REX American Resources Reports Fiscal 2021 Fourth Quarter Net Income Per Share Attributable to REX Common Shareholders of $3.61

Rhea-AI Summary

REX American Resources reported significant financial results for Q4 '21, with net sales reaching $212 million, up from $126 million in Q4 '20. This growth was driven by higher prices for ethanol and by-products despite rising corn and natural gas prices. Q4 '21 gross profit soared to $38.8 million, compared to $8.3 million in the prior year. Net income attributable to shareholders increased to $21.4 million, resulting in earnings per share of $3.61. REX's cash and investments also rose to $255.7 million compared to $180.7 million a year prior.

Positive

• Q4 '21 net sales increased by 68% year-over-year to $212 million.
• Gross profit rose to $38.8 million, compared to $8.3 million in Q4 '20.
• Net income attributable to shareholders reached $21.4 million, a substantial increase from $3.5 million in the previous year.
• Earnings per share jumped to $3.61 from $0.59 year-over-year.
• Cash and short-term investments increased to $255.7 million from $180.7 million a year earlier.

Negative

• Increase in costs for corn and natural gas, which could impact future profitability.

DAYTON, Ohio--(BUSINESS WIRE)-- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 fourth quarter (“Q4 ‘21”) ended January 31, 2022. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:	212/231-2936
Webcast / Replay URL:	www.rexamerican.com The webcast will be available for replay for 30 days.

REX American Resources’ Q4 ‘21 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, 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 ‘21 net sales and revenue were $212.0 million, compared with $126.0 million in Q4 ‘20. The year-over-year net sales and revenue increase was primarily due to higher pricing of ethanol, dried distillers grains and modified distillers grains. This was partially offset by an increase in corn and natural gas prices. Primarily reflecting these factors, Q4 ‘21 gross profit for the Company’s continuing operations increased to $38.8 million, compared with $8.3 million in Q4 ‘20. As a result, the Company reported Q4 ‘21 income before income taxes and non-controlling interests of $36.6 million, compared with income before income taxes and non-controlling interests of $4.8 million in the comparable year ago period.

Net income attributable to REX shareholders in Q4 ‘21 was $21.4 million, compared to net income of $3.5 million in Q4 ‘20. Q4 ‘21 basic and diluted net income per share attributable to REX common shareholders was $3.61, compared to net income per share of $0.59 in Q4 ‘20. Per share results in Q4 ‘21 and Q4 ‘20 are based on 5,939,000 and 6,008,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased with our strong performance in the fourth quarter and through-out fiscal 2021, including earnings per share of $3.61 and $8.75, respectively. These results reflect the continued success of our strategy, operational efficiency, effectiveness of our plants and operational team. I’m proud of our team and grateful for their efforts.”

“Looking ahead, we remain confident in our strategy and believe that we can leverage our balance sheet to take advantage of opportunities ahead of us and create additional value for our shareholders.”

Balance Sheet

At January 31, 2022, REX had cash and cash equivalents and short-term investments of $255.7 million, $42.9 million of which was at the parent company, and $212.8 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2021, of $180.7 million, $48.2 million of which was at the parent company, and $132.5 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,
		2022			2021			2022			2021
Average selling price per gallon of ethanol	$	2.36		$	1.36		$	2.21		$	1.30
Average selling price per ton of dried distillers grains	$	192.20		$	161.42		$	197.86		$	144.73
Average selling price per pound of non-food grade corn oil	$	0.60		$	0.27		$	0.50		$	0.26
Average selling price per ton of modified distillers grains	$	89.99		$	81.76		$	85.19		$	64.80
Average cost per bushel of grain	$	5.83		$	4.04		$	5.99		$	3.73
Average cost of natural gas (per MmBtu)	$	5.85		$	3.25		$	4.27		$	3.00

Fourth Quarter Conference Call

REX will host a conference call at 11:00 a.m. ET today. Senior management will discuss the quarterly financial results and host a question and answer session. The dial in number for the audio conference call is 212/231-2936 (domestic and international callers).

Participants can also listen to a live webcast of the call on the Company’s website, 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 699 million gallons of ethanol over the twelve-month period ended January 31, 2022. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2022) 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.

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,
		2022			2021			2022			2021
Net sales and revenue		$	212,016		$	125,970		$	774,802		$	372,664
Cost of sales			173,239			117,696			677,242			353,131
Gross profit			38,777			8,274			97,560			19,533
Selling, general and administrative expenses			(6,032)			(4,232)			(28,476)			(17,639)
Equity in income of unconsolidated ethanol affiliates			3,861			332			6,624			500
Interest and other income, net			13			415			130			1,818
Income before income taxes and non-controlling interests			36,619			4,789			75,838			4,212
(Provision) benefit for income taxes			(10,702)			102			(19,031)			546
Net income from continuing operations including non-controlling interests			25,917			4,891			56,807			4,758
Net income attributable to non-controlling interests (continuing operations)			(4,650)			(1,547)			(9,235)			(2,878)
Net income attributable to REX common shareholders (continuing operations)			21,267			3,344			47,572			1,880
Net income from discontinued operations, net of tax			132			131			4,395			860
Net income attributable to noncontrolling interests (discontinued operations)			27			68			397			261
Net income attributable to REX common shareholders (discontinued operations)			159			199			4,792			1,121
Net income attributable to REX common shareholders		$	21,426		$	3,543		$	52,364		$	3,001
Weighted average shares outstanding – basic and diluted			5,939			6,008			5,982			6,167
Basic and diluted net income per share from continuing operations attributable to REX common shareholders		$	3.58		$	0.56		$	7.95		$	0.31
Basic and diluted net income per share from discontinued operations attributable to REX common shareholders			0.03			0.03			0.80			0.18
Basic and diluted net income per share attributable to REX common shareholders		$	3.61		$	0.59		$	8.75		$	0.49

