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The Andersons, Inc. Reports Fourth Quarter & Full Year Results
Full Year Earnings of $4.23 per Diluted Share
Rail and Plant Nutrient Groups set New Records

MAUMEE, Ohio, Feb. 6, 2013 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced net income attributable to the company of $79.5 million, or $4.23 per diluted share, on revenues of $5.3 billion. The company had a strong year, surpassed only by the prior year in which it earned $95.1 million, or $5.09 per diluted share, on revenues of $4.6 billion. The company earned $15.0 million in the fourth quarter of 2012, or $0.80 per diluted share, on revenues of $1.7 billion. In the same three month period of 2011, the company reported net income of $21.7 million, or $1.17 per diluted share, on revenues of $1.3 billion. The majority of the year to year revenue increase relates to rising volume and prices, and growth, in the agricultural businesses.

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

The Rail Group achieved record operating income of $42.8 million in 2012, a significant improvement over its $9.8 million 2011 operating income. Gross profit from the leasing business was significantly higher than the prior year due mainly to higher lease rates, as overall utilization rate for both years was consistent at 84.6 percent. The group recognized $23.7 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions (where the company continues to provide car management services to the purchaser and typically holds an option to purchase the railcars at the end of the assigned lease). In 2011, the company recognized gains of $8.4 million on similar transactions. Revenues of $156 million for 2012 were higher than the $107 million reported in the prior year due mainly to increased car sales and higher lease rates. The rail fleet increased by over 600 cars in 2012, to approximately 23,300 cars. The Rail Group had operating income of $8.6 million in the fourth quarter on revenues of $29 million. In 2011, operating income for the same three month period was $2.3 million on revenues of $25 million. These results include gains on sales of railcars and related leases and non-recourse transactions of $1.5 million and $0.7 million in 2012 and 2011, respectively.

The Plant Nutrient Group had record operating income of $39.3 million in 2012, surpassing 2011 earnings by $1.0 million. Revenues for 2012 and 2011 were $797 million and $691 million, respectively. While margins declined in 2012, both income and revenues increased due to higher volume. For the fourth quarter, the group's operating income was $4.7 million on $178 million of revenues. Last year the group had operating income of $2.5 million during the same three month period on revenues of $170 million. Increased operating income in the quarter was due to higher volume as favorable weather patterns increased nutrient application.

The Grain Group's 2012 operating income was $63.6 million, compared to operating income of $87.3 million in the prior year. The group had considerably lower space income in 2012, as a result of the drought, but an increase in bushels sold. In 2011, the group benefited from significant escalation in wheat basis. Lansing Trade Group contributed strongly to the Grain Group's result with its best ever annual performance. Total revenues for the Grain Group were $3.3 billion and $2.8 billion in 2012 and 2011, respectively. Revenues increased due to greater sales volume and higher grain prices. For the fourth quarter, the group's operating income was $18.1 million on revenues of $1.2 billion. In the same three month period of 2011, the group had operating income of $27.3 million on revenues of $876 million. The group acquired the majority of the Green Plains Grain Company assets, on December 3, 2012. The acquisition included seven facilities in Iowa and five in Tennessee, with grain storage capacity of approximately 32 million bushels. The Grain Group's storage capacity increased nearly 30 percent, and 30,000 tons of fertilizer storage was added as well.

The Ethanol Group had an operating loss of $3.7 million in 2012, compared to operating income of $23.3 million in the prior year. The operating income decline was due to significantly lower ethanol margins resulting from weak gasoline demand, an oversupply of ethanol, and high corn costs caused by last year's drought. The ethanol plants, however, continue to benefit from co-product sales of corn oil, E-85, Distillers Dried Grains and CO2. Total 2012 revenues were $743 million, up from $642 million in 2011. Revenues increased due to an increase in volume, the majority of which was due to the addition of the Denison, Iowa, facility in 2012. The group's fourth quarter operating loss was $0.8 million on revenues of $215 million. During the same three month period of 2011, operating income was $6.5 million on revenues of $165 million.

The Turf & Specialty Group's full year operating income was $2.2 million on revenues of $131 million. In 2011, the group had operating income of $2.0 million, and total revenues were $130 million. The group incurred an operating loss of $1.2 million in the fourth quarter on revenues of $21 million. Last year, operating loss for the same period was $1.8 million on revenues of $18 million. During the quarter, the group acquired the Mt. Pulaski cob business, which approximately doubled the production capacity of the Cob Division.

The Retail Group had an operating loss of $4.0 million in 2012, which included charges associated with closing its Woodville store. In the prior year, the group's operating loss was $1.5 million. Total 2012 sales for the group were $151 million, compared to sales of $158 million in the prior year. The Retail Group's fourth quarter operating income was a loss of $0.9 million on revenues of $41 million. Last year, during the same three month period, the group's operating income was $0.5 million and total revenues were $45 million.

"This is definitely one of those years where our purposeful diversification paid off," CEO Mike Anderson stated. "The Rail Group had its best year ever, due to skillful management of its railcar portfolio. Similarly, our Plant Nutrient Group had its second record year in a row even though margins decreased, as they increased sales volume and prudently managed their inventory. Our Grain Group also had good results, in part due to the record earnings of Lansing Trade Group, even though there were unfavorable impacts caused by the drought," Mr. Anderson added. "In the last year we demonstrated our commitment to growth by acquiring New Eezy Grow, Inc., Denison, Mt. Pulaski, and the majority of the assets of the Green Plains Grain Company. We also opened our Anselmo, Nebraska grain elevator in August and look forward to opening a new railcar blast and paint facility this spring. As we have in the past, we will continue to focus on long term earnings growth."

