Business Wire | Dec 1, 2021 07:00AM EST

REX American Resources Reports Fiscal 2021 Third Quarter Net Income Per Share Attributable to Rex Common Shareholders Increase of 78% To $2.56

Dec. 01, 2021

DAYTON, Ohio--(BUSINESS WIRE)--Dec. 01, 2021--REX American Resources Corporation (NYSE: REX) ("REX" or "the Company") today reported financial results for its fiscal 2021 third quarter ("Q3 '21") ended October 31, 2021. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call: 212/231-2932

Webcast / Replay URL: www.rexamerican.com

The webcast will be available for replay for 30 days.

REX American Resources' Q3 '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 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 Q3 '21 net sales and revenue were $203.1 million, compared with $124.2 million in Q3 '20. The year-over-year net sales and revenue increase was primarily due to higher ethanol, distillers grains, and corn oil pricing. Reflecting the revenue growth, which was partially offset by increased costs in corn and natural gas, Q3 '21 gross profit for the Company's continuing operations increased to $25.2 million, compared with $18.9 million in Q3 '20. As a result, the Company reported Q3 '21 income before income taxes and non-controlling interests from continuing operations of $19.2 million, compared with $16.3 million in the comparable year ago period.

Net income attributable to REX shareholders in Q3 '21 was $15.3 million, compared to $8.8 million in Q3 '20. Q3 '21 basic and diluted net income per share attributable to REX common shareholders was $2.56, compared to net income per share of $1.44 in Q3 '20. Per share results in Q3 '21 and Q3 '20 are based on 5,963,000 and 6,143,000 diluted weighted average shares outstanding, respectively.

REX American Resources' Chief Executive Officer, Zafar Rizvi, commented, "We are pleased to report strong results for the fiscal third quarter and year to date, including earnings per share of $2.56 for the quarter and $5.16 for the nine months ended October 31, 2021. We experienced significantly improved pricing across all of our ethanol products, which more than offset higher input costs and which led to improved results.

"We remain confident in our steadfast principles of ethanol production, which combined with our focus on efficiencies and the operational excellence of our plants continues to create additional value for our shareholders. I would like to again recognize the hard work and dedication of our employees as we navigated through the past 18 months."

Balance Sheet

At October 31, 2021, REX had cash and cash equivalents and short-term investments of $219.0 million, $33.9 million of which was at the parent company, and $185.1 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.

During the fiscal third quarter ended October 31, 2021 the Company repurchased 66,792 shares of its common stock at a cost of $5.3 million. The Company is currently authorized to repurchase up to an additional 449,413 shares of common stock and has approximately 5,920,351 shares of common stock outstanding.

The following table summarizes select data related to REX'sconsolidated alternative energy interests:

Three Months Nine Months Ended Ended October 31, October 31,

2021 2020 2021 2020

Average selling price per gallon of $ 2.31 $ 1.31 $ 2.12 $ 1.28ethanol

Average selling price per ton of dried $ 184.85 $ 129.38 $ 200.02 $ 136.49distillers grains

Average selling price per pound of $ 0.59 $ 0.24 $ 0.47 $ 0.25non-food grade corn oil

Average selling price per ton of $ 92.10 $ 56.68 $ 83.97 $ 52.44modified distillers grains

Average cost per bushel of grain $ 6.45 $ 3.28 $ 6.05 $ 3.57

Average cost of natural gas (per MmBtu) $ 4.58 $ 2.09 $ 3.69 $ 2.87

Supplemental data related to REX's ethanol interests:REX American Resources Corporation Ethanol Ownership Interests/Effective Annual Gallons Shipped as of October 31, 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, LLCGibson City, IL

137.9

75.8%

104.5

NuGen Energy, LLCMarion, SD

137.8

99.7%

137.4

Big River Resources West Burlington, LLCWest Burlington, IA

110.3

10.3%

11.4

Big River Resources Galva, LLCGalva, IL

116.0

10.3%

11.9

Big River United Energy, LLCDyersville, IA

125.3

5.7%

7.1

Big River Resources Boyceville, LLCBoyceville, WI

63.6

10.3%

6.6

Total

690.9

n/a

278.9

Third 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 212/231-2932 (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 691 million gallons of ethanol over the twelve-month period ended October 31, 2021. REX's effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended October 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 279 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, 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 -

Supplemental data related to REX's ethanol interests:REX American Resources CorporationEthanol Ownership Interests/Effective Annual Gallons Shipped as of October 31,2021

(gallons in millions)

Trailing Current REX's Current Effective Twelve REX Ownership of TrailingEntity Months Ownership Twelve Gallons Interest Month Gallons Shipped Shipped

One Earth Energy, LLC 137.9 75.8% 104.5Gibson City, IL

NuGen Energy, LLC 137.8 99.7% 137.4Marion, SD

Big River Resources WestBurlington, LLC 110.3 10.3% 11.4West Burlington, IA

Big River Resources Galva, LLC 116.0 10.3% 11.9Galva, IL

Big River United Energy, LLC 125.3 5.7% 7.1Dyersville, IA

Big River Resources Boyceville, LLC 63.6 10.3% 6.6Boyceville, WI

Total 690.9 n/a 278.9

Third 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 212/231-2932 (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 691 million gallons of ethanol over the twelve-month period ended October 31, 2021. REX's effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended October 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 279 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, 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 SUBSIDIARIESConsolidated Statements of Operations(in thousands, except per share amounts)Unaudited



Three Months Nine Months Ended Ended October 31, October 31,

2021 2020 2021 2020

Net sales and revenue $ 203,066 $ 124,217 $ 562,786 $ 246,694

Cost of sales 177,914 105,288 504,003 235,435

Gross profit (loss) 25,152 18,929 58,783 11,259

Selling, general and (6,310 ) (4,269 ) (22,444 ) (13,407 )administrative expenses

Equity in income (loss) ofunconsolidated ethanol 349 1,152 2,763 168 affiliates

Interest and other income, 35 537 117 1,403 net

Income (loss) before incometaxes and non-controlling 19,226 16,349 39,219 (577 )interests

(Provision) benefit for (4,338 ) (5,037 ) (8,329 ) 444 income taxes

Net income (loss) fromcontinuing operations 14,888 11,312 30,890 (133including non-controlling )interests

Net income attributable tonon-controlling interests (1,562 ) (2,276 ) (4,585 ) (1,331 )(continuing operations)

Net income (loss)attributable to REX common 13,326 9,036 26,305 (1,464 )shareholders (continuingoperations)



Net income (loss) fromdiscontinued operations, 1,815 (253 ) 4,263 729net of tax

Net income attributable tononcontrolling interests 137 58 370 193 (discontinued operations)

Net income (loss)attributable to REX common 1,952 (195 ) 4,633 922 shareholders (discontinuedoperations)



Net income (loss)attributable to REX common $ 15,278 $ 8,841 $ 30,938 $ (542 )shareholders



Weighted average sharesoutstanding - basic and 5,963 6,143 5,994 6,221 diluted



Basic and diluted netincome (loss) per sharefrom continuing operations $ 2.23 $ 1.47 $ 4.39 $ (0.24 )attributable to REX commonshareholders

Basic and diluted netincome (loss) per share from discontinuedoperations attributable to 0.33 (0.03 ) 0.77 0.15 REX common shareholders

Basic and diluted netincome (loss) per share $ 2.56 $ 1.44 $ 5.16 $ (0.09 )attributable to REX commonshareholders

- balance sheets follow -

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

ASSETS October 31, January 31, 2021 2021

CURRENT ASSETS:

