REX American Resources (REX)

[Dutch1]

REX Q1 2015 Earnings Conference Call

http://seekingalpha.com/article/3203506-rex-american-resources-rex-ceo-stuart-rose-on-q1-2015-results-earnings-call-transcript?part=single

May 21, 2015 11 AM ET

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the REX American Resources First Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Mr. Doug Bruggeman, Chief Financial Officer. Please go ahead, sir.
Doug Bruggeman - Chief Financial Officer

Thank you, operator. I’m joined on the call this morning by Stuart Rose, Chairman of the Board and Zafar Rizvi, Chief Operating Officer.

We’ll get to our presentation and comments momentarily, as well as your Q&A, but first I’ll review the Safe Harbor disclosure. In addition to historical facts or statements of current conditions, today’s conference call contains forward-looking statements that involve risk and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’s current expectations and beliefs, but are not guarantees of future performance. As such, actual results may vary materially from expectations.

The risks and uncertainties associated with the forward-looking statements are described in today’s news announcement and in the company’s filings with the Securities and Exchange Commission, including the company’s reports on Form 10-K and 10-Q. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements.

I’d now like to give a brief overview of our first quarter financial performance. We’re pleased to report earnings per share $0.50 for the first quarter during a period of lower crush margins for the industry which has since moderated. Sales declined approximately 33% due to lower ethanol and DDG pricing, gallons this year were 55.8 million versus 55.6 million last year for our two consolidated plants. Crush spreads this year were $0.11 versus $0.58 last year. When we’re talking about crush spread we’re just referring to the spread between ethanol and corn pricing.

SG&A was down mostly due to lower incentive compensation cost based upon lower profitability in the first quarter this year. Equity income from non-consolidated plants decreased from $8.3 million to $1.5 million, consistent with industry conditions. [indiscernible] all of the ethanol plants we’re involved in for the first quarter were profitable....


For the complete transcript: http://seekingalpha.com/article/3203506-rex-american-resources-rex-ceo-stuart-rose-on-q1-2015-results-earnings-call-transcript?part=single