REX American Resources Reports Fiscal 2022 First Quarter Net Income Per Share Attributable to Rex Common Shareholders Of $0.87

Rhea-AI Summary

REX American Resources Corporation (NYSE: REX) reported a Q1 2022 net revenue of $194.2 million, up from $164.0 million in Q1 2021. Despite the revenue increase, gross profit fell to $11.9 million compared to $19.5 million in the prior year, primarily due to rising input costs. The net income attributable to shareholders was $5.2 million, decreasing from $7.8 million in Q1 2021. Earnings per share (EPS) dropped to $0.87 from $1.30. REX holds $234 million in cash and investments, down from $255.7 million in January 2022.

Positive

• Revenue increased by 18.4% year-over-year to $194.2 million.
• Earnings of $0.87 per share reflect efficient operations despite challenges.

Negative

• Gross profit declined to $11.9 million from $19.5 million year-over-year.
• Net income decreased to $5.2 million compared to $7.8 million in Q1 2021.
• EPS dropped from $1.30 to $0.87.

DAYTON, Ohio--(BUSINESS WIRE)-- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2022 first quarter (“Q1 ‘22”) ended April 30, 2022. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:	415/226-5357
Webcast / Replay URL:	www.rexamerican.com
	The webcast will be available for replay for 30 days.

REX American Resources’ Q1 ‘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 as continuing operations and beginning in the third quarter of fiscal 2021 its refined coal as discontinued operations as operations ceased on November 18, 2021.

REX’s Q1 ‘22 net sales and revenue were $194.2 million, compared with $164.0 million in Q1 ‘21. The year-over-year net sales and revenue increase primarily reflects higher pricing of ethanol, dried distillers grains, non-food grade corn oil and modified distillers grains, while cost of sales increased due to pricing pressures across corn and natural gas prices. This led to Q1 ‘22 gross profit decline for the Company’s continuing operations to $11.9 million, compared with $19.5 million in Q1 ‘21. As a result, the Company reported Q1 ‘22 income before income taxes and non-controlling interests of $8.8 million, compared with income before income taxes and non-controlling interests of $10.2 million in the comparable year ago period.

Net income attributable to REX shareholders in Q1 ‘22 was $5.2 million, compared to net income of $7.8 million in Q1 ‘21. Q1 ‘22 basic and diluted net income per share attributable to REX common shareholders was $0.87, compared to net income per share of $1.30 in Q1 ‘21. Per share results in Q1 ‘22 and Q1 ‘21 are based on 5,945,000 and 6,010,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased with our start to fiscal 2022 as we managed through significant headwinds, including inflationary impacts on our major input costs, and logistical challenges. Despite this, we generated earnings of $0.87 per share, reflecting the success of our operating strategies, our plants' efficiency, and the expertise of our team.

"Looking ahead, we remain focused on strategically leveraging our financial resources to create added shareholder value. In particular, we continue to make progress on our carbon capture project, and evaluate other opportunities.”

Balance Sheet

At April 30, 2022, REX had cash, cash equivalents and short-term investments of $234.0 million, $39.0 million of which was at the parent company, and $195.0 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
		April 30,
		2022			2021
Average selling price per gallon of ethanol		$	2.28		$	1.79
Average selling price per ton of dried distillers grains		$	218.90		$	208.92
Average selling price per pound of non-food grade corn oil		$	0.63		$	0.33
Average selling price per ton of modified distillers grains		$	118.09		$	71.54
Average cost per bushel of grain		$	6.55		$	5.16
Average cost of natural gas (per MmBtu)		$	5.93		$	3.18

First 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 415/226-5357 (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 700 million gallons of ethanol over the twelve-month period ended April 30, 2022. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended April 30, 2022) by the ethanol production facilities in which it has ownership interests was approximately 277 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
		April 30,
		2022				2021
Net sales and revenue		$	194,228			$	164,042
Cost of sales			182,316				144,565
Gross profit			11,912				19,477
Selling, general and administrative expenses			(5,203	)			(9,903	)
Equity in income of unconsolidated ethanol affiliates			1,951				570
Interest and other income, net			174				43
Income before income taxes and noncontrolling interests			8,834				10,187
Provision for income taxes			(1,848	)			(2,224	)
Net income from continuing operations			6,986				7,963
Net income attributable to noncontrolling interests (continuing operations)			(1,804	)			(694	)
Net income attributable to REX common shareholders (continuing operations)			5,182				7,269
Net income from discontinued operations, net of tax			-				435
Net loss attributable to noncontrolling interests (discontinued operations)			-				80
Net income attributable to REX common shareholders (discontinued operations)			-				515
Net income attributable to REX common shareholders		$	5,182			$	7,784
Weighted average shares outstanding - basic and diluted			5,945				6,010
Basic and diluted net income per share from continuing operations attributable to REX common shareholders		$	0.87			$	1.21
Basic and diluted net income per share from discontinued operations attributable to REX common shareholders			-				0.09
Basic and diluted net income per share attributable to REX common shareholders		$	0.87			$	1.30

