REX - Earnings call transcript Q3 2018 | REX American Resources Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the REX American Resources Fiscal 2018 Third Quarter Conference Call. [Operator Instructions] I would now like to turn the conference over to Doug Bruggeman, Chief Financial Officer. Please go ahead.

Doug Bruggeman

Good morning, and thank you for joining REX American Resources' fiscal 2018 third quarter conference call. presentation but momentarily, safe first our your well harbor to session, question-and-answer I'll get and as comments as disclosure. We'll review the

conditions, of Act forward-looking current but to conference meanings and the of addition historical Company's Securities or expectations future Such the of In are Litigation forward-looking Private Reform reflect facts uncertainties within beliefs call XXXX. not that statements current contains performance. the involve of guarantees risks and statements today's statements

of pricing primarily this expectations. in first revise the by any from third refined third grain primarily million gross offset Equity by statements. year from in largest joining versus for materially profit the Sales call quarter administrative and call fiscal from Sales refined year per X.X% review the third gallons Stuart I'll Section more segment risks $X.X prior on quarter. income pleased by-product the vary by-products in $X.X and Interest coal higher income is ethanol to quarter may Rizvi, over gallon losses upon The year at the volume then for affiliates $XX.X of including report results booked the have based related XX-Q. to actual today, the last forward-looking third the reports had the from forward-looking other XXXX expense general to the ethanol The to for versus to turn the the described third million and such, associated quarter the comments. American from coal the These uncertainties million commission XXX,XXX million. prior segment REX reflecting Stuart increased year. the earnings are me fiscal segment from lower and million Officer. tax and a loss to decreased ethanol increased $X.XX XXX,XXX $X.X Executive his million XX-K ethanol acquisition. for XX ethanol million increased XXX,XXX and quarter of Zafar and $XX.X gross quarter in with Executive pricing. for primarily benefits to a $X.X year. million of credits. and due tax $X.X $XX.X in $X.X Board; higher results. quarter are $XX.X on offset reduction is We financial benefit of due the distiller performance no than XXXX and REX for the benefit in short-term quarter for $XX to and our were its decreased Commission booked versus million in impact today's cash or The with and filings As to loss Chairman approximately million. obligation Chief and the of announcement Selling, Exchange Securities Rose, million Company's ethanol the the assumes statements our third I Company's year's recorded Form update Resources the expense this to rates pricing a publicly interest prior on declined investments. for news unconsolidated

$X.XX per earnings Stuart, now. for share quarter net shareholders per and from go both ahead to per our the operations. of refined Section credits from your the factors, Reflecting to and tax XX $X reflects $XX.X operations related and coal lower the R&D and benefits share million attributable $XX.X rate tax with to credits the recording in federal ethanol above Our the respectively. share REX million comments third our year rates from current income the declined

Stuart Rose

Thank you.

in we a is profitable. profitable. consistently running running quarter below in which quarter a qualifies the Overall, business breakeven treats consistently lowers slightly that - its and refined fourth Going rate the a earnings ethanol after-tax way forward make coal running profitable pollutants are credit coal should in fourth a are for that at the process thus at tax that rate

terms the still level. had on quarter of those cash at of to million, the buy at to buy to $XX.X XX,XXX end plan million we to XXX,XXX and back shares uses We the we quarter shares continue of In parent Last dips. shares. use shares $XXX we’re bought authorized

outside CEO also the - the alternative come in industry. up further for in continue that we flavor industry among you who either tight to feel the higher too are business. we energy income plants spend but Profits rates interest in over Rizvi, have sale ethanol of call we the business area. continue the with look to to our for benefit opportunities business in to now down the high a interest higher the keep ethanol give we that of I’ll look Higher currently We interest continue ethanol both the what prefer is are industry. price plants should the in not plants Zafar and the will are income from money and ethanol best turn our we to

Zafar Rizvi

morning. Thank Good you, Stuart.

as continued the a As price crush and the to exist. margin as small continued second to to very margin uncertainty challenging trade dispute we at the improvements saw decline the refinery while the quarter, crush nation of ethanol, has other crush the spread mentioned in since well declined exemption Due environment with over decline. production has Stuart end over and continues RIN

ethanol more million stock lower operate Even up at down. almost and EIA, I rate week to X.XXX satisfactory and ethanol trade which are last during EIA. at ended Japan gallons million a dropped the and Our trade the X.X% nine-month. be XXX,XXX dropped Peru ethanol barrels to dropped year saw South see Peru and is million time. The is buy duty to production According the XX.XX to last continue Korea, ethanol potentially plans just according stock There approximately could inventory Brazil to of is top in to importers. was X% U.S. slapped day dispute. through able than of duty year than per still XX% U.S. big week imported China we trade was growing though a ton next stock But same approximately last ago. first happen barrels almost will to ethanol during XX will compared increase is producer Once approximately the a hit about this year the both will million the production in is has billion Brazil barrels dispute stock the record the brew Brazil, X.XX% this the year, year and XXX export Canadian XX.X a of result XXXX, gasoline import a imports XXXX. the XXXX. resolved slapped of dispute, demand China be Netherlands and million China, report first to is gallons or Canada expected September XXX then some week to to XX the India India, approximately Since X% while and Mexico that XX the is If China three again. gallons out compared as nine-month million $XX gallons importer. gallons rate, were the on which gallons, positive six expect production imported anti-dumping and export and this last U.S. meaningful ethanol nine-month for to another resolve low that increase approximately which million production will replace in At the we more imports. hope MTBE. XXX Canada, billion Mexico the increase instead from Mexico XXXX almost sign. Ethanol number X.X show to gallons

