REX American Resources’ First Quarter Diluted EPS Rises 61% to $0.69
REX American Resources Corporation (NYSE: REX) today reported financial
results for its fiscal 2017 first quarter (“Q1 ‘17”) ended April 30,
2017. REX management will host a conference call and webcast today at
11:00 a.m. ET to review the results.
REX American Resources’ Q1 ‘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 Q1 ‘17 net sales and revenue grew 12.9% to $113.1 million,
compared with $100.0 million in Q1 ‘16, primarily reflecting a 9.1%
increase in the average sales price per gallon of ethanol as well as
REX’s initiatives to increase plant-level production. These were
partially offset by the decline in distillers grains and modified
distillers grains prices. Gross profit increased 48.3% to $12.5 million,
compared to $8.4 million during the prior year period, primarily
reflecting improved crushed spread margins offset by lower distillers
grains pricing.
Equity in income of unconsolidated ethanol affiliates in Q1 ‘17
increased to $0.7 million, from $0.2 million in Q1 ’16, primarily as a
result of the more favorable ethanol crush spread margins during the
quarter. As a result, income from continuing operations before income
taxes and non-controlling interests in Q1 ‘17 grew 60.7% to $8.0
million, compared with $5.0 million in Q1 ‘16.
Net income attributable to REX shareholders in Q1 ‘17 was $4.5 million,
compared with $2.8 million in Q1 ‘16, while Q1 ‘17 diluted net income
per share attributable to REX common shareholders increased 60.5% to
$0.69 per share, compared to $0.43 per share in Q1 ‘16. Per share
results in Q1 ‘17 and Q1 ‘16 are based on 6,593,000 and 6,594,000
diluted weighted average shares outstanding, respectively.
REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented,
“We achieved both top and bottom-line growth in the first quarter,
compared to the prior year’s first quarter, highlighting our disciplined
approach to ensure operating excellence throughout the organization. Our
operating strategies led to significant year over year growth across key
financial metrics, including gross profit, net income, diluted earnings
per share and operating cash flow generation. We are particularly
pleased with the early success of efforts to increase production at our
plants, as reflected in the nearly 8% increase in ethanol gallons sold
during the period, compared to last year’s first quarter.”
Balance Sheet and Share Repurchase Program
At April 30, 2017, REX had cash and cash equivalents of $191.5 million,
$76.5 million of which was at the parent company and $115.0 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 $109.1
million of which was at its consolidated ethanol production facilities.
The Company is currently authorized to repurchase up to an additional
155,334 shares of common stock and has 6,558,679 shares outstanding.
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The following table summarizes select data related to the
Company’s consolidated alternative energy interests:
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Three Months Ended April 30,
|
|
|
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2017
|
|
|
2016
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Average selling price per gallon of ethanol
|
|
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$
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1.44
|
|
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$
|
1.32
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Average selling price per ton of dried distillers grains
|
|
|
$
|
100.06
|
|
|
$
|
125.29
|
Average selling price per pound of non-food grade corn oil
|
|
|
$
|
0.28
|
|
|
$
|
0.24
|
Average selling price per ton of modified distillers grains
|
|
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$
|
41.91
|
|
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$
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59.82
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Average cost per bushel of grain
|
|
|
$
|
3.47
|
|
|
$
|
3.52
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Average cost of natural gas (per mmbtu)
|
|
|
$
|
3.74
|
|
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$
|
3.22
|
|
|
|
|
|
|
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Supplemental Data Related to REX’s Alternative Energy Interests:
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REX American Resources Corporation Ethanol
Ownership Interests/Effective Annual Gallons Shipped as of April
30, 2017 (gallons in millions)
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Entity
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Trailing Twelve Months Gallons Shipped
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Current REX Ownership Interest
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REX’s Current Effective Ownership of
Trailing Twelve Month Gallons Shipped
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One Earth Energy, LLC (Gibson City, IL)
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120.5
|
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75.0%
|
|
90.4
|
NuGen Energy, LLC (Marion, SD)
|
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131.0
|
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99.5%
|
|
130.3
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Big River Resources West Burlington, LLC (West
Burlington, IA)
|
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107.3
|
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9.7%
|
|
10.4
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Big River Resources Galva, LLC (Galva, IL)
|
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124.0
|
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9.7%
|
|
12.0
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Big River United Energy, LLC (Dyersville, IA)
|
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128.6
|
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5.4%
|
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6.9
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Big River Resources Boyceville, LLC (Boyceville, WI)
|
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57.9
|
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9.7%
|
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5.6
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Total
|
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669.3
|
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n/a
|
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255.6
|
|
|
|
|
|
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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 April 30, 2017. REX’s
effective ownership of the trailing twelve month gallons shipped (for
the twelve months ended April 30, 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, the effects of terrorism or
acts of war 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.
