REX American Resources Reports Fiscal 2021 Fourth Quarter Net Income Per Share Attributable to REX Common Shareholders of $3.61

Mar 23rd, 2022 7:00 EST

DAYTON, Ohio–(BUSINESS WIRE)–REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 fourth quarter (“Q4 ‘21”) ended January 31, 2022. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

212/231-2936

Webcast / Replay URL:

www.rexamerican.com

The webcast will be available for replay for 30 days.

REX American Resources’ Q4 ‘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, 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 ‘21 net sales and revenue were $212.0 million, compared with $126.0 million in Q4 ‘20. The year-over-year net sales and revenue increase was primarily due to higher pricing of ethanol, dried distillers grains and modified distillers grains. This was partially offset by an increase in corn and natural gas prices. Primarily reflecting these factors, Q4 ‘21 gross profit for the Company’s continuing operations increased to $38.8 million, compared with $8.3 million in Q4 ‘20. As a result, the Company reported Q4 ‘21 income before income taxes and non-controlling interests of $36.6 million, compared with income before income taxes and non-controlling interests of $4.8 million in the comparable year ago period.

Net income attributable to REX shareholders in Q4 ‘21 was $21.4 million, compared to net income of $3.5 million in Q4 ‘20. Q4 ‘21 basic and diluted net income per share attributable to REX common shareholders was $3.61, compared to net income per share of $0.59 in Q4 ‘20. Per share results in Q4 ‘21 and Q4 ‘20 are based on 5,939,000 and 6,008,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased with our strong performance in the fourth quarter and through-out fiscal 2021, including earnings per share of $3.61 and $8.75, respectively. These results reflect the continued success of our strategy, operational efficiency, effectiveness of our plants and operational team. I’m proud of our team and grateful for their efforts.”

“Looking ahead, we remain confident in our strategy and believe that we can leverage our balance sheet to take advantage of opportunities ahead of us and create additional value for our shareholders.”

Balance Sheet

At January 31, 2022, REX had cash and cash equivalents and short-term investments of $255.7 million, $42.9 million of which was at the parent company, and $212.8 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.

The following table summarizes select data related to REX’s

consolidated alternative energy interests:

 

Three Months
Ended

Twelve Months
Ended

 

January 31,

January 31,

 

 

2022

 

2021

 

2022

 

2021

Average selling price per gallon of ethanol

$

2.36

$

1.36

$

2.21

$

1.30

Average selling price per ton of dried distillers grains

$

192.20

$

161.42

$

197.86

$

144.73

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

$

0.60

$

0.27

$

0.50

$

0.26

Average selling price per ton of modified distillers grains

$

89.99

$

81.76

$

85.19

$

64.80

Average cost per bushel of grain

$

5.83

$

4.04

$

5.99

$

3.73

Average cost of natural gas (per MmBtu)

$

5.85

$

3.25

$

4.27

$

3.00

Fourth 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 212/231-2936 (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 699 million gallons of ethanol over the twelve-month period ended January 31, 2022. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2022) by the ethanol production facilities in which it has ownership interests was approximately 282 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,

 

2022

2021

2022

2021

Net sales and revenue

$

212,016

$

125,970

$

774,802

$

372,664

Cost of sales

 

173,239

 

117,696

 

677,242

 

353,131

Gross profit

 

38,777

 

8,274

 

97,560

 

19,533

Selling, general and administrative expenses

 

(6,032)

 

(4,232)

 

(28,476)

 

(17,639)

Equity in income of unconsolidated ethanol affiliates

 

3,861

 

332

 

6,624

 

500

Interest and other income, net

 

13

 

415

 

130

 

1,818

Income before income taxes and non-controlling interests

 

36,619

 

4,789

 

75,838

 

4,212

(Provision) benefit for income taxes

 

(10,702)

 

102

 

(19,031)

 

546

Net income from continuing operations including non-controlling interests

 

25,917

 

4,891

 

56,807

 

4,758

Net income attributable to non-controlling interests (continuing operations)

 

(4,650)

 

(1,547)

 

(9,235)

 

(2,878)

Net income attributable to REX common shareholders (continuing operations)

 

21,267

 

3,344

 

47,572

 

1,880

 

 

 

 

 

Net income from discontinued operations, net of tax

 

132

 

131

 

4,395

 

860

Net income attributable to noncontrolling interests (discontinued operations)

 

27

 

68

 

397

 

261

Net income attributable to REX common shareholders (discontinued operations)

 

159

 

199

 

4,792

 

1,121

 

 

 

 

 

Net income attributable to REX common shareholders

$

21,426

$

3,543

$

52,364

$

3,001

 

 

 

 

 

