View:
Download DOC
Download PDF
Download XLS

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, 2017

 

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
(Address of principal executive offices)		   45459
(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))

 

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     o

 

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.     o

 
 Item 2.02.   Results of Operations and Financial Condition

 

On August 30, 2017, REX American Resources Corporation issued a press release announcing financial results for the three month period ended July 31, 2017. 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, 2017
 

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, 2017 By: /s/ DOUGLAS L. BRUGGEMAN
     
       
    Name:   Douglas L. Bruggeman
    Title:   Vice President - Finance,
      Chief Financial Officer
      and Treasurer
 

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES REPORTS

SECOND QUARTER DILUTED EPS OF $0.45

 

Dayton, Ohio, (August 30, 2017) -- REX American Resources Corporation (NYSE American: REX) today reported financial results for its fiscal 2017 second quarter (“Q2 ’17”) ended July 31, 2017. REX management will host a conference call and webcast today at 11:00 a.m. ET to review the results.

 

Conference Call: (303) 223-2685
   
Webcast / Replay URL: www.rexamerican.com/Corp/Page4.aspx
   
  The webcast will be available for replay for 30 days

 

REX American Resources’ Q2 ’17 results principally reflect its interests in six ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated, while those of its four remaining plants are reported as equity in income of unconsolidated ethanol affiliates.

 

REX’s Q2 ’17 net sales and revenue decreased 6.0% to $108.7 million, compared with $115.7 million in Q2 ’16, primarily reflecting 29.2% decline in the average sales price per ton of dried distillers grains as well as a 2.7% decrease in the average sales price per gallon of ethanol. This led to a decrease in gross profit of 37.6% to $10.8 million, compared to $17.3 million during the prior year period.

 

Equity in income of unconsolidated ethanol affiliates in Q2 ’17 decreased to $0.1 million, from $1.2 million in Q2 ’16. As a result, income from continuing operations before income taxes and non-controlling interests in Q2 ’17 decreased 52.2% to $6.5 million, compared with $13.5 million in Q2 ’16.

 

Net income attributable to REX shareholders in Q2 ’17 was $2.9 million, compared with $8.2 million in Q2 ’16, while Q2 ’17 diluted net income per share attributable to REX common shareholders was $0.45 per share, compared to $1.24 per share in Q2 ’16. Per share results in Q2 ’17 and Q2 ’16 are based on 6,593,000 and 6,586,000 diluted weighted average shares outstanding, respectively.

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “The second quarter presented a challenging operating environment as both ethanol and distillers grains prices experienced declines, which was partially offset by more favorable corn prices. In spite of these challenges, we were able to generate over $2.9 million of net income to REX shareholders, or $0.45 earnings per share, reflecting our disciplined operating approach and the commitment of our entire team.”

 

-more-

 
REX American Resources Q2’ 17 Results, 8/30/17 page 2

 

Balance Sheet and Capital Allocation

On August 10, 2017, REX, through a 95.35% owned subsidiary, purchased 100% of a refined coal facility for $12 million in cash (excluding transaction costs) in a transaction that is expected to be immediately accretive to REX’s earnings per share. The facility is in operation and will be included in REX’s financial results beginning in the third quarter of fiscal 2017. REX expects that the revenues from the sale of refined coal produced in the facility will be subsidized by federal production tax credits, subject to meeting qualified emissions reductions as governed by Section 45 of the Internal Revenue Code.

 

At July 31, 2017, REX had cash and cash equivalents of $186.0 million, $76.2 million of which was at the parent company and $109.8 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $188.6 million at January 31, 2017, $79.5 million of which was at the parent company and $109.1 million of which was at its consolidated ethanol production facilities.

 

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

   Three Months
Ended July 31,		   Six Months
Ended July 31,		 
   2017   2016   2017   2016 
Average selling price per gallon of ethanol  $1.45   $1.49   $1.45   $1.41 
Average selling price per ton of dried distillers grains  $95.39   $134.81   $97.81   $130.12 
Average selling price per pound of non-food grade corn oil  $0.29   $0.29   $0.28   $0.27 
Average selling price per ton of modified distillers grains  $41.00   $56.60   $41.47   $58.54 
Average cost per bushel of grain  $3.38   $3.73   $3.47   $3.63 
Average cost of natural gas (per mmbtu)  $3.30   $2.71   $3.52   $2.96 

 

Supplemental Data Related to REX’s Alternative Energy Interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of July 31, 2017
(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)		   120.5    75.0%   90.4 
NuGen Energy, LLC
(Marion, SD)		   131.4    99.5%   130.7 
Big River Resources West Burlington, LLC
(West Burlington, IA)		   107.1    9.7%   10.4 
Big River Resources Galva, LLC
(Galva, IL)		   123.7    9.7%   12.0 
Big River United Energy, LLC
(Dyersville, IA)		   129.2    5.4%   7.0 
Big River Resources Boyceville, LLC
(Boyceville, WI)		   57.2    9.7%   5.5 
Total   669.1    n/a   256.0 

 

-more-

 
REX American Resources Q2’ 17 Results, 8/30/17 page 3

 

