UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 30, 2023

 

REX AMERICAN RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware   001-09097   31-1095548
(State or other jurisdiction   (Commission File No.)   (IRS Employer Identification No.)
of incorporation)        

 

7720 Paragon Road Dayton, Ohio   45459
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (937) 276-3931

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading symbol Name of each exchange on which registered
Commons stock, $0.01 par value REX New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                                

 
Item 2.02. Results of Operations and Financial Condition

 

On August 30, 2023, REX American Resources Corporation issued a press release announcing financial results for the three-month period ended July 31, 2023. The press release is furnished as Exhibit 99 to this report.

 

Item 9.01. Financial Statements and Exhibits
  (c)

Exhibits. The following exhibits are furnished with this report:

 

99   Press Release dated August 30, 2023

    104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  REX AMERICAN RESOURCES CORPORATION
       
Date: August 30, 2023 By: /s/ DOUGLAS L. BRUGGEMAN  
       
    Name:   Douglas L. Bruggeman  
    Title: Vice President - Finance,
Chief Financial Officer and Treasurer
 
 
false 0000744187 0000744187 2023-08-30 2023-08-30

Exhibit 99

 

 

NEWS ANNOUNCEMENT FOR IMMEDIATE RELEASE

 

REX AMERICAN RESOURCES REPORTS FISCAL 2023
SECOND QUARTER NET INCOME PER SHARE
ATTRIBUTABLE TO REX COMMON SHAREHOLDERS OF $0.52

 

Dayton, Ohio, (August 30, 2023) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2023 second quarter (“Q2 ‘23”) ended July 31, 2023. 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’ Q2 ‘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 Q2 ‘23 net sales and revenue were $212.0 million compared with $240.3 million in Q2 ‘22. The year-over-year net sales and revenue decline primarily reflects a reduction in the quantities sold of ethanol, as well as lower prices for ethanol, dried and modified distillers grains, and corn oil. Q2 ‘23 gross profit increased 30.1% to $18.4 million, from $14.1 million in Q2 ‘22, primarily reflecting lower corn and natural gas pricing. Income before income taxes and non-controlling interests was $16.1 million, compared with $19.2 million in the comparable year-ago period; however, excluding the benefit of COVID-19 relief grants received in Q2 ‘22 income before income taxes and noncontrolling interest increased 64.3% to $16.1 million in Q2 ‘23 from $9.8 million in Q2 ‘22. Q2 ‘22 benefited as the Company’s two consolidated plants received COVID-19 relief grants from the U.S.D.A. totaling approximately $7.8 million recorded as other income, and approximately $1.6 million recorded as equity income in unconsolidated affiliates.

 

Net income attributable to REX shareholders was $9.1 million in Q2 ‘23 compared with $11.2 million in Q2 ‘22. Q2 ‘23 basic and diluted net income per share attributable to REX common shareholders was $0.52, compared to $0.63 per share in Q2 ‘22. Per share results for the Q2 ‘23 and Q2 ‘22 periods are based on 17,460,000 and 17,772,000 diluted weighted average shares outstanding, respectively, reflecting the Company’s 3-for-1 common stock split effected August 5, 2022.

 
REX American Resources Q2 ‘23 Results, 8/30/23 page 2

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “Our focus on operational efficiency resulted in REX delivering its twelfth consecutive quarter of profitability. During the quarter we continued our efforts on the One Earth Energy carbon capture project. We believe the One Earth project has the potential to deliver compelling financial returns and will position REX to play an important role in reducing greenhouse gas emissions. Earlier this year, our NuGen Energy facility reached an agreement to be part of Summit Carbon Solutions’ carbon capture and storage pipeline, which we believe will also advance our sustainability goals. In addition, Big River Resources previously entered into an agreement with Navigator CO2 whereby Navigator is to provide Big River with turnkey carbon capture, utilization and storage services.

