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Rex turns $4.7M profit
Dayton Business Journal
Date: Wednesday, June 1, 2011, 10:32am EDT


REX American Resources Corp. posted a 12 percent increase in earnings for its first quarter ending April 31. Net income grew to $4.7 million, or 49 cents per diluted share, compared with $4.2 million, or 42 cents per diluted share, in first quarter 2010.

The Dayton-based alternative energy investor’s net revenue grew 13.9 percent to $81.2 million this quarter, compared with $71.3 million a year ago. The company attributes the growth to a 35.8 percent increase in ethanol pricing and higher prices for dried distiller grain.

The growth comes on the heels of the company’s fourth quarter loss of $4.6 million, or 49 cents per share, from a one-time $11.2 million impairment charge it was assessed due to its reduction in ownership of Levelland Hockley County Ethanol. Growth this quarter “more than offset” that loss, Rex (NYSE: REX) said in a statement.

Because Rex calculates results from its ethanol interests by the calendar year, it included in its first-quarter earnings numbers from Jan. 1, 2011 through March 31, 2011.

Rex repurchased about 29,000 shares of common stock in the first quarter at an average price of $16.39 per share. Rex is authorized to repurchase up to about 439,000 shares of common stock.

Rex competes against companies including Archer Daniels Midland Co. (NYSE: ADM), BioFuel Energy Corp. (Nasdaq: BIOF) and Green Plains Renewable Energy Inc. (Nasdaq: GPRE).

Rex, a former electronics retailer, has interests in seven ethanol production facilities, representing ownership of about 169 million gallons per year of annual nameplate capacity. The total capacity of these facilities is about 592 million gallons per year.

Read more: Rex turns $4.7M profit | Dayton Business Journal