Attached files
| file | filename |
|---|---|
| 8-K - LIVE FILING - Andersons, Inc. | htm_43450.htm |
NEWS RELEASE
Contact: Nicholas C. Conrad VP, Finance & Treasurer |
Date: |
November 8, 2011 |
Phone: 419-891-6415
E-mail: nick—conrad@andersonsinc.com
THE ANDERSONS, INC. REPORTS THIRD QUARTER RESULTS
Earnings Of $ 0.59 Per Diluted Share
Record Earnings Of $3.92 Per Diluted Share Through September
MAUMEE, OHIO, November 8, 2011—The Andersons, Inc. (Nasdaq: ANDE) today announced third quarter net income attributable to the company of $10.9 million, or $0.59 per diluted share, on revenues of $939 million. In the third quarter of 2010, the company reported results of $1.4 million, or $0.08 per diluted share, on revenues of $707 million. For the first nine months of 2011, the company earned a record $73.4 million, or $3.92 per diluted share, on revenues of $3.3 billion. In the same period of 2010, The Andersons reported results of $38.8 million, or $2.09 per diluted share, on $2.2 billion of revenues. The majority of the year to year revenue increase relates to rising prices in our agricultural businesses. It is important to remember that revenues in commodity-based businesses may not serve as good indicators of income or economic performance.
The Grain & Ethanol Group reported third quarter operating income of $12.8 million, which was significantly higher than its year earlier result of $2.5 million. The group had record operating income through September of $76.8 million, in comparison to operating income of $42.8 million for the same period in 2010.
The Grain Division reported operating income of $8.3 million in the third quarter of 2011 versus $3.2 million for the same period last year. The division benefited from continued strong space income and record third quarter earnings from its investment in Lansing Trade Group. Revenues for the Grain Division were $539 million and $389 million for the third quarter of 2011 and 2010, respectively. Revenues increased significantly due to higher grain prices. The Grain Division’s operating income for the first nine months of the year was $60.0 million on revenues of $2.0 billion. Last year, its operating income through September was $28.8 million on revenues of $1.2 billion.
The Ethanol Division earned an operating income of $4.4 million in the third quarter. This compares to a loss of $0.8 million during the same period of the prior year. The higher income is the result of an increase in the company’s earnings from the investment in three ethanol limited liability company affiliates. Total revenues for the quarter were $179 million. In comparison, the division’s revenues for the same period last year were $109 million. Revenues increased primarily due to higher ethanol prices. The Ethanol Division’s operating income through September was $16.8 million on revenues of $477 million. In the prior year, its operating income for the same period was $14.0 million on revenues of $341 million.
The Plant Nutrient Group achieved operating income of $6.6 million during the third quarter of 2011 on revenues of $138 million. In the same three month period of 2010, the group had an operating income of $1.5 million on revenues of $129 million. This improved performance was due primarily to an increase in margin. Margins were strong primarily as a result of nutrient price appreciation. Total volume was down, year over year, primarily due to re-stocking of the nutrient pipeline some of which occurred in the prior quarter. The group’s first nine months’ operating income this year was $35.8 million on $521 million of revenues. Last year, its operating income through the first nine months was $21.2 million on revenues of $461 million. Increased revenues this year are due to higher selling prices.
The Rail Group had an operating income of $1.1 million in the third quarter on revenues of $24 million. In the same three month period of 2010, the group earned $0.1 million and revenues were $22 million. This quarter, the group recognized $0.7 million in gains on sales of railcars and related leases, whereas last year a gain of $1.3 million was recorded. The average utilization rate for the quarter was 85 percent in comparison to 73 percent for the same period last year. The group’s first nine months operating income this year was $7.4 million on $82 million of revenues. In 2010, operating income through September was $1.2 million and revenues were $73 million. These results included gains on sales of railcars and related leases of $7.7 million and $5.6 million in 2011 and 2010, respectively.
The Turf & Specialty Group had an operating loss of $1.2 million in the third quarter this year on $23 million of revenues. Last year, the group reported an operating loss of $0.3 million on $23 million of revenues for the same period. Both turf products tonnage and gross profit per ton decreased during the third quarter, in comparison to the prior year. Through the first nine months of 2011, the group’s operating income was $3.8 million on $112 million of revenues. Last year, its operating income was $4.9 million for the same period on revenues of $106 million.
The Retail Group had an operating loss of $1.2 million in the third quarter of 2011 on revenues of $36 million. In the comparable period last year, the group’s operating loss was $1.7 million and total revenues were $34 million. Through nine months, the group recorded a loss of $2.0 million and total revenues of $112 million. Last year through September the group lost $2.4 million on total revenues of $108 million.
“We are pleased to be able to report record year to date earnings. Our earnings continue to be led by our Grain & Ethanol and Plant Nutrient Groups,” CEO Mike Anderson stated. “The performance of the operating teams in this positive agricultural environment has resulted in strong returns on all assets including acquisitions made in recent years. I am particularly proud of the Grain & Ethanol Group’s record results this year, which have benefited from great space income and the record year to date results of Lansing Trade Group,” added Mr. Anderson.
