REX American Resources Reports Fiscal 2023 First Quarter Net Income Per Share Attributable to REX Common Shareholders Of $0.30
Publishes Inaugural Sustainability Report
Conference Call: |
212/231-2905 |
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Webcast / Replay URL: |
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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
Net income attributable to REX shareholders was
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
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
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES |
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Consolidated Statements of Operations |
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(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 |
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(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
Source: REX American Resources Corporation
