news releases        events calendar        conference calls        presentations
News Release

Printer Friendly Version Print version
The Andersons, Inc. Reports Fourth Quarter & Full Year Results
Record Full Year Earnings of $5.09 per Diluted Share
Earnings Led by Grain, Ethanol and Plant Nutrient Groups

MAUMEE, Ohio, Feb. 8, 2012 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced record net income attributable to the company of $95.1 million, or $5.09 per diluted share, on revenues of $4.6 billion.  In the prior year, the company earned $64.7 million, or $3.48 per diluted share, and total revenues were $3.4 billion.  The company earned $21.7 million in the fourth quarter of 2011, or $1.17 per diluted share, on revenues of $1.3 billion.  In the same three month period of 2010, the company reported income of $25.8 million, or $1.39 per diluted share, on revenues of $1.2 billion.  The majority of the year to year revenue increase relates to rising prices in its agricultural businesses.  It is important to remember that revenues in commodity-based businesses may not serve as good indicators of income or economic performance.  

(Logo:  http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO )

The Grain Group's 2011 operating income was a record $87.3 million.  This compares to operating income of $64.4 million in 2010.  The group achieved this performance due primarily to significant space income, which was impacted by substantial wheat basis appreciation and spread gains.  Additionally, Lansing Trade Group had its best ever annual performance.  Total revenues for the Grain Group were $2.8 billion and $1.9 billion in 2011 and 2010, respectively.  Revenues increased significantly due to higher grain prices.  For the fourth quarter, the group's operating income was $27.3 million on revenues of $876 million.  In the same three month period of 2010, the group had income of $35.6 million on revenue of $785 million.  For the quarter, the grain business benefited from strong space income, the reversal of a $3.2 million bad debt reserve and solid performance by Lansing Trade Group.  

The Ethanol Group achieved an operating income of $23.3 million in 2011.  This compares to $17.0 million in the prior year.  The higher income is the result of an increase in the company's earnings from its investment in three ethanol limited liability companies.  The ethanol plants have continued to maximize efficiency; additionally the plants have invested further in corn oil, E-85, and CO2, which have proven to be profitable business additions.  Total revenues for the year were $642 million.  In comparison, the group's revenues for the prior year were $469 million.  Revenues increased primarily due to higher ethanol prices.  The group's fourth quarter operating income was $6.5 million on revenues of $165 million.  During the same three month period of 2010, its operating income was $3.0 million on revenues of $128 million.

The Plant Nutrient Group ended the year with record operating income of $38.3 million due primarily to an increase in margin resulting mainly from nutrient price appreciation and to a lesser degree from product mix.  In 2010, the group had an operating income of $30.1 million.  Revenues for 2011 and 2010 were $691 million and $619 million, respectively.  Revenues increased in 2011 due to higher nutrient prices, which were partially offset by a decrease in volume.  For the fourth quarter, the group's operating income was $2.5 million on $170 million of revenues.  Last year the group had operating income of $8.9 million during the same three month period on revenues of $159 million.  The income decline in the fourth quarter includes $4.7 million of charges due to the recording of a lower of cost or market inventory adjustment and asset impairment charges.  

The Rail Group had operating income of $9.8 million in 2011, a significant improvement over its $0.1 million income in 2010.  Gross profit from the leasing business was significantly higher than the prior year due mainly to higher utilization and lease rates.  The full year results include gains on sales of railcars and related leases of $8.4 million and $5.5 million in 2011 and 2010, respectively.  The average utilization rate for 2011 was 84.6 percent, which was up from the prior year average of 73.6 percent.  Revenues of $107 million for 2011 were higher than the $95 million reported in the prior year.  The Rail Group had an operating income of $2.3 million in the fourth quarter on revenues of $25 million.  In 2010, the operating loss for the same three month period was $1.1 million on revenues of $22 million.

The Turf & Specialty Group's full year operating income was $2.0 million on revenues of $130 million.  In 2010, the group had operating income of $3.4 million, and total revenues were $124 million.  The group incurred an operating loss of $1.8 million in the fourth quarter on revenues of $18 million.  Last year, its operating loss for the same period was $1.4 million on similar revenues.    

