Exhibit 99

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES’ FOURTH QUARTER DILUTED EPS
INCREASE 248% TO $1.88

 

-Full Year Diluted EPS Rise 14% to $4.91-

 

Dayton, Ohio, (March 24, 2017) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2016 fourth quarter (“Q4 ‘16”) and fiscal year ended January 31, 2017. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

 

Conference Call: (303) 223-4370
   
Webcast / Replay URL: www.rexamerican.com/Corp/Page4.aspx
   
  The webcast will be available for replay for 30 days

 

REX American Resources’ Q4 ‘16 results principally reflect its interests in six ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated, while those of its four remaining plants are reported as equity in income of unconsolidated ethanol affiliates.

 

REX’s Q4 ‘16 net sales and revenue were $121.6 million, compared with $107.2 million in Q4 ‘15. Primarily reflecting higher average prices for ethanol and lower corn prices during the quarter, which resulted in more favorable ethanol crush spread margins as well as REX’s initiatives to increase plant-level production, the Company’s Q4 ’16 gross profit rose to $25.2 million, from $9.2 million in the prior year period. Equity in income of unconsolidated ethanol affiliates in Q4 ‘16 increased to $2.9 million, from $1.1 million in Q4 ’15 primarily as a result of the more favorable ethanol crush spread margins during the quarter. As a result, income from continuing operations before income taxes and non-controlling interests in Q4 ‘16 grew to $21.2 million, compared with $6.2 million in Q4 ‘15.

 

Net income attributable to REX shareholders in Q4 ‘16 rose to $12.4 million, from $3.7 million in Q4 ‘15, while Q4 ‘16 diluted net income per share attributable to REX common shareholders was $1.88 per share, compared to $0.54 per share in Q4 ‘15. Per share results in Q4 ‘16 and Q4 ‘15 are based on 6,591,000 and 6,832,000 diluted weighted average shares outstanding, respectively.

 

Net sales and revenue for the twelve months ended January 31, 2017 were $453.8 million, compared to $436.5 million in fiscal 2015, while gross profit for fiscal 2016 was $71.0 million, compared to $50.8 million in fiscal 2015. Fiscal 2016 equity in income of unconsolidated ethanol affiliates was $6.1 million, compared with $9.0 million in fiscal 2015, which benefited from a $2.9 million contribution from Patriot Holdings, LLC (“Patriot”) prior to REX’s June 2015 sale of the Company’s 26.6% interest in the Patriot ethanol production facility. In addition, results for the fiscal year ended January 31, 2016 benefited from a $10.4 million pre-tax gain related to the sale of the Company’s Patriot interest.

 

- more -

 
REX American Resources Q4 16 Results, 3/24/17 page 2

 

For fiscal 2016, REX reported net income attributable to REX shareholders of $32.3 million, compared with $31.4 million in fiscal 2015, while diluted net income per share attributable to REX common shareholders was $4.91 in fiscal 2016, compared to $4.30 per share in fiscal 2015. Per share results for the fiscal year ended January 31, 2017 and January 31, 2016, are based on 6,587,000 and 7,307,000 diluted weighted average shares outstanding, respectively.

 

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented,We concluded our very successful 2016 fiscal year with our strongest quarter of the year. The Company’s strong fourth quarter financial results again highlight our ability to manage our business in a highly efficient manner, through the efforts of our highly capable employees and the support of the communities in which we operate. Specifically, our fourth quarter and full year results reflect our ability to leverage our assets, which includes the strategic location, efficiency of our plants and our disciplined operating approach at the plant and corporate level. Our operating initiatives and favorable industry fundamentals led to significant fourth quarter growth in our key financial metrics, including gross profit, net income, diluted earnings per share and free cash flow generation.”

 

“Looking ahead, we continue to focus on disciplined management of our assets, while working to strategically grow our business through capital investment projects to further expand production at our consolidated plants. In this regard, our balance sheet and liquidity position remain strong and with our performance in fiscal 2016, we ended the year with cash and cash equivalents of $188.6 million and working capital of $204 million.”

 

Balance Sheet and Share Repurchase Program

At January 31, 2017, REX had cash and cash equivalents of $188.6 million, $79.5 million of which was at the parent company, and $109.1 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents at January 31, 2016, of $135.8 million, $57.2 million of which was at the parent company, and $78.6 million of which was at its consolidated ethanol production facilities.

 

During fiscal 2016, REX repurchased 87,904 of its common shares at an average price of $49.52 per share. The Company is currently authorized to repurchase up to an additional 155,334 shares of common stock and has 6,558,679 shares outstanding.

 

- more -

 

REX American Resources Q4 16 Results, 3/24/17 page 3

 

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, 
   2017   2016   2017   2016 
Average selling price per gallon of ethanol  $1.54   $1.39   $1.45   $1.44 
Average selling price per ton of dried distillers grains  $113.50   $123.21   $123.97   $145.50 
Average selling price per pound of non-food grade corn oil  $0.28   $0.23   $0.28   $0.26 
Average selling price per ton of modified distillers grains  $43.85   $57.67   $50.10   $66.17 
Average cost per bushel of grain  $3.28   $3.56   $3.45   $3.62 
Average cost of natural gas (per mmbtu)  $3.69   $3.38   $3.24   $3.71 

 

Supplemental Data Related to REX’s Alternative Energy Interests:

 

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of January 31, 2017
(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)   119.7    75.0%    89.8 
NuGen Energy, LLC (Marion, SD)   127.1    99.5%    126.5 
Big River Resources West Burlington, LLC (West Burlington, IA)   106.5    9.7%    10.3 
Big River Resources Galva, LLC (Galva, IL)   125.3    9.7%    12.2 
Big River United Energy, LLC (Dyersville, IA)   128.3    5.4%    6.9 
Big River Resources Boyceville, LLC (Boyceville, WI)   57.3    9.7%    5.6 
Total   664.2    n/a    251.3 

 

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 664 million gallons of ethanol over the twelve month period ended January 31, 2017. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended January 31, 2017) by the ethanol production facilities in which it has ownership interests was approximately 251 million gallons. Further information about REX is available at www.rexamerican.com.

