|
Conference Call: |
212/231-2920 |
|
Webcast / Replay URL: |
|
|
The webcast will be available for replay for 30 days. |
REX American Resources’ Q4 ‘20 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, as is the refined coal entity, while those of its four other ethanol plants are reported as equity in income of unconsolidated ethanol affiliates. The Company reports results for its two business segments as ethanol and by-products, and refined coal.
REX’s Q4 ‘20 net sales and revenue were $126.0 million, compared with $120.9 million in Q4 ‘19. The year-over-year net sales and revenue increase was primarily due to higher pricing of dried distillers grains and modified distillers grains, as well as higher ethanol production levels, which more than offset lower ethanol pricing. Primarily reflecting these factors, Q4 ‘20 gross profit for the Company’s ethanol and by-products segment increased to $8.3 million, compared with $8.1 million in Q4 ‘19. As a result, the ethanol and by-products segment had income before income taxes of $5.3 million in Q4 ‘20, compared to income of $5.0 million in Q4 ‘19. The Company’s refined coal operation incurred a $1.4 million gross loss and a $1.6 million loss before income taxes in Q4 ‘20, compared to a $1.5 million gross loss and a loss before income taxes of $1.4 million in Q4 ‘19. REX reported Q4 ‘20 income before income taxes and non-controlling interests of $3.2 million, compared with income before income taxes and non-controlling interests of $2.8 million in the comparable year ago period. While the refined coal operation negatively impacted gross profit and income before income taxes, it contributed a tax benefit of $1.7 million and $1.5 million for Q4 ‘20 and Q4 ‘19, respectively.
Net income attributable to REX shareholders in Q4 ‘20 was $3.5 million, compared to net income of $4.4 million in Q4 ‘19. Q4 ‘20 basic and diluted net income per share attributable to REX common shareholders was $0.59, compared to net income per share of $0.70 in Q4 ‘19. Per share results in Q4 ‘20 and Q4 ‘19 are based on 6,008,000 and 6,320,000 diluted weighted average shares outstanding, respectively.
|
Segment Income Statement Data: |
|||||||||||||||
|
|
Three Months Ended |
Twelve Months Ended |
|||||||||||||
|
($ in thousands) |
January 31, |
January 31, |
|||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||
|
Net sales and revenue: |
|
|
|
|
|||||||||||
|
Ethanol & By-Products (1) |
$ |
125,970 |
|
$ |
120,874 |
|
$ |
372,664 |
|
$ |
417,700 |
|
|||
|
Refined coal (2) (3) |
|
48 |
|
|
46 |
|
|
182 |
|
|
334 |
|
|||
|
Total net sales and revenue |
$ |
126,018 |
|
$ |
120,920 |
|
$ |
372,846 |
|
$ |
418,034 |
|
|||
|
|
|
|
|
|
|||||||||||
|
Gross profit (loss): |
|
|
|
|
|||||||||||
|
Ethanol & By-Products (1) |
$ |
8,274 |
|
$ |
8,090 |
|
$ |
19,533 |
|
$ |
20,402 |
|
|||
|
Refined coal (2) |
|
(1,431 |
) |
|
(1,497 |
) |
|
(5,672 |
) |
|
(7,917 |
) |
|||
|
Total gross profit |
$ |
6,843 |
|
$ |
6,593 |
|
$ |
13,861 |
|
$ |
12,485 |
|
|||
|
|
|
|
|
|
|||||||||||
|
Income (loss) before income taxes: |
|
|
|
|
|||||||||||
|
Ethanol & By-Products (1) |
$ |
5,299 |
|
$ |
4,979 |
|
$ |
6,696 |
|
$ |
8,469 |
|
|||
|
Refined coal (2) |
|
(1,591 |
) |
|
(1,428 |
) |
|
(5,826 |
) |
|
(7,778 |
) |
|||
|
Corporate and other |
|
(479 |
) |
|
(714 |
) |
|
(2,352 |
) |
|
(1,860 |
) |
|||
|
Total income (loss) before income taxes |
$ |
3,229 |
|
$ |
2,837 |
|
$ |
(1,482 |
) |
$ |
(1,169 |
) |
|||
|
Benefit (provision) for income taxes: |
|
|
|
|
|||||||||
|
Ethanol & By-Products |
$ |
(14 |
) |
$ |
1,688 |
$ |
(31 |
) |
$ |
1,528 |
|||
|
Refined coal |
|
1,691 |
|
|
1,546 |
|
6,554 |
|
|
10,828 |
|||
|
Corporate and other |
|
116 |
|
|
178 |
|
577 |
|
|
457 |
|||
|
Total benefit for income taxes |
$ |
1,793 |
|
$ |
3,412 |
$ |
7,100 |
|
$ |
12,813 |
|||
|
Segment profit (loss): |
|
|
|
|
|||||||||||
|
Ethanol & By-Products |
$ |
3,739 |
|
$ |
