Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): December 3, 2024

 

REX AMERICAN RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)

 

Delaware	001-09097	31-1095548
(State or other jurisdiction	(Commission File No.)	(IRS Employer Identification No.)
of incorporation)

 

7720 Paragon Road Dayton, Ohio	45459
(Address of principal executive offices)	(Zip Code)

 

Registrant’s telephone number, including area code: [phone]

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Commons stock, $0.01 par value	REX	New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02.   Results of Operations and Financial Condition

 

On December 3, 2024, REX American Resources Corporation issued a press release announcing financial results for the three-month period ended October 31, 2024. The press release is furnished as Exhibit 99 to this report.

 

Item 9.01.   Financial Statements and Exhibits

	(c)	Exhibits. The following exhibits are furnished with this report:
		99   Press Release dated December 3, 2024
		104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	REX AMERICAN RESOURCES CORPORATION
Date: December 3, 2024	By:	/s/ DOUGLAS L. BRUGGEMAN
		Name: Douglas L. Bruggeman
		Title:   Vice President - Finance,
		Chief Financial Officer
		and Treasurer

Exhibit 99 

 

 

REX American Resources Reports Fiscal 2024 Third Quarter Net Income Per Share Attributable to REX Common Shareholders of $1.38, the Second-Best Quarterly Result in Company History

 

▪	Reported net income attributable to REX shareholders of $24.5 million for Fiscal Q3 ’24, compared to $26.1 million for Fiscal Q3 ‘23
▪	Generated $1.38 of net income per share in Fiscal Q3 ‘24, the second-best quarterly result in company history
▪	Reported gross profit of $39.7 million for Fiscal Q3 ‘24, compared to $39.3 million for Fiscal Q3 ‘23
▪	Reported consolidated ethanol sales volumes of 75.5 million gallons for Fiscal Q3 ‘24, an increase of approximately 3% compared to the same period in Fiscal 2023

 

Dayton, OH - Tuesday, December 3, 2024 - REX American Resources Corporation (“REX” or the “Company”) (NYSE: REX), a leading ethanol production company, today announced financial and operational results for the Company’s fiscal third quarter 2024.

 

REX American Resources’ fiscal third quarter 2024 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.

 

Fiscal Third Quarter 2024 Results

 

For fiscal third quarter 2024, REX reported net sales and revenue of $174.9 million, compared with $221.1 million for fiscal third quarter 2023. The year-over-year net sales and revenue decrease primarily reflects reduced pricing for ethanol and co-products. Fiscal third quarter 2024 gross profit for the Company was $39.7 million, compared with $39.3 million in fiscal third quarter 2023, reflecting decreased corn and natural gas prices. Interest and other income for the third fiscal quarter 2024 was $4.6 million, compared to $4.9 million for third fiscal quarter 2023. Income before income taxes and non-controlling interests for the third fiscal quarter 2024 was $39.5 million, compared with $41.3 million in the prior year period.

 

Net income attributable to REX shareholders in fiscal third quarter 2024 was $24.5 million, compared to $26.1 million in fiscal third quarter 2023. Fiscal third quarter 2024 diluted net income per share attributable to REX common shareholders was $1.38, compared to $1.49 per share in fiscal third quarter 2023. Per share results for fiscal third quarters 2024 and 2023 are based on 17,723,000 and 17,531,000 diluted weighted average shares outstanding, respectively.

 

Update on One Earth Energy Ethanol Production Expansion and Carbon Capture Projects

 

REX is progressing on the expansion of its ethanol production facility at the One Earth Energy facility in Gibson City, IL. REX expects to complete the expansion of the facility in the middle of 2025, which will increase production capacity from 150 million gallons per year to 175 million gallons per year.  Once this is achieved, REX plans to initiate further permitting of the facility to produce 200 million gallons per year of ethanol, which the Company expects will require no additional material capital expenditures.

 

At this time, the necessary utility interconnection work required for the ethanol production expansion and carbon capture and compression facility remains on track. The Illinois utility carrying out the interconnection work anticipates the new interconnection will be complete by first quarter 2025.

