REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2012 second quarter (“Q2 ‘12”) ended July 31, 2012. REX management will host a conference call and webcast today at 11:00 a.m. ET:
REX’s Q2 ‘12 results principally reflect its alternative energy segment interests in seven ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated (NuGen was not in the comparable year-ago period), while those of its five other plants are reported as equity in income of unconsolidated affiliates. REX’s Q2 ‘12 net sales and revenue rose 107.6% to $153.2 million, from $73.8 million in Q2 ’11, primarily reflecting the consolidation of NuGen.
REX recognizes certain results from its ethanol interests on a quarterly calendar basis, and as a result, REX’s Q2 results include results from ethanol operations for the period April 1, 2012 through June 30, 2012, with the exception of NuGen, which is for the period May 1, 2012 through July 31, 2012.
Reflecting the recent industry-wide compression of ethanol margins and lower income from discontinued operations, net income attributable to REX shareholders in Q2 ‘12 was $0.8 million, or $0.10 per diluted share, compared with $2.3 million, or $0.25 per diluted share, in Q2 ‘11. Q2 ‘12 income from continuing operations net of tax attributable to REX shareholders was $0.6 million, or $0.07 per diluted share, compared with $2.0 million, or $0.21 per diluted share, in Q2 ‘11. During Q2 ’11 REX received and recognized $2.9 million in pre-tax income (or approximately $0.18 per diluted share) from a prior investment in a synthetic fuel facility in Gillette, Wyoming. REX recorded income from discontinued operations, including gain on disposal of discontinued operations, of $0.2 million, or $0.03 per diluted share for Q2 ’12, compared with $0.4 million, or $0.04 per diluted share in Q2 ’11. Per share results in Q2 ‘12 and Q2 ‘11 are based on 8,385,000 and 9,550,000 diluted weighted average shares outstanding, respectively. The 12.2% reduction in the shares outstanding principally reflects the Company’s repurchase of 1,305,589 shares in open market transactions in FY ’11 and shares repurchased in the first half of FY ‘12, partially offset by shares exercised pursuant to options.