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

DAYTON, Ohio–(BUSINESS WIRE)–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

$

Contacts

Douglas Bruggeman

Chief Financial Officer

(937) 276‑3931

Joseph Jaffoni, Norberto Aja

JCIR

(212) 835-8500 / rex@jcir.com

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