The company will host a webcast on Wednesday, November 9, 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 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 | Nine Months ended | |||||||||||||||
| September 30 | September 30 | |||||||||||||||
| (in thousands, except per share data) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Sales and merchandising revenues |
$ | 938,660 | $ | 706,825 | $ | 3,278,501 | $ | 2,239,822 | ||||||||
Cost of sales and merchandising revenues |
873,696 | 653,716 | 3,012,080 | 2,040,609 | ||||||||||||
Gross profit |
64,964 | 53,109 | 266,421 | 199,213 | ||||||||||||
Operating, administrative and general expenses |
54,486 | 50,143 | 165,923 | 146,653 | ||||||||||||
Interest expense |
5,711 | 4,625 | 20,609 | 13,923 | ||||||||||||
Other income (loss): |
||||||||||||||||
Equity in earnings (loss) of affiliates |
9,731 | (1,096 | ) | 29,489 | 15,476 | |||||||||||
Other income, net |
1,217 | 3,561 | 5,541 | 9,096 | ||||||||||||
Income before income taxes |
15,715 | 806 | 114,919 | 63,209 | ||||||||||||
Income tax provision |
4,484 | 438 | 40,265 | 24,406 | ||||||||||||
Net income |
11,231 | 368 | 74,654 | 38,803 | ||||||||||||
Net (income) loss attributable to the
noncontrolling interest |
(306 | ) | 1,026 | (1,245 | ) | 25 | ||||||||||
Net income attributable to The Andersons, Inc. |
$ | 10,925 | $ | 1,394 | $ | 73,409 | $ | 38,828 | ||||||||
Per common share |
||||||||||||||||
Basic earnings attributable to The
Andersons, Inc. common shareholders |
$ | 0.59 | $ | 0.08 | $ | 3.96 | $ | 2.11 | ||||||||
Diluted earnings attributable to The
Andersons, Inc. common shareholders |
$ | 0.59 | $ | 0.08 | $ | 3.92 | $ | 2.09 | ||||||||
Dividends paid |
$ | 0.1100 | $ | 0.0900 | $ | 0.3300 | $ | 0.2675 | ||||||||
| The Andersons, Inc. | ||||||||||||
| Consolidated Balance Sheets | ||||||||||||
| (Unaudited) | ||||||||||||
| September 30 | December 31 | September 30 | ||||||||||
| (in thousands) | 2011 | 2010 | 2010 | |||||||||
Assets |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 38,510 | $ | 29,219 | $ | 25,732 | ||||||
Restricted cash |
11,920 | 12,134 | 2,915 | |||||||||
Accounts receivable, net |
158,757 | 152,227 | 143,591 | |||||||||
Inventories |
458,314 | 647,189 | 432,448 | |||||||||
Commodity derivative assets — current |
143,010 | 246,475 | 177,100 | |||||||||
Other current assets |
58,792 | 51,314 | 48,653 | |||||||||
Total current assets |
869,303 | 1,138,558 | 830,439 | |||||||||
Investments and other assets |
237,128 | 223,204 | 205,363 | |||||||||
Commodity derivative assets — noncurrent |
3,907 | 18,113 | 9,851 | |||||||||
Railcar assets leased to others, net |
183,346 | 168,483 | 169,694 | |||||||||
Property, plant and equipment, net |
164,893 | 151,032 | 147,184 | |||||||||
Total assets |
$ | 1,458,577 | $ | 1,699,390 | $ | 1,362,531 | ||||||
Liabilities and shareholders’ equity |
||||||||||||
Current liabilities: |
||||||||||||
Borrowings under short-term line of credit |
$ | 105,000 | $ | 241,100 | $ | 101,400 | ||||||
Commodity derivative liabilities — current |
55,354 | 57,621 | 47,968 | |||||||||
Other current liabilities |
393,128 | 538,022 | 407,917 | |||||||||
Total current liabilities |
553,482 | 836,743 | 557,285 | |||||||||
Deferred items and other long-term liabilities |
130,394 | 117,984 | 97,107 | |||||||||
Commodity derivative liabilities — noncurrent |
6,903 | 3,279 | 1,936 | |||||||||
Long-term debt, less current maturities |
235,729 | 276,825 | 264,349 | |||||||||
Shareholders’ equity |
532,069 | 464,559 | 441,854 | |||||||||
Total liabilities and shareholders’ equity |
$ | 1,458,577 | $ | 1,699,390 | $ | 1,362,531 | ||||||
Segment Data |
||||||||||||||||||||||||||||||||
| Plant | Turf & | |||||||||||||||||||||||||||||||
| Grain | Ethanol | Rail | Nutrient | Specialty | Retail | Other | Total | |||||||||||||||||||||||||
