers and replaces existing revenue recognition guidance. The updated standard permits the use of either the retrospective or cumulative effect transition method. The FASB had deferred the required adoption of the amended guidance by one year, from February 1, 2017 to February 1, 2018. The Company is progressing in its evaluation of adopting this guidance but it does not expect the adoption of this guidance to have a material impact on its consolidated financial statements with respect to measurement and recognition of revenue. The Company expects to adopt this guidance using the modified prospective method. The Company is still evaluating the impact of adopting this guidance on disclosures in the consolidated financial statements although it is expected to result in expanded disclosures regarding revenue from contracts with customers.

In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”, (“ASU 2015-17”) which requires that for a particular tax-paying component of an entity and within a particular tax jurisdiction, all deferred tax liabilities and assets shall be offset and presented as a single noncurrent amount. The Company prospectively adopted the amended guidance effective February 1, 2017. Prior periods were not retrospectively adjusted. The adoption of ASU 2015-17 did not affect net income attributable to REX common shareholders or retained earnings in the presented periods.

XML

BUSINESS COMBINATIONS

9 Months Ended

Oct. 31, 2017

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 3. Business Combinations

On August 10, 2017, the Company, through a 95.35% owned subsidiary, purchased the entire ownership interest of an entity that owns a refined coal facility. The Company began operating its refined coal facility immediately after the acquisition. The Company expects that the revenues from the sale of refined coal produced in the facility will be subsidized by federal production tax credits through November 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the Internal Revenue Code.

The impact on the combined results of operations of the Company and the refined coal entity, on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2016 is as follows:

Cost of sales would have increased by approximately $692,000 for the quarter ended October 31, 2016. Cost of sales would have increased by approximately $1,385,000 and $2,077,000 for the nine months ended October 31, 2017 and 2016, respectively. These pro forma increases are a result of increased depreciation expense as if the refined coal entity was consolidated during those periods. Selling, general and administrative expenses would have decreased by approximately $2,077,000 and $2,140,000 for the quarter and nine months ended October 31, 2017, respectively. Selling, general and administrative expenses would have increased by approximately $2,140,000 for the nine months ended October 31, 2016. These pro forma adjustments are a result of transaction costs occurring (on a pro forma basis) during the first quarter of fiscal year 2016. The benefit for income taxes would have increased by approximately $789,000 and $287,000 for the quarter and nine months ended October 31, 2017, respectively. The provision for income taxes would have decreased by approximately $263,000 and $1,602,000 for the quarter and nine months ended October 31, 2016, respectively. Net income attributable to REX common shareholders would have increased by approximately $1,228,000 and $447,000 for the quarter and nine months ended October 31, 2017, respectively. Net income attributable to REX common shareholders would have decreased by approximately $409,000 and $2,493,000 for the quarter and nine months ended October 31, 2016, respectively. Basic and diluted net income per share attributable to REX common shareholders would have increased by approximately $0.19 per share and $0.07 per share for the quarter and nine months ended October 31, 2017, respectively. Basic and diluted net income per share attributable to REX common shareholders would have decreased by approximately $0.06 per share and $0.38 per share for the quarter and nine months ended October 31, 2016, respectively.

The results of the Company’s refined coal operations (approximately $0.2 million of net sales and revenue and approximately $4.5 million of net income attributable to REX common shareholders, including the income tax benefit of estimated Section 45 credits to be earned) have been included in the consolidated financial statements subsequent to the acquisition date and are included in the Company’s refined coal segment.

The purchase price was $12,049,000, which was paid in cash. The acquisition was recorded by allocating the total purchase price to the assets acquired, based on their estimated fair values at the acquisition date. The purchase price allocation is based on the preliminary results of a valuation analysis. The purchase price allocation is preliminary until the valuation analysis is completed. The income approach was used to determine the fair values of assets acquired. The following table summarizes the estimated fair values of the assets acquired at the acquisition date (amounts in thousands):

Inventory	$	49
Property, plant and equipment		12,000
Total assets acquired and purchase price	$	12,049

Transaction costs totaled approximately $2.1 million during the first nine months of fiscal year 2017 and are included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations.

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LEASES

9 Months Ended

Oct. 31, 2017

Leases [Abstract]

Leases of Lessor Disclosure [Text Block]

Note 4. Leases

At October 31, 2017, the Company has lease agreements, as lessee, for rail cars and a natural gas pipeline. All of the leases are accounted for as operating leases. The following table is a summary of future minimum rentals on such leases (amounts in thousands):

Years Ended January 31,	Minimum Rentals
Remainder of 2018		$	1,774
2019			6,910
2020			5,700
2021			3,931
2022			3,299
Thereafter			3,026
Total		$	24,640

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FAIR VALUE

9 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 5. Fair Value

The Company applies ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), which provides a framework for measuring fair value under accounting principles generally accepted in the United States of America. This accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company determines the fair market values of its financial instruments based on the fair value hierarchy established by ASC 820 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries certain cash equivalents, investments and derivative instruments at fair value.

The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Estimation risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate, price or index scenarios are extrapolated in order to determine the fair value. The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company’s own credit standing and other specific factors, where appropriate. The fair values of property and equipment are determined by using various models that discount future expected cash flows.

To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, investments and property and equipment, various processes and controls have been adopted, which include: (i) model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; and (ii) periodic review and substantiation of profit and loss reporting for all derivative instruments. Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2017 are summarized below (amounts in thousands):

	Level 1			Level 2			Level 3			Fair Value
Commodity futures (1)		$	-		$	120		$	-		$	120
Investment in cooperative (2)			-			-			333			333
Total assets		$	-		$	120		$	333		$	453
Forward purchase contract liability (3)		$	-		$	287		$	-		$	287

Financial assets and liabilities measured at fair value on a recurring basis at January 31, 2017 are summarized below (amounts in thousands):

	Level 1			Level 2			Level 3			Fair Value
Commodity futures (1)		$	-		$	45		$	-		$	45
Forward purchase contract asset (4)			-			163			-			163
Investment in cooperative (2)			-			-			333			333
Total assets		$	-		$	208		$	333		$	541
Forward purchase contract liability (3)		$	-		$	136		$	-		$	136

(1) Commodity futures are included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

(2) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets.

(3) The forward purchase contract liability is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets.

(4) The forward purchase contract asset is included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

The Company determined the fair value of the investment in cooperative by using a discounted cash flow analysis on the expected cash flows. Inputs used in the analysis include the face value of the allocated equity amount, the projected term for repayment based upon a historical trend, and a risk adjusted discount rate based on the expected compensation participants would demand because of the uncertainty of the future cash flows. The inherent risk and uncertainty associated with unobservable inputs could have a significant effect on the actual fair value of the investment.

There were no assets measured at fair value on a non-recurring basis at October 31, 2017 or January 31, 2017. As discussed in Note 3, the Company estimated the fair values of refined coal assets acquired using the income approach. This estimated fair value is a level 3 measurement.

