The Andersons, Inc. Reports First Quarter Results

Record First Quarter Earnings of $0.93 per Diluted Share

The Grain Division Leads Earning Results

PR Newswire
MAUMEE, Ohio
May 4, 2011

MAUMEE, Ohio, May 4, 2011 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced record first quarter net income attributable to the company of $17.3 million, or $0.93 per diluted share, on revenues of $1.0 billion. In the same three month period of 2010, the company reported results of $12.3 million, or $0.66 per diluted share, on $722 million of revenues.

(Logo: http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO )

During the quarter, the company re-evaluated its reportable segments. As a result, the Grain & Ethanol Group was separated into two reportable segments, specifically the Grain Division and the Ethanol Division. The company's investment in Lansing Trade Group is included in the Grain Division. Segment information for earlier periods has been restated for comparability purposes.

Although the Grain Division led the company in first quarter income, the Plant Nutrient Group enjoyed the largest year to year increase in income. Continued good carry in the grain markets, particularly wheat, coupled with improved farm income opportunity created favorable fundamentals for our traditional agricultural businesses in the first quarter. Increased demand for U.S. exports of grains and other agricultural products to feed an ever growing world population along with the U.S. corn based ethanol demand continues to create positive agriculture fundamentals.

The Grain & Ethanol Group reported first quarter operating income of $18.7 million, which was just $2.0 million lower than its year earlier record result of $20.7 million. These results were led by the Grain Division. The division reported record operating income of $15.1 million in the first quarter of 2011, and $12.2 million for the same period of the prior year. The division benefited from continued strong space income and record first quarter earnings from the investment in Lansing Trade Group. Revenues for the Grain Division were $638 million and $402 million for the first quarter of 2011 and 2010, respectively. Revenues increased significantly due to the overall climb in grain prices.

The Ethanol Division earned an operating income of $3.6 million in the first quarter. This compares to $8.5 million earned during the same period of the prior year. The decreased income is the result of a decline in the company's earnings from the ethanol LLC's, which have been negatively impacted by lower ethanol margins. Total revenues for the quarter were $133 million. In comparison, the division's revenues for the same period last year were $119 million.

The Plant Nutrient Group achieved operating income of $5.1 million during the first quarter. In the same three month period of 2010, the group reported $0.7 million of operating income. This improved performance was due entirely to an increase in margin. Volume was virtually unchanged from the prior year. The margin improvement is primarily the result of the lagging effect of price escalation in the second half of 2010. Revenues for the first quarter of 2011 and 2010 were $124 million and $103 million, respectively. Revenues grew due to an increase in the average selling price per ton.

The Rail Group had an operating income of $3.5 million in the first quarter on revenues of $29 million. In the same three month period of 2010, the group earned $1.0 million and revenues were $27 million. This quarter, the group recognized $4.8 million in gains on sales of railcars and related leases, whereas last year $2.6 million was recorded. Gross profit from the leasing business was lower due primarily to lower average lease rates, decreased end of lease income, and increased maintenance expense incurred when preparing cars to return to service. The average utilization rate for the quarter was 82 percent in comparison to 70 percent for the same period last year.

The Turf & Specialty Group earned operating income of $3.3 million on $47 million of revenues during the first quarter. Last year, the group reported $2.7 million of income on $42 million of revenues for the period. Turf products tonnage was up from the prior year, however, margin per ton decreased slightly due to changing product mix.

The Retail Group had an operating loss of $2.7 million during the first quarter on revenues of $31 million. During the same period of the prior year the group had a loss of $2.8 million, and total revenues were $30 million.

In the prior year, the company recorded a one time adjustment to increase income tax expense by $1.5 million, as a result of the Patient Protection and Affordable Care Act, signed into law during the first quarter of 2010. This adjustment had an earnings per share impact of $0.09 on the 2010 first quarter results.

"We are pleased to be able to report record first quarter earnings," CEO Mike Anderson stated. "The investments made in our agricultural businesses over the last several years, including our investment in Lansing Trade Group, are paying off nicely in this very positive agricultural environment. It is also worth noting that the quarterly operating results for each of our non- agricultural businesses improved over the prior year result as well," added Mr. Anderson.

The company will host a webcast on Thursday, May 5, 2011 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 with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products, and general merchandise retail. Founded in Maumee, Ohio, in 1947, the company now has operations across the United States, in Puerto Rico, and has rail equipment leasing interests in Canada and Mexico.

