MAUMEE, Ohio, Aug. 6, 2014 /CNW/ -- The Andersons, Inc.
(Nasdaq: ANDE) today announced financial results for the second
quarter ended June 30, 2014.
Highlights
- Record operating income of $33.9
million for the Ethanol Group
- Second quarter diluted EPS up almost 50 percent from same
period last year
- Plant Nutrient Group had operating income of $25.0 million
"We're pleased with our first half performance for 2014, which
is a record," said CEO Mike
Anderson. "Both our Ethanol and Plant Nutrient groups had
strong results this quarter. In fact, our Ethanol Group had
the best quarter in its history. In addition, our Grain
Group's operating income benefitted from improved space income in
our grain operations, and the addition of income from the Thompsons
Limited joint venture."
All financial and operating highlights below are quarterly data
compared to the same period of the prior year, unless otherwise
noted.
Financial Highlights
Second quarter net income attributable to the company was
$44.3 million, or $1.56 per diluted share, on revenues of
$1.3 billion. In the same three
month period of 2013, the company reported results of $29.5 million, or $1.05 per diluted share, on revenues of
$1.6 billion.
- The Ethanol Group realized excellent margins at all plants.
These margins were supported primarily by ongoing increases in
export demand, lower corn prices and excellent operating metrics.
The Ethanol Group had record E-85 sales and an increase in
distillers dried grains and corn oil sales.
- The Plant Nutrient Group exceeded its prior year six-month
earnings performance.
- The Rail Group recognized $2.5
million in pre-tax gains on sales of railcars and related
leases and non-recourse transactions during the quarter, which is
approximately $2.4 million less than
the prior year.
Operating Highlights
The following highlights have impacted reported results, or may
impact future results:
- Crop conditions in the majority of our territories are
ideal. Continued good weather provides the potential for
record corn and soybean yields.
- The Ethanol Group had record ethanol production.
- At this time, we have approximately 75 percent of the third
quarter and 33 percent of the fourth quarter ethanol futures risk
hedged. The majority of those hedges were placed in the first
quarter, consistent with our strategy to lock-in reasonable forward
returns when available in the market. Other hedges were added
in the second quarter, consistent with our risk management
strategy. We currently are managing margins in the spot
market for the rest of our production.
- Volume for the Plant Nutrient Group was up approximately six
percent during the first half of the year, regaining all of the
first quarter volume reduction. Further, gross profit per ton
increased slightly.
- At the end of June, the Rail Group's utilization rate was 89.1
percent, up from 86.1 percent the prior year. Further, the
utilization rate is expected to increase as the year
progresses.
Conference Call
The company will host a webcast on
Thursday, August 7, 2014 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.
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
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. The
Andersons, Inc. is located on the Internet at
www.andersonsinc.com
The Andersons,
Inc.
|
|
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|
Consolidated
Statements of Income
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Three months ended
June 30,
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Six months ended
June 30,
|
(in thousands, except
per share data)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Sales and
merchandising revenues
|
$
1,312,082
|
|
$
1,566,964
|
|
$
2,315,376
|
|
$
2,838,934
|
Cost of sales and
merchandising revenues
|
1,190,587
|
|
1,463,735
|
|
2,117,106
|
|
2,656,432
|
Gross
profit
|
121,495
|
|
103,229
|
|
198,270
|
|
182,502
|
Operating,
administrative and general expenses
|
76,275
|
|
61,464
|
|
147,260
|
|
123,472
|
Interest
expense
|
6,146
|
|
4,855
|
|
12,148
|
|
11,259
|
Other
income:
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
32,213
|
|
10,010
|
|
52,714
|
|
17,814
|
Other income,
net
|
3,797
|
|
1,292
|
|
23,409
|
|
4,018
|
Income before income
taxes
|
75,084
|
|
48,212
|
|
114,985
|
|
69,603
|
Income tax
provision
|
25,714
|
|
17,480
|
|
39,586
|
|
26,559
|
Net income
|
49,370
|
|
30,732
|
|
75,399
|
|
43,044
|
Net income
attributable to the noncontrolling interests
|
5,069
|
|
1,193
|
|
8,390
|
|
927
|
Net income
attributable to The Andersons, Inc.
