Exhibit 99
| News Announcement | For Immediate Release |
REX AMERICAN RESOURCES REPORTS FISCAL 2021
THIRD QUARTER NET INCOME PER SHARE ATTRIBUTABLE TO
REX COMMON SHAREHOLDERS INCREASE OF 78% TO $2.56
Dayton, Ohio, (December 1, 2021) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2021 third quarter (“Q3 ’21”) ended October 31, 2021. REX management will host a conference call and webcast today at 11:00 a.m. ET.
| Conference Call: | 212/231-2932 |
| Webcast / Replay URL: | www.rexamerican.com |
| The webcast will be available for replay for 30 days. |
REX American Resources’ Q3 ’21 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 the four other ethanol plants are reported as equity in income of unconsolidated ethanol affiliates. The Company reports results for its ethanol and by-products component as continuing operations and beginning in the third quarter of fiscal 2021 its refined coal component as discontinued operations as operations have now ceased.
REX’s Q3 ’21 net sales and revenue were $203.1 million, compared with $124.2 million in Q3 ’20. The year-over-year net sales and revenue increase was primarily due to higher ethanol, distillers grains, and corn oil pricing. Reflecting the revenue growth, which was partially offset by increased costs in corn and natural gas, Q3 ’21 gross profit for the Company’s continuing operations increased to $25.2 million, compared with $18.9 million in Q3 ’20. As a result, the Company reported Q3 ’21 income before income taxes and non-controlling interests from continuing operations of $19.2 million, compared with $16.3 million in the comparable year ago period.
Net income attributable to REX shareholders in Q3 ’21 was $15.3 million, compared to $8.8 million in Q3 ’20. Q3 ’21 basic and diluted net income per share attributable to REX common shareholders was $2.56, compared to net income per share of $1.44 in Q3 ’20. Per share results in Q3 ’21 and Q3 ’20 are based on 5,963,000 and 6,143,000 diluted weighted average shares outstanding, respectively.
REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We are pleased to report strong results for the fiscal third quarter and year to date, including earnings per share of $2.56 for the quarter and $5.16 for the nine months ended October 31, 2021. We experienced significantly improved pricing across all of our ethanol products, which more than offset higher input costs and which led to improved results.
-more-
| REX American Resources Q3 ’21 Results, 12/1/2021 | page 2 |
“We remain confident in our steadfast principles of ethanol production, which combined with our focus on efficiencies and the operational excellence of our plants continues to create additional value for our shareholders. I would like to again recognize the hard work and dedication of our employees as we navigated through the past 18 months.”
Balance Sheet
At October 31, 2021, REX had cash and cash equivalents and short-term investments of $219.0 million, $33.9 million of which was at the parent company, and $185.1 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2021, of $180.7 million, $48.2 million of which was at the parent company, and $132.5 million of which was at its consolidated ethanol production facilities.
During the fiscal third quarter ended October 31, 2021 the Company repurchased 66,792 shares of its common stock at a cost of $5.3 million. The Company is currently authorized to repurchase up to an additional 449,413 shares of common stock and has approximately 5,920,351 shares of common stock outstanding.
-more-
| REX American Resources Q3 ’21 Results, 12/1/2021 | page 3 |
The following table summarizes select data related to REX’s
consolidated alternative energy interests:
| Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Average selling price per gallon of ethanol | $ | 2.31 | $ | 1.31 | $ | 2.12 | $ | 1.28 | ||||||||
| Average selling price per ton of dried distillers grains | $ | 184.85 | $ | 129.38 | $ | 200.02 | $ | 136.49 | ||||||||
| Average selling price per pound of non-food grade corn oil | $ | 0.59 | $ | 0.24 | $ | 0.47 | $ | 0.25 | ||||||||
| Average selling price per ton of modified distillers grains | $ | 92.10 | $ | 56.68 | $ | 83.97 | $ | 52.44 | ||||||||
| Average cost per bushel of grain | $ | 6.45 | $ | 3.28 | $ | 6.05 | $ | 3.57 | ||||||||
| Average cost of natural gas (per MmBtu) | $ | 4.58 | $ | 2.09 | $ | 3.69 | $ | 2.87 | ||||||||
Supplemental data related to REX’s ethanol interests:
REX American Resources Corporation (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 |
137.9 | 75.8% | 104.5 |
NuGen Energy, LLC Marion, SD |
137.8 | 99.7% | 137.4 |
Big River Resources West Burlington, LLC West Burlington, IA |
110.3 | 10.3% | 11.4 |
Big River Resources Galva, LLC Galva, IL |
116.0 | 10.3% | 11.9 |
Big River United Energy, LLC Dyersville, IA |
125.3 | 5.7% | 7.1 |
Big River Resources Boyceville, LLC Boyceville, WI |
63.6 | 10.3% | 6.6 |
| Total | 690.9 | n/a | 278.9 |
Third 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 212/231-2932 (domestic and international callers).
