Q3 2024 REX American Resources Corp Earnings Call Transcript
Key Points
- REX American Resources Corp (REX) reported its second most profitable quarter in the company's history, with a net income per share of $1.38, a 97% improvement over the second quarter of 2024.
- The company successfully improved its gross margin by 1% over the third quarter of 2023, despite a 21% reduction in product revenue.
- REX American Resources Corp (REX) is on track to complete the expansion of its One Earth Energy ethanol production facility to 175 million gallons per year by mid-2025.
- The carbon capture and compression portion of the One Earth Energy project is substantially complete, positioning the company for future growth in carbon sequestration.
- The company ended the third quarter with a strong cash position of $365.1 million and no bank debt, providing financial flexibility for future projects.
- The timeline for the ethanol production expansion has been extended to mid-2025 due to delays in equipment delivery.
- Average selling prices for ethanol, dry distiller grain, and corn oil decreased compared to the third quarter of 2023, impacting revenue.
- Selling, general, and administrative expenses increased to $8.4 million, primarily due to higher railcar leasing costs and donations related to the carbon capture project.
- Net income attributable to REX shareholders decreased to $24.5 million from $26.1 million in the third quarter of 2023.
- The company faces uncertainty regarding federal policies, such as the potential changes to Section 45Q tax credits, which could impact the profitability of its carbon capture projects.
Good morning, and welcome to the REX American Resources third-quarter 2024 earnings conference call.
As a reminder, today's call is being recorded. (Operator Instructions)
I would now like to turn the call over to Mr. Doug Bruggeman, Chief Financial Officer of REX American. Please go ahead.
Good morning, and thank you for joining REX American Resources Q3 2024 conference call. With me on our call today are Stuart Rose, REX Executive Chairman; and Zafar Rizvi, the REX CEO.
We'll get to our presentation and comments momentarily, as well as your questions. But first, I will review the Safe Harbor disclosure. In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risk and uncertainties within the meeting of the private Securities Litigation Reform Act of 1995.
Such forward-looking statements reflect the company's current expectations and beliefs, but are not guarantees of future
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