MAUMEE, Ohio, May 7, 2014 /PRNewswire/ -- The Andersons,
Inc. (Nasdaq: ANDE) announced first quarter net income
attributable to the company of $22.7
million, or $0.80 per diluted
share, on revenues of $1.0
billion. In the same three month period of 2013, the
company reported results of $12.6
million, or $0.45 per diluted
share, on $1.3 billion of
revenues.
The Ethanol Group achieved record operating income of
$19.8 million in the first
quarter. This compares to $2.5
million earned during the same period of 2013. The
higher income is primarily due to improved performance of the
ethanol limited liability company investments, which benefited from
strong ethanol margins. Ethanol margins during the first
quarter were impacted by low U.S. ethanol stocks, accompanied by
improving domestic and export demand. The Ethanol Group also
benefitted from improved production rates, ongoing service fees,
and increased co-product sales of corn oil, E-85, and distillers
dried grains. Total revenues for the quarter were
$189 million. In comparison,
the group's revenues for the same period last year were
$199
million.
The Rail Group had record first quarter operating income of
$15.0 million on revenues of
$52 million. In the same three
month period of 2013, the group earned $14.6
million and revenues were $46
million. The group's revenue and income benefited from
higher lease rates and increased income from car sales. The
group recognized $10.8 million in
pre-tax gains on sales of railcars and related leases and
non-recourse transactions in the first quarter, which is
approximately $1.0 million more than
the prior year. The average utilization rate for the quarter
was 88.4 percent in comparison to 84.6 percent for the same period
last year.
The Grain Group reported first quarter operating income of
$11.3 million in comparison to
$8.3 million for the same period of
the prior year. Included in this year's results is a pre-tax
gain of $17.1 million from the
partial sale of its Lansing Trade Group holdings. At the
time of the sale the group reduced its ownership percentage, on a
fully diluted basis, to approximately 39.2 percent, whereas
previously it held approximately a 47.5 percent ownership
interest in Lansing. The Grain Group's earnings from
operations were a loss this quarter due in part to significantly
lower space income, which was the result of less carry in the corn
market and significantly reduced wheat inventory. The group's
earnings from its equity investments were also significantly
reduced. First quarter revenues for the Grain Group
were $583 million and $836 million for 2014 and 2013,
respectively. Revenues decreased primarily due to lower grain
prices, which decreased almost 30
percent.
The Plant Nutrient Group had an operating loss of $1.4 million during the first quarter on revenues
of $108 million. In the same
three month period of 2013, the group reported an operating loss of
$0.6 million and revenues of
$112 million. The first quarter
results were lower than anticipated due to weather related delays
in fieldwork; it appears much of this volume will shift to the
second quarter. Margins from year to year are down slightly
due to a slow start to the season.
The Turf & Specialty Group had operating income of
$1.4 million on $44 million of revenues during the first
quarter. Last year, the group reported $4.0 million of operating income on $47 million of revenues for the period.
The Retail Group had an operating loss of $2.3 million during the first quarter on revenues
of $28 million. In the prior
year, the group's operating loss for the same three month period
was $3.2 million, and revenues were
$31 million.
"The superior results seen last year in both our Ethanol and
Rail groups have continued into the first quarter. The
Ethanol Group worked diligently to increase its production in the
first quarter when other ethanol plants were forced to reduce
production. This effort allowed our ethanol team to fully
capitalize on the strong margins in the market. Our Rail
Group continued to perform well, working to increase both lease and
utilization rates over time," CEO Mike Anderson stated. "The Grain Group,
however, had a difficult quarter. Anticipated returns on
stored grain inventories simply did not materialize in the quarter.
While the Plant Nutrient Group was impacted by adverse
weather in the first quarter, it should benefit from an anticipated
significant corn crop planting in the second quarter, as long as
the weather cooperates," added Mr. Anderson.
The company will host a webcast on Thursday, May 8, 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.
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
March 31,
|
(in thousands, except
per share data)
|
2014
|
2013
|
|
|
|
Sales and
merchandising revenues
|
$
1,003,294
|
$
1,271,970
|
Cost of sales and
merchandising revenues
|
926,519
|
1,192,697
|
Gross
profit
|
76,775
|
79,273
|
Operating,
administrative and general expenses
|
70,985
|
62,008
|
Interest
expense
|
6,002
|
6,404
|
Other
income:
|
|
|
Equity
in earnings of affiliates, net
|
20,501
|
7,804
|
Other
income, net
|
19,612
|
2,726
|
Income before income
taxes
|
39,901
|
21,391
|
Income tax
provision
|
13,872
|
9,079
|
Net income
|
26,029
|
12,312
|
Net
income (loss) attributable to the noncontrolling
interests
|
3,321
|
(266)
|
Net income
attributable to The Andersons, Inc.
|
$
22,708
|
$ 12,578
|
|
|
|
Per common
share:
|
|
|
Basic earnings
attributable to The Andersons, Inc. common shareholders
|
$
0.80
|
$ 0.45
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
0.80
|
$ 0.45
|
Dividends
paid
|
$
0.1100
|
$ 0.1067
|
|
|
|
The Andersons,
Inc.
