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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): March 28, 2013

 

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)        

 

2875 Needmore Road, Dayton, Ohio   45414
(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))
 

Item 2.02.   Results of Operations and Financial Condition

 

On March 28, 2013, REX American Resources Corporation issued a press release announcing financial results for the three month and twelve month periods ended January 31, 2013. 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:

 

99Press Release dated March 28, 2013
 

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: March 28, 2013 By: /s/ DOUGLAS L. BRUGGEMAN  
    Name: Douglas L. Bruggeman  
    Title:   Vice President - Finance,  
                Chief Financial Officer  
                 and Treasurer  
 

Exhibit 99

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES FISCAL 2012 REVENUE RISES

60%TO $658 MILLION; DILUTED EPS LOSS OF $0.28

 

- Q4 Revenue Rises 2% to $175 Million -

 

Dayton, Ohio, (March 28, 2013) -- REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2012 fourth quarter (“Q4 ’12”) and year ended January 31, 2013. REX management will host a conference call and webcast today at 9:00 a.m. ET.

 

Conference Call:   (212) 231-2914
     
Webcast / Replay URL:   www.rexamerican.com/Corp/Page4.aspx
The webcast will be available for replay for 30 days

 

REX American Resources’ Q4 ’12 results principally reflect its alternative energy segment interests in seven ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated (NuGen was effective November 1, 2011), while those of its five other plants are reported as equity in income of unconsolidated ethanol affiliates.

 

REX recognizes certain results from its ethanol interests on a quarterly calendar basis, and as a result, REX’s Q4 results include results from ethanol operations for the period October 1, 2012 through December 31, 2012, with the exception of NuGen, which is for the period November 1, 2012 through January 31, 2013.

 

REX’s Q4 ’12 net sales and revenue rose 2.4% to $174.6 million, from $170.5 million in Q4 ’11. Reflecting the compression of ethanol margins along with lower income from discontinued operations, net loss attributable to REX shareholders in Q4 ’12 was $4.4 million, or a loss of $0.54 per diluted share, compared with income of $14.8 million, or $1.76 per diluted share, in Q4 ’11. Q4 ’12 loss from continuing operations attributable to REX shareholders net of tax was $4.6 million, or $0.56 per diluted share, compared with income of $14.5 million, or $1.72 per diluted share, in Q4 ’11. REX recorded income from discontinued operations net of tax, including gain on disposal of discontinued operations, of $0.1 million, or $0.02 per diluted share for Q4 ’12, compared with $0.3 million, or $0.04 per diluted share in Q4 ’11. Per share results in Q4 ’12 and Q4 ’11 are based on 8,156,000 and 8,398,000 diluted weighted average shares outstanding, respectively. The 2.9% reduction in the shares outstanding principally reflects the Company’s ongoing open market share repurchase program partially offset by shares exercised pursuant to options.

 

- more -

 
REX American Resources Q4’ 12 Results, 3/28/13page 2

 

Primarily reflecting the challenging alternative energy industry conditions that prevailed throughout fiscal 2012, REX incurred a consolidated gross loss (inclusive of the Company’s real estate segment) of $2.6 million in Q4’ 12, compared with a gross profit $20.5 million in Q4’ 11. In Q4 ’12, equity in loss of unconsolidated affiliates was $0.9 million, compared with income of $5.7 million in Q4 ’11. REX’s Q4 ’12 loss from continuing operations before income taxes and non-controlling interests was $8.3 million, compared with a profit of $25.2 million in Q4 ’11.

 

REX CEO, Stuart Rose, commented, “Fiscal 2012, in particular the fourth quarter, was a challenging period for the entire ethanol sector as profitability was significantly impacted by lower crush spread margins. In addition, year-over-year comparisons reflect the expiration of the VEETC tax credit at the end of 2011, as during the second half of 2011 there was an increase in demand for ethanol, which led to a slowdown in demand during 2012 and reduced ethanol pricing. Ethanol production costs also rose substantially during the second half of 2012 as the droughts across the Midwest significantly increased corn prices.

