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): May 22, 2013
REX AMERICAN
RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
001-09097 |
31-1095548 |
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(State or other jurisdiction |
(Commission File No.) |
(IRS Employer Identification No.) |
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of incorporation) |
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2875 Needmore Road, Dayton, Ohio |
45414 |
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(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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. Results of Operations and Financial Condition |
On May 22, 2013, REX American Resources Corporation issued a press release announcing financial results for the three month period ended April 30, 2013. The press release is furnished as Exhibit 99 to this report.
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Item 9.01. Financial Statements and Exhibits |
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(c) |
Exhibits. The following exhibits are furnished with this report: |
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99 Press Release dated May 22, 2013 |
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SIGNATURES
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REX AMERICAN RESOURCES CORPORATION |
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Date: May 22, 2013 |
By: |
/s/ DOUGLAS L. BRUGGEMAN |
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Name: |
Douglas L. Bruggeman |
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Title: |
Vice President - Finance, |
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Chief Financial Officer |
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and Treasurer |
Exhibit 99
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News Announcement |
For Immediate Release |
REX AMERICAN RESOURCES FIRST QUARTER DILUTED EPS RISE 291%
TO $0.43 ON 18% REVENUE INCREASE TO $179 MILLION
Dayton, Ohio, (May 22, 2013) -- REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2013 first quarter (“Q1 ’13”). REX management will host a conference call and webcast today at 11:00 a.m. ET.
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Conference Call: |
(212) 231-2930 |
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Webcast / Replay URL: |
www.rexamerican.com/Corp/Page4.aspx |
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The webcast will be available for replay for 30 days |
REX American Resources’ Q1 ’13 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, while those of its five other plants are reported as equity in income of unconsolidated ethanol affiliates.
Reflecting improved ethanol crush spread margins since the beginning of calendar 2013 as well as higher year-over-year prices for ethanol and dried and modified distillers grains, Q1 ’13 net income attributable to REX shareholders rose 276% to $3.5 million, compared with $0.9 million in Q1 ’12, while Q1 ’13 diluted net income per share attributable to REX common shareholders rose 291% to $0.43, from $0.11 in Q1 ’12.
REX’s Q1 ’13 net sales and revenue rose 18% to $178.7 million, from $151.0 million in Q1 ’12. Q1 ’13 income from continuing operations attributable to REX shareholders net of tax was $3.3 million, or $0.40 per diluted share, compared with $0.8 million, or $0.09 per diluted share, in Q1 ’12. REX recorded income from discontinued operations net of tax, including gain on disposal of discontinued operations, of $0.2 million, or $0.03 per diluted share for Q1 ’13, compared with $0.2 million, or $0.02 per diluted share in Q1 ’12. Per share results in Q1 ’13 and Q1 ’12 are based on 8,200,000 and 8,439,000 diluted weighted average shares outstanding, respectively. The 2.8% reduction in the diluted shares outstanding principally reflects the Company’s ongoing open market share repurchase program partially offset by shares exercised pursuant to stock option grants.
With the benefit of the improved alternative energy industry environment, REX generated a consolidated gross profit of $9.1 million in Q1’ 13, compared with $5.5 million in Q1’ 12. In Q1 ’13, equity in income of unconsolidated ethanol affiliates rose to $1.6 million, compared with $0.4 million in Q1 ’12. REX’s Q1 ’13 income from continuing operations before income taxes and non-controlling interests was $5.9 million, compared with $1.9 million in Q1 ’12.
- more -
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REX American Resources Q1’ 13 Results, 5/22/13 |
page 2 |
REX CEO, Stuart Rose, commented, “The combination of an improved industry environment, our interests in state-of-the-art ethanol plants, and our operating discipline at both the plant and corporate level resulted in a strong start to fiscal 2013. Our portfolio of Fagen/ICM ethanol plants across the corn belt are efficiently producing ethanol, distillers grains and corn oil, and have positioned REX as one of the leading companies in the ethanol industry.
“Due to last year’s drought, both published and basis pricing for corn remains above historical levels. We consider our operating structure and financial model to be amongst the best in the industry, based on leading technology across our plants and the attractive valuations at which we acquired them and as reflected by the first quarter results, this model positions us to outperform the industry.”