4,756 |
|
$ |
3,788 |
|
$ |
5,439 |
|
|||
|
Refined coal |
|
167 |
|
|
182 |
|
|
988 |
|
|
3,391 |
|
|||
|
Corporate and other |
|
(363 |
) |
|
(536 |
) |
|
(1,775 |
) |
|
(1,403 |
) |
|||
|
Net income attributable to REX common shareholders |
$ |
3,543 |
|
$ |
4,402 |
|
$ |
3,001 |
|
$ |
7,427 |
|
|||
|
(1) |
Includes results attributable to non-controlling interests of approximately 25% for One Earth and approximately 1% for NuGen. |
|||
|
(2) |
Includes results attributable to non-controlling interests of approximately 5%. |
|||
|
(3) |
Refined coal sales are reported net of the cost of coal. |
REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “Fiscal 2020 proved to be a challenging year with the impact of Covid, however we are pleased to report earnings per share of $0.59 for the fourth quarter on the back of a profitable third quarter, reflecting the resiliency of our business and the efficiency of our plants and operations.”
“As we move forward into 2021 with all of our plants in operation, we remain optimistic for improved ethanol demand as we emerge from the impact of the pandemic and continue to be focused on creating additional shareholder value through our disciplined operating approach and strategic use of our strong balance sheet and liquidity position.”
Balance Sheet
At January 31, 2021, REX had cash and cash equivalents and short-term investments of $180.7 million, $48.2 million of which was at the parent company, and $132.5 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2020, of $205.7 million, $62.3 million of which was at the parent company, and $143.4 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, |
|||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||
|
Average selling price per gallon of ethanol |
$ |
1.36 |
$ |
1.43 |
$ |
1.30 |
$ |
1.37 |
|||
|
Average selling price per ton of dried distillers grains |
$ |
161.42 |
$ |
138.19 |
$ |
144.73 |
$ |
137.68 |
|||
|
Average selling price per pound of non-food grade corn oil |
$ |
0.27 |
$ |
0.24 |
$ |
0.26 |
$ |
0.25 |
|||
|
Average selling price per ton of modified distillers grains |
$ |
81.76 |
$ |
59.62 |
$ |
64.80 |
$ |
59.66 |
|||
|
Average cost per bushel of grain |
$ |
4.04 |
$ |
3.90 |
$ |
3.73 |
$ |
3.82 |
|||
|
Average cost of natural gas (per MmBtu) |
$ |
3.25 |
$ |
3.17 |
$ |
3.00 |
$ |
3.04 |
|||
Supplemental data related to REX’s ethanol interests:
|
REX American Resources Corporation (gallons in millions) |
|||
|
Entity |
Trailing |
Current |
REX’s Current Effective |
|
One Earth Energy, LLC Gibson City, IL |
118.6 |
75.4% |
89.4 |
|
NuGen Energy, LLC Marion, SD |
98.5 |
99.5% |
98.0 |
|
Big River Resources West Burlington, LLC West Burlington, IA |
101.0 |
10.3% |
10.4 |
|
Big River Resources Galva, LLC Galva, IL |
115.3 |
10.3% |
11.9 |
|
Big River United Energy, LLC Dyersville, IA |
116.1 |
5.7% |
6.6 |
|
Big River Resources Boyceville, LLC Boyceville, WI |
55.3 |
10.3% |
5.7 |
|
Total |
604.8 |
n/a |
222.0 |
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 212/231-2920 (domestic and international callers).
Participants can also listen to a live webcast of the call on the Company’s website, www.rexamerican.com/Corp/Page4.aspx. A webcast replay will be available for 30 days following the live event at www.rexamerican.com/Corp/Page4.aspx.
About REX American Resources Corporation
REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 605 million gallons of ethanol over the twelve-month period ended January 31, 2021. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 222 million gallons. In addition, the Company acquired a refined coal operation in August 2017. 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, gasoline and natural gas, ethanol and refined coal plants operating efficiently and according to forecasts and projections, changes in the international, national or regional economies, 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.
