DAYTON, Ohio--(BUSINESS WIRE)-- REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2016 second quarter (“Q2 ‘16”) ended July 31, 2016. REX management will host a conference call and webcast today at 11:00 a.m. ET. to review the results.

		Conference Call:				(303) 223-2697
		Webcast / Replay URL:				www.rexamerican.com/Corp/Page4.aspx
						The webcast will be available for replay for 30 days

REX American Resources’ Q2 ‘16 results principally reflect its interests in six ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated, while those of its four remaining plants are reported as equity in income of unconsolidated ethanol affiliates. During the fiscal 2015 second quarter the Company sold its interest in Patriot Holdings, LLC (“Patriot”). As such, subsequent to June 1, 2015, equity in income of unconsolidated ethanol affiliates includes contributions from four ethanol production facilities, compared with five in the comparable year-ago period.

REX’s Q2 ‘16 net sales and revenue were $115.7 million, compared with $113.5 million in Q2 ‘15, principally reflecting volume increases in ethanol and dried distillers grains (“DDG”), which was partially offset by a decrease in their average selling prices. Primarily due to the decrease in DDG pricing and year-over-year increase in grain costs, the Company’s Q2 ’16 gross profit was $17.3 million, compared with $18.3 million in the prior year period.

Equity in income of unconsolidated ethanol affiliates in Q2 ‘16 was $1.2 million, compared with $5.1 million in Q2 ’15, partially as a result of a $2.5 million pre-tax contribution from the Company’s interest in Patriot that did not recur this quarter. In addition, during the year ago period the Company recorded a $10.4 million pre-tax gain related to the June 2015 sale of its 26.6% interest in Patriot. Reflecting the factors above, income before income taxes and non-controlling interests in Q2 ‘16 totaled $13.5 million, compared with $27.4 million in Q2 ‘15. Excluding Patriot’s Q2 ’15 contribution to income of unconsolidated ethanol affiliates, REX’s gain on the sale of its interest in Patriot and related items, income before income taxes and non-controlling interests in Q2 ‘15 totaled $15.4 million versus the aforementioned $13.5 million in the current year.

Net income attributable to REX shareholders in Q2 ‘16 was $8.2 million, compared with $16.4 million in Q2 ‘15, while Q2 ‘16 diluted net income per share attributable to REX common shareholders was $1.24 per share, compared to $2.16 per share in Q2 ‘15.

Per share results in Q2 ‘16 and Q2 ‘15 are based on 6,586,000 and 7,580,000 diluted weighted average shares outstanding, respectively.

REX Chief Executive Officer, Zafar Rizvi, commented, “Industry fundamentals improved during the second quarter and our employees did a great job efficiently operating and increasing the production at our ethanol plants, leading to a 5% increase in the number of gallons of ethanol sold during the quarter. In addition, during the quarter we neared the completion of our capital investment projects to further expand production at our consolidated plants which will leave us better positioned for future ethanol demand.”

Balance Sheet

At July 31, 2016, REX had cash and cash equivalents of $134.7 million, $63.5 million of which was at the parent company and $71.2 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $135.8 million at January 31, 2016, $57.2 million of which was at the parent company and $78.6 million of which was at its consolidated ethanol production facilities.

The Company is currently authorized to repurchase up to an additional 155,334 shares of common stock and has 6,582,029 shares outstanding.

The following table summarizes select data related to the Company’s consolidated alternative energy interests:

			Three Months Ended						Six Months Ended
			July 31,						July 31,
			2016			2015			2016			2015
Average selling price per gallon of ethanol			$	1.49		$	1.50		$	1.41		$	1.46
Average selling price per ton of dried distillers grains			$	134.81		$	169.31		$	130.12		$	156.16
Average selling price per pound of non-food grade corn oil			$	0.29		$	0.28		$	0.27		$	0.28
Average selling price per ton of modified distillers grains			$	56.60		$	73.95		$	58.54		$	78.48
Average cost per bushel of grain			$	3.73		$	3.64		$	3.63		$	3.65
Average cost of natural gas (per mmbtu)			$	2.71		$	3.42		$	2.96		$	4.13

Supplemental Data Related to REX’s Alternative Energy Interests:

REX American Resources Corporation
Ethanol Ownership Interests/Effective Annual Gallons Shipped as of July 31, 2016
(gallons in millions)
		Trailing		Current		REX’s Current
		Twelve Months		REX		Effective Ownership
		Gallons		Ownership		of Trailing Twelve
Entity		Shipped		Interest		Month Gallons Shipped
One Earth Energy, LLC (Gibson City, IL)		117.0		75.0%		87.8
NuGen Energy, LLC (Marion, SD)		121.1		99.5%		120.5
Big River Resources West Burlington, LLC (West Burlington, IA)		107.7		9.7%		10.4
Big River Resources Galva, LLC (Galva, IL)		125.0		9.7%		12.1
Big River United Energy, LLC (Dyersville, IA)		126.1		5.4%		6.8
Big River Resources Boyceville, LLC (Boyceville, WI)		57.9		9.7%		5.6
Total		654.8		n/a		243.2

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 655 million gallons of ethanol over the twelve month period ended July 31, 2016. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended July 31, 2016) by the ethanol production facilities in which it has ownership interests was approximately 243 million gallons. Further information about REX is available at www.rexamerican.com.

