REX REX American Resources Corporation

REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2017 first quarter (“Q1 ‘17”) ended April 30, 2017. REX management will host a conference call and webcast today at 11:00 a.m. ET to review the results.

       

Conference Call:

    (303) 223-4381

Webcast / Replay URL:

www.rexamerican.com/Corp/Page4.aspx

      The webcast will be available for replay for 30 days  

REX American Resources’ Q1 ‘17 results principally reflect its interests in six ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated, while those of its four remaining plants are reported as equity in income of unconsolidated ethanol affiliates.

REX’s Q1 ‘17 net sales and revenue grew 12.9% to $113.1 million, compared with $100.0 million in Q1 ‘16, primarily reflecting a 9.1% increase in the average sales price per gallon of ethanol as well as REX’s initiatives to increase plant-level production. These were partially offset by the decline in distillers grains and modified distillers grains prices. Gross profit increased 48.3% to $12.5 million, compared to $8.4 million during the prior year period, primarily reflecting improved crushed spread margins offset by lower distillers grains pricing.

Equity in income of unconsolidated ethanol affiliates in Q1 ‘17 increased to $0.7 million, from $0.2 million in Q1 ’16, primarily as a result of the more favorable ethanol crush spread margins during the quarter. As a result, income from continuing operations before income taxes and non-controlling interests in Q1 ‘17 grew 60.7% to $8.0 million, compared with $5.0 million in Q1 ‘16.

Net income attributable to REX shareholders in Q1 ‘17 was $4.5 million, compared with $2.8 million in Q1 ‘16, while Q1 ‘17 diluted net income per share attributable to REX common shareholders increased 60.5% to $0.69 per share, compared to $0.43 per share in Q1 ‘16. Per share results in Q1 ‘17 and Q1 ‘16 are based on 6,593,000 and 6,594,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We achieved both top and bottom-line growth in the first quarter, compared to the prior year’s first quarter, highlighting our disciplined approach to ensure operating excellence throughout the organization. Our operating strategies led to significant year over year growth across key financial metrics, including gross profit, net income, diluted earnings per share and operating cash flow generation. We are particularly pleased with the early success of efforts to increase production at our plants, as reflected in the nearly 8% increase in ethanol gallons sold during the period, compared to last year’s first quarter.”

Balance Sheet and Share Repurchase Program

At April 30, 2017, REX had cash and cash equivalents of $191.5 million, $76.5 million of which was at the parent company and $115.0 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $188.6 million at January 31, 2017, $79.5 million of which was at the parent company and $109.1 million of which was at its consolidated ethanol production facilities.

The Company is currently authorized to repurchase up to an additional 155,334 shares of common stock and has 6,558,679 shares outstanding.

 

The following table summarizes select data related to the Company’s consolidatedalternative energy interests:

     

Three MonthsEnded April 30,

     

2017

   

2016

Average selling price per gallon of ethanol     $ 1.44     $ 1.32 Average selling price per ton of dried distillers grains     $ 100.06     $ 125.29 Average selling price per pound of non-food grade corn oil     $ 0.28     $ 0.24 Average selling price per ton of modified distillers grains     $ 41.91     $ 59.82 Average cost per bushel of grain     $ 3.47     $ 3.52 Average cost of natural gas (per mmbtu)     $ 3.74     $ 3.22          

Supplemental Data Related to REX’s Alternative Energy Interests:

REX American Resources CorporationEthanol Ownership Interests/Effective Annual Gallons Shipped as of April 30, 2017(gallons in millions)

Entity

 

TrailingTwelveMonthsGallonsShipped

 

CurrentREXOwnershipInterest

 

 

REX’s CurrentEffective Ownershipof Trailing TwelveMonth GallonsShipped

One Earth Energy, LLC(Gibson City, IL)

  120.5   75.0%   90.4

NuGen Energy, LLC(Marion, SD)

  131.0   99.5%   130.3

Big River Resources West Burlington, LLC(West Burlington, IA)

  107.3   9.7%   10.4

Big River Resources Galva, LLC(Galva, IL)

  124.0   9.7%   12.0

Big River United Energy, LLC(Dyersville, IA)

  128.6   5.4%   6.9

Big River Resources Boyceville, LLC(Boyceville, WI)

  57.9   9.7%   5.6 Total   669.3   n/a   255.6      

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 669 million gallons of ethanol over the twelve month period ended April 30, 2017. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended April 30, 2017) by the ethanol production facilities in which it has ownership interests was approximately 256 million gallons. Further information about REX is available at www.rexamerican.com.