 

REX has substantially completed work on the carbon capture and compression portion of the One Earth Energy carbon capture and sequestration project. Currently, REX is focused on managing further near-term costs for the project as the Company awaits the approval of its Class VI injection well applications to the EPA, approval of other state and local permits, completion of interconnection work at the site previously mentioned, and the resolution of issues around the Illinois CO₂ pipeline moratorium.

 

Through the end of fiscal third quarter 2024, capital expenditures related to the One Earth Energy carbon capture and sequestration project totaled $52.9 million, and expenditures for expansion of ethanol production capacity totaled $50.2 million. The combined capital spending of $103.1 million remains on plan, with the Company still budgeting a total spend of $165-$175 million for these projects.

 

Balance Sheet

 

At the end of fiscal third quarter 2024 on October 31, 2024, REX had $365.1 million of cash, cash equivalents, and short-term investments available and no bank debt.

 

Management Commentary

 

“REX American continues to produce outsized positive results across market conditions thanks to our employees and management team and focused ethanol production operations,” said Zafar Rizvi, REX Chief Executive Officer. “Quarter after quarter, the REX team consistently demonstrates our ability to produce industry-leading results – and the third quarter was no exception. We delivered a year-over-year increase in gross margin by maximizing the production at our consolidated plants and carefully managing costs. As we look ahead to the future, and our planned increased production capacity coming online next year, we are excited for the anticipated step up in earnings potential from our expanded ethanol production operations.

 

“As we await permitting of the One Earth Energy carbon capture and sequestration facility, we remain positive about the eventual approval of our EPA Class VI injection well permit, as well as resolution of Illinois’ moratorium on CO₂ pipeline construction. We are working with our government partners and other stakeholders to make sure carbon capture and sequestration operations in the state are among the safest in the country. We look forward to further updates as things progress,” concluded Mr. Rizvi.

 

Conference Call Information

 

REX will host a conference call at 11:00 a.m. ET today to discuss the Company’s quarterly results and will also host a question and answer session. To access the conference call, interested parties may dial [phone] (US) or [phone] (international). Participants can also view an updated presentation, as well as listen to a live webcast of the call by going to the Investors section on the REX website at www.rexamerican.com. A replay will be available shortly after the live conference call and can be accessed by dialing [phone] (US) or [phone] (international). The passcode for the replay is 13749929. The replay will be available for 30 days after the call.

 

About REX American Resources Corporation

REX American Resources Corporation has interests in six ethanol production facilities, which in aggregate have production capacity totaling approximately 730 million gallons per year. REX’s effective ownership of annual volumes is approximately 300 million gallons. Further information about REX is available at www.rexamerican.com.

 

Forward-Looking Statements

 

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, distillers corn oil, commodity market risk, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, success in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, 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.

 

Investor Contacts

Douglas Bruggeman

Chief Financial Officer

 

Caldwell Bailey

ICR, Inc.

[e-mail]

 

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,
		2024				2023				2024				2023
Net sales and revenue		$	174,877			$	221,079			$	484,263			$	645,770
Cost of sales			135,196				181,789				410,358				577,962
Gross profit			39,681				39,290				73,905				67,808
Selling, general and administrative expenses			(8,426)				(7,609)				(20,977)				(21,996)
Equity in income of unconsolidated ethanol affiliates			3,621				4,738				7,086				9,275
Interest and other income, net			4,629				4,863				14,950				10,935
Income before income taxes and noncontrolling interests			39,505				41,282				74,964				66,022
Provision for income taxes			(9,402)				(9,640)				(17,581)				(15,396)
Net Income			30,103				31,642				57,383				50,626
Net Income attributable to noncontrolling interests			(5,603)				(5,566)				(10,314)				(10,259)
Net income attributable to REX common shareholders		$	24,500			$	26,076			$	47,069			$	40,367
Weighted average shares outstanding – basic			17,595				17,531				17,550				17,461
Basic net income per share attributable to REX common shareholders		$	1.39			$	1.49			$	2.68			$	2.31
Weighted average shares outstanding – diluted			17,723				17,531				17,673				17,461
Diluted net income per share attributable to REX common shareholders		$	1.38			$	1.49			$	2.66			$	2.31

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands)

Unaudited

 

