Rex American Resources reports record quarter, record year

By Erin Voegele | March 27, 2014

Rex American Resources Corp. has released its fiscal year 2013 financial results, reporting record net income of $35.1 million, compared to a $2.3 million loss in 2012. Earnings per share were $4.15 in 2013, compared to a 35 cent loss the previous year. Net income also set a quarterly record during the final three months of the year, with $15.9 million, or $1.95 per share, up from a $4.4 million loss, or 54 cent per share loss, during the same quarter of 2012.

Net sales for 2013 reached a record $666.1 million, up from $656.6 million in 2012. Gross profit for 2013 was $64.2 million, up from $13.6 million in 2012.

Rex reported an average selling price for ethanol of $2.20 per gallon in 2103, down from $2.23 the previous year. The average price during the final quarter of 2013 was $1.86 per gallon, down from $2.29the same period of 2012.

The average selling price of dried distillers grains in 2013 was $233.27 per ton, down from $235.56 per ton in 2012. The average selling price for modified distillers grains was $114.91 per ton in 2013, down from $117.89 per ton the previous fiscal year.

The average price of a bushel of grain also dropped from $7.14 in fiscal 2012, to $6.27 in fiscal 2013. In the fourth quarter of last year, the price of grain fell to $4.50 per bushel, compared to $7.68 during the same quarter of the previous year.

During a call to discuss the results, Rex CEO Stuart Rose, said that moving into 2014, the company expects the current quarter to set records as well. He also spoke briefly about transportation issues, noting that although some ethanol producers have experienced rail car shortages, Rex hasn’t had any such problems to date.

Rose also noted that Rex is currently generating large amounts of cash, which is allowing the company to pay down its debt and raise its cash balances. He said the company remains on the lookout for other properties, but is not currently negotiating any transactions. He said the company plans to try to add more corn storage and ethanol storage to its facilities, and indicated there is always a chance that the company could acquire some additional shares in the ethanol plants it already owns a minority of.