REX American Resources Fiscal Second Quarter Diluted EPS Rise Seven-Fold to a Record $0.71 as Q2'13

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REX American Resources Fiscal Second Quarter Diluted EPS Rise Seven-Fold to a Record $0.71 as Q2'13 Net Income Increases to $5.8 Million from $0.8 Million

DAYTON, Ohio--(BUSINESS WIRE)-- REX American Resources Corporation (NYS: REX) today reported financial results for its fiscal 2013 second quarter ("Q2 '13") ended July 31, 2013. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

Conference Call:

   (212) 271-4651
 

Webcast / Replay URL:

www.rexamerican.com/Corp/Page4.aspx

 
    The webcast will be available for replay for 30 days
 

REX American Resources' Q2 '13 results principally reflect its alternative energy segment interests in seven ethanol production facilities. The operations of One Earth Energy, LLC ("One Earth") and NuGen Energy, LLC ("NuGen") are consolidated, while those of its five other plants are reported as equity in income of unconsolidated ethanol affiliates.


Reflecting improved ethanol crush spread margins since the beginning of calendar 2013 as well as higher year-over-year prices for ethanol and dried and modified distillers grains, Q2 '13 net income attributable to REX shareholders rose 623% to $5.8 million, compared with $0.8 million in Q2 '12, while Q2 '13 diluted net income per share attributable to REX common shareholders rose 610% to $0.71, from $0.10 in Q2 '12.

REX's Q2 '13 net sales and revenue rose 15% to $175.7 million, from $153.2 million in Q2 '12. Reflecting the improved ethanol production industry environment, REX generated gross profit of $11.0 million in Q2' 13, compared with $7.0 million in Q2' 12. In Q2 '13, equity in income of unconsolidated ethanol affiliates rose to $4.6 million, compared with a $0.5 million loss in Q2 '12. REX's Q2 '13 income from continuing operations before income taxes and non-controlling interests was $10.4 million, compared with $1.7 million in Q2 '12. Q2 '13 income from continuing operations attributable to REX shareholders net of tax was $5.8 million, or $0.71 per diluted share, compared with $0.7 million, or $0.08 per diluted share, in Q2 '12. Per share results in Q2 '13 and Q2 '12 are based on 8,204,000 and 8,385,000 diluted weighted average shares outstanding, respectively.

REX CEO, Stuart Rose, commented, "REX generated the highest level of second quarter net income since entering the ethanol industry and the highest level of second quarter earnings per share in the Company's history as improved ethanol crush spread margins and higher prices for ethanol and its by-products, combined with our operating discipline at both the plant and corporate level, drove strong results at both our consolidated and unconsolidated ethanol operations.

"Our interests in ethanol plants across the corn belt, all of which were built by Fagen, Inc. utilizing ICM, Inc. technology, have positioned REX as a leader in the ethanol industry. While the profitability of ethanol, distillers grains and corn oil production remains subject to commodity price fluctuations, we consider our operating structure and financial model to be among the best in the industry. This allowed our ethanol plants to outperform the industry and achieve significant earnings growth on improved crush spreads as reflected by the strong second quarter results."

Balance Sheet and Share Repurchase Program

At July 31, 2013, REX had cash and cash equivalents of $68.8 million, $47.6 million of which was at the parent company and $21.2 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $69.1 million at January 31, 2013, $47.8 million of which was at the parent and $21.3 million of which was at its consolidated ethanol production facilities.

REX repurchased 15,564 shares of its common stock in open market transactions in Q2 '13 at an average price per share of $18.79. The Company is currently authorized to repurchase up to an additional 370,598 shares of common stock. Taking into account all share repurchases to date, REX has 8,168,338 shares outstanding.

At July 31, 2013, REX had lease agreements, as landlord for six former retail store locations. REX has 7 owned former retail stores that were vacant and two which had seasonal leases at July 31, 2013, all of which are being marketed for sale or lease. In addition, one former distribution center is partially occupied by the REX corporate office and the remainder is leased. The real estate segment revenue is primarily comprised of rental income derived from these sites.