 

“Ethanol crush spread margins have strengthened since the beginning of calendar 2013 and REX is well positioned to take advantage of the improving industry environment. Our portfolio of state-of-the-art ethanol plants, and ability to efficiently produce dried distillers grains and corn oil, combined with the Company’s strict operating disciplines, suggests that REX will return to profitability as industry conditions normalize.”

 

On a full year basis, fiscal 2012 revenue rose 60.4% to $657.7 million, while gross profit declined from $34.0 million in fiscal 2011 to $13.5 million in fiscal 2012 reflecting the challenges faced by the industry throughout the year. As a result, the Company reported a fiscal 2012 net loss of $2.3 million, or a diluted EPS loss of $0.28, versus net income in fiscal 2011 of $28.3 million, or $3.08 per diluted share.

 

Balance Sheet and Share Repurchase Program

At January 31, 2013, REX had cash and cash equivalents of $69.1 million, $47.7 million of which was at the parent company and $21.4 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $75.0 million at January 31, 2012, $46.1 million of which was at the parent and $28.9 million of which was at its consolidated ethanol production facilities.

 

REX repurchased 31,902 common shares in Q4 ’12 at an average price per share of $16.92 and repurchased a total of 245,434 common shares in fiscal 2012 at an average price per share of $17.82. The Company is currently authorized to repurchase up to an additional 417,021 shares of common stock. Reflecting all share repurchases to date, REX has 8,151,846 shares outstanding.

 

At January 31, 2013, REX had lease agreements, as landlord for six former retail store locations. REX has 11 owned former retail stores that were vacant at January 31, 2013, which it is marketing to either lease or sell. The Company sold five former retail store locations during fiscal 2012. In addition, one former distribution center is partially leased, partially occupied by the REX corporate office and partially vacant. The real estate segment revenue reflects rental income derived from these sites.

 

- more -

 
REX American Resources Q4’ 12 Results, 3/28/13page 3

 

Segment Income Statement Data:

   Three Months
Ended		   Twelve Months
Ended		 
($ in thousands)  January 31,   January 31, 
   2013   2012   2013   2012 
Net sales and revenue:                    
Alternative energy (1)  $174,230   $170,078   $656,167   $408,635 
Real estate (2)   409    387    1,570    1,288 
Total net sales and revenues  $174,639   $170,465   $657,737   $409,923 
                     
Segment profit (loss):                    
Alternative energy segment (loss) profit (1)  $(7,554)  $25,645   $(1,027)  $48,580 
Real estate segment loss (2)   (215)   (62)   (511)   (1,376)
Corporate expense   (527)   (430)   (2,340)   (2,307)
Interest expense   (15)   (19)   (65)   (86)
Interest income   19    32    87    320 
Income from synthetic fuel investments   -    -    -    2,883 
(Loss) income from continuing operations before income taxes and non-controlling interests (2)  $(8,292)  $25,166   $(3,856)  $48,014 

(1)Includes results attributable to non-controlling interests of approximately 26% for One Earth, approximately 2.5% for NuGen in the fourth quarter of fiscal 2011 and approximately 1% for NuGen in fiscal 2012.
(2)Certain amounts differ from those previously reported as a result of certain sold real estate assets being reclassified as discontinued operations.

 

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

   Three Months
Ended		   Twelve Months
Ended		 
   January 31,   January 31, 
   2013   2012   2013   2012 
Average selling price per gallon of ethanol  $2.29   $2.45   $2.23   $2.49 
Average selling price per ton of dried distillers grains  $264.07   $199.65   $235.56   $196.46 
Average selling price per ton of modified distillers grains  $127.32   $93.42   $117.89   $93.42 
Average selling price per ton of wet distillers grains  $132.63   $56.85   $101.27   $58.17 
Average cost per bushel of grain  $7.68   $6.36   $7.14   $6.66 
Average cost of natural gas (per mmbtu)  $4.10   $5.18   $3.75   $4.88 

 

 

Segment Balance Sheet Data:

   January 31, 2013  January 31, 2012
Assets:              
Alternative energy    $337,857     $367,029 
Real estate     13,326      17,458 
Corporate     54,147      53,562 
Total assets    $405,330     $438,049 

 

- more -

 
REX American Resources Q4’ 12 Results, 3/28/13page 4

 

