Exhibit 99

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES REPORTS RECORD FOURTH QUARTER
DILUTED EPS OF $2.55 AND RECORD FULL YEAR DILUTED EPS OF $10.76

 

- Reports Record Full Year Net Income of $87.3 Million -

 

Dayton, Ohio, (March 25, 2015) -- REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2014 fourth quarter (“Q4 ’14”) and year ended January 31, 2015. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

Conference Call: 212/271-4657
   
Webcast / Replay URL: www.rexamerican.com/Corp/Page4.aspx
  The webcast will be available for replay for 30 days

 

REX American Resources’ Q4 ’14 results principally reflect its 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 remaining plants are reported as equity in income of unconsolidated ethanol affiliates.

 

REX’s Q4 ’14 net sales and revenue were $127.7 million, compared with $146.1 million in Q4 ’13. Primarily reflecting solid ethanol crush spread margins in Q4 ’14, the Company’s gross profit rose to $30.0 million, compared to $26.3 million in the prior year period. Reflecting the ethanol industry environment during the period and strong plant operations, Q4 ’14 equity in income of unconsolidated ethanol affiliates increased to $7.9 million, from $7.6 million in Q4 ’13. The improved quarterly gross profit and income of unconsolidated ethanol affiliates resulted in Q4 ’14 net income from continuing operations before income taxes and non-controlling interests of $33.4 million, compared with $27.9 million in Q4 ’13.

 

Net income attributable to REX shareholders in Q4 ’14 rose to $20.3 million, compared to $15.9 million in Q4 ’13, while Q4 ’14 diluted net income per share attributable to REX common shareholders was a record $2.55 per share, compared to $1.95 per share in Q4 ’13. Per share results in Q4 ’14 and Q4 ’13 are based on 7,968,000 and 8,129,000 diluted weighted average shares outstanding, respectively.

 

Net sales and revenue for the twelve months ended January 31, 2015 declined to $572.2 million, from $666.0 million in fiscal 2013, while gross profit for fiscal 2014 more than doubled to $141.9 million, from $64.3 million in fiscal 2013. Fiscal 2014 equity in income of unconsolidated ethanol affiliates also increased substantially to $32.2 million, compared with $17.2 million in fiscal 2013. This led to fiscal 2014 income from continuing operations before income taxes and non-controlling interests more than doubling to $152.8 million, compared with $59.9 million in fiscal 2013.

 

- more -

 
REX American Resources Q4 14 Results, 3/25/15 page 2

 

For fiscal 2014, REX reported net income attributable to REX shareholders of $87.3 million, a 149% increase compared with $35.1 million in fiscal 2013, while diluted net income per share attributable to REX common shareholders rose to a record $10.76 in fiscal 2014, compared to $4.29 per share in fiscal 2013. Per share results for the fiscal year ended January 31, 2015 and January 31, 2014, are based on 8,118,000 and 8,180,000 diluted weighted average shares outstanding, respectively.

 

REX CEO, Stuart Rose, commented, “We are pleased to report record fourth quarter and full year earnings and earnings per share, reflecting the strength during fiscal 2014 of the ethanol industry as well as the strategic locations and operational efficiency of our plants and our talented and dedicated operating team.”

 

Balance Sheet and Share Repurchase Program

At January 31, 2015, REX had cash and cash equivalents of $137.7 million, $82.9 million, of which was at the parent company, and $54.8 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents at January 31, 2014, of $105.1 million, $63.3 million of which was at the parent company, and $41.8 million of which was at its consolidated ethanol production facilities.

 

REX repurchased 161,224 common shares in Q4 ’14 at an average price per share of $60.94, bringing the total shares repurchased in fiscal 2014 to 283,979 common shares at an average price per share of $64.22. The Company is currently authorized to repurchase up to an additional 497,582 shares of common stock. Reflecting all share repurchases to date, REX has 7,899,607 shares outstanding.

 

At January 31, 2015, REX had lease agreements as landlord for four former retail store locations. REX has three owned former retail stores that were vacant at January 31, 2015, which it is marketing to either lease or sell. The Company sold four former retail store locations during fiscal 2014.

