UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 30, 2023

 

REX AMERICAN RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware   001-09097   31-1095548
(State or other jurisdiction   (Commission File No.)   (IRS Employer Identification No.)
of incorporation)        

 

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

 

Registrant’s telephone number, including area code: (937) 276-3931

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading symbol Name of each exchange on which registered
Commons stock, $0.01 par value REX New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

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. ☐

 
 Item 2.02.   Results of Operations and Financial Condition

 

On November 30, 2023, REX American Resources Corporation issued a press release announcing financial results for the three-month period ended October 31, 2023. The press release is furnished as Exhibit 99 to this report.

 

Item 9.01.   Financial Statements and Exhibits  
    (c) Exhibits. The following exhibits are furnished with this report:

99   Press Release dated November 30, 2023
       
      104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
         
 

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 hereunto duly authorized.

 

  REX AMERICAN RESOURCES CORPORATION
         
Date: November 30, 2023 By: /s/ DOUGLAS L. BRUGGEMAN  
    Name:  Douglas L. Bruggeman
    Title: Vice President - Finance,
      Chief Financial Officer
      and Treasurer
 
false 0000744187 0000744187 2023-11-30 2023-11-30

Exhibit 99

 

 

NEWS ANNOUNCEMENT FOR IMMEDIATE RELEASE

 

REX AMERICAN RESOURCES REPORTS ALL TIME RECORD NET INCOME PER SHARE ATTRIBUTABLE TO REX COMMON SHAREHOLDERS OF $1.49 FOR ITS FISCAL 2023 THIRD QUARTER

 

Dayton, Ohio, (November 30, 2023) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2023 third quarter (“Q3 ‘23”) ended October 31, 2023. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

Conference Call:

Webcast / Replay URL:

212/231-2938

www.rexamerican.com

The webcast will be available for replay for 30 days.

 

REX American Resources’ Q3 ‘23 results principally reflect its interests in six ethanol production facilities. The One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) ethanol production facilities are consolidated, while the four other ethanol plants are reported as equity in income of unconsolidated ethanol affiliates.

 

REX’s Q3 ‘23 net sales and revenue were $221.1 million, compared with $220.3 million in Q3 ‘22. The year-over-year net sales and revenue increase primarily reflects a 10.4% increase in the quantities of ethanol sold, partially offset by lower prices for ethanol, dried and modified distillers grains, and corn oil. Q3 ‘23 gross profit increased 323.7% to $39.3 million, from $9.3 million in Q3 ‘22, primarily reflecting decreased input costs, including lower corn and natural gas pricing. As a result, income before income taxes and non-controlling interests was $41.3 million, compared with $6.1 million in the comparable year-ago period.

 

Net income attributable to REX common shareholders was $26.1 million in Q3 ‘23 compared with $3.2 million in Q3 ‘22. This led to Q3 ‘23 basic and diluted net income per share attributable to REX common shareholders of $1.49, an all time quarterly record, compared to $0.18 per share in Q3 ‘22. Per share results for the Q3 ‘23 and Q3 ‘22 periods are based on 17,531,000 and 17,591,000 diluted weighted average shares outstanding, respectively.

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “Our fiscal third quarter results mark the best quarterly net income and earnings per share results in our 39 year history as a public company and highlights the strength of our ethanol operations. The substantial increase in income before taxes to $41.3 million underscores the efficiency of our operations and our ability to capitalize on favorable industry conditions.

 

“REX remains committed to a sustainable future by fully embracing the power of ethanol. We continue to make progress on our cutting-edge carbon sequestration initiatives including beginning construction on a carbon capture facility, implementing carbon intensity (CI) score reduction projects and expanding capacity from 150 to 175 million gallons, with the ultimate goal being annual production capacity of 200 million gallons all at the One Earth plant location.

 
REX American Resources Q3 ‘23 Results, 11/30/23 page 2

 

“As we look ahead, we are confident in our ability to extend our long track record of leading ethanol industry operating results, and advancing our carbon capture and sequestration initiatives, while growing our capacity. With a disciplined operating approach and focus on profitability, we expect these initiatives will lead to incremental cash generation and added shareholder value creation.”

 

Balance Sheet

As of October 31, 2023, REX had cash and cash equivalents and short-term investments of $332.0 million, $34.1 million of which was at the parent company and $297.9 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2023, of $280.9 million, $42.1 million of which was at the parent company and $238.8 million of which was at its consolidated production facilities.

