Exhibit 99

 

 

 

News Announcement For Immediate Release

 

REX AMERICAN RESOURCES REPORTS FISCAL 2020
FOURTH QUARTER RESULTS

 

Dayton, Ohio, (March 25, 2021) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2020 fourth quarter (“Q4 ’20”) ended January 31, 2021. REX management will host a conference call and webcast today at 11:00 a.m. ET.

 

Conference Call: 212/231-2920
   
Webcast / Replay URL: www.rexamerican.com/Corp/Page4.aspx
   
  The webcast will be available for replay for 30 days.

 

REX American Resources’ Q4 ‘20 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 ‘20 net sales and revenue were $126.0 million, compared with $120.9 million in Q4 ‘19. The year-over-year net sales and revenue increase was primarily due to higher pricing of dried distillers grains and modified distillers grains, as well as higher ethanol production levels, which more than offset lower ethanol pricing. Primarily reflecting these factors, Q4 ‘20 gross profit for the Company’s ethanol and by-products segment increased to $8.3 million, compared with $8.1 million in Q4 ‘19. As a result, the ethanol and by-products segment had income before income taxes of $5.3 million in Q4 ‘20, compared to income of $5.0 million in Q4 ‘19. The Company’s refined coal operation incurred a $1.4 million gross loss and a $1.6 million loss before income taxes in Q4 ‘20, compared to a $1.5 million gross loss and a loss before income taxes of $1.4 million in Q4 ‘19. REX reported Q4 ‘20 income before income taxes and non-controlling interests of $3.2 million, compared with income before income taxes and non-controlling interests of $2.8 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 $1.7 million and $1.5 million for Q4 ‘20 and Q4 ‘19, respectively.

 

Net income attributable to REX shareholders in Q4 ‘20 was $3.5 million, compared to net income of $4.4 million in Q4 ‘19. Q4 ‘20 basic and diluted net income per share attributable to REX common shareholders was $0.59, compared to net income per share of $0.70 in Q4 ‘19. Per share results in Q4 ‘20 and Q4 ‘19 are based on 6,008,000 and 6,320,000 diluted weighted average shares outstanding, respectively.

 

-more-

 
REX American Resources Q4 ‘20 Results, 3/25/2021 page 2

 

Segment Income Statement Data:

 

   Three Months
Ended
   Twelve Months
Ended
 
($ in thousands)  January 31,   January 31, 
   2021   2020   2021   2020 
Net sales and revenue:                    
Ethanol & By-Products (1)  $125,970   $120,874   $372,664   $417,700 
Refined coal (2) (3)   48    46    182    334 
Total net sales and revenue  $126,018   $120,920   $372,846   $418,034 
                     
Gross profit (loss):                    
Ethanol & By-Products (1)  $8,274   $8,090   $19,533   $20,402 
Refined coal (2)   (1,431)    (1,497)    (5,672)    (7,917) 
Total gross profit  $6,843   $6,593   $13,861   $12,485 
                     
Income (loss) before income taxes:                    
Ethanol & By-Products (1)  $5,299   $4,979   $6,696   $8,469 
Refined coal (2)   (1,591)    (1,428)    (5,826)    (7,778) 
Corporate and other   (479)    (714)    (2,352)    (1,860) 
Total income (loss) before income taxes  $3,229   $2,837   $(1,482)   $(1,169) 
                     
Benefit (provision) for income taxes:                    
Ethanol & By-Products  $(14)   $1,688   $(31)   $1,528 
Refined coal   1,691    1,546    6,554    10,828 
Corporate and other   116    178    577    457 
Total benefit for income taxes  $1,793   $3,412   $7,100   $12,813 
                     
Segment profit (loss):                    
Ethanol & By-Products  $3,739   $4,756   $3,788   $5,439 
Refined coal   167    182    988    3,391 
Corporate and other   (363)    (536)    (1,775)    (1,403) 
Net income attributable to REX common shareholders  $3,543   $4,402   $3,001   $7,427 

 

  (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, “Fiscal 2020 proved to be a challenging year with the impact of Covid, however we are pleased to report earnings per share of $0.59 for the fourth quarter on the back of a profitable third quarter, reflecting the resiliency of our business and the efficiency of our plants and operations.”

