Exhibit 99
For Immediate Release
REX AMERICAN RESOURCES REPORTS FISCAL 2022
FOURTH QUARTER NET INCOME PER SHARE ATTRIBUTABLE
TO REX COMMON SHAREHOLDERS OF $0.47
Dayton, Ohio, (March 23, 2023) -- REX American Resources Corporation (NYSE: REX) (“REX” or “the Company”) today reported financial results for its fiscal 2022 fourth quarter (“Q4 ’22”) ended January 31, 2023. REX management will host a conference call and webcast today at 11:00 a.m. ET.
| Conference Call: | 212/231-2904 |
| Webcast / Replay URL: | www.rexamerican.com |
| The webcast will be available for replay for 30 days. |
REX American Resources’ Q4 ’22 results principally reflect its interests in six ethanol production facilities. The One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) ethanol production facilities are consolidated, 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 Q4 ’22 net sales and revenue were $200.2 million, compared with $212.0 million in Q4 ’21. The year-over-year net sales and revenue decrease primarily reflects a decrease in the quantities sold of ethanol, dried distillers grains and modified distillers grains. Q4 ’22 gross profit for the Company’s continuing operations was $14.9 million, compared with $38.8 million in Q4 ’21 reflecting increases in corn and natural gas prices. This led to Q4 ’22 income before income taxes and non-controlling interests of $13.3 million, compared with $36.6 million in the comparable year ago period.
Net income attributable to REX shareholders from continuing operations in Q4 ’22 was $8.2 million, compared to $21.3 million in Q4 ’21. Q4 ’22 basic and diluted net income per share attributable to REX common shareholders from continuing operations was $0.47, compared to $1.19 per share in Q4 ’21. Per share results for Q4 ’22 and Q4 ’21 are based on 17,416,000 and 17,818,000 diluted weighted average shares outstanding, respectively, reflecting the Company’s 3-for-1 common stock split effected August 5, 2022.
| REX American Resources Q4 ’22 Results, 3/23/23 | page 2 |
REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “In the fourth quarter, we saw a continuation of the difficult operating environment we faced throughout much of fiscal 2022, including year-over-year price increases in corn and natural gas of 22% and 12%, respectively, as well as weather-related disruptions. Given these challenges, we are pleased with our performance in the fourth quarter and full year, with earnings per share of $0.47 and $1.57, respectively. Our results demonstrate the resiliency of our operating model, our operational efficiency, and the effectiveness of our plant operations teams.
“We exited fiscal 2022 with a robust liquidity position, with approximately $281 million in cash and short-term investments and no debt. Thanks to our healthy financial foundation, we are well positioned to continue to strategically invest in the efficiency and capacity of our plants while pursuing and progressing against our carbon capture and sequestration initiatives.
“Looking ahead, we are excited by the many opportunities in front of us and remain confident in the value proposition that ethanol brings to consumers and the environment. We are also encouraged by the potentially compelling financial benefits of our carbon capture and sequestration initiatives on the back of the recently enacted Inflation Reduction Act and believe our efforts will yield significant financial benefits for our employees, partners and shareholders.”
Balance Sheet
As of January 31, 2023, REX had cash and cash equivalents and short-term investments of $280.9 million, $42.1 million of which was at the parent company, and $238.8 million of which was at its consolidated production facilities. This compares with cash, cash equivalents and short-term investments at January 31, 2022, of $255.7 million, $42.9 million of which was at the parent company, and $212.8 million of which was at its consolidated ethanol production facilities.
The following table summarizes select data related to REX’s
consolidated alternative energy interests:
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| January 31, | January 31, | ||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| Average selling price per gallon of ethanol | $ | 2.31 | $ | 2.36 | $ | 2.44 | $ | 2.21 | |||||||||
| Average selling price per ton of dried distillers grains | $ | 234.39 | $ | 192.20 | $ | 232.98 | $ | 197.86 | |||||||||
| Average selling price per pound of non-food grade corn oil | $ | 0.75 | $ | 0.60 | $ | 0.71 | $ | 0.50 | |||||||||
| Average selling price per ton of modified distillers grains | $ | 139.84 | $ | 89.99 | $ | 123.66 | $ | 85.19 | |||||||||
| Average cost per bushel of grain | $ | 7.10 | $ | 5.83 | $ | 7.24 | $ | 5.99 | |||||||||
| Average cost of natural gas (per MmBtu) | $ | 6.57 | $ | 5.85 | $ | 6.66 | $ | 4.27 | |||||||||
| REX American Resources Q4 ’22 Results, 3/23/23 | page 3 |
Fourth Quarter Conference Call
REX will host a conference call at 11:00 a.m. ET today to discuss the quarterly results and will host a question and answer session. The dial in number for the audio conference call is 212/231-2904 (domestic and international callers). Participants can also listen to a live webcast of the call on the Company’s website at, www.rexamerican.com. A webcast replay will be available for 30 days following the live event.
