REX American Resources Reports Fiscal 2021 Third Quarter Net Income Per Share Attributable to Rex Common Shareholders Increase of 78% To $2.56

December 1, 2021

DAYTON, Ohio--()--REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 third quarter (“Q3 ‘21”) ended October 31, 2021. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

 

212/231-2932

Webcast / Replay URL:

 

www.rexamerican.com

 

 

The webcast will be available for replay for 30 days.

REX American Resources’ Q3 ‘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, as is the refined coal entity, 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 Q3 ‘21 net sales and revenue were $203.1 million, compared with $124.2 million in Q3 ‘20. The year-over-year net sales and revenue increase was primarily due to higher ethanol, distillers grains, and corn oil pricing. Reflecting the revenue growth, which was partially offset by increased costs in corn and natural gas, Q3 ‘21 gross profit for the Company’s continuing operations increased to $25.2 million, compared with $18.9 million in Q3 ‘20. As a result, the Company reported Q3 ‘21 income before income taxes and non-controlling interests from continuing operations of $19.2 million, compared with $16.3 million in the comparable year ago period.

Net income attributable to REX shareholders in Q3 ‘21 was $15.3 million, compared to $8.8 million in Q3 ‘20. Q3 ‘21 basic and diluted net income per share attributable to REX common shareholders was $2.56, compared to net income per share of $1.44 in Q3 ‘20. Per share results in Q3 ‘21 and Q3 ‘20 are based on 5,963,000 and 6,143,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased to report strong results for the fiscal third quarter and year to date, including earnings per share of $2.56 for the quarter and $5.16 for the nine months ended October 31, 2021. We experienced significantly improved pricing across all of our ethanol products, which more than offset higher input costs and which led to improved results.

“We remain confident in our steadfast principles of ethanol production, which combined with our focus on efficiencies and the operational excellence of our plants continues to create additional value for our shareholders. I would like to again recognize the hard work and dedication of our employees as we navigated through the past 18 months.”

Balance Sheet

At October 31, 2021, REX had cash and cash equivalents and short-term investments of $219.0 million, $33.9 million of which was at the parent company, and $185.1 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.

During the fiscal third quarter ended October 31, 2021 the Company repurchased 66,792 shares of its common stock at a cost of $5.3 million. The Company is currently authorized to repurchase up to an additional 449,413 shares of common stock and has approximately 5,920,351 shares of common stock outstanding.

The following table summarizes select data related to REX’s
consolidated alternative energy interests:

         

 

 

Three Months

Ended
October 31,

 

Nine Months

Ended
October 31,

 

 

2021

 

2020

 

2021

 

2020

Average selling price per gallon of ethanol

 

$

2.31

 

$

1.31

 

$

2.12

 

$

1.28

Average selling price per ton of dried distillers grains

 

$

184.85

 

$

129.38

 

$

200.02

 

$

136.49

Average selling price per pound of non-food grade corn oil

 

$

0.59

 

$

0.24

 

$

0.47

 

$

0.25

Average selling price per ton of modified distillers grains

 

$

92.10

 

$

56.68

 

$

83.97

 

$

52.44

Average cost per bushel of grain

 

$

6.45

 

$

3.28

 

$

6.05

 

$

3.57

Average cost of natural gas (per MmBtu)

 

$

4.58

 

$

2.09

 

$

3.69

 

$

2.87

Supplemental data related to REX’s ethanol interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of October 31, 2021

(gallons in millions)

Entity

Trailing
Twelve
Months
Gallons
Shipped

Current
REX
Ownership
Interest

REX’s Current Effective
Ownership of Trailing Twelve
Month Gallons Shipped

One Earth Energy, LLC
Gibson City, IL

137.9

75.8%

104.5

NuGen Energy, LLC
Marion, SD

137.8

99.7%

137.4

Big River Resources West Burlington, LLC
West Burlington, IA

110.3

10.3%

11.4

Big River Resources Galva, LLC
Galva, IL

116.0

10.3%

11.9

Big River United Energy, LLC
Dyersville, IA

125.3

5.7%

7.1

Big River Resources Boyceville, LLC
Boyceville, WI

63.6

10.3%

6.6

Total

690.9

n/a

278.9

Third 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 212/231-2932 (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 691 million gallons of ethanol over the twelve-month period ended October 31, 2021. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended October 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 279 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, 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

