REX American Resources (REX) - 2025 Q2 - Quarterly Results

Financial Performance - REX reported net income attributable to shareholders of $12.4 million for Fiscal Q2 '24, a 37% increase from $9.1 million in Fiscal Q2 '23[1][4] - Diluted net income per share for Fiscal Q2 '24 was $0.70, up from $0.52 in the same quarter last year, based on 17,671,000 diluted shares outstanding[1][4] - Gross profit for Fiscal Q2 '24 was $19.8 million, reflecting a more than 7% increase compared to $18.4 million in Fiscal Q2 '23[1][3] - Net income for the period ending July 31, 2024, was $27,280,000, up from $18,984,000 in the same period last year, representing a year-over-year increase of approximately 43.5%[17] - The company reported a net cash increase of $37,643,000 for the period, compared to $30,819,000 in the prior year[17] Revenue and Sales - Net sales and revenue decreased to $148.2 million in Fiscal Q2 '24 from $212.0 million in Fiscal Q2 '23, primarily due to reduced pricing for ethanol and co-products[1][3] - REX's consolidated ethanol sales volumes were 65.1 million gallons in Fiscal Q2 '24, a decrease of approximately 6% compared to the same period in Fiscal 2023[1][1] Assets and Liabilities - Total assets increased to $680,009,000 as of July 31, 2024, compared to $664,802,000 on January 31, 2024, reflecting a growth of approximately 2.0%[16] - Total current liabilities decreased to $51,909,000 from $66,259,000, a reduction of approximately 21.6%[16] - Total equity increased to $616,186,000 from $587,597,000, reflecting a growth of approximately 4.9%[16] - The company’s retained earnings rose to $724,330,000 from $701,761,000, an increase of about 3.2%[16] Cash Flow and Investments - Cash and cash equivalents rose to $261,040,000 from $223,397,000, marking an increase of about 16.9%[17] - Net cash provided by operating activities was $5,708,000, slightly down from $6,628,000 year-over-year[17] - Capital expenditures for the period were $40,219,000, significantly higher than $8,173,000 in the previous year, indicating increased investment in assets[17] - Capital expenditures for the One Earth Energy carbon capture project totaled $49.1 million, while expenditures for ethanol production expansion reached $41.7 million, totaling $90.8 million[1][8] Future Projects and Plans - The expansion of the One Earth Energy ethanol production facility is expected to increase capacity from 150 million to 175 million gallons per year by the end of Q1 2025[1][7] - The EPA is projected to issue a draft permit for the carbon capture project by the end of 2024, with a final decision expected in Q2 2025[1][5] Management Focus - Management emphasized a focus on managing expenses and capitalizing on opportunities in the corn market to deliver positive returns for shareholders[1][10] Non-Cash Activities - Non-cash financing activities included stock awards accrued totaling $798,000, up from $570,000 in the previous year[17]