Le Lézard
Classified in: Environment, Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

REX American Resources Reports Fiscal 2022 First Quarter Net Income Per Share Attributable to Rex Common Shareholders Of $0.87


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.

"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.

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 CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

 

 

 

 

 

 

April 30,

 

January 31,

ASSETS:

 

2022

 

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 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

 

$

-

 

 


These press releases may also interest you

at 00:08
NaaS Technology Inc. ("NaaS", the "Company"), China's first listed pure play electric vehicle ("EV") charging service company, held a bell-ringing ceremony to celebrate the Company's public listing on the NASDAQ at its headquarters in Anji, Zhejiang...

30 jun 2022
Viettel Group and NVIDIA signed a Memorandum of Understanding (MoU) to establish a strategic partnership on using Artificial Intelligence (AI) to advance Viettel and Vietnam's technology research and solutions. Viettel is the first Vietnam company...

30 jun 2022
Think Together, California's leading nonprofit provider of school improvement, expanded learning and afterschool programs, today announced the promotion of Richard Tran, M. Ed. to General Manager of the organization's Bay Area region. Tran has more...

30 jun 2022
MagIron LLC ("MagIron" or the "Company) today announced that it has completed the purchase of selected assets from the receivership estate of Prairie River Minerals, LLC ("PRM") (the "Acquisition"). This follows entry of a court order approving the...

30 jun 2022
TSX VENTURE COMPANIES AD4 CAPITAL CORP. ("ADJ.P")BULLETIN TYPE:  Resume TradingBULLETIN DATE:  June 30, 2022TSX Venture Tier 2 Company Further to the bulletin dated June 24, 2022, effective at market open on July 5, 2022, shares of the Company will...

30 jun 2022
Hico Capital, US based investment arm of SK networks, has invested in a US AgTech startup. SK networks announced on June...



News published on 25 may 2022 at 07:05 and distributed by: