DAYTON, Ohio--(BUSINESS WIRE)--REX Stores Corporation (NYSE: RSC) announced that at today’s Annual Meeting shareholders approved an amendment to the Company’s Certificate of Incorporation changing the name of the Company to REX American Resources Corporation. The name change is effective June 10, 2010 and at the start of trading tomorrow the Company’s stock trading symbol will be changed to “REX” on the New York Stock Exchange.
REX also announced that the Board of Directors named Zafar Rizvi, 60, President and Chief Operating Officer of the Company, acknowledging Mr. Rizvi’s substantial contributions in establishing and managing REX’s alternative energy interests. For the past 18 years Mr. Rizvi has served REX as a Vice President, most recently overseeing the Company’s alternative energy interests. Mr. Rizvi will continue to report to REX Chairman and CEO Stuart Rose, who until Mr. Rizvi’s appointment, also held the title of President.
In the quarter ended April 30, 2010, REX reported alternative energy revenue of $71.0 million compared with $14.1 million in the comparable prior year period with alternative energy segment profit of $8.6 million in the 2010 period compared with a $2.0 million loss in the comparable prior year period. At April 30, 2010, REX had cash and cash equivalents of $101.4 million, including $86.1 million of cash at the parent company (exclusive of approximately $15.3 million of cash at consolidated ethanol production facilities). Further information about REX American Resources Corporation is available at www.rexamerican.com.
Stuart Rose, CEO, commented, “The name change to REX American Resources Corporation better reflects the company’s primary business, assets and focus. We believe it will help investors and the marketplace better associate the Company with its alternative energy business.
“Today, REX has interests in six ethanol production facilities representing control of approximately 144 million gallons per year of ethanol, a strong balance sheet with over $86 million in unencumbered cash, and a portfolio of real estate assets with a carrying value of approximately $31 million. Our business model and modest share base provide the Company with significant operating leverage, and we are confident that we can prudently deploy our strong balance sheet for further investments in ethanol, other renewable resources or other industrial projects, and through share repurchases, to build value for stockholders.
“Zafar Rizvi’s appointment to the roles of President and Chief Operating Officer acknowledges the strong contributions he has made as we transitioned the company to focus on alternative energy. He brings a track record of success in alternative energy and deep perspectives on the industry to his new positions, and we look forward to the continued benefit of his contributions as we seek to build value for REX shareholders.”
At today’s shareholders’ meeting, REX shareholders also elected seven members to the Board of Directors to serve until the next Annual Meeting of Shareholders (which was the only other item up for a shareholder vote). The Board members are: Stuart A. Rose, Lawrence Tomchin, Robert Davidoff, Edward M. Kress, Charles A. Elcan, David S. Harris, and Mervyn L. Alphonso.
This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the impact of legislative changes, the price volatility and availability of corn, sorghum, dried distiller grains, ethanol, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, changes in the national or regional economies, weather, the effects of terrorism or acts of war, changes in real estate market conditions and the impact of Internal Revenue Service audits. The Company does not intend to update publicly any forward-looking statements except as required by law.