Energy, Automobile, EV, Renewable News | REX American Resources Reports Fiscal 2021 Fourth Quarter Net Income Per Share Attributable to REX Common Shareholders of $3.61

REX American Resources Reports Fiscal 2021 Fourth Quarter Net Income Per Share Attributable to REX Common Shareholders of $3.61

March 23, 2022

DAYTON, Ohio–(BUSINESS WIRE)–REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 fourth quarter (“Q4 ‘21”) ended January 31, 2022. REX management will host a conference call and webcast today at 11:00 a.m. ET.

Conference Call:

212/231-2936

Webcast / Replay URL:

www.rexamerican.com

The webcast will be available for replay for 30 days.

REX American Resources’ Q4 ‘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, 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 ‘21 net sales and revenue were $212.0 million, compared with $126.0 million in Q4 ‘20. The year-over-year net sales and revenue increase was primarily due to higher pricing of ethanol, dried distillers grains and modified distillers grains. This was partially offset by an increase in corn and natural gas prices. Primarily reflecting these factors, Q4 ‘21 gross profit for the Company’s continuing operations increased to $38.8 million, compared with $8.3 million in Q4 ‘20. As a result, the Company reported Q4 ‘21 income before income taxes and non-controlling interests of $36.6 million, compared with income before income taxes and non-controlling interests of $4.8 million in the comparable year ago period.

Net income attributable to REX shareholders in Q4 ‘21 was $21.4 million, compared to net income of $3.5 million in Q4 ‘20. Q4 ‘21 basic and diluted net income per share attributable to REX common shareholders was $3.61, compared to net income per share of $0.59 in Q4 ‘20. Per share results in Q4 ‘21 and Q4 ‘20 are based on 5,939,000 and 6,008,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased with our strong performance in the fourth quarter and through-out fiscal 2021, including earnings per share of $3.61 and $8.75, respectively. These results reflect the continued success of our strategy, operational efficiency, effectiveness of our plants and operational team. I’m proud of our team and grateful for their efforts.”

“Looking ahead, we remain confident in our strategy and believe that we can leverage our balance sheet to take advantage of opportunities ahead of us and create additional value for our shareholders.”

Balance Sheet

At January 31, 2022, REX had cash and cash equivalents and short-term investments of $255.7 million, $42.9 million of which was at the parent company, and $212.8 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				Twelve Months Ended
	January 31,				January 31,
		2022		2021		2022		2021
Average selling price per gallon of ethanol	$	2.36	$	1.36	$	2.21	$	1.30
Average selling price per ton of dried distillers grains	$	192.20	$	161.42	$	197.86	$	144.73
Average selling price per pound of non-food grade corn oil	$	0.60	$	0.27	$	0.50	$	0.26
Average selling price per ton of modified distillers grains	$	89.99	$	81.76	$	85.19	$	64.80
Average cost per bushel of grain	$	5.83	$	4.04	$	5.99	$	3.73
Average cost of natural gas (per MmBtu)	$	5.85	$	3.25	$	4.27	$	3.00

Fourth 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 212/231-2936 (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 699 million gallons of ethanol over the twelve-month period ended January 31, 2022. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2022) by the ethanol production facilities in which it has ownership interests was approximately 282 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,
	2022		2021		2022		2021
Net sales and revenue	$	212,016	$	125,970	$	774,802	$	372,664
Cost of sales		173,239		117,696		677,242		353,131
Gross profit		38,777		8,274		97,560		19,533
Selling, general and administrative expenses		(6,032)		(4,232)		(28,476)		(17,639)
Equity in income of unconsolidated ethanol affiliates		3,861		332		6,624		500
Interest and other income, net		13		415		130		1,818
Income before income taxes and non-controlling interests		36,619		4,789		75,838		4,212
(Provision) benefit for income taxes		(10,702)		102		(19,031)		546
Net income from continuing operations including non-controlling interests		25,917		4,891		56,807		4,758
Net income attributable to non-controlling interests (continuing operations)		(4,650)		(1,547)		(9,235)		(2,878)
Net income attributable to REX common shareholders (continuing operations)		21,267		3,344		47,572		1,880

Net income from discontinued operations, net of tax		132		131		4,395		860
Net income attributable to noncontrolling interests (discontinued operations)		27		68		397		261
Net income attributable to REX common shareholders (discontinued operations)		159		199		4,792		1,121

