The Andersons, Inc. Reports Record First Quarter Results

First Quarter Earnings of $0.98 per Diluted Share

Grain, Rail and Plant Nutrient Lead Earning Results

PR Newswire
MAUMEE, Ohio
May 7, 2012

MAUMEE, Ohio, May 7, 2012 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced record first quarter net income attributable to the company of $18.4 million, or $0.98 per diluted share, on revenues of $1.1 billion. In the same three month period of 2011, the company reported results of $17.3 million, or $0.93 per diluted share, on $1.0 billion of revenues.

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

The Grain Group reported record first quarter operating income of $19.4 million in 2012, and $15.1 million for the same period of the prior year. The group benefited from strong space income and very good first quarter earnings from the investment in Lansing Trade Group. First quarter revenues for the group were $700 million and $638 million for 2012 and 2011, respectively. Revenues increased due to a slight increase in both the average grain price and bushels sold.

The Ethanol Group had operating income of $0.1 million in the first quarter. This compares to $3.6 million earned during the same period of 2011. The decreased income is the result of a decline in the company's earnings from its ethanol investment affiliates, whose income was negatively impacted by lower ethanol margins resulting from increased industry production and lower demand led by declining exports. There was, however, increased income from corn oil, E-85, and CO2. Total revenues for the quarter were $151 million. In comparison, the group's revenues for the same period last year were $133 million. The revenue increase is primarily due to an increase in the average price per gallon.

The Plant Nutrient Group achieved operating income of $5.8 million during the first quarter. In the same three month period of 2011, the group reported $5.1 million of operating income. This improved performance was due entirely to an increase in volume. Margin was down slightly from the prior year due to lower price appreciation. The volume increase is primarily the result of good application weather in March and pent up demand from the fourth quarter of 2011. Revenues for the first quarter of 2012 and 2011 were $175 million and $124 million, respectively. Revenues grew due to an increase in both the average selling price and volume.

The Rail Group had record first quarter operating income of $8.0 million on revenues of $36 million. In the same three month period of 2011, the group earned $3.5 million and revenues were $29 million. The group's revenue and income benefitted from higher utilization and lease rates. The group recognized $6.3 million in gains on sales of railcars and related leases, whereas last year during the same quarter $4.8 million was recorded. The average utilization rate for the quarter was 85.7 percent in comparison to 82.4 percent for the same period last year. Income from the railcar repair business has also increased considerably.

The Turf & Specialty Group reported operating income of $2.2 million on $45 million of revenues during the first quarter. Last year, the group reported $3.3 million of income on $47 million of revenues for the period.

The Retail Group had an operating loss of $2.7 million during the first quarter of both 2012 and 2011. Revenues for both years were also comparable at $30 million and $31 million for 2012 and 2011, respectively.

"Our agricultural businesses continue to perform well. Although we will not see the same wheat basis gains we did last year, we are pleased with the year-to-date corn planting progress, on what is expected to be an approximate 96 million acre crop. It is also gratifying to report record earnings in our Rail Group, which struggled for a few years during the economic downturn," CEO Mike Anderson stated. "Quality growth investments continue to be a priority for us. In January, we added New Eezy Gro, to our Plant Nutrient Group; an Ohio based specialty agricultural and industrial company with two locations. Last week, our new ethanol investment affiliate, The Andersons Denison Ethanol LLC, acquired an existing ethanol plant in Denison, Iowa from Amaizing Energy Company. We will operate the plant and handle all marketing and origination services as we do for the other three ethanol LLCs in which we have an investment," added Mr. Anderson.

"In spite of the above we believe the second quarter will be challenging, primarily due to the expectation of a significant drop in wheat space income in the Grain Group. Lower margins are also expected during the second quarter in both our Ethanol and Plant Nutrient groups. We do believe, however, that these factors will be partially offset by significantly increased performance in Rail. Overall, we expect 2012 to be our second best year ever," concluded Mr. Anderson.