|
$
44,301
|
|
$
29,539
|
|
$
67,009
|
|
$
42,117
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|
|
|
|
|
|
|
|
Per common
share:
|
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|
|
|
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|
|
Basic earnings
attributable to The Andersons, Inc. common shareholders
|
$
1.56
|
|
$
1.05
|
|
$
2.36
|
|
$
1.50
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
1.56
|
|
$
1.05
|
|
$
2.36
|
|
$
1.49
|
Dividends
paid
|
$
0.1100
|
|
$
0.1067
|
|
$
0.2200
|
|
$
0.2133
|
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The Andersons,
Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
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|
(In
thousands)
|
June 30,
2014
|
|
December 31,
2013
|
|
June 30,
2013
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
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|
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Cash and cash
equivalents
|
$
47,190
|
|
$
309,085
|
|
$
75,920
|
|
Restricted
cash
|
895
|
|
408
|
|
872
|
|
Accounts receivable,
net
|
189,646
|
|
173,930
|
|
216,432
|
|
Inventories
|
432,996
|
|
614,923
|
|
444,523
|
|
Commodity derivative
assets – current
|
162,427
|
|
71,319
|
|
121,789
|
|
Deferred income
taxes
|
7,443
|
|
4,931
|
|
2,797
|
|
Other current
assets
|
24,596
|
|
47,188
|
|
44,936
|
|
Total current
assets
|
865,193
|
|
1,221,784
|
|
907,269
|
|
Other
assets:
|
|
|
|
|
|
|
Commodity derivative
assets – noncurrent
|
312
|
|
246
|
|
87
|
|
Other assets,
net
|
116,985
|
|
118,010
|
|
103,781
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|
Pension
asset
|
13,023
|
|
14,328
|
|
-
|
|
Equity method
investments
|
264,381
|
|
291,109
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|
195,241
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|
|
394,701
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|
423,693
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|
299,109
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|
Railcar assets leased
to others, net
|
242,147
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|
240,621
|
|
242,887
|
|
Property, plant and
equipment, net
|
390,587
|
|
387,458
|
|
371,716
|
|
Total
assets
|
$
1,892,628
|
|
$
2,273,556
|
|
$
1,820,981
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
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|
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|
Current
liabilities:
|
|
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|
|
|
|
Borrowings under
short-term line of credit
|
$
27,000
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|
$
-
|
|
$
50,000
|
|
Accounts payable for
grain
|
164,230
|
|
592,183
|
|
178,017
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|
Other accounts
payable
|
143,535
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|
154,599
|
|
183,971
|
|
Customer prepayments
and deferred revenue
|
21,670
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|
59,304
|
|
25,621
|
|
Commodity derivative
liabilities – current
|
86,134
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|
63,954
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|
58,183
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|
Accrued expenses and
other current liabilities
|
81,260
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|
70,295
|
|
57,456
|
|
Current maturities of
long-term debt
|
89,387
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|
51,998
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|
45,096
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|
Total current
liabilities
|
613,216
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|
992,333
|
|
598,344
|
|
|
|
|
|
|
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Other long-term
liabilities
|
15,032
|
|
15,386
|
|
15,634
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|
Commodity derivative
liabilities – noncurrent
|
7,444
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|
6,644
|
|
5,863
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|
Employee benefit plan
obligations
|
39,178
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|
39,477
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|
50,754
|
|
Long-term debt, less
current maturities
|
300,220
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|
375,213
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|
