The Andersons, Inc. Reports First Quarter Results

May 5, 2015

First Quarter Earnings of $0.14 per Diluted Share

MAUMEE, Ohio, May 5, 2015 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2015.

The Andersons, Inc. logo.

Highlights

  • Base grain pre-tax income up $6.9 million year over year
  • Rail Group leasing pre-tax income up 18 percent year over year
  • Ethanol Group pre-tax income of $5.3 million despite challenged markets
  • Good planting progress and higher ethanol margins point to a good full-year outlook

"As expected we experienced a soft start to 2015, yet conditions in the markets we serve give us optimism for the full year. During the first quarter we delivered year-over-year improvements in our core grain and rail leasing businesses. Additionally, our Ethanol Group remained profitable despite reduced industry margins during the seasonally weak first quarter," said CEO Mike Anderson. "Also, we are successfully integrating our 2014 acquisitions which contributed more than $1.0 million in pre-tax income for the quarter."

Key Highlights
Net income for the first quarter of 2015 attributable to the Company was $4.1 million, or $0.14 per diluted share.  Last year net income was $22.7 million, or $0.80 per diluted share. When excluding the partial redemption of our investment in Lansing Trade Group last year, adjusted net income was $12.1 million, or $0.42 per diluted share.  (See the Reconciliation to Adjusted Net Income Table for a discussion and reconciliation of income and adjusted income.) First quarter 2015 revenues were $950 million compared to $1.0 billion in revenues the same time last year.

  • The Ethanol Group achieved record first quarter ethanol production volumes and saw E-85 sales progress to a first quarter record as well.
  • The Rail Group's utilization rate has increased for nine consecutive quarters and averaged 91.8 percent during the quarter.
  • The Rail Group's lower pre-tax income was due to gains on railcar sales being down $6.3 million this quarter versus the same time last year.
  • The Plant Nutrient Group experienced lower volumes than expected this quarter due to poor weather conditions at the start of the planting season.
  • This quarter, the Company has merged the former Turf & Specialty and Plant Nutrient groups. Going forward the group will be known as the Plant Nutrient Group.
  • The Company repurchased 631,000 of The Andersons' common shares during the quarter which offsets the shares issued as part of the acquisition of Auburn Bean & Grain.

Outlook

  • Solid fundamentals supporting the Company's core businesses continue into 2015.
  • Corn acres to be planted in 2015 are estimated to be approximately 89 million acres, which is down slightly from 2014. Bean acres to be planted are estimated to be roughly 85 million acres, which is up slightly from 2014.
  • The anticipated corn acres creates a good environment for all three of the Company's agricultural businesses.
  • Lower volume experienced by the Plant Nutrient Group during the past two quarters is expected to be substantially regained in the second quarter provided the weather is cooperative.
  • Relative to the first quarter, ethanol margins have improved which provides optimism for the Ethanol Group's performance going forward.
  • The Rail Group is expected to have strong results as it continues to benefit from increased lease and utilization rates.

Conference Call
The Company will host a webcast on Wednesday, May 6, 2015 at 11:00 A.M. ET, to discuss its performance.  To dial-in to the call, the number is 866-825-3209 (participant passcode is 28990476).  It is recommended that you call 10 minutes before the conference call begins. 

To access the webcast:  Click on the link: http://edge.media-server.com/m/p/dwpegcgm/lan/en.  Log on.  Click on the phone icon at the bottom of the "webcast window" on the left side of the screen.  Then, you will be provided with the conference call number and passcode.  Click the gear set icon (left of the telephone icon) and select 'Live Phone' to synchronize the presentation with the audio on your phone.  A replay of the call can also be accessed under the heading "Investor" on the Company website at www.andersonsinc.com.

Forward Looking Statements
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.

Company Description
Founded in Maumee, Ohio, in 1947, The Andersons is a diversified Company rooted in agriculture conducting business across North America in the grain, ethanol, plant nutrient and rail sectors. The Company also has a consumer retailing presence. For more information, visit The Andersons online at www.andersonsinc.com.

 

 

The Andersons, Inc.




Condensed Consolidated Statements of Income




(Unaudited)









Three months ended March 31,

(in thousands, except per share data)

2015


2014

Sales and merchandising revenues

$                 950,090


$                 1,003,294

Cost of sales and merchandising revenues

866,777


926,519

Gross profit

83,313


76,775

Operating, administrative and general expenses

78,604


70,985

Interest expense

6,039


6,002

Other income:




Equity in earnings of affiliates

3,261


20,501

Other income, net

3,107


19,612

Income before income taxes

5,038


39,901

Income tax provision

1,093


13,872

Net income

3,945


26,029

Net (loss) income attributable to the noncontrolling interests

(152)


3,321

Net income attributable to The Andersons, Inc.

