REX American Resources Corporation (NYSE:REX) Q3 2015 Earnings Conference Call - Final Transcript
Nov 03, 2015 • 10:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the REX American Resources Fiscal 2015 Third Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session.
I would now like to turn the conference over to Doug Bruggeman, Chief Financial Officer. Please go ahead.
Douglas L. Bruggeman
Good morning, and thank you for joining REX American Resources fiscal 2015 third quarter conference call. We'll get to our presentation and comments momentarily, as well as your question-and-answer session, but first, I'll 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 meaning 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 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.
REX is pleased to report another strong earnings report for the fiscal 2015 third quarter relative to industry dynamics. Sales for the quarter declined approximately 20% for the quarter, primarily due to lower ethanol pricing. Sales were based upon 57.3 million gallons this year's third quarter versus 58.4 million gallons in the prior year. Sales declined approximately 26% for the first three quarters of fiscal 2015, reflecting lower ethanol and DDG pricing.
Gross profit declined from $36.5 million to $14.3 million for the third quarter as the crush spread was approximately $0.19 for REX in the current year versus approximately $0.59 in the prior year. Gross profit for the first nine months of fiscal 2015 was $41.7 million versus $112 million in the prior year, reflecting the crush spread was approximately $0.18 this year versus approximately $0.58 last year.
Equity method income was $1.3 million this year versus $8.8 million last year for the third quarter and $7.9 million versus $24.3 million for the first nine months in the fiscal year. This reflects the lower operating performance of these plants consistent with the industry this year versus last year and the fact we discontinued recognizing equity income on the Patriot plant at May 31 upon the close of that sale.
We did recognize a pre-tax gain of $10.4 million from the sale of Patriot during the second quarter of the current year, impacting comparability for the year-to-date numbers. We have no interest expense in the current year as a result of paying off the debt of the