2.NET SALES AND REVENUE

 

The Company recognizes sales of products when obligations under the terms of the respective contracts with customers are satisfied. This occurs with the transfer of control of products, generally upon shipment from the ethanol plant or upon loading of the rail car used to transport the products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods. Sales, value added and other taxes the Company collects concurrent with revenue producing activities are excluded from net sales and revenue.

 

The majority of the Company’s sales have payment terms ranging from 5 to 10 days after transfer of control. The Company has determined that sales contracts do not generally include a significant financing component. The Company has not historically, and does not intend to, enter sales contracts in which payment is due from a customer prior to transferring product to the customer. Thus, the Company does not record unearned revenue.

 

The following table shows disaggregated revenue by product (amounts in thousands):

 

   Fiscal Year
    2025    2024    2023 
Sales of products:               
                
Ethanol  $504,416   $496,411   $635,420 
Dried distillers grains   88,156    101,432    139,173 
Distillers corn oil   52,382    38,999    52,935 
Modified distillers grains   5,388    4,896    5,584 
Derivative financial instruments (losses) gains   (254)    424    (37) 
Other   399    329    309 
Total sales  $650,487   $642,491   $833,384 

Historical Timeline

Fiscal YearFiled
2026Mar 30, 2026Showing above
2025Mar 28, 2025
2024Mar 29, 2024
2023Mar 30, 2023
2022Apr 6, 2022
2019Mar 29, 2019
2018Mar 29, 2018
2017Mar 27, 2017
2016Mar 25, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.