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PROPERTY AND EQUIPMENT

9 Months Ended

Oct. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 6. Property and Equipment

The components of property and equipment are as follows for the periods presented (amounts in thousands):

	October 31, 2017				January 31, 2017
Land and improvements		$	21,074			$	20,951
Buildings and improvements			23,272				23,203
Machinery, equipment and fixtures			280,986				255,348
Construction in progress			6,590				1,046
			331,922				300,548
Less:  accumulated depreciation			(132,963	)			(117,787	)
Total		$	198,959			$	182,761

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OTHER ASSETS

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Other Assets Disclosure [Text Block]

Note 7. Other Assets

The components of other assets are as follows for the periods presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Real estate taxes refundable		$	6,450		$	5,923
Deposits			5			155
Other			735			835
Total		$	7,190		$	6,913

Real estate taxes refundable represent amounts due One Earth associated with refunds of previously paid taxes in connection with a tax increment financing arrangement with local taxing authorities. Deposits are with utility and other vendors.

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Note 8. Accrued Expenses and Other Current Liabilities

The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Accrued utility charges		$	2,097		$	2,414
Accrued payroll and related items			2,855			4,279
Accrued real estate taxes			1,966			2,716
Accrued income taxes			52			2,120
Other			4,253			1,819
Total		$	11,223		$	13,348

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REVOLVING LINES OF CREDIT

9 Months Ended

Oct. 31, 2017

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 9. Revolving Lines of Credit

Effective April 1, 2016, One Earth and NuGen each entered into $10.0 million revolving loan facilities that matured April 1, 2017. During the second quarter of fiscal year 2017, One Earth and NuGen renewed the revolving loan facilities, which now mature June 1, 2018. Neither One Earth nor NuGen had outstanding borrowings on the revolving loans during the nine months ended October 31, 2017 and 2016.

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DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Financial Instruments Disclosure [Text Block]

Note 10. Derivative Financial Instruments

The Company is exposed to various market risks, including changes in commodity prices (raw materials and finished goods). To manage risks associated with the volatility of these natural business exposures, the Company enters into commodity agreements and forward purchase (corn) and sale (ethanol, distillers grains and non-food grade corn oil) contracts. The Company does not purchase or sell derivative financial instruments for trading or speculative purposes. The Company does not purchase or sell derivative financial instruments for which a lack of marketplace quotations would require the use of fair value estimation techniques.

The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands):

	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
	October 31, 2017		January 31, 2017		October 31, 2017		January 31, 2017
Commodity futures (1)	$	120	$	45	$	-	$	-
Forward purchase contracts (2)		-		163		287		136
Total	$	120	$	208	$	287	$	136

(1) Commodity futures are included in prepaid expenses and other current assets. These contracts are short/sell positions for approximately 1.5 million and 0.7 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

(2) Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 4.7 million and 5.3 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

As of October 31, 2017, all of the derivative financial instruments held by the Company were subject to enforceable master netting arrangements. The Company’s accounting policy is to offset positions amounts owed or owing with the same counterparty. As of October 31, 2017, the gross positions of the enforceable master netting agreements are not significantly different from the net positions presented in the table above. Depending on the amount of an unrealized loss on a derivative contract held by the Company, the counterparty may require collateral to secure the Company’s derivative contract position. As of October 31, 2017, the Company was required to maintain collateral with the counterparty in the amount of approximately $230,000 to secure the Company’s derivative position.

See Note 4 which contains fair value information related to derivative financial instruments.

Gains on the Company’s derivative financial instruments of approximately $75,000 and $115,000 for the third quarters of fiscal years 2017 and 2016, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations. Gains on the Company’s derivative financial instruments of approximately $1,052,000 and $1,740,000 for the first nine months of fiscal years 2017 and 2016, respectively, were included in cost of sales on the Consolidated Condensed Statements of Operations.

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INVESTMENTS

9 Months Ended

Oct. 31, 2017

Investments Schedule [Abstract]

Investment [Text Block]

Note 11. Investments

The following table summarizes the Company’s equity method investment at October 31, 2017 and January 31, 2017 (dollars in thousands):

Entity	Ownership Percentage	Carrying Amount October 31, 2017	Carrying Amount January 31, 2017
Big River	10.3% at October 31, 2017 and 9.7% at January 31, 2017	$35,755	$37,833

Undistributed earnings of the Company’s equity method investee totaled approximately $15.7 million and $17.8 million at October 31, 2017 and January 31, 2017, respectively. The Company received dividends from its equity method investee of approximately $4.0 million during the first nine months of fiscal years 2017 and 2016.

Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):

	Three Months Ended October 31,				Nine Months Ended October 31,
	2017		2016		2017		2016
Net sales and revenue	$	201,621	$	216,505	$	606,190	$	611,050
Gross profit	$	18,620	$	26,191	$	38,363	$	49,119
Income from continuing operations	$	11,010	$	18,934	$	19,628	$	33,555
Net income	$	11,010	$	18,934	$	19,628	$	33,555

Big River has debt agreements that limit amounts Big River can pay in the form of dividends or advances to owners. The restricted net assets of Big River at October 31, 2017 and January 31, 2017 are approximately $276.4 million and $278.7 million, respectively.

On June 1, 2015, Patriot Holdings, LLC (“Patriot”) and a subsidiary of CHS Inc. (“CHS”) completed a merger that resulted in CHS acquiring 100% of the ownership interest in Patriot. During the first quarter of fiscal year 2016, the Company received proceeds of approximately $2.3 million as partial payment for certain escrow holdbacks and adjustments to the purchase price. As a result, the Company recognized approximately $0.2 million as gain on sale of investment during the first quarter of fiscal year 2016. The Company does not expect any further proceeds or gain/loss on sale of investment to be significant.

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EMPLOYEE BENEFITS

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Note 12. Employee Benefits

The Company maintains the REX 2015 Incentive Plan, approved by its shareholders, which reserves a total of 550,000 shares of common stock for issuance pursuant to its terms. The plan provides for the granting of shares of stock, including options to purchase shares of common stock, stock appreciation rights tied to the value of common stock, restricted stock, and restricted stock unit awards to eligible employees, non-employee directors and consultants. The Company measures share-based compensation grants at fair value on the grant date, adjusted for estimated forfeitures. The Company records noncash compensation expense related to liability and equity awards in its consolidated financial statements over the requisite service period on a straight-line basis. At October 31, 2017, 511,174 shares remain available for issuance under the Plan. As a component of their compensation, restricted stock has been granted to directors at the closing market price of REX common stock on the date of the grant. In addition one third of executives’ incentive compensation is payable by an award of restricted stock based on the then closing market price of REX common stock.