The company will host a webcast on Tuesday, May 8, 2012 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 production, and general merchandise retailing. 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 per share
     data)                                                2012        2011
                                                          ----        ----

    Sales and merchandising revenues                $1,137,133  $1,001,674
    Cost of sales and merchandising
     revenues                                        1,051,263     922,989
                                                     ---------     -------
    Gross profit                                        85,870      78,685

    Operating, administrative and
     general expenses                                   60,100      53,707
    Interest expense                                     5,330       7,336
    Other income:
      Equity in earnings of affiliates                   4,283       7,246
      Other income, net                                  3,246       2,306
                                                         -----       -----
    Income before income taxes                          27,969      27,194
    Income tax provision                                10,241       9,806
                                                        ------       -----
    Net income                                          17,728      17,388
      Net income (loss) attributable to
       the noncontrolling interest                        (679)        122
                                                          ----         ---
    Net income attributable to The
     Andersons, Inc.                                   $18,407     $17,266
                                                       =======     =======

    Per common share:
    Basic earnings attributable to The
     Andersons, Inc. common
     shareholders                                        $0.99       $0.93
                                                         =====       =====
    Diluted earnings attributable to
     The Andersons, Inc. common
     shareholders                                        $0.98       $0.93
                                                         =====       =====
    Dividends paid                                     $0.1500     $0.1100
                                                       =======     =======

    The Andersons, Inc.
    Consolidated Balance Sheets
    (Unaudited)

                                March 31,         December 31,         March 31,
    (in
     thousands)                              2012                 2011              2011
                                             ----                 ----              ----

    Assets
    Current assets:
      Cash and
       cash
       equivalents                        $31,874              $20,390           $22,320
      Restricted
       cash                                18,785               18,651            12,353
      Accounts
       receivable,
       net                                204,400              167,640           220,665
      Inventories                         787,646              760,459           775,017
      Commodity
       derivative
       assets -
       current                             33,845               83,950           178,767
      Other
       current
       assets                              85,639               56,132            65,299
                                           ------               ------            ------
    Total
     current
     assets                             1,162,189            1,107,222         1,274,421

    Investments
     and other
     assets                               258,771              252,388           221,796
    Commodity
     derivative
     assets -
     noncurrent                             1,189                2,289            12,996
    Railcar
     assets
     leased to
     others,
     net                                  215,023              197,137           169,189
    Property,
     plant and
     equipment,
     net                                  187,584              175,087           150,262
    Total
     assets                            $1,824,756           $1,734,123        $1,828,664
                                       ==========           ==========        ==========

    Liabilities and equity
    Current liabilities:
      Borrowings
       under
       short-
       term line
       of credit                         $365,000              $71,500          $460,000
      Commodity
       derivative
       liabilities
       -current                            34,113               15,874            67,869
      Accrued
       expenses
       and other
       current
       liabilities                        479,935              706,877           436,937
                                          -------              -------           -------
    Total
     current
     liabilities                          879,048              794,251           964,806

    Other long-
     term
     liabilities                          166,081              160,626           119,432
    Commodity
     derivative
     liabilities
     -
     noncurrent                             2,352                1,519               110
    Long-term
     debt, less
     current
     maturities                           220,417              238,885           263,218
    Total
     equity                               556,858              538,842           481,098
    Total
     liabilities
     and equity                        $1,824,756           $1,734,123        $1,828,664
                                       ==========           ==========        ==========

    Segment Data

                                                                                                                                        Plant                                           Turf &
                                                                                     Grain                   Ethanol                 Nutrient                 Rail                   Specialty                  Retail                 Other             Total
                                                                                     -----                   -------                 --------                 ----                   ---------                  ------                 -----             -----
    Quarter ended March 31, 2012
    Revenues from external customers                                                       $699,861                $150,670                 $175,360               $35,859                     $45,127                $30,256             $       -            $1,137,133

    Gross Profit                                                                             32,601                   2,773                   21,318                12,565                       7,999                  8,614                     -                85,870

    Equity in earnings (loss) of affiliates                                                   5,952                  (1,671)                       2                     -                           -                      -                     -                 4,283

    Other income, net                                                                           827                      16                      118                   776                         201                    124                 1,184                 3,246

    Income (loss) before income taxes                                                        19,435                    (558)                   5,828                 8,018                       2,202                 (2,749)               (4,207)               27,969

    Loss attributable to the noncontrolling interest                                                                   (679)                                                                                                                                         (679)

    Operating income (loss) (a)                                                              19,435                     121                    5,828                 8,018                       2,202                 (2,749)               (4,207)               28,648

    Quarter ended March 31, 2011
    Revenues from external customers                                                       $637,967                $132,748                 $123,649               $28,910                     $47,270                $31,130             $       -            $1,001,674

    Gross Profit                                                                             31,292                   4,465                   18,084                 7,117                       8,776                  8,951                     -                78,685

    Equity in earnings of affiliates                                                          6,230                   1,014                        2                     -                           -                      -                     -                 7,246

    Other income, net                                                                           580                      58                      125                   753                         290                    156                   344                 2,306

    Income (loss) before income taxes                                                        15,101                   3,693                    5,114                 3,546                       3,278                 (2,664)                 (874)               27,194

    Income attributable to the noncontrolling interest                                                                  122                                                                                                                                           122

    Operating income (loss) (a)                                                              15,101                   3,571                    5,114                 3,546                       3,278                 (2,664)                 (874)               27,072



    (a) Operating income (loss) for each operating segment 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.