 

The following table summarizes select data related to REX’s

consolidated alternative energy interests:

 

   Three Months
Ended		  Nine Months
Ended
   October 31,  October 31,
   2023  2022  2023  2022
Average selling price per gallon of ethanol  $2.32   $2.49   $2.32   $2.48 
                     
Average selling price per ton of dried distillers grains  $194.94   $230.29   $220.92   $232.51 
                     
Average selling price per pound of distillers corn oil  $0.61   $0.74   $0.60   $0.70 
                     
Average selling price per ton of modified distillers grain  $85.86   $116.49   $104.94   $120.23 
                     
Ethanol gallons sold (in millions)   73.2    66.3    213.8    202.1 
 
REX American Resources Q3 ‘23 Results, 11/30/23 page 3

 

Change in Accounting Principles

In the previous quarter ended July 31, 2023 the Company made a change in the method of accounting to begin classifying shipping and handling costs as cost of sales, instead of within selling, general and administrative expenses (SG&A), as historically presented, in order to improve the comparability of gross profit and SG&A reported. The Company has applied a retrospective application of the new accounting policy.

 

The following table summarizes the impact of the Company’s

retrospective change in accounting principle:

 

   Three Months Ended 
   October 31, 2022 
   As Previously
Reported		  Effect of
Change		  As Currently
Reported
Cost of Sales  $208,941   $2,063   $211,004 
                
Gross Profit  $11,336   $(2,063)  $9,273 
                
Selling, general and administrative expenses  $(7,886)  $2,063   $(5,823)

 

 

   Nine Months Ended
   October 31, 2022
   As Previously
Reported		  Effect of
Change		  As Currently
Reported
Cost of Sales  $615,001   $4,548   $619,549 
                
Gross Profit  $39,832   $(4,548)  $35,284 
                
Selling, general and administrative expenses  $(22,237)  $4,548   $(17,689)

 

Third Quarter Conference Call

REX will host a conference call at 11:00 a.m. ET today to discuss the quarterly results and will host a question and answer session. The dial in number for the audio conference call is 212/231-2938 (domestic and international callers). Participants can also listen to a live webcast of the call on the Company’s website at, www.rexamerican.com. A webcast replay will be available for 30 days following the live event.

 

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 704 million gallons of ethanol over the twelve-month period ended October 31, 2023. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended October 31, 2023) by the ethanol production facilities in which it has ownership interests was approximately 282 million gallons. Further information about REX is available at www.rexamerican.com.

 
REX American Resources Q3 ‘23 Results, 11/30/23 page 4

 

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 effect of pandemics such as COVID-19 on the Company’s business operations, including impacts on supplies, demand, personnel and other factors, the impact of legislative and regulatory changes, the price volatility and availability of corn, distillers grains, ethanol, distillers corn oil, commodity market risk, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, success in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, changes in the international, national or regional economies, the impact of inflation, the ability to attract employees, weather, results of income tax audits, changes in income tax laws or regulations, the impact of U.S. foreign trade policy, changes in foreign currency exchange rates 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.

 

Contact:

Douglas Bruggeman Joseph Jaffoni, Norberto Aja
Chief Financial Officer JCIR
(937) 276-3931 (212) 835-8500 / rex@jcir.com
 
REX American Resources Q3 ‘23 Results, 11/30/23page 5

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

 

   Three Months Ended   Nine Months Ended 
   October 31,   October 31, 
   2023   2022   2023   2022 
Net sales and revenue  $221,079   $220,277   $645,770   $654,833 
Cost of sales   181,789    211,004    577,962    619,549 
Gross profit   39,290    9,273    67,808    35,284 
Selling, general and administrative expenses   (7,609)    (5,823)    (21,996)    (17,689) 
Equity in income of unconsolidated ethanol affiliates   4,738    661    9,275    6,210 
Interest and other income, net   4,863    1,983    10,935    10,338 
Income before income taxes and noncontrolling interests   41,282    6,094    66,022    34,143 
Provision for income taxes   (9,640)    (1,196)    (15,396)    (7,374) 
Net Income   31,642    4,898    50,626    26,769 
Net Income attributable to noncontrolling interests   (5,566)    (1,714)    (10,259)    (7,233) 
Net income attributable to REX common shareholders  $26,076   $3,184   $40,367   $19,536 
                     
Weighted average shares outstanding – basic and diluted   17,531    17,591    17,461    17,714 
                     
Basic and diluted net income per share attributable to REX common shareholders  $1.49   $0.18   $2.31   $1.10 

 

