Exhibit 99 

REX American logo small 7-10

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES REPORTS

FOURTH QUARTER DILUTED EPS OF $0.70

 

Full Year Diluted EPS of $1.18

 

Dayton, Ohio, (March 26, 2020) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2019 fourth quarter (“Q4 ‘19”) ended January 31, 2020. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

Conference Call:

Webcast / Replay URL:

 

212/231-2904

www.rexamerican.com/Corp/Page4.aspx

The webcast will be available for replay for 30 days.

 

REX American Resources’ Q4 ‘19 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 those of its four other ethanol plants are reported as equity in income of unconsolidated ethanol affiliates. The Company reports results for its two business segments as ethanol and by-products, and refined coal.

 

REX’s Q4 ‘19 net sales and revenue rose to $120.9 million, compared with $113.3 million in Q4 ‘18. The year-over-year net sales and revenue increase was primarily due to higher ethanol pricing on a year-to-year basis, which more than offset lower dried distillers grains pricing as well as a 9.2% decrease in ethanol gallons sold. Primarily reflecting these factors, which offset a 14.4% year-over-year increase in corn prices, Q4 ‘19 gross profit for the Company’s ethanol and by-products segment rose to $8.1 million, compared with $5.4 million in Q4 ‘18. As a result, the ethanol and by-products segment income before income taxes increased to $5.0 million in Q4 ‘19, compared to $1.4 million in Q4 ‘18. The Company’s refined coal operation incurred a $1.5 million gross loss and a $1.4 million loss before income taxes in Q4 ‘19, compared to a $3.2 million gross loss and a loss before income taxes of $3.3 million in Q4 ‘18. REX reported a Q4 ‘19 income before income taxes and non-controlling interests of $2.8 million, compared with a loss before income taxes and non-controlling interests of $1.7 million in the comparable year ago period. While the refined coal operation negatively impacted gross profit and income before income taxes, it contributed a tax benefit of $1.5 million and $4.8 million for Q4 ’19 and Q4 ‘18, respectively.

 

Net income attributable to REX shareholders in Q4 ‘19 increased to $4.4 million, compared to $1.1 million in Q4 ‘18. Q4 ‘19 basic and diluted net income per share attributable to REX common shareholders was $0.70, compared to net income per share of $0.17 in Q4 ‘18. Per share results in Q4 ‘19 and Q4 ‘18 are based on 6,320,000 and 6,341,000 diluted weighted average shares outstanding, respectively.

-more-

 

 

REX American Resources Q4 ’19 Results, 3/26/20 page 2

 

 

Segment Income Statement Data:

  

Three Months

Ended

 

Twelve Months

Ended

($ in thousands)  January 31,  January 31,
   2020  2019  2020  2019
Net sales and revenue:                    
Ethanol & By-Products (1)  $120,874   $113,168   $417,700   $485,885 
Refined coal (2) (3)   46    176    334    786 
Total net sales and revenue  $120,920   $113,344   $418,034   $486,671 
                     
Gross (loss) profit:                    
Ethanol & By-Products (1)  $8,090   $5,381   $20,402   $43,856 
Refined coal (2)   (1,497)   (3,163)   (7,917)   (13,641)
Total gross profit  $6,593   $2,218   $12,485   $30,215 
                     
Income (loss) before income taxes:                    
Ethanol & By-Products (1)  $4,979   $1,354   $8,469   $31,545 
Refined coal (2)   (1,428)   (3,317)   (7,778)   (15,204)
Corporate and other   (714)   288    (1,860)   (1,753)
Total income (loss) before income taxes  $2,837   $(1,675)  $(1,169)  $14,588 

 

Benefit (provision) for income taxes:            
Ethanol & By-Products  $1,688   $(539)  $1,528   $(2,343)
Refined coal   1,546    4,759    10,828    24,674 
Corporate and other   178    354    457    591 
Total benefit for income taxes  $3,412   $4,574   $12,813   $22,922 

 

Segment (loss) profit:            
Ethanol & By-Products  $4,756   $(450)  $5,439   $23,346 
Refined coal   182    1,597    3,391    10,148 
Corporate and other   (536)   (90)   (1,403)   (1,849)
Net (loss) income attributable to REX common shareholders  $4,402   $1,057   $7,427   $31,645 

 

 

 

(1)Includes results attributable to non-controlling interests of approximately 25% for One Earth and approximately 1% for NuGen.
(2)Includes results attributable to non-controlling interests of approximately 5%.
(3)Refined coal sales are reported net of the cost of coal.