 

“As we move forward into 2021 with all of our plants in operation, we remain optimistic for improved ethanol demand as we emerge from the impact of the pandemic and continue to be focused on creating additional shareholder value through our disciplined operating approach and strategic use of our strong balance sheet and liquidity position.”

 

Balance Sheet

At January 31, 2021, REX had cash and cash equivalents and short-term investments of $180.7 million, $48.2 million of which was at the parent company, and $132.5 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2020, of $205.7 million, $62.3 million of which was at the parent company, and $143.4 million of which was at its consolidated ethanol production facilities.

 

-more-

 
REX American Resources Q4 ‘20 Results, 3/25/2021 page 3

 

The following table summarizes select data related to REX’s

consolidated alternative energy interests:

 

   Three Months
Ended
   Twelve Months
Ended
 
   January 31,   January 31, 
   2021   2020   2021   2020 
Average selling price per gallon of ethanol  $1.36   $1.43   $1.30   $1.37 
Average selling price per ton of dried distillers grains  $161.42   $138.19   $144.73   $137.68 
Average selling price per pound of non-food grade corn oil  $0.27   $0.24   $0.26   $0.25 
Average selling price per ton of modified distillers grains  $81.76   $59.62   $64.80   $59.66 
Average cost per bushel of grain  $4.04   $3.90   $3.73   $3.82 
Average cost of natural gas (per MmBtu)  $3.25   $3.17   $3.00   $3.04 

 

Supplemental data related to REX’s ethanol interests:

 

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of January 31, 2021

(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
118.6 75.4%       89.4
NuGen Energy, LLC
Marion, SD
98.5 99.5% 98.0
Big River Resources West Burlington, LLC
West Burlington, IA
101.0 10.3% 10.4
Big River Resources Galva, LLC
Galva, IL
115.3 10.3% 11.9
Big River United Energy, LLC
Dyersville, IA
116.1 5.7% 6.6
Big River Resources Boyceville, LLC
Boyceville, WI
55.3 10.3% 5.7
Total      604.8 n/a 222.0

 

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 212/231-2920 (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.

 

-more-

 
REX American Resources Q4 ‘20 Results, 3/25/2021 page 4

 

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 605 million gallons of ethanol over the twelve-month period ended January 31, 2021. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 222 million gallons. In addition, the Company acquired a refined coal operation in August 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 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 ‘20 Results, 3/25/2021 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, 
   2021   2020   2021   2020 
Net sales and revenue  $126,018   $120,920   $372,846   $418,034 
Cost of sales   119,175    114,327    358,985    405,549 
Gross profit   6,843    6,593    13,861    12,485 
Selling, general and administrative expenses   (4,361)    (5,629)    (17,661)    (19,258) 
Equity in income of unconsolidated ethanol affiliates   332    1,042    500    1,392 
Interest and other income, net   415    831    1,818    4,212 
Income (loss) before income taxes and non-controlling interests   3,229    2,837    (1,482)    (1,169) 
Benefit for income taxes   1,793    3,412    7,100    12,813 
Net income including non-controlling interests   5,022    6,249    5,618    11,644 
Net income attributable to non-controlling interests   (1,479)    (1,847)    (2,617)    (4,217) 
Net income attributable to REX common shareholders  $3,543   $4,402   $3,001   $7,427 
                     
Weighted average shares outstanding – basic and diluted   6,008    6,320    6,167    6,318 
                     
Basic and diluted net income per share attributable to REX common shareholders  $0.59   $0.70   $0.49   $1.18 

 