Net income attributable to REX common shareholders	$	21,426	$	3,543	$	52,364	$	3,001

Weighted average shares outstanding – basic and diluted		5,939		6,008		5,982		6,167

Basic and diluted net income per share from continuing operations attributable to REX common shareholders	$	3.58	$	0.56	$	7.95	$	0.31
Basic and diluted net income per share from discontinued operations attributable to REX common shareholders		0.03		0.03		0.80		0.18
Basic and diluted net income per share attributable to REX common shareholders	$	3.61	$	0.59	$	8.75	$	0.49

– balance sheets follow –

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
*(in thousands)*
*Unaudited*


	January 31,		January 31,
ASSETS	2022		2021
CURRENT ASSETS:
Cash and cash equivalents	$	229,846	$	144,501
Short-term investments		25,877		36,194
Restricted cash		2,222		1,657
Accounts receivable		25,821		19,713
Inventory		42,225		37,426
Refundable income taxes		6,677		6,020
Prepaid expenses and other		12,499		12,751
Current assets held for sale		–		488
Total current assets		345,167		258,750
Property and equipment-net		137,554		150,861
Operating lease right-of-use assets		11,221		12,678
Deferred taxes and other assets		25,853		25,275
Equity method investment		30,566		29,456
Assets held for sale		–		2,325
TOTAL ASSETS	$	550,361	$	479,345
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable – trade	$	32,266	$	16,573
Current operating lease liabilities		4,600		4,875
Accrued expenses and other current liabilities		13,617		8,754
Current liabilities held for sale		–		535
Total current liabilities		50,483		30,737
LONG TERM LIABILITIES:
Deferred taxes		3,132		3,713
Long-term operating lease liabilities		6,390		7,439
Other long-term liabilities		2,794		273
Total long-term liabilities		12,316		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		149,334		149,110
Retained earnings		642,350		589,986
Treasury stock, 23,933 shares and 23,861 shares, respectively		(361,191)		(354,612)
Total REX shareholders’ equity		430,792		384,783
Non-controlling interests		56,770		52,400
Total equity		487,562		437,183
TOTAL LIABILITIES AND EQUITY	$	550,361	$	479,345

– statements of cash flows follow –

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
*(in thousands)*
*Unaudited*

	Twelve Months Ended
	January 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	61,202	$	5,618
Net income from discontinued operations, net of tax		4,395		860
Net income from continuing operations		56,807		4,758
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		18,031		18,116
Amortization of operating lease right-of-use assets		5,560		5,358
Stock based compensation expense		1,753		264
Income from equity method investments		(6,624)		(500)
Dividends received from equity method investments		5,514		3,508
Interest income from investments		(43)		(216)
Deferred income tax		12,730		(1,110)
Loss (gain) on disposal of property and equipment		30		(58)
Changes in assets and liabilities:
Accounts receivable		(6,108)		(6,744)
Inventory		(4,799)		(2,307)
Refundable income taxes		(1,103)		(276)
Prepaid expenses and other assets		199		(3,243)
Accounts payable-trade		16,005		(2,618)
Other liabilities		475		(3,523)
Net cash provided by operating activities from continuing operations		98,427		11,409
Net cash used in operating activities from discontinued operations		(6,716)		(2,786)
Net cash provided by operating activities		91,711		8,623
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(5,126)		(10,412)
Purchases of short-term investments		(88,949)		(96,233)
Sales of short-term investments		99,309		86,328
Other		60		(474)
Net cash provided by (used in) investing activities		5,294		(20,791)
CASH FLOWS FROM FINANCING ACTIVITIES:
Treasury stock acquired		(6,627)		(19,629)
Payments to noncontrolling interests holders		(4,772)		(2,928)
Net cash used in financing activities from continuing operations		(11,399)		(22,557)
Net cash provided by financing activities from discontinued operations		304		112
Net cash used in financing activities		(11,095)		(22,445)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		85,910		(34,613)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period		146,158		180,771
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period	$	232,068	$	146,158
Non-cash financing activities – Stock awards issued	$	100	$	241
Non-cash financing activities – Stock awards accrued	$	1,580	$	99
Non-cash investing activities – Accrued capital expenditures	$	78	$	390
Right-of use assets acquired and liabilities incurred upon lease execution	$	4,103	$	1,863