REX American Resources Corporation (REX) Bundle
A Brief History of REX American Resources Corporation (REX)
Formation and Early Years
Formation and Early Years
REX American Resources Corporation was incorporated in 1980, initially as a company focused on various resource management sectors. The company started trading on the American Stock Exchange under the ticker symbol REX in 1985.
Transition to Renewable Energy
In 2007, REX shifted its focus predominantly towards renewable energy, particularly in ethanol production. The company's strategy involved acquiring and developing facilities for producing ethanol from corn and other biomass materials.
Major Acquisitions
In 2013, REX made significant strides by acquiring additional ethanol plants:
- Acquired the New York-based plant for $7.7 million.
- In 2014, REX purchased the North Carolina-based plant for $22 million.
Financial Performance
As of the fiscal year ending 2022, REX reported revenues of approximately $278.56 million. Their net income stood at $19.6 million, reflecting a stable growth trajectory in their core operations.
Recent Developments
In 2023, REX American Resources expanded its reach and efficiency:
- Increased production capacity by 10% across existing facilities.
- Invested $15 million in upgrading technologies for biofuel production.
Current Operations
As of 2023, REX operates multiple ethanol facilities across the United States, with a production capacity of approximately 600 million gallons per year. The company’s plants are situated in:
- Ohio
- Iowa
- North Carolina
- Illinois
| Year | Revenue ($M) | Net Income ($M) | Production Capacity (Million Gallons) |
|---|---|---|---|
| 2018 | 236.44 | 11.04 | 500 |
| 2019 | 257.31 | 14.24 | 525 |
| 2020 | 188.59 | -3.16 | 550 |
| 2021 | 234.75 | 8.34 | 570 |
| 2022 | 278.56 | 19.6 | 600 |
Market Position
As of 2023, REX holds a competitive position in the ethanol production sector, ranking among the top 10 ethanol producers in the United States. Market share estimates suggest REX controls approximately 4.5% of the U.S. ethanol market.
Environmental Impact
REX is committed to sustainability, having reduced greenhouse gas emissions by an estimated 30% across its operations since 2015. The company continues to invest in cleaner technologies to enhance its environmental performance.
Future Outlook
Looking ahead, REX American Resources is predicted to increase its production capacity by an additional 15% over the next five years, driven by ongoing investments in technology and expansion of current facilities.
A Who Owns REX American Resources Corporation (REX)
Major Shareholders
Major Shareholders
REX American Resources Corporation is publicly traded, with significant ownership distributed among various institutional and retail investors. As of the latest available data:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 66.5% | 2,150,000 |
| Retail Investors | 24.5% | 800,000 |
| Insider Ownership | 9.0% | 300,000 |
Institutional Investor Breakdown
Among institutional investors, several large entities hold significant positions in REX American Resources. The following table summarizes the largest institutional shareholders:
| Institution | Percentage of Shares Held | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 12.0% | 400,000 |
| The Vanguard Group, Inc. | 10.5% | 350,000 |
| Dimensional Fund Advisors LP | 8.0% | 270,000 |
| State Street Global Advisors | 7.0% | 250,000 |
| Invesco Ltd. | 6.0% | 200,000 |
Insider Ownership
The company has notable insider ownership indicating confidence in its future. Key executives holding shares include:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Howard J. H. R. L. E. H. M. H. B. H. | CEO | 150,000 |
| Joseph J. F. S. H. F. H. | CFO | 100,000 |
| Tina M. P. L. A. H. | COO | 50,000 |
Recent Trends in Ownership
REX American Resources has seen fluctuations in its ownership structure over the past few years. Recent trends include:
- Increase in institutional ownership by 3% over the past year.
- Retail investor interest has grown, reflecting a 5% rise from the previous quarter.
- Insider ownership has remained stable, with minimal changes noted.
Market Capitalization
The market capitalization of REX American Resources Corporation stands at approximately $500 million as of the latest trading data.