 

- more -

 

REX American Resources Q4 16 Results, 3/24/17 page 4

 

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 international, national or regional economies, weather, the effects of terrorism or acts of war 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 16 Results, 3/24/17 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, 
   2017   2016   2017   2016 
Net sales and revenue   $121,587    $107,227    $453,799    $436,488 
Cost of sales   96,416    98,069    382,760    385,654 
Gross profit   25,171    9,158    71,039    50,834 
Selling, general and administrative expenses   (7,073)   (4,184)   (21,388)   (19,813)
Equity in income of unconsolidated ethanol affiliates   2,887    1,127    6,144    8,984 
Interest and other income   222    101    596    625 
Gain on sale of investment   -    -    192    10,385 
(Loss) gain on disposal of real estate and property and equipment, net   (36)   7    328    503 
Income from continuing operations before income taxes and non-controlling interests   21,171    6,209    56,911    51,518 
Provision for income taxes   (5,622)   (1,382)   (17,393)   (14,108)
Net income including non-controlling interests   15,549    4,827    39,518    37,410 
Net income attributable to non-controlling interests   (3,168)   (1,141)   (7,185)   (5,974)
Net income attributable to REX common shareholders   12,381    $3,686    $32,333    $31,436 
                     
Weighted average shares outstanding – basic   6,591    6,813    6,587    7,297 
                     
Basic net income per share attributable to REX common shareholders   $1.88    $0.54    $4.91    $4.31 
                     
Weighted average shares outstanding – diluted   6,591    6,832    6,587    7,307 
Diluted net income per share attributable to REX common shareholders   $1.88    $0.54    $4.91    $4.30 

 

- balance sheets follow -

 

REX American Resources Q4 16 Results, 3/24/17 page 6

 

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

 

   January 31, 
   2017   2016 
CURRENT ASSETS:          
Cash and cash equivalents  $188,576   $135,765 
Restricted cash   130    54 
Accounts receivable   11,901    13,666 
Inventory   17,057    17,178 
Refundable income taxes   1,070    5,254 
Prepaid expenses and other   6,959    6,407 
Deferred taxes-net   824    1,036 
Total current assets   226,517    179,360 
Property and equipment-net   182,761    189,976 
Other assets   6,913    6,642 
Equity method investments   37,833    38,707 
TOTAL ASSETS  $454,024   $414,685 
LIABILITIES AND EQUITY
          
CURRENT LIABILITIES:          
Accounts payable – trade  $9,171   $10,212 
Accrued expenses and other current liabilities   13,348    9,423 
Total current liabilities   22,519    19,635 
LONG TERM LIABILITIES:          
Deferred taxes   41,135    38,304 
Other long term liabilities   2,096    987 
Total long term liabilities   43,231    39,291 
COMMITMENTS AND CONTINGENCIES          
EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   145,767    144,844 
Retained earnings   508,207    475,874 
Treasury stock, 23,292 and 23,204 shares, respectively   (313,838)   (309,754)
Total REX shareholders’ equity   340,435    311,263 
Non-controlling interests   47,839    44,496 
Total equity   388,274    355,759 
TOTAL LIABILITIES AND EQUITY  $454,024   $414,685 

 

- statements of cash flows follow -

 

REX American Resources Q4 16 Results, 3/24/17 page 7

 

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

 

   Years Ended January 31, 
   2017   2016 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $39,518   $37,410 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   19,519    18,639 
Impairment charges on real estate   -    125 
Stock based compensation expense   1,314    64 
Income from equity method investments   (6,144)   (8,984)
Dividends received from equity method investments   7,018    11,151 
Gain on sale of investment   (192)   (10,385)
Gain on disposal of real estate and property and equipment   (328)   (503)
Deferred income tax   3,043    (4,196)
Changes in assets and liabilities:          
Accounts receivable   (2,535)   (496)
Inventory   121    884 
Prepaid expenses and other assets   (1,357)   (1,135)
Income taxes refundable   4,184    (2,235)
Accounts payable-trade   36    387 
Accrued expenses and other liabilities   4,912    (536)
Net cash provided by operating activities   69,109    40,190 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (14,208)   (15,495)
Repayment of note receivable   24    23 
Proceeds from sale of investment   4,492    45,476 
Proceeds from sale of real estate and property and equipment   1,511    2,001 
Restricted cash   (76)   (54)
Restricted investments and deposits   510    250 
Net cash (used in) provided by investing activities   (7,747)   32,201 
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payments to non-controlling interests holders   (3,842)   (4,471)
Treasury stock acquired   (4,709)   (69,852)
Net cash used in financing activities   (8,551)   (74,323)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   52,811    (1,932)
CASH AND CASH EQUIVALENTS-Beginning of year   135,765    137,697 
CASH AND CASH EQUIVALENTS-End of year  $188,576   $135,765 
Non cash financing activities – Accrued common stock repurchase  $-   $356 
Non cash financing activities – Equity awards issued  $1,095   $- 
Non cash investing activities – Accrued capital expenditures  $342   $1 ,063 

 

#  #  #

 

The following information was filed by Rex American Resources Corp (REX) on Friday, March 24, 2017 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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