- statements of operations follow -
|
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, |
|||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||
|
Net sales and revenue |
$ |
126,018 |
|
$ |
120,920 |
|
$ |
372,846 |
|
$ |
418,034 |
|
|||
|
Cost of sales |
|
119,175 |
|
|
114,327 |
|
|
358,985 |
|
|
405,549 |
|
|||
|
Gross profit |
|
6,843 |
|
|
6,593 |
|
|
13,861 |
|
|
12,485 |
|
|||
|
Selling, general and administrative expenses |
|
(4,361 |
) |
|
(5,629 |
) |
|
(17,661 |
) |
|
(19,258 |
) |
|||
|
Equity in income of unconsolidated ethanol affiliates |
|
332 |
|
|
1,042 |
|
|
500 |
|
|
1,392 |
|
|||
|
Interest and other income, net |
|
415 |
|
|
831 |
|
|
1,818 |
|
|
4,212 |
|
|||
|
Income (loss) before income taxes and non-controlling interests |
|
3,229 |
|
|
2,837 |
|
|
(1,482 |
) |
|
(1,169 |
) |
|||
|
Benefit for income taxes |
|
1,793 |
|
|
3,412 |
|
|
7,100 |
|
|
12,813 |
|
|||
|
Net income including non-controlling interests |
|
5,022 |
|
|
6,249 |
|
|
5,618 |
|
|
11,644 |
|
|||
|
Net income attributable to non-controlling interests |
|
(1,479 |
) |
|
(1,847 |
) |
|
(2,617 |
) |
|
(4,217 |
) |
|||
|
Net income attributable to REX common shareholders |
$ |
3,543 |
|
$ |
4,402 |
|
$ |
3,001 |
|
$ |
7,427 |
|
|||
|
|
|
|
|
|
|||||||||||
|
Weighted average shares outstanding – basic and diluted |
|
6,008 |
|
|
6,320 |
|
|
6,167 |
|
|
6,318 |
|
|||
|
|
|
|
|
|
|||||||||||
|
Basic and diluted net income per share attributable to REX common shareholders |
$ |
0.59 |
|
$ |
0.70 |
|
$ |
0.49 |
|
$ |
1.18 |
|
|||
|
|
|
|
|
|
|||||||||||
- balance sheets follow -
|
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Unaudited |
|||||||
|
January 31, |
January 31, |
||||||
|
ASSETS |
|
2021 |
|
|
|
2020 |
|
|
CURRENT ASSETS: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
144,501 |
|
|
$ |
179,658 |
|
|
Short-term investments |
|
36,194 |
|
|
|
26,073 |
|
|
Restricted cash |
|
1,657 |
|
|
|
1,113 |
|
|
Accounts receivable |
|
19,713 |
|
|
|
12,969 |
|
|
Inventory |
|
37,880 |
|
|
|
35,634 |
|
|
Refundable income taxes |
|
6,020 |
|
|
|
6,029 |
|
|
Prepaid expenses and other |
|
12,785 |
|
|
|
9,659 |
|
|
Total current assets |
|
258,750 |
|
|
|
271,135 |
|
|
Property and equipment-net |
|
153,186 |
|
|
|
163,327 |
|
|
Operating lease right-of-use assets |
|
12,678 |
|
|
|
16,173 |
|
|
Other assets |
|
25,275 |
|
|
|
17,403 |
|
|
Equity method investment |
|
29,456 |
|
|
|
32,464 |
|
|
TOTAL ASSETS |
$ |
479,345 |
|
|
$ |
500,502 |
|
|
LIABILITIES AND EQUITY |
|
|
|
||||
|
CURRENT LIABILITIES: |
|
|
|
||||
|
Accounts payable – trade |
$ |
16,907 |
|
|
$ |
18,900 |
|
|
Current operating lease liabilities |
|
4,875 |
|
|
|
4,935 |
|
|
Accrued expenses and other current liabilities |
|
8,955 |
|
|
|
7,764 |
|
|
Total current liabilities |
|
30,737 |
|
|
|
31,599 |
|
|
LONG TERM LIABILITIES: |
|
|
|
||||
|
Deferred taxes |
|
3,713 |
|
|
|
4,334 |
|
|
Long-term operating lease liabilities |
|
7,439 |
|
|
|
10,688 |
|
|
Other long-term liabilities |
|
273 |
|
|
|
275 |
|
|
Total long-term liabilities |
|
11,425 |
|
|
|
15,297 |
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
||||
|
EQUITY: |
|
|
|
||||
|
REX shareholders’ equity: |
|
|
|
||||
|
Common stock, 45,000 shares authorized, 29,853 shares issued at par |
|
299 |
|
|
|
299 |
|
|
Paid in capital |
|
149,110 |
|
|
|
148,789 |
|
|
Retained earnings |
|
589,986 |
|
|
|
586,985 |
|
|