 

“Our solid financial position and balance sheet flexibility, combined with our company-wide focus on operational excellence, allows us to continue to make return-focused investments to further strengthen our plants and their operational efficiency while also moving our carbon capture and sequestration initiatives forward.”

 

Balance Sheet

As of July 31, 2023, REX had cash and cash equivalents and short-term investments of $284.4 million, $31.2 million of which was at the parent company and $253.2 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2023, of $280.9 million, $42.1 million of which was at the parent company and $238.8 million of which was at its consolidated production facilities.

 

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

 

   Three Months Ended
July 31,
   Six Months Ended
July 31,
 
    2023    2022    2023    2022 
Average selling price per gallon of ethanol    $2.42   $2.65     $2.32   $2.47 
Average selling price per ton of dried distillers grains  $226.48   $249.62   $236.30   $233.80 
Average selling price per pound of distillers corn oil  $0.55   $0.72   $0.59   $0.68 
Average selling price per ton of modified distillers grains  $103.01   $128.50   $116.20   $121.65 
                     
Ethanol gallons sold (in millions)   69.1    71.4    140.6    135.9 
 
REX American Resources Q2 ‘23 Results, 8/30/23 page 3

 

Change in Accounting Principles

For the quarter ended July 31, 2023 the Company made a change in the method of accounting to begin classifying shipping and handling costs as cost of sales, instead of within selling, general and administrative expenses (SG&A), as historically presented, in order to improve the comparability of gross profit and SG&A reported. The Company has applied a retrospective application of the new accounting policy.

 

The following table summarizes the impact of the Company’s
retrospective change in accounting principle:

 

   Three Months Ended
April 30, 2023
   As Previously
Reported
  Effect of
Change
  As Currently
Reported
                
Cost of sales    $197,685     $4,863     $202,548 
                
Gross profit  $15,029   $(4,863)  $10,166 
                
Selling, general and administrative expenses  $(10,632)  $4,863   $(5,769)

 

   Three Months Ended
July 31, 2022
  Six Months Ended
July 31, 2022
   As Previously
Reported
  Effect of
Change
  As Currently
Reported
  As Previously
Reported
  Effect of
Change
  As Currently
Reported
                         
Cost of sales    $223,744     $2,481     $226,225     $406,060     $2,485     $408,545 
                               
Gross profit  $16,584   $(2,481)  $14,103   $28,496   $(2,485)  $26,011 
                               
Selling, general and administrative expenses  $(9,148)  $2,481   $(6,667)  $(14,351)  $2,485   $(11,866)

 

Second 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 212/231-2932 (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 695 million gallons of ethanol over the twelve-month period ended July 31, 2023. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended July 31, 2023) by the ethanol production facilities in which it has ownership interests was approximately 275 million gallons. Further information about REX is available at www.rexamerican.com.

 
REX American Resources Q2 ‘23 Results, 8/30/23 page 4

 

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 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.

 

Contact:    
Douglas Bruggeman   Joseph Jaffoni, Norberto Aja
Chief Financial Officer   JCIR
(937) 276-3931   (212) 835-8500 / rex@jcir.com
 
REX American Resources Q2 ‘23 Results, 8/30/23 page 5

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited

 

   Three Months Ended
July 31,
  Six Months Ended
July 31,
   2023  2022  2023  2022
Net sales and revenue     $211,977      $240,328      $424,691      $434,556 
Cost of sales   193,625    226,225    396,173    408,545 
Gross profit   18,352    14,103    28,518    26,011 
Selling, general and administrative expenses   (8,618)   (6,667)   (14,387)   (11,866)
Equity in income of unconsolidated ethanol affiliates   3,047    3,598    4,537    5,549 
Interest and other income, net   3,271    8,181    6,072    8,355 
Income before income taxes and noncontrolling interests   16,052    19,215    24,740    28,049 
Provision for income taxes   (3,768)   (4,330)   (5,756)   (6,178)
Net income   12,284    14,885    18,984    21,871 
Net income attributable to noncontrolling interests   (3,229)   (3,715)   (4,693)   (5,519)
Net income attributable to REX common shareholders  $9,055   $11,170   $14,291   $16,352 
                     
