REX American Resources Reports Fiscal 2024 Second Quarter Net Income Per Share Attributable to REX Common Shareholders of $0.70 vs. $0.52 Per Share in Fiscal Second Quarter 2023
REX American Resources (NYSE: REX) reported strong fiscal Q2 2024 results, with net income attributable to REX shareholders increasing by 37% to $12.4 million. The company achieved $0.70 earnings per share, up from $0.52 in Q2 2023. Despite a 6% decrease in ethanol sales volumes, REX saw a 7% increase in gross profit to $19.8 million. The company maintains a robust balance sheet with $346 million in cash and no bank debt. REX is progressing with its One Earth Energy carbon capture project and ethanol production expansion, with total capital expenditures of $90.8 million to date, remaining on track for a $165-$175 million budget.
REX American Resources (NYSE: REX) ha riportato forti risultati per il secondo trimestre fiscale 2024, con il reddito netto attribuibile agli azionisti REX che è aumentato del 37% a 12,4 milioni di dollari. L'azienda ha raggiunto 0,70 dollari di utili per azione, in crescita rispetto a 0,52 dollari nel secondo trimestre 2023. Nonostante una diminuzione del 6% nei volumi di vendita di etanolo, REX ha registrato un aumento del 7% nel profitto lordo a 19,8 milioni di dollari. L'azienda mantiene un solido bilancio con 346 milioni di dollari in contante e nessun debito bancario. REX sta proseguendo con il progetto di cattura del carbonio One Earth Energy e l'espansione della produzione di etanolo, con spese in conto capitale totali di 90,8 milioni di dollari fino ad oggi, rimanendo in linea con un budget di 165-175 milioni di dollari.
REX American Resources (NYSE: REX) informó sobre sólidos resultados para el segundo trimestre fiscal de 2024, con ingresos netos atribuibles a los accionistas de REX que aumentaron un 37% a 12,4 millones de dólares. La compañía alcanzó 0,70 dólares en ganancias por acción, en comparación con 0,52 dólares en el segundo trimestre de 2023. A pesar de una disminución del 6% en los volúmenes de ventas de etanol, REX experimentó un aumento del 7% en el beneficio bruto a 19,8 millones de dólares. La empresa mantiene un sólido balance con 346 millones de dólares en efectivo y sin deuda bancaria. REX está avanzando con su proyecto de captura de carbono One Earth Energy y la expansión de la producción de etanol, con gastos de capital totales de 90,8 millones de dólares hasta la fecha, manteniéndose en camino hacia un presupuesto de 165-175 millones de dólares.
REX American Resources (NYSE: REX)는 2024 회계 연도 2분기에 대한 강력한 실적을 보고하며, REX 주주에게 귀속되는 순이익이 37% 증가한 1,240만 달러에 달했습니다. 이 회사는 주당 0.70달러의 이익을 기록했으며, 이는 2023년 2분기 0.52달러에서 증가한 수치입니다. 에탄올 판매량이 6% 감소했음에도 불구하고 REX는 총 매출이 7% 증가한 1,980만 달러를 기록했습니다. 회사는 3억 4,600만 달러의 현금과 무은행 부채로 견고한 대차대조표를 유지하고 있습니다. REX는 One Earth Energy 탄소 포집 프로젝트와 에탄올 생산 확대를 진행 중이며, 현재까지 총 9,080만 달러의 자본 지출을 기록하고 있으며, 1억 6천5백만 달러에서 1억 7천5백만 달러의 예산을 유지하고 있습니다.
REX American Resources (NYSE: REX) a annoncé des résultats solides pour le deuxième trimestre fiscal 2024, avec un revenu net attribuable aux actionnaires de REX augmentant de 37% à 12,4 millions de dollars. L'entreprise a atteint 0,70 dollar de bénéfice par action, en hausse par rapport à 0,52 dollar au deuxième trimestre 2023. Malgré une diminution de 6% des volumes de vente d'éthanol, REX a enregistré une augmentation de 7% de son bénéfice brut à 19,8 millions de dollars. L'entreprise maintient un bilan solide avec 346 millions de dollars en espèces et aucune dette bancaire. REX progresse avec son projet de capture de carbone One Earth Energy et l'expansion de sa production d'éthanol, avec des dépenses d'investissement totales s'élevant à 90,8 millions de dollars jusqu'à présent, restant sur la bonne voie pour un budget de 165 à 175 millions de dollars.