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
March 31,
2014
|
|
December 31,
2013
|
|
March 31,
2013
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
43,693
|
|
$
309,085
|
|
$
58,284
|
Restricted cash
|
652
|
|
408
|
|
635
|
Accounts
receivable, net
|
191,972
|
|
173,930
|
|
197,842
|
Inventories
|
725,584
|
|
614,923
|
|
753,378
|
Commodity derivative assets – current
|
119,330
|
|
71,319
|
|
158,079
|
Deferred
income taxes
|
9,104
|
|
4,931
|
|
15,482
|
Other
current assets
|
48,214
|
|
47,188
|
|
63,350
|
Total current
assets
|
1,138,549
|
|
1,221,784
|
|
1,247,050
|
Other
assets:
|
|
|
|
|
|
Commodity derivative assets – noncurrent
|
1,365
|
|
246
|
|
813
|
Other
assets, net
|
114,528
|
|
118,010
|
|
104,535
|
Pension
assets
|
15,079
|
|
14,328
|
|
-
|
Equity
method investments
|
232,396
|
|
291,109
|
|
190,377
|
|
363,368
|
|
423,693
|
|
295,725
|
Railcar assets leased
to others, net
|
237,534
|
|
240,621
|
|
244,706
|
Property, plant and
equipment, net
|
386,132
|
|
387,458
|
|
364,307
|
Total
assets
|
$
2,125,583
|
|
$
2,273,556
|
|
$
2,151,788
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Borrowings under short-term line of credit
|
$
226,100
|
|
$
-
|
|
$
292,100
|
Accounts
payable for grain
|
183,998
|
|
592,183
|
|
183,997
|
Other
accounts payable
|
177,623
|
|
154,599
|
|
182,013
|
Customer
prepayments and deferred revenue
|
124,981
|
|
59,304
|
|
160,191
|
Commodity derivative liabilities – current
|
32,153
|
|
63,954
|
|
50,157
|
Accrued
expenses and other current liabilities
|
56,290
|
|
70,295
|
|
52,519
|
Current
maturities of long-term debt
|
90,760
|
|
51,998
|
|
43,052
|
Total current
liabilities
|
891,905
|
|
992,333
|
|
964,029
|
|
|
|
|
|
|
Other long-term
liabilities
|
14,749
|
|
15,386
|
|
16,898
|
Commodity derivative
liabilities – noncurrent
|
734
|
|
6,644
|
|
3,220
|
Employee benefit plan
obligations
|
39,989
|
|
39,477
|
|
52,927
|
Long-term debt, less
current maturities
|
306,161
|
|
375,213
|
|
412,700
|
Deferred income
taxes
|
128,716
|
|
120,082
|
|
77,694
|
Total
liabilities
|
1,382,254
|
|
1,549,135
|
|
1,527,468
|
Total
equity
|
743,329
|
|
724,421
|
|
624,320
|
Total liabilities and
equity
|
$
2,125,583
|
|
$
2,273,556
|
|
$
2,151,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Grain
|
Ethanol
|
Plant
Nutrient
|
Rail
|
Turf &
Specialty
|
Retail
|
Other
|
Total
|
Three months
ended
|
|
|
|
|
|
|
|
|
March 31,
2014
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
583,159
|
$
188,820
|
$
107,630
|
$
52,302
|
$
43,725
|
$
27,658
|
$
-
|
$
1,003,294
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
17,008
|
7,365
|
14,075
|
21,865
|
8,475
|
7,987
|
-
|
76,775
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
1,884
|
18,617
|
-
|
-
|
-
|
-
|
-
|
20,501
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
18,346
|
(226)
|
185
|
710
|
307
|
112
|
178
|
19,612
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
11,303
|
23,148
|
(1,411)
|
15,045
|
1,375
|
(2,335)
|
(7,224)
|
39,901
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interests
|
(3)
|
3,324
|
-
|
-
|
-
|
-
|
-
|
3,321
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (a)
|
$
11,306
|
$
19,824
|
$
(1,411)
|
$
15,045
|
$
1,375
|
$
(2,335)
|
$
(7,224)
|
$
36,580
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
|
|
March 31,
2013
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
836,495
|
$
199,309
|
$
111,902
|
$
46,364
|
$
47,187
|
$
30,713
|
$
-
|
$
1,271,970
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
24,850
|
4,805
|
13,949
|
18,979
|
9,018
|
7,672
|
-
|
79,273
|
|
|
|
|
|
|
|
|
|
Equity in earnings
(loss) of affiliates
|
7,910
|
(106)
|
-
|
-
|
-
|
-
|
-
|
7,804
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
571
|
231
|
(25)
|
946
|
275
|
114
|
614
|
2,726
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
8,299
|
2,213
|
(562)
|
14,574
|
4,001
|
(3,169)
|
(3,965)
|
21,391
|
|
|
|
|
|
|
|
|
|
Loss attributable to
the noncontrolling interests
|
-
|
(266)
|
-
|
-
|
-
|
-
|
-
|
(266)
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (a)
|
$
8,299
|
$
2,479
|
$
(562)
|
$
14,574
|
$
4,001
|
$
(3,169)
|
$
(3,965)
|
$
21,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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).
|
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SOURCE The Andersons, Inc.