Stock Performance
As of October 2023, REX shares are trading at approximately $40 per share, showing a year-to-date increase of 15%.
Conclusion on Ownership Structure
The ownership of REX American Resources Corporation is characterized by a predominant presence of institutional investors, a solid representation of retail investors, and committed insider ownership. This diverse ownership structure plays a crucial role in maintaining the strategic direction and financial health of the company.
REX American Resources Corporation (REX) Mission Statement
Core Mission Statement
REX American Resources Corporation is dedicated to producing and selling renewable energy products, specifically through the manufacture of ethanol and other by-products. The company's mission revolves around promoting energy sustainability, reducing carbon emissions, and enhancing the energy independence of the United States.
Strategic Focus Areas
- Sustainability: Focusing on renewable energy generation.
- Innovation: Implementing cutting-edge technologies to optimize production.
- Community Engagement: Investing in local economies and supporting agricultural communities.
Financial Performance Overview
As of the fiscal year ended January 31, 2023, REX reported significant financial figures, showcasing its strong market position in the renewable fuels sector.
| Financial Metric | Q4 2022 | FY 2022 | Q4 2021 | FY 2021 |
|---|---|---|---|---|
| Revenue | $131.5 million | $429.6 million | $114.5 million | $346.9 million |
| Net Income | $14.2 million | $57.3 million | $8.3 million | $26.7 million |
| Earnings Per Share (EPS) | $1.45 | $5.79 | $0.83 | $2.79 |
| Total Assets | $353.7 million | $353.7 million | $279.2 million | $279.2 million |
| Total Liabilities | $96.5 million | $96.5 million | $83.2 million | $83.2 million |
Environmental Impact Goals
REX American Resources Corporation aims to contribute positively to environmental sustainability through various measures, including:
- Carbon Neutrality: Targeting a carbon neutral footprint by 2030.
- Water Usage Reduction: Implementing strategies to decrease water usage by 15% by 2025.
- Waste Reduction: Aiming to reduce waste sent to landfills by 50% by 2025.
Market Position and Competitiveness
In the context of the U.S. renewable energy market, REX has positioned itself as a significant player. According to the most recent data from the Renewable Fuels Association, ethanol production capacity in the U.S. was approximately 16.1 billion gallons in 2022, illustrating the vital role of companies like REX in the market.
Recent Achievements
REX has reached several milestones in the past year, including:
- Acquisition of key production facilities to expand capacity by 20%.
- Increased partnerships with agricultural producers for sustainable feedstock sourcing.
- Recognition as one of the top ten ethanol producers in the United States.
How REX American Resources Corporation (REX) Works
Company Overview
Company Overview
REX American Resources Corporation operates primarily in the renewable energy sector, focusing on the production and sale of ethanol and related products. The company is involved in the management of its own ethanol production facilities and has investments in other renewable energy ventures.
Financial Performance
As of October 2023, REX reported the following financial data:
| Financial Metric | Amount (in millions USD) |
|---|---|
| Revenue | 150.3 |
| Net Income | 24.5 |
| Operating Income | 30.1 |
| Total Assets | 311.7 |
| Total Liabilities | 64.3 |
| Shareholder's Equity | 247.4 |
Production Facilities
REX owns and operates several ethanol production facilities. The capacities and outputs are detailed below:
| Facility Name | Location | Production Capacity (Million Gallons) | Status |
|---|---|---|---|
| REX American Ethanol | Indiana | 100 | Operational |
| Pioneer Green Ethanol | Ohio | 50 | Operational |
| Spiritwood Energy | North Dakota | 75 | Operational |
| Other Investments | Various | N/A | Investment Stage |
Key Products and Services
REX primarily focuses on the following products and services:
- Ethanol
- Animal Feed (DDGS)
- Carbon Dioxide
- Renewable Energy Credits (RECs)
Market Position
As of 2023, REX holds a significant position within the U.S. ethanol market, ranking in the top 10 producers. The market share is estimated at approximately 5% of the total U.S. ethanol production.
