REX REX American Resources Corporation

Publishes Inaugural Sustainability Report

REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2023 first quarter (“Q1 ‘23”) ended April 30, 2023. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

212/231-2905

Webcast / Replay URL:

www.rexamerican.com

 

The webcast will be available for replay for 30 days.

REX American Resources’ Q1 ‘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 Q1 ‘23 net sales and revenue rose 9.5% to $212.7 million from $194.2 million in Q1 ‘22. The year-over-year net sales and revenue increase primarily reflects an increase in the quantities sold of ethanol, dried distillers grains and distillers corn oil as well as higher prices for dried and modified distillers grains. Q1 ‘23 gross profit increased 26.2% to $15.0 million, from $11.9 million in Q1 ’22, while SG&A increased to $10.6 million. This led to Q1 ‘23 income before income taxes and non-controlling interests of $8.7 million, compared with $8.8 million in the comparable year ago period.

Net income attributable to REX shareholders was $5.2 million in both Q1 ’23 and Q1 ’22. Q1 ‘23 basic and diluted net income per share attributable to REX common shareholders was $0.30, compared to $0.29 per share in Q1 ‘22. Per share results for Q1 ‘23 and Q1 ‘22 are based on 17,439,000 and 17,836,000 diluted weighted average shares outstanding, respectively, reflecting the Company’s 3-for-1 common stock split effected August 5, 2022.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “Our first quarter results mark our eleventh consecutive quarter of profitability as we have consistently offset challenges related to the industry and economy. The first quarter results reflect the positive trends across our operating margins as the quarter progressed as well as the continued disciplined and efficient operation of our plants.

“We recently published REX’s inaugural Sustainability Report which is available on our website and highlights our commitment to addressing the sustainable economy and our social responsibilities. We continue to strategically invest in initiatives that we expect will generate attractive rates of return, including enhanced production and energy efficiency at our plants, which are intended to reduce the carbon intensity of our plants. In addition, we continue to advance our One Earth carbon capture project and remain excited by the significant opportunities this initiative holds. Our NuGen Energy facility recently reached an agreement to be part of Summit Carbon Solutions’ carbon capture and storage pipeline, which we believe will further advance our sustainability goals.

“Our healthy financial foundation, company-wide focus on operational excellence and the effectiveness of our plant operations teams reinforce our confidence in our ability to extend our long track record of leading industry results. As we look to the balance of fiscal 2023 and beyond, we intend to continue our strategic investments in the efficiency and capacity of our plants and moving our carbon capture and sequestration initiatives forward.”

Balance Sheet

As of April 30, 2023, REX had cash and cash equivalents and short-term investments of $265.8 million, $34.2 million of which was at the parent company, and $231.6 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 ethanol production facilities.

The following table summarizes select data related to REX’s consolidated alternative energy interests:

Three Months Ended April 30,

2023

2022

Average selling price per gallon of ethanol

$

2.21

$

2.28

Average selling price per ton of dried distillers grains

$

244.85

$

218.90

Average selling price per pound of distillers corn oil

$

0.63

$

0.63

Average selling price per ton of modified distillers grains

$

127.58

$

118.09

  Ethanol gallons sold (in millions)

 

71.5

 

64.5

First 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 212/231-2905 (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 688 million gallons of ethanol over the twelve-month period ended April 30, 2023. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended April 30, 2023) by the ethanol production facilities in which it has ownership interests was approximately 266 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 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, 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.

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

  Three Months Ended April 30,

2023

2022

Net sales and revenue

$

212,714

$

194,228

Cost of sales

 

197,685

 

182,316

Gross profit

 

15,029

 

11,912

Selling, general and administrative expenses

 

(10,632)

 

(5,203)

Equity in income of unconsolidated ethanol affiliates

 

1,490

 

1,951

Interest and other income, net

 

2,801

 

174

Income before income taxes and noncontrolling interests

 

8,688

 

8,834

Provision for income taxes

 

(1,988)

 

(1,848)

Net income

 

6,700

 

6,986

Net income attributable to noncontrolling interests

 

(1,464)

 

(1,804)

Net income attributable to REX common shareholders

$

5,236

$

5,182

  Weighted average shares outstanding - basic and diluted

 

17,439

 

