Third Quarter Loss of $0.04
per Diluted Share; Dividend increased for First Quarter
2016
MAUMEE, Ohio, Nov. 4, 2015
/CNW/ -- The Andersons, Inc. (NASDAQ: ANDE) announces
financial results for the third quarter ended September 30, 2015.
Highlights
- Rail Group has continued strong performance
- Quarterly dividend to be increased 11 percent
- Grain Group performance down due to significant decline in
equity earnings and lower core grain business results
- Plant Nutrient Group results adversely impacted by ongoing
and one-time costs associated with recent acquisitions, lower
demand, and a cob business impairment
"The Rail Group had a great quarter as they continued to benefit
from their focus on asset management, which has led to higher lease
and utilization rates. The Ethanol Group also had good results,
despite margins being down, as they continued to increase
throughput due to various process improvements they have made,"
said Chairman Mike Anderson.
"Overall, however, this was a disappointing quarter primarily due
to the results of our Grain and Plant Nutrient groups.
"We are confident in our future earning potential and we have
again raised our dividend. It has increased from 14 cents to 15 1/2
cents per share; this will be effective with the next
planned dividend to be paid on January 25,
2016 to holders of record as of January 4, 2016," concluded Anderson.
Key Highlights
The loss during the third quarter of
2015 attributable to the Company was $1.2
million, or $0.04 per diluted
share. Last year, third quarter net income was $16.8 million, or $0.59 per diluted share. Net income through
September this year was $34.0
million, or $1.19 per diluted
share. Adjusted net income through September of 2014 was
$73.2 million, or $2.57 per diluted share. (See the
Reconciliation to Adjusted Net Income Table attached for further
explanation.) Third quarter 2015 revenues were $936 million compared to $953 million in the prior year.
- The Rail Group achieved pre-tax income of $11.9 million this quarter led by strong base
leasing business results and continuing improvement in the railcar
repair business. The utilization rate ended the third quarter
at 92.2 percent.
- Despite ethanol margins being down significantly, the Ethanol
Group had a good quarter due to strong operational execution.
The group achieved record third quarter ethanol production
volumes.
- The Grain Group's performance was down year over year by
$12.3 million due to a significant
decrease in equity earnings from affiliates and lower results in
the core grain business.
- The Plant Nutrient Group's performance included a $4.5 million negative impact related to recent
acquisitions, which were not expected to be accretive this
quarter. The legacy portion of the business continued to see
a reduction of nutrient purchasing this quarter. The
group's results were further impacted by a $2.0 million goodwill impairment charge in the
Cob business.
Conference Call
The Company will host a webcast on
Thursday, November 5, 2015 at
11:00 A.M. ET, to discuss its
performance. To dial-in to the call, the number is
866-439-8514 (participant passcode is 60752097). 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/dybuefmq/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
September
30,
|
|
Nine months
ended
September
30,
|
(in thousands, except
per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Sales and
merchandising revenues
|
$ 935,774
|
|
$ 952,927
|
|
$ 3,094,355
|
|
$ 3,268,303
|
Cost of sales and
merchandising revenues
|
850,584
|
|
868,009
|
|
2,817,681
|
|
2,985,115
|
Gross
profit
|
85,190
|
|
84,918
|
|
276,674
|
|
283,188
|
Operating,
administrative and general expenses
|
88,698
|
|
76,737
|
|
251,044
|
|
223,997
|
Interest
expense
|
6,147
|
|
4,253
|
|
16,210
|
|
16,401
|
Other
income:
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
3,845
|
|
23,917
|
|
23,295
|
|
76,631
|
Other income,
net
|
3,355
|
|
1,685
|
|
20,235
|
|
25,094
|
Income before income
taxes
|
(2,455)
|
|
29,530
|
|
52,950
|
|
144,515
|
Income tax
provision
|
(1,505)
|
|
10,251
|
|
17,556
|
|
49,837
|
Net income
|
(950)
|
|
19,279
|
|
35,394
|
|
94,678
|
Net income
attributable to the noncontrolling interests
|
277
|
|
2,454
|
|
1,433
|
|
10,844
|
Net income
attributable to The Andersons, Inc.
