EX-99 2 c61150_ex99.htm

Exhibit 99

(REX LOGO)

 

 

 

News Announcement

 

For Immediate Release

 

 

 

For further information contact:

 

 

Douglas Bruggeman

 

Joseph N. Jaffoni/David Collins

Chief Financial Officer

 

Jaffoni & Collins Incorporated

937/276-3931

 

212/835-8500 or rsc@jcir.com

 

REX REPORTS Q4 INCOME FROM CONTINUING

OPERATIONS OF $0.54 PER DILUTED SHARE

 

- Reports Fiscal 2009 Fourth Quarter Net Income Attributable to

Common Shareholders of $7.3 Million or $0.75 Per Diluted Share -

 

- Plans to Change Company Name to REX American Resources Corporation

Subject to Shareholder Approval -

Dayton, Ohio (April 15, 2010) – REX Stores Corporation (NYSE: RSC) today announced financial results for its fiscal 2009 fourth quarter (“Q4 ‘09”) ended January 31, 2010. REX will host a conference call and webcast today at 11:00 a.m. ET to review the results:

 

 

Conference Call Dial-In:

212/231-2915

 

 

Webcast / Replay URL:

www.rextv.com/Corp/Page4.aspx

 

The webcast will be available for replay for 30 days

REX plans to change the Company’s name to REX American Resources Corporation and its stock trading symbol to “REX.” The name change will be subject to shareholder approval at REX’s Annual Meeting on June 9 and, if approved, the symbol change will occur thereafter.

Summary Consolidated Operating Results and Balance Sheet Review

REX reported net sales and revenue of $77.2 million in Q4 ‘09 compared with net sales and revenue of $19.9 million in Q4 ‘08. For Q4 ‘09, REX recorded income from continuing operations before income taxes and non-controlling interests of $13.2 million compared with a $5.3 million loss in the comparable prior year period. The pre-tax income from continuing operations is inclusive of a $0.9 million and $4.3 million loss on derivative financial instruments in Q4 ‘09 and Q4 ‘08, respectively. In the quarter ended January 31, 2010, REX generated income from continuing operations net of taxes and non-controlling interests of $5.2 million, or $0.54 per diluted share, compared with a loss net of taxes and non-controlling interests of $2.5 million, or $0.26 per diluted share, in the comparable prior year period.

For Q4 ‘09 REX generated net income attributable to common shareholders of $7.3 million, or $0.75 per diluted share, versus a net loss attributable to common shareholders of $5.4 million, or a $0.57 per diluted share loss, in Q4 ‘08. Per share results are based on 9,707,000 and 9,516,000 diluted weighted average shares outstanding for the Q4 ‘09 and Q4 ‘08 quarters, respectively.

-more-


 

 

REX Reports Fiscal 2009 Fourth Quarter Results, 4/15/10

page 2

REX reported fiscal 2009 net sales and revenue of $170.3 million compared with net sales and revenue of $68.6 million in fiscal 2008. For fiscal 2009 REX generated net income attributable to common shareholders of $8.6 million, or $0.91 per diluted share, versus a net loss attributable to common shareholders of $3.3 million, or a $0.32 per diluted share loss, in fiscal 2008. Per share results are based on 9,551,000 and 10,170,000 diluted weighted average shares outstanding for the fiscal 2009 and fiscal 2008, respectively.

At January 31, 2010, REX had cash and cash equivalents of $100.4 million, including $82.5 million of cash at the parent company (exclusive of approximately $17.9 million of cash at consolidated ethanol production facilities), compared with cash and cash equivalents of $92.0 million at January 31, 2009 including $90.0 million of cash at the parent company (exclusive of approximately $2.0 million of cash at consolidated ethanol production facilities).

REX repurchased 597,000 shares and 62,000 shares of its common stock in open market transactions in fiscal 2009 and Q4 ‘09, respectively. Reflecting its current repurchase authorization, REX is presently authorized to repurchase up to 481,000 shares of its common stock.

Segment Income Statement Data

REX’s financial results primarily reflect its interests in six ethanol production facilities, including the consolidation of its investments in two ethanol affiliates, Levelland Hockley County Ethanol, LLC (“Levelland Hockley”) and One Earth Energy, LLC (“One Earth”).

At January 31, 2010, REX had lease or sub-lease agreements, as landlord for all or parts of 10 former retail store locations (including one property that REX leases and sub-leases). REX also has 31 former retail stores and one former distribution center that were vacant at January 31, 2010 which it is marketing to lease or sell. In addition one former distribution center is partially leased, partially occupied for the REX corporate office and partially vacant. The Q4 ‘09 real estate revenue reflects rental income derived from these sites.