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “The fourth quarter of fiscal 2019 saw the crush spread improve over the year-ago period primarily due to higher ethanol pricing. As a result, we were able to improve the ethanol and by-products segment gross profit by 50%, allowing us to generate $0.70 of income per share. That brings fiscal full year 2019 income per share to $1.18, marking yet another profitable year for the Company.

 

“We entered fiscal 2020 facing continued challenges, including the recent decline in the crude market and the advent of the COVID-19 pandemic and its impact on fuel demand and the economy at large. These challenges led to further declines in recent crush spread levels which has led to the recent idling of our NuGen plant and which may warrant similar actions at the One Earth plant to help preserve our financial liquidity and flexibility. While the operating environment remains severely challenged at this time, we remain focused on creating shareholder value through our disciplined operating approach, the strength and health of our balance sheet, which includes cash and cash equivalents in excess of $205 million and working capital of $239.5 million, no bank debt and the ongoing authorization from the Board of Directors to purchase up to 350,000 common shares.”

 

-more-

 

 

 

REX American Resources Q4 ’19 Results, 3/26/20 page 3

 

Balance Sheet

At January 31, 2020, REX had cash and cash equivalents and short-term investment of $205.7 million, $62.3 million of which was at the parent company, and $143.4 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2019, of $203.5 million, $54.8 million of which was at the parent company, and $148.7 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,
   2020  2019  2020  2019
Average selling price per gallon of ethanol  $1.43   $1.17   $1.37   $1.29 
Average selling price per ton of dried distillers grains  $138.19   $143.20   $137.68   $142.20 
Average selling price per pound of non-food
grade corn oil
  $0.24   $0.25   $0.25   $0.25 
Average selling price per ton of modified distillers grains  $59.62   $58.30   $59.66   $59.42 
Average cost per bushel of grain  $3.90   $3.41   $3.82   $3.46 
Average cost of natural gas (per mnbtu)  $3.17   $4.07   $3.04   $3.33 
                     

 

Supplemental data related to REX’s alternative energy interests:

 

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of January 31, 2020

(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)   140.5    75.2%   105.7 
NuGen Energy, LLC (Marion, SD)   94.8    99.5%   94.3 
Big River Resources West Burlington, LLC (West Burlington, IA)   111.6    10.3%   11.5 
Big River Resources Galva, LLC (Galva, IL)   121.2    10.3%   12.5 
Big River United Energy, LLC (Dyersville, IA)   131.8    5.7%   7.5 

Big River Resources Boyceville, LLC

(Boyceville, WI)

   60.1    10.3%   6.2 
Total   660.0    n/a    237.7 

 

-more-

 

 

REX American Resources Q4 ’19 Results, 3/26/20 page 4

 

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 212/231-2904 (domestic and international callers).

 

Participants can also listen to a live webcast of the call on the Company’s website, www.rexamerican.com/Corp/Page4.aspx. A webcast replay will be available for 30 days following the live event at www.rexamerican.com/Corp/Page4.aspx.

 

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 660 million gallons of ethanol over the twelve-month period ended January 31, 2020. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2020) by the ethanol production facilities in which it has ownership interests was approximately 238 million gallons. In addition, the Company acquired a refined coal operation on August 10, 2017. 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.

 

Contact:

Douglas Bruggeman

Chief Financial Officer

(937) 276-3931

Joseph Jaffoni, Norberto Aja

JCIR

(212) 835-8500

rex@jcir.com

- statements of operations follow -

 

 

REX American Resources Q4 ’19 Results, 3/26/20 page 5

 

 

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,
   2020  2019  2020  2019
Net sales and revenue  $120,920   $113,344   $418,034   $486,671 
Cost of sales   114,327    111,126    405,549    456,456 
Gross profit   6,593    2,218    12,485    30,215 
Selling, general and administrative expenses   (5,629)   (4,476)   (19,258)   (20,551)
Equity in income (loss) of unconsolidated ethanol affiliates   1,042    (646)   1,392    1,536 
Interest and other income, net   831    1,229    4,212    3,388 
Income (loss) before income taxes and non-controlling interests   2,837    (1,675)   (1,169)   14,588 
Benefit for income taxes   3,412    4,574    12,813    22,922 
Net income including non-controlling interests   6,249    2,899    11,644    37,510 
Net income attributable to non-controlling interests   (1,847)   (1,842)   (4,217)   (5,865)
Net income attributable to REX common shareholders  $4,402   $1,057   $7,427   $31,645 
                              