Participants can also listen to a live webcast of the call on the Company’s website, www.rexamerican.com. A webcast replay will be available for 30 days following the live event.
-more-
| REX American Resources Q3 ’21 Results, 12/1/2021 | page 4 |
About REX American Resources Corporation
REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 691 million gallons of ethanol over the twelve-month period ended October 31, 2021. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended October 31, 2021) by the ethanol production facilities in which it has ownership interests was approximately 279 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 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 Q3 ’21 Results, 12/1/2021 | page 5 |
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited
| Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net sales and revenue | $ | 203,066 | $ | 124,217 | $ | 562,786 | $ | 246,694 | ||||||||
| Cost of sales | 177,914 | 105,288 | 504,003 | 235,435 | ||||||||||||
| Gross profit (loss) | 25,152 | 18,929 | 58,783 | 11,259 | ||||||||||||
| Selling, general and administrative expenses | (6,310) | (4,269) | (22,444) | (13,407) | ||||||||||||
| Equity in income (loss) of unconsolidated ethanol affiliates | 349 | 1,152 | 2,763 | 168 | ||||||||||||
| Interest and other income, net | 35 | 537 | 117 | 1,403 | ||||||||||||
| Income (loss) before income taxes and non-controlling interests | 19,226 | 16,349 | 39,219 | (577) | ||||||||||||
| (Provision) benefit for income taxes | (4,338) | (5,037) | (8,329) | 444 | ||||||||||||
| Net income (loss) from continuing operations including non-controlling interests | 14,888 | 11,312 | 30,890 | (133) | ||||||||||||
| Net income attributable to non-controlling interests (continuing operations) | (1,562) | (2,276) | (4,585) | (1,331) | ||||||||||||
| Net income (loss) attributable to REX common shareholders (continuing operations) | 13,326 | 9,036 | 26,305 | (1,464) | ||||||||||||
| Net income (loss) from discontinued operations, net of tax | 1,815 | (253) | 4,263 | 729 | ||||||||||||
| Net income attributable to noncontrolling interests (discontinued operations) | 137 | 58 | 370 | 193 | ||||||||||||
| Net income (loss) attributable to REX common shareholders (discontinued operations) | 1,952 | (195) | 4,633 | 922 | ||||||||||||
| Net income (loss) attributable to REX common shareholders | $ | 15,278 | $ | 8,841 | $ | 30,938 | $ | (542) | ||||||||
| Weighted average shares outstanding – basic and diluted | 5,963 | 6,143 | 5,994 | 6,221 | ||||||||||||
| Basic and diluted net income (loss) per share from continuing operations attributable to REX common shareholders | $ | 2.23 | $ | 1.47 | $ | 4.39 | $ | (0.24) | ||||||||
| Basic and diluted net income (loss) per share from discontinued operations attributable to REX common shareholders | 0.33 | (0.03) | 0.77 | 0.15 | ||||||||||||
| Basic and diluted net income (loss) per share attributable to REX common shareholders | $ | 2.56 | $ | 1.44 | $ | 5.16 | $ | (0.09) | ||||||||
- balance sheets follow -
| REX American Resources Q3 ’21 Results, 12/1/21 | page 6 |
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Unaudited
| ASSETS | October 31, 2021 | January 31, 2021 | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 197,395 | $ | 144,501 | ||||
| Short-term investments | 21,620 | 36,194 | ||||||
| Restricted cash | 1,737 | 1,657 | ||||||
| Accounts receivable | 40,026 | 19,713 | ||||||
| Inventory | 29,753 | 37,426 | ||||||
| Refundable income taxes | 5,930 | 6,020 | ||||||
| Prepaid expenses and other | 10,389 | 12,751 | ||||||
| Current assets held for sale | 392 | 488 | ||||||
| Total current assets | 307,242 | 258,750 | ||||||
| Property and equipment-net | 141,205 | 150,861 | ||||||
| Operating lease right-of-use assets | 11,817 | 12,678 | ||||||
| Deferred taxes and other assets | 33,190 | 25,275 | ||||||
| Equity method investment | 30,715 | 29,456 | ||||||
| Assets held for sale | 233 | 2,325 | ||||||
| TOTAL ASSETS | $ | 524,402 | $ | 479,345 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable – trade | $ | 27,133 | $ | 16,573 | ||||
