REX American Resources (REX)

[value1008]

REX earnings report out this a.m.-- note that EPS was juiced up by sale of Patriot plant. There has been an amazing amount of share buybacks going on; as of this morning, they report only 6.9M shares after almost 1million shares bought in just the past 4 months (the share-count was 8.2M a year ago). Moreover, the board authorized a new capacity to buy up to 500,000 more shares.

http://seekingalpha.com/pr/14512256-rex-american-resources-reports-second-quarter-diluted-eps-of-2_16


REX American Resources Reports Second Quarter Diluted EPS of $2.16
Thu August 27, 2015 7:01 AM|Business Wire | About: REX


-Announces New 500,000 Share Repurchase Program-

DAYTON, Ohio--(BUSINESS WIRE)-- REX American Resources Corporation (REX) today reported financial results for its fiscal 2015 second quarter (Q2 15) ended July 31, 2015. REX management will host a conference call and webcast today at 11:00 a.m. ET to review the results.


Conference Call:
[phone]


Webcast / Replay URL:


www.rexamerican.com/Corp/Page4.aspx
The webcast will be available for replay for 30 days


REX American Resources Q2 15 results principally reflect its interests in seven ethanol production facilities. The operations of One Earth Energy, LLC (One Earth) and NuGen Energy, LLC (NuGen) are consolidated, while those of its five other plants are reported as equity in income of unconsolidated ethanol affiliates. During the fiscal 2015 second quarter the Company recorded a $10.4 million pre-tax gain related to the June sale of its 26.6% interest in Patriot Holdings, LLC (Patriot). As such, equity in income of unconsolidated ethanol affiliates for the quarter ended July 31, 2015 includes two months contribution from REXs prior interest in Patriot.

REXs Q2 15 net sales and revenue totaled $113.5 million, compared with $150.2 million in Q2 14, principally reflecting reduced ethanol and distillers grains pricing. As a result of the tightening of ethanol crush spread margins and decline in distiller grains pricing, the Companys Q2 15 gross profit was $18.3 million, compared with $38.8 million in the prior year period. Again reflecting the current operating environment, Q2 15 equity in income of unconsolidated ethanol affiliates was $5.1 million, compared with $7.2 million in Q2 14. As a result, income from continuing operations before income taxes and non-controlling interests in Q2 15 were $27.4 million, compared with $40.7 million in Q2 14.

Net income attributable to REX shareholders in Q2 15 was $16.4 million, compared with $21.9 million in Q2 14, while Q2 15 diluted net income per share attributable to REX common shareholders was $2.16 per share, compared to $2.68 per share in Q2 14. Per share results in Q2 15 and Q2 14 are based on 7,580,000 and 8,182,000 diluted weighted average shares outstanding, respectively.

REXs Executive Chairman of the Board, Stuart Rose, commented, The second quarter operating environment improved from earlier in the year, yet remained challenging as we continued to experience lower production margins compared to last year. REX again leveraged the strategic location of our plants and our overall business model to continue to generate profitable operating results.

Additionally, in June we received approximately $45 million representing the cash consideration related to our interest in the Patriot plant following its sale. We allocated after-tax proceeds and cash to repurchase approximately 998,000 REX shares in fiscal 2015 to date.

During the Companys fiscal second quarter, REX purchased 764,339 shares of its common stock (at an average price of $60.43 per share). Subsequent to the end of the fiscal second quarter, the Company repurchased an additional 233,243 shares (at an average price of $49.78 per share), thus completing the previously announced share repurchase program. Reflecting all purchases to date, REX presently has 6,905,193 shares of common stock outstanding.

In addition, on August 26, 2015, REXs Board of Directors approved a new share repurchase plan providing the Company with the authority to repurchase up to 500,000 shares of its common stock. Share repurchases will be made from time to time in open market or private transactions at prevailing market prices, and all shares purchased will be held in the Companys treasury for possible future use.

