REX American Resources Reports Fourth Quarter Diluted EPS of $0.54 and Full Year Diluted EPS of $4.30

REX American Resources Corporation (NYSE:REX) today reported financial results for its fiscal 2015 fourth quarter (“Q4 ‘15”) and year ended January 31, 2016. REX management will host a conference call and webcast today at 11:00 a.m. ET.

REX American Resources’ Q4 ‘15 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. During the fiscal 2015 second quarter the Company recorded a $10.4 million pre-tax gain related to the June 2015 sale of its 26.6% interest in Patriot Holdings, LLC (“Patriot”). As such, subsequent to June 1, 2015, equity in income of unconsolidated ethanol affiliates includes contributions from four ethanol production facilities, compared with five in the comparable year-ago period.

REX’s Q4 ‘15 net sales and revenue were $107.2 million, compared with $127.7 million in Q4 ‘14. Primarily reflecting tightening ethanol crush spread margins, the Company’s Q4 ’15 gross profit was $9.2 million compared with $30.0 million in the prior year period. Equity in income of unconsolidated ethanol affiliates in Q4 ‘15 was $1.1 million, compared with $7.9 million in Q4 ’14 primarily as a result of the same industry and pricing factors that impacted REX’s consolidated ethanol production facilities as well as the inclusion in the year-ago period of $4.1 million from the Company’s interest in Patriot (which was sold in Q2’ 15). As a result, income from continuing operations before income taxes and non-controlling interests in Q4 ‘15 totaled $6.2 million, compared with $33.4 million in Q4 ‘14.

Net income attributable to REX shareholders in Q4 ‘15 was $3.7 million, compared to $20.3 million in Q4 ‘14, while Q4 ‘15 diluted net income per share attributable to REX common shareholders was $0.54 per share, compared to $2.55 per share in Q4 ‘14. Per share results in Q4 ‘15 and Q4 ‘14 are based on 6,832,000 and 7,968,000 diluted weighted average shares outstanding, respectively.

Net sales and revenue for the twelve months ended January 31, 2016 were $436.5 million, compared to $572.2 million in fiscal 2014, while gross profit for fiscal 2015 was $50.8 million, compared to $141.9 million in fiscal 2014. Fiscal 2015 equity in income of unconsolidated ethanol affiliates was $9.0 million, compared with $32.2 million in fiscal 2014, partially reflecting the sale during fiscal 2015 of REX’s interest in Patriot.

In fiscal 2015 Patriot contributed $2.9 million in income of unconsolidated ethanol affiliates compared with $14.0 million in fiscal 2014. As a result, fiscal 2015 income from continuing operations before income taxes and non-controlling interests was $51.5 million (inclusive of the $10.4 million pre-tax gain related to the sale during the year of the Company’s interest in Patriot), compared with $152.8 million in fiscal 2014.

For fiscal 2015, REX reported net income attributable to REX shareholders of $31.4 million, compared with $87.3 million in fiscal 2014, while diluted net income per share attributable to REX common shareholders was $4.30 in fiscal 2015, compared to $10.76 per share in fiscal 2014. Per share results for the fiscal year ended January 31, 2016 and January 31, 2015, are based on 7,307,000 and 8,118,000 diluted weighted average shares outstanding, respectively.

REX Executive Chairman, Stuart Rose, commented, “Fiscal 2015 presented a challenging operating environment for the entire ethanol sector compared to the prior year as profitability was significantly impacted by lower crush spread margins. Despite these challenges, we are pleased to report diluted earnings per share of $4.30 for fiscal 2015 including a gain from the sale of our interest in Patriot. In addition we returned approximately $70 million to shareholders through the repurchase of approximately 1.25 million shares during the course of the year.”

Balance Sheet and Share Repurchase Program

At January 31, 2016, REX had cash and cash equivalents of $135.8 million, $57.2 million, of which was at the parent company, and $78.6 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents at January 31, 2015, of $137.7 million, $82.9 million of which was at the parent company, and $54.8 million of which was at its consolidated ethanol production facilities.

REX repurchased 209,571 common shares in Q4 ‘15 at an average price per share of $48.16, bringing the total shares repurchased in fiscal 2015 to 1,254,344 common shares at an average price per share of $55.97. Subsequent to January 31, 2016, the Company repurchased an additional 87,904 common shares at an average price per share of $49.52 and reflecting this activity, the Company is currently authorized to repurchase up to an additional 155,334 shares of common stock and has 6,560,527 shares outstanding.

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 638 million gallons of ethanol over the twelve month period ended January 31, 2016. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended January 31, 2016) by the ethanol production facilities in which it has ownership interests was approximately 237 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.

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