Attachment: c103817_8k-ixbrl.htm

Exhibit 99

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES REPORTS FISCAL 2022 FIRST QUARTER
NET INCOME PER SHARE ATTRIBUTABLE TO REX COMMON
SHAREHOLDERS OF $0.87

 

Dayton, Ohio, (May 25, 2022) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2022 first quarter (“Q1 ‘22”) ended April 30, 2022. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

Conference Call: 415/226-5357
   
Webcast / Replay URL: www.rexamerican.com
   
  The webcast will be available for replay for 30 days.

 

REX American Resources’ Q1 ‘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 as continuing operations and beginning in the third quarter of fiscal 2021 its refined coal as discontinued operations as operations ceased on November 18, 2021.

 

REX’s Q1 ‘22 net sales and revenue were $194.2 million, compared with $164.0 million in Q1 ‘21. The year-over-year net sales and revenue increase primarily reflects higher pricing of ethanol, dried distillers grains, non-food grade corn oil and modified distillers grains, while cost of sales increased due to pricing pressures across corn and natural gas prices. This led to Q1 ‘22 gross profit decline for the Company’s continuing operations to $11.9 million, compared with $19.5 million in Q1 ‘21. As a result, the Company reported Q1 ‘22 income before income taxes and non-controlling interests of $8.8 million, compared with income before income taxes and non-controlling interests of $10.2 million in the comparable year ago period.

 

Net income attributable to REX shareholders in Q1 ‘22 was $5.2 million, compared to net income of $7.8 million in Q1 ‘21. Q1 ‘22 basic and diluted net income per share attributable to REX common shareholders was $0.87, compared to net income per share of $1.30 in Q1 ‘21. Per share results in Q1 ‘22 and Q1 ‘21 are based on 5,945,000 and 6,010,000 diluted weighted average shares outstanding, respectively.

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased with our start to fiscal 2022 as we managed through significant headwinds, including inflationary impacts on our major input costs, and logistical challenges. Despite this, we generated earnings of $0.87 per share, reflecting the success of our operating strategies, our plants’ efficiency, and the expertise of our team.

 
REX American Resources Q1 ‘22 Results, 5/25/2022 page 2

 

“Looking ahead, we remain focused on strategically leveraging our financial resources to create added shareholder value. In particular, we continue to make progress on our carbon capture project, and evaluate other opportunities.”

 

Balance Sheet

At April 30, 2022, REX had cash, cash equivalents and short-term investments of $234.0 million, $39.0 million of which was at the parent company, and $195.0 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
April 30,
   2022  2021
Average selling price per gallon of ethanol  $2.28   $1.79 
Average selling price per ton of dried distillers grains  $218.90   $208.92 
Average selling price per pound of non-food grade corn oil  $0.63   $0.33 
Average selling price per ton of modified distillers grains  $118.09   $71.54 
Average cost per bushel of grain  $6.55   $5.16 
Average cost of natural gas (per MmBtu)  $5.93   $3.18 

 

First 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 415/226-5357 (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.

 

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 700 million gallons of ethanol over the twelve-month period ended April 30, 2022. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended April 30, 2022) by the ethanol production facilities in which it has ownership interests was approximately 277 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.

 

Contact:  
Douglas Bruggeman Joseph Jaffoni, Norberto Aja
Chief Financial Officer JCIR
(937) 276-3931 (212) 835-8500 / rex@jcir.com
 
REX American Resources Q1 ‘22 Results, 5/25/2022 page 3

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited

 

   Three Months Ended
April 30,
   2022  2021
Net sales and revenue  $194,228   $164,042 
Cost of sales   182,316    144,565 
Gross profit   11,912    19,477 
Selling, general and administrative expenses   (5,203)   (9,903)
Equity in income of unconsolidated ethanol affiliates   1,951    570 
Interest and other income, net   174    43 
Income before income taxes and noncontrolling interests   8,834    10,187 
Provision for income taxes   (1,848)   (2,224)
Net income from continuing operations   6,986    7,963 
Net income attributable to noncontrolling interests (continuing operations)   (1,804)   (694)
Net income attributable to REX common shareholders (continuing operations)   5,182    7,269 
           