 

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

 

   Three Months
Ended
   Twelve Months
Ended
 
   January 31,   January 31, 
   2015   2014   2015   2014 
Average selling price per gallon of ethanol  $1.81   $1.86   $2.00   $2.20 
Average selling price per ton of dried distillers grains  $117.08   $203.69   $166.00   $233.27 
Average selling price per pound of non-food grade corn oil  $0.28   $0.36   $0.32   $0.38 
Average selling price per ton of modified distillers grains  $57.51   $97.83   $63.47   $114.91 
Average cost per bushel of grain  $3.54   $4.50   $3.99   $6.27 
Average cost of natural gas (per mmbtu)  $5.22   $5.41   $6.10   $4.54 

 

- more -

 
REX American Resources Q4 14 Results, 3/25/15 page 3

 

Supplemental Data Related to REX’s Alternative Energy Interests:

 

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of January 31, 2015
(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)   110.6    74%   81.8 
                
NuGen Energy, LLC (Marion, SD)   115.9    99%   114.7 
                
Patriot Holdings, LLC (Annawan, IL)   126.2    27%   34.1 
                
Big River Resources West Burlington, LLC
(West Burlington, IA)
   108.0    10%   10.8 
                
Big River Resources Galva, LLC (Galva, IL)   119.0    10%   11.9 
                
Big River United Energy, LLC (Dyersville, IA)   124.9    5%   6.2 
                
Big River Resources Boyceville, LLC
(Boyceville, WI)
   57.8    10%   5.8 
                
Total   762.4    n/a    265.3 

 

About REX American Resources Corporation

REX American Resources has interests in seven ethanol production facilities, which in aggregate shipped approximately 762 million gallons of ethanol over the twelve month period ended January 31, 2015. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended January 31, 2015) by the ethanol production facilities in which it has ownership interests was approximately 265 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.

 

Contact:

Douglas Bruggeman Joseph Jaffoni, Norberto Aja
Chief Financial Officer JCIR
(937) 276-3931 (212) 835-8500
  rex@jcir.com

 

- statements of operations follow -

 
REX American Resources Q4 ’14 Results, 3/25/15 page 4

 

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, 
   2015   2014   2015   2014 
Net sales and revenue  $127,651   $146,073   $572,230   $666,045 
Cost of sales   97,677    119,729    430,291    601,757 
Gross profit   29,974    26,344    141,939    64,288 
Selling, general and administrative expenses   (4,058)   (5,318)   (19,422)   (17,846)
Equity in income of unconsolidated ethanol affiliates   7,907    7,617    32,229    17,175 
Interest and other income   113    76    369    234 
Interest expense   (338)   (850)   (2,074)   (3,898)
Loss on disposal of real estate and property and equipment, net   (230)       (238)    
Losses on derivative financial instruments, net       (9)   (1)   (39)
Income from continuing operations before income taxes and non-controlling interests   33,368    27,860    152,802    59,914 
Provision for income taxes   (9,616)   (9,726)   (49,649)   (20,751)
Income from continuing operations including non-controlling interests   23,752    18,134    103,153    39,163 
Income (loss) from discontinued operations, net of tax   256    (217)   234    325 
Gain on disposal of discontinued operations, net of tax   199    16    327    741 
Net income including non-controlling interests   24,207    17,933    103,714    40,229 
Net income attributable to non-controlling interests   (3,859)   (2,059)   (16,377)   (5,156)
Net income attributable to REX common shareholders  $20,348   $15,874   $87,337   $35,073 
                     
Weighted average shares outstanding – basic   7,968    8,089    8,109    8,137 
                     
Basic income per share from continuing operations*  $2.50   $1.99   $10.70   $4.18 
Basic income (loss) per share from discontinued operations*   0.03    (0.03)   0.03    0.04 
Basic income per share on disposal of discontinued operations*   0.02        0.04    0.09 
Basic net income per share attributable to REX common shareholders  $2.55   $1.96   $10.77   $4.31 
                     
Weighted average shares outstanding – diluted   7,968    8,129    8,118    8,180 
                     
Diluted income per share from continuing operations*  $2.50   $1.98   $10.69   $4.16 
Diluted income (loss) per share from discontinued operations*   0.03    (0.03)   0.03    0.04 
Diluted income per share on disposal of discontinued operations*   0.02        0.04    0.09 
Diluted net income per share attributable to REX common shareholders  $2.55   $1.95   $10.76   $4.29 
Amounts attributable to REX common shareholders:                    
Income from continuing operations, net of tax  $19,893   $16,075   $86,776   $34,007 
Income (loss) from discontinued operations, net of tax   455    (201)   561    1,066 
Net income  $20,348   $15,874   $87,337   $35,073 

 

* Certain amounts differ from those previously reported as a result of certain real estate assets being reclassified as discontinued operations.

