Rex American Resources reports profitable fourth quarter

By Erin Voegele | March 24, 2016

Rex American Resources Corp. has released financial results for the fiscal year ended Jan. 31, reporting net sales and revenue for the year were $436.5 million, down from $572.2 million in fiscal 2014. Gross profit was $50.8 million, down from $141.9 million.

For fiscal 2015, Rex reported net income attributable to Rex shareholders of $31.4 million, down from $87.3 million in fiscal 2014. Diluted net income per share attributable to Rex common shareholders was $4.30 in fiscal 2015, compared to $10.76 per share in fiscal 2014.

In the fourth quarter, Rex reported net sales and revenue of $107.2 million, down from $127.7 million during the same quarter of the prior year. Fourth quarter gross profit was $9.2 million, down from $30 million in the fourth quarter of fiscal 2014.

Net income attributable to Rex shareholders was $3.7 million in the fourth quarter, down from $20.3 million during the same quarter of the previous year. Fourth quarter diluted net income per share attributable to Rex common shareholders was 54 cents per share, compared to $2.55 per share in the fourth quarter of 2014.

During an investor call, Stuart Rose, executive chairman of Rex, noted that although the company did post a profit during the fourth quarter, the ethanol industry was impacted by several negative factors, including falling oil prices and reduced demand for distillers grains. On the positive side, he said the industry is experiencing relatively low corn prices and low natural gas prices. Moving forward in the first quarter of 2016, he said the company is operating near breakeven. It’s still very, very tough, he said, noting that the crush spread is down and the high volume of ethanol in storage is putting downward pressure on ethanol prices.

According to information released by Rex, the average selling price for ethanol was $1.39 per gallon in fiscal 2015, down from $1.81 per gallon the previous year. The average price for dried distillers grains was $123.21 per ton, up from $117.08. The average selling price for non-food grade corn oil fell to 23 cents per pound, down from 28 cents per pound in fiscal 2014. The average price for modified distillers grains was $57.67 per ton, up slightly from $57.51 per ton in fiscal 2014. The average cost per bushel of grain was $3.56, up from $3.54. The average cost of natural gas, however, fell from $5.22 per mmBtu in fiscal 2014 to $3.38 per mmBtu in fiscal 2015.