REX American Resources Corporation (NYSE: REX) (“REX” or “the
Company”) today reported financial results for its fiscal 2022
fourth quarter (“Q4 ‘22”) ended January 31, 2023. REX management
will host a conference call and webcast today at 11:00 a.m. ET.
Conference Call:
212/231-2904
Webcast / Replay URL:
www.rexamerican.com
The webcast will be available for replay
for 30 days.
REX American Resources’ Q4 ‘22 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. The Company reports results for its ethanol and
by-products component as continuing operations and beginning in the
third quarter of fiscal 2021 its refined coal component as
discontinued operations as operations have now ceased.
REX’s Q4 ‘22 net sales and revenue were $200.2 million, compared
with $212.0 million in Q4 ‘21. The year-over-year net sales and
revenue decrease primarily reflects a decrease in the quantities
sold of ethanol, dried distillers grains and modified distillers
grains. Q4 ‘22 gross profit for the Company’s continuing operations
was $14.9 million, compared with $38.8 million in Q4 ‘21 reflecting
increases in corn and natural gas prices. This led to Q4 ‘22 income
before income taxes and non-controlling interests of $13.3 million,
compared with $36.6 million in the comparable year ago period.
Net income attributable to REX shareholders from continuing
operations in Q4 ‘22 was $8.2 million, compared to $21.3 million in
Q4 ‘21. Q4 ‘22 basic and diluted net income per share attributable
to REX common shareholders from continuing operations was $0.47,
compared to $1.19 per share in Q4 ‘21. Per share results for Q4 ‘22
and Q4 ‘21 are based on 17,416,000 and 17,818,000 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, “In the fourth quarter, we saw a continuation of the
difficult operating environment we faced throughout much of fiscal
2022, including year-over-year price increases in corn and natural
gas of 22% and 12%, respectively, as well as weather-related
disruptions. Given these challenges, we are pleased with our
performance in the fourth quarter and full year, with earnings per
share of $0.47 and $1.57, respectively. Our results demonstrate the
resiliency of our operating model, our operational efficiency, and
the effectiveness of our plant operations teams.
“We exited fiscal 2022 with a robust liquidity position, with
approximately $281 million in cash and short-term investments and
no debt. Thanks to our healthy financial foundation, we are well
positioned to continue to strategically invest in the efficiency
and capacity of our plants while pursuing and progressing against
our carbon capture and sequestration initiatives.
“Looking ahead, we are excited by the many opportunities in
front of us and remain confident in the value proposition that
ethanol brings to consumers and the environment. We are also
encouraged by the potentially compelling financial benefits of our
carbon capture and sequestration initiatives on the back of the
recently enacted Inflation Reduction Act and believe our efforts
will yield significant financial benefits for our employees,
partners and shareholders.”
Balance Sheet
As of January 31, 2023, REX had cash and cash equivalents and
short-term investments 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. This compares with cash, cash
equivalents and short-term investments at January 31, 2022, of
$255.7 million, $42.9 million of which was at the parent company,
and $212.8 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 Twelve Months Ended January
31, January 31,
2023
2022
2023
2022
Average selling price per gallon of ethanol
$
2.31
$
2.36
$
2.44
$
2.21
Average selling price per ton of dried distillers grains
$
234.39
$
192.20
$
232.98
$
197.86
Average selling price per pound of non-food grade corn oil
$
0.75
$
0.60
$
0.71
$
0.50
Average selling price per ton of modified distillers grains
$
139.84
$
89.99
$
123.66
$
85.19
Average cost per bushel of grain
$
7.10
$
5.83
$
7.24
$
5.99
Average cost of natural gas (per MmBtu)
$
6.57
$
5.85
$
6.66
$
4.27
Fourth 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
212/231-2904 (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 691 million
gallons of ethanol over the twelve-month period ended January 31,
2023. REX’s effective ownership of the trailing twelve-month
gallons shipped (for the twelve months ended January 31, 2023) by
the ethanol production facilities in which it has ownership
interests was approximately 271 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, non-food
grade 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 Twelve Months Ended January
31, January 31,
2023
2022
2023
2022
Net sales and revenue
$
200,167
$
212,016
$
855,000
$
774,802
Cost of sales
185,268
173,239
800,269
677,242
Gross profit
14,899
38,777
54,731
97,560
Selling, general and administrative expenses
(6,719
)
(6,032
)
(28,956
)
(28,476
)
Equity in income of unconsolidated ethanol affiliates
2,535
3,861
8,745
6,624
Interest and other income, net
2,621
13
12,959
130
Income before income taxes and noncontrolling interests
13,336
36,619
47,479
75,838
Provision for income taxes
(2,168
)
(10,702
