REX American Resources Second Quarter Diluted EPS Rise 277% to a Record $2.68

  REX American Resources Second Quarter Diluted EPS Rise 277% to a Record   $2.68   Second Quarter Gross Profit More than Triples to $38.8 Million Leading to a  276% Increase In Net Income Attributable to REX Common Shareholders of $21.9                                    Million         Diluted EPS for the Six Months Ended July 31, 2014 Rise to $5.35  Business Wire  DAYTON, Ohio -- August 27, 2014  REX American Resources Corporation (NYSE:REX) today reported record financial results for its fiscal 2014 second quarter (“Q2 ‘14”) ended July 31, 2014. REX management will host a conference call and webcast today at 11:00 a.m. ET.   Conference Call:       212/231-2933                              Webcast / Replay URL:   www.rexamerican.com/Corp/Page4.aspx                           The webcast will be available for replay for 30 days                             REX American Resources’ Q2 ‘14 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, while those of its five remaining plants are reported as equity in income of unconsolidated ethanol affiliates.  REX’s Q2 ‘14 net sales and revenue were $150.2 million, compared with $175.4 million in Q2 ’13, principally due to reduced ethanol and distillers grains pricing. Reflecting the continued strength of ethanol crush spread margins in Q2 ’14, the Company’s gross profit rose to $38.8 million, from $10.9 million in the prior year period. As a result of the ongoing healthy ethanol industry metrics, Q2 ‘14 equity in income of unconsolidated ethanol affiliates increased to $7.2 million, compared with $4.6 million in Q2 ’13, leading to net income from continuing operations before income taxes and non-controlling interests in Q2 ‘14 of $40.7 million, compared with $10.3 million in Q2 ’13.  Net income attributable to REX shareholders in Q2 ’14 rose to $21.9 million, compared with $5.8 million in Q2 ‘13, while Q2 ’14 diluted net income per share attributable to REX common shareholders rose to a record $2.68 per share, compared to $0.71 per share in Q2 ’13. Per share results in Q2 ‘14 and Q2 ‘13 are based on 8,182,000 and 8,204,000 diluted weighted average shares outstanding, respectively.  REX CEO, Stuart Rose, commented, “Favorable market dynamics combined with the efficiency of our plants, led to record second quarter net income and diluted EPS. The second quarter results further strengthened our already solid financial foundation, as cash and cash equivalents rose 45% to approximately $152.2 million, compared to the fiscal 2013 year-end levels six months prior.  “During the second quarter, we also made significant strides in further improving our balance sheet and liquidity as we continued to allocate cash from operations to reduce consolidated plant-level debt by 18% to approximately $62 million versus January 31, 2014, lowering our interest expense by over 42%, compared to Q2 ‘13, and bringing our debt-to-capital ratio to a healthy 16%, versus 21% at January 31, 2014.”  Balance Sheet  At July 31, 2014, REX had cash and cash equivalents of $152.2 million, $50.4 million of which was at the parent company and $101.8 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $105.1 million at January 31, 2014, $63.3 million of which was at the parent company and $41.8 million of which was at its consolidated ethanol production facilities.  At July 31, 2014, REX had lease agreements, as landlord for five former retail store locations. In addition, REX has five owned former retail stores that were vacant at July 31, 2014, which it is marketing to either lease or sell. The current net book value for the Company’s remaining real estate holdings is approximately $4.0 million. The real estate segment revenue reflects rental income derived from these sites.                                                                                Segment Income Statement Data:                                Three Months            Six Months                                                                                    Ended                   Ended ($ in thousands)               July 31,                July 31,                                2014       2013       2014       2013 Net sales and revenue:                                           Alternative energy (1)         $ 150,133   $ 175,290   $ 305,960   $ 353,614 Real estate (2)                 98        99        207       199 Total net sales and            $ 150,231  $ 175,389  $ 306,167  $ 353,813 revenues                                                                               Gross profit (loss): Alternative energy (1)         $ 38,820    $ 10,890    $ 75,434    $ 19,916 Real estate (2)                 (2)       (12)      9         (40) Total gross profit             $ 38,818   $ 10,878   $ 75,443   $ 19,876                                                                               Segment profit (loss): Alternative energy segment     $ 41,509    $ 11,114    $ 80,385    $ 17,740 (1) Real estate segment (2)          (28)        (74)        (44)        (163) Corporate expense, net          (761)     (722)     (1,514)   (1,413) Income from continuing operations before income       $ 40,720   $ 10,318   $ 78,827   $ 16,164 taxes and non-controlling interests (2)     (1)  Includes results attributable to non-controlling interests of             approximately 26% for One Earth and approximately 1% for NuGen.             Certain amounts differ from those previously reported as a result       (2)   of certain sold real estate assets being reclassified as             discontinued operations.                                                                                             