REX American Resources Corporation (NYSE: REX) (“REX” or “the
Company”) today reported financial results for its fiscal 2019
first quarter (“Q1 ‘19”) ended April 30, 2019. REX management will
host a conference call and webcast today at 11:00 a.m. ET.
Conference Call:
212/231-2907
Webcast / Replay URL:
www.rexamerican.com/Corp/Page4.aspx
The webcast will be available for replay for 30 days.
REX American Resources’ Q1 ‘19 results principally reflect its
interests in six ethanol production facilities and its refined coal
operation. The One Earth Energy, LLC (“One Earth”) and NuGen
Energy, LLC (“NuGen”) ethanol production facilities are
consolidated, as is the refined coal entity, while those of its
four other ethanol plants are reported as equity in income of
unconsolidated ethanol affiliates. The Company reports results for
its two business segments as ethanol and by-products, and refined
coal.
REX’s Q1 ‘19 net sales and revenue were $104.6 million compared
with $120.8 million in Q1 ‘18. The decline in year-over-year net
sales and revenue primarily reflects lower production due to
weather-related logistical issues as well as lower average selling
prices for ethanol during the current year quarter. Primarily
reflecting these factors, the Company’s Q1 ‘19 gross profit for its
ethanol and by-products segment was $6.1 million, compared with
$13.5 million in Q1 ‘18. As a result, the ethanol and by-products
segment income before income taxes was $3.2 million in Q1 ‘19,
compared to $11.0 million in Q1 ‘18. The Company’s refined coal
operation incurred a $2.5 million gross loss and a $2.7 million
loss before income taxes in Q1 ‘19, compared to a $2.7 million
gross loss and a loss before income taxes of $2.9 million in Q1
‘18. As a result, REX reported income from continuing operations
before income taxes and non-controlling interests in Q1 ‘19 of $0.2
million, compared with $7.6 million in Q1 ‘18. While the refined
coal operation negatively impacted gross profit and income before
income taxes, it contributed a tax benefit of $3.9 million and $4.0
million for Q1 ’19 and Q1 ‘18, respectively.
Net income attributable to REX shareholders in Q1 ‘19 was $2.8
million, compared to $9.5 million in Q1 ‘18. Q1 ‘19 basic and
diluted net income per share attributable to REX common
shareholders was $0.45 per share, compared to $1.45 per share in Q1
‘18. Per share results in Q1 ‘19 and Q1 ‘18 are based on 6,315,000
and 6,571,000 diluted weighted average shares outstanding,
respectively.
Segment Income Statement Data:
Three Months Ended ($ in thousands)
April 30,
2019 2018 Net sales and revenue:
Ethanol & By-Products (1) $ 104,453 $ 120,680 Refined coal (2)
(3)
122 140
Total net sales and revenue
$ 104,575
$ 120,820 Gross
profit (loss): Ethanol & By-Products (1) $ 6,115 $ 13,546
Refined coal (2)
(2,469 )
(2,695 ) Total gross profit
$ 3,646 $
10,851
Income (loss) before income taxes
&
non-controlling interests:
Ethanol & By-Products (1) $ 3,205 $ 11,009 Refined coal (2)
(2,676 ) (2,859 ) Corporate and other
(362
) (501 )
Total income before income taxes &
non-controlling interests
$
167
$
7,649
Benefit (provision) for income taxes: Ethanol &
By-Products $ (486 ) $ (1,420 ) Refined coal 3,946 3,999 Corporate
and other
88 124
Total benefit for income taxes
$
3,548 $ 2,703
Segment profit (loss): Ethanol & By-Products $ 1,709 $
8,589 Refined coal 1,386 1,271 Corporate and other
(274 ) (364
) Net income attributable to REX common shareholders
$ 2,821 $
9,496 (1) Includes results
attributable to non-controlling interests of approximately 25% for
One Earth and approximately 1% for NuGen. (2) Includes results
attributable to non-controlling interests of approximately 5%. (3)
Refined coal sales are reported net of the cost of coal.