This news announcement contains or may contain forward-looking statements within the meaning of 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 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, dried and modified distillers grains, ethanol, corn oil, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the international, national or regional economies, weather, the effects of terrorism or acts of war and the impact of Internal Revenue Service audits. The Company does not intend to update publicly any forward-looking statements except as required by law.

- statements of operations follow -

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIESConsolidated Statements of Operations(in thousands, except per share amounts)Unaudited

     

Three MonthsEnded

April 30,

2017

 

2016

Net sales and revenue $ 113,143 $ 100,222 Cost of sales   100,654   91,800 Gross profit 12,489 8,422 Selling, general and administrative expenses (5,402) (4,027) Equity in income of unconsolidated ethanol affiliates 700 233 Gain on sale of investment - 192 Interest and other income   215   160 Income before income taxes and non-controlling interests 8,002 4,980 Provision for income taxes   (2,390)   (1,514) Net income including non-controlling interests 5,612 3,466 Net income attributable to non-controlling interests  

(1,068)

 

(628)

Net income attributable to REX common shareholders $ 4,544 $ 2,838   Weighted average shares outstanding – basic   6,593   6,573   Basic net income per share attributable to REX common shareholders

$

0.69

$

0.43

  Weighted average shares outstanding – diluted   6,593   6,594   Diluted net income per share attributable to REX common shareholders

$

0.69

$

0.43

   

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIESConsolidated Balance Sheets(in thousands) Unaudited

 

ASSETS:

   

April 30,2017

 

January 31,2017

CURRENT ASSETS: Cash and cash equivalents $   191,493 $ 188,576 Restricted cash 130 130 Accounts receivable 9,196 11,901 Inventory 20,427 17,057 Refundable income taxes 1,063 1,070 Prepaid expenses and other 7,075 6,959 Deferred taxes-net    

824

 

824

Total current assets 230,208 226,517 Property and equipment-net 184,674 182,761 Other assets 6,777 6,913 Equity method investments     38,533   37,833 TOTAL ASSETS $   460,192 $ 454,024 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable – trade $ 8,636 $ 9,171 Accrued expenses and other current liabilities    

14,261

 

13,348

Total current liabilities    

22,897

 

22,519

LONG TERM LIABILITIES: Deferred taxes 41,138 41,135 Other long term liabilities     2,242   2,096 Total long term liabilities    

43,380

 

43,231

COMMITMENTS AND CONTINGENCIES EQUITY: REX shareholders’ equity: Common stock, 45,000 shares authorized, 29,853 shares issued at par 299 299 Paid in capital 145,790 145,767 Retained earnings 512,751 508,207 Treasury stock, 23,292 shares    

(313,832)

 

(313,838)

Total REX shareholders’ equity 345,008 340,435 Non-controlling interests     48,907   47,839 Total equity    

393,915

 

388,274

TOTAL LIABILITIES AND EQUITY $   460,192 $ 454,024  

- statements of cash flows follow -

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIESConsolidated Statements of Cash Flows(in thousands) Unaudited

     

Three Months EndedApril 30,

2017

 

2016

CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,612 $ 3,466 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 4,934 4,812 Income from equity method investments (700) (233) Gain on sale of investment - (192) Deferred income tax 3 - Stock based compensation expense 196 15 Changes in assets and liabilities: Accounts receivable 2,705 (1,833) Inventories (3,370) (8,554) Other assets (30) 1,589 Accounts payable-trade (1,308) (2,284) Other liabilities   723   (2,465) Net cash provided by (used in) operating activities   8,765   (5,679) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (5,905) (4,474) Restricted cash - (466) Restricted investments and deposits 51 - Proceeds from sale of investment - 2,275 Other   6   6 Net cash used in investing activities   (5,848)   (2,659) CASH FLOWS FROM FINANCING ACTIVITIES:

Purchase of stock from noncontrolling interests holders

- (268) Treasury stock acquired   -   (4,709) Net cash used in financing activities   -   (4,977) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,917 (13,315) CASH AND CASH EQUIVALENTS – Beginning of period   188,576   135,765 CASH AND CASH EQUIVALENTS – End of period $ 191,493 $ 122,450 Non cash investing activities – Accrued capital expenditures $ 1,284 $ 634 Non cash financing activities – Equity awards accrued $ 167 $ -  

View source version on businesswire.com: http://www.businesswire.com/news/home/20170524005229/en/

REX American Resources CorporationDouglas Bruggeman, 937-276-3931Chief Financial OfficerorJCIRJoseph Jaffoni, Norberto Aja212-835-8500rex@jcir.com