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REX American Resources Reports Fiscal 2021 First Quarter Net Income Per Share Attributable to REX Common Shareholders of $1.30 Versus a Loss of $1.21 Per Share in the Year-Ago Period

REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 first quarter (“Q1 ‘21”) ended April 30, 2021. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

212/231-2911

Webcast / Replay URL:

www.rexamerican.com/Corp/Page4.aspx

The webcast will be available for replay for 30 days.

REX American Resources’ Q1 ‘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 those of its four other ethanol plants are reported as equity in income of unconsolidated ethanol affiliates. The Company reports results for its two business segments as ethanol and by-products, and refined coal.

REX’s Q1 ‘21 net sales and revenue were $164.1 million, compared with $83.3 million in Q1 ‘20. The year-over-year net sales and revenue increase was primarily due to higher ethanol production levels as compared to the prior year levels, which were significantly impacted by the Covid-19 pandemic, as well as higher ethanol and dried distillers grains and modified distillers grains pricing. Primarily reflecting the revenue growth, offset in part by increased input corn pricing, Q1 ‘21 gross profit for the Company’s ethanol and by-products segment increased to $19.5 million, compared with a loss of $8.2 million in Q1 ‘20. As a result, the ethanol and by-products segment had income before income taxes of $11.1 million in Q1 ‘21, compared to a loss of $12.4 million in Q1 ‘20. The Company’s refined coal operation incurred a $1.7 million gross loss and a $1.8 million loss before income taxes in Q1 ‘21, compared to a $1.1 million gross loss and a loss before income taxes of $0.8 million in Q1 ‘20. REX reported Q1 ‘21 income before income taxes and non-controlling interests of $8.4 million, compared with a loss before income taxes and non-controlling interests of $13.7 million in the comparable year ago period. While the refined coal operation negatively impacted gross profit and income before income taxes, it contributed a tax benefit of $2.2 million and $1.0 million for Q1 ‘21 and Q1 ‘20, respectively.

Net income attributable to REX shareholders in Q1 ‘21 was $7.8 million, compared to a net loss of $7.6 million in Q1 ‘20. Q1 ‘21 basic and diluted net income per share attributable to REX common shareholders was $1.30, compared to a net loss per share of $1.21 in Q1 ‘20. Per share results in Q1 ‘21 and Q1 ‘20 are based on 6,010,000 and 6,304,000 diluted weighted average shares outstanding, respectively.

Segment Income Statement Data:

 

Three Months

Ended

($ in thousands)

April 30,

 

 

2021

 

 

 

2020

 

Net sales and revenue:

 

 

Ethanol & By-Products (1)

$

164,042

 

$

83,235

 

Refined coal (2) (3)

 

62

 

 

15

 

Total net sales and revenue

$

164,104

 

$

83,250

 

 

 

 

Gross profit (loss):

 

 

Ethanol & By-Products (1)

$

19,477

 

$

(8,223

)

Refined coal (2)

 

(1,675

)

 

(1,107

)

Total gross profit (loss)

$

17,802

 

$

(9,330

)

 

 

 

Income (loss) before income taxes:

 

 

Ethanol & By-Products (1)

$

11,082

 

$

(12,351

)

Refined coal (2)

 

(1,795

)

 

(847

)

Corporate and other

 

(860

)

 

(545

)

Total income (loss) before income taxes

$

8,427

 

$

(13,743

)

(Provision) benefit for income taxes:

 

 

Ethanol & By-Products

$

(2,436

)

$

4,161

 

Refined coal

 

2,195

 

 

959

 

Corporate and other

 

212

 

 

193

 

Total (provision) benefit for income taxes

$

(29

)

$

5,313

 

Net income (loss) attributable to REX common shareholders:

 

 

Ethanol & By-Products

$

7,952

 

$

(7,433

)

Refined coal

 

480

 

 

150

 

Corporate and other

 

(648

)

 

(352

)

Net income (loss) attributable to REX common shareholders

$

7,784

 

$

(7,635

)

   

(1)

Includes results attributable to non-controlling interests of approximately 24.5% for One Earth and approximately 1% for NuGen.

