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Form 8-K REX AMERICAN RESOURCES For: Dec 01

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December 1, 2021 9:12 AM EST

Exhibit 99

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES REPORTS FISCAL 2021
THIRD QUARTER NET INCOME PER SHARE ATTRIBUTABLE TO
REX COMMON SHAREHOLDERS INCREASE OF 78% TO $2.56

 

Dayton, Ohio, (December 1, 2021) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 third quarter (“Q3 ’21”) ended October 31, 2021. 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’ Q3 ’21 results principally reflect its interests in six ethanol production facilities and its refined coal operation. The One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) ethanol production facilities are consolidated, as is the refined coal entity, 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 Q3 ’21 net sales and revenue were $203.1 million, compared with $124.2 million in Q3 ’20. The year-over-year net sales and revenue increase was primarily due to higher ethanol, distillers grains, and corn oil pricing. Reflecting the revenue growth, which was partially offset by increased costs in corn and natural gas, Q3 ’21 gross profit for the Company’s continuing operations increased to $25.2 million, compared with $18.9 million in Q3 ’20. As a result, the Company reported Q3 ’21 income before income taxes and non-controlling interests from continuing operations of $19.2 million, compared with $16.3 million in the comparable year ago period.

 

Net income attributable to REX shareholders in Q3 ’21 was $15.3 million, compared to $8.8 million in Q3 ’20. Q3 ’21 basic and diluted net income per share attributable to REX common shareholders was $2.56, compared to net income per share of $1.44 in Q3 ’20. Per share results in Q3 ’21 and Q3 ’20 are based on 5,963,000 and 6,143,000 diluted weighted average shares outstanding, respectively.

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased to report strong results for the fiscal third quarter and year to date, including earnings per share of $2.56 for the quarter and $5.16 for the nine months ended October 31, 2021. We experienced significantly improved pricing across all of our ethanol products, which more than offset higher input costs and which led to improved results.

 

-more-

   

REX American Resources Q3 ’21 Results, 12/1/2021 page 2

 

“We remain confident in our steadfast principles of ethanol production, which combined with our focus on efficiencies and the operational excellence of our plants continues to create additional value for our shareholders. I would like to again recognize the hard work and dedication of our employees as we navigated through the past 18 months.”

 

Balance Sheet

At October 31, 2021, REX had cash and cash equivalents and short-term investments of $219.0 million, $33.9 million of which was at the parent company, and $185.1 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2021, of $180.7 million, $48.2 million of which was at the parent company, and $132.5 million of which was at its consolidated ethanol production facilities.

 

During the fiscal third quarter ended October 31, 2021 the Company repurchased 66,792 shares of its common stock at a cost of $5.3 million. The Company is currently authorized to repurchase up to an additional 449,413 shares of common stock and has approximately 5,920,351 shares of common stock outstanding.

 

-more-

   

REX American Resources Q3 ’21 Results, 12/1/2021 page 3

 

The following table summarizes select data related to REX’s

consolidated alternative energy interests:

 

   Three Months
Ended
October 31,		  Nine Months
Ended
October 31,
   2021   2020   2021   2020 
Average selling price per gallon of ethanol  $2.31   $1.31   $2.12   $1.28 
Average selling price per ton of dried distillers grains  $184.85   $129.38   $200.02   $136.49 
Average selling price per pound of non-food grade corn oil  $0.59   $0.24   $0.47   $0.25 
Average selling price per ton of modified distillers grains  $92.10   $56.68   $83.97   $52.44 
Average cost per bushel of grain  $6.45   $3.28   $6.05   $3.57 
Average cost of natural gas (per MmBtu)  $4.58   $2.09   $3.69   $2.87 

 

Supplemental data related to REX’s ethanol interests:

 

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of October 31, 2021

(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

 137.9 75.8% 104.5

NuGen Energy, LLC

Marion, SD

 137.8 99.7% 137.4

Big River Resources West Burlington, LLC

West Burlington, IA

 110.3 10.3% 11.4

Big River Resources Galva, LLC

Galva, IL

 116.0 10.3% 11.9

Big River United Energy, LLC

Dyersville, IA

 125.3 5.7% 7.1

Big River Resources Boyceville, LLC

Boyceville, WI

 63.6 10.3% 6.6
Total 690.9 n/a 278.9

 

Third Quarter Conference Call

REX will host a conference call at 11:00 a.m. ET today. Senior management will discuss the quarterly financial results and 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, www.rexamerican.com. A webcast replay will be available for 30 days following the live event.

 

-more-

   

REX American Resources Q3 ’21 Results, 12/1/2021 page 4

 

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 October 31, 2021. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended October 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 279 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, gasoline and natural gas, ethanol and refined coal 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, 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
  [email protected]

 

- statements of operations follow -

   

REX American Resources Q3 ’21 Results, 12/1/2021 page 5

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

 

   Three Months
Ended
October 31,		  Nine Months
Ended
October 31,		 
   2021   2020   2021   2020 
Net sales and revenue  $203,066   $124,217   $562,786   $246,694 
Cost of sales   177,914    105,288    504,003    235,435 
Gross profit (loss)   25,152    18,929    58,783    11,259 
Selling, general and administrative expenses   (6,310)    (4,269)    (22,444)    (13,407) 
Equity in income (loss) of unconsolidated ethanol affiliates   349    1,152    2,763    168 
Interest and other income, net   35    537    117    1,403 
Income (loss) before income taxes and non-controlling interests   19,226    16,349    39,219    (577) 
(Provision) benefit for income taxes   (4,338)    (5,037)    (8,329)    444 
Net income (loss) from continuing operations including non-controlling interests   14,888    11,312    30,890    (133) 
Net income attributable to non-controlling interests (continuing operations)   (1,562)    (2,276)    (4,585)    (1,331) 
Net income (loss) attributable to REX common shareholders (continuing operations)   13,326    9,036    26,305    (1,464) 
                     