Quarter ended September 30, 2011 |
||||||||||||||||||||||||||||||||
Revenues from external customers |
$ | 538,723 | $ | 179,331 | $ | 24,067 | $ | 137,637 | $ | 23,051 | $ | 35,851 | $ | - | $ | 938,660 | ||||||||||||||||
Gross Profit |
20,757 | 3,079 | 5,180 | 20,977 | 4,714 | 10,257 | — | 64,964 | ||||||||||||||||||||||||
Equity in earnings of affiliates |
6,459 | 3,270 | — | 2 | — | — | — | 9,731 | ||||||||||||||||||||||||
Other income (loss), net |
652 | 38 | 604 | 282 | 167 | 130 | (656 | ) | 1,217 | |||||||||||||||||||||||
Income (loss) before income taxes |
8,313 | 4,749 | 1,123 | 6,622 | (1,245 | ) | (1,233 | ) | (2,614 | ) | 15,715 | |||||||||||||||||||||
Income attributable to the
noncontrolling interest |
— | (306 | ) | — | — | — | — | — | (306 | ) | ||||||||||||||||||||||
Operating income (loss) (a) |
8,313 | 4,443 | 1,123 | 6,622 | (1,245 | ) | (1,233 | ) | (2,614 | ) | 15,409 | |||||||||||||||||||||
Quarter ended September 30, 2010 |
||||||||||||||||||||||||||||||||
Revenues from external customers |
$ | 388,981 | $ | 109,264 | $ | 22,314 | $ | 129,109 | $ | 23,156 | $ | 34,001 | $ | — | 706,825 | |||||||||||||||||
Gross Profit |
18,449 | 2,923 | 2,577 | 14,226 | 5,217 | 9,717 | — | 53,109 | ||||||||||||||||||||||||
Equity in earnings (loss) of affiliates |
1,538 | (2,635 | ) | — | 1 | — | — | — | (1,096 | ) | ||||||||||||||||||||||
Other income, net |
664 | 45 | 1,782 | 233 | 244 | 128 | 465 | 3,561 | ||||||||||||||||||||||||
Income (loss) before income taxes |
3,220 | (1,790 | ) | 85 | 1,462 | (291 | ) | (1,651 | ) | (229 | ) | 806 | ||||||||||||||||||||
Loss attributable to the
noncontrolling interest |
— | 1,026 | — | — | — | — | — | 1,026 | ||||||||||||||||||||||||
Operating income (loss) (a) |
3,220 | (764 | ) | 85 | 1,462 | (291 | ) | (1,651 | ) | (229 | ) | 1,832 | ||||||||||||||||||||
| Nine months ended September 30, 2011 |
||||||||||||||||||||||||||||||||
Revenues from external customers |
$ | 1,973,820 | $ | 476,783 | $ | 82,478 | $ | 521,109 | $ | 111,872 | $ | 112,439 | $ | - | 3,278,501 | |||||||||||||||||
Gross Profit |
103,529 | 12,373 | 18,712 | 78,312 | 20,458 | 33,037 | — | 266,421 | ||||||||||||||||||||||||
Equity in earnings of affiliates |
18,117 | 11,366 | — | 6 | — | — | — | 29,489 | ||||||||||||||||||||||||
Other income (loss), net |
1,754 | 133 | 2,198 | 541 | 716 | 430 | (231 | ) | 5,541 | |||||||||||||||||||||||
Income (loss) before income taxes |
59,955 | 18,089 | 7,432 | 35,813 | 3,811 | (2,020 | ) | (8,161 | ) | 114,919 | ||||||||||||||||||||||
Income attributable to the
noncontrolling interest |
— | (1,245 | ) | — | — | — | — | — | (1,245 | ) | ||||||||||||||||||||||
Operating income (loss) (a) |
59,955 | 16,844 | 7,432 | 35,813 | 3,811 | (2,020 | ) | (8,161 | ) | 113,674 | ||||||||||||||||||||||
| Nine months ended September 30, 2010 |
||||||||||||||||||||||||||||||||
Revenues from external customers |
$ | 1,151,984 | $ | 340,830 | $ | 72,639 | $ | 460,671 | $ | 105,971 | $ | 107,727 | $ | — | 2,239,822 | |||||||||||||||||
Gross Profit |
66,328 | 11,050 | 10,930 | 57,785 | 21,689 | 31,431 | — | 199,213 | ||||||||||||||||||||||||
Equity in earnings of affiliates |
6,869 | 8,602 | — | 5 | — | — | — | 15,476 | ||||||||||||||||||||||||
Other income, net |
1,918 | 88 | 4,090 | 866 | 1,038 | 404 | 692 | 9,096 | ||||||||||||||||||||||||
Income (loss) before income taxes |
28,791 | 13,978 | 1,225 | 21,198 | 4,859 | (2,400 | ) | (4,442 | ) | 63,209 | ||||||||||||||||||||||
Loss attributable to the
noncontrolling interest |
— | 25 | — | — | — | — | — | 25 | ||||||||||||||||||||||||
Operating income (loss) (a) |
28,791 | 14,003 | 1,225 | 21,198 | 4,859 | (2,400 | ) | (4,442 | ) | 63,234 | ||||||||||||||||||||||
| (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) loss. |
||||||||||||||||||||||||||||||||