At October 31, and January 31, 2017, unrecognized compensation cost related to nonvested restricted stock was approximately $277,000 and $214,000, respectively. The following table summarizes non-vested restricted stock award activity for the nine months ended October 31, 2017 and 2016:

	Nine Months Ended October 31, 2017
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2017		23,350	$	1,386		2
Granted		14,156		1,370
Forfeited		-		-
Vested		8,091		481
Non-Vested at October 31, 2017		29,415	$	2,275		2

	Nine Months Ended October 31, 2016
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2016		3,168	$	200		2
Granted		21,502		1,269
Forfeited		-		-
Vested		1,320		83
Non-Vested at October 31, 2016		23,350	$	1,386		3

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INCOME TAXES

9 Months Ended

Oct. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 13. Income Taxes

The Company files a U.S. federal income tax return and various state income tax returns. In general, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years ended January 31, 2010 and prior. A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):

	Nine Months Ended October 31,
	2017		2016
Unrecognized tax benefits, beginning of period	$	2,096	$	987
Changes for prior years’ tax positions		247		749
Changes for current year tax positions		-		491
Unrecognized tax benefits, end of period	$	2,343	$	2,227

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Oct. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 14. Commitments and Contingencies

The Company is involved in various legal actions arising in the normal course of business. After taking into consideration legal counsels’ evaluations of such actions, management is of the opinion that their outcome will not have a material adverse effect on the Company’s Consolidated Condensed Financial Statements.

One Earth and NuGen have combined forward purchase contracts for approximately 9.1 million bushels of corn, the principal raw material for their ethanol plants. They expect to take delivery of the grain through March 2018.

One Earth and NuGen have combined sales commitments for approximately 29.8 million gallons of ethanol, approximately 108,000 tons of distillers grains and approximately 16.7 million pounds of non-food grade corn oil. They expect to deliver the ethanol, distillers grains and non-food grade corn oil through December 2017.

The refined coal entity has various agreements (site license, operating agreements, etc.) containing payment terms based upon production of refined coal under which the Company is required to pay various fees. Since refined coal production began, these fees have totaled $2.4 million.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Oct. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 15. Related-Party Transactions

During the third quarters of fiscal year 2017 and 2016, One Earth and NuGen purchased approximately $43.4 million and approximately $34.2 million, respectively, of corn from minority equity investors and board members of those subsidiaries. Such purchases totaled approximately $121.8 million and approximately $114.6 million for the nine months ended October 31, 2017 and 2016, respectively. The Company had amounts payable to related parties for corn purchases of approximately $2.7 million and $1.7 million at October 31, 2017 and January 31, 2017, respectively.

The Company recognized commission expense of approximately $1.6 million, payable to the minority investor in the refined coal entity. The commission expense is associated with the refined coal acquisition. The Company had accrued liabilities related to the commission expense of approximately $1.5 million at October 31, 2017.

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SEGMENT REPORTING

9 Months Ended

Oct. 31, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 16. Segment Reporting

In the third quarter of fiscal year 2017, the Company began reporting the results of its refined coal operations as a new segment as a result of the refined coal acquisition (see Note 3.) The Company has two segments: ethanol and by-products and refined coal. Historical amounts have been reclassified to conform to the current year segment reporting presentation. The Company evaluates the performance of each reportable segment based on net income attributable to REX common shareholders. The following table summarizes segment and other results and assets (amounts in thousands):

	Three Months Ended					Nine Months Ended
	October 31,					October 31,
	2017			2016		2017			2016
Net sales and revenue:
Ethanol and by-products	$	120,971		$	116,283	$	342,858		$	332,212
Refined coal 1		193			-		193			-
Total net sales and revenue	$	121,164		$	116,283	$	343,051		$	332,212
Segment gross profit (loss):
Ethanol and by-products	$	18,257		$	20,162	$	41,527		$	45,868
Refined coal		(3,390	)		-		(3,390	)		-
Total gross profit	$	14,867		$	20,162	$	38,137		$	45,868

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2017			2016			2017			2016
Income (loss) before income taxes:
Ethanol and by-products	$	15,554		$	17,682		$	31,807		$	37,294
Refined coal		(5,684	)		-			(5,684	)		-
Corporate and other		(611	)		(468	)		(2,389	)		(1,554	)
Total income (loss) before income taxes	$	9,259		$	17,214		$	23,734		$	35,740
Benefit (provision) for income taxes:
Ethanol and by-products	$	(4,379	)	$	(5,917	)	$	(9,712	)	$	(12,331	)
Refined coal 2		9,918			-			9,918			-
Corporate and other		196			177			837			560
Total benefit (provision) for income taxes	$	5,735		$	(5,740	)	$	1,043		$	(11,771	)
Segment profit (loss):
Ethanol and by-products	$	9,058		$	9,209		$	17,665		$	20,901
Refined coal		4,520			-			4,520			-
Corporate and other		(410	)		(271	)		(1,532	)		(949	)
Net income attributable to REX common shareholders	$	13,168		$	8,938		$	20,653		$	19,952

	October 31, 2017		January 31, 2017
Assets:
Ethanol and by-products	$	396,927	$	371,465	-	-
Refined coal		11,937		-	-	-
Corporate and other		65,481		82,559	-	-
Total assets	$	474,345	$	454,024	-	-

^{1 The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold.}

^{2 The Company records its tax provision/benefit based on an estimated annual rate adjusted for items recorded discretely which it estimates to be approximately negative 4%. As a result of the timing of the refined coal acquisition on August 10, 2017, the Company’s effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62%, which then results in a year to date effective rate of a benefit of approximately 4%.}

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
Sales of products, ethanol and by-products segment:
Ethanol	$	96,296	$	90,702	$	276,553	$	259,266
Dried distillers grains		16,703		19,551		45,325		55,551
Non-food grade corn oil		6,041		5,074		15,359		13,658
Modified distillers grains		1,889		853		5,557		3,400
Other		42		103		64		337
Total	$	120,971	$	116,283	$	342,858	$	332,212
Sales of products, refined coal segment:
Refined coal	$	193	$	-	$	193	$	-

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Accounting Policies, by Policy (Policies)

9 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

For ethanol and by-products segment sales, the Company recognizes sales from the production of ethanol, distillers grains and non-food grade corn oil when title transfers to customers, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. For refined coal segment sales, the Company recognizes sales from the production of refined coal when title transfers to its customer, generally upon the coal leaving the refined coal plant. Refined coal sales are recorded net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold (after processing).

Cost of Sales, Policy [Policy Text Block]

Cost of Sales

Cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, other distribution expenses, warehousing costs, plant management, certain compensations costs, and general facility overhead charges

Selling, General and Administrative Expenses, Policy [Policy Text Block]

Selling, General and Administrative Expenses

The Company includes non-production related costs such as professional fees, selling charges and certain payroll in selling, general and administrative expenses.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

Certain of the forward grain purchase and ethanol, distillers grains and non-food grade corn oil sale contracts are accounted for under the “normal purchases and normal sales” scope exemption of Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” (“ASC 815”) because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol, distillers grains and non-food grade corn oil quantities expected to be produced by the Company over a reasonable period of time in the normal course of business. During fiscal year 2015, the Company began to carry a portion of its forward grain purchase contracts at fair value.

