On May 22, 2024, REX American Resources Corp (REX, Financial) released its 8-K filing detailing the financial results for the fiscal first quarter of 2024. REX American Resources Corp operates as a holding company, engaging in investments in alternative energy and ethanol production entities. Its operating segments include Ethanol and By-Products, with products such as dried distillers grains, modified distillers grains, and non-food grade corn oil.
Fiscal First Quarter 2024 Results
For the fiscal first quarter of 2024, REX reported net sales and revenue of $161.2 million, a significant decrease from $212.7 million in the same period last year. This decline was primarily due to reduced pricing for ethanol and co-products. Despite the revenue drop, the company achieved a gross profit of $14.5 million, up from $10.2 million in the previous year, driven by decreased corn and natural gas prices and increased production levels.
Financial Achievements and Metrics
REX's net income attributable to shareholders for the first quarter was $10.2 million, compared to $5.2 million in the prior year. This resulted in a diluted net income per share of $0.58, surpassing the analyst estimate of $0.40. The company's interest and other income also saw a notable increase to $5.9 million from $2.8 million in the previous year.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales and Revenue | $161.2 million | $212.7 million |
| Gross Profit | $14.5 million | $10.2 million |
| Net Income Attributable to Shareholders | $10.2 million | $5.2 million |
| Diluted EPS | $0.58 | $0.30 |
Balance Sheet and Cash Flow
As of April 30, 2024, REX reported $351.8 million in cash, cash equivalents, and short-term investments, with no bank debt. The company's total assets stood at $671.0 million, up from $664.8 million at the end of January 2024. The company also reported capital expenditures of $78.1 million related to its One Earth Energy carbon capture and sequestration project and the expansion of its ethanol production capacity.
Operational Updates and Future Outlook
REX has made significant progress on its One Earth Energy carbon capture and sequestration project, with the construction of the capture and compression facility expected to be completed by July 2024. The company has secured 100% of the necessary rights of way for the planned carbon transport pipeline and easements for the subsurface area around the first planned injection well.
"REX American has continued to turn in industry-leading earnings from our ethanol operations, as well as progressing on our carbon capture and ethanol production expansion projects," said Zafar Rizvi, REX Chief Executive Officer.
REX's strategic focus on profitable and sustainable operations, coupled with its advancements in carbon capture technology, positions the company well for future growth in a decarbonizing economy.
For more detailed financial information and analysis, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from REX American Resources Corp for further details.