This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the impact of legislative changes, the price volatility and availability of corn, dried and modified distillers grains, ethanol, corn oil, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the international, national or regional economies, weather, the effects of terrorism or acts of war and the impact of Internal Revenue Service audits. The Company does not intend to update publicly any forward-looking statements except as required by law.

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Operations (in thousands, except per share amounts) Unaudited
			Three Months Ended										Six Months Ended
			July 31,										July 31,
			2016					2015					2016					2015
Net sales and revenue			$	115,707				$	113,480				$	215,929				$	218,677
Cost of sales				98,423					95,204					190,223					191,274
Gross profit				17,284					18,276					25,706					27,403
Selling, general and administrative expenses				(5,206	)				(6,456	)				(9,233	)				(10,909	)
Equity in income of unconsolidated ethanol affiliates				1,186					5,063					1,419					6,543
Gain on sale of investment				-					10,385					192					10,385
Gain on disposal of property and equipment, net				185					12					185					495
Interest and other income				97					107					257					325
Income before income taxes				13,546					27,387					18,526					34,242
Provision for income taxes				(4,517	)				(8,676	)				(6,031	)				(11,092	)
Net income				9,029					18,711					12,495					23,150
Net income attributable to non-controlling interests				(853	)				(2,344	)				(1,481	)				(2,856	)
Net income attributable to REX common shareholders			$	8,176				$	16,367				$	11,014				$	20,294
Weighted average shares outstanding – basic and diluted				6,586					7,580					6,590					7,737
Basic and diluted net income per share attributable to REX common shareholders			$	1.24				$	2.16				$	1.67				$	2.62

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Condensed Balance Sheets (in thousands) Unaudited
ASSETS:			July 31,				January 31,
			2016				2016
CURRENT ASSETS:
Cash and cash equivalents			$	134,651			$	135,765
Restricted cash				110				54
Accounts receivable				15,833				13,666
Inventory				23,633				17,178
Refundable income taxes				1,562				5,254
Prepaid expenses and other				6,956				6,407
Deferred taxes-net			1,036				1,036
Total current assets				183,781				179,360
Property and equipment-net				189,006				189,976
Other assets				6,395				6,642
Equity method investments				38,622				38,707
TOTAL ASSETS			$	417,804			$	414,685
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable – trade			$	7,056			$	10,212
Accrued expenses and other current liabilities			8,346				9,423
Total current liabilities			15,402				19,635
LONG TERM LIABILITIES:
Deferred taxes				38,304				38,304
Other long term liabilities				1,158				987
Total long term liabilities				39,462			39,291
COMMITMENTS AND CONTINGENCIES
EQUITY:
REX shareholders’ equity:
Common stock, 45,000 shares authorized, 29,853 shares issued at par				299				299
Paid in capital				145,721				144,844
Retained earnings				486,888				475,874
Treasury stock, 23,270 and 23,204 shares, respectively				(313,849	)			(309,754	)
Total REX shareholders’ equity				319,059				311,263
Non-controlling interests				43,881				44,496
Total equity			362,940				355,759
TOTAL LIABILITIES AND EQUITY			$	417,804			$	414,685

REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flows (in thousands) Unaudited
			Six Months Ended
			July 31,
			2016				2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	12,495			$	23,150
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, impairment charges and amortization				9,748				9,430
Income from equity method investments				(1,419	)			(6,543	)
Gain on disposal of real estate and property and equipment				(185	)			(495	)
Dividends received from equity method investments				1,504				5,638
Gain on sale of investment				(192	)			(10,385	)
Deferred income tax				-				(8,644	)
Stock based compensation expense				40				10
Changes in assets and liabilities:
Accounts receivable				(4,250	)			(2,754	)
Inventories				(6,455	)			(5,188	)
Other assets				2,989				192
Accounts payable-trade				(3,087	)			261
Other liabilities				169				(2,110	)
Net cash provided by operating activities				11,357				2,562
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures				(9,334	)			(5,865	)
Restricted cash				(56	)			(203	)
Restricted investments and deposits				409				250
Proceeds from sale of investment				2,275				45,476
Proceeds from sale of property and equipment				1,028				1,935
Other				12				12
Net cash (used in) provided by investing activities				(5,666	)			41,605
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend payments to and purchases of stock from non-controlling interests holders Loan				(2,096	)			(507	)
Treasury stock acquired				(4,709	)			(43,250	)
Net cash used in financing activities				(6,805	)			(43,757	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS				(1,114	)			410
CASH AND CASH EQUIVALENTS-Beginning of period				135,765				137,697
CASH AND CASH EQUIVALENTS-End of period			$	134,651			$	138,107
Non cash investing activities – Accrued capital expenditures			$	1,350			$	370
Non cash financing activities – Accrued treasury stock repurchases			$	-			$	2.938
Non cash financing activities – Equity awards issued			$	1,095			$	-

View source version on businesswire.com: http://www.businesswire.com/news/home/20160825005138/en/

REX American Resources Corporation

Douglas Bruggeman, (937) 276-3931

Chief Financial Officer

or

JCIR

Joseph Jaffoni, Norberto Aja

(212) 835-8500

[email protected]

Source: REX American Resources Corporation

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