Weighted average shares outstanding – basic and diluted   6,320    6,341    6,318    6,440 
                     
Basic and diluted net income per share attributable to REX common shareholders  $0.70   $0.17   $1.18   $4.91 
                     

 

 

- balance sheets follow -

 

 

 

REX American Resources Q4 ’19 Results, 3/26/20 page 6

 

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

ASSETS             January 31,
2020
  January 31,
2019
CURRENT ASSETS:          
Cash and cash equivalents  $179,658   $188,531 
Restricted cash   1,113    281 
Short-term investments   26,073    14,975 
Accounts receivable   12,969    11,378 
Inventory   35,634    18,477 
Refundable income taxes   6,029    7,695 
Prepaid expenses and other   9,659    9,284 
        Total current assets   271,135    250,621 
Property and equipment-net   163,327    182,521 
Operating lease right-of-use assets   16,173    —   
Other assets   17,403    6,176 
Equity method investment   32,464    32,075 
TOTAL ASSETS  $500,502   $471,393 
LIABILITIES AND EQUITY
          
CURRENT LIABILITIES:          
Accounts payable – trade  $18,900   $7,463 
Current operating lease liabilities   4,935    —   
Accrued expenses and other current liabilities   7,764    9,546 
        Total current liabilities   31,599    17,009 
LONG TERM LIABILITIES:          
Deferred taxes   4,334    4,185 
Long-term operating lease liabilities   10,688    —   
Other long-term liabilities   275    4,928 
        Total long-term liabilities   15,297    9,113 
COMMITMENTS AND CONTINGENCIES EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   148,789    148,273 
Retained earnings   586,985    579,558 
Treasury stock, 23,561 and 23,580 shares, respectively   (335,066)   (335,193)
Total REX shareholders’ equity   401,007    392,937 
Non-controlling interests   52,599    52,334 
       Total equity   453,606    445,271 
TOTAL LIABILITIES AND EQUITY  $500,502   $471,393 

 

 

 

- statements of cash flows follow -

 

 

 

 

REX American Resources Q4 ’19 Results, 3/26/20 page 7

 

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

   Fiscal Years Ended
January 31,
   2020    2019
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $11,644   $37,510 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation   23,007    24,828 
Amortization of operating lease right-of-use assets   6,304    —   
Stock based compensation expense   397    669 
Income from equity method investments   (1,392)   (1,536)
Dividends received from equity method investments   1,003    4,010 
Interest income from investments   (73)   (1,077)
Deferred income tax   (11,070)   (23,364)
Loss on disposal of property and equipment   —      104 
Changes in assets and liabilities:          
Accounts receivable   (1,591)   1,535 
Inventory   (17,157)   2,278 
Prepaid expenses and other assets   (752)   5,217 
Income taxes refundable   1,666    (1,083)
Accounts payable-trade   11,400    339 
Other liabilities   (13,043)   (1,499)
Net cash provided by operating activities   10,343    47,931 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (3,776)   (10,775)
Purchases of short-term investments   (26,025)   (125,989)
Sales of short-term investments   15,000    112,091 
Restricted investments and deposits   —      5 
Loan receivable repayments   369    27 
Net cash used in investing activities   (14,432)   (24,641)
CASH FLOWS FROM FINANCING ACTIVITIES:          
Treasury stock acquired   —      (21,855)
Payments to noncontrolling interests holders   (4,264)   (4,489)
Capital contributions from minority investor   312    524 
Net cash used in financing activities   (3,952)   (25,820)
NET DECREASE IN CASH, CASH EQUIVALENTS
AND RESTRICTED CASH
   (8,041)   (2,530)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period   188,812    191,342 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period  $180,771   $188,812 
Non cash financing activities – Stock awards issued  $487   $1,473 
Non cash financing activities – Stock awards accrued  $241   $487 
Non cash investing activities – Accrued capital expenditures  $37   $—   
Initial operating lease right-of-use assets and liabilities recorded upon adoption of ASC 842  $20,918   $—   
Operating lease right-of-use assets acquired and liabilities assumed upon lease execution
  $432   $—   

 

# # #

 

 


The following information was filed by Rex American Resources Corp (REX) on Thursday, March 26, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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