The following table summarizes select data related to the Company’s consolidated alternative energy interests:                                                                                        Three Months          Six Months                                     Ended                 Ended                                    July 31,              July 31,                                    2014      2013       2014      2013      Average selling price per     $ 2.18     $ 2.38     $ 2.16     $ 2.36      gallon of ethanol      Average selling price per      ton of dried distillers       $ 192.77   $ 243.49   $ 201.57   $ 253.52      grains      Average selling price per      ton of modified               $ 68.49    $ 108.66   $ 81.88    $ 123.51      distillers grains      Average cost per bushel       $ 4.47     $ 7.15     $ 4.41     $ 7.29      of grain      Average cost of natural       $ 5.14     $ 4.42     $ 7.27     $ 4.35      gas (per mmbtu)                                                                                                                                                            Segment Balance Sheet Data:                                                                                 July 31, 2014         January 31,                                                                  2014         Assets:         Alternative energy         $413,883                  $356,589         Real estate                4,141                     4,722         Corporate                  51,496                    66,557         Total assets               $469,520                  $427,868                                                                                                                                                              Supplemental Data Related to REX’s Alternative Energy Interests:  REX American Resources Corporation Ethanol Ownership Interests/Effective Annual Gallons Shipped as of July 31, 2014  (gallons in millions)                                   Trailing                                                                   Current                                   Twelve                     REX’s Current                                                REX           Effective Entity                          Months                                                                Ownership     Ownership of                                   Gallons                    Trailing Twelve                                                Interest                                   Shipped                    Month Gallons                                                              Shipped One Earth Energy, LLC                                 110.1      74%         81.5 (Gibson City, IL) NuGen Energy, LLC                                 114.9      99%         113.8 (Marion, SD) Patriot Holdings, LLC                                 119.7      27%         32.3 (Annawan, IL) Big River Resources West Burlington, LLC (West           108.2      10%         10.8 Burlington, IA) Big River Resources Galva, LLC                             119.5      10%         12.0  (Galva, IL) Big River United Energy, LLC                                 123.6      5%          6.2 (Dyersville, IA) Big River Resources Boyceville, LLC                 56.2       10%         5.6  (Boyceville, WI) Total                           752.2      n/a         262.2                                                         About REX American Resources Corporation  REX American Resources has interests in seven ethanol production facilities, which in aggregate shipped approximately 752 million gallons of ethanol over the twelve month period ended July 31, 2014. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended July 31, 2014) by the ethanol production facilities in which it has ownership interests was approximately 262 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 national or regional economies, weather, transportation delays, the effects of terrorism or acts of war, changes in real estate market conditions 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.                       - statements of operations follow -                                                                                REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES  Consolidated Statements of Operations  (in thousands, except per share amounts)  Unaudited                                                                                       Three Months            Six Months                                   Ended                   Ended                                  July 31,                July 31,                                  2014      2013         2014      2013 Net sales and revenue            $150,231   $175,389     $306,167   $353,813 Cost of sales                    111,413    164,511      230,724    333,937 Gross profit                     38,818     10,878       75,443     19,876 Selling, general and             (4,839)    (4,194)      (11,010)   (7,935) administrative expenses Equity in income of unconsolidated ethanol           7,245      4,628        15,542     6,227 affiliates Interest and other income        88         45           140        86 Interest expense                 (591)      (1,029)      (1,283)    (2,084) Losses on derivative             (1)        (10)         (5)        (6) financial instruments, net Income from continuing operations before income         40,720     10,318       78,827     16,164 taxes and non-controlling interests Provision for income taxes       (14,009)   (3,694)      (27,925)   (5,763) Income from continuing operations including             26,711     6,624        50,902     10,401 non-controlling interests Income from discontinued         2          120          11         285 operations, net of tax Gain on disposal of discontinued operations, net     5          1            5          132 of tax Net income including             26,718     6,745        50,918     10,818 non-controlling interests Net income attributable to       (4,811)    (920)        (7,269)    (1,486) non-controlling interests Net income attributable to       $21,907    $ 5,825      $43,649    $ 9,332 REX common shareholders                                                                               Weighted average shares          8,182      8,164        8,150      8,161 outstanding – basic                                                                               Basic income per share from      $2.68      $0.70        $5.36      $1.09 continuing operations Basic income per share from      -          0.01         -          0.03 discontinued operations Basic income per share on disposal of discontinued         -          -            -          0.02 operations Basic net income per share attributable to REX common       $2.68      $0.71        $5.36      $ 1.14 shareholders                                                                               Weighted average shares          8,182      8,204        8,166      8,204 outstanding – diluted                                                                               Diluted income per share         $2.68      $0.70        $5.35      $1.09 from continuing operations Diluted income per share         -          0.01         -          0.03 from discontinued operations Diluted income per share on disposal of discontinued         -          -            -          0.02 operations Diluted net income per share attributable to REX common       $2.68      $0.71        $5.35      $1.14 shareholders Amounts attributable to REX common shareholders: Income from continuing           $ 21,900   $ 5,704      $43,633    $8,915 operations, net of tax Income from discontinued         7          121          16         417 operations, net of tax Net income                       $ 21,907   $ 5,825      $43,649    $9,332           Certain amounts differ from those previously reported as a result of       certain real estate assets being reclassified as discontinued       operations.                                                                                                                                                              REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES  Consolidated Balance Sheets  (in thousands) Unaudited                                                                                                              July 31,        January 31, ASSETS:                                                  2014            2014 CURRENT ASSETS: Cash and cash equivalents                        $ 152,236       $ 105,149 Restricted cash                                    -               500 Accounts receivable                                13,992          16,486 Inventory                                          17,287          19,370 Refundable income taxes                            -               268 Prepaid expenses and other                         5,413           4,891 Deferred taxes-net                                -              2,146 Total current assets                               188,928         148,810 Property and equipment-net                         197,235         202,258 Other assets                                       5,288           5,388 Equity method investments                          78,069          71,189 Restricted investments and deposits               -              223 TOTAL ASSETS                                     $ 469,520       $ 427,868 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Current portion of long term debt                $ 24,000        $ 12,226 Accounts payable – trade                           6,667           6,626 Deferred taxes                                     3,400           - Derivative financial instruments                   371             1,141 Accrued expenses and other current                12,472         12,147 liabilities Total current liabilities                         46,910         32,140 LONG TERM LIABILITIES: Long term debt                                     38,000          63,500 Deferred taxes                                     19,597          19,613 Other long term liabilities                       1,890          1,862 Total long term liabilities                       59,487         84,975 COMMITMENTS AND CONTINGENCIES EQUITY: REX shareholders’ equity: Common stock, 45,000 shares authorized,            299             299 29,853 shares issued at par Paid in capital                                    144,791         144,051 Retained earnings                                  400,750         357,101 Treasury stock, 21,678 and 21,753 shares,         (221,419)      (222,170) respectively Total REX shareholders’ equity                     324,421         279,281 Non-controlling interests                         38,702         31,472 Total equity                                      363,123        310,753 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY       $ 469,520       $ 427,868                                                                                                     - statements of cash flows follow -                                                                REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES  Consolidated Statements of Cash Flows  (in thousands) Unaudited                                                                                                                                  Six Months Ended July 31,                                                    2014            2013 CASH FLOWS FROM OPERATING ACTIVITIES: Net income                                         $  50,918       $ 10,818 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, impairment charges and                  8,350          8,811 amortization Income from equity method investments                 (15,542)       (6,227) Gain on disposal of real estate and property          (3)            (6) and equipment Dividends received from equity method                 8,592          200 investments Deferred income                                       -              (484) Derivative financial instruments                      (770)          (856) Deferred income tax                                   5,323          5,410 Excess tax benefit from stock option                  (441)          - exercises Changes in assets and liabilities: Accounts receivable                                   2,494          (5,842) Inventories                                           2,083          (4,453) Other assets                                          463            164 Accounts payable-trade                                (198)          1,310 Accrued expenses and other liabilities               353           (363) Net cash provided by operating activities            61,622        8,482 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures                                  (3,402)        (252) Restricted cash                                       500            (500) Restricted investments and deposits                   273            180 Proceeds from sale of real estate and                487           463 property and equipment Net cash used in investing activities                (2,142)      (109) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of long term debt                                                       (13,726)       (8,629)  Stock options exercised                               931            794 Payments to noncontrolling interests holders          (39)           - Excess tax benefit from stock option                  441            - exercises Treasury stock acquired                              -             (856) Net cash used in financing activities                (12,393)      (8,691) NET INCREASE (DECREASE) IN CASH AND CASH              47,087         (318) EQUIVALENTS CASH AND CASH EQUIVALENTS-Beginning of year          105,149       69,073 CASH AND CASH EQUIVALENTS-End of year              $  152,236      $ 68,755 Non cash investing activities – Accrued            $  239          $ - capital expenditures                                                                                Contact:  REX American Resources Corporation Douglas Bruggeman, 937-276-3931 Chief Financial Officer or JCIR Joseph Jaffoni / Norberto Aja, 212-835-8500 rex@jcir.com  
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