Cash and cash equivalents $ 197,395 $ 144,501

Short-term investments 21,620 36,194

Restricted cash 1,737 1,657

Accounts receivable 40,026 19,713

Inventory 29,753 37,426

Refundable income taxes 5,930 6,020

Prepaid expenses and other 10,389 12,751

Current assets held for sale 392 488

Total current assets 307,242 258,750

Property and equipment-net 141,205 150,861

Operating lease right-of-use assets 11,817 12,678

Deferred taxes and other assets 33,190 25,275

Equity method investment 30,715 29,456

Assets held for sale 233 2,325

TOTAL ASSETS $ 524,402 $ 479,345

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Accounts payable - trade $ 27,133 $ 16,573

Current operating lease liabilities 4,999 4,875

Accrued expenses and other current liabilities 14,121 8,754

Current liabilities held for sale 282 535

Total current liabilities 46,535 30,737

LONG TERM LIABILITIES:

Deferred taxes 4,030 3,713

Long-term operating lease liabilities 6,553 7,439

Other long-term liabilities 2,581 273

Total long-term liabilities 13,164 11,425

COMMITMENTS AND CONTINGENCIES

EQUITY:

REX shareholders' equity:

Common stock, 45,000 shares authorized, 29,853 299 299 shares issued at par

Paid in capital 149,299 149,110

Retained earnings 620,924 589,986

Treasury stock, 23,933 shares (361,199 ) (354,612 )

Total REX shareholders' equity 409,323 384,783

Non-controlling interests 55,380 52,400

Total equity 464,703 437,183

TOTAL LIABILITIES AND EQUITY $ 524,402 $ 479,345

- statements of cash flows follow -

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



Nine Months Ended October 31,

2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $ 35,153 $ 596

Net income from discontinued operations, net of tax 4,263 729

Net income (loss) from continuing operations 30,890 (133 )

Adjustments to reconcile net income (loss) to net cash

provided by (used in) operating activities:

Depreciation 13,505 13,604

Amortization of operating lease right-of-use assets 4,128 3,982

Stock based compensation expense 1,100 122

Income from equity method investments (2,763 ) (168 )

Dividends received from equity method investments 1,504 2,506

Interest income from investments (36 ) (200 )

Deferred income tax 5,840 (356 )

Gain on disposal of property and equipment (1 ) (58 )

Changes in assets and liabilities:

Accounts receivable (20,313 ) 473

Inventory 7,673 14,000

Refundable income taxes (332 ) (130 )

Other assets 1,912 (611 )

Accounts payable-trade 10,916 (4,361 )

Other liabilities 2,776 (4,966 )

Net cash provided by operating activities from 56,799 23,704 continuing operations

Net cash used in operating activities from (6,368 ) (2,205 )discontinued operations

Net cash provided by operating activities 50,431 21,499

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures (4,245 ) (6,610 )

Purchases of short-term investments (67,412 ) (68,225 )

Sales of short-term investments 82,022 65,282

Other 40 (474 )

Net cash provided by (used in) investing activities 10,405 (10,027 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Treasury stock acquired (6,627 ) (18,089 )

Payments to noncontrolling interests holders (1,515 ) (283 )

Net cash used in financing activities from continuing (8,142 ) (18,372 )operations

Net cash provided by financing activities from 280 88 discontinued operations

Net cash used in financing activities (7,862 ) (18,284 )

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS 52,974 (6,812 )AND RESTRICTED CASH

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning 146,158 180,771 of period

CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of $ 199,132 $ 173,959 period

Non-cash financing activities - Stock awards issued $ 100 $ 240

Non-cash financing activities - Stock awards accrued $ 972 $ -

Non-cash investing activities - Accrued capital $ 34 $ 198 expenditures

Right-of use assets acquired and liabilities incurred $ 3,267 $ 1,863 upon lease execution

View source version on businesswire.com: https://www.businesswire.com/news/home/20211201005242/en/

CONTACT: Douglas Bruggeman Chief Financial Officer (937) 276?3931

CONTACT: Joseph Jaffoni, Norberto Aja JCIR (212) 835-8500 rex@jcir.com