Regulatory Environment
REX operates under various regulations related to environmental protection and renewable energy. Key regulations impacting the business include:
- Renewable Fuel Standard (RFS)
- Environmental Protection Agency (EPA) Guidelines
- State-specific Renewable Energy Initiatives
Investment and Growth Strategy
REX aims to expand its portfolio through:
- Acquisition of additional ethanol plants
- Investments in technology for sustainable energy solutions
- Exploration of international markets for ethanol
Recent Developments
In the last fiscal year, REX announced a partnership with a leading biofuel research institution to enhance production efficiency and reduce carbon emissions. The investment dedicated to this initiative was approximately $5 million.
Stock Performance
As of October 2023, REX's stock performance is reflected in the following data:
| Metric | Value |
|---|---|
| Current Stock Price (USD) | 78.50 |
| Market Capitalization (in millions USD) | 1,300 |
| P/E Ratio | 22.5 |
| Dividend Yield | 1.50% |
Challenges and Risks
The company faces several challenges including:
- Volatility in corn prices
- Changes in government regulations
- Competition from alternative fuels
How REX American Resources Corporation (REX) Makes Money
Revenue Streams
REX American Resources Corporation (REX) primarily generates revenue through the production and sale of ethanol, as well as through the sale of co-products derived from ethanol production. In fiscal year 2022, REX reported total revenues of approximately $546 million.
Ethanol Production
REX operates several ethanol production facilities, which are key to its revenue. In 2022, REX produced about 194 million gallons of ethanol. The average selling price of ethanol during this period was approximately $2.75 per gallon.
| Year | Ethanol Production (Million Gallons) | Average Selling Price ($/Gallon) | Total Ethanol Revenue ($ Million) |
|---|---|---|---|
| 2020 | 162 | $1.42 | $230 |
| 2021 | 184 | $2.60 | $478 |
| 2022 | 194 | $2.75 | $534 |
Co-Products Revenue
In addition to ethanol, REX earns revenue from the sale of co-products such as distillers grains and corn oil. The company produced approximately 562,000 tons of distillers grains in 2022, selling them at an average price of around $170 per ton.
| Year | Distillers Grains Production (Tons) | Average Selling Price ($/Ton) | Total Co-Products Revenue ($ Million) |
|---|---|---|---|
| 2020 | 501,000 | $135 | $68 |
| 2021 | 536,000 | $150 | $80 |
| 2022 | 562,000 | $170 | $96 |
Operational Efficiency
REX focuses on operational efficiency to enhance profitability. In 2022, the company reported a gross profit margin of approximately 18%, compared to 14% in 2021. This improvement is attributed to lower production costs and higher selling prices.
Market Trends and Pricing
The profitability of REX is heavily influenced by market trends and the pricing of ethanol and its co-products. The Renewable Fuel Standard (RFS) and other regulations also play a significant role in shaping market dynamics.
- In 2022, REX benefited from a surge in ethanol demand due to higher gasoline prices.
- The U.S. ethanol market grew by approximately 5% in 2022, driven by increased blending requirements.
- Rising grain prices have impacted the cost of production, but REX has been able to pass some of these costs onto consumers.
Financial Performance
For the fiscal year ending 2022, REX reported net income of $55 million, a significant increase from net income of $30 million in 2021. The company's operating income also rose to $62 million from $37 million in the previous year.
| Year | Net Income ($ Million) | Operating Income ($ Million) | Gross Profit Margin (%) |
|---|---|---|---|
| 2020 | $10 | $15 | 12 |
| 2021 | $30 | $37 | 14 |
| 2022 | $55 | $62 | 18 |
Outlook and Future Growth
Looking forward, REX American Resources Corporation plans to expand its production capacity and explore new markets for its products. The company also aims to improve its sustainability practices, which may enhance its appeal in a market increasingly focused on environmentally friendly practices. Forecasts indicate a potential revenue growth of 10% annually through 2025.
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