The Andersons, Inc. Reports Record 1st Qtr. Earnings

EPS 22 Cents vs. 11 Cents Loss Last Year Improvement in Processing, Rail & Retail Segments

PRNewswire-FirstCall
MAUMEE, Ohio
Apr 23, 2002

The Andersons, Inc. , today announced first quarter net income of $1.6 million, or $0.22 per diluted share. In the same three-month period of 2001, the company incurred a loss of $0.8 million, or $0.11 per diluted share. Total revenues of $215 million for the period were relatively unchanged from the year-earlier first quarter.

The Andersons has four operating groups: Agriculture, Processing, Rail and Retail.

The Agriculture Group's grain business achieved higher operating income from the sale and storage of grain during the first quarter of 2002. Its fertilizer business lagged year-earlier results, though. Fertilizer volumes were somewhat lower as wet conditions this year prevented the start of early- season fieldwork by farmers in the region, and margins, having benefited from an unusual run-up in nitrogen prices last year, returned to more normal levels. As a result, the group's revenues and income, while still quite substantial, were below first quarter 2001 levels.

The Processing Group achieved a significant turnaround during the first three months of 2002. Despite lower volumes and revenues caused by the weather-related curtailment of early-season lawn care activities, gross margins, adversely impacted by ingredient cost increases in 2001, improved. In addition, intensive efforts throughout 2001 to reduce costs and improve operating efficiencies resulted in lower overall expenses for the first three months of 2002. As a result, the group achieved a $2.7 million bottom-line improvement for the quarter.

The Rail Group similarly overcame a year-earlier first quarter operating loss. Because of steady improvement in its fleet utilization rate, the group achieved a positive operating income for the period. Although railcar values and monthly lease rates remain at or near recent cyclical lows, the group has a growing number of cars in active lease service and a declining number of idle cars in its fleet.

The Retail Group achieved a 7.2 percent increase in same-store sales for the quarter. In addition, average gross margins were up slightly and expenses were below year-earlier levels. As a result, the group's first quarter operating loss was significantly lower this year.

President and Chief Executive Officer Mike Anderson stated "I'm really proud of our first-quarter performance this year, with net income and earnings per share both establishing new records for The Andersons. Our EBITDA of $8.5 million for the quarter was also very strong, up $2.3 million from the first quarter of 2001."

"Looking forward, we expect that grain storage income and fertilizer margins may both be down this year, leaving Agriculture Group income more in line with the most recent three-year average. We anticipate continued bottom- line performance improvement in all three of our non-agricultural businesses. Assuming reasonable general economic conditions for the balance of the year and a normal planting and growing season, our 2002 earnings may exceed last year's EPS by up to ten percent."

The Andersons will host a webcast on Wednesday, April 24, 2002 at 11:00 A.M. EDT, to discuss its first quarter performance and full-year outlook. The webcast can be accessed under the heading "Financial Information" on its website at http://www.andersonsinc.com/ or at http://www.videonewswire.com/event.asp?id=4168 .

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


  FINANCIAL TABLES FOLLOW . . .

                             The Andersons, Inc.
                    Consolidated Statements of Operations

                                                   Three Months ended
                                                         March 31
  (in thousands, except for per share
   amounts)                                       2002              2001

  Sales and merchandising revenues              $214,831          $218,007
  Cost of sales and merchandising
   revenues                                      178,811           182,892
  Gross profit                                    36,020            35,115

  Operating, administrative and general
   expenses                                       31,787            33,351
  Interest expense                                 2,713             3,614
  Other income / gains:
    Other income                                     792               584
    Gain on involuntary conversion                     -               338
  Income before income taxes and
   cumulative effect
    of accounting change                           2,312              (928)
  Income taxes                                       703              (298)
  Income (loss) before cumulative
   effect of accounting change                     1,609              (630)
  Cumulative effect of accounting
   change, net of income tax benefit                   -              (185)
  Net income (loss)                               $1,609             $(815)

  Per common share:
        Basic earnings (loss)                      $0.22            $(0.11)
        Diluted earnings (loss)                    $0.22            $(0.11)
        Dividends paid                            $0.065            $0.065

  Weighted average shares outstanding-
   basic                                           7,288             7,371
  Weighted average shares outstanding-
   diluted                                         7,393             7,371

  Depreciation and amortization                   $3,512            $3,539


                           The Andersons, Inc.
                       Consolidated Balance Sheets
                               (Unaudited)

                                           March 31  December 31   March 31
             (in thousands)                  2002        2001        2001
  Assets
  Current assets:
    Cash and cash equivalents               $9,592      $5,697      $6,246
    Accounts receivable (net) and
     margin deposits                        72,826      54,836      71,570
    Inventories                            238,903     238,291     213,424
    Other current assets                    24,271      27,849      28,727
  Total current assets                     345,592     326,673     319,967

  Other assets                               6,385       6,300       7,882
  Railcar assets leased to others (net)     29,247      26,102      26,690
  Property, plant and equipment (net)       94,851      95,001      96,945
                                          $476,075    $454,076    $451,484

  Liabilities and shareholders' equity
  Current liabilities:
    Notes payable                         $128,200     $82,600    $114,600
    Other current liabilities              143,775     169,068     155,275
  Total current liabilities                271,975     251,668     269,875

  Deferred items, long-term liabilities
   and minority interest                    15,244      16,158      15,800
  Long-term debt                            92,269      91,316      78,251
  Shareholders' equity                      96,587      94,934      87,558
                                          $476,075    $454,076    $451,484


                               Segment Data

  Quarter ended March 31, 2002

              Agriculture Processing   Rail   Retail    Other      Total
  Revenues from
   external
   customers    $134,840   $40,981   $4,160   $34,850   $     -  $214,831
  Other income       267       123        3       119       280       792
                $135,107   $41,104   $4,163   $34,969   $   280  $215,623

  Operating
   income (loss)$  2,524   $ 2,418   $  380   $(1,739)  $(1,271) $  2,312


  Quarter ended March 31, 2001

  Revenues from
   external
   customers    $137,512   $42,246   $5,746   $32,503   $     -  $218,007
  Other income       188        96       11       135       154       584
  Gain on
   involuntary
   conversion        338         -        -         -         -       338
                $138,038   $42,342   $5,757   $32,638   $   154  $218,929

  Operating
   income
   (loss)       $  3,329   $  (243)  $ (295)  $(2,993)  $  (726) $   (928)

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SOURCE: The Andersons, Inc.

Contact: Gary Smith of The Andersons, Inc., +1-419-891-6417


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