17,836

  Basic and diluted net income per share attributable to REX common shareholders

$

0.30

$

0.29

- balance sheets follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

 

 

 

April 30,

 

January 31,

ASSETS:

2023

 

2023

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

$

77,667

 

$

69,612

 

Short-term investments

 

188,143

 

 

211,331

 

Restricted cash

 

3,379

 

 

1,735

 

Accounts receivable

 

29,217

 

 

25,162

 

Inventory

 

41,299

 

 

48,744

 

Refundable income taxes

 

4,983

 

 

2,962

 

Prepaid expenses and other

 

16,268

 

 

13,098

 

 

Total current assets

 

360,956

 

 

372,644

Property and equipment, net

 

135,125

 

 

135,497

Operating lease right-of-use assets

 

13,907

 

 

15,214

Deferred taxes and other assets

 

22,018

 

 

23,179

Equity method investment

 

34,535

 

 

33,045

TOTAL ASSETS

$

566,541

 

$

579,579

LIABILITIES AND EQUITY:

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable - trade

$

17,874

 

$

34,091

 

Current operating lease liabilities

 

5,142

 

 

5,180

 

Accrued expenses and other current liabilities

 

13,173

 

 

15,328

 

 

Total current liabilities

 

36,189

 

 

54,599

LONG-TERM LIABILITIES:

 

 

 

 

Deferred taxes

 

1,097

 

 

1,097

 

Long-term operating lease liabilities

 

8,696

 

 

9,855

 

Other long-term liabilities

 

3,158

 

 

3,034

 

 

Total long-term liabilities

 

12,951

 

 

13,986

EQUITY:

 

 

 

REX shareholders' equity:

 

 

 

 

Common stock

 

299

 

 

299

 

Paid-in capital

 

940

 

 

578

 

Retained earnings

 

646,062

 

 

640,826

 

Treasury stock

 

(193,660)

 

 

(193,721)

 

 

Total REX shareholders' equity

 

453,641

 

 

447,982

Noncontrolling interests

 

63,760

 

 

63,012

 

 

Total equity

 

517,401

 

 

510,994

TOTAL LIABILITIES AND EQUITY

$

566,541

 

$

579,579

- statements of cash flows follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

Three Months Ended April 30,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES: Net income including noncontrolling interests

$

6,700

$

6,986

Adjustments to reconcile net income to net cash used in operating activities: Depreciation

 

4,420

 

4,459

Amortization of operating lease right-of-use assets

 

1,334

 

1,430

Income from equity method investments

 

(1,490)

 

(1,951)

Interest income from investments

 

(2,052)

 

(148)

Deferred income taxes

 

1,342

 

1,161

Stock based compensation expense

 

612

 

218

(Gain) loss on sale of property and equipment - net

 

(10)

 

5

Changes in assets and liabilities: Accounts receivable

 

(4,055)

 

381

Inventories

 

7,445

 

(14,163)

Refundable income taxes

 

(2,021)

 

581

Other assets

 

(3,342)

 

(3,529)

Accounts payable - trade

 

(16,066)

 

(13,233)

Other liabilities

 

(3,444)

 

124

Net cash used in operating activities

 

(10,627)

 

(17,679)

CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures

 

(4,199)

 

(1,462)

Purchase of short-term investments

 

(102,348)

 

(161,599)

Sale of short-term investments

 

127,588

 

20,278

Deposits

 

(9)

 

-

Proceeds from sale of real estate and property and equipment

 

10

 

-

Net cash provided by (used in) investing activities

 

21,042

 

(142,783)

CASH FLOWS FROM FINANCING ACTIVITIES: Payments to noncontrolling interests holders

 

(716)

 

(1)

Net cash used in financing activities

 

(716)

 

(1)

  NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

9,699

 

(160,463)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period

 

71,347

 

232,068

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period

$

81,046

$

71,605

  Non-cash financing activities - Stock awards accrued

$

189

$

174

Non-cash investing activities - Accrued capital expenditures

$

274

$

205

Right-of-use assets acquired and liabilities incurred upon lease execution

$

97

$

3,460

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230525005186/en/

Douglas Bruggeman Chief Financial Officer (937) 276‑3931

Joseph Jaffoni, Norberto Aja JCIR (212) 835-8500 / rex@jcir.com