SOURCE The Andersons, Inc.

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

SOURCE: The Andersons, Inc.

The Andersons, Inc. Reports Record First Quarter Results

First Quarter Earnings of $0.98 per Diluted Share

Grain, Rail and Plant Nutrient Lead Earning Results

PR Newswire

MAUMEE, Ohio, May 7, 2012 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced record first quarter net income attributable to the company of $18.4 million, or $0.98 per diluted share, on revenues of $1.1 billion.  In the same three month period of 2011, the company reported results of $17.3 million, or $0.93 per diluted share, on $1.0 billion of revenues.

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

The Grain Group reported record first quarter operating income of $19.4 million in 2012, and $15.1 million for the same period of the prior year.  The group benefited from strong space income and very good first quarter earnings from the investment in Lansing Trade Group.  First quarter revenues for the group were $700 million and $638 million for 2012 and 2011, respectively.  Revenues increased due to a slight increase in both the average grain price and bushels sold.

The Ethanol Group had operating income of $0.1 million in the first quarter.  This compares to $3.6 million earned during the same period of 2011.  The decreased income is the result of a decline in the company's earnings from its ethanol investment affiliates, whose income was negatively impacted by lower ethanol margins resulting from increased industry production and lower demand led by declining exports.  There was, however, increased income from corn oil, E-85, and CO2.  Total revenues for the quarter were $151 million.  In comparison, the group's revenues for the same period last year were $133 million.  The revenue increase is primarily due to an increase in the average price per gallon.        

The Plant Nutrient Group achieved operating income of $5.8 million during the first quarter.  In the same three month period of 2011, the group reported $5.1 million of operating income.  This improved performance was due entirely to an increase in volume.  Margin was down slightly from the prior year due to lower price appreciation.  The volume increase is primarily the result of good application weather in March and pent up demand from the fourth quarter of 2011.  Revenues for the first quarter of 2012 and 2011 were $175 million and $124 million, respectively.  Revenues grew due to an increase in both the average selling price and volume.    

The Rail Group had record first quarter operating income of $8.0 million on revenues of $36 million.  In the same three month period of 2011, the group earned $3.5 million and revenues were $29 million.  The group's revenue and income benefitted from higher utilization and lease rates.  The group recognized $6.3 million in gains on sales of railcars and related leases, whereas last year during the same quarter $4.8 million was recorded.  The average utilization rate for the quarter was 85.7 percent in comparison to 82.4 percent for the same period last year.  Income from the railcar repair business has also increased considerably.

The Turf & Specialty Group reported operating income of $2.2 million on $45 million of revenues during the first quarter.  Last year, the group reported $3.3 million of income on $47 million of revenues for the period.    

The Retail Group had an operating loss of $2.7 million during the first quarter of both 2012 and 2011.  Revenues for both years were also comparable at $30 million and $31 million for 2012 and 2011, respectively. 

"Our agricultural businesses continue to perform well.  Although we will not see the same wheat basis gains we did last year, we are pleased with the year-to-date corn planting progress, on what is expected to be an approximate 96 million acre crop.  It is also gratifying to report record earnings in our Rail Group, which struggled for a few years during the economic downturn," CEO Mike Anderson stated.  "Quality growth investments continue to be a priority for us.  In January, we added New Eezy Gro, to our Plant Nutrient Group; an Ohio based specialty agricultural and industrial company with two locations.  Last week, our new ethanol investment affiliate, The Andersons Denison Ethanol LLC, acquired an existing ethanol plant in Denison, Iowa from Amaizing Energy Company.  We will operate the plant and handle all marketing and origination services as we do for the other three ethanol LLCs in which we have an investment," added Mr. Anderson. 

"In spite of the above we believe the second quarter will be challenging, primarily due to the expectation of a significant drop in wheat space income in the Grain Group.  Lower margins are also expected during the second quarter in both our Ethanol and Plant Nutrient groups.  We do believe, however, that these factors will be partially offset by significantly increased performance in Rail.  Overall, we expect 2012 to be our second best year ever," concluded Mr. Anderson.   