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 January 31, 2023. REX’s effective ownership of the trailing twelve-month gallons shipped (for the twelve months ended January 31, 2023) by the ethanol production facilities in which it has ownership interests was approximately 271 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, commodity market risk, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, changes in the international, national or regional economies, the impact of inflation, the ability to attract employees, 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 |
| REX American Resources Q4 ’22 Results, 3/23/23 | 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, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net sales and revenue | $ | 200,167 | $ | 212,016 | $ | 855,000 | $ | 774,802 | ||||||||
| Cost of sales | 185,268 | 173,239 | 800,269 | 677,242 | ||||||||||||
| Gross profit | 14,899 | 38,777 | 54,731 | 97,560 | ||||||||||||
| Selling, general and administrative expenses | (6,719 | ) | (6,032 | ) | (28,956 | ) | (28,476 | ) | ||||||||
| Equity in income of unconsolidated ethanol affiliates | 2,535 | 3,861 | 8,745 | 6,624 | ||||||||||||
| Interest and other income, net | 2,621 | 13 | 12,959 | 130 | ||||||||||||
| Income before income taxes and noncontrolling interests | 13,336 | 36,619 | 47,479 | 75,838 | ||||||||||||
| Provision for income taxes | (2,168 | ) | (10,702 | ) | (9,542 | ) | (19,031 | ) | ||||||||
| Net income from continuing operations | 11,168 | 25,917 | 37,937 | 56,807 | ||||||||||||
| Net income attributable to noncontrolling interests (continuing operations) | (3,007 | ) | (4,650 | ) | (10,240 | ) | (9,235 | ) | ||||||||
| Net income attributable to REX common shareholders (continuing operations) | 8,161 | 21,267 | 27,697 | 47,572 | ||||||||||||
| Net income from discontinued operations, net of tax | - | 132 | - | 4,395 | ||||||||||||
| Net loss attributable to noncontrolling interests (discontinued operations) | - | 27 | - | 397 | ||||||||||||
| Net income attributable to REX common shareholders (discontinued operations) | - | 159 | - | 4,792 | ||||||||||||
| Net income attributable to REX common shareholders | $ | 8,161 | $ | 21,426 | $ | 27,697 | $ | 52,364 | ||||||||
| Weighted average shares outstanding - basic and diluted | 17,416 | 17,818 | 17,638 | 17,946 | ||||||||||||
| Basic and diluted net income per share from continuing operations attributable to REX common shareholders | $ | 0.47 | $ | 1.19 | $ | 1.57 | $ | 2.65 | ||||||||
| Basic and diluted net income per share from discontinued operations attributable to REX common shareholders | - | 0.01 | - | 0.27 | ||||||||||||
| Basic and diluted net income per share attributable to REX common shareholders | $ | 0.47 | $ | 1.20 | $ | 1.57 | $ | 2.92 | ||||||||
- balance sheets follow -
| REX American Resources Q4 ’22 Results, 3/23/23 | page 5 |
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
Unaudited
| January 31, | January 31, | |||||||
| ASSETS: | 2023 | 2022 | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 69,612 | $ | 229,846 | ||||
| Short-term investments | 211,331 | 25,877 | ||||||
| Restricted cash | 1,735 | 2,222 | ||||||
| Accounts receivable | 25,162 | 25,821 | ||||||
| Inventory | 48,744 | 42,225 | ||||||
| Refundable income taxes | 2,962 | 6,677 | ||||||
| Prepaid expenses and other | 13,098 | 12,499 | ||||||
| Total current assets | 372,644 | 345,167 | ||||||
| Property and equipment, net | 135,497 | 137,554 | ||||||
| Operating lease right-of-use assets | 15,214 | 11,221 | ||||||
| Deferred taxes and other assets | 23,179 | 25,853 | ||||||
| Equity method investment | 33,045 | 30,566 | ||||||
| TOTAL ASSETS | $ | 579,579 | $ | 550,361 | ||||
| LIABILITIES AND EQUITY: | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable - trade | $ | 34,091 | $ | 32,266 | ||||
| Current operating lease liabilities | 5,180 | 4,600 | ||||||