   

(2)

Includes results attributable to non-controlling interests of approximately 5%.

   

(3)

Refined coal sales are reported net of the cost of coal.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “The operating environment in the first quarter of fiscal 2021 was markedly better than the challenging environment we experienced throughout most of fiscal 2020, with significant improvements to demand and pricing across our ethanol and by-products segments. With all of our high-quality plants in operation, we were able to leverage our strategic locations across the corn belt and healthy liquidity position to generate first quarter net income of $7.8 million and earnings per share of $1.30.”

Balance Sheet

At April 30, 2021, REX had cash and cash equivalents and short-term investments of $193.0 million, $45.9 million of which was at the parent company, and $147.1 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.

The following table summarizes select data related to REX’s

consolidated alternative energy interests:

 

Three Months

Ended

 

April 30,

 

 

2021

 

 

2020

Average selling price per gallon of ethanol (net of hedging)

$

1.79

$

1.25

Average selling price per ton of dried distillers grains

$

208.92

$

145.64

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

$

0.33

$

0.25

Average selling price per ton of modified distillers grains

$

71.54

$

65.82

Average cost per bushel of grain

$

5.16

$

3.93

Average cost of natural gas (per MmBtu)

$

3.18

$

3.93

 

Supplemental data related to REX’s ethanol interests:

REX American Resources Corporation

Ethanol Ownership Interests/Effective Annual Gallons Shipped as of April 30, 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

119.2

75.5%

90.0

NuGen Energy, LLC

Marion, SD

119.6

99.5%

119.0

Big River Resources West Burlington, LLC

West Burlington, IA

97.3

10.3%

10.0

Big River Resources Galva, LLC

Galva, IL

111.5

10.3%

11.5

Big River United Energy, LLC

Dyersville, IA

113.8

5.7%

6.5

Big River Resources Boyceville, LLC

Boyceville, WI

55.8

10.3%

5.7

 

Total

617.2

n/a

242.7

REX further announced today that it had filed additional supplemental proxy materials related to its Annual Shareholder Meeting to be held on June 16, 2021. The additional information related to the voting requirements of Proposal 3, in particular the treatment of abstentions and broker non-votes. Proposal 3, which is an amendment to the Amended Certificate of Incorporation to authorize a new class of Preferred Stock, requires the affirmative vote of holders of a majority of shares entitled to vote at the Annual Meeting. Therefore, abstentions and broker non-votes will have the effect of a vote against the proposal.

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 212/231-2911 (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 617 million gallons of ethanol over the twelve-month period ended April 30, 2021. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 243 million gallons. In addition, the Company acquired a refined coal operation in August 2017. 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.

- statements of operations follow -

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

 

 

Three Months

Ended

 

April 30,

 

 

2021

 

 

 

2020

 

Net sales and revenue

$

164,104

 

$

83,250

 

Cost of sales

 

146,302

 

 

92,580

 

Gross profit (loss)

 

17,802

 

 

(9,330

)

Selling, general and administrative expenses

 

(9,988

)

 

(4,605

)

Equity in income (loss) of unconsolidated ethanol affiliates

 

570

 

 

(477

)

Interest and other income, net

 

43

 

 

669

 

Income (loss) before income taxes and

non-controlling interests

 

 

 

8,427

 

 

 

 

 

(13,743

 

)

(Provision) benefit for income taxes

 

(29

)

 

5,313

 

Net income (loss) including non-controlling interests

 

8,398

 

 

(8,430

)

Net (income) loss attributable to non-controlling interests

 

(614

)

 

795

 

Net income (loss) attributable to REX common shareholders

$

7,784

 

$

(7,635

)

 

 

 

Weighted average shares outstanding – basic and diluted

 

6,010

 

 

6,304

 

 

 

 

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

$

1.30

 

($

1.21

)

 

 

 

- balance sheets follow -

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

April 30,

 

 

 

January 31,

ASSETS

 

2021

 

 

 

2021

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

157,105

 

 

$

144,501

 

Short-term investments

 

35,864

 

 

 

36,194

 

Restricted cash

 

1,717

 

 

 

1,657

 

Accounts receivable

 

27,557

 

 

 

19,713

 

Inventory

 

