Rex American Resources reports strongest quarter ever

By Erin Voegele | May 28, 2014

Rex American Resources Inc. has released financial results for its fiscal 2014 first quarter, which ended April 30. The company has again reported record quarterly results, with net sales and revenue of $155.9 million, up from $178.4 for the same period of last year. Stuart Rose, CEO of Rex American Resources, called the quarter the best ever in the company’s history.

Quarterly gross profit was $36.6 million, up from $9 million during the same three-month period of 2013. Equity in income of unconsolidated ethanol affiliates increased to $8.3 million, up from $1.6 million during the first quarter of last year. Net income from continuing operations before income tax and non-controlling interests reached $38 million, up from $5.8 million during the first quarter of 2013. Net income attributable to shareholders increased to $21.7 million, up from $3.5 million in the first quarter of last year. Net income per share rose to a record $2.67 per share, compared to 43 cents last year.

“REX continued its strong operating and financial momentum as reflected by our record alternative energy first quarter gross profit, income of unconsolidated ethanol affiliates, net income attributable to REX common shareholders and diluted EPS. These results again highlight the leading technology and efficiency of our plants and our focus on managing costs and margins, combined with the benefit of a healthy fall 2013 U.S. corn harvest,” Rose said. 

During a call to discuss the quarterly results, Rose also noted that the company experienced strong demand for its distillers dried grains (DDGs), particularly from China. He also said that corn oil has continuing to be a very profitable coproduct.

According to Rose, Rex American Resources was able to by corn at below CBOT prices during the quarter. While some producers have struggled to access railcars, Rose said his company did not experience that problem. Rex American Resources, however, did face high natural gas prices, which Rose called the “only negative during the quarter.” The company paid an average of $9.33 per MMBtu for natural gas during the quarter. Natural gas cost us $14.6 million this year versus $6.6 million last year,” he said.

Moving forward, Rose said Rex American Resources expects the current quarter to be strong as well. “We expect to do well over 100 percent better than we did last year,” he said, noting that current crush spreads are strong.