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The Andersons, Inc. Reports Record Third Quarter Results
Third Quarter Earnings of $0.91 per Diluted Share
Grain, Ethanol, and Rail Groups Lead Earning Results

MAUMEE, Ohio, Nov. 6, 2013 /PRNewswire/ -- The Andersons, Inc. (NASDAQ: ANDE) today announced third quarter net income attributable to the company of $17.2 million, or $0.91 per diluted share, on revenues of $1.2 billion.  In the third quarter of 2012, the company reported results of $16.9 million, or $0.90 per diluted share, on revenues of $1.1 billion.  For the first nine months of 2013, the company earned $59.3 million, or $3.15 per diluted share, on revenues of $4.0 billion.  In the same period of 2012, The Andersons reported results of $64.5 million, or $3.43 per diluted share, on $3.6 billion of revenues.   

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

At the end of July, the company and Lansing Trade Group formed a 50/50 joint venture and acquired Thompsons Limited, a grain and food-grade bean handler/processer and agronomy input provider, headquartered in Blenheim, Ontario, and operating 12 locations across Ontario and Minnesota. 

The Grain Group had operating income of $14.3 million in the third quarter of 2013 versus $10.8 million for the same period last year.  Both space income and gross profit on sales in the third quarter were higher than the prior year.  The company's investment in Lansing Trade Group also had strong results.  Revenues for the Grain Group were $766 million and $677 million for the third quarter of 2013 and 2012, respectively.  Revenues increased due to an increase in the bushels sold, as the average price per bushel decreased.  The Grain Group's operating income for the first nine months of the year was $24.7 million on revenues of $2.5 billion.  Last year, its operating income through September was $45.5 million on revenues of $2.1 billion.  The group's 2013 results have been materially impacted by the 2012 drought.       

The Ethanol Group achieved record operating income of $10.9 million in the third quarter on revenues of $213 million.  This compares to an operating loss of $0.9 million during the same period last year on revenues of $210 million.  This income increase was primarily the result of an increase in the company's earnings from its investments in the ethanol production facilities, which benefited from higher ethanol margins.  These facilities also continue to benefit from significant income provided by co-products such as corn-oil, distillers dried grains, E-85, and CO2.  The group's operating income through September was a record $24.0 million on revenues of $635 million.  Last year, its operating loss through September was $2.9 million on revenues of $528 million.  The year to date revenue increase was due to added volume from its Denison, Iowa plant and an increase in the average price per gallon of ethanol. 

The Rail Group achieved third quarter operating income of $12.4 million on revenues of $48 million.  In the same three month period of 2012, the group earned $19.1 million and revenues were $60 million.  This quarter, the group recognized $2.2 million in gains on sales of railcars.  Last year, the group recognized $13.5 million in gains on sales of railcars and related leases and non-recourse transactions during the third quarter.  Gross profit from the leasing business increased significantly this quarter due to an increase in the average lease rate.  The group also recognized gains related to the settlement of two non-performing leases.  The average utilization rate for the quarter was 86.2 percent, which is up from 84.3 percent last year.  The group's first nine months operating income was a record $36.6 million on $132 million of revenues.  In 2012, operating income through September was $34.3 million and revenues were $128 million.  These results include gains similar to those aforementioned of $15.8 million and $22.2 million in 2013 and 2012, respectively.  In September, the company completed the acquisition of Mile Rail, LLC, a railcar repair and cleaning facility headquartered in Kansas City, Missouri, with two satellite locations in Nebraska and Indiana. 

The Plant Nutrient Group's third quarter operating loss was $1.6 million on revenues of $96 million.  In the same three month period of 2012, the group had operating income of $0.8 million on revenues of $135 million.  Margins in the third quarter were solid, but volume was down significantly as customers have only been purchasing nutrients as needed due to lower price trends and increased volatility in the market.  Some of this volume shortfall may be regained in the fourth quarter.  The group's operating income the first nine months was $21.0 million on $538 million of revenues.  Last year, its operating income through September was $34.5 million on revenues of $619 million.  Decreased revenues this year are due primarily to lower volume and to a lesser extent to lower selling prices.