REX American Resources (NYSE: REX) berichtete über starke Ergebnisse für das zweite Geschäftsquartal 2024, wobei der den REX-Aktionären zurechenbare Nettogewinn um 37% auf 12,4 Millionen Dollar gestiegen ist. Das Unternehmen erzielte 0,70 Dollar Gewinn pro Aktie, ein Anstieg von 0,52 Dollar im 2. Quartal 2023. Trotz eines Rückgangs der Ethanolverkaufsvolumina um 6% verzeichnete REX einen 7%igen Anstieg des Bruttogewinns auf 19,8 Millionen Dollar. Das Unternehmen hat eine solide Bilanz mit 346 Millionen Dollar in Bar und ohne Bankverschuldung. REX ist mit seinem Projekt zur Kohlenstoffabscheidung von One Earth Energy und der Erweiterung der Ethanolproduktion in der Spur, mit insgesamt 90,8 Millionen Dollar an Investitionen bis heute und bleibt im Rahmen eines Budgets von 165 bis 175 Millionen Dollar.
- Net income attributable to REX shareholders increased by 37% to $12.4 million
- Earnings per share rose to $0.70 from $0.52 year-over-year
- Gross profit increased by 7% to $19.8 million
- Strong balance sheet with $346 million in cash and no bank debt
- On track with One Earth Energy expansion project, increasing production capacity from 150 million to 175 million gallons per year
- Consolidated ethanol sales volumes decreased by 6% compared to the same period in Fiscal 2023
- Net sales and revenue decreased from $212.0 million to $148.2 million year-over-year
- Delays in EPA approval for the carbon capture project, with final permit decision expected in Q2 2025
- Illinois moratorium on CO2 pipeline construction until July 1, 2026, potentially affecting project timeline
Insights
REX American Resources' Q2 FY2024 results show solid performance despite challenging market conditions. The company reported
The company's ability to maintain profitability despite a
With
REX's performance is impressive given the current challenges in the ethanol market. The company's ability to increase profitability despite lower ethanol prices and reduced sales volumes suggests superior operational efficiency and strategic market positioning. This could give REX a competitive edge in the volatile ethanol industry.
The ongoing carbon capture and sequestration project, along with the ethanol production expansion, positions REX for potential future growth and sustainability. The carbon capture project, in particular, could provide significant long-term benefits, both environmentally and economically, if regulatory hurdles are overcome.
However, investors should note the regulatory uncertainties, particularly the Illinois moratorium on CO2 pipelines and the pending EPA permit. These factors could impact project timelines and potentially affect REX's future performance. The company's cautious approach to construction pacing demonstrates prudent risk management but may delay realization of project benefits.
Extends streak of consecutive positive earnings to 16 straight fiscal quarters
-
Reported net income attributable to REX shareholders of
$12.4 million 37% compared to the same period in Fiscal 2023 -
Generated
$0.70 $0.18 -
Reported gross profit of
$19.8 million 7% over the same period in Fiscal 2023 -
Reported consolidated ethanol sales volumes of 65.1 million gallons for Fiscal Q2 ‘24, a decrease of approximately
6% compared to the same period in Fiscal 2023
REX American Resources’ fiscal second quarter 2024 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.
Fiscal Second Quarter 2024 Results
For fiscal second quarter 2024, REX reported net sales and revenue of
Net income attributable to REX shareholders in fiscal second quarter 2024 was
Update on One Earth Energy Carbon Capture Project and Ethanol Production Expansion
REX continues to progress construction of the carbon capture and compression facility portion of its One Earth Energy carbon capture and sequestration project.
The Environmental Protection Agency (EPA) Class VI injection well technical review process is ongoing. Approval of REX’s Class VI injection well application is necessary to begin construction on the sequestration portion of the project and to begin operations. The EPA currently projects issuance of a draft permit for the project by the end of 2024, with a final permit decision in second quarter 2025.
On July 18, 2024,
At this time, the necessary utility interconnection work required for testing and commissioning of the carbon capture and compression facility is progressing well. The
In light of the currently in flux timetable for permitting of the complete facility, and the utility interconnection schedule, REX management took the financially prudent decision not to accelerate the current pace of construction, which resulted in the facility’s construction phase extending past the previously anticipated completion timeframe of the end of July. This approach will allow for completion of the carbon capture and compression facility on an appropriate timeline, while controlling expenditures.
REX is on track to complete the expansion of its One Earth Energy ethanol production facility by the end of first quarter 2025. When complete, production capacity will increase from 150 million to 175 million gallons per year. Once this is achieved, REX plans to move forward with the further permitting of the facility to produce 200 million gallons per year of ethanol, which the Company expects will require no further capital expenditure.
