REX American Resources Reports Fiscal 2022 Fourth Quarter Net Income Per Share Attributable to Rex Common Shareholders Of $0.47

REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2022 fourth quarter (“Q4 ‘22”) ended January 31, 2023. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

212/231-2904

Webcast / Replay URL:

www.rexamerican.com

 

The webcast will be available for replay for 30 days.

REX American Resources’ Q4 ‘22 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. 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 Q4 ‘22 net sales and revenue were $200.2 million, compared with $212.0 million in Q4 ‘21. The year-over-year net sales and revenue decrease primarily reflects a decrease in the quantities sold of ethanol, dried distillers grains and modified distillers grains. Q4 ‘22 gross profit for the Company’s continuing operations was $14.9 million, compared with $38.8 million in Q4 ‘21 reflecting increases in corn and natural gas prices. This led to Q4 ‘22 income before income taxes and non-controlling interests of $13.3 million, compared with $36.6 million in the comparable year ago period.

Net income attributable to REX shareholders from continuing operations in Q4 ‘22 was $8.2 million, compared to $21.3 million in Q4 ‘21. Q4 ‘22 basic and diluted net income per share attributable to REX common shareholders from continuing operations was $0.47, compared to $1.19 per share in Q4 ‘21. Per share results for Q4 ‘22 and Q4 ‘21 are based on 17,416,000 and 17,818,000 diluted weighted average shares outstanding, respectively, reflecting the Company’s 3-for-1 common stock split effected August 5, 2022.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “In the fourth quarter, we saw a continuation of the difficult operating environment we faced throughout much of fiscal 2022, including year-over-year price increases in corn and natural gas of 22% and 12%, respectively, as well as weather-related disruptions. Given these challenges, we are pleased with our performance in the fourth quarter and full year, with earnings per share of $0.47 and $1.57, respectively. Our results demonstrate the resiliency of our operating model, our operational efficiency, and the effectiveness of our plant operations teams.

“We exited fiscal 2022 with a robust liquidity position, with approximately $281 million in cash and short-term investments and no debt. Thanks to our healthy financial foundation, we are well positioned to continue to strategically invest in the efficiency and capacity of our plants while pursuing and progressing against our carbon capture and sequestration initiatives.

“Looking ahead, we are excited by the many opportunities in front of us and remain confident in the value proposition that ethanol brings to consumers and the environment. We are also encouraged by the potentially compelling financial benefits of our carbon capture and sequestration initiatives on the back of the recently enacted Inflation Reduction Act and believe our efforts will yield significant financial benefits for our employees, partners and shareholders.”

Balance Sheet

As of January 31, 2023, REX had cash and cash equivalents and short-term investments 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. This compares with cash, cash equivalents and short-term investments at January 31, 2022, of $255.7 million, $42.9 million of which was at the parent company, and $212.8 million of which was at its consolidated ethanol production facilities.

The following table summarizes select data related to REX’s

consolidated alternative energy interests:

Three Months Ended Twelve Months Ended
January 31, January 31,

 

2023

 

2022

 

2023

 

2022

Average selling price per gallon of ethanol

$

2.31

$

2.36

$

2.44

$

2.21

Average selling price per ton of dried distillers grains

$

234.39

$

192.20

$

232.98

$

197.86

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

$

0.75

$

0.60

$

0.71

$

0.50

Average selling price per ton of modified distillers grains

$

139.84

$

89.99

$

123.66

$

85.19

Average cost per bushel of grain

$

7.10

$

5.83

$

7.24

$

5.99

Average cost of natural gas (per MmBtu)

$

6.57

$

5.85

$

6.66

$

4.27

Fourth 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 212/231-2904 (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 691 million gallons of ethanol over the twelve-month period ended January 31, 2023. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2023) by the ethanol production facilities in which it has ownership interests was approximately 271 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, 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.

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,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net sales and revenue

$

200,167

 

$

212,016

 

$

855,000

 

$

774,802

 

Cost of sales

 

185,268

 

 

173,239

 

 

800,269

 

 

677,242

 

Gross profit

 

14,899

 

 

38,777

 

 

54,731

 

 

97,560

 

Selling, general and administrative expenses

 

(6,719

)

 

(6,032

)

 

(28,956

)

 

(28,476

)

Equity in income of unconsolidated ethanol affiliates

 

2,535

 

 

3,861

 

 

8,745

 

 

6,624

 

Interest and other income, net

 

2,621

 

 

13

 

 

12,959

 

 

130

 

Income before income taxes and noncontrolling interests

 

13,336

 

 

36,619

 

 

47,479

 

 

75,838

 

Provision for income taxes

 

(2,168

)

 

(10,702

)

 

(9,542

)

 

(19,031

)

Net income from continuing operations

 

11,168

 

 

25,917

 

 

37,937

 

 

56,807

 

Net income attributable to noncontrolling interests (continuing operations)

 

(3,007

)

 

(4,650

)

 

(10,240

)

 

(9,235

)

Net income attributable to REX common shareholders (continuing operations)

 

8,161

 

 

21,267

 

 

27,697

 

 

47,572

 

 
Net income from discontinued operations, net of tax

 

-

 

 

132

 

 

-

 

 

4,395

 

Net loss attributable to noncontrolling interests (discontinued operations)

 

-

 

 

27

 

 

-

 

 

397

 

Net income attributable to REX common shareholders (discontinued operations)

 

-

 

 

159

 

 

-

 

 

4,792

 