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 for per share amounts)       2011            2010
                                                       ----            ----

    Sales and merchandising revenues             $1,001,674        $721,998
    Cost of sales and merchandising revenues        922,989         663,448
                                                    -------         -------
    Gross profit                                     78,685          58,550

    Operating, administrative and general
     expenses                                        53,707          45,403
    Interest expense                                  7,336           4,635
    Other income:
      Equity in earnings of affiliates                7,246           9,905
      Other income - net                              2,306           3,654
                                                      -----           -----
    Income before income taxes                       27,194          22,071
    Income tax provision                              9,806           9,415
                                                      -----           -----
    Net income                                       17,388          12,656
      Net income attributable to the
       noncontrolling interest                          122             391
                                                        ---             ---
    Net income attributable to The Andersons,
     Inc.                                           $17,266         $12,265
                                                    =======         =======

    Per common share:

    Basic earnings attributable to The
     Andersons, Inc. common shareholders              $0.93           $0.67
                                                      =====           =====
    Diluted earnings attributable to The
     Andersons, Inc. common shareholders              $0.93           $0.66
                                                      =====           =====
    Dividends paid                                  $0.1100         $0.0875
                                                    =======         =======


    The Andersons, Inc.
    Consolidated Balance Sheets
    (Unaudited)

                                         March 31    December 31   March 31
    (in thousands)                              2011          2010        2010
                                                ----          ----        ----

    Assets
    Current assets:
      Cash and cash equivalents              $22,320       $29,219     $74,459
      Restricted cash                         12,353        12,134       3,336
      Accounts receivable, net               220,665       152,227     142,617
      Inventories                            775,017       647,189     374,893
      Commodity derivative assets -
       current                               178,767       246,475      58,197
      Other current assets                    65,299        51,314      55,049
                                              ------        ------      ------
    Total current assets                   1,274,421     1,138,558     708,551

    Investments and other assets             221,796       223,204     192,993
    Commodity derivative assets               12,996        18,113         158
    Railcar assets leased to others
     (net)                                   169,189       168,483     175,219
    Property, plant and equipment (net)      150,262       151,032     132,661
                                          $1,828,664    $1,699,390  $1,209,582
                                          ==========    ==========  ==========

    Liabilities and shareholders'
     equity
    Current liabilities:
      Borrowings on short-term line of
       credit                               $460,000      $241,100          $-
      Commodity derivative liabilities -
       current                                67,869        57,621      62,636
      Other current liabilities              436,937       538,022     344,400
                                             -------       -------     -------
    Total current liabilities                964,806       836,743     407,036

    Deferred items and other long-term
     liabilities                             119,432       117,984      91,840
    Commodity derivative liabilities             110         3,279       3,190
    Long-term debt                           263,218       276,825     287,851
    Shareholders' equity                     481,098       464,559     419,665
                                             -------       -------     -------
                                          $1,828,664    $1,699,390  $1,209,582
                                          ==========    ==========  ==========


    Segment Data

                                                                  Plant
                                      Grain   Ethanol   Rail    Nutrient
                                      -----   -------   ----    --------
    Quarter ended March 31, 2011
    Revenues from external customers $637,967 $132,748  $28,910  $123,649

    Gross Profit                       31,292    4,465    7,117    18,084

    Equity in earnings (loss) of
     affiliates                         6,230    1,014        -         2

    Other income (loss), net              580       58      753       125

    Income before income taxes         15,101    3,693    3,546     5,114

    Income attributable to the
     noncontrolling interest                      (122)

    Operating income (loss) (a)        15,101    3,571    3,546     5,114

    Quarter ended March 31, 2010
    Revenues from external customers $402,368 $118,521  $26,690  $103,158

    Gross Profit                       21,158    4,775    4,002    11,996

    Equity in earnings (loss) of
     affiliates                         3,059    6,844        -         2

    Other income (loss), net              649       24    1,809       331

    Income before income taxes         12,198    8,909    1,026       719

    Income attributable to the
     noncontrolling interest                -     (391)       -         -

    Operating income (loss) (a)        12,198    8,518    1,026       719





                                   Turf &
                                 Specialty  Retail    Other      Total
                                 ---------  ------    -----      -----
    Quarter ended March 31, 2011
    Revenues from external
     customers                      $47,270  $31,130       $-  $1,001,674

    Gross Profit                      8,776    8,951        -      78,685

    Equity in earnings (loss) of
     affiliates                           -        -        -       7,246

    Other income (loss), net            290      156      344       2,306

    Income before income taxes        3,278   (2,664)    (874)     27,194

    Income attributable to the
     noncontrolling interest                                         (122)

    Operating income (loss) (a)       3,278   (2,664)    (874)     27,072

    Quarter ended March 31, 2010
    Revenues from external
     customers                      $41,633  $29,628       $-    $721,998

    Gross Profit                      8,440    8,179        -      58,550

    Equity in earnings (loss) of
     affiliates                           -        -        -       9,905

    Other income (loss), net            417      119      305       3,654

    Income before income taxes        2,664   (2,827)    (618)     22,071

    Income attributable to the
     noncontrolling interest              -        -        -        (391)

    Operating income (loss) (a)       2,664   (2,827)    (618)     21,680




    (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.

