First Quarter Earnings of $0.14 per Diluted Share
MAUMEE, Ohio, May 5, 2015 /PRNewswire/ -- The Andersons,
Inc. (Nasdaq: ANDE) announces financial results for the first
quarter ended March 31, 2015.
Highlights
- Base grain pre-tax income up $6.9
million year over year
- Rail Group leasing pre-tax income up 18 percent year over
year
- Ethanol Group pre-tax income of $5.3
million despite challenged markets
- Good planting progress and higher ethanol margins point to a
good full-year outlook
"As expected we experienced a soft start to 2015, yet conditions
in the markets we serve give us optimism for the full year. During
the first quarter we delivered year-over-year improvements in our
core grain and rail leasing businesses. Additionally, our Ethanol
Group remained profitable despite reduced industry margins during
the seasonally weak first quarter," said CEO Mike Anderson. "Also, we are successfully
integrating our 2014 acquisitions which contributed more than
$1.0 million in pre-tax income for
the quarter."
Key Highlights
Net income for the first quarter of
2015 attributable to the Company was $4.1
million, or $0.14 per diluted
share. Last year net income was $22.7
million, or $0.80 per diluted
share. When excluding the partial redemption of our investment in
Lansing Trade Group last year, adjusted net income was $12.1 million, or $0.42 per diluted share. (See the
Reconciliation to Adjusted Net Income Table for a discussion and
reconciliation of income and adjusted income.) First quarter 2015
revenues were $950 million compared
to $1.0 billion in revenues the same time last year.
- The Ethanol Group achieved record first quarter ethanol
production volumes and saw E-85 sales progress to a first quarter
record as well.
- The Rail Group's utilization rate has increased for nine
consecutive quarters and averaged 91.8 percent during the
quarter.
- The Rail Group's lower pre-tax income was due to gains on
railcar sales being down $6.3 million
this quarter versus the same time last year.
- The Plant Nutrient Group experienced lower volumes than
expected this quarter due to poor weather conditions at the start
of the planting season.
- This quarter, the Company has merged the former Turf &
Specialty and Plant Nutrient groups. Going forward the group will
be known as the Plant Nutrient Group.
- The Company repurchased 631,000 of The Andersons' common shares
during the quarter which offsets the shares issued as part of the
acquisition of Auburn Bean & Grain.
Outlook
- Solid fundamentals supporting the Company's core businesses
continue into 2015.
- Corn acres to be planted in 2015 are estimated to be
approximately 89 million acres, which is down slightly from 2014.
Bean acres to be planted are estimated to be roughly 85 million
acres, which is up slightly from 2014.
- The anticipated corn acres creates a good environment for all
three of the Company's agricultural businesses.
- Lower volume experienced by the Plant Nutrient Group during the
past two quarters is expected to be substantially regained in the
second quarter provided the weather is cooperative.
- Relative to the first quarter, ethanol margins have improved
which provides optimism for the Ethanol Group's performance going
forward.
- The Rail Group is expected to have strong results as it
continues to benefit from increased lease and utilization
rates.
Conference Call
The Company will host a webcast on
Wednesday, May 6, 2015 at
11:00 A.M. ET, to discuss its
performance. To dial-in to the call, the number is
866-825-3209 (participant passcode is 28990476). It is
recommended that you call 10 minutes before the conference call
begins.
To access the webcast: Click on the link:
http://edge.media-server.com/m/p/dwpegcgm/lan/en. Log
on. Click on the phone icon at the bottom of the "webcast
window" on the left side of the screen. Then, you will be
provided with the conference call number and passcode. Click
the gear set icon (left of the telephone icon) and select 'Live
Phone' to synchronize the presentation with the audio on your
phone. A replay of the call can also be accessed under the
heading "Investor" on the Company website at
www.andersonsinc.com.
Forward Looking Statements
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.
Company Description
Founded in Maumee, Ohio, in 1947, The Andersons is a
diversified Company rooted in agriculture conducting business
across North America in the grain,
ethanol, plant nutrient and rail sectors. The Company also has a
consumer retailing presence. For more information, visit The
Andersons online at www.andersonsinc.com.
The Andersons,
Inc.
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
(in thousands, except
per share data)
|
2015
|
|
2014
|
Sales and
merchandising revenues
|
$
950,090
|
|
$
1,003,294
|
Cost of sales and
merchandising revenues
|
866,777
|
|
926,519
|
Gross
profit
|
83,313
|
|
76,775
|
Operating,
administrative and general expenses
|
78,604
|
|
70,985
|
Interest
expense
|
6,039
|
|
6,002
|
Other
income:
|
|
|
|
Equity in earnings of
affiliates
|
3,261
|
|
20,501
|
Other income,
net
|
3,107
|
|
19,612
|
Income before income
taxes
|
5,038
|
|
39,901
|
Income tax
provision
|
1,093
|
|
13,872
|
Net income
|
3,945
|
|
26,029
|
Net (loss) income
attributable to the noncontrolling interests
|
(152)
|
|
3,321
|
Net income
attributable to The Andersons, Inc.
|
$
4,097
|
|
$
22,708
|
|
|
|
|
Per common
share:
|
|
|
|
Basic earnings
attributable to The Andersons, Inc. common shareholders
|
$
0.14
|
|
$
0.80
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
0.14
|
|
$
0.80
|
Dividends
declared
|
$
0.14
|
|
$
0.11
|
|
|
|
|
The Andersons,
Inc.
|
|
|
|
Reconciliation to
Adjusted Net Income
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
(in thousands, except
per share data)
|
2015
|
|
2014
|
Net income
attributable to The Andersons, Inc.