|
$
(1,227)
|
|
$ 16,825
|
|
$
33,961
|
|
$ 83,834
|
|
|
|
|
|
|
|
|
Per common
share:
|
|
|
|
|
|
|
|
Basic earnings
attributable to The Andersons, Inc. common shareholders
|
$
(0.04)
|
|
$ 0.59
|
|
$
1.19
|
|
$
2.95
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
(0.04)
|
|
$ 0.59
|
|
$
1.19
|
|
$
2.95
|
Dividends
declared
|
$
0.14
|
|
$ 0.11
|
|
$
0.42
|
|
$
0.33
|
|
|
|
|
|
|
|
|
The Andersons,
Inc.
|
|
|
|
|
|
|
|
Reconciliation to
Adjusted Net Income
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
(in thousands, except
per share data)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income
attributable to The Andersons, Inc.
|
$ (1,227)
|
|
$ 16,825
|
|
$ 33,961
|
|
$ 83,834
|
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.
|
$ (1,227)
|
|
$ 16,825
|
|
$ 33,961
|
|
$ 73,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
(0.04)
|
|
$ 0.59
|
|
$ 1.19
|
|
$
2.95
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings per share
|
-
|
|
-
|
|
-
|
|
(0.38)
|
Adjusted diluted
earnings per share
|
$
(0.04)
|
|
$ 0.59
|
|
$ 1.19
|
|
$
2.57
|
|
|
|
|
|
|
|
|
The Andersons,
Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
September 30,
2015
|
|
December 31,
2014
|
|
September 30,
2014
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
40,658
|
|
$
114,704
|
|
$
326,946
|
Restricted
cash
|
181
|
|
429
|
|
173
|
Accounts receivable,
net
|
201,664
|
|
183,059
|
|
162,270
|
Inventories
|
527,789
|
|
795,655
|
|
396,464
|
Commodity derivative
assets – current
|
60,965
|
|
92,771
|
|
126,396
|
Deferred income
taxes
|
6,735
|
|
7,337
|
|
148
|
Other current
assets
|
66,411
|
|
60,492
|
|
36,518
|
Total current
assets
|
904,403
|
|
1,254,447
|
|
1,048,915
|
Other
assets:
|
|
|
|
|
|
Commodity derivative
assets – noncurrent
|
1,584
|
|
507
|
|
2,383
|
Other assets,
net
|
220,355
|
|
131,527
|
|
113,141
|
Pension
asset
|
-
|
|
-
|
|
13,738
|
Equity method
investments
|
223,207
|
|
226,857
|
|
257,166
|
|
445,146
|
|
358,891
|
|
386,428
|
Rail Group assets
leased to others, net
|
347,100
|
|
297,747
|
|
245,849
|
Property, plant and
equipment, net
|
495,045
|
|
453,607
|
|
401,800
|
Total
assets
|
$
2,191,694
|
|
$
2,364,692
|
|
$
2,082,992
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
82,801
|
|
$
2,166
|
|
$
451
|
Trade and other
payables
|
466,428
|
|
706,823
|
|
387,311
|
Customer prepayments
and deferred revenue
|
23,581
|
|
99,617
|
|
27,246
|
Commodity derivative
liabilities – current
|
49,911
|
|
64,075
|
|
229,265
|
Accrued expenses and
other current liabilities
|
71,593
|
|
78,610
|
|
70,598
|
Current maturities of
long-term debt
|
26,989
|
|
76,415
|
|
76,757
|
Total current
liabilities
|
721,303
|
|
1,027,706
|
|
791,628
|
|
|
|
|
|
|
Other long-term
liabilities
|
16,510
|
|
15,507
|
|
13,902
|
Commodity derivative
liabilities – noncurrent
|
2,912
|
|
3,318
|
|
26,203
|
Employee benefit plan
obligations
|
58,123
|
|
59,308
|
|
39,606
|
Long-term debt, less
current maturities
|
413,561
|
|
298,638
|
|
289,448
|
Deferred income
taxes
|
179,591
|
|
136,166
|
|
120,628
|
Total
liabilities
|
1,392,000
|
|
1,540,643
|
|
1,281,415
|
Total
equity
|
799,694
|
|
824,049
|
|
801,577
|
Total liabilities and
equity
|
$
2,191,694
|
|
$
2,364,692
|
|
$
2,082,992
|
|
|
|
|
|
|
The Andersons,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Grain
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Retail
|
|
Other
|
|
Total
|
Three months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$ 570,626
|
|
$ 139,140
|
|
$ 149,303
|
|