The company will host a webcast on Tuesday, May 8, 2012 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 production, and general merchandise retailing.  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 per share data)

2012

2011






Sales and merchandising revenues

$ 1,137,133

$ 1,001,674


Cost of sales and merchandising revenues

1,051,263

922,989


Gross profit

85,870

78,685






Operating, administrative and general expenses

60,100

53,707


Interest expense

5,330

7,336


Other income:




  Equity in earnings of affiliates

4,283

7,246


  Other income, net

3,246

2,306


Income before income taxes

27,969

27,194


Income tax provision

10,241

9,806


Net income 

17,728

17,388


  Net income (loss) attributable to the noncontrolling interest

(679)

122


Net income attributable to The Andersons, Inc.

$      18,407

$      17,266






Per common share:




Basic earnings attributable to The Andersons, Inc. common shareholders

$          0.99

$          0.93


Diluted earnings attributable to The Andersons, Inc. common shareholders

$          0.98

$          0.93


Dividends paid

$      0.1500

$      0.1100






      






The Andersons, Inc.  


Consolidated Balance Sheets


(Unaudited)





March 31,

December 31,

March 31,


(in thousands)

2012

2011

2011







Assets





Current assets:





  Cash and cash equivalents

$      31,874

$         20,390

$      22,320


  Restricted cash

18,785

18,651

12,353


  Accounts receivable, net

204,400

167,640

220,665


  Inventories

787,646

760,459

775,017


  Commodity derivative assets - current

33,845

83,950

178,767


  Other current assets

85,639

56,132

65,299


Total current assets

1,162,189

1,107,222

1,274,421







Investments and other assets

258,771

252,388

221,796


Commodity derivative assets - noncurrent

1,189

2,289

12,996


Railcar assets leased to others, net

215,023

197,137

169,189


Property, plant and equipment, net

187,584

175,087

150,262


Total assets

$ 1,824,756

$    1,734,123

$ 1,828,664







Liabilities and equity





Current liabilities:





  Borrowings under short-term line of credit

$    365,000

$         71,500

$    460,000


  Commodity derivative liabilities - current

34,113

15,874

67,869


  Accrued expenses and other current liabilities

479,935

706,877

436,937


Total current liabilities

879,048

794,251

964,806







Other long-term liabilities

166,081

160,626

119,432


Commodity derivative liabilities - noncurrent

2,352

1,519

110


Long-term debt, less current maturities

220,417

238,885

263,218


Total equity

556,858

538,842

481,098


Total liabilities and equity

$ 1,824,756

$    1,734,123

$ 1,828,664







  











Segment Data























Plant


Turf & 






Grain

Ethanol

Nutrient

Rail

Specialty

Retail 

Other

Total


Quarter ended March 31, 2012










Revenues from external customers

$ 699,861

$ 150,670

$ 175,360

$ 35,859

$ 45,127

$ 30,256

$       -

$ 1,137,133












Gross Profit

32,601

2,773

21,318

12,565

7,999

8,614

-

85,870












Equity in earnings (loss) of affiliates

5,952

(1,671)

2

-

-

-

-

4,283












Other income, net

827

16

118

776

201

124

1,184

3,246












Income (loss) before income taxes

19,435

(558)

5,828

8,018

2,202

(2,749)

(4,207)

27,969












Loss attributable to the noncontrolling interest


(679)






(679)












Operating income (loss) (a)

19,435

121

5,828

8,018

2,202

(2,749)

(4,207)

28,648












Quarter ended March 31, 2011










Revenues from external customers

$ 637,967

$ 132,748

$ 123,649

$ 28,910

$   47,270

$ 31,130

$       -

$  1,001,674












Gross Profit

31,292

4,465

18,084

7,117

8,776

8,951

-

78,685












Equity in earnings of affiliates

6,230

1,014

2

-

-

-

-

7,246












Other income, net

580

58

125

753

290

156

344

2,306












Income (loss) before income taxes

15,101

3,693

5,114

3,546

3,278

(2,664)

(874)

27,194












Income attributable to the noncontrolling interest


122






122












Operating income (loss) (a)

15,101

3,571

5,114

3,546

3,278

(2,664)

(874)

27,072
































(a) Operating income (loss) for each operating segment 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.

 

SOURCE The Andersons, Inc.

CONTACT: Nick Conrad, +1-419-891-6415, nick_conrad@andersonsinc.com


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