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Jan 31, 2020
REX American Q4 2019 Earnings Report
REX American reported Q4 2019 earnings with increased revenue and EPS.
Key Takeaways
REX American Resources reported a rise in Q4 2019 net sales and revenue to $120.9 million, driven by higher ethanol pricing, resulting in an improved gross profit for the ethanol and by-products segment. The company's Q4 diluted EPS was $0.70, and the company faces challenges including the COVID-19 pandemic and its impact on fuel demand.
Q4 2019 net sales and revenue increased to $120.9 million compared to $113.3 million in Q4 2018, primarily due to higher ethanol pricing.
Ethanol and by-products segment gross profit rose to $8.1 million in Q4 2019, up from $5.4 million in Q4 2018.
Q4 2019 diluted net income per share attributable to REX common shareholders was $0.70, compared to $0.17 in Q4 2018.
The company had cash and cash equivalents of $205.7 million as of January 31, 2020.
REX American
REX American
Forward Guidance
The company faces challenges in fiscal year 2020 due to the decline in the crude market and the COVID-19 pandemic, which may lead to idling of plants to preserve financial stability.
Positive Outlook
- Disciplined operating approach
- Strong and healthy balance sheet
- Cash and cash equivalents in excess of $205 million
- Working capital of $239.5 million
- Ongoing authorization to purchase up to 350,000 common shares
Challenges Ahead
- Continued challenges in fiscal 2020
- Decline in the crude market
- COVID-19 pandemic impact on fuel demand
- Recent declines in crush spread levels
- Potential idling of plants