REX American Resources Reports Fiscal 2022 Fourth Quarter Net Income Per Share Attributable to Rex Common Shareholders Of $0.47

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DAYTON, Ohio, March 23, 2023--(BUSINESS WIRE)--REX American Resources Corporation (NYSE: REX) ("REX" or "the Company") today reported financial results for its fiscal 2022 fourth quarter ("Q4 ‘22") ended January 31, 2023. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

212/231-2904

Webcast / Replay URL:

www.rexamerican.com

The webcast will be available for replay for 30 days.

REX American Resources’ Q4 ‘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 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 ‘22 net sales and revenue were $200.2 million, compared with $212.0 million in Q4 ‘21. The year-over-year net sales and revenue decrease primarily reflects a decrease in the quantities sold of ethanol, dried distillers grains and modified distillers grains. Q4 ‘22 gross profit for the Company’s continuing operations was $14.9 million, compared with $38.8 million in Q4 ‘21 reflecting increases in corn and natural gas prices. This led to Q4 ‘22 income before income taxes and non-controlling interests of $13.3 million, compared with $36.6 million in the comparable year ago period.

Net income attributable to REX shareholders from continuing operations in Q4 ‘22 was $8.2 million, compared to $21.3 million in Q4 ‘21. Q4 ‘22 basic and diluted net income per share attributable to REX common shareholders from continuing operations was $0.47, compared to $1.19 per share in Q4 ‘21. Per share results for Q4 ‘22 and Q4 ‘21 are based on 17,416,000 and 17,818,000 diluted weighted average shares outstanding, respectively, reflecting the Company’s 3-for-1 common stock split effected August 5, 2022.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, "In the fourth quarter, we saw a continuation of the difficult operating environment we faced throughout much of fiscal 2022, including year-over-year price increases in corn and natural gas of 22% and 12%, respectively, as well as weather-related disruptions. Given these challenges, we are pleased with our performance in the fourth quarter and full year, with earnings per share of $0.47 and $1.57, respectively. Our results demonstrate the resiliency of our operating model, our operational efficiency, and the effectiveness of our plant operations teams.

"We exited fiscal 2022 with a robust liquidity position, with approximately $281 million in cash and short-term investments and no debt. Thanks to our healthy financial foundation, we are well positioned to continue to strategically invest in the efficiency and capacity of our plants while pursuing and progressing against our carbon capture and sequestration initiatives.

"Looking ahead, we are excited by the many opportunities in front of us and remain confident in the value proposition that ethanol brings to consumers and the environment. We are also encouraged by the potentially compelling financial benefits of our carbon capture and sequestration initiatives on the back of the recently enacted Inflation Reduction Act and believe our efforts will yield significant financial benefits for our employees, partners and shareholders."

Balance Sheet

As of January 31, 2023, REX had cash and cash equivalents and short-term investments of $280.9 million, $42.1 million of which was at the parent company, and $238.8 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

Twelve Months Ended

January 31,

January 31,

2023

2022

2023

2022

Average selling price per gallon of ethanol

$

2.31

$

2.36

$

2.44

$

2.21

Average selling price per ton of dried distillers grains

$

234.39

$

192.20

$

232.98

$

197.86

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

$

0.75

$

0.60

$

0.71

$

0.50

Average selling price per ton of modified distillers grains

$

139.84

$

89.99

$

123.66

$

85.19

Average cost per bushel of grain

$

7.10

$

5.83

$

7.24

$

5.99

Average cost of natural gas (per MmBtu)

$

6.57

$

5.85

$

6.66

$

4.27

Fourth Quarter Conference Call

REX will host a conference call at 11:00 a.m. ET today to discuss the quarterly results and will host a question and answer session. The dial in number for the audio conference call is 212/231-2904 (domestic and international callers). Participants can also listen to a live webcast of the call on the Company’s website at, 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 691 million gallons of ethanol over the twelve-month period ended January 31, 2023. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2023) by the ethanol production facilities in which it has ownership interests was approximately 271 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,

2023

2022

2023

2022

Net sales and revenue

$

200,167

$

212,016

$

855,000

$

774,802

Cost of sales

185,268

173,239

800,269

677,242

Gross profit

14,899

38,777

54,731

97,560

Selling, general and administrative expenses

(6,719

)

(6,032

)

(28,956

)

(28,476

)

Equity in income of unconsolidated ethanol affiliates

2,535

3,861

8,745

6,624

Interest and other income, net

2,621

13

12,959

130

Income before income taxes and noncontrolling interests

13,336

36,619

47,479

75,838

Provision for income taxes

(2,168

)

(10,702

)

(9,542

)

(19,031

)

Net income from continuing operations

11,168

25,917

37,937

56,807

Net income attributable to noncontrolling interests (continuing operations)