The company will host a webcast on Thursday, February 7, 2013 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 rooted in agriculture. Founded in Maumee, Ohio, in 1947, the company conducts business across North America in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing.

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) 2012 2011 2012 2011





Sales and merchandising revenues $ 1,680,641 $ 1,297,830 $ 5,272,010 $ 4,576,331
Cost of sales and merchandising revenues 1,589,472 1,211,399 4,914,005 4,223,479
Gross profit 91,169 86,431 358,005 352,852
Operating, administrative and general expenses 69,590 63,167 246,929 229,090
Interest expense 5,963 4,647 22,155 25,256
Other income:



Equity in earnings of affiliates 1,081 11,961 16,487 41,450
Other income, net 5,316 2,381 14,725 7,922
Income before income taxes 22,013 32,959 120,133 147,878
Income tax provision 7,838 10,788 44,568 51,053
Net income 14,175 22,171 75,565 96,825
Net income (loss) attributable to the noncontrolling interests (815) 474 (3,915) 1,719
Net income attributable to The Andersons, Inc. $ 14,990 $ 21,697 $ 79,480 $ 95,106





Per common share:



Basic earnings attributable to The Andersons, Inc. common shareholders $ 0.80 $ 1.17 $ 4.27 $ 5.13

Diluted earnings attributable to The Andersons, Inc. common shareholders

$ 0.80 $ 1.17 $ 4.23 $ 5.09
Dividends paid $ 0.1500 $ 0.1100 $ 0.6000 $ 0.4400





The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)(In thousands)


December 31, 2012
December 31, 2011
Assets


Current assets:


Cash and cash equivalents $ 138,218
$ 20,390
Restricted cash 398
18,651
Accounts receivable, net 208,877
167,640
Inventories 776,677
760,459
Commodity derivative assets - current 103,105
83,950
Deferred income taxes 15,862
21,483
Other current assets 54,016
34,649
Total current assets 1,297,153
1,107,222
Other assets:


Commodity derivative assets - noncurrent 1,906
2,289
Other assets, net (Note 1) 105,129
53,327
Equity method investments 190,908
199,061

297,943
254,677
Railcar assets leased to others, net 228,330
197,137
Property, plant and equipment, net 358,878
175,087
Total assets $ 2,182,304
$ 1,734,123




Liabilities and equity


Current liabilities:


Borrowings under short-term line of credit $ 24,219
$ 71,500
Accounts payable for grain 584,171
391,905
Other accounts payable 169,867
142,762
Customer prepayments and deferred revenue 99,164
79,557
Commodity derivative liabilities - current 33,277
15,874
Accrued expenses and other current liabilities 66,964
60,445
Current maturities of long-term debt 15,145
32,208
Total current liabilities 992,807
794,251




Other long-term liabilities 18,406
43,014
Commodity derivative liabilities - noncurrent 1,134
1,519
Employee benefit plan obligations 53,131
52,972
Long-term debt, less current maturities 427,243
238,885
Deferred income taxes (Note 1) 78,138
64,640
Total liabilities 1,570,859
1,195,281
Total equity (Note 1) 611,445
538,842
Total liabilities and equity $ 2,182,304
$ 1,734,123








Note 1 - Other assets, net includes the investment in cumulative convertible preferred shares of Iowa Northern Railway Corporation, which is carried at estimated fair value. The annual valuation has not yet been finalized, and therefore the other assets, net line item within the Consolidated Balance Sheets, along with deferred income taxes and accumulated other comprehensive income (a component of equity) may be subject to change prior to issuance of the audited Consolidated Financial Statements.

Segment Data



















Plant
Turf &



Grain Ethanol Nutrient Rail Specialty Retail Other Total
Three months ended December 31, 2012







Revenues from external customers $ 1,197,376 $ 214,867 $ 177,732 $ 28,818 $ 20,545 $ 41,303 $ - $ 1,680,641









Gross profit 36,973 6,129 19,980 9,709 6,241 12,137 - 91,169









Equity in earnings (loss) of affiliates 6,374 (5,293) - - - - - 1,081









Other income, net 706 16 266 3,841 113 158 216 5,316









Income (loss) before income taxes 18,078 (1,615) 4,714 8,553 (1,168) (861) (5,688) 22,013









Loss attributable to the noncontrolling interests - (815) - - - - - (815)









Operating income (loss) (a) $ 18,078 $ (800) $ 4,714 $ 8,553 $ (1,168) $ (861) $ (5,688) $ 22,828









Three months 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



























Twelve months ended December 31, 2012







Revenues from external customers $ 3,293,632 $ 742,929 $ 797,033 $ 156,426 $ 131,026 $ 150,964 $ - $ 5,272,010









Gross profit 117,180 14,673 98,252 56,729 27,026 44,145 - 358,005









Equity in earnings (loss) of affiliates 29,080 (12,598) 5 - - - - 16,487









Other income, net 2,548 53 1,917 7,136 784 554 1,733 14,725









Income (loss) before income taxes 63,597 (7,635) 39,254 42,841 2,216 (3,951) (16,189) 120,133









Loss attributable to the noncontrolling interests - (3,915) - - - - - (3,915)









Operating income (loss) (a) $ 63,597 $ (3,720) $ 39,254 $ 42,841 $ 2,216 $ (3,951) $ (16,189) $ 124,048









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


















(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.

Investor Relations Contact: Nick Conrad, +1-419-891-6415, nick_conrad@andersonsinc.com


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