REX exited its retail operations earlier in fiscal 2009 and the retail operations results are classified as discontinued operations. Certain amounts differ from those previously reported as a result of retail operations and certain real estate assets being reclassified as discontinued operations.

In Q4 ‘09 REX recorded $0.8 million of income from discontinued operations, net of tax compared with a $3.0 million loss from discontinued operations, net of tax in Q4‘08. In Q4 ‘09 REX recorded $1.3 million of income, net of tax related to gains on the disposal of discontinued operations, primarily related to the disposal of three properties formerly used in its retail operations compared with $0.1 million of income, net of tax related to the disposal of discontinued operations in the same period last fiscal year.

The table below summarizes net sales and revenue from REX’s alternative energy and real estate segments and income (loss) from continuing operations for the three and twelve month periods ended January 31, 2010 and January 31, 2009.

-more-


 

 

REX Reports Fiscal 2009 Fourth Quarter Results, 4/15/10

page 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

($in thousands)

 

January 31,

 

January 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

Net sales and revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative energy (1)

 

$

76,879

 

$

19,755

 

$

169,175

 

$

68,223

 

Real estate

 

 

295

 

 

111

 

 

1,089

 

 

415

 

 

 

 

 

 

 

Total net sales and revenues

 

$

77,174

 

$

19,866

 

$

170,264

 

$

68,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative energy (1)

 

$

14,691

 

$

2,560

 

$

21,923

 

$

807

 

Real estate

 

 

(1,806

)

 

111

 

 

(2,190

)

 

398

 

 

 

 

 

 

 

Total gross profit

 

$

12,885

 

$

2,671

 

$

19,733

 

$

1,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative energy (1)

 

$

15,604

 

$

(5,223

)

$

17,811

 

$

(8,992

)

Real estate

 

 

(1,877

)

 

50

 

 

(2,373

)

 

116

 

Corporate expense

 

 

(491

)

 

(438

)

 

(1,721

)

 

(2,038

)

Interest expense

 

 

(59

)

 

(96

)

 

(369

)

 

(387

)

Interest income

 

 

33

 

 

433

 

 

263

 

 

1,788

 

Income from synthetic fuel investments

 

 

—

 

 

—

 

 

—

 

 

691

 

 

 

 

 

 

 

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

 

$

13,210

 

$

(5,274

)

$

13,611

 

$

(8,822

)

 

 

 

 

 

 

 

 

(1)

Includes results attributable to non-controlling interest of approximately 44% for Levelland Hockley and 26% for One Earth Energy.

Supplemental Data Related to REX’s Alternative Energy Interests

At January 31, 2010 REX had interests in the following ethanol production facilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entity

 

REX’s
Capital
Investment
($ in
millions)

 

REX’s
Ownership
Interest

 

Debt
Investment
($ in millions)

 

Production
Nameplate
Capacity
(millions of
gallons)

 

Contingent
Commitment
($ in
millions)

 

 

 

 

 

 

 

Levelland Hockley County Ethanol, LLC

 

$16.5

 

56

%

 

 

$

6.3

 

 

40

 

 

 

$

1.5

 

 

Patriot Renewable Fuels, LLC

 

$16.0

 

23

%

 

 

$

1.0

 

 

100

 

 

 

 

—

 

 

One Earth Energy, LLC

 

$50.8

 

74

%

 

 

 

—

 

 

100

 

 

 

 

—

 

 

Big River Resources, LLC-W. Burlington

 

 

 

10

%

 

 

 

—

 

 

92

 

 

 

 

—

 

 

Big River Resources, LLC-Galva

 

$20.0

 

10

%

 

 

 

—

 

 

100

 

 

 

 

—

 

 

Big River United Energy, LLC (Dyersville) (1)

 

 

 

5

%

 

 

 

—

 

 

100

 

 

 

 

—

 

 

 

 

(1)

In August 2009, Big River Resources acquired a 50.5% interest in an ethanol production facility in Dyersville, Iowa. Reflecting REX’s 10% ownership interest in Big River Resources, LLC, REX has an ownership interest in this entity.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

 

 

 

2010

 

 

 

2009

 

 

 

2010

 

 

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Energy Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ethanol

 

$

65,335

 

 

85

%

$

15,633

 

 

79

%

$

140,443

 

 

83

%

$

55,989

 

 

82

%

Dried distiller grains

 

 

9,314

 

 

12

%

 

1,839

 

 

10

%

 

20,223

 

 

12

%

 

6,478

 

 

10

%

Wet distiller grains

 

 

2,092

 

 

3

%

 

2,127

 

 

11

%

 

7,953

 

 

5

%

 

5,449

 

 

8

%

Other

 

 

138

 

 

—

%

 

156

 

 

—

%

 

556

 

 