Through the end of fiscal second quarter 2024, capital expenditures related to the One Earth Energy carbon capture and sequestration project totaled
Balance Sheet
At the end of fiscal second quarter 2024 on July 31, 2024, REX had
Management Commentary
“REX American’s ethanol production operations continue to produce industry-leading results across varying market environments,” said Zafar Rizvi, REX Chief Executive Officer. “This quarter the REX team was again able to deliver standout gross margin and earnings per share. By keeping a focus on managing our expenses and seizing on opportunities available to us in the corn market REX continues to consistently deliver positive returns for our shareholders.
“The One Earth Energy carbon capture and sequestration facility is moving forward. We continue to monitor developments in
Conference Call Information
REX will host a conference call at 11:00 a.m. ET today to discuss the Company’s quarterly results and will also host a question and answer session. To access the conference call, interested parties may dial (877) 269-7751 (US) or (201) 389-0908 (international). Participants can also view an updated presentation, as well as listen to a live webcast of the call by going to the Investors section on the REX website at www.rexamerican.com. A replay will be available shortly after the live conference call and can be accessed by dialing (844) 512-2921 (US) or (412) 317-6671 (international). The passcode for the replay is 13748164. The replay will be available for 30 days after the call.
About REX American Resources Corporation
REX American Resources Corporation has interests in six ethanol production facilities, which in aggregate have production capacity totaling approximately 730 million gallons per year. REX’s effective ownership of annual volumes is approximately 300 million gallons. Further information about REX is available at www.rexamerican.com.
Forward-Looking Statements
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, success in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, 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 |
|||||||||||
Consolidated Statements of Operations |
|||||||||||
(in thousands, except per share amounts) |
|||||||||||
Unaudited |
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
July 31, |
|
July 31, |
||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||
Net sales and revenue |
$ |
148,155 |
$ |
211,977 |
|
$ |
309,386 |
$ |
424,691 |
||
Cost of sales |
|
128,382 |
|
193,625 |
|
275,162 |
|
396,173 |
|||
Gross profit |
|
19,773 |
|
18,352 |
|
|
34,224 |
|
28,518 |
||
Selling, general and administrative expenses |
|
(6,440) |
|
(8,618) |
|
|
(12,551) |
|
(14,387) |
||
Equity in income of unconsolidated affiliates |
|
1,747 |
|
3,047 |
|
|
3,465 |
|
4,537 |
||
Interest and other income, net |
|
4,416 |
|
3,271 |
|
10,321 |
|
6,072 |
|||
Income before income taxes and noncontrolling interests |
|
19,496 |
|
16,052 |
|
|
35,459 |
|
24,740 |
||
Provision for income taxes |
|
(4,489) |
|
(3,768) |
|
(8,179) |
|
(5,756) |
|||
Net Income |
|
15,007 |
|
12,284 |
|
|
27,280 |
|
18,984 |
||
Net Income attributable to noncontrolling interests |
|
(2,629) |
|
(3,229) |
|
(4,711) |
|
(4,693) |
|||
Net income attributable to REX common shareholders |
$ |
12,378 |
$ |
9,055 |
|
22,569 |
$ |
14,291 |
|||
|
|
|
|
|
|
||||||
Weighted average shares outstanding – basic |
|
17,548 |
|
17,460 |
|
17,528 |
|
17,427 |
|||
|
|
|
|
|
|
||||||
Basic net income per share attributable to REX common shareholders |
$ |
0.71 |
$ |
0.52 |
$ |
1.29 |
$ |
0.82 |
|||
|
|||||||||||
Weighted average shares outstanding – diluted |
|
17,671 |
|
17,460 |
|
17,648 |
|
17,427 |
|||
|
|||||||||||
Diluted net income per share attributable to REX common shareholders |
$ |
0.70 |
$ |
0.52 |
$ |
1.28 |
$ |
0.82 |
|||
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES |
|||||
Consolidated Balance Sheets |
|||||
(in thousands) |
|||||
Unaudited |
|||||
|
July 31, |
|
January 31, |
||
|
2024 |
2024 |
|||
ASSETS |
|
|
|
||
CURRENT ASSETS: |
|
|
|
||
Cash and cash equivalents |
$ |
261,040 |
|
$ |
223,397 |
Short-term investments |
|
84,942 |
|
|
155,260 |
Accounts receivable |
|
24,262 |
|
|
23,185 |
Inventory |
|
29,162 |
|
|
26,984 |
Refundable income taxes |
