Rex American Resources reports improved margins

By Erin Voegele | September 09, 2013

Rex American Resources Corp. recently released financial results for the second quarter of its 2013 fiscal year, the three months ended July 31. The company, which holds ownership interest in seven ethanol plants, reported improved ethanol crush spread margins.

Net income attributable to shareholders increased 623 percent when compared to the same quarter of last year, reaching $5.8 million. The company reported a net income attributable to shareholders of $800,000 during the second quarter of 2012. The increase is attributed to improved ethanol margins and higher prices for ethanol and distillers grains.

The company’s net sales revenue for the second quarter was $157.7 million, a 15 percent increase over the $153.2 million reported for the same period of last year. Rex generated gross profits of $11 million during the second quarter of 2013, up from $7 million during the same period of last year.

During a call to discuss the financial results, Stuart Rose, chairman and CEO of Rex American Resources, attributed the improved financial results to several factors. First, he said his company was able to procure corn. Second, he noted that the plants Rex holds ownership interest in were designed and built by Fagen Inc. and ICM Inc., which helps those plants outperform competitors. Rose also pointed to strong markets for corn oil and distillers grains as factors that improved the financial performance of the company’s renewable fuels segment.

Rex American Resources currently holds a 74 percent ownership in interest in Gibson, Ill-based One Earth Energy LLC, 99 percent interest in Marion, S.D.-based NuGen Energy LLC, 27 percent interest in Annawan, Ill.-based Patriot Holdings LLC, 10 percent interest in West Burlington, Iowa- based Big River Resources West Burlington LLC, 10 percent interest in Galva, Ill.-based Big River Resources Galva LLC, 5 percent interest in Dyersville, Iowa-based Big River United Energy LLC, and 10 percent interest in Boyceville, Wis.-based Big River Resources Boyceville LLC. Rex American Resources also has a real estate division and recently invested in a technology to extract heavy crude oil.