$                      4,097


$                      22,708





Per common share:




Basic earnings attributable to The Andersons, Inc. common shareholders

$                        0.14


$                          0.80

Diluted earnings attributable to The Andersons, Inc. common shareholders

$                        0.14


$                          0.80

Dividends declared

$                        0.14


$                          0.11





 

 

 

The Andersons, Inc.




Reconciliation to Adjusted Net Income




(Unaudited)









Three months ended March 31,

(in thousands, except per share data)

2015


2014

Net income attributable to The Andersons, Inc.

$                     4,097


$                     22,708

Items impacting other income, net:




Partial redemption of investment in Lansing Trade Group

-


(10,656)

Total adjusting items

-


(10,656)

Adjusted net income attributable to The Andersons, Inc.

$                     4,097


$                     12,052









Diluted earnings attributable to The Andersons, Inc. common shareholders

$                       0.14


$                         0.80





Impact on diluted earnings per share

-


(0.38)

Adjusted diluted earnings per share

$                       0.14


$                         0.42





 

 

 

The Andersons, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)













(in thousands)

March 31, 2015


December 31, 2014


March 31, 2014

Assets






Current assets:






Cash and cash equivalents

$                    54,461


$                   114,704


$                      43,693

Restricted cash

685


429


652

Accounts receivable, net

209,928


183,059


191,972

Inventories

743,957


795,655


725,584

Commodity derivative assets – current

86,824


92,771


119,330

Deferred income taxes

12,878


7,337


9,104

Other current assets

65,017


60,492


48,214

Total current assets

1,173,750


1,254,447


1,138,549

Other assets:






Commodity derivative assets – noncurrent

243


507


1,365

Other assets, net

126,819


131,527


114,528

Pension asset

-


-


15,079

Equity method investments

222,082


226,857


232,396


349,144


358,891


363,368

Rail Group assets leased to others, net

313,095


297,747


237,534

Property, plant and equipment, net

451,638


453,607


386,132

Total assets

$              2,287,627


$                2,364,692


$                 2,125,583







Liabilities and equity






Current liabilities:






Short-term debt

$                 311,660


$                       2,166


$                    226,100

Accounts payable for grain

206,153


535,974


183,998

Other accounts payable

164,224


170,849


177,623

Customer prepayments and deferred revenue

130,254


99,617


124,981

Commodity derivative liabilities – current

55,401


64,075


32,153

Accrued expenses and other current liabilities

64,065


78,610


56,290

Current maturities of long-term debt

19,037


76,415


90,760

Total current liabilities

950,794


1,027,706


891,905







Other long-term liabilities

14,871


15,507


14,749

Commodity derivative liabilities – noncurrent

2,084


3,318


734

Employee benefit plan obligations

59,557


59,308


39,989

Long-term debt, less current maturities

323,258


298,638


306,161

Deferred income taxes

139,145


136,166


128,716

Total liabilities

1,489,709


1,540,643


1,382,254

Total equity

797,918


824,049


743,329

Total liabilities and equity

$              2,287,627


$                2,364,692


$                 2,125,583







 

 

 

The Andersons, Inc.

Segment Data

(Unaudited)















(in thousands)

Grain


Ethanol


Plant Nutrient


Rail


Retail


Other


Total

Three months ended March 31, 2015














Revenues from external customers

$                 585,162


$          138,180


$          153,951


$            44,216


$            28,581


$                      —


$               950,090

Gross profit

29,725


6,286


21,966


17,322


8,014



83,313

Equity in earnings of affiliates

1,549


1,712






3,261

Other income, net

833


42


1,035


839


97


261


3,107

Income (loss) before income taxes

740


5,131


424


10,313


(2,183)


(9,387)


5,038

Loss attributable to the noncontrolling interests

(3)


(149)






(152)

Income (loss) before income taxes attributable to The Andersons, Inc. (a)

$                         743


$               5,280


$                  424


$            10,313


$             (2,183)


$              (9,387)


$                   5,190















Three months ended March 31, 2014














Revenues from external customers

$                   583,159


$            188,820


$            151,355


$              52,302


$              27,658


$                      —


$              1,003,294

Gross profit

17,008


7,365


22,550


21,865


7,987



76,775

Equity in earnings of affiliates

1,884


18,617






20,501

Other income (expense), net

18,346


(226)


492


710


112


178


19,612

Income (loss) before income taxes

11,303


23,148


(36)


15,045


(2,335)


(7,224)


39,901

Income (loss) attributable to the noncontrolling interest

(3)


3,324






3,321

Income (loss) before income taxes attributable to The Andersons, Inc. (a)

$                     11,306


$              19,824


$                    (36)


$              15,045


$              (2,335)


$               (7,224)


$                   36,580















(a) Income (loss) before income taxes attributable to The Andersons, Inc. 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).

 

Photo - http://photos.prnewswire.com/prnh/20081104/CLTU081LOGO

SOURCE The Andersons, Inc.

For further information: Investor Relations Contact, Jim Burmeister, Phone: 419-891-5848, E-mail: Jim_Burmeister@andersonsinc.com


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