 

Segment Income Statement Data:

 
   

Three Months
Ended

  

Six Months
Ended

($ in thousands)July 31,July 31,
2013  2012  2013  2012
Net sales and revenue:    
Alternative energy (1)$175,290$152,778$353,614$303,442
Real estate 427  386  850  729 
Total net sales and revenues$175,717 $153,164 $354,464 $304,171 
 
Gross profit (loss):
Alternative energy (1)$10,890$7,027$19,916$12,537
Real estate 115  (69) 195  (81)
Total gross profit$11,005 $6,958 $20,111 $12,456 
 
Segment profit (loss):
Alternative energy segment (1)$11,114$2,432$17,740$4,901
Real estate segment53(114)72(216)
Corporate expense(732)(623)(1,432)(1,131)
Interest expense(8)(21)(17)(23)
Interest income 18  19  36  49 

Income from continuing operations before
income taxes and non-controlling interests

$

10,445

 

$

1,693

 

$

16,399

 

$

3,580

 
 

(1)Includes results attributable to non-controlling interests of approximately 26% for One Earth, and approximately 1% for NuGen.

The following table summarizes select data related to the Company's consolidated alternative energy interests:

 
   

Three Months
Ended

  

Six Months
Ended

July 31,July 31,

2013

  

2012

2013

  

2012

Average selling price per gallon of ethanol$2.38$2.12$2.36$2.13
Average selling price per ton of dried distillers grains

$

243.49

$

216.95

$

253.32

$

206.99

Average selling price per ton of modified distillers grains

$

108.66

$

103.15

$

123.51

$

99.77

Average cost per bushel of grain$7.15$6.49$7.29$6.46
Average cost of natural gas (per mmbtu)$4.42$3.32$4.35$3.72
 
 

Segment Balance Sheet Data:

 
   July 31, 2013  January 31, 2013
Assets:
Alternative energy$346,313$337,857
Real estate12,42213,326
Corporate 49,967 54,147
Total assets$408,702$405,330
 
 

Supplemental Data Related to REX's Alternative Energy Interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of July 31, 2013
(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, LLC (Gibson City, IL)  112.3  74%  

83.2

NuGen Energy, LLC (Marion, SD)  112.2  99%  111.6
Patriot Holdings, LLC (Annawan, IL)  118.3  27%  31.4

Big River Resources West Burlington, LLC (West
Burlington, IA)

  97.5  10%  9.5
Big River Resources Galva, LLC (Galva, IL)  103.6  10%  10.1
Big River United Energy, LLC (Dyersville, IA)  106.6  5%  5.2

Big River Resources Boyceville, LLC
(Boyceville, WI)

  55.8  10%  5.4
Total  706.3  n/a  256.4
 

About REX American Resources Corporation

REX American Resources has interests in seven ethanol production facilities which in aggregate shipped approximately 706 million gallons of ethanol over the twelve month period ended July 31, 2013. REX's effective ownership of the trailing twelve month gallons shipped (for the twelve months ended July 31, 2013) by the ethanol production facilities in which it has ownership interests was approximately 256 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 impact of legislative changes, the price volatility and availability of corn, dried and modified distillers grains, ethanol, corn oil, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, the effects of terrorism or acts of war, changes in real estate market conditions and the impact of Internal Revenue Service audits. The Company does not intend to update publicly any forward-looking statements except as required by law.

- statement of operations follow -

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited

 
   Three Months Ended  Six Months Ended

July 31,

July 31,

2013

  

2012

2013

  

2012

Net sales and revenue$175,717$153,164$354,464$304,171
Cost of sales 164,712  146,206  334,353  291,715 
Gross profit11,0056,95820,11112,456
Selling, general and administrative expenses(4,194)(3,573)(7,935)(6,175)
Equity in income (loss) of unconsolidated ethanol affiliates4,628(481)6,227(39)
Interest and other income45418669
Interest expense(1,029)(1,173)(2,084)(2,505)
Losses on derivative financial instruments, net (10) (79) (6) (226)
Income from continuing operations before income taxes10,4451,69316,3993,580
Provision for income taxes (3,744) (538) (5,855) (1,085)
Income from continuing operations6,7011,15510,5442,495
Income from discontinued operations, net of tax4377142234
Gain on disposal of discontinued operations, net of tax 1  57   Read Full Story

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