The Company uses derivative financial instruments (exchange-traded futures contracts) to manage a portion of the risk associated with changes in commodity prices, primarily related to corn. The Company monitors and manages this exposure as part of its overall risk management policy. As such, the Company seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results. The Company may take hedging positions in these commodities as one way to mitigate risk. While the Company attempts to link its hedging activities to purchase and sales activities, there are situations in which these hedging activities can themselves result in losses. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The changes in fair value of these derivative financial instruments are recognized in current period earnings as the Company does not use hedge accounting.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual effective tax rate as adjusted for discrete items impacting the interim periods. The Company’s estimated annual effective tax rate includes the impact of its refined coal operation and the expected federal income tax credits to be earned in fiscal year 2017 beginning on the date of the refined coal acquisition (see Note 3). Based on current projections, the Company has estimated that its annual effective tax rate will be a tax benefit of approximately 4%, which is significantly less than prior estimates. As a result of the timing of the August 10, 2017 refined coal acquisition, the Company’s effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62% (as the cumulative effect of the reduced annual effective tax rate was recorded in the third quarter of fiscal year 2017), which then results in a year to date effective rate of a benefit of approximately 4%. The Company provides for deferred tax liabilities and assets for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately $6.8 million and $5.1 million during the nine months ended October 31, 2017 and 2016, respectively. The Company received refunds of state income taxes of approximately $0.5 million during the nine months ended October 31, 2017. The Company received no refunds of income taxes during the nine months ended October 31, 2016.

As of October 31, 2017 and January 31, 2017, total unrecognized tax benefits were approximately $2.0 million and $1.9 million, respectively. Accrued penalties and interest were approximately $0.3 million and $0.2 million at October 31, 2017 and January 31, 2017, respectively. If the Company were to prevail on all unrecognized tax benefits recorded, the provision for income taxes would be reduced by approximately $1.3 million. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. On a quarterly basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are carried at the lower of cost or market on a first-in, first-out basis. Inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities related to producing ethanol and related by-products and refined coal. Inventory is permanently written down for instances when cost exceeds estimated net realizable value; such write-downs are based primarily upon commodity prices as the market value of inventory is often dependent upon changes in commodity prices. There were no significant permanent write-downs of inventory at October 31, 2017 and January 31, 2017. Fluctuations in the write-down of inventory generally relate to the levels and composition of such inventory at a given point in time. The components of inventory are as follows as of the dates presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Ethanol and other finished goods		$	5,144		$	5,262
Work in process			2,881			2,359
Grain and other raw materials			16,120			9,436
Total		$	24,145		$	17,057

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment is recorded at cost or the fair value on the date of acquisition (for property and equipment acquired in a business combination). Depreciation is computed using the straight-line method. Estimated useful lives are 15 to 40 years for buildings and improvements, and 2 to 20 years for fixtures and equipment.

In accordance with ASC 360-10 “Impairment or Disposal of Long-Lived Assets”, the carrying value of long-lived assets is assessed for recoverability by management when changes in circumstances indicate that the carrying amount may not be recoverable, based on an analysis of undiscounted future expected cash flows from the use and ultimate disposition of the asset. There were no impairment charges in the first nine months of fiscal years 2017 or 2016. Impairment charges have historically resulted from the Company’s management performing cash flow analysis and have represented management’s estimate of the excess of net book value over fair value.

The Company tests for recoverability of an asset group by comparing its carrying amount to its estimated undiscounted future cash flows. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, the Company recognizes an impairment charge for the amount by which the asset group’s carrying amount exceeds its fair value, if any. The Company generally determines the fair value of the asset group using a discounted cash flow model based on market participant assumptions (for income producing asset groups) or by obtaining appraisals based on the market approach and comparable market transactions (for non-income producing asset groups).

Investment, Policy [Policy Text Block]

Investments

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary. The Company consolidates the results of four majority owned subsidiaries, One Earth Energy, LLC (“One Earth”), NuGen Energy, LLC (“NuGen”), Future Energy, LLC (“Future Energy”) and an entity that owns a refined coal facility. The results of One Earth are included on a delayed basis of one month lag as One Earth has a fiscal year end of December 31. NuGen and the refined coal entity have the same fiscal year as the parent, and therefore, there is no lag in reporting the results of NuGen or the refined coal entity. The Company accounts for investments in a limited liability company in which it has a less than 20% ownership interest using the equity method of accounting when the factors discussed in ASC 323, “Investments-Equity Method and Joint Ventures” are met. The excess of the carrying value over the underlying equity in the net assets of equity method investees is allocated to specific assets and liabilities. Any unallocated excess is treated as goodwill and is recorded as a component of the carrying value of the equity method investee. Investments in businesses that the Company does not control but for which it has the ability to exercise significant influence over operating and financial matters are accounted for using the equity method. The Company accounts for its investment in Big River Resources, LLC (“Big River”) using the equity method of accounting and includes the results on a delayed basis of one month as Big River has a fiscal year end of December 31.

The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in the Consolidated Condensed Statements of Operations and a new cost basis in the investment is established.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

The Company has no components of other comprehensive income, and therefore, comprehensive income equals net income.

New Accounting Pronouncements, Policy [Policy Text Block]

Accounting Changes and Recently Issued Accounting Standards

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). This standard simplifies the accounting treatment for excess tax benefits and deficiencies, forfeitures, and cash flow considerations related to share-based compensation. The Company adopted this standard February 1, 2017. The adoption of ASU 2016-09 did not impact the Company’s consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02 “Leases”. This standard requires that virtually all leases will be recognized by lessees on their balance sheet as a right-of-use asset and a corresponding lease liability, including leases currently accounted for as operating leases. The Company will be required to adopt this standard effective February 1, 2019. The Company has not completed its analysis of adopting this guidance but it does expect the adoption of this guidance to have a material impact on its Consolidated Balance Sheet related to the right to use asset and lease obligation liability to be recognized upon adoption of this guidance. The related leases are currently accounted for as operating leases (see Note 4).

The Company will be required to adopt the amended guidance in ASC Topic 606 “Revenue from Contracts with Customers”, which requires revenue recognition to reflect the transfer of promised goods or services to customers and replaces existing revenue recognition guidance. The updated standard permits the use of either the retrospective or cumulative effect transition method. The FASB had deferred the required adoption of the amended guidance by one year, from February 1, 2017 to February 1, 2018. The Company is progressing in its evaluation of adopting this guidance but it does not expect the adoption of this guidance to have a material impact on its consolidated financial statements with respect to measurement and recognition of revenue. The Company expects to adopt this guidance using the modified prospective method. The Company is still evaluating the impact of adopting this guidance on disclosures in the consolidated financial statements although it is expected to result in expanded disclosures regarding revenue from contracts with customers.

