The Andersons, Inc. 4th Qtr. Income Up $1.0 Million, $1.7 Million for Full Year
2000 Full-Year EPS $1.34 vs. $1.03 in 1999
Jan 31, 2001
The Andersons, Inc.
Earnings of $1.34 per diluted share for the full year were $0.31, or 30 percent, higher than the $1.03 realized in 1999. Nineteen cents of this improvement was attributed to the insurance settlement. Full-year net income rose to $10.1 million on revenues of $970.3 million. In 1999, the company had revenues of $1.01 billion and net income of $8.4 million. The company has repurchased shares on the open market from time to time and presently has about 7.4 million shares outstanding.
The company's Agriculture Group operates grain elevators, fertilizer distribution terminals and farm centers in Ohio, Michigan, Indiana and Illinois. Collectively, these facilities annually handle more than 150 million bushels of grain and about 1.3 million tons of dry and liquid agricultural fertilizer products.
With grain inventories in the U.S. remaining relatively high in 2000, the group's grain business added storage capacity at four locations and continued to generate significantly increased earnings. The wholesale fertilizer business also achieved income growth for the year. Contributing to this improvement were a rebound from the year-earlier drop in gross margins and the full-year operation of a business in Seymour, Indiana, acquired in mid-1999. During the year, the group announced several e-commerce developments, including licensing agreements to market its Crop Revenue Profiler™ software to farm operators throughout the midwest and an investment in Rooster.com(SM), an Internet-based agricultural marketplace recently launched by several large agribusiness companies. Despite lower total revenues that resulted from low grain prices, the group achieved significant income growth in the fourth quarter and the full year.
The Rail Group leases and markets railroad cars and locomotives. It also repairs railcars and operates a custom steel fabrication business. The group's railcar marketing segment has grown dramatically in the past few years and now controls a fleet of more than 4,800 railcars and locomotives that are leased to shippers, railroads and fleet owners in a wide range of industries in the U.S. and Canada.
While revenues and operating income have grown steadily over the past five years, a general slowdown in demand for many types of rail equipment caused the group to pursue primarily short-term leasing opportunities in 2000 rather than making car sales or entering into long-term leasing commitments. Although these market conditions caused a decline in the group's revenues and operating income both for the fourth quarter and full year, this business remains solidly profitable and is a significant contributor to the company's net income.
The Processing Group manufactures turf and ornamental plant fertilizer and control products. With a national logistics infrastructure, it serves major retailers throughout the country as well as golf course and professional lawn- care markets. In mid-2000, the company acquired the U.S. professional turf business of The Scotts Co., thereby positioning The Andersons as the industry leader in premium fertilizer products for golf courses and other professional turf care markets. The group also produces corncob-based chemical and feed- ingredient carriers, animal bedding, cat litter and ice-melter products.
With the expanded business, revenues continued to grow significantly during the fourth quarter and were about 26 percent above 1999 for the year. However, the group's operating results for the fourth quarter and full year were below the prior year, in part because of acquisition-related expenses but more significantly because of unfavorable weather patterns during the key selling season and start-up expenses associated with several recent investments to increase production capacity.
This group operates six large stores in Ohio. With a theme of More For Your Home™, these stores offer traditional home center merchandise including hardware, plumbing, electrical and building supplies, but also feature indoor and outdoor garden centers, extensive lines of housewares and domestics, automotive supplies, pet supplies, sporting goods and a unique specialty food offering. The group also operates a lawn and garden equipment sales and service center.
The group rang up record-setting sales in the last few days before Christmas. Total fourth quarter and full-year sales were up 5.9 and 1.6 percent, respectively, and gross margins remained strong. With improved efficiency and lower operating costs, this group achieved significant operating income growth for the quarter and year. Excluding revenues generated during the fifty-third week, an extra reporting period occurring every seventh year, sales were relatively flat year-to-year.
According to President and Chief Executive Officer Mike Anderson, "Overall, 2000 was a good year for The Andersons. Looking forward, our increased grain storage capacity, greatly expanded presence in the professional turf products market and growing railcar fleet all hold promise for continued earnings growth."
Recently, the company paid a quarterly cash dividend of 6.5 cents per share to shareholders of record as of January 2, 2001. The company is authorized by its board of directors to continue to repurchase shares from time to time.
The Andersons will host a webcast on February 1, 2001 at 11:00 A.M. EST, to discuss the calendar 2000 results and outlook for 2001. The webcast can be accessed through the company's website http://www.andersonsinc.com/ under the heading "Financial Information" or at http://www.videonewswire.com/ANDERSONS/020101/ .
The Andersons, Inc. is a respected leader and prominent regional player in grain merchandising. Its strong position in this basic business has allowed the company to diversify into other agribusiness operations, railcar leasing, turf care product manufacturing and general merchandise retailing. The company has been in operation since 1947.
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, 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.