|
$
4,097
|
|
$
22,708
|
Items impacting other
income, net:
|
|
|
|
Partial redemption of
investment in Lansing Trade Group
|
-
|
|
(10,656)
|
Total adjusting
items
|
-
|
|
(10,656)
|
Adjusted net income
attributable to The Andersons, Inc.
|
$
4,097
|
|
$
12,052
|
|
|
|
|
|
|
|
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
0.14
|
|
$
0.80
|
|
|
|
|
Impact on diluted
earnings per share
|
-
|
|
(0.38)
|
Adjusted diluted
earnings per share
|
$
0.14
|
|
$
0.42
|
|
|
|
|
The Andersons,
Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
54,461
|
|
$
114,704
|
|
$
43,693
|
Restricted
cash
|
685
|
|
429
|
|
652
|
Accounts receivable,
net
|
209,928
|
|
183,059
|
|
191,972
|
Inventories
|
743,957
|
|
795,655
|
|
725,584
|
Commodity derivative
assets – current
|
86,824
|
|
92,771
|
|
119,330
|
Deferred income
taxes
|
12,878
|
|
7,337
|
|
9,104
|
Other current
assets
|
65,017
|
|
60,492
|
|
48,214
|
Total current
assets
|
1,173,750
|
|
1,254,447
|
|
1,138,549
|
Other
assets:
|
|
|
|
|
|
Commodity derivative
assets – noncurrent
|
243
|
|
507
|
|
1,365
|
Other assets,
net
|
126,819
|
|
131,527
|
|
114,528
|
Pension
asset
|
-
|
|
-
|
|
15,079
|
Equity method
investments
|
222,082
|
|
226,857
|
|
232,396
|
|
349,144
|
|
358,891
|
|
363,368
|
Rail Group assets
leased to others, net
|
313,095
|
|
297,747
|
|
237,534
|
Property, plant and
equipment, net
|
451,638
|
|
453,607
|
|
386,132
|
Total
assets
|
$
2,287,627
|
|
$
2,364,692
|
|
$
2,125,583
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
311,660
|
|
$
2,166
|
|
$
226,100
|
Accounts payable for
grain
|
206,153
|
|
535,974
|
|
183,998
|
Other accounts
payable
|
164,224
|
|
170,849
|
|
177,623
|
Customer prepayments
and deferred revenue
|
130,254
|
|
99,617
|
|
124,981
|
Commodity derivative
liabilities – current
|
55,401
|
|
64,075
|
|
32,153
|
Accrued expenses and
other current liabilities
|
64,065
|
|
78,610
|
|
56,290
|
Current maturities of
long-term debt
|
19,037
|
|
76,415
|
|
90,760
|
Total current
liabilities
|
950,794
|
|
1,027,706
|
|
891,905
|
|
|
|
|
|
|
Other long-term
liabilities
|
14,871
|
|
15,507
|
|
14,749
|
Commodity derivative
liabilities – noncurrent
|
2,084
|
|
3,318
|
|
734
|
Employee benefit plan
obligations
|
59,557
|
|
59,308
|
|
39,989
|
Long-term debt, less
current maturities
|
323,258
|
|
298,638
|
|
306,161
|
Deferred income
taxes
|
139,145
|
|
136,166
|
|
128,716
|
Total
liabilities
|
1,489,709
|
|
1,540,643
|
|
1,382,254
|
Total
equity
|
797,918
|
|
824,049
|
|
743,329
|
Total liabilities and
equity
|
$
2,287,627
|
|
$
2,364,692
|
|
$
2,125,583
|
|
|
|
|
|
|
The Andersons,
Inc.
|
Segment
Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Grain
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Retail
|
|
Other
|
|
Total
|
Three months ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
585,162
|
|
$
138,180
|
|
$
153,951
|
|
$
44,216
|
|
$
28,581
|
|
$
—
|
|
$
950,090
|
Gross
profit
|
29,725
|
|
6,286
|
|
21,966
|
|
17,322
|
|
8,014
|
|
—
|
|
83,313
|
Equity in earnings of
affiliates
|
1,549
|
|
1,712
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,261
|
Other income,
net
|
833
|
|
42
|
|
1,035
|
|
839
|
|
97
|
|
261
|
|
3,107
|
Income (loss) before
income taxes
|
740
|
|
5,131
|
|
424
|
|
10,313
|
|
(2,183)
|
|
(9,387)
|
|
5,038
|
Loss attributable to
the noncontrolling interests
|
(3)
|
|
(149)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(152)
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
743
|
|
$
5,280
|
|
$
424
|
|
$
10,313
|
|
$
(2,183)
|
|
$
(9,387)
|
|
$
5,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
583,159
|
|
$
188,820
|
|
$
151,355
|
|
$
52,302
|
|
$
27,658
|
|
$
—
|
|
$
1,003,294
|
Gross
profit
|
17,008
|
|
7,365
|
|
22,550
|
|
21,865
|
|
7,987
|
|
—
|
|
76,775
|
Equity in earnings of
affiliates
|
1,884
|
|
18,617
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20,501
|
Other income
(expense), net
|
18,346
|
|
(226)
|
|
492
|
|
710
|
|
112
|
|
178
|
|
19,612
|
Income (loss) before
income taxes
|
11,303
|
|
23,148
|
|
(36)
|
|
15,045
|
|
(2,335)
|
|
(7,224)
|
|
39,901
|
Income (loss)
attributable to the noncontrolling interest
|
(3)
|
|
3,324
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,321
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
11,306
|
|
$
19,824
|
|
$
(36)
|
|
$
15,045
|
|
$
(2,335)
|
|
$
(7,224)
|
|
$
36,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Income (loss)
before income taxes attributable to The Andersons, Inc. 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).
|
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SOURCE The Andersons, Inc.