REX American Resources Corporation (NYSE:REX) Q4 2022 Earnings Conference Call March 23, 2023 11:00 AM ET
Company Participants
Doug Bruggeman - Chief Financial Officer
Stuart Rose - Executive Chairman
Zafar Rizvi - Chief Executive Officer
Conference Call Participants
Jordan Levy - Truist Securities
Chris Sakai - Singular Research
Graham Price - Raymond James
Operator
Greetings. And welcome to the REX American Resources Fiscal 2022 Fourth Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions]
I would now like to turn the conference over to Mr. Doug Bruggeman, Chief Financial Officer. Please go ahead.
Doug Bruggeman
Good morning. And thank you for joining REX American Resources’ fiscal 2022 fourth quarter conference call. We will get to our presentation and comments momentarily, as well as your question-and-answer session, but first I will review the safe harbor disclosure.
In addition to historical facts or statements of current conditions, today’s conference call contains forward-looking statements that involve risks and uncertainties within the meanings of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company’s current expectations and beliefs, but are not keys of future performance, as such, actual results may vary materially from expectations.
The risks and uncertainties associated with the forward-looking statements are described in today’s news announcement and the company’s filings with the Securities and Exchange Commission, including the company’s reports on Form 10-K and 10-Q. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements.
I have joining me on the call today, Stuart Rose, Executive Chairman of the Board; and Zafar Rizvi, Chief Executive Officer. I will first review our financial performance and then turn the call over to Stuart for his comments.
Sales for the fourth quarter declined by 5.6% as we experienced lower volume for ethanol and distillers grain. Ethanol sales for the quarter were based upon 63.7 million gallons this year versus 69.9 million last year, as we experienced some weather-related disruptions to their operations during the quarter.
We reported gross profit of $14.9 million for this year’s fourth quarter versus a gross profit of $38.8 million in the prior year. In the current year quarter, we experienced lower ethanol pricing, as well as higher corn and natural gas pricing.
Corn cost increased by 22% and natural gas pricing increased by 20 -- by 12% for this year’s quarter compared to the prior year, as inflationary pressures and the impact of commodity pricing from the Ukraine-Russia conflict continued. We continue to experience higher basis pricing for corn near the NuGen facility based upon a poor corn harvest and reduced corn availability in that local area.