Photo:http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO
http://photoarchive.ap.org/

SOURCE: The Andersons, Inc.

The Andersons, Inc. Reports First Quarter Results

Record First Quarter Earnings of $0.93 per Diluted Share

The Grain Division Leads Earning Results

PR Newswire

MAUMEE, Ohio, May 4, 2011 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced record first quarter net income attributable to the company of $17.3 million, or $0.93 per diluted share, on revenues of $1.0 billion.  In the same three month period of 2010, the company reported results of $12.3 million, or $0.66 per diluted share, on $722 million of revenues.

(Logo:  http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO )

During the quarter, the company re-evaluated its reportable segments.  As a result, the Grain & Ethanol Group was separated into two reportable segments, specifically the Grain Division and the Ethanol Division.  The company's investment in Lansing Trade Group is included in the Grain Division.  Segment information for earlier periods has been restated for comparability purposes.  

Although the Grain Division led the company in first quarter income, the Plant Nutrient Group enjoyed the largest year to year increase in income.  Continued good carry in the grain markets, particularly wheat, coupled with improved farm income opportunity created favorable fundamentals for our traditional agricultural businesses in the first quarter.  Increased demand for U.S. exports of grains and other agricultural products to feed an ever growing world population along with the U.S. corn based ethanol demand continues to create positive agriculture fundamentals.

The Grain & Ethanol Group reported first quarter operating income of $18.7 million, which was just $2.0 million lower than its year earlier record result of $20.7 million.  These results were led by the Grain Division.  The division reported record operating income of $15.1 million in the first quarter of 2011, and $12.2 million for the same period of the prior year.  The division benefited from continued strong space income and record first quarter earnings from the investment in Lansing Trade Group.  Revenues for the Grain Division were $638 million and $402 million for the first quarter of 2011 and 2010, respectively.  Revenues increased significantly due to the overall climb in grain prices.

The Ethanol Division earned an operating income of $3.6 million in the first quarter.  This compares to $8.5 million earned during the same period of the prior year.  The decreased income is the result of a decline in the company's earnings from the ethanol LLC's, which have been negatively impacted by lower ethanol margins.  Total revenues for the quarter were $133 million.  In comparison, the division's revenues for the same period last year were $119 million.      

The Plant Nutrient Group achieved operating income of $5.1 million during the first quarter.  In the same three month period of 2010, the group reported $0.7 million of operating income.  This improved performance was due entirely to an increase in margin.  Volume was virtually unchanged from the prior year.   The margin improvement is primarily the result of the lagging effect of price escalation in the second half of 2010.  Revenues for the first quarter of 2011 and 2010 were $124 million and $103 million, respectively.  Revenues grew due to an increase in the average selling price per ton.    

The Rail Group had an operating income of $3.5 million in the first quarter on revenues of $29 million.  In the same three month period of 2010, the group earned $1.0 million and revenues were $27 million.  This quarter, the group recognized $4.8 million in gains on sales of railcars and related leases, whereas last year $2.6 million was recorded.  Gross profit from the leasing business was lower due primarily to lower average lease rates, decreased end of lease income, and increased maintenance expense incurred when preparing cars to return to service.  The average utilization rate for the quarter was 82 percent in comparison to 70 percent for the same period last year.  

The Turf & Specialty Group earned operating income of $3.3 million on $47 million of revenues during the first quarter.  Last year, the group reported $2.7 million of income on $42 million of revenues for the period.  Turf products tonnage was up from the prior year, however, margin per ton decreased slightly due to changing product mix.    

The Retail Group had an operating loss of $2.7 million during the first quarter on revenues of $31 million.  During the same period of the prior year the group had a loss of $2.8 million, and total revenues were $30 million.  

In the prior year, the company recorded a one time adjustment to increase income tax expense by $1.5 million, as a result of the Patient Protection and Affordable Care Act, signed into law during the first quarter of 2010.  This adjustment had an earnings per share impact of $0.09 on the 2010 first quarter results.

"We are pleased to be able to report record first quarter earnings," CEO Mike Anderson stated.  "The investments made in our agricultural businesses over the last several years, including our investment in Lansing Trade Group, are paying off nicely in this very positive agricultural environment.  It is also worth noting that the quarterly operating results for each of our non- agricultural businesses improved over the prior year result as well," added Mr. Anderson.