(3,007

)

(4,650

)

(10,240

)

(9,235

)

Net income attributable to REX common shareholders (continuing operations)

8,161

21,267

27,697

47,572

Net income from discontinued operations, net of tax

-

132

-

4,395

Net loss attributable to noncontrolling interests (discontinued operations)

-

27

-

397

Net income attributable to REX common shareholders (discontinued operations)

-

159

-

4,792

Net income attributable to REX common shareholders

$

8,161

$

21,426

$

27,697

$

52,364

Weighted average shares outstanding - basic and diluted

17,416

17,818

17,638

17,946

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

$

0.47

$

1.19

$

1.57

$

2.65

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

-

0.01

-

0.27

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

$

0.47

$

1.20

$

1.57

$

2.92

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

January 31,

January 31,

ASSETS:

2023

2022

CURRENT ASSETS:

Cash and cash equivalents

$

69,612

$

229,846

Short-term investments

211,331

25,877

Restricted cash

1,735

2,222

Accounts receivable

25,162

25,821

Inventory

48,744

42,225

Refundable income taxes

2,962

6,677

Prepaid expenses and other

13,098

12,499

Total current assets

372,644

345,167

Property and equipment, net

135,497

137,554

Operating lease right-of-use assets

15,214

11,221

Deferred taxes and other assets

23,179

25,853

Equity method investment

33,045

30,566

TOTAL ASSETS

$

579,579

$

550,361

LIABILITIES AND EQUITY:

CURRENT LIABILITIES:

Accounts payable - trade

$

34,091

$

32,266

Current operating lease liabilities

5,180

4,600

Accrued expenses and other current liabilities

15,328

13,617

Total current liabilities

54,599

50,483

LONG-TERM LIABILITIES:

Deferred taxes

1,097

3,132

Long-term operating lease liabilities

9,855

6,390

Other long-term liabilities

3,034

2,794

Total long-term liabilities

13,986

12,316

EQUITY:

REX shareholders' equity:

Common stock

299

299

Paid-in capital

578

-

Retained earnings

640,826

611,607

Treasury stock

(193,721

)

(181,114

)

Total REX shareholders' equity

447,982

430,792

Noncontrolling interests

63,012

56,770

Total equity

510,994

487,562

TOTAL LIABILITIES AND EQUITY

$

579,579

$

550,361

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

Twelve Months Ended

January 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net income including noncontrolling interests

$

37,937

$

61,202

Net income from discontinued operations, net of tax

-

4,395

Net income from continuing operations

37,937

56,807

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation

17,976

18,031

Amortization of operating lease right-of-use assets

5,328

5,560

Income from equity method investments

(8,745

)

(6,624

)

Dividends received from equity method investments

6,266

5,514

Interest income from investments

(2,839

)

(43

)

Deferred income taxes

915

12,730

Stock based compensation expense

1,930

1,753

(Gain) loss on sale of property and equipment - net

(102

)

30

Changes in assets and liabilities:

Accounts receivable

659

(6,108

)

Inventories

(6,519

)

(4,799

)

Income taxes refundable

3,715

(1,103

)

Other assets

(452

)

199

Accounts payable - trade

1,478

16,005

Other liabilities

(2,752

)

475

Net cash provided by operating activities from continuing operations

54,795

98,427

Net cash used in operating activities from discontinued operations

-

(6,716

)

Net cash provided by operating activities

54,795

91,711

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures

(15,578

)

(5,126

)

Purchase of short-term investments

(399,350

)

(88,949

)

Sale of short-term investments

216,735

99,309

Deposits

(319

)

-

Other

5

60

Net cash (used in) provided by investing activities

(198,507

)

5,294

CASH FLOWS FROM FINANCING ACTIVITIES:

Treasury stock acquired

(13,012

)

(6,627

)

Payments to noncontrolling interests holders

(3,997

)

(4,772

)

Net cash used in financing activities from continuing operations

(17,009

)

(11,399

)

Net cash provided by financing activities from discontinued operations

-

304

Net cash used in financing activities

(17,009

)

(11,095

)

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

(160,721

)

85,910

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of year

232,068

146,158

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of year

$

71,347

$

232,068

Non-cash financing activities - Stock awards accrued

$

965

$

1,580

Non-cash financing activities - Stock awards issued

$

1,539

$

100

Non-cash investing activities - Accrued capital expenditures

$

425

$

78

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

$

9,321

$

4,103

View source version on businesswire.com: https://www.businesswire.com/news/home/20230323005236/en/

Contacts

Douglas Bruggeman
Chief Financial Officer
(937) 276‑3931

Joseph Jaffoni, Norberto Aja
JCIR
835-8500 / rex@jcir.com