$ 44,758
|
|
$ 31,947
|
|
$
—
|
|
$ 935,774
|
Gross
profit
|
29,926
|
|
6,265
|
|
22,320
|
|
17,491
|
|
9,188
|
|
—
|
|
85,190
|
Equity in earnings of
affiliates
|
1,340
|
|
2,505
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,845
|
Other income,
net
|
618
|
|
36
|
|
947
|
|
2,093
|
|
92
|
|
(431)
|
|
3,355
|
Income (loss) before
income taxes
|
129
|
|
6,167
|
|
(11,114)
|
|
11,913
|
|
(769)
|
|
(8,781)
|
|
(2,455)
|
Income (loss)
attributable to the noncontrolling interests
|
(2)
|
|
279
|
|
—
|
|
—
|
|
—
|
|
—
|
|
277
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
131
|
|
$ 5,888
|
|
$ (11,114)
|
|
$ 11,913
|
|
$ (769)
|
|
$ (8,781)
|
|
$
(2,732)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Three months ended
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Revenues from
external customers
|
$ 575,354
|
|
$ 179,405
|
|
$ 133,440
|
|
$ 32,022
|
|
$ 32,706
|
|
$ —
|
|
$ 952,927
|
Gross
profit
|
32,748
|
|
12,770
|
|
19,240
|
|
10,841
|
|
9,319
|
|
—
|
|
84,918
|
Equity in earnings of
affiliates
|
10,190
|
|
13,727
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23,917
|
Other income
(expense), net
|
(2,354)
|
|
71
|
|
2,861
|
|
792
|
|
418
|
|
(103)
|
|
1,685
|
Income (loss) before
income taxes
|
12,447
|
|
23,709
|
|
(3,014)
|
|
4,160
|
|
(968)
|
|
(6,804)
|
|
29,530
|
Income (loss)
attributable to the noncontrolling interest
|
(2)
|
|
2,456
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,454
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$ 12,449
|
|
$ 21,253
|
|
$ (3,014)
|
|
$ 4,160
|
|
$ (968)
|
|
$ (6,804)
|
|
$ 27,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Retail
|
|
Other
|
|
Total
|
Nine months ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$ 1,781,104
|
|
$ 416,752
|
|
$ 660,440
|
|
$ 134,497
|
|
$ 101,562
|
|
$
—
|
|
$ 3,094,355
|
Gross
profit
|
84,656
|
|
18,394
|
|
90,984
|
|
53,062
|
|
29,578
|
|
—
|
|
276,674
|
Equity in earnings of
affiliates
|
10,764
|
|
12,531
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23,295
|
Other income,
net
|
2,682
|
|
83
|
|
2,441
|
|
14,766
|
|
284
|
|
(21)
|
|
20,235
|
Income (loss) before
income taxes
|
4,016
|
|
22,274
|
|
8,183
|
|
43,915
|
|
(1,483)
|
|
(23,955)
|
|
52,950
|
Income (loss)
attributable to the noncontrolling interests
|
(8)
|
|
1,441
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,433
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
4,024
|
|
$ 20,833
|
|
$ 8,183
|
|
$ 43,915
|
|
$ (1,483)
|
|
$ (23,955)
|
|
$
51,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Nine months ended
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Revenues from
external customers
|
$ 1,814,517
|
|
$ 594,613
|
|
$ 639,603
|
|
$ 117,733
|
|
$ 101,837
|
|
$
—
|
|
$ 3,268,303
|
Gross
profit
|
77,665
|
|
38,773
|
|
90,328
|
|
46,569
|
|
29,853
|
|
—
|
|
283,188
|
Equity in earnings of
affiliates
|
20,541
|
|
56,090
|
|
—
|
|
—
|
|
—
|
|
—
|
|
76,631
|
Other income,
net
|
16,967
|
|
201
|
|
4,211
|
|
2,289
|
|
720
|
|
706
|
|
25,094
|
Income (loss) before
income taxes
|
34,102
|
|
85,833
|
|
23,952
|
|
25,889
|
|
(1,666)
|
|
(23,595)
|
|
144,515
|
Income (loss)
attributable to the noncontrolling interest
|
(8)
|
|
10,852
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,844
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
34,110
|
|
74,981
|
|
23,952
|
|
25,889
|
|
(1,666)
|
|
(23,595)
|
|
133,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/the-andersons-inc-reports-third-quarter-results-300172567.html
SOURCE The Andersons, Inc.