26,687

 

 

 

37,880

 

Refundable income taxes

 

6,020

 

 

 

6,020

 

Prepaid expenses and other

 

14,831

 

 

 

12,785

 

Total current assets

 

269,781

 

 

 

258,750

 

Property and equipment-net

 

149,067

 

 

 

153,186

 

Operating lease right-of-use assets

 

11,289

 

 

 

12,678

 

Deferred taxes and other assets

 

25,977

 

 

 

25,275

 

Equity method investment

 

30,026

 

 

 

29,456

 

TOTAL ASSETS

$

486,140

 

 

$

479,345

 

LIABILITIES AND EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable – trade

$

15,808

 

 

$

16,907

 

Current operating lease liabilities

 

4,632

 

 

 

4,875

 

Accrued expenses and other current liabilities

 

9,185

 

 

 

8,955

 

Total current liabilities

 

29,625

 

 

 

30,737

 

LONG TERM LIABILITIES:

 

 

 

Deferred taxes

 

4,294

 

 

 

3,713

 

Long-term operating lease liabilities

 

6,327

 

 

 

7,439

 

Other long-term liabilities

 

278

 

 

 

273

 

Total long-term liabilities

 

10,899

 

 

 

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

 

149,144

 

 

 

149,110

 

Retained earnings

 

597,770

 

 

 

589,986

 

Treasury stock, 23,861 shares

 

(354,604

)

 

 

(354,612

)

Total REX shareholders’ equity

 

392,609

 

 

 

384,783

 

Non-controlling interests

 

53,007

 

 

 

52,400

 

Total equity

 

445,616

 

 

 

437,183

 

TOTAL LIABILITIES AND EQUITY

$

486,140

 

 

$

479,345

 

- statements of cash flows follow -

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

 

Three Months Ended

 

April 30,

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

Net income (loss)

$

8,398

 

$

(8,430

)

Adjustments to reconcile net income (loss) to net cash

 

 

provided by (used in) operating activities:

 

 

Depreciation

 

5,249

 

 

5,315

 

Amortization of operating lease right-of-use assets

 

1,389

 

 

1,347

 

(Income) loss from equity method investments

 

(570

)

 

477

 

Dividends received from equity method investments

 

-

 

 

2,005

 

Interest income from investments

 

(15

)

 

(125

)

Deferred income tax

 

20

 

 

(1,748

)

Stock based compensation expense

 

291

 

 

39

 

Gain on sale of property and equipment – net

 

(3

)

 

(3

)

Changes in assets and liabilities:

 

 

Accounts receivable

 

(7,844

)

 

10,197

 

Inventory

 

11,193

 

 

8,366

 

Other assets

 

(2,187

)

 

(3,759

)

Accounts payable-trade

 

(989

)

 

(11,934

)

Other liabilities

 

(1,369

)

 

(2,008

)

Net cash provided by (used in) operating activities

 

13,563

 

 

(261

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

Capital expenditures

 

(1,267

)

 

(4,700

)

Purchases of short-term investments

 

(25,930

)

 

(19,237

)

Sales of short-term investments

 

26,275

 

 

12,834

 

Other

 

30

 

 

(278

)

Net cash used in investing activities

 

(892

)

 

(11,381

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

Treasury stock acquired

 

-

 

 

(3,923

)

Payments to noncontrolling interests holders

 

(75

)

 

(35

)

Capital contributions from minority investor

 

68

 

 

10

 

Net cash used in financing activities

 

(7

)

 

(3,948

)

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS

 

 

AND RESTRICTED CASH

 

12,664

 

 

(15,590

)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period

 

146,158

 

 

180,771

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period

$

158,822

 

$

165,181

 

Non cash financing activities – Stock awards accrued

$

348

 

$

-

 

Non cash investing activities – Accrued capital expenditures

$

280

 

$

457

 

Operating lease right-of-use assets acquired and liabilities assumed

 

 

upon lease execution

$

-

 

$

1,863

 

 

Contacts

Douglas Bruggeman

Chief Financial Officer

(937) 276‑3931

Joseph Jaffoni, Norberto Aja

JCIR

(212) 835-8500

rex@jcir.com

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