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.