REX American Resources’ Chief Executive Officer, Zafar Rizvi,
commented, “REX generated profitable results in the fiscal 2019
first quarter despite a very challenging environment which included
severe weather, including flooding, across the Midwest, rail and
transportation issues, the impact of tariffs and weak ethanol
margins. We remain focused on operating our plants efficiently and
effectively and pursuing opportunities to leverage our operations
and balance sheet to enhance shareholder value.”
Balance Sheet and Share Repurchase Program
At April 30, 2019, REX had cash and cash equivalents and
short-term investments of $204.7 million, $53.7 million of which
was at the parent company, and $151.0 million of which was at its
consolidated ethanol production facilities. This compares with cash
and cash equivalents and short-term investments at January 31,
2019, of $203.5 million, $54.8 million of which was at the parent
company, and $148.7 million of which was at its consolidated
ethanol production facilities.
During the first quarter of fiscal 2019, the Company did not
purchase any shares and is authorized to repurchase up to 349,861
shares of its common stock.
The following table summarizes select data related
to REX’s consolidated alternative energy interests:
Three Months Ended April 30,
2019
2018
Average selling price per gallon of ethanol $ 1.27 $ 1.33 Average
selling price per ton of dried distillers grains $ 142.02 $ 137.75
Average selling price per pound of non-food grade corn oil $ 0.25 $
0.25 Average selling price per ton of modified distillers grains $
65.75 $ 70.29 Average cost per bushel of grain $ 3.53 $ 3.50
Average cost of natural gas (per mmbtu) $ 3.66 $ 3.46
Supplemental data related to REX’s
alternative energy interests:
REX American Resources
CorporationEthanol Ownership Interests/Effective Annual
Gallons Shipped as of April 30, 2019
(gallons in millions)
Entity
Trailing Twelve
Months Gallons Shipped
Current
REX
Ownership Interest
REX’s Current Effective
Ownership of Trailing Twelve Month Gallons
Shipped
One Earth Energy, LLC
Gibson City, IL
143.2 75.1 % 107.5
NuGen Energy, LLC
Marion, SD
134.3 99.5 % 133.6
Big River Resources West Burlington,
LLCWest Burlington, IA
108.5 10.3 % 11.2
Big River Resources Galva, LLC
Galva, IL
127.6 10.3 % 13.1
Big River United Energy, LLC
Dyersville, IA
131.1 5.7 % 7.5
Big River Resources Boyceville,
LLC
Boyceville, WI
57.6 10.3 % 5.9
Total
702.3 n/a 278.8
First Quarter Conference Call
REX will host a conference call at 11:00 a.m. ET today. Senior
management will discuss the financial results and host a question
and answer session. The dial in number for the audio conference
call is 212/231-2907 (domestic and international callers).
Participants can also listen to a live webcast of the call on
the Company’s website, www.rexamerican.com/Corp/Page4.aspx.
A webcast replay will be available for 30 days following the live
event at www.rexamerican.com/Corp/Page4.aspx.
About REX American Resources Corporation
REX American Resources has interests in six ethanol production
facilities, which in aggregate shipped approximately 702 million
gallons of ethanol over the twelve month period ended April 30,
2019. REX’s effective ownership of the trailing twelve month
gallons shipped (for the twelve months ended April 30, 2019) by the
ethanol production facilities in which it has ownership interests
was approximately 279 million gallons. In addition, the Company
acquired a refined coal operation on August 10, 2017. 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 and regulatory changes, the price volatility and
availability of corn, distillers grains, ethanol, non-food grade
corn oil, gasoline and natural gas, ethanol and refined coal plants
operating efficiently and according to forecasts and projections,
changes in the international, national or regional economies,
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.