- statements of operations follow -
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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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April 30,
|
|
|
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2017
|
|
2016
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Net sales and revenue
|
|
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$
|
113,143
|
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$
|
100,222
|
Cost of sales
|
|
|
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100,654
|
|
|
91,800
|
Gross profit
|
|
|
|
12,489
|
|
|
8,422
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Selling, general and administrative expenses
|
|
|
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(5,402)
|
|
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(4,027)
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Equity in income of unconsolidated ethanol affiliates
|
|
|
|
700
|
|
|
233
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Gain on sale of investment
|
|
|
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-
|
|
|
192
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Interest and other income
|
|
|
|
215
|
|
|
160
|
Income before income taxes and non-controlling interests
|
|
|
|
8,002
|
|
|
4,980
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Provision for income taxes
|
|
|
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(2,390)
|
|
|
(1,514)
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Net income including non-controlling interests
|
|
|
|
5,612
|
|
|
3,466
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Net income attributable to non-controlling interests
|
|
|
|
(1,068)
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|
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(628)
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Net income attributable to REX common shareholders
|
|
|
$
|
4,544
|
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$
|
2,838
|
|
|
|
|
|
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Weighted average shares outstanding – basic
|
|
|
|
6,593
|
|
|
6,573
|
|
|
|
|
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Basic net income per share attributable to REX common shareholders
|
|
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$
|
0.69
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$
|
0.43
|
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|
|
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Weighted average shares outstanding – diluted
|
|
|
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6,593
|
|
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6,594
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|
|
|
|
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Diluted net income per share attributable to REX common shareholders
|
|
|
$
|
0.69
|
|
$
|
0.43
|
|
|
|
|
|
|
|
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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated
Balance Sheets (in thousands) Unaudited
|
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ASSETS:
|
|
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April 30, 2017
|
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January 31, 2017
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CURRENT ASSETS:
|
|
|
|
|
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Cash and cash equivalents
|
|
|
$
|
|
191,493
|
|
$
|
188,576
|
Restricted cash
|
|
|
|
|
130
|
|
|
130
|
Accounts receivable
|
|
|
|
|
9,196
|
|
|
11,901
|
Inventory
|
|
|
|
|
20,427
|
|
|
17,057
|
Refundable income taxes
|
|
|
|
|
1,063
|
|
|
1,070
|
Prepaid expenses and other
|
|
|
|
|
7,075
|
|
|
6,959
|
Deferred taxes-net
|
|
|
|
|
824
|
|
|
824
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Total current assets
|
|
|
|
|
230,208
|
|
|
226,517
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Property and equipment-net
|
|
|
|
|
184,674
|
|
|
182,761
|
Other assets
|
|
|
|
|
6,777
|
|
|
6,913
|
Equity method investments
|
|
|
|
|
38,533
|
|
|
37,833
|
TOTAL ASSETS
|
|
|
$
|
|
460,192
|
|
$
|
454,024
|
LIABILITIES AND EQUITY
|
|
|
|
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CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable – trade
|
|
|
$
|
|
8,636
|
|
$
|
9,171
|
Accrued expenses and other current liabilities
|
|
|
|
|
14,261
|
|
|
13,348
|
Total current liabilities
|
|
|
|
|
22,897
|
|
|
22,519
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LONG TERM LIABILITIES:
|
|
|
|
|
|
Deferred taxes
|
|
|
|
|
41,138
|
|
|
41,135
|
Other long term liabilities
|
|
|
|
|
2,242
|
|
|
2,096
|
Total long term liabilities
|
|
|
|
|
43,380
|
|
|
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
|
|
|
|
|
145,790
|
|
|
145,767
|
Retained earnings
|
|
|
|
|
512,751
|
|
|
508,207
|
Treasury stock, 23,292 shares
|
|
|
|
|
(313,832)
|
|
|
(313,838)
|
Total REX shareholders’ equity
|
|
|
|
|
345,008
|
|
|
340,435
|
Non-controlling interests
|
|
|
|
|
48,907
|
|
|
47,839
|
Total equity
|
|
|
|
|
393,915
|
|
|
388,274
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TOTAL LIABILITIES AND EQUITY
|
|
|
$
|
|
460,192
|
|
$
|
454,024
|
|
|
|
|
|
|
- statements of cash flows follow -
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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated
Statements of Cash Flows (in thousands) Unaudited
|
|
|
|
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Three Months Ended April
30,
|
|
|
|
2017
|
|
2016
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
|
$
|
5,612
|
|
$
|
3,466
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
provided by (used in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
4,934
|
|
|
4,812
|
Income from equity method investments
|
|
|
|
(700)
|
|
|
(233)
|
Gain on sale of investment
|
|
|
|
-
|
|
|
(192)
|
Deferred income tax
|
|
|
|
3
|
|
|
-
|
Stock based compensation expense
|
|
|
|
196
|
|
|
15
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
|
2,705
|
|
|
(1,833)
|
Inventories
|
|
|
|
(3,370)
|
|
|
(8,554)
|
Other assets
|
|
|
|
(30)
|
|
|
1,589
|
Accounts payable-trade
|
|
|
|
(1,308)
|
|
|
(2,284)
|
Other liabilities
|
|
|
|
723
|
|
|
(2,465)
|
Net cash provided by (used in) operating activities
|
|
|
|
8,765
|
|
|
(5,679)
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(5,905)
|
|
|
(4,474)
|
Restricted cash
|
|
|
|
-
|
|
|
(466)
|
Restricted investments and deposits
|
|
|
|
51
|
|
|
-
|
Proceeds from sale of investment
|
|
|
|
-
|
|
|
2,275
|
Other
|
|
|
|
6
|
|
|
6
|
Net cash used in investing activities
|
|
|
|
(5,848)
|
|
|
(2,659)
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CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Purchase of stock from noncontrolling interests holders
|
|
|
|
-
|
|
|
(268)
|
Treasury stock acquired
|
|
|
|
-
|
|
|
(4,709)
|
Net cash used in financing activities
|
|
|
|
-
|
|
|
(4,977)
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
2,917
|
|
|
(13,315)
|
CASH AND CASH EQUIVALENTS – Beginning of period
|
|
|
|
188,576
|
|
|
135,765
|
CASH AND CASH EQUIVALENTS – End of period
|
|
|
$
|
191,493
|
|
$
|
122,450
|
Non cash investing activities – Accrued capital expenditures
|
|
|
$
|
1,284
|
|
$
|
634
|
Non cash financing activities – Equity awards accrued
|
|
|
$
|
167
|
|
$
|
-
|
|
|
|
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170524005229/en/ Copyright Business Wire 2017
Source: Business Wire
(May 24, 2017 - 7:00 AM EDT)
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