REX American Resources Reports First Quarter Diluted EPS of $0.43

REX American Resources Corporation (NYSE: REX) today reported financial results for its fiscal 2016 first quarter (“Q1 ‘16”) ended April 30, 2016. REX management will host a conference call and webcast today at 11:00 a.m. ET. to review the results.

REX American Resources’ Q1 ‘16 results principally reflect its interests in six ethanol production facilities. The operations of One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) are consolidated, while those of its four remaining plants are reported as equity in income of unconsolidated ethanol affiliates. During the fiscal 2015 second quarter the Company sold its interest in Patriot Holdings, LLC (“Patriot”). As such, subsequent to June 1, 2015, equity in income of unconsolidated ethanol affiliates includes contributions from four ethanol production facilities, compared with five in the comparable year-ago period.

REX’s Q1 ‘16 net sales and revenue were $100.2 million, compared with $105.2 million in Q1 ‘15, principally reflecting a 6.4% decline in the average price per gallon of ethanol and to a lesser degree a 13.1% decline in dried distiller grains pricing, which was partially offset by an increase in ethanol volume. Primarily due to reduced distiller grains pricing, the Company’s Q1 ’16 gross profit was $8.4 million, compared with $9.1 million in the prior year period.

Equity in income of unconsolidated ethanol affiliates in Q1 ‘16 was $0.2 million, compared with $1.5 million in Q1 ’15 largely as a result of lower crush spreads and reduced distiller grain pricing as well as the recognition of approximately $0.5 million less from the Company’s interest in Patriot versus the year-ago period. REX reported a gain of approximately $0.2 million in the first quarter of fiscal 2016 from certain adjustments to the purchase price of its sale of Patriot. As a result, income before income taxes and non-controlling interests in Q1 ‘16 totaled $5.0 million, compared with $6.9 million in Q1 ‘15.

Net income attributable to REX shareholders in Q1 ‘16 was $2.8 million, compared with $3.9 million in Q1 ‘15, while Q1 ‘16 diluted net income per share attributable to REX common shareholders was $0.43 per share, compared to $0.50 per share in Q1 ‘15. Per share results in Q1 ‘16 and Q1 ‘15 are based on 6,594,000 and 7,900,000 diluted weighted average shares outstanding, respectively.

REX Chief Executive Officer, Zafar Rizvi, commented, “We are pleased with our ability to generate profitable operating results in our fiscal 2016 first quarter given the challenging market environment during this time period. We believe these results reflect our ability to leverage our strategically positioned ethanol plants and the disciplined manner in which we operate at both the plant and corporate level.”

Balance Sheet and Share Repurchase Program

At April 30, 2016, REX had cash and cash equivalents of $122.5 million, $52.0 million of which was at the parent company and $70.5 million of which was at its consolidated ethanol production facilities. This compares with cash and cash equivalents of $135.8 million at January 31, 2016, $57.2 million of which was at the parent company and $78.6 million of which was at its consolidated ethanol production facilities.

REX repurchased 87,904 common shares in Q1 ‘16 at an average price of $49.52 per share. The Company is currently authorized to repurchase up to an additional 155,334 shares of common stock and has 6,560,527 shares outstanding.

The following table summarizes select data related to the Company’s consolidated alternative energy interests:

Supplemental Data Related to REX’s Alternative Energy Interests:

About REX American Resources Corporation

REX American Resources has interests in six ethanol production facilities, which in aggregate shipped approximately 649 million gallons of ethanol over the twelve month period ended April 30, 2016. REX’s effective ownership of the trailing twelve month gallons shipped (for the twelve months ended April 30, 2016) by the ethanol production facilities in which it has ownership interests was approximately 240 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 international, national or regional economies, weather, the effects of terrorism or acts of war 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.

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