Treasury stock, 23,861 and 23,561 shares, respectively |
|
(354,612 |
) |
|
|
(335,066 |
) |
|
Total REX shareholders’ equity |
|
384,783 |
|
|
|
401,007 |
|
|
Non-controlling interests |
|
52,400 |
|
|
|
52,599 |
|
|
Total equity |
|
437,183 |
|
|
|
453,606 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
479,345 |
|
|
$ |
500,502 |
|
- statements of cash flows follow -
|
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Unaudited |
|||||||
|
Twelve Months Ended |
|||||||
|
January 31, |
|||||||
|
|
|
2021 |
|
|
2020 |
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|||||
|
Net income |
$ |
5,618 |
|
$ |
11,644 |
|
|
|
Adjustments to reconcile net income to net cash |
|
|
|||||
|
provided by operating activities: |
|
|
|||||
|
Depreciation |
|
20,906 |
|
|
23,007 |
|
|
|
Amortization of operating lease right-of-use assets |
|
5,358 |
|
|
6,304 |
|
|
|
Stock based compensation expense |
|
264 |
|
|
397 |
|
|
|
Income from equity method investments |
|
(500 |
) |
|
(1,392 |
) |
|
|
Dividends received from equity method investments |
|
3,508 |
|
|
1,003 |
|
|
|
Interest income from investments |
|
(216 |
) |
|
(73 |
) |
|
|
Deferred income tax |
|
(7,949 |
) |
|
(11,070 |
) |
|
|
Gain on disposal of property and equipment |
|
(58 |
) |
|
- |
|
|
|
Changes in assets and liabilities: |
|
|
|||||
|
Accounts receivable |
|
(6,744 |
) |
|
(1,591 |
) |
|
|
Inventory |
|
(2,246 |
) |
|
(17,157 |
) |
|
|
Prepaid expenses and other assets |
|
(3,138 |
) |
|
(752 |
) |
|
|
Income taxes refundable |
|
9 |
|
|
1,666 |
|
|
|
Accounts payable-trade |
|
(2,346 |
) |
|
11,400 |
|
|
|
Other liabilities |
|
(3,843 |
) |
|
(13,043 |
) |
|
|
Net cash provided by operating activities |
|
8,623 |
|
|
10,343 |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|||||
|
Capital expenditures |
|
(10,412 |
) |
|
(3,776 |
) |
|
|
Purchases of short-term investments |
|
(96,233 |
) |
|
(26,025 |
) |
|
|
Sales of short-term investments |
|
86,328 |
|
|
15,000 |
|
|
|
Loan receivable repayments |
|
- |
|
|
369 |
|
|
|
Proceeds from sale of real estate and property and equipment |
|
58 |
|
|
- |
|
|
|
Restricted deposits |
|
(532 |
) |
|
- |
|
|
|
Net cash used in investing activities |
|
(20,791 |
) |
|
(14,432 |
) |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|||||
|
Treasury stock acquired |
|
(19,629 |
) |
|
- |
|
|
|
Payments to noncontrolling interests holders |
|
(2,928 |
) |
|
(4,264 |
) |
|
|
Capital contributions from minority investor |
|
112 |
|
|
312 |
|
|
|
Net cash used in financing activities |
|
(22,445 |
) |
|
(3,952 |
) |
|
|
NET DECREASE IN CASH, CASH EQUIVALENTS |
|
|
|||||
|
AND RESTRICTED CASH |
|
(34,613 |
) |
|
(8,041 |
) |
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period |
|
180,771 |
|
|
188,812 |
|
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period |
$ |
146,158 |
|
$ |
180,771 |
|
|
|
Non cash financing activities – Equity awards issued |
$ |
241 |
|
$ |
487 |
|
|
|
Non cash financing activities – Equity awards accrued |
$ |
99 |
|
$ |
241 |
|
|
|
Non cash investing activities – Accrued capital expenditures |
$ |
390 |
|
$ |
37 |
|
|
|
|
|
|
|||||
|
Initial operating lease right-of-use assets and liabilities recorded |
|
|
|||||
|
upon adoption of ASC 842 |
$ |
- |
|
$ |
20,918 |
|
|
|
Operating lease right-of-use assets acquired and liabilities assumed |
|
|
|||||
|
upon lease execution |
$ |
1,863 |
|
$ |
432 |
|
|