REX American Resources Reports Decline in Revenue and Net Income for Q3 and Nine Months of Fiscal Year 2024

REX American Resources Corporation reported its financial results for the third quarter and first nine months of fiscal year 2024, revealing a decline in both revenue and net income compared to the same periods in the previous year. For the three months ended October 31, 2024, the company generated net sales of $174.9 million, a decrease of 21% from $221.1 million in the same quarter of 2023. The nine-month revenue also fell by approximately 25%, totaling $484.3 million compared to $645.8 million in the prior year. Despite the drop in revenue, the company reported a slight increase in gross profit for the quarter, which rose to $39.7 million from $39.3 million year-over-year, and for the nine months, gross profit increased to $73.9 million from $67.8 million.

The decline in revenue was primarily attributed to lower selling prices for ethanol and by-products, which were influenced by fluctuations in corn prices. Ethanol revenue decreased by 19% in the third quarter, driven by a 21% drop in average selling prices, although the volume sold increased by 3%. Similarly, revenue from dried distillers grains and distillers corn oil also saw significant declines, with respective decreases of 28% and 31% in the third quarter. The company’s cost of sales decreased by 26% in the quarter, reflecting lower corn prices, which accounted for approximately 76% of total costs.

In terms of operational developments, REX American Resources continues to invest in its carbon sequestration project and the expansion of its One Earth Energy ethanol plant. The company has committed approximately $165 million to these projects, with $52.9 million already spent. The carbon sequestration initiative aims to capture and store carbon emissions from the ethanol plant, while the expansion project is expected to increase production capacity from 150 million gallons to 175 million gallons annually. The company is also navigating regulatory challenges related to these projects, including new legislation affecting carbon capture and sequestration in Illinois.

As of October 31, 2024, REX American Resources reported total assets of $715.7 million, up from $664.8 million at the beginning of the fiscal year. The company’s cash and cash equivalents increased to $298.2 million, reflecting a strong liquidity position. The company’s working capital was approximately $392.5 million, with a current ratio of 9.9 to 1, indicating a solid ability to meet short-term obligations. Looking ahead, REX American Resources remains focused on managing commodity price volatility and optimizing its operational efficiencies while pursuing growth opportunities in the renewable energy sector.