The Turf & Specialty Group had an operating loss of $0.1 million in the third quarter on $28 million of revenues.  Last year, the group reported an operating loss of $1.6 million on $22 million of revenues for the same period.  Through the first nine months of 2013, the group's operating income was a record $6.1 million on $118 million of revenues.  Last year, its operating income was $3.4 million for the same period on revenues of $110 million.  

The Retail Group had an operating loss of $2.0 million in the third quarter of 2013 on revenues of $31 million.  In the comparable period last year, the group's operating loss was $1.8 million and total revenues were $35 million.  Through nine months, the group recorded a loss of $3.7 million and total revenues of $103 million.  Last year through September the group lost $3.1 million on total revenues of $110 million.

"We had a record third quarter, due the exceptional results seen in our Ethanol and Rail groups," CEO Mike Anderson stated.  "We also had good results in the Grain Group," added Mr. Anderson. "Our expectation for the last quarter of the year is that it will be comparable to results seen in 2010 and 2011.  The fourth quarter of 2012 results were tempered by the drought, which we are happy to say is behind us; we are instead in the midst of a record corn crop.  Looking back, I am proud of our employees and how they effectively managed through the 2012 drought, with good earnings," concluded Mr. Anderson.

The company will host a webcast on Thursday, November 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 September 30,

Nine months ended September 30,

(in thousands, except per share data)

2013

2012

2013

2012






Sales and merchandising revenues

$              1,181,374

$           1,138,402

$            4,020,308

$        3,591,369

Cost of sales and merchandising revenues

1,108,228

1,060,086

3,764,660

3,324,533

Gross profit

73,146

78,316

255,648

266,836

Operating, administrative and general expenses

69,193

58,029

192,665

177,339

Interest expense

5,348

5,482

16,607

16,192

Other income:





Equity in earnings of affiliates

22,177

6,027

39,991

15,406

Other income, net

7,605

3,492

11,623

9,409

Income before income taxes

28,387

24,324

97,990

98,120

Income tax provision

10,348

9,133

36,907

36,730

Net income

18,039

15,191

61,083

61,390

Net income (loss) attributable to the noncontrolling interests

878

(1,693)

1,805

(3,100)

Net income attributable to The Andersons, Inc.

$                    17,161

$                16,884

$                  59,278

$             64,490






Per common share:





Basic earnings attributable to The Andersons, Inc. common shareholders

$                        0.92

$                    0.91

$                       3.17

$                 3.47

Diluted earnings attributable to The Andersons, Inc. common shareholders

$                        0.91

$                    0.90

$                       3.15

$                 3.43

Dividends paid

$                        0.16

$                    0.15

$                       0.48

$                 0.45






 

 

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








September 30, 2013


December 31, 2012


September 30, 2012

Assets






Current assets:






Cash and cash equivalents

$               134,441


$                138,218


$                    80,370

Restricted cash

164


398


160

Accounts receivable, net

178,970


208,877


199,158

Inventories

429,017


776,677


682,292

Commodity derivative assets – current

105,390


103,105


166,264

Deferred income taxes

5,254


15,862


20,627

Other current assets

42,278


54,016


41,568

Total current assets

895,514


1,297,153


1,190,439

Other assets:






Commodity derivative assets – noncurrent

5


1,906


7,047

Other assets, net

110,731


105,129


67,801

Equity method investments

262,643


190,908


190,057


373,379


297,943


264,905

Railcar assets leased to others, net

233,024


228,330


252,702

Property, plant and equipment, net

380,374


358,878


283,394

Total assets

$            1,882,291


$             2,182,304


$               1,991,440







Liabilities and equity






Current liabilities:






Borrowings under short-term line of credit

$                           -


$                  24,219


$                  275,522

Accounts payable for grain

241,575


582,653


250,066

Other accounts payable

200,664


165,201


204,347

Customer prepayments and deferred revenue

23,974


105,410


77,278

Commodity derivative liabilities – current

88,234


33,277


43,589

Accrued expenses and other current liabilities

63,900


66,902


53,631

Current maturities of long-term debt

44,232


15,145


32,655

Total current liabilities

662,579


992,807


937,088







Other long-term liabilities

17,129


18,406


14,083

Commodity derivative liabilities – noncurrent

9,636


1,134


590

Employee benefit plan obligations

49,768


53,131


49,478

Long-term debt, less current maturities

381,018


427,243


312,404

Deferred income taxes

91,869


78,138


75,377

Total liabilities

1,211,999


1,570,859


1,389,020

Total equity

670,292


611,445


602,420

Total liabilities and equity

$            1,882,291


$             2,182,304


$               1,991,440







 

 


Grain

Ethanol

Plant Nutrient

Rail

Turf & Specialty

Retail

Other

Total

Three months ended September 30, 2013









Revenues from external customers

$              765,833

$         213,384

$    95,681

$            47,523

$      27,624

$            31,329

$—

$          1,181,374










Gross profit

27,005

4,735

13,553

13,000

6,408

8,445

73,146










Equity in earnings of affiliates

12,003

10,174

22,177










Other income, net

1,216

35

320

5,031

135

102

766

7,605










Income (loss) before income taxes

14,315

11,790

(1,643)

12,360

(83)

(2,043)

(6,309)

28,387










Income (loss) attributable to the noncontrolling interests

(8)

886

878










Operating income (loss) (a)

$                14,323

$            10,904

$     (1,643)

$            12,360

$             (83)

$            (2,043)

$            (6,309)

$                27,509










Three months ended September 30, 2012









Revenues from external customers

$                677,484

$            209,634

$    135,144

$              59,703

$        21,509

$              34,928

$—

$             1,138,402










Gross profit

21,166

3,846

15,297

22,892

5,296

9,819

78,316










Equity in earnings (loss) of affiliates

9,249

(3,224)

2

6,027










Other income, net

526

1

523

1,695

181

117

449

3,492










Income (loss) before income taxes

10,807

(2,629)

759

19,071

(1,571)

(1,769)

(344)

24,324










Loss attributable to the noncontrolling interests

(1,693)

(1,693)










Operating income (loss) (a)

$                  10,807

$                 (936)

$           759

$              19,071

$         (1,571)

$              (1,769)

$                (344)

$                  26,017











Grain

Ethanol

Plant Nutrient

Rail

Turf & Specialty

Retail

Other

Total

Nine months ended September 30, 2013









Revenues from external customers

$          2,493,678

$         634,933

$  537,922

$         132,488

$    117,955

$         103,332

$—

$          4,020,308










Gross profit

73,947

19,189

64,703

46,536

22,747

28,526

255,648










Equity in earnings of affiliates

24,940

15,051

39,991










Other income, net

1,438

465

459

6,679

585

316

1,681

11,623










Income (loss) before income taxes

24,667

25,797

21,035

36,614

6,113

(3,673)

(12,563)

97,990










Income (loss) attributable to the noncontrolling interests

(8)

1,813

1,805










Operating income (loss) (a)

$                24,675

$            23,984

$    21,035

$            36,614

$         6,113

$            (3,673)

$         (12,563)

96,185










Nine months ended September 30, 2012









Revenues from external customers

$             2,096,256

$            528,062

$    619,301

$            127,608

$      110,481

$            109,661

$—

$             3,591,369










Gross profit

80,207

8,544

78,272

47,020

20,785

32,008

266,836










Equity in earnings (loss) of affiliates

22,706

(7,305)

5

15,406










Other income, net

1,842

37

1,651

3,295

671

396

1,517

9,409










Income (loss) before income taxes

45,519

(6,020)

34,540

34,288

3,384

(3,090)

(10,501)

98,120










Loss attributable to the noncontrolling interest

(3,100)

(3,100)










Operating income (loss) (a)

$                  45,519

$              (2,920)

$      34,540

$              34,288

$          3,384

$              (3,090)

$           (10,501)

$                101,220


(a) Operating income (loss) for each Group 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) loss.










 

SOURCE The Andersons, Inc.

Investor Relations: Nick Conrad, Phone: 419-891-6415, E-mail: nick_conrad@andersonsinc.com


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