Net income (loss) from discontinued operations, net of tax   1,815    (253)    4,263    729 
                     
Net income attributable to noncontrolling interests (discontinued operations)   137    58    370    193 
Net income (loss) attributable to REX common shareholders (discontinued operations)   1,952    (195)    4,633    922 
                     
Net income (loss) attributable to REX common shareholders  $15,278   $8,841   $30,938   $(542) 
                     
Weighted average shares outstanding – basic and diluted   5,963    6,143    5,994    6,221 
                     
Basic and diluted net income (loss) per share from continuing operations attributable to REX common shareholders  $2.23   $1.47   $4.39   $(0.24) 
Basic and diluted net income (loss) per share from discontinued operations attributable to REX common shareholders   0.33    (0.03)    0.77    0.15 
Basic and diluted net income (loss) per share attributable to REX common shareholders  $2.56   $1.44   $5.16   $(0.09) 

 

- balance sheets follow -

 
REX American Resources Q3 ’21 Results, 12/1/21 page 6

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

ASSETS  October 31,
2021		   January 31,
2021		 
CURRENT ASSETS:          
Cash and cash equivalents  $197,395   $144,501 
Short-term investments   21,620    36,194 
Restricted cash   1,737    1,657 
Accounts receivable   40,026    19,713 
Inventory   29,753    37,426 
Refundable income taxes   5,930    6,020 
Prepaid expenses and other   10,389    12,751 
Current assets held for sale   392    488 
Total current assets   307,242    258,750 
Property and equipment-net   141,205    150,861 
Operating lease right-of-use assets   11,817    12,678 
Deferred taxes and other assets   33,190    25,275 
Equity method investment   30,715    29,456 
Assets held for sale   233    2,325 
TOTAL ASSETS  $524,402   $479,345 
LIABILITIES AND EQUITY          
CURRENT LIABILITIES:          
Accounts payable – trade  $27,133   $16,573 
Current operating lease liabilities   4,999    4,875 
Accrued expenses and other current liabilities   14,121    8,754 
Current liabilities held for sale   282    535 
Total current liabilities   46,535    30,737 
LONG TERM LIABILITIES:          
Deferred taxes   4,030    3,713 
Long-term operating lease liabilities   6,553    7,439 
Other long-term liabilities   2,581    273 
Total long-term liabilities   13,164    11,425 
COMMITMENTS AND CONTINGENCIES          
EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   149,299    149,110 
Retained earnings   620,924    589,986 
Treasury stock, 23,933 shares   (361,199)    (354,612) 
Total REX shareholders’ equity   409,323    384,783 
Non-controlling interests   55,380    52,400 
Total equity   464,703    437,183 
TOTAL LIABILITIES AND EQUITY  $524,402   $479,345 

 

- statements of cash flows follow -

 
REX American Resources Q3 ’21 Results, 12/1/21 page 7

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

   Nine Months Ended
October 31,		 
   2021   2020 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $35,153   $596 
Net income from discontinued operations, net of tax   4,263    729 
Net income (loss) from continuing operations   30,890    (133) 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:          
Depreciation   13,505    13,604 
Amortization of operating lease right-of-use assets   4,128    3,982 
Stock based compensation expense   1,100    122 
Income from equity method investments   (2,763)    (168) 
Dividends received from equity method investments   1,504    2,506 
Interest income from investments   (36)    (200) 
Deferred income tax   5,840    (356) 
Gain on disposal of property and equipment   (1)    (58) 
Changes in assets and liabilities:          
Accounts receivable   (20,313)    473 
Inventory   7,673    14,000 
Refundable income taxes   (332)    (130) 
Other assets   1,912    (611) 
Accounts payable-trade   10,916    (4,361) 
Other liabilities   2,776    (4,966) 
Net cash provided by operating activities from continuing operations   56,799    23,704 
Net cash used in operating activities from discontinued operations   (6,368)    (2,205) 
Net cash provided by operating activities   50,431    21,499 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (4,245)    (6,610) 
Purchases of short-term investments   (67,412)    (68,225) 
Sales of short-term investments   82,022    65,282 
Other   40    (474) 
Net cash provided by (used in) investing activities   10,405    (10,027) 
CASH FLOWS FROM FINANCING ACTIVITIES:          
Treasury stock acquired   (6,627)    (18,089) 
Payments to noncontrolling interests holders   (1,515)    (283) 
Net cash used in financing activities from continuing operations   (8,142)    (18,372) 
Net cash provided by financing activities from discontinued operations   280    88 
Net cash used in financing activities   (7,862)    (18,284) 
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   52,974    (6,812) 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period   146,158    180,771 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period  $199,132   $173,959 
Non-cash financing activities – Stock awards issued  $100   $240 
Non-cash financing activities – Stock awards accrued  $972   $- 
Non-cash investing activities – Accrued capital expenditures  $34   $198 
Right-of use assets acquired and liabilities incurred upon lease execution  $3,267   $1,863 

 

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