REX Q1 Net Income Per Share Increases to $0.42 from a Loss of $0.19.
- Plans Name Change to "REX American Resources Corporation" Subject to Shareholder Approval on June 9 -
DAYTON, Ohio -- REX Stores Corporation (NYSE: RSC) today announced improved financial results for its fiscal 2010 first quarter ("Q1 '10") ended April 30, 2010.
Summary Consolidated Operating Results and Balance Sheet Review
REX reported net sales and revenue of $71.3 million in Q1 '10 compared with net sales and revenue of $14.2 million in Q1 '09. For Q1 '10, REX recorded income from continuing operations before income taxes and non-controlling interests of $7.4 million compared with a $2.4 million loss in the comparable prior year period. The Q1 '10 pre-tax income from continuing operations is inclusive of $2.8 million of equity in income of unconsolidated ethanol affiliates compared with a $0.3 million loss from unconsolidated ethanol affiliates in Q1 '09. In the quarter ended April 30, 2010, REX generated income from continuing operations net of taxes and non-controlling interests of $3.5 million, or $0.35 per diluted share, compared with a loss net of taxes and non-controlling interests of $1.1 million, or $0.11 per diluted share, in the comparable prior year period.
For Q1 '10 REX generated net income attributable to common shareholders of $4.2 million, or $0.42 per diluted share, versus a net loss attributable to common shareholders of $1.7 million, or $0.19 per diluted share, in Q1 '09. Per share results are based on 10,045,000 and 9,298,000 diluted weighted average shares outstanding for the Q1 '10 and Q1 '09 quarters, respectively.
Stuart Rose, Chairman and Chief Executive Officer commented on the results, "REX got off to a strong start in fiscal 2010 with Q1 operating results reflecting our transition over the last several years to focus on alternative energy. Fiscal 2010 Q1 comparisons benefited from the start of ethanol production last year at the One Earth Energy facility as well as a year-over-year improvement in crush spreads for the first three months of calendar 2010."
At April 30, 2010, REX had cash and cash equivalents of $101.4 million, including $86.1 million of cash at the parent company (exclusive of approximately $15.3 million of cash at consolidated ethanol production facilities), compared with cash and cash equivalents of $100.4 million at January 31, 2010 including $82.5 million of cash at the parent company (exclusive of approximately $17.9 million of cash at consolidated ethanol production facilities).
REX repurchased 2,000 shares of its common stock in open market transactions in Q1 '10. Reflecting its current repurchase authorization, REX is presently authorized to repurchase up to 481,000 shares of its common stock.
Segment Operating Results Data
REX's financial results primarily reflect its interests in six ethanol production facilities, including the consolidation of its majority investments in two ethanol affiliates, Levelland Hockley County Ethanol, LLC ("Levelland Hockley") and One Earth Energy, LLC ("One Earth").
At April 30, 2010, REX had lease or sub-lease agreements, as landlord for all or parts of ten former retail store locations (including one property that REX leases and sub-leases). REX also has 30 former retail stores and one former distribution center that were vacant at April 30, 2010 which it is marketing to lease or sell. In addition one former distribution center is partially leased, partially occupied for the REX corporate office and partially vacant. The Q1 '10 real estate revenue reflects rental income derived from these sites.
REX exited its retail operations in fiscal 2009, and the retail operations results are classified as discontinued operations. Certain amounts differ from those previously reported as a result of retail operations and certain real estate assets being reclassified as discontinued operations. In Q1 '10 REX recorded $0.7 million of income from discontinued operations, net of tax compared with a $0.7 million loss from discontinued operations and disposal of discontinued operations, net of tax in Q1 '09.
The table below summarizes net sales and revenue from REX's alternative energy and real estate segments and income (loss) from continuing operations for the three-month periods ended April 30, 2010 and April 30, 2009.
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Supplemental Data Related to REX's Alternative Energy Interests
At April 30, 2010 REX had interests in the following ethanol production facilities:
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The following table summarizes select data related to the Company's alternative energy interests:
The following table summarizes selected operating data from Levelland Hockley and One Earth, the Company's consolidated ethanol production facilities:
Segment Balance Sheet Data
Conference Call, Webcast and Replay Details:
REX is hosting a conference call and simultaneous webcast at 11:00 am ET today, both of which are open to the general public. The conference call number is 212/231-2915; please call five minutes in advance to ensure that you are connected prior to the presentation. Questions will be reserved for call-in analysts and investors. Interested parties may also access the live call on the Internet at www.rextv.com/Corp/Page4.aspx; allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the call can be accessed for 30 days at www.rextv.com/Corp/Page4.aspx.
Planned Name Change
As previously announced, REX plans to change the Company's name to REX American Resources Corporation and its stock symbol to "REX." The name change is subject to shareholder approval at REX's Annual Meeting on June 9, and if approved, the symbol change will occur shortly thereafter.
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, sorghum, dried distiller grains, ethanol, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, 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.
Amounts differ from those previously reported as a result of retail operations and certain real estate assets being reclassified as discontinued operations.
- balance sheet follows -