CHS Inc. Files Q1 2025 10-Q Report

Ticker: CHSCO · Form: 10-Q · Filed: Jan 8, 2025

Sentiment: neutral

Topics: 10-Q, agriculture, energy, cooperative

TL;DR

CHS Inc. Q1 2025 10-Q filed. Energy segment details included.

AI Summary

CHS Inc. filed its 10-Q for the period ending November 30, 2024. The filing covers the first quarter of their fiscal year. Key financial details and operational segments, such as Energy, are presented. The company's primary business involves wholesale farm product raw materials.

Why It Matters

This report provides investors and stakeholders with an update on CHS Inc.'s financial performance and operational status for the first quarter of fiscal year 2025.

Risk Assessment

Risk Level: medium — As a cooperative, CHS Inc.'s financial performance is tied to the agricultural sector, which can be subject to commodity price volatility and weather-related risks.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is November 30, 2024.

What is the primary business of CHS Inc. according to the filing?

CHS Inc. is primarily involved in Wholesale - Farm Product Raw Materials, with SIC code 5150.

When was CHS Inc. previously known as Cenex Harvest States Cooperatives?

The company changed its name from Cenex Harvest States Cooperatives on June 11, 1998.

What are some of the segments mentioned in the filing related to energy?

The filing mentions 'Energy' as a segment, with references to ASC Topic 606 and ASC Topic 815 within the energy context.

What is the state of incorporation for CHS Inc.?

CHS Inc. is incorporated in Minnesota (MN).

Filing Stats: 4,449 words · 18 min read · ~15 pages · Grade level 16.5 · Accepted 2025-01-08 11:10:39

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page No. Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 2 Condensed Consolidated Balance Sheets as of Novembe r 3 0 , 2024, and August 31, 202 4 2 Condensed Consolidated Statements of Operations for the Three Months Ended November 3 0 , 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended November 3 0 , 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the Three Months Ended November 3 0 , 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 5. Other Information 36 Item 6. Exhibits 36

Signatures

Signatures 37 Unless the context otherwise requires, for purposes of this Quarterly Report on Form 10-Q, the words "CHS," "we," "us" and "our" refer to CHS Inc., a Minnesota cooperative corporation, and its subsidiaries as of November 30, 2024 .

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains, and our other CHS Inc. publicly available documents contain, and our officers, directors and representatives may from time to time make "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our businesses, financial condition and results of operations, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward- looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward- looking statements are discussed or identified in our filings made with the U.S. Securities and Exchange Commission, including in the "Risk Factors" discussion in Item 1A of CHS Annual Report on Form 10-K for the fiscal year ended August 31, 2024. These factors may include changes in commodity prices; political, economic, legal and other risks of doing business globally; ongoing wars and global conflicts; global and regional factors impacting demand for ou

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CHS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) November 30, 2024 August 31, 2024 (Dollars in thousands) ASSETS Current assets: Cash and cash equivalents $ 450,491 $ 794,865 Receivables 3,740,766 3,549,917 Inventories 3,901,294 3,067,415 Other current assets 1,265,673 1,296,586 Total current assets 9,358,224 8,708,783 Investments 3,864,186 3,780,967 Property, plant and equipment 5,239,387 5,177,355 Other assets 1,114,291 1,047,970 Total assets $ 19,576,088 $ 18,715,075 LIABILITIES AND EQUITIES Current liabilities: Notes payable $ 331,689 $ 306,831 Current portion of long-term debt 337,380 337,266 Accounts payable 3,495,276 2,697,290 Accrued expenses 603,629 783,945 Other current liabilities 1,301,413 1,275,482 Total current liabilities 6,069,387 5,400,814 Long-term debt 1,821,746 1,824,194 Other liabilities 866,567 728,143 Commitments and contingencies (Note 13) Equities: Preferred stock 2,264,038 2,264,038 Equity certificates 5,933,353 5,982,369 Accumulated other comprehensive loss ( 304,802 ) ( 296,542 ) Capital reserves 2,919,830 2,805,526 Total CHS Inc. equities 10,812,419 10,755,391 Noncontrolling interests 5,969 6,533 Total equities 10,818,388 10,761,924 Total liabilities and equities $ 19,576,088 $ 18,715,075 The accompanying notes are an integral part of the condensed consolidated financial statements (unaudited). 2 Table of Contents CHS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended November 30, 2024 2023 (Dollars in thousands) Revenues $ 9,294,112 $ 11,390,658 Cost of goods sold 8,893,436 10,745,708 Gross profit 400,676 644,950 Marketing, general and administrative expenses 262,850 252,056 Operating earnings 137,826 392,894 Interest expense 27,648 29,628 Other income ( 26,364 ) ( 44,529 ) Equity income from investments ( 122,295 ) ( 109,051 ) Income before income taxes 258,837 516,

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