Supplemental Data Related to REX’s Alternative Energy Interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of January 31, 2013

(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) 110.0 74%   81.4  
NuGen Energy, LLC (Marion, SD) 112.0 99%   110.9  
Patriot Holdings, LLC (Annawan, IL) 117.7 27%   31.8  
Big River Resources West Burlington, LLC (West Burlington, IA) 96.4 10%   9.6  
Big River Resources Galva, LLC (Galva, IL) 104.2 10%   10.4  
Big River United Energy, LLC (Dyersville, IA) 103.7 5%   5.2  
Big River Resources Boyceville, LLC (Boyceville, WI) 56.5 10%   5.7  
Total 700.5 n/a   255.0  

 

About REX American Resources Corporation

REX American Resources has interests in seven ethanol production facilities which in aggregate shipped approximately 700 million gallons of ethanol over the twelve month period ended January 31, 2013. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended January 31, 2013) by the ethanol production facilities in which it has ownership interests was approximately 255 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 impact of legislative changes, the price volatility and availability of corn, dried and modified distillers grains, ethanol, corn oil, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, the effects of terrorism or acts of war, changes in real estate market conditions and the impact of Internal Revenue Service audits. 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

 

- statement of operations follow -

 
REX American Resources Q4’ 12 Results, 3/28/13   page 5

 

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, 
   2013   2012   2013   2012 
Net sales and revenue  $174,639   $170,465   $657,737   $409,923 
Cost of sales   177,208    149,996    644,201    375,921 
Gross (loss) profit   (2,569)    20,469    13,536    34,002 
Selling, general and administrative expenses   (3,779)    (3,933)    (12,545)    (10,377) 
Equity in (loss) income of unconsolidated ethanol affiliates   (877)    5,705    627    21,532 
Interest income   36    53    166    416 
Interest expense   (1,152)    (1,329)    (4,870)    (3,459) 
Loss on early termination of debt   -    -    -    (1) 
Other income   50    618    80    625 
Gain (loss) on disposal of real estate and property and equipment, net   3    -    (480)    - 
Bargain purchase gain, net of equity method re-measurement loss   -    3,541    -    3,541 
Income from synthetic fuel investments   -    -    -    2,883 
(Losses) gains on derivative financial instruments, net   (4)    42    (370)    (1,148) 
(Loss) income from continuing operations before income taxes and non-controlling interests   (8,292)    25,166    (3,856)    48,014 
Benefit (provision) for income taxes   2,898    (7,699)    1,639    (15,957) 
(Loss) income from continuing operations including non-controlling interests   (5,394)    17,467    (2,217)    32,057 
Income from discontinued operations, net of tax   93    315    500    1,206 
Gain on disposal of discontinued operations, net of tax   39    -    129    435 
Net (loss) income including non-controlling interests   (5,262)    17,782    (1,588)    33,698 
Net loss (income) attributable to non-controlling interests   819    (2,993)    (707)    (5,428) 
Net (loss) income attributable to REX common shareholders  $(4,443)   $14,789   $(2,295)   $28,270 
                     
Weighted average shares outstanding – basic   8,156    8,334    8,272    9,117 
                     
Basic (loss) income per share from continuing operations*  $(0.56)   $1.73   $(0.35)   $2.92 
Basic income per share from discontinued operations*   0.01    0.04    0.06    0.13 
Basic income per share on disposal of discontinued operations*   0.01    -    0.01    0.05 
Basic net (loss) income per share attributable to REX common shareholders  $(0.54)   $1.77   $(0.28)   $3.10 
                     
Weighted average shares outstanding – diluted   8,156    8,398    8,272    9,187 
                     
Diluted (loss) income per share from continuing operations*  $(0.56)   $1.72   $(0.35)   $2.90 
Diluted income per share from discontinued operations*   0.01    0.04    0.06    0.13 
Diluted income per share on disposal of discontinued operations*   0.01    -    0.01    0.05 
Diluted net (loss) income per share attributable to REX common shareholders  $(0.54)   $1.76   $(0.28)   $3.08 
Amounts attributable to REX common shareholders:                    
(Loss) income from continuing operations, net of tax  $(4,575)   $14,474   $(2,924)   $26,629 
Income from discontinued operations, net of tax   132    315    629    1,641 
Net (loss) income  $(4,443)   $14,789   $(2,295)   $28,270 

 

* Certain amounts differ from those previously reported as a result of certain real estate assets being reclassified as discontinued operations.
 