The company will host a webcast on Thursday, May 5, 2011 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 with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products, and general merchandise retail.  Founded in Maumee, Ohio, in 1947, the company now has operations across the United States, in Puerto Rico, and has rail equipment leasing interests in Canada and Mexico.

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 for per share amounts)

2011

2010




Sales and merchandising revenues

$          1,001,674

$               721,998

Cost of sales and merchandising revenues

922,989

663,448

Gross profit

78,685

58,550




Operating, administrative and general expenses

53,707

45,403

Interest expense

7,336

4,635

Other income:



 Equity in earnings of affiliates

7,246

9,905

 Other income - net

2,306

3,654

Income before income taxes

27,194

22,071

Income tax provision

9,806

9,415

Net income

17,388

12,656

 Net income attributable to the noncontrolling interest

122

391

Net income attributable to The Andersons, Inc.

$               17,266

$                 12,265




Per common share:






Basic earnings attributable to The Andersons, Inc. common shareholders

$                   0.93

$                     0.67

Diluted earnings attributable to The Andersons, Inc. common shareholders

$                   0.93

$                     0.66

Dividends paid

$               0.1100

$                 0.0875




The Andersons, Inc.  

Consolidated Balance Sheets

(Unaudited)



March 31

December 31

March 31

(in thousands)

2011

2010

2010





Assets




Current assets:




 Cash and cash equivalents

$                22,320

$                29,219

$               74,459

 Restricted cash

12,353

12,134

3,336

 Accounts receivable, net

220,665

152,227

142,617

 Inventories

775,017

647,189

374,893

 Commodity derivative assets - current

178,767

246,475

58,197

 Other current assets

65,299

51,314

55,049

Total current assets

1,274,421

1,138,558

708,551





Investments and other assets

221,796

223,204

192,993

Commodity derivative assets

12,996

18,113

158

Railcar assets leased to others (net)

169,189

168,483

175,219

Property, plant and equipment (net)

150,262

151,032

132,661


$           1,828,664

$           1,699,390

$          1,209,582





Liabilities and shareholders' equity




Current liabilities:




 Borrowings on short-term line of credit

$              460,000

$              241,100

$                       -

 Commodity derivative liabilities - current

67,869

57,621

62,636

 Other current liabilities

436,937

538,022

344,400

Total current liabilities

964,806

836,743

407,036





Deferred items and other long-term liabilities

119,432

117,984

91,840

Commodity derivative liabilities

110

3,279

3,190

Long-term debt

263,218

276,825

287,851

Shareholders' equity

481,098

464,559

419,665


$           1,828,664

$           1,699,390

$          1,209,582




Segment Data






Plant

Turf &





Grain

Ethanol

Rail

Nutrient

Specialty

Retail

Other

Total

Quarter ended March 31, 2011









Revenues from external customers

$  637,967

$  132,748

$  28,910

$  123,649

$  47,270

$  31,130

$     -

$  1,001,674










Gross Profit

31,292

4,465

7,117

18,084

8,776

8,951

-

78,685










Equity in earnings (loss) of affiliates

6,230

1,014

-

2

-

-

-

7,246










Other income (loss), net

580

58

753

125

290

156

344

2,306










Income before income taxes

15,101

3,693

3,546

5,114

3,278

(2,664)

(874)

27,194










Income attributable to the noncontrolling interest


(122)






(122)










Operating income (loss) (a)

15,101

3,571

3,546

5,114

3,278

(2,664)

(874)

27,072










Quarter ended March 31, 2010









Revenues from external customers

$  402,368

$  118,521

$  26,690

$  103,158

$  41,633

$  29,628

$     -

$  721,998










Gross Profit

21,158

4,775

4,002

11,996

8,440

8,179

-

58,550










Equity in earnings (loss) of affiliates

3,059

6,844

-

2

-

-

-

9,905










Other income (loss), net

649

24

1,809

331

417

119

305

3,654










Income before income taxes

12,198

8,909

1,026

719

2,664

(2,827)

(618)

22,071










Income attributable to the noncontrolling interest

-

(391)

-

-

-

-

-

(391)










Operating income (loss) (a)

12,198

8,518

1,026

719

2,664

(2,827)

(618)

21,680




























(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.

CONTACT: Nicholas C. Conrad, VP, Finance & Treasurer, +1-419-891-6415, nick_conrad@andersonsinc.com


print email rss
Grain
Plant Nutrient
Ethanol
Rail