- balance sheets follow -

 
REX American Resources Q3 ‘23 Results, 11/30/23page 6

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

   October 31,   January 31, 
   2023   2023 
ASSETS:        
CURRENT ASSETS:          
Cash and cash equivalents  $72,828   $69,612 
Short-term investments   259,172    211,331 
Restricted cash   1,728    1,735 
Accounts receivable   30,138    25,162 
Inventory   37,515    48,744 
Refundable income taxes   4,448    2,962 
Prepaid expenses and other   12,256    13,098 
Total current assets   418,085    372,644 
Property and equipment, net   144,567    135,497 
Operating lease right-of-use assets   14,516    15,214 
Other assets   13,589    23,179 
Equity method investment   36,807    33,045 
TOTAL ASSETS  $627,564   $579,579 
LIABILITIES AND EQUITY:          
CURRENT LIABILITIES:          
Accounts payable – trade  $28,766   $34,091 
Current operating lease liabilities   5,082    5,180 
Accrued expenses and other current liabilities   14,842    15,328 
Total current liabilities   48,690    54,599 
LONG-TERM LIABILITIES:          
Deferred taxes   1,097    1,097 
Long-term operating lease liabilities   9,157    9,855 
Other long-term liabilities   3,072    3,034 
Total long-term liabilities   13,326    13,986 
EQUITY:          
REX shareholders’ equity:          
Common stock   299    299 
Paid-in capital   3,475    578 
Retained earnings   681,193    640,826 
Treasury stock   (191,974)    (193,721) 
Total REX shareholders’ equity   492,993    447,982 
Noncontrolling interests   72,555    63,012 
Total equity   565,548    510,994 
TOTAL LIABILITIES AND EQUITY  $627,564   $579,579 

 

- statements of cash flows follow -

 
REX American Resources Q3 ‘23 Results, 11/30/23page 7

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

   Nine Months Ended 
   October 31,   October 31, 
   2023   2022 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net Income including noncontrolling interest  $50,626   $26,769 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation   13,371    13,503 
Amortization of operating lease right-of-use assets   3,766    4,105 
Income from equity method investments   (9,275)    (6,210) 
Dividends received from equity method investments   5,513    3,007 
Interest income from investments   (6,950)    (1,098) 
Deferred income taxes   10,048    4,964 
Stock based compensation expense   5,146    1,295 
Loss (gain) on sale of property and equipment – net   205    (91) 
Changes in assets and liabilities:          
Accounts receivable   (4,976)    3,146 
Inventories   11,229    180 
Refundable income taxes   (1,486)    66 
Other assets   409    649 
Accounts payable – trade   (5,622)    7,990 
Other liabilities   (4,812)    (4,281) 
Net cash provided by operating activities   67,192    53,994 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (22,359)    (7,182) 
Purchase of short-term investments   (378,381)    (307,371) 
Sale of short-term investments   337,490    180,527 
Deposits   (27)    - 
Proceeds from sale of real estate and property and equipment   10    - 
Net cash used in investing activities   (63,267)    (134,026) 
CASH FLOWS FROM FINANCING ACTIVITIES:          
Treasury stock acquired   -    (13,012) 
Payments to noncontrolling interests holders   (716)    (1,730) 
Net cash used in financing activities   (716)    (14,742) 
           
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   3,209    (94,774) 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of period   71,347    232,068 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of period  $74,556   $137,294 
           
Non-cash financing activities – Stock awards accrued  $1,467   $679 
Non-cash financing activities – Stock awards issued  $965   $1,539 
Non-cash investing activities – Accrued capital expenditures  $722   $93 
Right-of-use assets acquired and liabilities incurred upon lease execution  $3,210   $7,632 

 

# # #

 
v3.23.3
Document And Entity Information
Nov. 30, 2023
Document Information Line Items  
Entity Registrant Name REX AMERICAN RESOURCES CORPORATION
Trading Symbol REX
Document Type 8-K
Amendment Flag false
Entity Central Index Key 0000744187
Document Period End Date Nov. 30, 2023
Entity Emerging Growth Company false
Entity Incorporation, State or Country Code DE
Entity File Number 001-09097
Entity Tax Identification Number 31-1095548
Entity Address, Address Line One 7720 Paragon Road
Entity Address, City or Town Dayton
Entity Address, State or Province OH
Entity Address, Postal Zip Code 45459
City Area Code 937
Local Phone Number 276-3931
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Commons stock, $0.01 par value
Security Exchange Name NYSE
REX American Resources (NYSE:REX)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more REX American Resources Charts.
REX American Resources (NYSE:REX)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more REX American Resources Charts.