In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”, (“ASU 2015-17”) which requires that for a particular tax-paying component of an entity and within a particular tax jurisdiction, all deferred tax liabilities and assets shall be offset and presented as a single noncurrent amount. The Company prospectively adopted the amended guidance effective February 1, 2017. Prior periods were not retrospectively adjusted. The adoption of ASU 2015-17 did not affect net income attributable to REX common shareholders or retained earnings in the presented periods.

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ACCOUNTING POLICIES (Tables)

9 Months Ended

Oct. 31, 2017

Accounting Policies [Abstract]

Schedule of Inventory, Current [Table Text Block]

The components of inventory are as follows as of the dates presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Ethanol and other finished goods		$	5,144		$	5,262
Work in process			2,881			2,359
Grain and other raw materials			16,120			9,436
Total		$	24,145		$	17,057

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BUSINESS COMBINATIONS (Tables)

9 Months Ended

Oct. 31, 2017

Business Combinations [Abstract]

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The following table summarizes the estimated fair values of the assets acquired at the acquisition date (amounts in thousands):

Inventory	$	49
Property, plant and equipment		12,000
Total assets acquired and purchase price	$	12,049

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LEASES (Tables)

9 Months Ended

Oct. 31, 2017

Leases [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The following table is a summary of future minimum rentals on such leases (amounts in thousands):

Years Ended January 31,	Minimum Rentals
Remainder of 2018		$	1,774
2019			6,910
2020			5,700
2021			3,931
2022			3,299
Thereafter			3,026
Total		$	24,640

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FAIR VALUE (Tables)

9 Months Ended

Oct. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Financial assets and liabilities measured at fair value on a recurring basis at October 31, 2017 are summarized below (amounts in thousands):

	Level 1			Level 2			Level 3			Fair Value
Commodity futures (1)		$	-		$	120		$	-		$	120
Investment in cooperative (2)			-			-			333			333
Total assets		$	-		$	120		$	333		$	453
Forward purchase contract liability (3)		$	-		$	287		$	-		$	287

	Level 1			Level 2			Level 3			Fair Value
Commodity futures (1)		$	-		$	45		$	-		$	45
Forward purchase contract asset (4)			-			163			-			163
Investment in cooperative (2)			-			-			333			333
Total assets		$	-		$	208		$	333		$	541
Forward purchase contract liability (3)		$	-		$	136		$	-		$	136

(1) Commodity futures are included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

(2) The investment in cooperative is included in “Other assets” on the accompanying Consolidated Condensed Balance Sheets.

(3) The forward purchase contract liability is included in “Accrued expenses and other current liabilities” on the accompanying Consolidated Condensed Balance Sheets.

(4) The forward purchase contract asset is included in “Prepaid expenses and other current assets” on the accompanying Consolidated Condensed Balance Sheets.

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PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Oct. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

The components of property and equipment are as follows for the periods presented (amounts in thousands):

	October 31, 2017				January 31, 2017
Land and improvements		$	21,074			$	20,951
Buildings and improvements			23,272				23,203
Machinery, equipment and fixtures			280,986				255,348
Construction in progress			6,590				1,046
			331,922				300,548
Less:  accumulated depreciation			(132,963	)			(117,787	)
Total		$	198,959			$	182,761

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OTHER ASSETS (Tables)

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Schedule of Other Assets [Table Text Block]

The components of other assets are as follows for the periods presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Real estate taxes refundable		$	6,450		$	5,923
Deposits			5			155
Other			735			835
Total		$	7,190		$	6,913

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Other Current Liabilities [Table Text Block]

The components of accrued expenses and other current liabilities are as follows for the periods presented (amounts in thousands):

	October 31, 2017			January 31, 2017
Accrued utility charges		$	2,097		$	2,414
Accrued payroll and related items			2,855			4,279
Accrued real estate taxes			1,966			2,716
Accrued income taxes			52			2,120
Other			4,253			1,819
Total		$	11,223		$	13,348

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Schedule of Derivative Assets at Fair Value [Table Text Block]

The following table provides information about the fair values of the Company’s derivative financial instruments (that are not accounted for under the “normal purchases and normal sales” scope exemption of ASC 815) and the line items on the Consolidated Condensed Balance Sheets in which the fair values are reflected (in thousands):

	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
	October 31, 2017		January 31, 2017		October 31, 2017		January 31, 2017
Commodity futures (1)	$	120	$	45	$	-	$	-
Forward purchase contracts (2)		-		163		287		136
Total	$	120	$	208	$	287	$	136

(1) Commodity futures are included in prepaid expenses and other current assets. These contracts are short/sell positions for approximately 1.5 million and 0.7 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

(2) Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 4.7 million and 5.3 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

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INVESTMENTS (Tables)

9 Months Ended

Oct. 31, 2017

Investments Schedule [Abstract]

Equity Method Investments [Table Text Block]

The following table summarizes the Company’s equity method investment at October 31, 2017 and January 31, 2017 (dollars in thousands):

Entity	Ownership Percentage	Carrying Amount October 31, 2017	Carrying Amount January 31, 2017
Big River	10.3% at October 31, 2017 and 9.7% at January 31, 2017	$35,755	$37,833

Schedule of Financial Information for Equity Method Investments [Table Text Block]

Summarized financial information for the Company’s equity method investee is presented in the following table for the periods presented (amounts in thousands):

	Three Months Ended October 31,				Nine Months Ended October 31,
	2017		2016		2017		2016
Net sales and revenue	$	201,621	$	216,505	$	606,190	$	611,050
Gross profit	$	18,620	$	26,191	$	38,363	$	49,119
Income from continuing operations	$	11,010	$	18,934	$	19,628	$	33,555
Net income	$	11,010	$	18,934	$	19,628	$	33,555

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EMPLOYEE BENEFITS (Tables)

9 Months Ended

Oct. 31, 2017

Disclosure Text Block Supplement [Abstract]

Nonvested Restricted Stock Shares Activity [Table Text Block]

The following table summarizes non-vested restricted stock award activity for the nine months ended October 31, 2017 and 2016:

	Nine Months Ended October 31, 2017
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2017		23,350	$	1,386		2
Granted		14,156		1,370
Forfeited		-		-
Vested		8,091		481
Non-Vested at October 31, 2017		29,415	$	2,275		2

	Nine Months Ended October 31, 2016
			Weighted		Weighted
			Average Grant		Average Remaining
	Non-Vested		Date Fair Value		Vesting Term
	Shares		(000’s)		(in years)
Non-Vested at January 31, 2016		3,168	$	200		2
Granted		21,502		1,269
Forfeited		-		-
Vested		1,320		83
Non-Vested at October 31, 2016		23,350	$	1,386		3

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INCOME TAXES (Tables)

9 Months Ended

Oct. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including interest and penalties, is as follows (amounts in thousands):