Balance Sheet

At July 31, 2015, REX had cash and cash equivalents of $138.1 million, $68.5 million of which was at the parent company and $69.6 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $137.7 million at January 31, 2015, $82.9 million of which was at the parent company and $54.8 million of which was at its consolidated ethanol production facilities.

The following table summarizes select data related to the Companys consolidated alternative energy interests:

Three Months

Ended
Six Months

Ended
July 31, July 31,


2015


2014


2015


2014
Average selling price per gallon of ethanol

$


1.50


$


2.18


$


1.46


$


2.16

Average selling price per ton of dried distillers grains

$


169.31


$


192.77


$


156.16


$


201.57

Average selling price per pound of non-food grade corn oil

$


0.28


$


0.36


$


0.28


$


0.34

Average selling price per ton of modified distillers grains

$


73.95


$


68.49


$


78.48


$


81.88

Average cost per bushel of grain $ 3.64 $ 4.47 $ 3.65 $ 4.41

Average cost of natural gas (per mmbtu)

$


3.42


$


5.14


$


4.13


$


7.27


Supplemental Data Related to REXs Alternative Energy Interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of July 31, 2015

(gallons in millions)

Entity


Trailing
Twelve
Months
Gallons
Shipped


Current
REX
Ownership
Interest


REXs Current Effective
Ownership of Trailing
Twelve Month Gallons
Shipped

One Earth Energy, LLC
(Gibson City, IL)
112.7 74.6% 84.1

NuGen Energy, LLC
(Marion, SD)
117.3 99.5% 116.7

Big River Resources West Burlington, LLC
(West Burlington, IA)
105.8 9.7% 10.3

Big River Resources Galva, LLC
(Galva, IL)
115.9 9.7% 11.2

Big River United Energy, LLC
(Dyersville, IA)
123.8 4.9% 6.1

Big River Resources Boyceville, LLC
(Boyceville, WI)
57.7 9.7% 5.6
Total 633.2 n/a 234.0


About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 633 million gallons of ethanol over the twelve month period ended July 31, 2015. REXs effective ownership of the trailing twelve month gallons shipped (for the twelve months ended July 31, 2015) by the ethanol production facilities in which it currently has ownership interests was approximately 234 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 Companys filings with the Securities and Exchange Commission and include among other things: the impact of legislative changes, the price volatility and availability of corn, dried and modified distillers grains, ethanol, corn oil, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, transportation delays, 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.



REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
Unaudited

Three Months

Ended
Six Months

Ended


July 31,


July 31,


2015


2014


2015


2014
Net sales and revenue $ 113,480 $ 150,231 $ 218,677 $ 306,156
Cost of sales 95,204 111,391 191,274 230,681
Gross profit 18,276 38,840 27,403 75,475
Selling, general and administrative expenses (6,456 ) (4,839 ) (10,909 ) (11,010 )
Gain on sale of investment 10,385 - 10,385 -
Equity in income of unconsolidated ethanol affiliates 5,063 7,245 6,543 15,542
Gain on disposal of property and equipment, net 12 - 495 -
Interest and other income 107 87 325 135
Interest expense - (591 ) - (1,283 )
Income from continuing operations before income taxes and non-controlling interests

27,387


40,742


34,242


78,859

Provision for income taxes (8,676 ) (14,017 ) (11,092 ) (27,937 )
Income from continuing operations including non-controlling interests

18,711


26,725


23,150


50,922

Loss from discontinued operations, net of tax - (12 ) - (9 )
Gain on disposal of discontinued operations, net of tax

-


5
- 5
Net income including non-controlling interests 18,711 26,718 23,150 50,918
Net income attributable to non-controlling interests (2,344 ) (4,811 ) (2,856 ) (7,269 )
Net income attributable to REX common shareholders $ 16,367 $ 21,907 $ 20,294 $ 43,649