| Current operating lease liabilities | 4,999 | 4,875 | ||||||
| Accrued expenses and other current liabilities | 14,121 | 8,754 | ||||||
| Current liabilities held for sale | 282 | 535 | ||||||
| Total current liabilities | 46,535 | 30,737 | ||||||
| LONG TERM LIABILITIES: | ||||||||
| Deferred taxes | 4,030 | 3,713 | ||||||
| Long-term operating lease liabilities | 6,553 | 7,439 | ||||||
| Other long-term liabilities | 2,581 | 273 | ||||||
| Total long-term liabilities | 13,164 | 11,425 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY: | ||||||||
| REX shareholders’ equity: | ||||||||
| Common stock, 45,000 shares authorized, 29,853 shares issued at par | 299 | 299 | ||||||
| Paid in capital | 149,299 | 149,110 | ||||||
| Retained earnings | 620,924 | 589,986 | ||||||
| Treasury stock, 23,933 shares | (361,199) | (354,612) | ||||||
| Total REX shareholders’ equity | 409,323 | 384,783 | ||||||
| Non-controlling interests | 55,380 | 52,400 | ||||||
| Total equity | 464,703 | 437,183 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 524,402 | $ | 479,345 | ||||
- statements of cash flows follow -
| REX American Resources Q3 ’21 Results, 12/1/21 | page 7 |
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Unaudited
| Nine Months Ended October 31, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 35,153 | $ | 596 | ||||
| Net income from discontinued operations, net of tax | 4,263 | 729 | ||||||
| Net income (loss) from continuing operations | 30,890 | (133) | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 13,505 | 13,604 | ||||||
| Amortization of operating lease right-of-use assets | 4,128 | 3,982 | ||||||
| Stock based compensation expense | 1,100 | 122 | ||||||
| Income from equity method investments | (2,763) | (168) | ||||||
| Dividends received from equity method investments | 1,504 | 2,506 | ||||||
| Interest income from investments | (36) | (200) | ||||||
| Deferred income tax | 5,840 | (356) | ||||||
| Gain on disposal of property and equipment | (1) | (58) | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (20,313) | 473 | ||||||
| Inventory | 7,673 | 14,000 | ||||||
| Refundable income taxes | (332) | (130) | ||||||
| Other assets | 1,912 | (611) | ||||||
| Accounts payable-trade | 10,916 | (4,361) | ||||||
| Other liabilities | 2,776 | (4,966) | ||||||
| Net cash provided by operating activities from continuing operations | 56,799 | 23,704 | ||||||
| Net cash used in operating activities from discontinued operations | (6,368) | (2,205) | ||||||
| Net cash provided by operating activities | 50,431 | 21,499 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (4,245) | (6,610) | ||||||
| Purchases of short-term investments | (67,412) | (68,225) | ||||||
| Sales of short-term investments | 82,022 | 65,282 | ||||||
| Other | 40 | (474) | ||||||
| Net cash provided by (used in) investing activities | 10,405 | (10,027) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Treasury stock acquired | (6,627) | (18,089) | ||||||
| Payments to noncontrolling interests holders | (1,515) | (283) | ||||||
| Net cash used in financing activities from continuing operations | (8,142) | (18,372) | ||||||
| Net cash provided by financing activities from discontinued operations | 280 | 88 | ||||||
| Net cash used in financing activities | (7,862) | (18,284) | ||||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 52,974 | (6,812) | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH-Beginning of period | 146,158 | 180,771 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH-End of period | $ | 199,132 | $ | 173,959 | ||||
| Non-cash financing activities – Stock awards issued | $ | 100 | $ | 240 | ||||
| Non-cash financing activities – Stock awards accrued | $ | 972 | $ | - | ||||
| Non-cash investing activities – Accrued capital expenditures | $ | 34 | $ | 198 | ||||
| Right-of use assets acquired and liabilities incurred upon lease execution | $ | 3,267 | $ | 1,863 | ||||
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