409,020
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|
Deferred income
taxes
|
126,258
|
|
120,082
|
|
87,486
|
|
Total
liabilities
|
1,101,348
|
|
1,549,135
|
|
1,167,101
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|
Total
equity
|
791,280
|
|
724,421
|
|
653,880
|
|
Total liabilities and
equity
|
$
1,892,628
|
|
$
2,273,556
|
|
$
1,820,981
|
|
|
|
|
|
|
|
|
Segment
Data
|
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(In
thousands)
|
Grain
|
Ethanol
|
Plant
Nutrient
|
Rail
|
Turf &
Specialty
|
Retail
|
Other
|
Total
|
Three months ended
June 30, 2014
|
|
|
|
|
|
|
|
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Revenues from
external customers
|
$
656,004
|
$ 226,388
|
$ 311,895
|
$ 33,409
|
$
42,913
|
$ 41,473
|
$
—
|
$ 1,312,082
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
27,909
|
18,638
|
40,733
|
13,863
|
7,805
|
12,547
|
—
|
121,495
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
8,467
|
23,746
|
—
|
—
|
—
|
—
|
—
|
32,213
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
975
|
356
|
391
|
787
|
467
|
190
|
631
|
3,797
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
10,352
|
38,976
|
25,004
|
6,684
|
1,998
|
1,637
|
(9,567)
|
75,084
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interests
|
(3)
|
5,072
|
—
|
—
|
—
|
—
|
—
|
5,069
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (a)
|
$
10,355
|
$ 33,904
|
$ 25,004
|
$ 6,684
|
$
1,998
|
$ 1,637
|
$ (9,567)
|
$
70,015
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2013
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
891,350
|
$ 222,240
|
$ 330,339
|
$ 38,601
|
$
43,144
|
$ 41,290
|
$
—
|
$ 1,566,964
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
22,092
|
9,649
|
37,201
|
14,557
|
7,321
|
12,409
|
—
|
103,229
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
5,027
|
4,983
|
—
|
—
|
—
|
—
|
—
|
10,010
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
(349)
|
199
|
164
|
702
|
175
|
100
|
301
|
1,292
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
2,053
|
11,794
|
23,240
|
9,680
|
2,195
|
1,539
|
(2,289)
|
48,212
|
|
|
|
|
|
|
|
|
|
Income attributable
to the noncontrolling interest
|
—
|
1,193
|
—
|
—
|
—
|
—
|
—
|
1,193
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (a)
|
$
2,053
|
$ 10,601
|
$ 23,240
|
$ 9,680
|
$
2,195
|
$ 1,539
|
$ (2,289)
|
$
47,019
|
|
|
|
|
|
|
|
|
|
|
Grain
|
Ethanol
|
Plant
Nutrient
|
Rail
|
Turf &
Specialty
|
Retail
|
Other
|
Total
|
Six months ended
June 30, 2014
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$ 1,239,163
|
$ 415,208
|
$ 419,525
|
$ 85,711
|
$
86,638
|
$ 69,131
|
$
—
|
$ 2,315,376
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
44,917
|
26,003
|
54,808
|
35,728
|
16,280
|
20,534
|
—
|
198,270
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
10,351
|
42,363
|
—
|
—
|
—
|
—
|
—
|
52,714
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
19,321
|
130
|
576
|
1,497
|
774
|
302
|
809
|
23,409
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
21,655
|
62,124
|
23,593
|
21,729
|
3,373
|
(698)
|
(16,791)
|
114,985
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interests
|
(6)
|
8,396
|
—
|
—
|
—
|
—
|
—
|
8,390
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (a)
|
$
21,661
|
$ 53,728
|
$ 23,593
|
$ 21,729
|
$
3,373
|
$
(698)
|
$ (16,791)
|
$
106,595
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2013
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$ 1,727,845
|
$ 421,549
|
$ 442,241
|
$ 84,965
|
$
90,331
|
$ 72,003
|
$
—
|
$ 2,838,934
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
46,942
|
14,454
|
51,150
|
33,536
|
16,339
|
20,081
|
—
|
182,502
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
12,937
|
4,877
|
—
|
—
|
—
|
—
|
—
|
17,814
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
222
|
430
|
139
|
1,648
|
450
|
214
|
915
|
4,018
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
10,352
|
14,007
|
22,678
|
24,254
|
6,196
|
(1,630)
|
(6,254)
|
69,603
|
|
|
|
|
|
|
|
|
|
Income attributable
to the noncontrolling interest
|
—
|
927
|
—
|
—
|
—
|
—
|
—
|
927
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (a)
|
$
10,352
|
$ 13,080
|
$ 22,678
|
$ 24,254
|
$
6,196
|
$ (1,630)
|
$ (6,254)
|
$
68,676
|
|
|
|
|
|
|
|
|
|
(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).
|
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO
SOURCE The Andersons, Inc.