The Andersons, Inc. is located on the Internet at www.andersonsinc.com . The Andersons, Inc. Consolidated Statements of Income Three Months ended Year ended December 31 December 31 (in thousands, except for per share amounts) 2000 1999 2000 1999 Sales and merchandising revenues $323,955 $351,673 $970,289 $1,010,678 Cost of sales and merchandising revenues 278,943 309,436 813,326 860,715 Gross profit 45,012 42,237 156,963 149,963 Operating, administrative and general expenses 38,762 36,459 137,839 132,682 Interest expense 3,590 2,832 11,829 9,517 Other income / Gains: Other income 1,034 1,564 3,989 4,195 Gain on involuntary conversion 2,088 - 2,088 - Gain on sale of business - - 992 - Income before income taxes 5,782 4,510 14,364 11,959 Income taxes 1,409 1,122 4,286 3,580 Net income $4,373 $3,388 $10,078 $8,379 Per common share: Basic earnings $0.59 $0.43 $1.34 $1.05 Diluted earnings $0.59 $0.43 $1.34 $1.03 Dividends paid $0.06 $0.05 $0.24 $0.20 Weighted average shares outstanding-basic 7,374 7,789 7,507 7,996 Weighted average shares outstanding-diluted 7,398 7,801 7,525 8,098 The Andersons, Inc. Consolidated Balance Sheets December 31 December 31 (in thousands) 2000 1999 Assets Current assets: Cash and cash equivalents $13,138 $25,614 Accounts receivable: Trade accounts and notes receivable (net) 49,769 49,880 Margin deposits 5,706 1,339 Total 55,475 51,219 Inventories 209,706 161,802 Railcars available for sale 12,719 16,521 Deferred income taxes 3,444 5,641 Prepaid expenses and other current assets 8,342 7,728 Total current assets 302,824 268,525 Other assets: Notes receivable (net) and other assets 8,598 4,640 Investments in and advances to affiliates 1,422 954 Total 10,020 5,594 Railcar assets leased to others 22,281 7,112 Property, plant and equipment (net) 98,071 95,545 Total $433,196 $376,776 Liabilities and shareholders' equity Current liabilities: Notes payable $71,300 $45,000 Accounts payable for grain 67,468 68,883 Other accounts payable 84,045 65,079 Accrued expenses 15,625 17,465 Current maturities of long-term debt 9,126 4,159 Total current liabilities 247,564 200,586 Deferred income 3,166 4,026 Pension and postretirement benefits 3,684 3,255 Long-term debt 80,159 74,127 Deferred income taxes 8,787 8,742 Minority interest - 1,235 Shareholders' equity 89,836 84,805 Total $433,196 $376,776 The Andersons, Inc. - Segment Data Quarter ended December 31, 2000 Agriculture Processing Rail Revenues from external customers $246,014 $18,022 $6,063 Other income 386 65 13 Gain on involuntary conversion 2,088 - - Total $248,488 $18,087 $6,076 Operating income (loss) $7,872 $(2,994) $(167) Quarter ended December 31, 1999 Revenues from external customers $253,613 $12,057 $32,344 Other income 241 82 52 Total $253,854 $12,139 $32,396 Operating income (loss) $3,540 $(1,601) $945 Year ended December 31, 2000 Revenues from external customers $648,410 $107,434 $28,139 Other income 1,204 358 233 Gain on sale of business - - - Gain on involuntary conversion 2,088 - - Total $651,702 $107,792 $28,372 Operating income (loss) $14,301 $(3,470) $1,003 Year ended December 31, 1999 Revenues from external customers $673,523 $84,990 $60,082 Other income 761 470 160 Total $674,284 $85,460 $60,242 Operating income (loss) $6,054 $(95) $4,225 The Andersons, Inc. - Segment Data Quarter ended December 31, 2000 Retail Other Total Revenues from external customers $53,856 $- $323,955 Other income 150 420 1,034 Gain on involuntary conversion - - 2,088 Total $54,006 $420 $327,077 Operating income (loss) $1,900 $(829) $5,782 Quarter ended December 31, 1999 Revenues from external customers $50,837 $2,822 $351,673 Other income 133 1,056 1,564 Total $50,970 $3,878 $353,237 Operating income (loss) $1,495 $131 $4,510 Year ended December 31, 2000 Revenues from external customers $183,817 $2,489 $970,289 Other income 611 1,583 3,989 Gain on sale of business - 992 992 Gain on involuntary conversion - - 2,088 Total $184,428 $5,064 $977,358 Operating income (loss) $3,246 $(716) $14,364 Year ended December 31, 1999 Revenues from external customers $180,887 $11,196 $1,010,678 Other income 435 2,369 4,195 Total $181,322 $13,565 $1,014,873 Operating income (loss) $2,645 $(870) $11,959
SOURCE: The Andersons, Inc.
Contact: Gary Smith of The Andersons, Inc., 419-891-6417