 

- balance sheets follow -

 
REX American Resources Q4 ’14 Results, 3/25/15 page 5

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands) Unaudited

 

   January 31, 
   2015   2014 
CURRENT ASSETS:          
Cash and cash equivalents  $137,697   $105,149 
Restricted cash       500 
Accounts receivable   8,794    16,486 
Inventory   18,062    19,370 
Refundable income taxes   3,019    268 
Prepaid expenses and other   5,810    4,891 
Deferred taxes-net   2,363    2,146 
Total current assets   175,745    148,810 
Property and equipment-net   194,447    202,258 
Other assets   6,366    5,388 
Equity method investments   80,389    71,189 
Restricted investments and deposits       223 
TOTAL ASSETS  $456,947   $427,868 
LIABILITIES AND EQUITY          
CURRENT LIABILITIES:          
Current portion of long term debt  $   $12,226 
Accounts payable – trade   9,210    6,626 
Derivative financial instruments       1,141 
Accrued expenses and other current liabilities   10,347    12,147 
Total current liabilities   19,557    32,140 
LONG TERM LIABILITIES:          
Long term debt       63,500 
Deferred taxes   42,768    19,613 
Other long term liabilities   1,658    1,862 
Total long term liabilities   44,426    84,975 
COMMITMENTS AND CONTINGENCIES          
EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   144,791    144,051 
Retained earnings   444,438    357,101 
Treasury stock, 21,954 and 21,753 shares, respectively   (239,557)   (222,170)
Total REX shareholders’ equity   349,971    279,281 
Non-controlling interests   42,993    31,472 
Total equity   392,964    310,753 
TOTAL LIABILITIES AND EQUITY  $456,947   $427,868 

 

- statements of cash flows follow -

 
REX American Resources Q4 ’14 Results, 3/25/15 page 6

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands) Unaudited

 

   Years Ended January 31, 
   2015   2014 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $103,714   $40,229 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   16,787    17,284 
Impairment charges on real estate   68    55 
Income from equity method investments   (32,229)   (17,175)
Dividends received from equity method investments   22,889    5,804 
Derivative financial instruments   (1,141)   (1,648)
Gain on disposal of real estate and property and equipment   (275)   (1,015)
Deferred income tax   22,473    15,987 
Excess tax benefit from stock option exercise   (441)   (64)
Changes in assets and liabilities:          
Accounts receivable   7,692    (4,919)
Inventory   1,308    5,549 
Prepaid expenses and other assets   (1,929)   (1,490)
Income taxes refundable   (1,985)   1,480 
Accounts payable-trade   2,030    1,721 
Accrued expenses and other liabilities   (1,745)   2,637 
Net cash provided by operating activities   137,216    64,435 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (9,927)   (3,518)
Repayment of note receivable   6    681 
Proceeds from sale of real estate and property and equipment   1,778    8,876 
Restricted cash   500    (500)
Restricted investments and deposits   323    1,293 
Net cash (used in) provided by investing activities   (7,320)   6,832 
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payments of long term debt   (75,726)   (31,203)
Stock options exercised   931    1,072 
Payments to non-controlling interests holders   (4,856)   (1,638)
Excess tax benefit from stock option exercises   441    64 
Treasury stock acquired   (18,138)   (3,486)
Net cash used in financing activities   (97,348)   (35,191)
NET INCREASE IN CASH AND CASH EQUIVALENTS   32,548    36,076 
CASH AND CASH EQUIVALENTS-Beginning of year   105,149    69,073 
CASH AND CASH EQUIVALENTS-End of year  $137,697   $105,149 
Non cash financing activities - Cashless exercise of stock options  $100   $ 
Non cash investing activities – Accrued capital expenditures  $804   $250 
Non cash investing activities – Loan receivable granted in connection with sale of real estate  $475   $ 

 

# # #

 

The following information was filed by Rex American Resources Corp (REX) on Wednesday, March 25, 2015 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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