Balance Sheet and Share Repurchase Program
At April
30, 2013, REX had cash and cash equivalents of $73.8 million, $48.4 million of
which was at the parent company and $25.4 million of which was at its
consolidated ethanol production facilities. This compares with cash and cash
equivalents of $69.1 million at January 31, 2013, $47.8 million of which was at
the parent and $21.3 million of which was at its consolidated ethanol
production facilities.
REX repurchased 30,859 shares of its common stock in open market transactions in Q1 ’13 at an average price per share of $18.28. The Company is currently authorized to repurchase up to an additional 370,598 shares of common stock. Taking into account all share repurchases to date, REX has 8,165,338 shares outstanding.
At April 30, 2013, REX had lease agreements, as landlord for six former retail store locations. REX has 10 owned former retail stores that were vacant at April 30, 2013, which it is marketing to either lease or sell. In addition, one former distribution center is partially occupied by the REX corporate office and partially vacant. The real estate segment revenue is primarily comprised of rental income derived from these sites.
- more -
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REX American Resources Q1’ 13 Results, 5/22/13 |
page 3 |
Segment Income Statement Data:
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($ in thousands) |
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Three Months |
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2013 |
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2012 |
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Net sales and revenue: |
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Alternative energy (1) |
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$ |
178,324 |
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$ |
150,664 |
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Real estate |
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423 |
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342 |
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Total net sales and revenue |
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$ |
178,747 |
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$ |
151,006 |
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Gross profit: |
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Alternative energy (1) |
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$9,026 |
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$5,510 |
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Real estate |
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71 |
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15 |
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Total gross profit |
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$9,097 |
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$5,525 |
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Segment profit (loss): |
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Alternative energy segment (1) |
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$6,626 |
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$2,469 |
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Real estate segment |
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8 |
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(60) |
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Corporate expense |
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(701) |
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(548) |
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Interest expense |
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(14) |
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(18) |
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Interest income |
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18 |
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29 |
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Income from continuing operations before income taxes and noncontrolling interests |
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$5,937 |
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$1,872 |
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(1) Includes results attributable to non-controlling interests of approximately 26% for One Earth, and approximately 1% for NuGen.
The following table summarizes select data related to the Company’s consolidated alternative energy interests:
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Three Months Ended |
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2013 |
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2012 |
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Average selling price per gallon of ethanol |
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$ |
2.33 |
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$ |
2.14 |
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Average selling price per ton of dried distillers grains |
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$ |
264.59 |
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$ |
197.82 |
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Average selling price per ton of modified distillers grains |
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$ |
131.65 |
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$ |
95.75 |
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Average cost per bushel of grain |
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$ |
7.44 |
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$ |
6.42 |
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Average cost of natural gas (per mmbtu) |
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$ |
4.29 |
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$ |
4.10 |
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Segment Balance Sheet Data:
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April 30, 2013 |
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January 31, 2013 |
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Assets: |
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Alternative energy |
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$ |
341,863 |
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$ |
337,857 |
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Real estate |
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12,271 |
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13,326 |
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Corporate |
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52,436 |
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54,147 |
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Total assets |
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$ |
406,570 |
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$ |
405,330 |
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- more -
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REX American Resources Q1’ 13 Results, 5/22/13 |
page 4 |
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REX American Resources Corporation |
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Entity |
Trailing |
Current REX |
REX’s Current Effective |
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One Earth Energy, LLC (Gibson City, IL) |
112.1 |
74% |
83.0 |
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NuGen Energy, LLC (Marion, SD) |
111.7 |
99% |
110.6 |
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Patriot Holdings, LLC (Annawan, IL) |
116.1 |
27% |
31.3 |
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Big River Resources West
Burlington, LLC |
93.7 |
10% |
9.4 |
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Big River Resources Galva, LLC (Galva, IL) |
99.7 |
10% |
10.0 |
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Big River United Energy, LLC (Dyersville, IA) |
102.8 |
5% |
5.1 |
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Big River Resources
Boyceville, LLC |
55.2 |
10% |
5.5 |
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Total |
691.3 |
n/a |
254.9 |
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.