Weighted average shares outstanding – basic and diluted

 

5,939

 

6,008

 

5,982

 

6,167

 

 

 

 

 

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

$

3.58

$

0.56

$

7.95

$

0.31

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

 

0.03

 

0.03

 

0.80

 

0.18

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

$

3.61

$

0.59

$

8.75

$

0.49

 

 

 

 

 

– balance sheets follow –

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

 

January 31,

January 31,

ASSETS

2022

2021

CURRENT ASSETS:

 

 

Cash and cash equivalents

$

229,846

$

144,501

Short-term investments

 

25,877

 

36,194

Restricted cash

 

2,222

 

1,657

Accounts receivable

 

25,821

 

19,713

Inventory

 

42,225

 

37,426

Refundable income taxes

 

6,677

 

6,020

Prepaid expenses and other

 

12,499

 

12,751

Current assets held for sale

 

 

488

Total current assets

 

345,167

 

258,750

Property and equipment-net

 

137,554

 

150,861

Operating lease right-of-use assets

 

11,221

 

12,678

Deferred taxes and other assets

 

25,853

 

25,275

Equity method investment

 

30,566

 

29,456

Assets held for sale

 

 

2,325

TOTAL ASSETS

$

550,361

$

479,345

LIABILITIES AND EQUITY

 

 

CURRENT LIABILITIES:

 

 

Accounts payable – trade

$

32,266

$

16,573

Current operating lease liabilities

 

4,600

 

4,875

Accrued expenses and other current liabilities

 

13,617

 

8,754

Current liabilities held for sale

 

 

535

Total current liabilities

 

50,483

 

30,737

LONG TERM LIABILITIES:

 

 

Deferred taxes

 

3,132

 

3,713

Long-term operating lease liabilities

 

6,390

 

7,439

Other long-term liabilities

 

2,794

 

273

Total long-term liabilities

 

12,316

 

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

 

149,334

 

149,110

Retained earnings

 

642,350

 

589,986

Treasury stock, 23,933 shares and 23,861 shares, respectively

 

(361,191)

 

(354,612)

Total REX shareholders’ equity

 

430,792

 

384,783

Non-controlling interests

 

56,770

 

52,400

Total equity

 

487,562

 

437,183

TOTAL LIABILITIES AND EQUITY

$

550,361

$

479,345

– statements of cash flows follow –

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

Twelve Months Ended

 

January 31,

 

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

Net income

$

61,202

$

5,618

Net income from discontinued operations, net of tax

 

4,395

 

860

Net income from continuing operations

 

56,807

 

4,758

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

 

 

Depreciation

 

18,031

 

18,116

Amortization of operating lease right-of-use assets

 

5,560

 

5,358

Stock based compensation expense

 

1,753

 

264

Income from equity method investments

 

(6,624)

 

(500)

Dividends received from equity method investments

 

5,514

 

3,508

Interest income from investments

 

(43)

 

(216)

Deferred income tax

 

12,730

 

(1,110)

Loss (gain) on disposal of property and equipment

 

30

 

(58)

Changes in assets and liabilities:

 

 

Accounts receivable

 

(6,108)

 

(6,744)

Inventory

 

(4,799)

 

(2,307)

Refundable income taxes

 

(1,103)

 

(276)

Prepaid expenses and other assets

 

199

 

(3,243)

Accounts payable-trade

 

16,005

 

(2,618)

Other liabilities

 

475

 

(3,523)

Net cash provided by operating activities from continuing operations

 

98,427

 

11,409

Net cash used in operating activities from discontinued operations

 

(6,716)

 

(2,786)

Net cash provided by operating activities

 

91,711

 

8,623

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

Capital expenditures

 

(5,126)

 

(10,412)

Purchases of short-term investments

 

(88,949)

 

(96,233)

Sales of short-term investments

 

99,309

 

86,328

Other

 

60

 

(474)

Net cash provided by (used in) investing activities

 

5,294

 

(20,791)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

Treasury stock acquired

 

(6,627)

 

(19,629)

Payments to noncontrolling interests holders

 

(4,772)

 

(2,928)

Net cash used in financing activities from continuing operations

 

(11,399)

 

(22,557)

Net cash provided by financing activities from discontinued operations

 

304

 

112

Net cash used in financing activities

 

(11,095)

 

(22,445)

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

 

85,910

 

(34,613)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period

 

146,158

 

180,771

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period

$

232,068

$

146,158

Non-cash financing activities – Stock awards issued

$

100

$

241

Non-cash financing activities – Stock awards accrued

$

1,580

$

99

Non-cash investing activities – Accrued capital expenditures

$

78

$

390

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

$

4,103

$

1,863

 

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