|
5,272 |
|
|
5,728 |
Prepaid expenses and other |
|
14,236 |
|
17,549 |
|
Total current assets |
|
418,914 |
|
|
452,103 |
Property and equipment, net |
|
190,188 |
|
|
155,587 |
Operating lease right-of-use assets |
|
13,221 |
|
|
13,038 |
Other assets |
|
19,285 |
|
|
9,138 |
Equity method investment |
|
38,401 |
|
34,936 |
|
TOTAL ASSETS |
$ |
680,009 |
$ |
664,802 |
|
LIABILITIES AND EQUITY |
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
||
Accounts payable – trade |
$ |
31,254 |
|
$ |
42,073 |
Current operating lease liabilities |
|
3,482 |
|
|
4,469 |
Accrued expenses and other current liabilities |
|
17,173 |
|
19,717 |
|
Total current liabilities |
|
51,909 |
|
66,259 |
|
LONG-TERM LIABILITIES: |
|
|
|
||
Deferred taxes |
|
1,598 |
|
|
1,598 |
Long-term operating lease liabilities |
|
9,716 |
|
|
8,378 |
Other long-term liabilities |
|
600 |
|
970 |
|
Total long-term liabilities |
|
11,914 |
|
10,946 |
|
EQUITY |
|
|
|
||
REX shareholders’ equity: |
|
|
|
||
Common stock |
|
299 |
|
|
299 |
Paid-in capital |
|
5,961 |
|
|
3,769 |
Retained earnings |
|
724,330 |
|
|
701,761 |
Treasury stock |
|
(190,957) |
|
(191,911) |
|
Total REX shareholders’ equity |
|
539,633 |
|
|
513,918 |
Noncontrolling interests |
|
76,553 |
|
73,679 |
|
Total equity |
|
616,186 |
|
587,597 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
680,009 |
$ |
664,802 |
|
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES |
|||||
Consolidated Statements of Cash Flows |
|||||
(in thousands) |
|||||
Unaudited |
|||||
|
Six Months Ended |
||||
|
July 31, |
|
July 31, |
||
|
2024 |
2023 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||
Net Income including noncontrolling interest |
$ |
27,280 |
|
$ |
18,984 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||
Depreciation |
|
8,824 |
|
|
8,915 |
Amortization of operating lease right-of-use assets |
|
3,153 |
|
|
2,671 |
Income from equity method investments |
|
(3,465) |
|
|
(4,537) |
Interest income from investments |
|
(3,292) |
|
|
(3,967) |
Deferred income taxes |
|
5,495 |
|
|
3,947 |
Stock based compensation expense |
|
1,772 |
|
3,892 |
|
Loss on disposal of property and equipment – net |
|
78 |
|
|
205 |
Changes in assets and liabilities: |
|
|
|
||
Accounts receivable |
|
(1,077) |
|
|
(6,836) |
Inventories |
|
(2,178) |
|
|
2,784 |
Refundable income taxes |
|
456 |
|
(2,692) |
|
Other assets |
|
(12,344) |
|
(7,162) |
|
Accounts payable – trade |
|
(14,009) |
|
|
(12,595) |
Other liabilities |
|
(4,985) |
|
|
3,019 |
Net cash provided by operating activities |
|
5,708 |
|
|
6,628 |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||
Capital expenditures |
|
(40,219) |
|
|
(8,173) |
Purchase of short-term investments |
|
(156,125) |
|
|
(194,400) |
Maturity of short-term investments |
|
229,735 |
|
|
227,490 |
Deposits |
|
203 |
|
|
(20) |
Proceeds from sale of real estate and property and equipment |
|
178 |
|
|
10 |
Net cash provided by investing activities |
|
33,772 |
|
24,907 |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
Payments to noncontrolling interests holders |
|
(1,837) |
|
|
(716) |
Net cash used in financing activities |
|
(1,837) |
|
|
(716) |
|
|
|
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
|
37,643 |
|
|
30,819 |
CASH AND CASH EQUIVALENTS – Beginning of period |
|
223,397 |
|
71,347 |
|
CASH AND CASH EQUIVALENTS – End of period |
$ |
261,040 |
|
$ |
102,166 |
|
|||||
Non-cash financing activities – Stock awards accrued |
$ |
798 |
$ |
570 |
|
Non-cash financing activities – Stock awards issued |
$ |
2,172 |
$ |
965 |
|
Non-cash investing activities – Accrued capital expenditures |
$ |
4,573 |
$ |
1,029 |
|
Non-cash investing activities – Capital additions transferred from prepaid expenses |
$ |
188 |
$ |
- |
|
Right-of-use assets acquired and liabilities incurred upon lease execution |
$ |
3,335 |
$ |
312 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240827575355/en/
Investors
Douglas Bruggeman
Chief Financial Officer
Caldwell Bailey
ICR, Inc.
rexamerican@icrinc.com
Source: REX American Resources Corporation
FAQ
What was REX American Resources' earnings per share in Q2 2024?
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How much has REX spent on its One Earth Energy expansion and carbon capture projects?