The Retail Group had an operating loss of $1.5 million in 2011.  In the prior year, the group's operating loss was $2.5 million.  Total sales for the group were $158 million in 2011, or 5 percent above the prior year total of $151 million.  The Retail Group's fourth quarter operating income was $0.5 million on revenues of $45 million.  Last year, during the same three month period, the operating loss was $0.1 million and total revenues were $43 million.  

"Clearly, both our full year and fourth quarter earnings were heavily influenced by the results within our agricultural businesses.  The record full year earnings in both our Grain and Plant Nutrient groups, and second best year in the Ethanol Group, is gratifying," CEO Mike Anderson stated.  "Our 2011 Rail Group results improved significantly from the prior year as a result of improved economic conditions."  Mr. Anderson added, "In the last year we have demonstrated our commitment to growth by adding 1.7 million bushels of grain storage capacity, beginning construction on a grain shuttle loader facility in Nebraska, and acquiring two businesses in the Plant Nutrient Group – Immokalee Farmer Supply in Florida in October of 2011, and New Eezy Gro, an Ohio based company, last week.  We intend to continue to pursue our growth strategy in 2012 and beyond."

The company will host a webcast on Thursday, February 9, 2012 at 11:00 A.M. ET, to discuss its performance.  This can be accessed under the heading "Investor" on its website at www.andersonsinc.com.

The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing.  Founded in Maumee, Ohio, in 1947, the company now has operations across the United States, in Puerto Rico, and has rail equipment leasing interests in Canada and Mexico.

This release contains forward-looking statements.  These statements involve risks and uncertainties that could cause actual results to differ materially.  Without limitation, these risks include economic, weather and regulatory conditions, competition, and the risk factors set forth from time to time in the Company's filings with the Securities and Exchange Commission.  Although the Company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

The Andersons, Inc. is located on the Internet at www.andersonsinc.com

FINANCIAL TABLES FOLLOW . . .

The Andersons, Inc.





Consolidated Statements of Income





(Unaudited)






Three months ended

Twelve months ended


December 31,

December 31,

(in thousands, except per share data)

2011

2010

2011

2010






Sales and merchandising revenues

$          1,297,830

$            1,153,969

$          4,576,331

$            3,393,791

Cost of sales and merchandising revenues

1,211,399

1,071,503

4,223,479

3,112,112

Gross profit

86,431

82,466

352,852

281,679






Operating, administrative and general expenses

63,167

48,677

229,090

195,330

Interest expense

4,647

5,942

25,256

19,865

Other income:





 Equity in earnings of affiliates

11,961

10,531

41,450

26,007

 Other income, net

2,381

2,556

7,922

11,652

Income before income taxes

32,959

40,934

147,878

104,143

Income tax provision

10,788

14,856

51,053

39,262

Net income

22,171

26,078

96,825

64,881

 Net income attributable to the noncontrolling interest

474

244

1,719

219

Net income attributable to The Andersons, Inc.

$               21,697

$                 25,834

$               95,106

$                 64,662






Per common share:





     Basic earnings attributable to The Andersons, Inc. common shareholders

$                   1.17

$                     1.40

$                   5.13

$                     3.51

     Diluted earnings attributable to The Andersons, Inc. common shareholders

$                   1.17

$                     1.39

$                   5.09

$                     3.48

     Dividends paid

$               0.1100

$                 0.0900

$               0.4400

$                 0.3575



The Andersons, Inc.  

Consolidated Balance Sheets

(Unaudited)



December 31,

December 31,

(in thousands)

2011

2010




Assets



Current assets:



 Cash and cash equivalents

$                20,390

$                29,219

 Restricted cash

18,651

12,134

 Accounts receivable, net

167,640

152,227

 Inventories

760,459

647,189

 Commodity derivative assets - current

83,950

246,475

 Other current assets

56,132

51,314

Total current assets

1,107,222

1,138,558




Investments and other assets

252,388

223,204

Commodity derivative assets - noncurrent

2,289

18,113

Railcar assets leased to others, net

197,137

168,483

Property, plant and equipment, net

175,087

151,032

Total assets

$           1,734,123

$           1,699,390




Liabilities and shareholders' equity



Current liabilities:



