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The Andersons, Inc. Reports Fourth Quarter & Full Year Results

Full Year Earnings of $3.18 per Diluted Share

MAUMEE, Ohio, Feb. 11, 2014 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) today announced net income attributable to the company of $89.9 million, or $3.18 per diluted share, on $5.6 billion in revenues.  It should be noted that all prior period per share data in this release has been adjusted to reflect the company's February 2014 three-for-two stock split. Last year earnings were $79.5 million, or $2.82 per diluted share on revenues of $5.3 billion. The company earned $30.7 million in the fourth quarter of 2013, or $1.08 per diluted share, on revenues of $1.6 billion.  In the same three month period of 2012, the company reported net income of $15.0 million, or $0.53 per diluted share, on revenues of $1.7 billion.  

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

The Ethanol Group had record operating income of $50.6 million in 2013, compared to a loss of $3.7 million in the prior year. The significant increase in operating income was primarily due to higher ethanol margins, which were impacted by solid ethanol export demand, and lower corn costs.  The ethanol plants also benefitted from improved production rates and increased co-product sales of corn oil, E-85 and distillers dried grains. Total 2013 revenues were $832 million, up from $743 million in 2012. The revenue increase was due to both a full year of production at the Denison Iowa plant and an increase in the average price of ethanol. The group's fourth quarter results were a record not only for the fourth quarter, but for any quarter. The operating income was $26.6 million on revenues of $197 million. During the same three month period of 2012, a loss of $0.8 million was incurred on revenues of $215 million.

The Grain Group's 2013 operating income was $46.8 million, compared to $63.6 million in the prior year.  The group had considerably lower space income in 2013, as a result of the drought, but increased gross profit on sales, primarily due to growth. Lansing Trade Group contributed significantly to the Grain Group's result. Total revenues for the Grain Group were $3.6 billion and $3.3 billion in 2013 and 2012, respectively. Revenues increased due to greater sales volume, as average grain prices actually declined. For the fourth quarter, the group's operating income was $22.1 million on revenues of $1.1 billion. In the same three month period of 2012, the group had operating income of $18.1 million on revenues of $1.2 billion. Both space income and gross profit on sales in the fourth quarter were higher than the prior year.         

The Rail Group achieved operating income of $42.8 million both this year and last year. Gross profit from the leasing business was significantly higher than the prior year due to higher lease and utilization rates. The full year utilization rate increased 1.5 percent in 2013 to 86.1 percent, and utilization ended the year at 88.3 percent. The group recognized $19.4 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions. In 2012, the company recognized gains of $23.7 million on similar transactions. Revenues of $165 million for 2013 were higher than the $156 million reported in the prior year. The Rail Group had operating income of $6.2 million in the fourth quarter on revenues of $32 million.  In 2012, operating income for the same three month period was $8.6 million on revenues of $29 million. The prior year fourth quarter results included a $2.8 million lease settlement.    

The Plant Nutrient Group finished the year with operating income of $27.3 million on revenues of $709 million. In 2012, the group's operating income was $39.3 million and revenues were $797 million. Margins and volume in 2013 were lower than the prior year due to flat to declining markets, but were still solid. For the fourth quarter, the group's operating income was $6.2 million on $171 million of revenues as many nutrient prices reset and they experienced a good fall season. Last year the group had operating income of $4.7 million during the same three month period on revenues of $178 million.       

The Turf & Specialty Group's full year operating income was a record $4.7 million on revenues of $141 million. In 2012, the group had operating income of $2.2 million, and total revenues were $131 million. The group incurred an operating loss of $1.4 million in the fourth quarter on revenues of $23 million. Last year, the same period had an operating loss of $1.2 million on revenues of $21 million. During the quarter, the group acquired the assets of the Cycle Group, Inc., a production facility in North Carolina that expanded the group's presence in the granular business.      