Net income from discontinued operations, net of tax   -    435 
Net loss attributable to noncontrolling interests (discontinued operations)   -    80 
Net income attributable to REX common shareholders (discontinued operations)   -    515 
           
Net income attributable to REX common shareholders  $5,182   $7,784 
           
Weighted average shares outstanding - basic and diluted   5,945    6,010 
           
Basic and diluted net income per share from continuing operations attributable to REX common shareholders  $0.87   $1.21 
Basic and diluted net income per share from discontinued operations attributable to REX common shareholders   -    0.09 
Basic and diluted net income per share attributable to REX common shareholders  $0.87   $1.30 

 

- balance sheets follow -

 
REX American Resources Q1 ‘22 Results, 5/25/22 page 4

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Unaudited

 

ASSETS:  April 30,
2022		  January 31,
2022
CURRENT ASSETS:          
Cash and cash equivalents  $66,685   $229,846 
Short-term investments   167,347    25,877 
Restricted cash   4,920    2,222 
Accounts receivable   25,440    25,821 
Inventory   56,388    42,225 
Refundable income taxes   6,096    6,677 
Prepaid expenses and other   16,006    12,499 
Total current assets   342,882    345,167 
Property and equipment, net   134,575    137,554 
Operating lease right-of-use assets   13,250    11,221 
Deferred taxes and other assets   24,817    25,853 
Equity method investment   32,517    30,566 
TOTAL ASSETS  $548,041   $550,361 
LIABILITIES AND EQUITY:          
CURRENT LIABILITIES:          
Accounts payable - trade  $19,160   $32,266 
Current operating lease liabilities   4,515    4,600 
Accrued expenses and other current liabilities   15,184    13,617 
Total current liabilities   38,859    50,483 
LONG-TERM LIABILITIES:          
Deferred taxes   3,132    3,132 
Long-term operating lease liabilities   8,539    6,390 
Other long-term liabilities   2,920    2,794 
Total long-term liabilities   14,591    12,316 
EQUITY:          
REX shareholders’ equity:          
Common stock   299    299 
Paid-in capital   149,370    149,334 
Retained earnings   647,532    642,350 
Treasury stock   (361,183)   (361,191)
Total REX shareholders’ equity   436,018    430,792 
Noncontrolling interests   58,573    56,770 
Total equity   494,591    487,562 
TOTAL LIABILITIES AND EQUITY  $548,041   $550,361 

 

- statements of cash flows follow -

 
REX American Resources Q1 ‘22 Results, 5/25/22 page 5

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Unaudited

 

   Three Months Ended
April 30,
   2022  2021
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income including noncontrolling interests  $6,986   $8,398 
Net income from discontinued operations, net of tax   -    435 
Net income from continuing operations   6,986    7,963 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation   4,459    4,551 
Amortization of operating lease right-of-use assets   1,430    1,389 
Income from equity method investments   (1,951)   (570)
Interest income from investments   (148)   (15)
Deferred income taxes   1,161    2,303 
Stock based compensation expense   218    291 
Loss (gain) on sale of property and equipment - net   5    (3)
Changes in assets and liabilities          
Accounts receivable   381    (7,844)
Inventories   (14,163)   11,206 
Refundable income taxes   581    (88)
Other assets   (3,529)   (2,169)
Accounts payable - trade   (13,233)   (654)
Other liabilities   124    (1,264)
Net cash (used in) provided by operating activities from continuing operations   (17,679)   15,096 
Net cash used in operating activities from discontinued operations   -    (1,533)
Net cash (used in) provided by operating activities   (17,679)   13,563 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital Expenditures   (1,462)   (1,267)
Purchase of short-term investments   (161,599)   (25,930)
Sale of short-term investments   20,278    26,275 
Other   -    30 
Net cash used in investing activities   (142,783)   (892)
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payments to noncontrolling interests holders   (1)   (75)
Net cash used in financing activities from continuing operations   (1)   (75)
Net cash provided by financing activities from discontinued operations   -    68 
Net cash used in financing activities   (1)   (7)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   (160,463)   12,664 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period   232,068    146,158 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of period  $71,605   $158,822 
           
Non-cash financing activities - Stock awards accrued  $174   $348 
Non-cash investing activities - Accrued capital expenditures  $205   $280 
Right-of-use assets acquired and liabilities incurred upon lease execution  $3,460   $- 

 

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