 Borrowings under short-term line of credit

$                71,500

$              241,100

 Commodity derivative liabilities - current

15,874

57,621

 Other current liabilities

706,877

538,022

Total current liabilities

794,251

836,743




Deferred items and other long-term liabilities

160,626

117,984

Commodity derivative liabilities - noncurrent

1,519

3,279

Long-term debt, less current maturities

238,885

276,825

Total equity

538,842

464,559

Total liabilities and equity

$           1,734,123

$           1,699,390



Segment Data





















Plant


Turf &





Grain  

Ethanol

Nutrient

Rail

Specialty

Retail

Other

Total

Quarter ended December 31, 2011









Revenues from external customers

$       875,538

$       164,763

$          169,522

$       24,981

$            17,844

$            45,182

$         -

$    1,297,830










Gross profit

40,084

2,649

18,882

6,038

5,777

13,001

-

86,431










Equity in earnings (loss) of affiliates

5,631

6,349

(19)

-

-

-

-

11,961










Other income, net

708

26

163

668

164

208

444

2,381










Income (loss) before income taxes

27,333

6,974

2,454

2,346

(1,811)

500

(4,837)

32,959










Income attributable to the noncontrolling interest

-

474

-

-

-

-

-

474










Operating income (loss) (a)

27,333

6,500

2,454

2,346

(1,811)

500

(4,837)

32,485










Quarter ended December 31, 2010









Revenues from external customers

$       784,829

$       127,809

$          158,659

$       22,177

$            17,578

$            42,917

$         -

$    1,153,969










Gross profit

37,388

3,724

21,752

2,449

5,248

11,905

-

82,466










Equity in earnings of affiliates

8,779

1,749

3

-

-

-

-

10,531










Other income, net

639

88

432

412

297

204

484

2,556










Income (loss) before income taxes

35,583

3,254

8,864

(1,118)

(1,416)

(134)

(4,099)

40,934










Income attributable to the noncontrolling interest

-

244

-

-

-

-

-

244










Operating income (loss) (a)

35,583

3,010

8,864

(1,118)

(1,416)

(134)

(4,099)

40,690




























Twelve months ended December 31, 2011









Revenues from external customers

$    2,849,358

$       641,546

$          690,631

$     107,459

$          129,716

$          157,621

$         -

$    4,576,331










Gross profit

143,613

15,022

97,194

24,750

26,235

46,038

-

352,852










Equity in earnings (loss) of affiliates

23,748

17,715

(13)

-

-

-

-

41,450










Other income, net

2,462

159

704

2,866

880

638

213

7,922










Income (loss) before income taxes

87,288

25,063

38,267

9,778

2,000

(1,520)

(12,998)

147,878










Income attributable to the noncontrolling interest

-

1,719

-

-

-

-

-

1,719










Operating income (loss) (a)

87,288

23,344

38,267

9,778

2,000

(1,520)

(12,998)

146,159










Twelve months ended December 31, 2010









Revenues from external customers

$    1,936,813

$       468,639

$          619,330

$       94,816

$          123,549

$          150,644

$         -

$    3,393,791










Gross profit

103,716

14,774

79,537

13,379

26,937

43,336

-

281,679










Equity in earnings of affiliates

15,648

10,351

8

-

-

-

-

26,007










Other income, net

2,557

176

1,298

4,502

1,335

608

1,176

11,652










Income (loss) before income taxes

64,374

17,232

30,062

107

3,443

(2,534)

(8,541)

104,143










Income attributable to the noncontrolling interest

-

219

-

-

-

-

-

(219)










Operating income (loss) (a)

64,374

17,013

30,062

107

3,443

(2,534)

(8,541)

103,924





































(a) Operating income (loss) for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.



SOURCE The Andersons, Inc.

Nicholas C. Conrad, VP, Finance & Treasurer, +1-419-891-6415, nick_conrad@andersonsinc.com


Print Page Print Page | E-mail Page E-mail Page | RSS Feeds RSS Feeds | E-mail Alerts E-mail Alerts | IR Contacts IR Contacts