The Retail Group had an operating loss of $7.5 million in 2013, which included $4.7 million in one-time costs.  In the prior year, the group's operating loss was $4.0 million, which included $1.1 million in one-time expenses. Excluding one-time items, the group's operating results were consistent with the prior year. The Retail Group's fourth quarter operating income was a loss of $3.9 million, which included a $3.9 million asset impairment for two stores.

"I am proud of our 2013 results and the team we have here at The Andersons," CEO Mike Anderson stated. "The Ethanol Group had exceptional results; they worked to simultaneously optimize margins, yields, production rates and co-product sales. Quite simply, the Ethanol Group hit the ball out of the park. The Rail Group nearly matched its record income from last year, even with a $4.3 million decrease in gains on railcar sales. Despite the unfavorable impacts of the 2012 drought, the Grain Group had good results, in part due to the strong earnings of Lansing Trade Group.  The Plant Nutrient Group also had good results, as they managed through the nutrient price reset well. Lastly our Turf & Specialty Group had a record year as they continued to focus on their proprietary product strategy," Mr. Anderson added. "In the last year we have demonstrated our continuing commitment to growth. We acquired Thompsons Limited through a 50/50 joint venture with Lansing Trade Group, which expanded our territory into Canada. We also expanded our railcar repair business through both the acquisition of Mile Rail and the opening of the Maumee paint facility. Lastly, as mentioned earlier, we acquired the assets of the Cycle Group at the end of 2013."  

The company will host a webcast on Wednesday, February 12, 2014 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 rooted in agriculture. Founded in Maumee, Ohio, in 1947, the company conducts business across North America in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing.

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 December 31,

Twelve months ended December 31,

(in thousands, except per share data)

2013

2012

2013

2012






Sales and merchandising revenues

$              1,584,266

$           1,680,641

$            5,604,574

$        5,272,010

Cost of sales and merchandising revenues

1,474,689

1,589,472

5,239,349

4,914,005

Gross profit

109,577

91,169

365,225

358,005

Operating, administrative and general expenses

85,768

69,590

278,433

246,929

Interest expense

4,253

5,963

20,860

22,155

Other income:





Equity in earnings of affiliates

28,714

1,081

68,705

16,487

Other income, net

3,253

5,316

14,876

14,725

Income before income taxes

51,523

22,013

149,513

120,133

Income tax provision

16,904

7,838

53,811

44,568

Net income

34,619

14,175

95,702

75,565

Net income (loss) attributable to the noncontrolling interests

3,958

(815)

5,763

(3,915)

Net income attributable to The Andersons, Inc.

$                    30,661

$                14,990

$                  89,939

$             79,480






Per common share:





Basic earnings attributable to The Andersons, Inc. common

   shareholders

$                        1.09

$                    0.54

$                       3.20

$                 2.85

Diluted earnings attributable to The Andersons, Inc. common

   shareholders

$                        1.08

$                    0.53

$                       3.18

$                 2.82

Dividends paid

$                        0.11

$                    0.10

$                       0.43

$                 0.40

 

 


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






December 31, 2013


December 31, 2012

Assets




Current assets:




Cash and cash equivalents

$               309,085


$                138,218

Restricted cash

408


398

Accounts receivable, net

173,930


208,877

Inventories

614,923


776,677

Commodity derivative assets – current

71,319


103,105

Deferred income taxes

4,931


15,862

Other current assets

47,188


54,016

Total current assets

1,221,784


1,297,153

Other assets:




Commodity derivative assets – noncurrent

246


1,906

Other assets, net

118,010


105,129

Pension assets

14,328


-

Equity method investments

291,109


190,908


423,693


297,943

Railcar assets leased to others, net

240,621


228,330

Property, plant and equipment, net

387,458


358,878

Total assets

$            2,273,556


$             2,182,304





Liabilities and equity




Current liabilities:




Borrowings under short-term line of credit

$                           -


$                  24,219

Accounts payable for grain

592,183


582,653

Other accounts payable

154,599


165,201

Customer prepayments and deferred revenue

59,304


105,410

Commodity derivative liabilities – current

63,954


33,277

Accrued expenses and other current liabilities

70,295


66,902

Current maturities of long-term debt

51,998


15,145

Total current liabilities

992,333


992,807





Other long-term liabilities

15,386


18,406

Commodity derivative liabilities – noncurrent

6,644


1,134

Employee benefit plan obligations

39,477


53,131

Long-term debt, less current maturities

375,213


427,243

Deferred income taxes

120,082


78,138

Total liabilities

1,549,135


1,570,859

Total equity

724,421


611,445

Total liabilities and equity

$            2,273,556


$             2,182,304

 

 


Grain

Ethanol

Plant

Nutrient

Rail

Turf &

Specialty

Retail

Other

Total

Three months ended December 31, 2013









Revenues from external customers

$          1,124,265

$         197,032

$  170,732

$            32,306

$      22,557

$            37,374

$—

$          1,584,266










Gross profit

44,570

13,323

21,979

12,328

6,542

10,835

109,577










Equity in earnings of affiliates

8,182

20,532

28,714










Other income (expense), net

682

(66)

634

987

105

185

726

3,253










Income (loss) before income taxes

22,127

30,577

6,240

6,171

(1,369)

(3,861)

(8,362)

51,523










Income (loss) attributable to the noncontrolling interests

(3)

3,961

3,958










Operating income (loss) (a)

$                22,130

$            26,616

$       6,240

$              6,171

$       (1,369)

$            (3,861)

$            (8,362)

$                47,565










Three months ended December 31, 2012









Revenues from external customers

$             1,197,376

$            214,867

$    177,732

$              28,818

$        20,545

$              41,303

$—

1,680,641










Gross profit

36,973

6,129

19,980

9,709

6,241

12,137

91,169










Equity in earnings (loss) of affiliates

6,374

(5,293)

1,081










Other income, net

706

16

266

3,841

113

158

216

5,316










Income (loss) before income taxes

18,078

(1,615)

4,714

8,553

(1,168)

(861)

(5,688)

22,013










Loss attributable to the noncontrolling interest

(815)

(815)










Operating income (loss) (a)

$                  18,078

$                 (800)

$        4,714

$                8,553

$         (1,168)

$                 (861)

$             (5,688)

22,828










Twelve months ended December 31, 2013









Revenues from external customers

$          3,617,943

$         831,965

$  708,654

$         164,794

$    140,512

$         140,706

$—

$          5,604,574










Gross profit

118,517

32,512

86,682

58,864

29,289

39,361

365,225










Equity in earnings of affiliates

33,122

35,583

68,705










Other income, net

2,120

399

1,093

7,666

690

501

2,407

14,876










Income (loss) before income taxes

46,794

56,374

27,275

42,785

4,744

(7,534)

(20,925)

149,513










Income (loss) attributable to the noncontrolling interests

(11)

5,774

5,763










Operating income (loss) (a)

46,805

50,600

27,275

42,785

4,744

(7,534)

(20,925)

143,750










Twelve months ended December 31, 2012









Revenues from external customers

$             3,293,632

$            742,929

$    797,033

$            156,426

$      131,026

$            150,964

$—

$             5,272,010










Gross profit

117,180

14,673

98,252

56,729

27,026

44,145

358,005










Equity in earnings (loss) of affiliates

29,080

(12,598)

5

16,487










Other income, net

2,548

53

1,917

7,136

784

554

1,733

14,725










Income (loss) before income taxes

63,597

(7,635)

39,254

42,841

2,216

(3,951)

(16,189)

120,133










Loss attributable to the noncontrolling interest

(3,915)

(3,915)










Operating income (loss) (a)

$                  63,597

$              (3,720)

$      39,254

$              42,841

$          2,216

$              (3,951)

$           (16,189)

$                124,048










(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.

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