October 31,

 

Nine Months
Ended

October 31,

 

 

2021

 

2020

 

2021

 

2020

Net sales and revenue

 

$

203,066

 

 

$

124,217

 

 

$

562,786

 

 

$

246,694

 

Cost of sales

 

 

177,914

 

 

 

105,288

 

 

 

504,003

 

 

 

235,435

 

Gross profit (loss)

 

 

25,152

 

 

 

18,929

 

 

 

58,783

 

 

 

11,259

 

Selling, general and administrative expenses

 

 

(6,310

)

 

 

(4,269

)

 

 

(22,444

)

 

 

(13,407

)

Equity in income (loss) of unconsolidated ethanol affiliates

 

 

349

 

 

 

1,152

 

 

 

2,763

 

 

 

168

 

Interest and other income, net

 

 

35

 

 

 

537

 

 

 

117

 

 

 

1,403

 

Income (loss) before income taxes and non-controlling interests

   

19,226

     

16,349

     

39,219

     

(577

)

(Provision) benefit for income taxes

 

 

(4,338

)

 

 

(5,037

)

 

 

(8,329

)

 

 

444

 

Net income (loss) from continuing operations including non-controlling interests

   

14,888

 

   

11,312

 

   

30,890

     

(133

)

Net income attributable to non-controlling interests (continuing operations)

   

(1,562

)

   

(2,276

)

   

(4,585

)

   

(1,331

)

Net income (loss) attributable to REX common shareholders (continuing operations)

   

13,326

     

9,036

     

26,305

     

(1,464

)

 

Net income (loss) from discontinued operations, net of tax

   

1,815

     

(253

)

   

4,263

 

   

729

 

Net income attributable to noncontrolling interests (discontinued operations)

   

137

 

   

58

     

370

 

   

193

 

Net income (loss) attributable to REX common shareholders (discontinued operations)

   

1,952

     

(195

)

   

4,633

     

922

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to REX common shareholders

 

$

15,278

 

 

$

8,841

 

 

$

30,938

 

 

$

(542

)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic and diluted

 

 

5,963

 

 

 

6,143

 

 

 

5,994

 

 

 

6,221

 

 

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per share from continuing operations attributable to REX common shareholders

 

$

2.23

 

 

$

1.47

 

 

$

4.39

   

$

(0.24

)

Basic and diluted net income (loss) per share from discontinued operations attributable to REX common shareholders

 

 

 

 

0.33

 

 

 

 

 

 

(0.03

 

)

 

 

 

 

0.77

 

 

 

 

 

 

0.15

 

 

Basic and diluted net income (loss) per share attributable to REX common shareholders

 

$

2.56

 

 

$

1.44

 

 

$

5.16

 

 

$

(0.09

)

- balance sheets follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Unaudited

         

ASSETS

 

October 31,
2021

 

January 31,
2021

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

197,395

 

 

$

144,501

 

Short-term investments

 

 

21,620

 

 

 

36,194

 

Restricted cash

 

 

1,737

 

 

 

1,657

 

Accounts receivable

 

 

40,026

 

 

 

19,713

 

Inventory

 

 

29,753

 

 

 

37,426

 

Refundable income taxes

 

 

5,930

 

 

 

6,020

 

Prepaid expenses and other

 

 

10,389

 

 

 

12,751

 

Current assets held for sale

 

 

392

 

 

 

488

 

Total current assets

 

 

307,242

 

 

 

258,750

 

Property and equipment-net

 

 

141,205

 

 

 

150,861

 

Operating lease right-of-use assets

 

 

11,817

 

 

 

12,678

 

Deferred taxes and other assets

 

 

33,190

 

 

 

25,275

 

Equity method investment

 

 

30,715

 

 

 

29,456

 

Assets held for sale

 

 

233

 

 

 

2,325

 

TOTAL ASSETS

 

$

524,402

 

 

$

479,345

 

LIABILITIES AND EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable – trade

 

$

27,133

 

 

$

16,573

 

Current operating lease liabilities

 

 

4,999

 

 

 

4,875

 

Accrued expenses and other current liabilities

 

 

14,121

 

 

 

8,754

 

Current liabilities held for sale

 

 