- statements of operations follow -
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations (in thousands,
except per share amounts) Unaudited Three
Months Ended April 30,
2019
2018
Net sales and revenue $ 104,575 $ 120,820 Cost of sales
100,929 109,969
Gross profit 3,646 10,851 Selling, general and administrative
expenses (4,732 ) (4,553 ) Equity in income of unconsolidated
ethanol affiliates 126 697 Interest and other income, net
1,127 654
Income from continuing operations before
income taxes andnon-controlling interests
167
7,649
Benefit for income taxes
3,548
2,703 Net income including non-controlling
interests 3,715 10,352 Net income attributable to non-controlling
interests
(894 )
(856 ) Net income attributable to REX
common shareholders
$ 2,821
$ 9,496 Weighted average
shares outstanding – basic and diluted
6,315
6,571
Basic and diluted net income per share
attributable to REXcommon shareholders
$
0.45
$
1.45
- balance sheets follow -
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (in thousands)
Unaudited
April 30,
January 31,
ASSETS:
2019
2019
CURRENT ASSETS: Cash and cash equivalents $ 204,704 $ 188,531
Short-term investments - 14,975 Restricted cash 82 281 Accounts
receivable 11,663 11,378 Inventory 20,150 18,477 Refundable income
taxes 7,695 7,695 Prepaid expenses and other
9,352 9,284 Total
current assets 253,646 250,621 Property and equipment-net 177,008
182,521 Operating lease right-of-use assets 19,866 - Other assets
9,771 6,176 Equity method investments
32,201
32,075 TOTAL ASSETS
$ 492,492 $
471,393 LIABILITIES AND EQUITY: CURRENT
LIABILITIES: Accounts payable – trade $ 6,825 $ 7,463 Current
operating lease liabilities 5,421 - Accrued expenses and other
current liabilities
8,078
9,546 Total current liabilities
20,324 17,009 LONG
TERM LIABILITIES: Deferred taxes 4,161 4,185 Long-term operating
lease liabilities 13,990 - Other long term liabilities
4,935 4,928 Total
long term liabilities
23,086
9,113 COMMITMENTS AND CONTINGENCIES EQUITY: REX
shareholders’ equity: Common stock, 45,000 shares authorized,
29,853 shares issued at par 299 299 Paid in capital 148,303 148,273
Retained earnings 582,379 579,558 Treasury stock, 23,580 shares
(335,186 )
(335,193 ) Total REX shareholders’ equity
395,795 392,937 Non-controlling interests
53,287 52,334 Total
equity
449,082
445,271 TOTAL LIABILITIES AND EQUITY
$ 492,492 $
471,393
- statements of cash flows follow -
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (in thousands)
Unaudited
Three Months Ended
April 30,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,715 $ 10,352
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: Depreciation 6,292 5,920 Amortization of
operating lease right-of-use assets 1,333 - Income from equity
method investments (126 ) (697 ) Interest income from investments
(25 ) (341 ) Deferred income tax (3,619 ) (2,271 ) Stock based
compensation expense 128 71 Gain on disposal of property and
equipment - (8 ) Changes in assets and liabilities: Accounts
receivable (285 ) (8,350 ) Inventory (1,673 ) (5,333 ) Other assets
(75 ) (1,894 ) Accounts payable-trade (760 ) 1,011 Accrued expenses
and other liabilities
(3,365 )
(1,980 ) Net cash provided by
(used in) operating activities
1,540
(3,520 ) CASH FLOWS FROM INVESTING
ACTIVITIES: Capital expenditures (632 ) (3,061 ) Purchases of
short-term investments - (111,154 ) Sales of short-term investments
15,000 - Restricted investments and deposits - 5 Other
7 6 Net cash
provided by (used in) investing activities
14,375 (114,204
) CASH FLOWS FROM FINANCING ACTIVITIES:
Treasury stock acquired - (8,586 ) Payments to non-controlling
interests holders (87 ) - Capital contributions from minority
investor
146 110
Net cash provided by (used in) financing activities
59 (8,476 )
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED
CASH 15,974 (126,200 ) CASH, CASH EQUIVALENTS AND RESTRICTED
CASH-Beginning of period
188,812
191,342 CASH, CASH EQUIVALENTS AND RESTRICTED
CASH-End of period
$ 204,786
$ 65,142 Non cash financing
activities – Accrued common stock repurchases
$
- $ 542 Non
cash financing activities – Stock awards accrued
$
91 $ - Non
cash investing activities – Accrued capital expenditures
$ 147 $
142
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190530005174/en/
Douglas BruggemanChief Financial Officer(937) 276-3931
Joseph Jaffoni, Norberto AjaJCIR(212) 835-8500rex@jcir.com
REX American Resources (NYSE:REX)
Historical Stock Chart
From Aug 2024 to Sep 2024
REX American Resources (NYSE:REX)
Historical Stock Chart
From Sep 2023 to Sep 2024