- balance sheets follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Unaudited
		January 31,			January 31,
ASSETS		2022			2021
CURRENT ASSETS:
Cash and cash equivalents		$	229,846		$	144,501
Short-term investments			25,877			36,194
Restricted cash			2,222			1,657
Accounts receivable			25,821			19,713
Inventory			42,225			37,426
Refundable income taxes			6,677			6,020
Prepaid expenses and other			12,499			12,751
Current assets held for sale			-			488
Total current assets			345,167			258,750
Property and equipment-net			137,554			150,861
Operating lease right-of-use assets			11,221			12,678
Deferred taxes and other assets			25,853			25,275
Equity method investment			30,566			29,456
Assets held for sale			-			2,325
TOTAL ASSETS		$	550,361		$	479,345
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable – trade		$	32,266		$	16,573
Current operating lease liabilities			4,600			4,875
Accrued expenses and other current liabilities			13,617			8,754
Current liabilities held for sale			-			535
Total current liabilities			50,483			30,737
LONG TERM LIABILITIES:
Deferred taxes			3,132			3,713
Long-term operating lease liabilities			6,390			7,439
Other long-term liabilities			2,794			273
Total long-term liabilities			12,316			11,425
COMMITMENTS AND CONTINGENCIES
EQUITY:
REX shareholders’ equity:
Common stock, 45,000 shares authorized, 29,853 shares issued at par			299			299
Paid in capital			149,334			149,110
Retained earnings			642,350			589,986
Treasury stock, 23,933 shares and 23,861 shares, respectively			(361,191)			(354,612)
Total REX shareholders’ equity			430,792			384,783
Non-controlling interests			56,770			52,400
Total equity			487,562			437,183
TOTAL LIABILITIES AND EQUITY		$	550,361		$	479,345

- statements of cash flows follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Unaudited
		Twelve Months Ended
		January 31,
		2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	61,202		$	5,618
Net income from discontinued operations, net of tax			4,395			860
Net income from continuing operations			56,807			4,758
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			18,031			18,116
Amortization of operating lease right-of-use assets			5,560			5,358
Stock based compensation expense			1,753			264
Income from equity method investments			(6,624)			(500)
Dividends received from equity method investments			5,514			3,508
Interest income from investments			(43)			(216)
Deferred income tax			12,730			(1,110)
Loss (gain) on disposal of property and equipment			30			(58)
Changes in assets and liabilities:
Accounts receivable			(6,108)			(6,744)
Inventory			(4,799)			(2,307)
Refundable income taxes			(1,103)			(276)
Prepaid expenses and other assets			199			(3,243)
Accounts payable-trade			16,005			(2,618)
Other liabilities			475			(3,523)
Net cash provided by operating activities from continuing operations			98,427			11,409
Net cash used in operating activities from discontinued operations			(6,716)			(2,786)
Net cash provided by operating activities			91,711			8,623
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures			(5,126)			(10,412)
Purchases of short-term investments			(88,949)			(96,233)
Sales of short-term investments			99,309			86,328
Other			60			(474)
Net cash provided by (used in) investing activities			5,294			(20,791)
CASH FLOWS FROM FINANCING ACTIVITIES:
Treasury stock acquired			(6,627)			(19,629)
Payments to noncontrolling interests holders			(4,772)			(2,928)
Net cash used in financing activities from continuing operations			(11,399)			(22,557)
Net cash provided by financing activities from discontinued operations			304			112
Net cash used in financing activities			(11,095)			(22,445)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			85,910			(34,613)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period			146,158			180,771
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period		$	232,068		$	146,158
Non-cash financing activities – Stock awards issued		$	100		$	241
Non-cash financing activities – Stock awards accrued		$	1,580		$	99
Non-cash investing activities – Accrued capital expenditures		$	78		$	390
Right-of use assets acquired and liabilities incurred upon lease execution		$	4,103		$	1,863

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220323005290/en/

Douglas Bruggeman

Chief Financial Officer

(937) 276-3931

Joseph Jaffoni, Norberto Aja

JCIR

(212) 835-8500 / rex@jcir.com

Source: REX American Resources Corporation

FAQ

What were REX's Q4 '21 net sales figures?

REX reported net sales of $212 million for Q4 '21, compared to $126 million in Q4 '20.

How much was REX's net income in Q4 '21?

Net income attributable to REX shareholders for Q4 '21 was $21.4 million, up from $3.5 million in Q4 '20.

What is REX's earnings per share for Q4 '21?

Earnings per share for Q4 '21 was $3.61, compared to $0.59 in the same quarter of the previous year.

How has REX's cash position changed in the last year?

REX's cash and short-term investments increased to $255.7 million as of January 31, 2022, up from $180.7 million on January 31, 2021.