 
Net income attributable to REX common shareholders

$

8,161

 

$

21,426

 

$

27,697

 

$

52,364

 

 
Weighted average shares outstanding - basic and diluted

 

17,416

 

 

17,818

 

 

17,638

 

 

17,946

 

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

$

0.47

 

$

1.19

 

$

1.57

 

$

2.65

 

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

 

-

 

 

0.01

 

 

-

 

 

0.27

 

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

$

0.47

 

$

1.20

 

$

1.57

 

$

2.92

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

January 31, January 31,
ASSETS:

 

2023

 

 

2022

 

CURRENT ASSETS:
Cash and cash equivalents

$

69,612

 

$

229,846

 

Short-term investments

 

211,331

 

 

25,877

 

Restricted cash

 

1,735

 

 

2,222

 

Accounts receivable

 

25,162

 

 

25,821

 

Inventory

 

48,744

 

 

42,225

 

Refundable income taxes

 

2,962

 

 

6,677

 

Prepaid expenses and other

 

13,098

 

 

12,499

 

Total current assets

 

372,644

 

 

345,167

 

Property and equipment, net

 

135,497

 

 

137,554

 

Operating lease right-of-use assets

 

15,214

 

 

11,221

 

Deferred taxes and other assets

 

23,179

 

 

25,853

 

Equity method investment

 

33,045

 

 

30,566

 

TOTAL ASSETS

$

579,579

 

$

550,361

 

LIABILITIES AND EQUITY:
CURRENT LIABILITIES:
Accounts payable - trade

$

34,091

 

$

32,266

 

Current operating lease liabilities

 

5,180

 

 

4,600

 

Accrued expenses and other current liabilities

 

15,328

 

 

13,617

 

Total current liabilities

 

54,599

 

 

50,483

 

LONG-TERM LIABILITIES:
Deferred taxes

 

1,097

 

 

3,132

 

Long-term operating lease liabilities

 

9,855

 

 

6,390

 

Other long-term liabilities

 

3,034

 

 

2,794

 

Total long-term liabilities

 

13,986

 

 

12,316

 

EQUITY:
REX shareholders' equity:
Common stock

 

299

 

 

299

 

Paid-in capital

 

578

 

 

-

 

Retained earnings

 

640,826

 

 

611,607

 

Treasury stock

 

(193,721

)

 

(181,114

)

Total REX shareholders' equity

 

447,982

 

 

430,792

 

Noncontrolling interests

 

63,012

 

 

56,770

 

Total equity

 

510,994

 

 

487,562

 

TOTAL LIABILITIES AND EQUITY

$

579,579

 

$

550,361

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

Twelve Months Ended
January 31,

 

2023

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES
Net income including noncontrolling interests

$

37,937

 

$

61,202

 

Net income from discontinued operations, net of tax

 

-

 

 

4,395

 

Net income from continuing operations

 

37,937

 

 

56,807

 

Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation

 

17,976

 

 

18,031

 

Amortization of operating lease right-of-use assets

 

5,328

 

 

5,560

 

Income from equity method investments

 

(8,745

)

 

(6,624

)

Dividends received from equity method investments

 

6,266

 

 

5,514

 

Interest income from investments

 

(2,839

)

 

(43

)

Deferred income taxes

 

915

 

 

12,730

 

Stock based compensation expense

 

1,930

 

 

1,753

 

(Gain) loss on sale of property and equipment - net

 

(102

)

 

30

 

Changes in assets and liabilities:
Accounts receivable

 

659

 

 

(6,108

)

Inventories

 

(6,519

)

 

(4,799

)

Income taxes refundable

 

3,715

 

 

(1,103

)

Other assets

 

(452

)

 

199

 

Accounts payable - trade

 

1,478

 

 

16,005

 

Other liabilities

 

(2,752

)

 

475

 

Net cash provided by operating activities from continuing operations

 

54,795

 

 

98,427

 

Net cash used in operating activities from discontinued operations

 

-

 

 

(6,716

)

Net cash provided by operating activities

 

54,795

 

 

91,711

 

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures

 

(15,578

)

 

(5,126

)

Purchase of short-term investments

 

(399,350

)

 

(88,949

)

Sale of short-term investments

 

216,735

 

 

99,309

 

Deposits

 

(319

)

 

-

 

Other

 

5

 

 

60

 

Net cash (used in) provided by investing activities

 

(198,507

)

 

5,294

 

CASH FLOWS FROM FINANCING ACTIVITIES:
Treasury stock acquired

 

(13,012

)

 

(6,627

)

Payments to noncontrolling interests holders

 

(3,997

)

 

(4,772

)

Net cash used in financing activities from continuing operations

 

(17,009

)

 

(11,399

)

Net cash provided by financing activities from discontinued operations

 

-

 

 

304

 

Net cash used in financing activities

 

(17,009

)

 

(11,095

)

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

 

(160,721

)

 

85,910

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of year

 

232,068

 

 

146,158

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of year

$

71,347

 

$

232,068

 

 
Non-cash financing activities - Stock awards accrued

$

965

 

$

1,580

 

Non-cash financing activities - Stock awards issued

$

1,539

 

$

100

 

Non-cash investing activities - Accrued capital expenditures

$

425

 

$

78

 

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

$

9,321

 

$

4,103

 

 

Contacts

Douglas Bruggeman

Chief Financial Officer

(937) 276‑3931

Joseph Jaffoni, Norberto Aja

JCIR

835-8500 / rex@jcir.com

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