Boston, MA 09/02/2014 (wallstreetpr) – REX American Resources Corp (NYSE:REX) reported gross profit of $38.8 million in the second quarter. The diluted earnings rose 277% to come at $2.68 per share in the second quarter. The six months diluted earnings of REX came at $5.35 per share. REX posted cash and cash equivalents of $152.2 million in the second quarter comparable to $105.1 million in the last quarter. The cash and cash equivalent of $50.4 million was at the parent company while the rest of the $101.8 million was of its consolidated ethanol production facilities. The cash and cash equivalents of ethanol production facilities was at $41.8 million in the last quarter.
The financial details
REX American Resources Corp (NYSE:REX) reported the net sales at $150.2 million comparable to $175.4 million in 2Q2013. The ethanol and distillers grains pricing declined which resulted in a shortfall in sales. However, the favorable crush spread margins in ethanol supported the gross profit which came higher at $38.8 million comparable to $10.9 million in the prior year quarter. The net income came higher at $21.9 million comparable to $5.8 million in 2Q2013. The diluted net income rose to $2.68 per share comparable to $0.71 per share in 2Q2013. It reflects the REX’s alternative energy sector interests in its seven ethanol production facilities.
The favorable metrics
Stuart Rose, the CEO of REX American Resources Corp (NYSE:REX), stated that the favorable market conditions and improved working conditions of plants resulted in a rise in net income and earnings. REX reflects the solid financial base as the cash and cash equivalents of REX in the second quarter rose 45% to around $152.2 million. REX American Resources Corp (NYSE:REX) worked to improve on its balance sheet and liquidity in the second quarter. It allocated cash from its operations to reduce the debt by as much as 18% to approximately $62 million. The interest expenses declined over 42% comparable to 2Q2013. The debt-to-capital ratio came at 16% comparable to 21% in the prior quarter.