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Contact: |
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Douglas Bruggeman |
Joseph Jaffoni, Norberto Aja |
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Chief Financial Officer |
JCIR |
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(937) 276-3931 |
(212) 835-8500 |
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rex@jcir.com |
- statement of operations follow -
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REX American Resources Q1’ 13 Results, 5/22/13 |
page 5 |
REX AMERICAN RESOURCES
CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited
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Three Months Ended |
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2013 |
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2012* |
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Net sales and revenue |
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$ |
178,747 |
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$ |
151,006 |
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Cost of sales |
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169,650 |
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145,481 |
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Gross profit |
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9,097 |
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5,525 |
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Selling, general and administrative expenses |
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(3,746) |
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(2,710) |
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Equity in income of unconsolidated ethanol affiliates |
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1,599 |
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442 |
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Interest income |
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25 |
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36 |
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Interest expense |
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(1,059) |
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(1,276) |
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Other income |
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17 |
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2 |
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Gains (losses) on derivative financial instruments, net |
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4 |
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(147) |
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Income from continuing operations before income taxes |
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5,937 |
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1,872 |
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Provision for income taxes |
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(2,104) |
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(541) |
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Income from continuing operations |
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3,833 |
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1,331 |
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Income from discontinued operations, net of tax |
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109 |
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169 |
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Gain (loss) on disposal of discontinued operations, net of tax |
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131 |
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(8) |
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Net income |
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4,073 |
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1,492 |
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Net income attributable to noncontrolling interests |
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(566) |
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(559) |
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Net income attributable to REX common shareholders |
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$ |
3,507 |
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$ |
933 |
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Weighted average shares outstanding - basic |
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8,158 |
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8,360 |
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Basic
income per share from continuing operations attributable to |
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$ |
0.40 |
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$ |
0.09 |
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Basic
income per share from discontinued operations attributable |
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0.01 |
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0.02 |
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Basic
income per share from disposal of discontinued operations |
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0.02 |
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- |
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Basic
net income per share attributable to REX common |
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$ |
0.43 |
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$ |
0.11 |
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Weighted average shares outstanding - diluted |
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8,200 |
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8,439 |
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Diluted
income per share from continuing operations attributable |
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$ |
0.40 |
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$ |
0.09 |
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Diluted
income per share from discontinued operations |
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0.01 |
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0.02 |
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Diluted
income per share from disposal of discontinued |
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0 .02 |
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- |
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Diluted
net income per share attributable to REX common |
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$ |
0.43 |
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$ |
0.11 |
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Amounts attributable to REX common shareholders: |
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Income from continuing operations, net of tax |
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$3,267 |
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$772 |
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Income from discontinued operations, net of tax |
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240 |
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161 |
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Net income |
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$3,507 |
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$933 |
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* Certain amounts differ from those previously reported as a result of certain real estate assets being reclassified as discontinued operations.