282

 

 

 

535

 

Total current liabilities

 

 

46,535

 

 

 

30,737

 

LONG TERM LIABILITIES:

 

 

 

 

Deferred taxes

 

 

4,030

 

 

 

3,713

 

Long-term operating lease liabilities

 

 

6,553

 

 

 

7,439

 

Other long-term liabilities

 

 

2,581

 

 

 

273

 

Total long-term liabilities

 

 

13,164

 

 

 

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

 

 

149,299

 

 

 

149,110

 

Retained earnings

 

 

620,924

 

 

 

589,986

 

Treasury stock, 23,933 shares

 

 

(361,199

)

 

 

(354,612

)

Total REX shareholders’ equity

 

 

409,323

 

 

 

384,783

 

Non-controlling interests

 

 

55,380

 

 

 

52,400

 

Total equity

 

 

464,703

 

 

 

437,183

 

TOTAL LIABILITIES AND EQUITY

 

$

524,402

 

 

$

479,345

 

- statements of cash flows follow -

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Unaudited

 

       
   

Nine Months Ended
October 31,

 

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net income

 

$

35,153

 

 

$

596

 

Net income from discontinued operations, net of tax

 

 

4,263

 

 

 

729

 

Net income (loss) from continuing operations

 

 

30,890

 

 

 

(133

)

Adjustments to reconcile net income (loss) to net cash

 

 

 

 

provided by (used in) operating activities:

 

 

 

 

Depreciation

 

 

13,505

 

 

 

13,604

 

Amortization of operating lease right-of-use assets

 

 

4,128

 

 

 

3,982

 

Stock based compensation expense

 

 

1,100

 

 

 

122

 

Income from equity method investments

 

 

(2,763

)

 

 

(168

)

Dividends received from equity method investments

 

 

1,504

 

 

 

2,506

 

Interest income from investments

 

 

(36

)

 

 

(200

)

Deferred income tax

 

 

5,840

 

 

 

(356

)

Gain on disposal of property and equipment

 

 

(1

)

 

 

(58

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(20,313

)

 

 

473

 

Inventory

 

 

7,673

 

 

 

14,000

 

Refundable income taxes

 

 

(332

)

 

 

(130

)

Other assets

 

 

1,912

 

 

 

(611

)

Accounts payable-trade

 

 

10,916

 

 

 

(4,361

)

Other liabilities

 

 

2,776

 

 

 

(4,966

)

Net cash provided by operating activities from continuing operations

 

 

56,799

 

 

 

23,704

 

Net cash used in operating activities from discontinued operations

 

 

(6,368

)

 

 

(2,205

)

Net cash provided by operating activities

 

 

50,431

 

 

 

21,499

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Capital expenditures

 

 

(4,245

)

 

 

(6,610

)

Purchases of short-term investments

 

 

(67,412

)

 

 

(68,225

)

Sales of short-term investments

 

 

82,022

 

 

 

65,282

 

Other

 

 

40

 

 

 

(474

)

Net cash provided by (used in) investing activities

 

 

10,405

 

 

 

(10,027

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Treasury stock acquired

 

 

(6,627

)

 

 

(18,089

)

Payments to noncontrolling interests holders

 

 

(1,515

)

 

 

(283

)

Net cash used in financing activities from continuing operations

 

 

(8,142

)

 

 

(18,372

)

Net cash provided by financing activities from discontinued operations

 

 

280

 

 

 

88

 

Net cash used in financing activities

 

 

(7,862

)

 

 

(18,284

)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS
AND RESTRICTED CASH

 

 

52,974

 

 

 

(6,812

)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period

 

 

146,158

 

 

 

180,771

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period

 

$

199,132

 

 

$

173,959

 

Non-cash financing activities – Stock awards issued

 

$

100

 

 

$

240

 

Non-cash financing activities – Stock awards accrued

 

$

972

 

 

$

-

 

Non-cash investing activities – Accrued capital expenditures

 

$

34

 

 

$

198

 

Right-of use assets acquired and liabilities incurred upon lease execution

 

$

3,267

 

 

$

1,863

 

 

Douglas Bruggeman
Chief Financial Officer
(937) 276‑3931

Joseph Jaffoni, Norberto Aja
JCIR
(212) 835-8500
rex@jcir.com