REX
#Good morning and thank you for joining REX American Resources fiscal 2015 fourth-quarter conference call.
We'll get to our presentation and comments momentarily, as well as your Q&A, 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 guarantees 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 in 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 <UNK> <UNK>, Executive Chairman of the Board, and Zafar Rizvi, Chief Operating Officer.
I will first review our financial performance and then turn the call over to <UNK> for his comments.
REX is pleased to report on its profitable fourth-quarter earnings results.
Sales for the quarter declined approximately 16%, primarily due to lower ethanol pricing.
Sales were based upon 61.1 million gallons in this year's fourth quarter versus 57.8 million gallons in the prior year.
Sales declined approximately 24% for the full 2015 fiscal year, primarily reflecting lower ethanol pricing but also impacted by lower DDG pricing.
Gross profit declined from $30 million to $9.2 million for the fourth quarter as the crush spread was approximately $0.16 in the current year versus approximately $0.56 in the prior-year fourth quarter.
Gross profit for the full 2015 fiscal year was $50.8 million versus $141.9 million in the prior year, again reflecting the crush spread was approximately $0.17 this year versus approximately $0.59 last year.
SG&A was consistent between years with this year's fourth quarter being approximately $4.2 million versus approximately $4.1 million in the prior year.
Equity method income was $1.1 million in this year's fourth quarter versus $7.9 million last year and $9 million versus $32.2 million for the full fiscal years.
This reflects the lower operating performance of these plants, consistent with the industry this year versus last year, and the fact that we stopped recognizing equity income in the Patriot plant at May 31, 2015, upon the close of that sale.
We have no interest expense in the current year as a result of paying off the debt at the consolidated plants during fiscal 2014.
Our tax rate for fiscal 2015 was approximately 31% versus approximately 36.4% in the prior year, net of noncontrolling interest.
There can be and are fluctuations in the tax rate based upon the level of income and the amount of tax deductions received for production, as well as fluctuations in state tax rates and apportionments.
On a normal basis, I would expect our tax rate to be approximately 36% to 38% after consideration of noncontrolling interests.
Our net income for the quarter was $3.7 million versus $20.3 million in the prior year and $31.4 million for fiscal 2015 versus $87.3 million in the prior year.
Diluted earnings per share for the quarter was $0.54 versus $2.55 last year and $4.30 for the full fiscal 2015 versus $10.76 in the prior year.
I would now like to turn the call over to <UNK> <UNK>, Executive Chairman, for his commentary.