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REX American Resources Q1’ 13 Results, 5/22/13 |
page 6 |
REX AMERICAN RESOURCES
CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
(in thousands) Unaudited
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April 30, |
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January 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
73,771 |
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$ |
69,073 |
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Accounts receivable |
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17,918 |
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11,567 |
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Inventories |
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21,185 |
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24,919 |
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Refundable income taxes |
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1,284 |
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1,347 |
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Prepaid expenses and other |
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3,998 |
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4,091 |
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Deferred taxes, net |
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1,843 |
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3,930 |
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Total current assets |
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119,999 |
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114,927 |
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Property and equipment, net |
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218,828 |
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223,180 |
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Other assets |
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5,917 |
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6,761 |
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Equity method investments |
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61,323 |
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59,959 |
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Restricted investments and deposits |
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503 |
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503 |
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Total assets |
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$ |
406,570 |
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$ |
405,330 |
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Liabilities and equity: |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
15,595 |
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$ |
15,623 |
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Accounts payable, trade |
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6,919 |
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4,655 |
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Deferred income |
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353 |
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627 |
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Accrued real estate taxes |
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2,874 |
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2,651 |
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Accrued payroll and related items |
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639 |
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302 |
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Derivative financial instruments |
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1,759 |
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|
1,859 |
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Other current liabilities |
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5,198 |
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5,742 |
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Total current liabilities |
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33,337 |
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|
31,459 |
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Long-term liabilities: |
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Long-term debt |
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87,133 |
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|
91,306 |
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Deferred taxes |
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|
7,154 |
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|
7,141 |
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Derivative financial instruments |
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|
586 |
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|
930 |
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Other long-term liabilities |
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- |
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211 |
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Total long-term liabilities |
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94,873 |
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|
99,588 |
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Equity: |
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REX shareholders’ equity: |
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Common stock |
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299 |
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299 |
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Paid-in capital |
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143,705 |
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143,575 |
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Retained earnings |
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325,535 |
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322,028 |
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Treasury stock |
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(219,676) |
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(219,550) |
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Total REX shareholders’ equity |
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249,863 |
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|
246,352 |
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Noncontrolling interests |
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|
28,497 |
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27,931 |
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|
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Total equity |
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278,360 |
|
|
274,283 |
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|
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|
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Total liabilities and equity |
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$ |
406,570 |
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$ |
405,330 |
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|
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- statement of cash flows follow -
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REX American Resources Q1’ 13 Results, 5/22/13 |
page 7 |
REX AMERICAN RESOURCES
CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands) Unaudited
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Three Months Ended |
|
||||
|
|
|
2013 |
|
2012 |
|
||
|
|
|
|
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income including noncontrolling interests |
|
$ |
4,073 |
|
$ |
1,492 |
|
|
Adjustments
to reconcile net income to net cash provided by |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,391 |
|
|
4,021 |
|
|
Income from equity method investments |
|
|
(1,599) |
|
|
(442) |
|
|
(Gain) loss on disposal of real estate and property and equipment |
|
|
(4) |
|
|
16 |
|
|
Dividends received from equity method investees |
|
|
200 |
|
|
2,005 |
|
|
Deferred income |
|
|
(274) |
|
|
(590) |
|
|
Derivative financial instruments |
|
|
(444) |
|
|
(336) |
|
|
Deferred income tax |
|
|
2,026 |
|
|
- |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(6,351) |
|
|
(2,241) |
|
|
Inventory |
|
|
3,734 |
|
|
4,724 |
|
|
Refundable income taxes |
|
|
150 |
|
|
552 |
|
|
Other assets |
|
|
828 |
|
|
296 |
|
|
Accounts payable, trade |
|
|
2,264 |
|
|
(996) |
|
|
Other liabilities |
|
|
(195) |
|
|
(3,525) |
|
|
|
|
|
|
||||
|
Net cash provided by operating activities |
|
|
8,799 |
|
|
4,976 |
|
|
|
|
|
|
||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(32) |
|
|
(1,683) |
|
|
Restricted investments |
|
|
- |
|
|
360 |
|
|
Proceeds from sale of real estate and property and equipment |
|
|
141 |
|
|
478 |
|
|
|
|
|
|
||||
|
Net cash provided by (used in) investing activities |
|
|
109 |
|
|
(845) |
|
|
|
|
|
|
||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Payments of long-term debt |
|
|
(4,201) |
|
|
(6,813) |
|
|
Stock options exercised |
|
|
555 |
|
|
259 |
|
|
Noncontrolling interests distribution and other |
|
|
- |
|
|
(526) |
|
|
Treasury stock acquired |
|
|
(564) |
|
|
- |
|
|
|
|
|
|
||||
|
Net cash used in financing activities |
|
|
(4,210) |
|
|
(7,080) |
|
|
|
|
|
|
||||
|
Net increase (decrease) in cash and cash equivalents |
|
|
4,698 |
|
|
(2,949) |
|
|
Cash and cash equivalents, beginning of period |
|
|
69,073 |
|
|
75,013 |
|
|
|
|
|
|
||||
|
Cash and cash equivalents, end of period |
|
$ |
73,771 |
|
$ |
72,064 |
|
|
|
|
|
|
||||
# # #