	Nine Months Ended October 31,
	2017		2016
Unrecognized tax benefits, beginning of period	$	2,096	$	987
Changes for prior years’ tax positions		247		749
Changes for current year tax positions		-		491
Unrecognized tax benefits, end of period	$	2,343	$	2,227

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SEGMENT REPORTING (Tables)

9 Months Ended

Oct. 31, 2017

SEGMENT REPORTING (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table summarizes segment and other results and assets (amounts in thousands):

	Three Months Ended					Nine Months Ended
	October 31,					October 31,
	2017			2016		2017			2016
Net sales and revenue:
Ethanol and by-products	$	120,971		$	116,283	$	342,858		$	332,212
Refined coal 1		193			-		193			-
Total net sales and revenue	$	121,164		$	116,283	$	343,051		$	332,212
Segment gross profit (loss):
Ethanol and by-products	$	18,257		$	20,162	$	41,527		$	45,868
Refined coal		(3,390	)		-		(3,390	)		-
Total gross profit	$	14,867		$	20,162	$	38,137		$	45,868

	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2017			2016			2017			2016
Income (loss) before income taxes:
Ethanol and by-products	$	15,554		$	17,682		$	31,807		$	37,294
Refined coal		(5,684	)		-			(5,684	)		-
Corporate and other		(611	)		(468	)		(2,389	)		(1,554	)
Total income (loss) before income taxes	$	9,259		$	17,214		$	23,734		$	35,740
Benefit (provision) for income taxes:
Ethanol and by-products	$	(4,379	)	$	(5,917	)	$	(9,712	)	$	(12,331	)
Refined coal 2		9,918			-			9,918			-
Corporate and other		196			177			837			560
Total benefit (provision) for income taxes	$	5,735		$	(5,740	)	$	1,043		$	(11,771	)
Segment profit (loss):
Ethanol and by-products	$	9,058		$	9,209		$	17,665		$	20,901
Refined coal		4,520			-			4,520			-
Corporate and other		(410	)		(271	)		(1,532	)		(949	)
Net income attributable to REX common shareholders	$	13,168		$	8,938		$	20,653		$	19,952

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2017		2016		2017		2016
Sales of products, ethanol and by-products segment:
Ethanol	$	96,296	$	90,702	$	276,553	$	259,266
Dried distillers grains		16,703		19,551		45,325		55,551
Non-food grade corn oil		6,041		5,074		15,359		13,658
Modified distillers grains		1,889		853		5,557		3,400
Other		42		103		64		337
Total	$	120,971	$	116,283	$	342,858	$	332,212
Sales of products, refined coal segment:
Refined coal	$	193	$	-	$	193	$	-

^{1 The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold.}

^{2 The Company records its tax provision/benefit based on an estimated annual rate adjusted for items recorded discretely which it estimates to be approximately negative 4%. As a result of the timing of the refined coal acquisition on August 10, 2017, the Company’s effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62%, which then results in a year to date effective rate of a benefit of approximately 4%.}

Assets [Member]

SEGMENT REPORTING (Tables) [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	October 31, 2017		January 31, 2017
Assets:
Ethanol and by-products	$	396,927	$	371,465	-	-
Refined coal		11,937		-	-	-
Corporate and other		65,481		82,559	-	-
Total assets	$	474,345	$	454,024	-	-

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CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Details)	3 Months Ended	6 Months Ended	9 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Oct. 31, 2017
Disclosure Text Block [Abstract]
Number of Operating Segments	2	1	2
Number of Ethanol Entities Under Ownership Interest			3
Number of Ethanol Entities Under Majority Ownership Interest			2
Number Of Refined Coal Limited Liability Entities Under Majority Owership Interest			1

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ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended	9 Months Ended
	Oct. 31, 2017	Oct. 31, 2017	Oct. 31, 2016	Jan. 31, 2017
ACCOUNTING POLICIES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	62.00%	4.00%
Income Taxes Paid		$ 6,800,000	$ 5,100,000
Proceeds from Income Tax Refunds		500,000	$ 0
Income Tax Examination, Penalties and Interest Accrued	$ 300,000	300,000		$ 200,000
Unrecognized Tax Benefits, Period Increase (Decrease)		$ (1,300,000)
Property, Plant and Equipment, Depreciation Methods		Depreciation is computedusing the straight-line method
Asset Impairment Charges		$ 0
Approximate [Member]
ACCOUNTING POLICIES (Details) [Line Items]
Unrecognized Tax Benefits	$ 2,000,000	$ 2,000,000		$ 1,900,000
Cost of Sales [Member]
ACCOUNTING POLICIES (Details) [Line Items]
Maximum Percentage of Equity Ownership Interest Which May be Considered for Equity Method of Accounting		20.00%
Building and Building Improvements [Member] | Minimum [Member]
ACCOUNTING POLICIES (Details) [Line Items]
Property, Plant and Equipment, Estimated Useful Lives		15
Building and Building Improvements [Member] | Maximum [Member]
ACCOUNTING POLICIES (Details) [Line Items]
Property, Plant and Equipment, Estimated Useful Lives		40 years
Fixtures And Equipment [Member] | Minimum [Member]
ACCOUNTING POLICIES (Details) [Line Items]
Property, Plant and Equipment, Estimated Useful Lives		2
Fixtures And Equipment [Member] | Maximum [Member]
ACCOUNTING POLICIES (Details) [Line Items]
Property, Plant and Equipment, Estimated Useful Lives		20 years

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ACCOUNTING POLICIES (Details) - Schedule of Components of Inventory - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Schedule of Components of Inventory [Abstract]
Ethanol and other finished goods	$ 5,144	$ 5,262
Work in process	2,881	2,359
Grain and other raw materials	16,120	9,436
Total	$ 24,145	$ 17,057

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BUSINESS COMBINATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
BUSINESS COMBINATIONS (Details) [Line Items]
Selling, General and Administrative Expense	$ 7,347,000	$ 5,082,000	$ 17,528,000	$ 14,315,000
Income Tax Expense (Benefit)	(5,735,000)	5,740,000	(1,043,000)	11,771,000
Net Income (Loss) Attributable to Parent	$ 13,168,000	$ 8,938,000	$ 20,653,000	$ 19,952,000
Earnings Per Share, Basic and Diluted (in Dollars per share)	$ 2.00	$ 1.36	$ 3.13	$ 3.03
Payments to Acquire Businesses, Gross			$ 12,049,000
Refined Coal [Member]
BUSINESS COMBINATIONS (Details) [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	95.35%		95.35%
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			$ 200,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			4,500,000
Payments to Acquire Businesses, Gross			12,049,000
Business Acquisition, Transaction Costs	$ 2,100,000		2,100,000
Pro Forma [Member] | Refined Coal [Member]
BUSINESS COMBINATIONS (Details) [Line Items]
Costs and Expenses		$ 692,000	1,385,000	$ 2,077,000
Selling, General and Administrative Expense	(2,077,000)		(2,140,000)	2,140,000
Income Tax Expense (Benefit)	789,000	(263,000)	287,000	(1,602,000)
Net Income (Loss) Attributable to Parent	$ 1,228,000	$ (409,000)	$ 447,000	$ (2,493,000)
Earnings Per Share, Basic and Diluted (in Dollars per share)	$ 0.19	$ (0.06)	$ 0.07	$ (0.38)

