Rex third quarter sales, revenue up from third quarter 2015

By Ann Bailey | November 29, 2016

Rex American Resources released third quarter financial results Nov. 29, reporting net sales and revenue of $116.3 million, up from $110.6 million in the third quarter of 2015. The increases reflect higher volume increases in ethanol and DDGS, which was partially offset by a decline in the average selling price of DDGS, the company said.

Gross profits climbed to $20.2 million in third quarter 2016, up from $14.3 million during the same period in 2015, mostly the result of decreases in year-over-year grain costs and increases in ethanol production, Rex American Resources said. Net income attributable to Rex shareholders during the third quarter was $8.9 million, compared with $7.5 million during the third quarter of 2015. Meanwhile, diluted net income attributable to Rex common shareholders in the third quarter of 2016 was $1.36 per share, up from $1.08 per share during that period last year.

Rex is pleased with its third quarter results which includes a 26 percent increase in earnings per share, on the back of improved industry crush spreads, and the positive impact of the capital investment projects to further expand production at the company’s consolidated plants, said Zafar Rizvi, Rex CE0.  “Given our highly capable employees, the capital improvements at our plants and our operating disciplines, we were able to increase the number of gallons of ethanol produced by approximately 10 percent versus the prior year period,” Rizvi said.

Rex American Resources has a 75 percent interest in Gibson City, Illinois-based One Earth Energy LLC;  99.5 percent interest in Marion, South Dakota-based NuGen Energy LLC; 9.7 percent interest in West Burlington, Iowa-based Big River Resources West Burlington LLC; 9.7 percent interest in Galva, Illinois-based Big River Resources Galva LLC; 5.4 percent interest in Dyersville, Iowa-based Big River United Energy LLC; and 9.7 percent interest in Boyceville, Wisconsin-based Big River Resources Boyceville LLC.