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Leases

3 Months Ended

Jul. 31, 2024

Disclosure Text Block [Abstract]

Leases of Lessee Disclosure [Text Block]

Note 4. Leases

At July 31, 2024, the Company had lease agreements, as lessee, for railcars. All of the leases are accounted for as operating leases. The lease agreements do not contain a specified implicit interest rate; therefore, the Company’s estimated incremental borrowing rate was used to determine the present value of future minimum lease payments. The lease term for all of the Company’s leases includes the noncancelable period of the lease and any periods covered by renewal options that the Company is reasonably certain to exercise. Certain leases include rent escalations pre-set in the agreements, which are factored into the lease payment stream.

The components of lease expense, classified as SG&A expenses on the Consolidated Statement of Operations are as follows (amounts in thousands):

		Three Months Ended July 31,								Six Months Ended July 31,
		2024				2023				2024				2023

Operating lease expense		$	1,688			$	1,431			$	3,370			$	3,192
Variable lease expense			(59)				61				(5)				303
Total lease expense		$	1,629			$	1,492			$	3,365			$	3,495

The following table is a summary of future minimum rentals on such leases at July 31, 2024 (amounts in thousands):

Years Ended January 31,		Minimum Rentals

Remainder of 2025		$	2,363
2026			3,766
2027			3,717
2028			3,287
2029			1,959
Thereafter			595
Total			15,687
Less: present value discount			2,489
Operating lease liabilities		$	13,198

At July 31, 2024, the weighted average remaining lease term is 3.8 years, and the weighted average discount rate is 6.50% for the outstanding leases. At January 31, 2024, the weighted average remaining lease term was 3.4 years, and the weighted average discount rate was 5.94% for the outstanding leases.