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BUSINESS COMBINATIONS (Details) - Schedule of Estimated Fair Values of Assets Acquired $ in Thousands	9 Months Ended
	Oct. 31, 2017 USD ($)
Schedule of Estimated Fair Values of Assets Acquired [Abstract]
Inventory	$ 49
Property, plant and equipment	12,000
Total assets acquired and purchase price	$ 12,049

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LEASES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands	Oct. 31, 2017 USD ($)
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract]
Remainder of 2018	$ 1,774
2019	6,910
2020	5,700
2021	3,931
2022	3,299
Thereafter	3,026
Total	$ 24,640

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FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands		Oct. 31, 2017	Jan. 31, 2017
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures (1)	[1]	$ 120	$ 45
Forward purchase contract asset	[2]		163
Investment in cooperative (2)	[3]	333	333
Total assets		453	541
Forward purchase contract liability (3)	[4]	287	136
Fair Value, Inputs, Level 1 [Member]
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures (1)	[1]
Forward purchase contract asset	[2]
Investment in cooperative (2)	[3]
Forward purchase contract liability (3)	[4]
Fair Value, Inputs, Level 2 [Member]
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures (1)	[1]	120	45
Forward purchase contract asset	[2]		163
Investment in cooperative (2)	[3]
Total assets		120	208
Forward purchase contract liability (3)	[4]	287	136
Fair Value, Inputs, Level 3 [Member]
FAIR VALUE (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity futures (1)	[1]
Forward purchase contract asset	[2]
Investment in cooperative (2)	[3]	333	333
Total assets		333	333
Forward purchase contract liability (3)	[4]

[1] Commodity futures are included in "Prepaid expenses and other current assets" on the accompanying Consolidated Condensed Balance Sheets.

[2] The forward purchase contract asset is included in "Prepaid expenses and other current assets" on the accompanying Consolidated Condensed Balance Sheets.

[3] The investment in cooperative is included in "Other assets" on the accompanying Consolidated Condensed Balance Sheets.

[4] The forward purchase contract liability is included in "Accrued expenses and other current liabilities" on the accompanying Consolidated Condensed Balance Sheets.

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PROPERTY AND EQUIPMENT (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Schedule of Property and Equipment [Abstract]
Land and improvements	$ 21,074	$ 20,951
Buildings and improvements	23,272	23,203
Machinery, equipment and fixtures	280,986	255,348
Construction in progress	6,590	1,046
	331,922	300,548
Less: accumulated depreciation	(132,963)	(117,787)
Total	$ 198,959	$ 182,761

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OTHER ASSETS (Details) - Schedule of Other Assets - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Schedule of Other Assets [Abstract]
Real estate taxes refundable	$ 6,450	$ 5,923
Deposits	5	155
Other	735	835
Total	$ 7,190	$ 6,913

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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Schedule of accrued expenses and other current liabilities [Abstract]
Accrued utility charges	$ 2,097	$ 2,414
Accrued payroll and related items	2,855	4,279
Accrued real estate taxes	1,966	2,716
Accrued income taxes	52	2,120
Other	4,253	1,819
Total	$ 11,223	$ 13,348

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REVOLVING LINES OF CREDIT (Details) - One Earth Energy And Nu Gen Energy [Member] - Revolving Credit Facility [Member] $ in Millions	9 Months Ended
	Oct. 31, 2017 USD ($)
REVOLVING LINES OF CREDIT (Details) [Line Items]
Debt Instrument, Maturity Date	Jun. 01, 2018
Line of Credit, Current	$ 10.0

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DERIVATIVE FINANCIAL INSTRUMENTS (Details) bu in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2017 USD ($) bu	Oct. 31, 2016 USD ($)	Oct. 31, 2017 USD ($) bu	Oct. 31, 2016 USD ($)	Jan. 31, 2017 bu
Disclosure Text Block Supplement [Abstract]
Quantity Of Bushels Under Commodity Futures (in US Bushels) | bu	1.5		1.5		0.7
Quantity of Bushels under Forward Purchase Contract (in US Bushels) | bu	4.7		4.7		5.3
Debt Instrument, Collateral Amount | $	$ 230,000		$ 230,000
Derivative, Gain on Derivative | $	$ 75,000	$ 115,000	$ 1,052,000	$ 1,740,000

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DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments - USD ($) $ in Thousands		Oct. 31, 2017	Jan. 31, 2017
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items]
Asset Derivatives, Fair Value		$ 120	$ 208
Liability Derivatives, Fair Value		287	136
Commodity Contract [Member]
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items]
Asset Derivatives, Fair Value	[1]	120	45
Liability Derivatives, Fair Value	[1]
Forward Contracts [Member]
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Schedule of Fair Values for Derivative Financial Instruments [Line Items]
Asset Derivatives, Fair Value	[2]		163
Liability Derivatives, Fair Value	[2]	$ 287	$ 136

[1] Commodity futures are included in prepaid expenses and other current assets. These contracts are short/sell positions for approximately 1.5 million and 0.7 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

[2] Forward purchase contracts assets are included in prepaid expenses and other current assets while forward purchase contracts liabilities are included in accrued expenses and other current liabilities. These contracts are for purchases of approximately 4.7 million and 5.3 million bushels of corn at October 31, 2017 and January 31, 2017, respectively.

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INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Apr. 30, 2016	Oct. 31, 2017	Oct. 31, 2016	Jan. 31, 2017
INVESTMENTS (Details) [Line Items]
Income (Loss) from Equity Method Investments	$ 1,094	$ 1,838		$ 1,931	$ 3,257
Proceeds from Equity Method Investment, Distribution				4,009	4,010
Gain (Loss) on Sale of Investments				(13)	$ 192
Big River [Member]
INVESTMENTS (Details) [Line Items]
Income (Loss) from Equity Method Investments				15,700		$ 17,800
Proceeds from Equity Method Investment, Distribution				4,000
Equity Method Investment, Underlying Equity in Net Assets	$ 276,400			$ 276,400		$ 278,700
Patriot [Member]
INVESTMENTS (Details) [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired			100.00%
Proceeds From Payment For Escrow Holdbacks And Adjustments			$ 2,300
Gain (Loss) on Sale of Investments			$ 200

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INVESTMENTS (Details) - Schedule of Equity Method Investments - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2017	Jan. 31, 2017
Schedule of Equity Method Investments [Line Items]
Big River	$ 35,755	$ 37,833
Big River [Member]
Schedule of Equity Method Investments [Line Items]
Big River	10.3% at October 31, 2017 and 9.7% at January 31, 2017
Big River	$ 35,755	$ 37,833

