DAYTON, Ohio--(BUSINESS WIRE)--

REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2017 first quarter (“Q1 ‘17”) ended April 30, 2017. REX management will host a conference call and webcast today at 11:00 a.m. ET to review the results.

REX American Resources’ Q1 ‘17 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.

REX’s Q1 ‘17 net sales and revenue grew 12.9% to $113.1 million, compared with $100.0 million in Q1 ‘16, primarily reflecting a 9.1% increase in the average sales price per gallon of ethanol as well as REX’s initiatives to increase plant-level production. These were partially offset by the decline in distillers grains and modified distillers grains prices. Gross profit increased 48.3% to $12.5 million, compared to $8.4 million during the prior year period, primarily reflecting improved crushed spread margins offset by lower distillers grains pricing.

Equity in income of unconsolidated ethanol affiliates in Q1 ‘17 increased to $0.7 million, from $0.2 million in Q1 ’16, primarily as a result of the more favorable ethanol crush spread margins during the quarter. As a result, income from continuing operations before income taxes and non-controlling interests in Q1 ‘17 grew 60.7% to $8.0 million, compared with $5.0 million in Q1 ‘16.

Net income attributable to REX shareholders in Q1 ‘17 was $4.5 million, compared with $2.8 million in Q1 ‘16, while Q1 ‘17 diluted net income per share attributable to REX common shareholders increased 60.5% to $0.69 per share, compared to $0.43 per share in Q1 ‘16. Per share results in Q1 ‘17 and Q1 ‘16 are based on 6,593,000 and 6,594,000 diluted weighted average shares outstanding, respectively.

REX American Resources’ Chief Executive Officer, Zafar Rizvi, commented, “We achieved both top and bottom-line growth in the first quarter, compared to the prior year’s first quarter, highlighting our disciplined approach to ensure operating excellence throughout the organization. Our operating strategies led to significant year over year growth across key financial metrics, including gross profit, net income, diluted earnings per share and operating cash flow generation. We are particularly pleased with the early success of efforts to increase production at our plants, as reflected in the nearly 8% increase in ethanol gallons sold during the period, compared to last year’s first quarter.”

Balance Sheet and Share Repurchase Program

At April 30, 2017, REX had cash and cash equivalents of $191.5 million, $76.5 million of which was at the parent company and $115.0 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $188.6 million at January 31, 2017, $79.5 million of which was at the parent company and $109.1 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 6,558,679 shares outstanding.

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 669 million gallons of ethanol over the twelve month period ended April 30, 2017. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended April 30, 2017) by the ethanol production facilities in which it has ownership interests was approximately 256 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.

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