)
(9,542
)
(19,031
)
Net income from continuing operations
11,168
25,917
37,937
56,807
Net income attributable to noncontrolling interests (continuing
operations)
(3,007
)
(4,650
)
(10,240
)
(9,235
)
Net income attributable to REX common shareholders (continuing
operations)
8,161
21,267
27,697
47,572
Net income from discontinued operations, net of tax
-
132
-
4,395
Net loss attributable to noncontrolling interests (discontinued
operations)
-
27
-
397
Net income attributable to REX common shareholders (discontinued
operations)
-
159
-
4,792
Net income attributable to REX common shareholders
$
8,161
$
21,426
$
27,697
$
52,364
Weighted average shares outstanding - basic and diluted
17,416
17,818
17,638
17,946
Basic and diluted net income per share from continuing
operations attributable to REX common shareholders
$
0.47
$
1.19
$
1.57
$
2.65
Basic and diluted net income per share from discontinued operations
attributable to REX common shareholders
-
0.01
-
0.27
Basic and diluted net income per share attributable to REX common
shareholders
$
0.47
$
1.20
$
1.57
$
2.92
REX AMERICAN RESOURCES
CORPORATION AND SUBSIDIARIES
Consolidated Balance
Sheets
(in thousands)
Unaudited
January 31, January 31, ASSETS:
2023
2022
CURRENT ASSETS: Cash and cash equivalents
$
69,612
$
229,846
Short-term investments
211,331
25,877
Restricted cash
1,735
2,222
Accounts receivable
25,162
25,821
Inventory
48,744
42,225
Refundable income taxes
2,962
6,677
Prepaid expenses and other
13,098
12,499
Total current assets
372,644
345,167
Property and equipment, net
135,497
137,554
Operating lease right-of-use assets
15,214
11,221
Deferred taxes and other assets
23,179
25,853
Equity method investment
33,045
30,566
TOTAL ASSETS
$
579,579
$
550,361
LIABILITIES AND EQUITY: CURRENT LIABILITIES: Accounts payable -
trade
$
34,091
$
32,266
Current operating lease liabilities
5,180
4,600
Accrued expenses and other current liabilities
15,328
13,617
Total current liabilities
54,599
50,483
LONG-TERM LIABILITIES: Deferred taxes
1,097
3,132
Long-term operating lease liabilities
9,855
6,390
Other long-term liabilities
3,034
2,794
Total long-term liabilities
13,986
12,316
EQUITY: REX shareholders' equity: Common stock
299
299
Paid-in capital
578
-
Retained earnings
640,826
611,607
Treasury stock
(193,721
)
(181,114
)
Total REX shareholders' equity
447,982
430,792
Noncontrolling interests
63,012
56,770
Total equity
510,994
487,562
TOTAL LIABILITIES AND EQUITY
$
579,579
$
550,361
REX AMERICAN RESOURCES
CORPORATION AND SUBSIDIARIES
Consolidated Statements of
Cash Flows
(in thousands)
Unaudited
Twelve Months Ended January 31,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES Net income including
noncontrolling interests
$
37,937
$
61,202
Net income from discontinued operations, net of tax
-
4,395
Net income from continuing operations
37,937
56,807
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
17,976
18,031
Amortization of operating lease right-of-use assets
5,328
5,560
Income from equity method investments
(8,745
)
(6,624
)
Dividends received from equity method investments
6,266
5,514
Interest income from investments
(2,839
)
(43
)
Deferred income taxes
915
12,730
Stock based compensation expense
1,930
1,753
(Gain) loss on sale of property and equipment - net
(102
)
30
Changes in assets and liabilities: Accounts receivable
659
(6,108
)
Inventories
(6,519
)
(4,799
)
Income taxes refundable
3,715
(1,103
)
Other assets
(452
)
199
Accounts payable - trade
1,478
16,005
Other liabilities
(2,752
)
475
Net cash provided by operating activities from continuing
operations
54,795
98,427
Net cash used in operating activities from discontinued operations
-
(6,716
)
Net cash provided by operating activities
54,795
91,711
CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures
(15,578
)
(5,126
)
Purchase of short-term investments
(399,350
)
(88,949
)
Sale of short-term investments
216,735
99,309
Deposits
(319
)
-
Other
5
60
Net cash (used in) provided by investing activities
(198,507
)
5,294
CASH FLOWS FROM FINANCING ACTIVITIES: Treasury stock acquired
(13,012
)
(6,627
)
Payments to noncontrolling interests holders
(3,997
)
(4,772
)
Net cash used in financing activities from continuing operations
(17,009
)
(11,399
)
Net cash provided by financing activities from discontinued
operations
-
304
Net cash used in financing activities
(17,009
)
(11,095
)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED
CASH
(160,721
)
85,910
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of year
232,068
146,158
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of year
$
71,347
$
232,068
Non-cash financing activities - Stock awards accrued
$
965
$
1,580
Non-cash financing activities - Stock awards issued
$
1,539
$
100
Non-cash investing activities - Accrued capital expenditures
$
425
$
78
Right-of-use assets acquired and liabilities incurred upon lease
execution
$
9,321
$
4,103
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230323005236/en/
Douglas Bruggeman Chief Financial Officer (937) 276‑3931
Joseph Jaffoni, Norberto Aja JCIR 835-8500 / rex@jcir.com
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