Weighted average shares outstanding basic 7,580 8,182 7,737 8,150

Basic net income per share attributable to REX common shareholders

$


2.16


$


2.68


$


2.62


$


5.36


Weighted average shares outstanding diluted 7,580 8,182 7,737 8,166

Diluted net income per share attributable to REX common shareholders

$


2.16


$


2.68


$


2.62


$


5.35


Amounts attributable to REX common shareholders:
Income from continuing operations, net of tax $ 16,367 $ 21,914 $ 20,294 $ 43,653
Loss from discontinued operations, net of tax

-


(7


)
- (4 )
Net income $ 16,367 $ 21,907 $ 20,294 $ 43,649



REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands) Unaudited


ASSETS:


July 31,
2015


January 31,
2015
CURRENT ASSETS:
Cash and cash equivalents $ 138,107 $ 137,697
Restricted cash 203 -
Accounts receivable 13,736 8,794
Inventory 23,250 18,062
Refundable income taxes 2,958 3,019
Prepaid expenses and other 5,854 5,810
Deferred taxes-net

2,363


2,363

Total current assets 186,471 175,745
Property and equipment-net 189,056 194,447
Other assets 8,118 6,366
Equity method investments 41,778 80,389
TOTAL ASSETS $ 425,423 $ 456,947
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Accounts payable trade $ 11,975 $ 9,210
Accrued expenses and other current liabilities

8,223


10,347

Total current liabilities

20,198


19,557

LONG TERM LIABILITIES:
Deferred taxes 34,999 42,768
Other long term liabilities 797 1,658
Total long term liabilities

35,796


44,426

COMMITMENTS AND CONTINGENCIES
EQUITY:
REX shareholders equity:
Common stock, 45,000 shares authorized, 29,853 shares issued at par 299 299
Paid in capital 144,801 144,791
Retained earnings 464,732 444,438
Treasury stock, 22,715 shares

(285,745


)


(239,557


)
Total REX shareholders equity 324,087 349,971
Non-controlling interests 45,342 42,993
Total equity

369,429


392,964

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 425,423 $ 456,947



REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands) Unaudited



Six Months Ended
July 31,


2015


2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 23,150 $ 50,918
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, impairment charges and amortization 9,430 8,350
Income from equity method investments (6,543 ) (15,542 )
Gain on sale of investment (10,385 ) -
Gain on disposal of property and equipment, net (495 ) (3 )
Dividends received from equity method investments 5,638 8,592
Derivative financial instruments - (770 )
Deferred income tax (8,644 ) 5,323
Stock based compensation expense 10 -
Excess tax benefit from stock option exercises - (441 )
Changes in assets and liabilities:
Accounts receivable (2,754 ) 2,494
Inventories (5,188 ) 2,083
Other assets 192 463
Accounts payable-trade 261 (198 )
Other liabilities (2,110 ) 353
Net cash provided by operating activities 2,562 61,622
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (5,865 ) (3,402 )
Restricted cash (203 ) 500
Restricted investment and deposits 250 273
Proceeds from sale of investment 45,476 -
Proceeds from sale of real estate and property and equipment, net 1,935 487
Other 12 -
Net cash provided by (used in) investing activities 41,605 (2,142 )
CASH FLOWS FROM FINANCING ACTIVITIES:

Payments of long term debt
- (13,726 )
Stock options exercised - 931
Payments to noncontrolling interests holders (507 ) (39 )
Excess tax benefit from stock option exercises - 441
Treasury stock acquired (43,250 ) -
Net cash used in financing activities (43,757 ) (12,393 )
NET INCREASE IN CASH AND CASH EQUIVALENTS 410 47,087
CASH AND CASH EQUIVALENTS-Beginning of year 137,697 105,149
CASH AND CASH EQUIVALENTS-End of year $ 138,107 $ 152,236
Non cash investing activities Accrued capital expenditures $ 370 $ 239
Non cash financing activities Accrued treasury stock purchases $ 2,938 $ -








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REX American Resources Corporation
Douglas Bruggeman, 937-276-3931
Chief Financial Officer
or
JCIR
Joseph Jaffoni, Norberto Aja
212-835-8500
[e-mail]

Source: REX American Resources Corporation