| Accrued expenses and other current liabilities | 15,328 | 13,617 | ||||||
| Total current liabilities | 54,599 | 50,483 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred taxes | 1,097 | 3,132 | ||||||
| Long-term operating lease liabilities | 9,855 | 6,390 | ||||||
| Other long-term liabilities | 3,034 | 2,794 | ||||||
| Total long-term liabilities | 13,986 | 12,316 | ||||||
| EQUITY: | ||||||||
| REX shareholders’ equity: | ||||||||
| Common stock | 299 | 299 | ||||||
| Paid-in capital | 578 | - | ||||||
| Retained earnings | 640,826 | 611,607 | ||||||
| Treasury stock | (193,721 | ) | (181,114 | ) | ||||
| Total REX shareholders’ equity | 447,982 | 430,792 | ||||||
| Noncontrolling interests | 63,012 | 56,770 | ||||||
| Total equity | 510,994 | 487,562 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 579,579 | $ | 550,361 | ||||
- statements of cash flows follow -
| REX American Resources Q4 ’22 Results, 3/23/23 | page 6 |
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
Unaudited
| Twelve Months Ended | ||||||||
| January 31, | ||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income including noncontrolling interests | $ | 37,937 | $ | 61,202 | ||||
| Net income from discontinued operations, net of tax | - | 4,395 | ||||||
| Net income from continuing operations | 37,937 | 56,807 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation | 17,976 | 18,031 | ||||||
| Amortization of operating lease right-of-use assets | 5,328 | 5,560 | ||||||
| Income from equity method investments | (8,745 | ) | (6,624 | ) | ||||
| Dividends received from equity method investments | 6,266 | 5,514 | ||||||
| Interest income from investments | (2,839 | ) | (43 | ) | ||||
| Deferred income taxes | 915 | 12,730 | ||||||
| Stock based compensation expense | 1,930 | 1,753 | ||||||
| (Gain) loss on sale of property and equipment - net | (102 | ) | 30 | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 659 | (6,108 | ) | |||||
| Inventories | (6,519 | ) | (4,799 | ) | ||||
| Income taxes refundable | 3,715 | (1,103 | ) | |||||
| Other assets | (452 | ) | 199 | |||||
| Accounts payable - trade | 1,478 | 16,005 | ||||||
| Other liabilities | (2,752 | ) | 475 | |||||
| Net cash provided by operating activities from continuing operations | 54,795 | 98,427 | ||||||
| Net cash used in operating activities from discontinued operations | - | (6,716 | ) | |||||
| Net cash provided by operating activities | 54,795 | 91,711 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital Expenditures | (15,578 | ) | (5,126 | ) | ||||
| Purchase of short-term investments | (399,350 | ) | (88,949 | ) | ||||
| Sale of short-term investments | 216,735 | 99,309 | ||||||
| Deposits | (319 | ) | - | |||||
| Other | 5 | 60 | ||||||
| Net cash (used in) provided by investing activities | (198,507 | ) | 5,294 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Treasury stock acquired | (13,012 | ) | (6,627 | ) | ||||
| Payments to noncontrolling interests holders | (3,997 | ) | (4,772 | ) | ||||
| Net cash used in financing activities from continuing operations | (17,009 | ) | (11,399 | ) | ||||
| Net cash provided by financing activities from discontinued operations | - | 304 | ||||||
| Net cash used in financing activities | (17,009 | ) | (11,095 | ) | ||||
| NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (160,721 | ) | 85,910 | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of year | 232,068 | 146,158 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH - End of year | $ | 71,347 | $ | 232,068 | ||||
| Non-cash financing activities - Stock awards accrued | $ | 965 | $ | 1,580 | ||||
| Non-cash financing activities - Stock awards issued | $ | 1,539 | $ | 100 | ||||
| Non-cash investing activities - Accrued capital expenditures | $ | 425 | $ | 78 | ||||
| Right-of-use assets acquired and liabilities incurred upon lease execution | $ | 9,321 | $ | 4,103 | ||||
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