- balance sheets follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Unaudited
		April 30,				January 31,
ASSETS:		2022				2022
CURRENT ASSETS:
Cash and cash equivalents		$	66,685			$	229,846
Short-term investments			167,347				25,877
Restricted cash			4,920				2,222
Accounts receivable			25,440				25,821
Inventory			56,388				42,225
Refundable income taxes			6,096				6,677
Prepaid expenses and other			16,006				12,499
Total current assets			342,882				345,167
Property and equipment, net			134,575				137,554
Operating lease right-of-use assets			13,250				11,221
Deferred taxes and other assets			24,817				25,853
Equity method investment			32,517				30,566
TOTAL ASSETS		$	548,041			$	550,361
LIABILITIES AND EQUITY:
CURRENT LIABILITIES:
Accounts payable - trade		$	19,160			$	32,266
Current operating lease liabilities			4,515				4,600
Accrued expenses and other current liabilities			15,184				13,617
Total current liabilities			38,859				50,483
LONG-TERM LIABILITIES:
Deferred taxes			3,132				3,132
Long-term operating lease liabilities			8,539				6,390
Other long-term liabilities			2,920				2,794
Total long-term liabilities			14,591				12,316
EQUITY:
REX shareholders' equity:
Common stock			299				299
Paid-in capital			149,370				149,334
Retained earnings			647,532				642,350
Treasury stock			(361,183	)			(361,191	)
Total REX shareholders' equity			436,018				430,792
Noncontrolling interests			58,573				56,770
Total equity			494,591				487,562
TOTAL LIABILITIES AND EQUITY		$	548,041			$	550,361

- statements of cash flows follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Unaudited
		Three Months Ended
		April 30,
		2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests		$	6,986			$	8,398
Net income from discontinued operations, net of tax			-				435
Net income from continuing operations			6,986				7,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			4,459				4,551
Amortization of operating lease right-of-use assets			1,430				1,389
Income from equity method investments			(1,951	)			(570	)
Interest income from investments			(148	)			(15	)
Deferred income taxes			1,161				2,303
Stock based compensation expense			218				291
Loss (gain) on sale of property and equipment - net			5				(3	)
Changes in assets and liabilities
Accounts receivable			381				(7,844	)
Inventories			(14,163	)			11,206
Refundable income taxes			581				(88	)
Other assets			(3,529	)			(2,169	)
Accounts payable - trade			(13,233	)			(654	)
Other liabilities			124				(1,264	)
Net cash (used in) provided by operating activities from continuing operations			(17,679	)			15,096
Net cash used in operating activities from discontinued operations			-				(1,533	)
Net cash (used in) provided by operating activities			(17,679	)			13,563
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures			(1,462	)			(1,267	)
Purchase of short-term investments			(161,599	)			(25,930	)
Sale of short-term investments			20,278				26,275
Other			-				30
Net cash used in investing activities			(142,783	)			(892	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments to noncontrolling interests holders			(1	)			(75	)
Net cash used in financing activities from continuing operations			(1	)			(75	)
Net cash provided by financing activities from discontinued operations			-				68
Net cash used in financing activities			(1	)			(7	)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			(160,463	)			12,664
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period			232,068				146,158
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period		$	71,605			$	158,822
Non-cash financing activities - Stock awards accrued		$	174			$	348
Non-cash investing activities - Accrued capital expenditures		$	205			$	280
Right-of-use assets acquired and liabilities incurred upon lease execution		$	3,460			$	-

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220524005996/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 Q1 2022 revenues?

REX reported net revenues of $194.2 million in Q1 2022.

How did REX's net income in Q1 2022 compare to Q1 2021?

Net income in Q1 2022 was $5.2 million, down from $7.8 million in Q1 2021.

What was REX's earnings per share for Q1 2022?

Earnings per share for Q1 2022 were $0.87, a decrease from $1.30 in Q1 2021.

What is the reason for the decline in REX's gross profit in Q1 2022?

The decline in gross profit is attributed to increased input costs amid rising prices for corn and natural gas.

What financial position did REX hold at the end of Q1 2022?

At the end of Q1 2022, REX had cash and short-term investments of $234 million.