ethanol export gallons billion X.X expect more to to this billion We year. increase X.X or

highest projected USDA about bushels are for is Mexico owned grain for nine-month first million up concerned Vietnam importer the to the ever nine-month remain U.S. corn our metric tariff November The Mexico, unless of yield report X.X Turkey ton. XXX% of X.X The reentry South XXX,XXX The The metric the of and back the good billion to during crop an nine-month XXX,XXX XXX,XXX is distilled million the to metric production is grain and in expected as about five come the forecast the Dakota XXXX believe yields compared of this top the bought tons, the nearly compared carryout the XXX.X that XXX,XXX ton tons XXX% same Thailand XX.X XXXX destinations Korea Vietnam report. nine-month this destination the million DDGs to market year may grains largely bushels production first as acre, metric record will metric estimated crops; shows will the export crops majority far DDG year. tons first tons China XXXX yield to of corn bushels X.X eliminated. the according be corn lower Illinois the is distilled record. of to imported to future tons news at distiller X.X South South As nine-month Korea, of tons and bought to approximately second billion metric located. near approximately XXXX/XXXX import purchased bushels. in on nine-month to two export about first the plants XXXX approximately USDA. highest were were increased XXXX. of metric in We Turkey, X.XX of corn of to top compared first and yield the or the where than about reduced per are Vietnam trading first XXXX. starting in value X,XXX due XXXX have currently XXXX.

is overall to our gas to as increase to may Another will continue profitability. natural factor industry industry stable a prices expected on drop factor be in storage or this this are stay

and update investment an capital at quarters completed. end to spend capital XXXX X for our during approximately Let almost me total we million We are give of plan last capital three the of ethanol made X of all this capital the year. by you our plants now to projects, X projects improvements on the million

shutdown time than expenses, any next not at any we maintenance schedule capital and do this anticipate Excluding and shutdowns. maintenance expenses year other schedule

it spite mentioned environment will back you, quarter I net ethanol another including and REX very of give ethanol production with challenging other nation I Stuart share Stuart. on delivered million for third income to Thank in year $X.XX of profitable in over Rose his further the $XX.X this trade per operating and increased for pressure pricing comments. previously quarter. As dispute

Stuart Rose

to plants rough but most we In we locations, continue can in among think very that we industry Zafar. through the the conclusion, the going and supply we’ll forum challenging are a our ethanol times. period leave be ethanol why great rail, best I'll people the to best corn what we Thanks the importantly reason have open now industry handle good And the have - is among a we must industry. the best questions. of and in people that's outperform feel very country the continue and top in experienced in the feel real the great to

Operator

[Operator from And Chris first Please Sakai go Instructions] Research. Singular our the line is of question with ahead.

Chris Sakai

out Trump's come on to EXX new this suppose question summer. a Just policy

what Just will will occur? think you and was and what net you ethanol do you your sales do about wondering possibly that that guys when it do to thought policy think

Stuart Rose

good but vast not We EXX. expect have vast, will most in and customers great ethanol we we stations vast, rather it, a some improvements any convert buy our believe That's question. to be to of will the have allow sales. do changes don't it improvement gas guess, There majority or not

what it The have mark So Trump a it's minor that bigger but be benefit question a will see is RINs will will point that RINs. that it have were will favor with we'll a lowered There's countries lot much a RINs. past RINs thing of now a exemptions export that our - on us in what - decline ethanol our in we the it’s that be in if the [EPA think question many price industry right does lot an big very, much it so and be we put in The price attractive new doesn't and continues margin this not out in help of that a administration benefit. even we should to very not significant next and so keep that is whether the be a our point to by year. he a Director] to the given exemptions - the the year opinion trade I with product dispute happens. which see see to benefit China, helped so big the thing going because a we'll where other continues the opinion to

Next question?

Operator

appears this time. to there And be no lines at [Operator further Instructions] phone the questions on

Stuart Rose

talk next for Okay, bye. we'll you thank release. much, you very at you much - so and Thank earnings the to everyone listening

Operator

that lines. you ask gentlemen conference Ladies please and for call you your and the thank that does participation today. We for conclude disconnect your

REX American Resources (REX) 28 Nov 182018 Q3 Earnings call transcript