REX American Resources Q4’ 12 Results, 3/28/13   page 6

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheet

(in thousands) Unaudited

 

   January 31,   January 31, 
   2013   2012 
CURRENT ASSETS:          
Cash and cash equivalents  $69,073   $75,013 
Accounts receivable-net   11,567    12,784 
Inventory   24,919    30,349 
Refundable income taxes   1,347    1,816 
Prepaid expenses and other   4,091    3,987 
Deferred taxes-net   3,930    3,090 
Total current assets   114,927    127,039 
Property and equipment-net   223,180    240,084 
Other assets   6,761    7,884 
Equity method investments   59,959    61,679 
Restricted investments and deposits   503    1,363 
TOTAL ASSETS  $405,330   $438,049 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Current portion of long term debt  $15,623   $15,222 
Accounts payable –trade   4,655    6,985 
Deferred income   627    1,864 
Accrued real estate taxes   2,651    2,750 
Accrued payroll and related items   302    2,882 
Derivative financial instruments   1,859    1,694 
Other current liabilities   5,742    5,844 
Total current liabilities   31,459    37,241 
LONG TERM LIABILITIES:          
Long term debt   91,306    108,527 
Deferred taxes   7,141    4,642 
Deferred income   -    552 
Derivative financial instruments   930    2,541 
Other long term liabilities   211    2,703 
Total long term liabilities   99,588    118,965 
COMMITMENTS AND CONTINGENCIES EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   143,575    142,994 
Retained earnings   322,028    324,323 
Treasury stock, 21,701 and 21,523 shares, respectively   (219,550)   (215,105)
Total REX shareholders’ equity   246,352    252,511 
Non-controlling interests   27,931    29,332 
Total equity   274,283    281,843 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $405,330   $438,049 

 

- statement of cash flows follow -

 
REX American Resources Q4’ 12 Results, 3/28/13   page 7

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands) Unaudited

 

   Years Ended January 31, 
   2013   2012 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net (loss) income  $(1,588)   $33,698 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:           
Depreciation and amortization   16,602    12,086 
Impairment charges on real estate   562    1,227 
Income from equity method investments   (627)    (21,532) 
Dividends received from equity method investments   2,206    4,918 
Bargain purchase gain, net   -    (3,541) 
Income from synthetic fuel investments   -    (2,883) 
Derivative financial instruments   (1,446)    (1,288) 
Loss (gain) on disposal of real estate and property and equipment   357    (683) 
Deferred income   (1,789)    (3,982) 
Deferred income tax   (504)    14,667 
Changes in assets and liabilities, net of acquisition and deconsolidation:          
Accounts receivable   1,217    4,216 
Inventory   5,430    (14,039) 
Prepaid expenses and other assets   498    1,059 
Income taxes refundable   719    7,852 
Accounts payable-trade   (1,448)    1,191 
Other liabilities   (3,141)    1,930 
Net cash provided by operating activities   17,048    34,896 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (3,684)    (7,342) 
Proceeds from synthetic fuel investments   -    2,883 
Purchase of investments   -    (1,947) 
Acquisition of business, net of cash acquired   -    12,293 
Proceeds from sale of real estate and property and equipment   2,849    4,445 
Restricted investments   860    237 
Net cash provided by investing activities   25    10,569 
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payments of long term debt   (16,820)    (35,653) 
Loan          
Stock options exercised   265    362 
Payments for loan fees   -    (627) 
Payments to non-controlling interests holders   (2,085)     (2,084) 
Repayments of contingent consideration liability   -     (1,251) 
Treasury stock acquired   (4,373)    (22,218) 
Net cash used in financing activities   (23,013)    (61,471) 
NET DECREASE IN CASH AND CASH EQUIVALENTS   (5,940)    (16,006) 
CASH AND CASH EQUIVALENTS-Beginning of year   75,013    91,019 
CASH AND CASH EQUIVALENTS-End of year  $69,073   $75,013 

 

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