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INVESTMENTS (Details) - Schedule of Financial information For Equity Method Investment - Big River [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
INVESTMENTS (Details) - Schedule of Financial information For Equity Method Investment [Line Items]
Net sales and revenue	$ 201,621	$ 216,505	$ 606,190	$ 611,050
Gross profit	18,620	26,191	38,363	49,119
Income from continuing operations	11,010	18,934	19,628	33,555
Net income	$ 11,010	$ 18,934	$ 19,628	$ 33,555

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EMPLOYEE BENEFITS (Details) - USD ($)	Oct. 31, 2017	Jan. 31, 2017
EMPLOYEE BENEFITS (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 277,000	$ 214,000
Stock Option Plans 2015 [Member] | Employee Stock Option [Member]
EMPLOYEE BENEFITS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	550,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	511,174

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EMPLOYEE BENEFITS (Details) - Schedule of Non-Vested Restricted Stock Award Activity - $ / shares $ / shares in Thousands	9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Schedule of Non-Vested Restricted Stock Award Activity [Abstract]
Non-Vested, Beginning of Period	23,350	3,168
Non-Vested, Beginning of Period	$ 1,386	$ 200
Non-Vested, Beginning of Period	2 years	2 years
Granted	14,156	21,502
Granted	$ 1,370	$ 1,269
Forfeited
Forfeited
Vested	8,091	1,320
Vested	$ 481	$ 83
Non-Vested, End of Period	29,415	23,350
Non-Vested, End of Period	$ 2,275	$ 1,386
Non-Vested, End of Period	2 years	2 years

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INCOME TAXES (Details) - Schedule of Unrecognized Tax Benefits Roll Forward - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Schedule of Unrecognized Tax Benefits Roll Forward [Abstract]
Unrecognized tax benefits, beginning of period	$ 2,096	$ 987
Changes for prior years’ tax positions	247	749
Changes for current year tax positions		491
Unrecognized tax benefits, end of period	$ 2,343	$ 2,227

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COMMITMENTS AND CONTINGENCIES (Details) lb in Millions, gal in Millions, bu in Millions, $ in Millions	9 Months Ended
	Oct. 31, 2017 USD ($) T lb bu gal	Jan. 31, 2017 bu
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Quantity of Bushels under Forward Purchase Contract	4.7	5.3
One Earth Energy And Nu Gen Energy [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Quantity of Bushels under Forward Purchase Contract	9.1
Quantity of Ethanol under Sales Commitment | gal	29.8
Quantity of Distillers Grains Under Sales Commitment | T	108,000
Quantity of Non-food Grade Corn Oil Under Sales Commitments | lb	16.7
Supply Commitment Expected Period Of Delivery	They expect to deliver the ethanol, distillers grains and non-food grade corn oil through December2017.
Refined Coal [Member]
COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Operating Leases, Rent Expense, Net | $	$ 2.4

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RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016	Jan. 31, 2017
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Accrued Liabilities for Commissions, Expense and Taxes	$ 1.5		$ 1.5
One Earth Energy And Nu Gen Energy [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Costs and Expenses, Related Party	43.4	$ 34.2	121.8	$ 114.6
Accounts Payable, Related Parties, Current	$ 2.7		2.7		$ 1.7
Refined Coal [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Costs and Expenses, Related Party			$ 1.6

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SEGMENT REPORTING (Details)	3 Months Ended	6 Months Ended	9 Months Ended
	Oct. 31, 2017	Jul. 31, 2017	Oct. 31, 2017
Segment Reporting [Abstract]
Number of Operating Segments	2	1	2
Effective Income Tax Rate Reconciliation, Percent	62.00%		4.00%

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SEGMENT REPORTING (Details) - Schedule Of Segment Results And Assets - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Oct. 31, 2017	Oct. 31, 2016	Oct. 31, 2017	Oct. 31, 2016
Segment Reporting Information [Line Items]
Net sales and revenue:		$ 121,164	$ 116,283	$ 343,051	$ 332,212
Segment gross profit (loss):		14,867	20,162	38,137	45,868
Income (loss) before income taxes:		9,259	17,214	23,734	35,740
Benefit (provision) for income taxes:		5,735	(5,740)	1,043	(11,771)
Segment profit (loss):		13,168	8,938	20,653	19,952
Sales of products:		120,971	116,283	342,858	332,212
Ethanol [Member]
Segment Reporting Information [Line Items]
Net sales and revenue:		120,971	116,283	342,858	332,212
Segment gross profit (loss):		18,257	20,162	41,527	45,868
Income (loss) before income taxes:		15,554	17,682	31,807	37,294
Benefit (provision) for income taxes:		(4,379)	(5,917)	(9,712)	(12,331)
Segment profit (loss):		9,058	9,209	17,665	20,901
Sales of products:		96,296	90,702	276,553	259,266
Refined Coal [Member]
Segment Reporting Information [Line Items]
Net sales and revenue:	[1]	193		193
Segment gross profit (loss):		(3,390)		(3,390)
Income (loss) before income taxes:		(5,684)		(5,684)
Benefit (provision) for income taxes:	[2]	9,918		9,918
Segment profit (loss):		4,520		4,520
Sales of products:		193		193
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Income (loss) before income taxes:		(611)	(468)	(2,389)	(1,554)
Benefit (provision) for income taxes:		196	177	837	560
Segment profit (loss):		(410)	(271)	(1,532)	(949)
Dried Distillers Grains [Member]
Segment Reporting Information [Line Items]
Sales of products:		16,703	19,551	45,325	55,551
Non-Food Grade Corn Oil [Member]
Segment Reporting Information [Line Items]
Sales of products:		6,041	5,074	15,359	13,658
Modified Distillers Grains [Member]
Segment Reporting Information [Line Items]
Sales of products:		1,889	853	5,557	3,400
Other Segments [Member]
Segment Reporting Information [Line Items]
Sales of products:		$ 42	$ 103	$ 64	$ 337

[1] The Company records sales in the refined coal segment net of the cost of coal as the Company purchases the coal feedstock from the customer to which refined coal is sold.

[2] The Company records its tax provision/benefit based on an estimated annual rate adjusted for items recorded discretely which it estimates to be approximately negative 4%. As a result of the timing of the refined coal acquisition on August 10, 2017, the Company's effective tax rate for the quarter ended October 31, 2017 was a benefit of approximately 62%, which then results in a year to date effective rate of a benefit of approximately 4%.

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SEGMENT REPORTING (Details) - Schedule Of Segment Assests - USD ($) $ in Thousands	Oct. 31, 2017	Jan. 31, 2017
Segment Reporting Information [Line Items]
Assets:	$ 474,345	$ 454,024
Ethanol [Member]
Segment Reporting Information [Line Items]
Assets:	396,927	371,465
Refined Coal [Member]
Segment Reporting Information [Line Items]
Assets:	11,937
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Assets:	$ 65,481	$ 82,559