Weighted average shares outstanding - basic and diluted   17,460    17,772    17,427    17,777 
                     
Basic and diluted net income per share attributable to REX common shareholders  $0.52   $0.63   $0.82   $0.92 

 

- balance sheets follow -

 
REX American Resources Q2 ‘23 Results, 8/30/23 page 6

 

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

 

ASSETS:  July 31,
2023
  January 31,
2023
CURRENT ASSETS:          
Cash and cash equivalents     $102,166      $69,612 
Short-term investments   182,209    211,331 
Restricted cash   2,009    1,735 
Accounts receivable   31,998    25,162 
Inventory   45,960    48,744 
Refundable income taxes   5,654    2,962 
Prepaid expenses and other   17,947    13,098 
Total current assets   387,943    372,644 
Property and equipment, net   135,144    135,497 
Operating lease right-of-use assets   12,713    15,214 
Other assets   19,554    23,179 
Equity method investment   37,582    33,045 
TOTAL ASSETS  $592,936   $579,579 
LIABILITIES AND EQUITY:          
CURRENT LIABILITIES:          
Accounts payable - trade  $22,100   $34,091 
Current operating lease liabilities   5,095    5,180 
Accrued expenses and other current liabilities   20,346    15,328 
Total current liabilities   47,541    54,599 
LONG-TERM LIABILITIES:          
Deferred taxes   1,097    1,097 
Long-term operating lease liabilities   7,605    9,855 
Other long-term liabilities   3,144    3,034 
Total long-term liabilities   11,846    13,986 
EQUITY:          
REX shareholders' equity:          
Common stock   299    299 
Paid-in capital   3,181    578 
Retained earnings   655,117    640,826 
Treasury stock   (192,037)   (193,721)
Total REX shareholders' equity   466,560    447,982 
Noncontrolling interests   66,989    63,012 
Total equity   533,549    510,994 
TOTAL LIABILITIES AND EQUITY  $592,936   $579,579 

 

- statements of cash flows follow -

 
REX American Resources Q2 ‘23 Results, 8/30/23 page 7

 

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

 

   Six Months Ended
July 31,
   2023  2022
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income including noncontrolling interests     $18,984      $21,871 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation   8,915    8,984 
Amortization of operating lease right-of-use assets   2,671    2,835 
Income from equity method investments   (4,537)   (5,549)
Interest income from investments   (3,967)   (488)
Deferred income taxes   3,947    4,153 
Stock based compensation expense   3,892    856 
Loss on sale of property and equipment - net   205    5 
Changes in assets and liabilities:          
Accounts receivable   (6,836)   (12,738)
Inventories   2,784    (7,703)
Refundable income taxes   (2,692)   779 
Other assets   (5,153)   (2,153)
Accounts payable - trade   (12,595)   (11,254)
Other liabilities   3,019    1,173 
Net cash provided by operating activities   8,637    771 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital Expenditures   (8,173)   (2,936)
Purchase of short-term investments   (194,400)   (189,988)
Sale of short-term investments   227,490    25,882 
Deposits   (20)   - 
Proceeds from sale of real estate and property and equipment   10    - 
Net cash provided by (used in) investing activities   24,907    (167,042)
CASH FLOWS FROM FINANCING ACTIVITIES:          
Treasury stock acquired   -    (6,193)
Payments to noncontrolling interests holders   (716)   (1,633)
Net cash used in financing activities   (716)   (7,826)
           
NET INCREASE (DECREASE)  IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   32,828    (174,097)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period   71,347    232,068 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period  $104,175   $57,971 
           
Non-cash financing activities - Stock awards accrued  $570   $563 
Non-cash financing activities - Stock awards issued  $965   $1,539 
Non-cash investing activities - Accrued capital expenditures  $1,029   $260 
Right-of-use assets acquired and liabilities incurred upon lease execution  $312   $4,507 

 

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