—

%

 

307

 

 

—

%

 

 

 

 

 

 

 

 

 

 

TOTAL ALTERNATIVE ENERGY SALES

 

$

76,879

 

 

100

%

$

19,755

 

 

100

%

$

169,175

 

 

100

%

$

68,223

 

 

100

%

 

 

 

 

 

 

 

 

 

 

-more-


 

 

REX Reports Fiscal 2009 Fourth Quarter Results, 4/15/10

page 4

The following table summarizes selected operating data from Levelland Hockley and One Earth, the Company’s consolidated ethanol production facilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

Average selling price per gallon of ethanol

 

$

1.80

 

$

1.79

 

$

1.68

 

$

2.14

 

Average selling price per ton of dried distiller grains

 

$

111.16

 

$

170.93

 

$

112.29

 

$

180.42

 

Average selling price per ton of wet distiller grains

 

$

31.26

 

$

54.24

 

$

41.53

 

$

51.74

 

Average cost per bushel of grain

 

$

3.53

 

$

3.81

 

$

3.58

 

$

4.82

 

Average cost of natural gas (per mmbtu)

 

$

4.42

 

$

6.64

 

$

4.28

 

$

9.01

 

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, sorghum, dried distiller grains, ethanol, 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.

-tables follow-


 

 

REX Reports Fiscal 2009 Fourth Quarter Results, 4/15/10

page 5

 

REX STORES CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Operations

(in thousands, except per share amounts)

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

January 31,

 

January 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

Net sales and revenue

 

$

77,174

 

$

19,866

 

$

170,264

 

$

68,638

 

Costs of sales

 

 

64,289

 

 

17,195

 

 

150,531

 

 

67,433

 

 

 

Gross profit

 

 

12,885

 

 

2,671

 

 

19,733

 

 

1,205

 

Selling, general and administrative expenses

 

 

(2,210

)

 

(867

)

 

(6,025

)

 

(6,640

)

Interest income

 

 

89

 

 

438

 

 

445

 

 

2,044

 

Interest expense

 

 

(1,494

)

 

(1,117

)

 

(4,741

)

 

(3,174

)

Other income

 

 

(18

)

 

—

 

 

748

 

 

—

 

Loss on early termination of debt

 

 

—

 

 

—

 

 

(89

)

 

—

 

Equity in income of unconsolidated ethanol affiliates

 

 

4,883

 

 

(2,117

)

 

6,027

 

 

849

 

Income from synthetic fuel investments

 

 

—

 

 

—

 

 

—

 

 

691

 

Losses on derivative financial instruments

 

 

(925

)

 

(4,282

)

 

(2,487

)

 

(3,797

)

 

 

Income (loss) from continuing operations before income taxes, and non-controlling interests

 

 

13,210

 

 

(5,274

)

 

13,611

 

 

(8,822

)

(Provision) benefit for income taxes

 

 

(4,274

)

 

2,049

 

 

(4,553

)

 

2,747

 

 

 

Income (loss) from continuing operations including non-controlling interests

 

 

8,936

 

 

(3,225

)

 

9,058

 

 

(6,075

)

Income (loss) from discontinued operations, net of tax

 

 

791

 

 

(3,014

)

 

2,120

 

 

(2,176

)

Gains on disposal of discontinued operations, net of tax

 

 

1,251

 

 

135

 

 

1,374

 

 

1,798

 

 

 

Net income (loss) including non-controlling interests

 

 

10,978

 

 

(6,104

)

 

12,552

 

 

(6,453

)

Net (income) loss attributable to non-controlling interests

 

 

(3,705

)

 

725

 

 

(3,900

)

 

3,156

 

 

 

Net income (loss) attributable to REX common shareholders

 

$

7,273

 

$

(5,379

)

$

8,652

 

$

(3,297

)

 

 

Weighted average shares outstanding - basic

 

 

9,326

 

 

9,516

 

 

9,254

 

 

10,170

 

 

 

Basic income (loss) per share from continuing operations*

 

$

0.56

 

$

(0.26

)

$

0.55

 

$

(0.29

)

Basic income (loss) per share from discontinued operations*

 

 

0.09

 

 

(0.32

)

 

0.23

 

 

(0.21

)

Basic income per share on disposal of discontinued operations*

 

 

0.13

 

 

0.01

 

 

0.15

 

 

0.18

 

 

 

Basic net income (loss) per share attributable to REX common shareholders

 

$

0.78

 

$

(0.57

)

$

0.93

 

$

(0.32

)

 

 

Weighted average shares outstanding – diluted

 

 

9,707

 

 

9,516

 

 

9,551

 

 

10,170

 

 

 

Diluted income (loss) per share from continuing operations*

 

$

0.54

 

$

(0.26

)

$

0.54

 

$

(0.29

)

Diluted income (loss) per share from discontinued operations*

 

 

0.08

 

 

(0.32

)

 

0.22

 

 

(0.21

)

Diluted income per share on disposal of discontinued operations*

 

 

0.13

 

 

0.01

 

 

0.15

 

 

0.18

 

 

 

Diluted net income (loss) per share attributable to REX common shareholders

 

$

0.75

 

$

(0.57

)

$

0.91

 

$

(0.32

)

 

 

*  Attributable to REX common shareholders

Amounts differ from those previously reported as a result of retail operations and certain real estate assets being reclassified as discontinued operations.

