REX American Resources (US:REX)2025-03-26 20:50Financial Data and Key Metrics Changes - Fiscal 2024 saw ethanol sales volume increase to 289.7 million gallons, up from 285.9 million gallons in fiscal 2023 [20] - Gross profit for fiscal year 2024 was $91.5 million, down from approximately $98.2 million in fiscal year 2023 [24] - Net income attributable to REX shareholders for the year was $58.2 million compared to $60.9 million in fiscal year 2023 [27] - Total cash, cash equivalents, and short-term investments at year-end were $359.1 million, down from $378.7 million at the end of fiscal year 2023 [29] Business Line Data and Key Metrics Changes - Dry distillers grain sales volumes decreased by 3% to 632,000 tons in fiscal 2024 compared to 652,000 tons in fiscal 2023 [21] - Modified distillers grains sales volumes increased to 70,000 tons in fiscal 2024 from approximately 54,000 tons in fiscal 2023 [22] - Corn oil sales volume increased by approximately 1% to 88.1 million pounds in fiscal 2024 compared to 87.5 million pounds in fiscal 2023 [23] Market Data and Key Metrics Changes - Total ethanol exports from the US reached a record high of 1.9 billion gallons in 2024, supporting pricing throughout the year [33] - Canada accounted for approximately 36% of US ethanol exports, while Mexico represented about 21% of US DDG exports in 2024 [33] Company Strategy and Development Direction - The company is focused on efficient and profitable operations while pursuing growth projects, including carbon capture and ethanol facility expansion [8][14] - REX is actively monitoring policy changes that could impact the business, particularly regarding tariffs on ethanol and co-product exports [32][33] - The company has a commitment to shareholder value through a selective share repurchase program [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a profitable Q1 2025, which would mark the nineteenth consecutive profitable quarter [30] - The company is closely watching regulatory developments and market conditions to make informed decisions [32][33] - Management highlighted the importance of maintaining communication with the EPA regarding permitting processes [49][50] Other Important Information - REX repurchased approximately 373,000 shares in Q4 2024 and an additional 282,000 shares in Q1 2025 [28] - The total budget for the carbon capture and ethanol production capacity expansion projects has increased to $222-$230 million due to ongoing reviews and inflation [18] Q&A Session Summary Question: Can you provide detail on the higher capital budget for the expansion project? - Management explained that the increase in budget is due to the need for energy-efficient equipment capable of handling future production increases, which necessitated additional investment [39] Question: Can you discuss the regulatory side and permitting updates? - Management noted that communication with the EPA has resumed after initial delays, and they are optimistic about moving forward with the permitting process [49][50] Question: Have there been any changes in dialogue with the EPA since the new administration took over? - Management confirmed that communication with the EPA has restarted and they are addressing previous questions from the agency [49][50]