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Press release from PR Newswire

The Andersons, Inc. Reports Record Third Quarter Results

Wednesday, November 06, 2013

The Andersons, Inc. Reports Record Third Quarter Results

16:01 EST Wednesday, November 06, 2013

Third Quarter Earnings of $0.91 per Diluted Share
Grain, Ethanol, and Rail Groups Lead Earning Results

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.

For further information: Investor Relations: Nick Conrad, Phone: 419-891-6415, E-mail: nick_conrad@andersonsinc.com

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