NYSE$REX

REX American Resources Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

REX American Resources reported Q3 2022 results, reflecting challenges from rising corn and natural gas prices, yet maintaining positive income.

REX American Resources reported Q3 2022 net sales and revenue of $220.3 million, compared to $203.1 million in Q3 2021. Net income attributable to REX shareholders from continuing operations was $3.2 million, or $0.18 per share, compared to $13.3 million, or $0.74 per share in Q3 2021. The company faced challenges from rising corn and natural gas prices, but maintained a strong balance sheet with approximately $290 million in cash and short-term investments and no debt.

  • Q3 2022 net sales and revenue increased to $220.3 million from $203.1 million in Q3 2021, driven by higher pricing for ethanol and related by-products.
  • Gross profit decreased to $11.3 million from $25.2 million in Q3 2021 due to significant increases in corn and natural gas prices.
  • Net income attributable to REX shareholders was $3.2 million, or $0.18 per share, compared to $13.3 million, or $0.74 per share in the prior year.
  • The company had approximately $290 million in cash and short-term investments and no debt at quarter end.

Headline financials

Total Revenue

$220M

Previous: $203M+8.5%
EPS (adj)

$0.18

Previous: $0.85-78.8%
Capital Expenditures

-$7.18M

Previous: -$4.25M-69.2%
Free Cash Flow

-$4M

Previous: $11M-136.2%
Net Income

$3.18M

Previous: $15.3M-79.2%
Operating Income

$3.54M

Previous: $14.7M-75.9%
Gross Profit

$11.3M

Previous: $25.2M-54.9%
Cash & Equivalents

$290M

Previous: $219M+32.3%

Revenue & EPS history

REX American · Revenue · Quarterly

$220M

Q3 2022+8.5%vs Q3 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

REX American Resources is focused on carbon capture and sequestration project and is making meaningful progress on this front. The language and opportunities in the Inflation Reduction Act are encouraging, including the new clean fuel production credit under section 45Z and an increase in the 45Q credit to $85 per ton.

Tailwinds

  • Filed a Class VI injection well permit application for three wells.
  • Signed a contract for a carbon compression facility for the One Earth Energy ethanol plant.
  • New clean fuel production credit under section 45Z.
  • Increase in the 45Q credit to $85 per ton.
  • Strong capital structure positions REX to continue to benefit its shareholders.

Headwinds

  • Faced significant price increases in corn and natural gas.
  • Ongoing logistical constraints.
  • Difficult operating environment.
  • Gross profit decreased to $11.3 million from $25.2 million in Q3 2021.
  • Net income attributable to REX shareholders was $3.2 million compared to $13.3 million in Q3 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.7%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+0.1%

Avg return

30 days after

42%

25 / 59 earnings

Positive

+34.1%

Q4 2023

Best reaction

-22.9%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2026+5.0%-2.7%-3.3%
Q2 2026+0.0%+2.6%+2.1%
Q1 2025-6.7%-2.2%+15.6%
Q4 2026+5.5%+2.6%+10.7%
Q3 2024-4.1%-6.1%-1.7%
Q2 2024-6.1%-4.5%-5.9%
Q1 2024-0.9%-0.3%-21.6%
Q4 2023+34.1%+36.4%+29.9%
Q3 2023+27.8%+16.5%+28.2%
Q2 2023-4.5%-4.6%-1.5%
Q1 2023+11.6%+11.6%+5.1%
Q4 2022-6.5%-3.5%-5.7%
Q3 2022+16.6%+1.3%+8.0%
Q2 2022-9.9%-13.3%-16.8%
Q1 2022-0.7%-1.7%-4.4%
Q4 2021-2.5%-6.9%-18.4%
Q3 2021+18.6%+10.5%+5.5%
Q2 2021-2.3%-4.7%-3.4%
Q1 2021+23.3%+22.3%+17.5%
Q4 2020-0.6%-4.5%-12.1%
Q3 2020+16.4%+9.8%-11.6%
Q2 2020-22.9%-20.3%-21.3%
Q1 2020-12.2%-7.9%-3.1%
Q3 2019-6.6%-11.2%-11.3%
Q2 2019-1.2%+4.5%+9.2%
Q1 2019-11.7%-5.9%-4.5%
Q4 2018-0.8%+1.4%+3.8%
Q3 2018+1.0%+4.8%-0.5%
Q2 2018-1.5%+1.8%-5.6%
Q1 2018-5.3%-4.2%+6.1%
Q4 2017-12.1%-16.8%-13.0%
Q3 2017+5.8%+2.6%-4.3%
Q2 2017-7.8%-8.2%-0.2%
Q1 2017-3.7%-3.3%-1.5%
Q4 2016+7.8%+13.9%+10.0%
Q3 2016+9.3%+11.3%+11.2%
Q2 2016+11.0%+10.1%+11.9%
Q1 2016-1.4%+0.3%+2.1%
Q4 2015-6.3%
Q3 2015-16.2%
Q2 2015+15.7%
Q1 2015-3.4%
Q4 2014+8.2%
Q3 2014+2.7%
Q2 2014+19.2%
Q1 2014+14.9%
Q4 2013-6.0%
Q3 2013+26.6%
Q2 2013-8.5%
Q1 2013+16.7%
Q4 2012-11.4%
Q3 2012-3.0%
Q2 2012-6.5%
Q1 2012+3.5%
Q4 2010-7.6%
Q3 2011+6.6%
Q2 2011+0.8%
Q4 2011+0.8%
Q1 2011-7.0%

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