REX American Resources Reports First Quarter Diluted EPS of $1.45

DAYTON, Ohio–(BUSINESS WIRE)–REX American Resources Corporation (NYSE: REX) (ÔÇ£REXÔÇØ or ÔÇ£the CompanyÔÇØ)
today reported financial results for its fiscal 2018 first quarter (ÔÇ£Q1
ÔÇÿ18ÔÇØ) ended April 30, 2018. REX management will host a conference call
and webcast today at 11:00 a.m. ET.

REX American ResourcesÔÇÖ Q1 ÔÇÿ18 results principally reflect its interests
in six ethanol production facilities and its refined coal operation. One
Earth Energy, LLC (ÔÇ£One EarthÔÇØ) and NuGen Energy, LLC (ÔÇ£NuGenÔÇØ) are
consolidated, while those of its four other ethanol plants are reported
as equity in income of unconsolidated ethanol affiliates. REXÔÇÖs
financial results also reflect the refined coal entity acquired by the
Company in fiscal 2017. The Company reports results for its two business
segments as ethanol and by-products, and refined coal.

REXÔÇÖs Q1 ÔÇÿ18 net sales and revenue were $120.8 million, compared with
$113.1 million in Q1 ÔÇÿ17, primarily reflecting the increased ethanol
gallons sold as well as higher average selling prices for dried and
modified distillers grains during the quarter, which offset lower
average selling prices for ethanol. The CompanyÔÇÖs Q1 ÔÇÿ18 gross profit
for its ethanol and by-products segment increased to $13.5 million, from
$12.5 million in the comparable prior year period. Equity in income of
unconsolidated ethanol affiliates in Q1 ÔÇÿ18 was flat at $0.7 million,
compared to Q1 ÔÇÖ17. This led to income before income taxes of $11.0
million in Q1 ÔÇÿ18, compared to $8.9 million in Q1 ÔÇÿ17 for the ethanol
and by-products segment. The Company also recorded a gross loss from its
refined coal operation of $2.7 million in Q1 ÔÇÿ18. While gross profit and
income before income taxes were negatively impacted, the Company was
able to recognize benefits related to its refined coal operation in the
form of a lower effective tax rate. The Company reported income from
continuing operations before income taxes and non-controlling interests
in Q1 ÔÇÿ18 of $7.6 million, compared with $8.0 million in Q1 ÔÇÿ17.

Net income attributable to REX shareholders in Q1 ÔÇÿ18 more than doubled
to $9.5 million, from $4.5 million in Q1 ÔÇÿ17, primarily reflecting lower
tax rates related to the CompanyÔÇÖs refined coal operation and the
December 2017 passage of the 2017 Tax Cuts and Jobs Act. Q1 ÔÇÿ18 diluted
net income per share attributable to REX common shareholders was $1.45
per share, compared to $0.69 per share in Q1 ÔÇÿ17.

Per share results in Q1 ÔÇÿ18 and Q1 ÔÇÿ17 are based on 6,571,000 and
6,593,000 diluted weighted average shares outstanding, respectively.

REX American ResourcesÔÇÖ Chief Executive Officer, Zafar Rizvi, commented,
ÔÇ£Ethanol pricing remained pressured in the first quarter based on
industry supply levels and legislative uncertainty. However, our
consolidated plants increased the volume of ethanol sold by 9% over last
yearÔÇÖs first quarter and with the recovery in distillers grain pricing
we grew the gross profit in the ethanol and by-products segment by 8.5%.
This growth, combined with the benefits of our refined coal operations
and other tax reductions enabled REX to more than double its net income
and earnings per share in the first quarter of fiscal 2018 versus the
same period last year.

ÔÇ£With our healthy balance sheet, including cash and short-term
investments of $176 million and working capital of $220 million, we
remain well positioned in our continued efforts to build value for our
shareholders.ÔÇØ

Balance Sheet and Share Repurchase Program

At April 30, 2018, REX had cash and cash equivalents and short-term
investments of $175.7 million, $60.0 million of which was at the parent
company, and $115.7 million of which was at its consolidated production
facilities. This compares with cash and cash equivalents at January 31,
2018, of $191.0 million, $74.1 million of which was at the parent
company, and $116.9 million of which was at its consolidated ethanol
production facilities.

On March 20, 2018, REXÔÇÖs Board of Directors approved an increase in the
CompanyÔÇÖs share repurchase program providing the Company with the
authority to repurchase up to an additional 500,000 shares of its common
stock. During the first quarter of fiscal 2018, the Company purchased
126,141 shares at an average cost of $72.36. Reflecting the balance of
the CompanyÔÇÖs prior repurchase authorization, REX is now authorized to
repurchase up to 525,732 shares of its common stock. The Company had
6,440,628 shares outstanding at April 30, 2018.

Repurchases by the Company will be subject to available liquidity,
general market and economic conditions, alternate uses for the capital
and other factors. Share repurchases may be made from time to time in
open market transactions, block trades or in private transactions in
accordance with applicable securities laws and regulations and other
legal requirements. There is no minimum number of shares that the
Company is required to repurchase and the repurchase program may be
suspended or discontinued at any time without prior notice. All shares
purchased will be held in the CompanyÔÇÖs treasury for possible future use.

First Quarter Conference Call

REX will host a conference call at 11:00 a.m. ET today. Senior
management will discuss the financial results and host a question and
answer session. The dial in number for the audio conference call is
212/231-2924 (domestic and international callers).

Participants can also listen to a live webcast of the call on the
CompanyÔÇÖs website, www.rexamerican.com/Corp/Page4.aspx.
A webcast replay will be available for 30 days following the live event
at www.rexamerican.com/Corp/Page4.aspx.

About REX American Resources Corporation

REX American Resources has interests in six ethanol production
facilities, which in aggregate shipped approximately 684 million gallons
of ethanol over the twelve month period ended April 30, 2018. REXÔÇÖs
effective ownership of the trailing twelve month gallons shipped (for
the twelve months ended April 30, 2018) by the ethanol production
facilities in which it has ownership interests was approximately 267
million gallons. In addition, in fiscal 2017 the Company acquired a
refined coal operation. Further information about REX is available at www.rexamerican.com.

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 ÔÇ£may,ÔÇØ ÔÇ£expect,ÔÇØ ÔÇ£believe,ÔÇØ
ÔÇ£estimate,ÔÇØ ÔÇ£anticipateÔÇØ or ÔÇ£continueÔÇØ 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 CompanyÔÇÖs filings with
the Securities and Exchange Commission and include among other things:
the impact of legislative changes, the price volatility and availability
of corn, dried and modified distillers grains, ethanol, corn oil,
gasoline and natural gas, ethanol and refined coal plants operating
efficiently and according to forecasts and projections, changes in the
international, national or regional economies, weather, results of
income tax audits, changes in income tax laws or regulations and the
effects of terrorism or acts of war. The Company does not intend to
update publicly any forward-looking statements except as required by law.

– statements of operations follow –

– balance sheets follow –

– statements of cash flows follow –

Contacts

REX American Resources Corporation
Douglas Bruggeman, 937-276-3931
Chief
Financial Officer
or
JCIR
Joseph Jaffoni, Norberto Aja,
212-835-8500
[email protected]