- balance sheet follows -


 

 

REX Reports Fiscal 2009 Fourth Quarter Results, 4/15/10

page 6

REX STORES CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(in thousands) Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31,
2010

 

January 31,
2009

 

January 31,
2008

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

100,398

 

$

91,991

 

$

127,716

 

Accounts receivable-net

 

 

9,123

 

 

4,197

 

 

1,877

 

Inventory-net

 

 

8,698

 

 

24,374

 

 

49,933

 

Refundable income taxes

 

 

12,813

 

 

7,790

 

 

1,522

 

Prepaid expenses and other

 

 

2,691

 

 

1,063

 

 

1,543

 

Deferred taxes-net

 

 

6,375

 

 

13,230

 

 

10,599

 

 

 

 

 

 

Total current assets

 

 

140,098

 

 

142,645

 

 

193,190

 

Property and equipment-net

 

 

246,874

 

 

235,454

 

 

136,505

 

Other assets

 

 

8,880

 

 

12,414

 

 

14,803

 

Goodwill

 

 

—

 

 

—

 

 

1,322

 

Deferred taxes-net

 

 

8,468

 

 

18,697

 

 

21,929

 

Equity method investments

 

 

44,071

 

 

38,861

 

 

38,748

 

Investment in debt instruments

 

 

1,014

 

 

933

 

 

—

 

Restricted investments

 

 

2,100

 

 

2,284

 

 

2,481

 

 

 

 

 

 

Total assets

 

$

451,505

 

$

451,288

 

$

408,978

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt and capital lease obligations-alternative energy

 

$

12,935

 

$

5,898

 

$

1,790

 

Current portion of long-term debt-other

 

 

371

 

 

1,576

 

 

2,311

 

Accounts payable - trade

 

 

6,976

 

 

24,917

 

 

27,253

 

Deferred income - extended warranties

 

 

7,818

 

 

11,952

 

 

14,448

 

Accrued restructuring charges

 

 

511

 

 

4,171

 

 

—

 

Deferred gain on sale and leaseback

 

 

—

 

 

1,558

 

 

1,436

 

Derivative financial instruments

 

 

1,829

 

 

1,996

 

 

293

 

Accrued real estate taxes

 

 

2,968

 

 

1,002

 

 

709

 

Other current liabilities

 

 

5,442

 

 

5,199

 

 

12,908

 

 

 

 

 

 

Total current liabilities

 

 

38,850

 

 

58,269

 

 

61,148

 

 

 

 

 

 

Long Term Liabilities

 

 

 

 

 

 

 

 

 

 

Long-term mortgage debt and capital lease obligations-alternative energy

 

 

124,093

 

 

94,003

 

 

22,072

 

Long-term mortgage debt and capital lease obligations

 

 

2,596

 

 

9,936

 

 

13,152

 

Deferred income - extended warranties

 

 

6,396

 

 

13,796

 

 

17,172

 

Deferred gain on sale and leaseback

 

 

—

 

 

3,467

 

 

4,493

 

Derivative financial instruments

 

 

4,055

 

 

4,032

 

 

2,308

 

Other

 

 

419

 

 

4,152

 

 

4,313

 

 

 

 

 

 

Total long-term liabilities

 

 

137,559

 

 

129,386

 

 

63,510

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

299

 

 

299

 

 

298

 

Paid-in capital

 

 

141,698

 

 

142,486

 

 

141,357

 

Retained earnings

 

 

290,984

 

 

282,332

 

 

285,629

 

Treasury stock

 

 

(186,407

)

 

(186,057

)

 

(170,693

)

Accumulated other comprehensive income, net of tax

 

 

49

 

 

—

 

 

—

 

 

 

 

 

 

Total REX shareholders’ equity

 

 

246,623

 

 

239,060

 

 

256,591

 

Non-controlling interests

 

 

28,473

 

 

24,573

 

 

27,729

 

 

 

 

 

 

Total equity

 

 

275,096

 

 

263,633

 

 

284,320

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

451,505

 

$

451,288

 

$

408,978

 

 

 

 

 

 

# # #