REX American Resources Corporation (REX) has reported a 235.89 percent jump in profit for the quarter ended Jan. 31, 2017. The company has earned $12.38 million, or $1.88 a share in the quarter, compared with $3.69 million, or $0.54 a share for the same period last year. Revenue during the quarter grew 13.39 percent to $121.59 million from $107.23 million in the previous year period. Gross margin for the quarter expanded 1216 basis points over the previous year period to 20.70 percent. Total expenses were 85.14 percent of quarterly revenues, down from 95.35 percent for the same period last year. This has led to an improvement of 1021 basis points in operating margin to 14.86 percent.
Operating income for the quarter was $18.06 million, compared with $4.98 million in the previous year period.
REX American Resources' chief executive officer, Zafar Rizvi, commented, "We concluded our very successful 2016 fiscal year with our strongest quarter of the year. The Company's strong fourth quarter financial results again highlight our ability to manage our business in a highly efficient manner, through the efforts of our highly capable employees and the support of the communities in which we operate. Specifically, our fourth quarter and full year results reflect our ability to leverage our assets, which includes the strategic location, efficiency of our plants and our disciplined operating approach at the plant and corporate level. Our operating initiatives and favorable industry fundamentals led to significant fourth quarter growth in our key financial metrics, including gross profit, net income, diluted earnings per share and free cash flow generation."
Operating cash flow improves significantly
REX American Resources Corporation has generated cash of $69.11 million from operating activities during the year, up 71.96 percent or $28.92 million, when compared with the last year. The company has spent $7.75 million cash to meet investing activities during the year as against cash inflow of $32.20 million in the last year. It has incurred net capital expenditure of $12.70 million on net basis during the year, down 5.91 percent or $0.80 million from year ago.
The company has spent $8.55 million cash to carry out financing activities during the year as against cash outgo of $74.32 million in the last year period.
Cash and cash equivalents stood at $188.58 million as on Jan. 31, 2017, up 38.90 percent or $52.81 million from $135.76 million on Jan. 31, 2016.
Working capital increases sharply
REX American Resources Corporation has recorded an increase in the working capital over the last year. It stood at $204 million as at Jan. 31, 2017, up 27.72 percent or $44.27 million from $159.73 million on Jan. 31, 2016. Current ratio was at 10.06 as on Jan. 31, 2017, up from 9.13 on Jan. 31, 2016.
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