Rex American Resources Corp. released financial results for the fourth quarter of 2017 on March 22, reporting reduced net sales, revenue and gross profit. The company, however, indicated conditions are improving in the first quarter.

Rex reported $109.5 million in net sales during the fourth quarter, down from $121.6 million during the same period of the previous year. The reduction primarily reflects lower average selling prices for ethanol during the quarter. Gross profit for Rex’s ethanol and byproducts segment was $10 million, down from $25.2 billion during the fourth quarter of 2016. The company also operates a refined coal segment, which recorded a gross loss of $4 million.

Net income attributable to Rex shareholders was $19.1 million, up from $12.4 million during the fourth quarter of 2016, primarily reflecting the company’s $14.4 million tax benefit as a result of the revaluation of its deferred tax liabilities in connection with the passage of the 2017 Tax Cuts and Jobs Act in December. Fourth quarter diluted net income per shareholder attributable to Rex common shareholders was $2.89 per share, compared to $1.88 per share during the fourth quarter of the previous year.

For the full year, net sales and revenue reached $452.6 million, down from $453.8 million in 2016. Gross profit was $44.2 million, compared to $71 million in 2016. Net income attributable to Rex shareholders was $39.7 million, compared to $32.3 million in 2016. Diluted net income per share attributable to Rex common shareholders was $6.02 for 2017, up from $4.91 per share in 2016.

During an investor call, Stuart Rose, chairman of Rex, said the company expects earnings from the ethanol segment to be relatively flat during the first quarter of 2018, with after-tax earnings significantly better than when compared to the same period of last year.

Ethanol crush spreads are up slightly when compared to the fourth quarter, he added. Distillers dried grains prices are also up over the fourth quarter, along with corn prices and gasoline prices.

Rose also spoke briefly about Rex’s plan to buy additional ethanol plants. He said the company is always looking to find really good plants to buy, but noted it hasn’t found any in the past year.

Zafar Rizvi, CEO of Rex, said the company made approximately $25 million in capital investments at its ethanol plants last year. Almost all the construction work at NuGen and One Earth Energy is completed, he added, noting that the company is working through the slow process to eliminate bottlenecks at the facilities.

Rex currently holds 75.1 percent ownership in Gibson City, Illinois-based One Earth Energy LLC; 99.5 percent ownership interest in Marion, South Dakota-based NuGen Energy LLC; 10.3 percent ownership interest in West Burlington, Iowa-based Big River Resources West Burlington LLC; 10.3 percent ownership interest in Galva, Illinois-based Big River Resources Galva LLC; 5.7 percent ownership interest in Dyersville, Iowa-based Big River United Energy LLC; and 10.3 percent interest in Boyceville, Wisconsin-based Rig River Resources Boyceville LLC.