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 669 million gallons of ethanol over the twelve month period ended July 31, 2017. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended July 31, 2017) by the ethanol production facilities in which it has ownership interests was approximately 256 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 international, national or regional economies, weather, results of income tax audits, changes in income tax laws or regulations 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

 

- statements of operations follow -

 
REX American Resources Q2’ 17 Results, 8/30/17 page 4

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

 

   Three Months
Ended		   Six Months
Ended		 
   July 31,   July 31, 
   2017   2016   2017   2016 
                 
Net sales and revenue  $108,744   $115,707   $221,887   $215,929 
Cost of sales   97,963    98,423    198,617    190,223 
Gross profit   10,781    17,284    23,270    25,706 
Selling, general and administrative expenses   (4,779)   (5,206)   (10,181)   (9,233)
Equity in income of unconsolidated ethanol affiliates   137    1,186    837    1,419 
(Loss) gain on sale of investment   (13)   -    (13)   192 
Gain on disposal of property and equipment, net   13    185    13    185 
Interest and other income   334    97    549    257 
Income before income taxes   6,473    13,546    14,475    18,526 
Provision for income taxes   (2,302)   (4,517)   (4,692)   (6,031)
Net income   4,171    9,029    9,783    12,495 
Net income attributable to non-controlling interests   (1,230)   (853)   (2,298)   (1,481)
Net income attributable to REX common shareholders  $2,941   $8,176   $7,485   $11,014 
                     
Weighted average shares outstanding – basic and diluted   6,593    6,586    6,592    6,590 
                     
Basic and diluted net income per share attributable to REX common shareholders   $0.45    $1.24    $1.14    $1.67 

 

- balance sheet follows -

 
REX American Resources Q2’ 17 Results, 8/30/17 page 5

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands) Unaudited

 

ASSETS:  July 31,
2017		   January 31,
2017		 
CURRENT ASSETS:          
Cash and cash equivalents  $185,997   $188,576 
Restricted cash   379    130 
Accounts receivable   10,938    11,901 
Inventory   22,091    17,057 
Refundable income taxes   1,527    1,070 
Prepaid expenses and other   7,535    6,959 
Deferred taxes-net   -    824 
Total current assets   228,467    226,517 
Property and equipment-net   187,545    182,761 
Other assets   6,720    6,913 
Equity method investments   36,665    37,833 
TOTAL ASSETS  $459,397   $454,024 
LIABILITIES AND EQUITY          
CURRENT LIABILITIES:          
Accounts payable – trade  $11,251   $9,171 
Accrued expenses and other current liabilities   7,442    13,348 
Total current liabilities   18,693    22,519 
LONG TERM LIABILITIES:          
Deferred taxes   40,848    41,135 
Other long term liabilities   2,260    2,096 
Total long term liabilities   43,108    43,231 
COMMITMENTS AND CONTINGENCIES          
EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   146,851    145,767 
Retained earnings   515,692    508,207 
Treasury stock, 23,287 and 23,292 shares   (313,658)   (313,838)
Total REX shareholders’ equity   349,184    340,435 
Non-controlling interests   48,412    47,839 
Total equity   397,596    388,274 
TOTAL LIABILITIES AND EQUITY  $459,397   $454,024 

 

- statements of cash flows follow -

 
REX American Resources Q2’ 17 Results, 8/30/17 page 6

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands) Unaudited

 

   Six Months Ended
July 31,		 
   2017   2016 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $9,783   $12,495 
Adjustments to reconcile net income to net cash          
provided by operating activities:          
Depreciation and amortization   9,955    9,748 
Income from equity method investments   (837)   (1,419)
Dividends received from equity method investments   2,005    1,504 
Gain on disposal of property and equipment   (13)   (185)
Loss (gain) on sale of investment   13    (192)
Deferred income tax   537    - 
Stock based compensation expense   350    40 
Changes in assets and liabilities:          
Accounts receivable   886    (4,250)
Inventories   (5,034)   (6,455)
Other assets   (953)   2,989 
Accounts payable-trade   1,678    (3,087)
Other liabilities   (4,828)   169 
Net cash provided by operating activities   13,542    11,357 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (14,366)   (9,334)
Restricted cash   (249)   (56)
Restricted investments and deposits   100    409 
Proceeds from sale of investment   64    2,275 
Proceeds from sale of property and equipment   42    1,028 
Other   13    12 
Net cash used in investing activities   (14,396)   (5,666)
CASH FLOWS FROM FINANCING ACTIVITIES:          
Dividend payments to and purchases of stock from non-controlling interests   (1,725)   (2,096)
Treasury stock acquired   -    (4,709)
Net cash used in financing activities   (1,725)   (6,805)
NET DECREASE IN CASH AND CASH EQUIVALENTS   (2,579)   (1,114)
CASH AND CASH EQUIVALENTS-Beginning of period   188,576    135,765 
CASH AND CASH EQUIVALENTS-End of period  $185,997   $134,651 
Non cash investing activities – Accrued capital expenditures  $744   $1,350 
Non cash financing activities – Stock awards accrued  $281   $- 
Non cash financing activities – Stock awards issued  $1,195   $1,095 

 

# # #