		October 31,				January 31,
		2024				2024
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents		$	298,249			$	223,397
Short-term investments			66,826				155,260
Accounts receivable			22,331				23,185
Inventory			29,127				26,984
Refundable income taxes			5,556				5,728
Prepaid expenses and other			14,408				17,549
Total current assets			436,497				452,103
Property and equipment, net			200,496				155,587
Operating lease right-of-use assets			22,580				13,038
Other assets			17,074				9,138
Equity method investment			39,015				34,936
TOTAL ASSETS		$	715,662			$	664,802
LIABILITIES AND EQUITY:
CURRENT LIABILITIES:
Accounts payable – trade		$	22,220			$	42,073
Current operating lease liabilities			5,857				4,469
Accrued expenses and other current liabilities			15,883				19,717
Total current liabilities			43,960				66,259
LONG-TERM LIABILITIES:
Deferred taxes			5,694				1,598
Long-term operating lease liabilities			16,761				8,378
Other long-term liabilities			2,647				970
Total long-term liabilities			25,102				10,946
EQUITY:
REX shareholders’ equity:
Common stock			299				299
Paid-in capital			6,254				3,769
Retained earnings			748,830				701,761
Treasury stock			(190,892)				(191,911)
Total REX shareholders’ equity			564,491				513,918
Noncontrolling interests			82,109				73,679
Total equity			646,600				587,597
TOTAL LIABILITIES AND EQUITY		$	715,662			$	664,802

 

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

 

		Nine Months Ended
		October 31,				October 31,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income including noncontrolling interest		$	57,383			$	50,626
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			12,433				13,371
Amortization of operating lease right-of-use assets			4,192				3,766
Income from equity method investments			(7,086)				(9,275)
Dividends received from equity method investments			3,007				5,513
Interest income from investments			(4,219)				(6,950)
Deferred income taxes			11,934				10,048
Stock based compensation expense			2,980				5,146
Loss on disposal of property and equipment – net			45				205
Changes in assets and liabilities:
Accounts receivable			854				(4,976)
Inventories			(2,143)				11,229
Refundable income taxes			172				(1,486)
Other assets			(12,639)				(1,312)
Accounts payable – trade			(21,629)				(5,622)
Other liabilities			(6,178)				(4,819)
Net cash provided by operating activities			39,106				65,464
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures			(55,428)				(22,359)
Purchase of short-term investments			(210,328)				(378,381)
Maturity of short-term investments			302,981				337,490
Proceeds from sale of real estate and property and equipment			210				10
Deposits			195				(27)
Net cash provided by (used in) investing activities			37,630				(63,267)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments to noncontrolling interests holders			(1,884)				(716)
Net cash used in financing activities			(1,884)				(716)
NET INCREASE IN CASH AND CASH EQUIVALENTS			74,852				1,481
CASH AND CASH EQUIVALENTS – Beginning of period			223,397				71,347
CASH AND CASH EQUIVALENTS – End of period		$	298,249			$	72,828
Non-cash investing activities – Accrued capital expenditures		$	3,275			$	722
Non-cash investing activities – Capital additions transferred from prepaid expenses		$	188			$	-
Non-cash financing activities – Stock awards accrued		$	1,648			$	1,467
Non-cash financing activities – Stock awards issued		$	2,172			$	965
Right-of-use assets acquired and liabilities incurred upon lease execution		$	13,734			$	3,210

 

Source: REX American Resources Corporation

Document And Entity Information	Dec. 03, 2024
Document Information Line Items
Entity Registrant Name	REX AMERICAN RESOURCES CORPORATION
Trading Symbol	REX
Document Type	8-K
Amendment Flag	false
Entity Central Index Key	0000744187
Document Period End Date	Dec. 03, 2024
Entity Emerging Growth Company	false
Entity Incorporation, State or Country Code	DE
Entity File Number	001-09097
Entity Tax Identification Number	31-1095548
Entity Address, Address Line One	7720 Paragon Road
Entity Address, City or Town	Dayton
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45459
City Area Code	937
Local Phone Number	276-3931
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Commons stock, $0.01 par value
Security Exchange Name	NYSE

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