- balance sheets follow -

 
REX American Resources Q4 ‘20 Results, 3/25/21 page 6

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

   January 31,
2021
   January 31,
2020
 
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents  $144,501   $179,658 
Short-term investments   36,194    26,073 
Restricted cash   1,657    1,113 
Accounts receivable   19,713    12,969 
Inventory   37,880    35,634 
Refundable income taxes   6,020    6,029 
Prepaid expenses and other   12,785    9,659 
        Total current assets   258,750    271,135 
Property and equipment-net   153,186    163,327 
Operating lease right-of-use assets   12,678    16,173 
Other assets   25,275    17,403 
Equity method investment   29,456    32,464 
TOTAL ASSETS  $479,345   $500,502 
LIABILITIES AND EQUITY
          
CURRENT LIABILITIES:          
Accounts payable – trade  $16,907   $18,900 
Current operating lease liabilities   4,875    4,935 
Accrued expenses and other current liabilities   8,955    7,764 
        Total current liabilities   30,737    31,599 
LONG TERM LIABILITIES:          
Deferred taxes   3,713    4,334 
Long-term operating lease liabilities   7,439    10,688 
Other long-term liabilities   273    275 
        Total long-term liabilities   11,425    15,297 
COMMITMENTS AND CONTINGENCIES          
EQUITY:          
REX shareholders’ equity:          
Common stock, 45,000 shares authorized, 29,853 shares issued at par   299    299 
Paid in capital   149,110    148,789 
Retained earnings   589,986    586,985 
Treasury stock, 23,861 and 23,561 shares, respectively   (354,612)    (335,066) 
Total REX shareholders’ equity   384,783    401,007 
Non-controlling interests   52,400    52,599 
       Total equity   437,183    453,606 
TOTAL LIABILITIES AND EQUITY  $479,345   $500,502 

 

- statements of cash flows follow -

 
REX American Resources Q4 ‘20 Results, 3/25/21 page 7

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

   Twelve Months Ended
January 31,
 
   2021   2020 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $5,618   $11,644 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation   20,906    23,007 
Amortization of operating lease right-of-use assets   5,358    6,304 
Stock based compensation expense   264    397 
Income from equity method investments   (500)    (1,392) 
Dividends received from equity method investments   3,508    1,003 
Interest income from investments   (216)    (73) 
Deferred income tax   (7,949)    (11,070) 
Gain on disposal of property and equipment   (58)    - 
Changes in assets and liabilities:          
    Accounts receivable   (6,744)    (1,591) 
    Inventory   (2,246)    (17,157) 
    Prepaid expenses and other assets   (3,138)    (752) 
    Income taxes refundable   9    1,666 
    Accounts payable-trade   (2,346)    11,400 
    Other liabilities   (3,843)    (13,043) 
Net cash provided by operating activities   8,623    10,343 
CASH FLOWS FROM INVESTING ACTIVITIES:          
Capital expenditures   (10,412)    (3,776) 
Purchases of short-term investments   (96,233)    (26,025) 
Sales of short-term investments   86,328    15,000 
Loan receivable repayments   -    369 
Proceeds from sale of real estate and property and equipment   58    - 
Restricted deposits   (532)    - 
Net cash used in investing activities   (20,791)    (14,432) 
CASH FLOWS FROM FINANCING ACTIVITIES:          
Treasury stock acquired   (19,629)    - 
Payments to noncontrolling interests holders   (2,928)    (4,264) 
Capital contributions from minority investor   112    312 
         Net cash used in financing activities   (22,445)    (3,952) 
NET DECREASE IN CASH, CASH EQUIVALENTS
          
  AND RESTRICTED CASH   (34,613)    (8,041) 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period   180,771    188,812 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period  $146,158   $180,771 
Non cash financing activities – Equity awards issued  $241   $487 
Non cash financing activities – Equity awards accrued  $99   $241 
Non cash investing activities – Accrued capital expenditures  $390   $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   $1,863   $432 

 

# # #

 

The following information was filed by Rex American Resources Corp (REX) on Thursday, March 25, 2021 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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