The Andersons, Inc. Reports Third Quarter Results

              The Andersons, Inc. Reports Third Quarter Results

Third Quarter Earnings of $0.90 per Diluted Share

Rail Group Leads Earning Results

PR Newswire

MAUMEE, Ohio, Nov. 5, 2012

MAUMEE, Ohio, Nov. 5, 2012 /PRNewswire/ --The Andersons, Inc. (NASDAQ: ANDE)
today announced third quarter net income attributable to the company of $16.9
million, or $0.90 per diluted share, on revenues of $1.1 billion. In the third
quarter of 2011, the company reported results of $10.9 million, or $0.59 per
diluted share, on revenues of $939 million. For the first nine months of 2012,
the company earned $64.5 million, or $3.43 per diluted share, on revenues of
$3.6 billion. In the same period of 2011, The Andersons reported results of
$73.4 million, or $3.92 per diluted share, on $3.3 billion of revenues. 

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

The Rail Group achieved record third quarter operating income of $19.1 million
on revenues of $60 million. In the same three month period of 2011, the group
earned $1.1 million and revenues were $24 million. This quarter, the group
recognized $13.5 million in gains on sales of railcars and related leases and
non-recourse transactions (where the company continues to provide car
management services to the purchaser and typically holds an option to purchase
the railcars at the end of the assigned lease). In the third quarter of 2011,
the company recognized a gain on similar transactions of $0.7 million. Gross
profit from the leasing business was significantly higher due primarily to an
increase in the average lease rate. The average utilization rate for the
quarter was approximately 84 percent, which is down slightly from 85 percent
last year. The rail fleet has increased to approximately 23,400 cars from
22,300 last year. The group's first nine months operating income was $34.3
million on $128 million of revenues. In 2011, operating income through
September was $7.4 million and revenues were $82 million. These results
include gains similar to those aforementioned of $22.2 million and $7.7
million in 2012 and 2011, respectively.

The Grain Group had operating income of $10.8 million in the third quarter of
2012 versus $8.3 million for the same period last year. The group benefited
from an early harvest, which resulted in higher gross profit on sales in
comparison to the prior year third quarter. Space income was down
considerably, as expected. This was offset by record third quarter earnings
from the company's investment in Lansing Trade Group. Revenues for the Grain
Group were $677 million and $539 million for the third quarter of 2012 and
2011, respectively. Revenues increased primarily due to an increase in the
bushels sold. The Grain Group's operating income for the first nine months of
the year was $45.5 million on revenues of $2.1 billion. Last year, its
operating income through September was $60.0 million on revenues of $2.0
billion. As announced last week, the group has entered into an agreement to
purchase the majority of the grain and agronomy assets of Green Plains Grain
Company, LLC, a subsidiary of Green Plains Renewable Energy, Inc. This
acquisition includes seven facilities in Iowa and five in Tennessee, with a
combined grain storage capacity of approximately 32 million bushels, which
increases the group's storage capacity by nearly 30 percent. The Iowa
locations also have 30,000 tons of fertilizer storage space. 

The Plant Nutrient Group's third quarter operating income was $0.8 million on
revenues of $135 million. In the same three month period of 2011, the group
had operating income of $6.6 million on revenues of $138 million. Margins in
the third quarter were solid; however, in the prior year margins were
significantly higher. The group's first nine months' operating income was
$34.5 million on $619 million of revenues. Last year, its operating income
through September was $35.8 million on revenues of $521 million. Increased
revenues this year are due to both increased volume and higher selling prices.

The Ethanol Group had an operating loss of $0.9 million in the third quarter,
compared to earnings of $4.4 million during the same period last year. The
loss was primarily the result of a decrease in the company's earnings from its
ethanol investment affiliates, whose income continues to be significantly
impacted by lower ethanol margins that have resulted from increased corn costs
and lower ethanol demand. Partially offsetting the group's lower margins are
service income and income from co-products such as corn-oil, DDGs, E-85, and
CO2. Total revenues for the quarter in 2012 and 2011 were $210 million and
$179 million, respectively. Revenues were up due to the addition of the
Denison, Iowa facility in May. The group's operating loss through September
was $2.9 million on revenues of $528 million. Last year, its nine month
operating income was $16.8 million on revenues of $477 million.

The Turf & Specialty Group had an operating loss of $1.6 million in the third
quarter on $22 million of revenues. Last year, the group reported an operating
loss of $1.2 million on $23 million of revenues for the same period. Through
the first nine months of 2012, the group's operating income was $3.4 million
on $110 million of revenues. Last year, its operating income was $3.8 million
for the same period on revenues of $112 million. 

The Retail Group had an operating loss of $1.8 million in the third quarter of
2012 on revenues of $35 million. In the comparable period last year, the
group's operating loss was $1.2 million and total revenues were $36 million.
Through nine months, the group recorded a loss of $3.1 million and total
revenues of $110 million. Last year through September the group lost $2.0
million on total revenues of $112 million.

"We had a great quarter, due in a large part to the exceptional results seen
in our Rail Group, which has had record results every quarter this year due to
skillful management of its railcar assets," CEO Mike Anderson stated. "We
also had good results in the Grain Group, although some of its income has been
accelerated due to the early harvest. The Grain Group's performance was
impacted by record Lansing Trade Group earnings," added Mr. Anderson. "Our
expectations for the remainder of the year still remain tempered by the
drought, which will continue to impact our grain and ethanol businesses
through the first half of 2013. Our recent acquisitions and capital
expansions, however, will pay dividends in the future. These include the
acquisition of Mt. Pulaski Products, which was finalized last week, breaking
ground on a new, state of the art, railcar blast and paint facility, the
recent opening of our Anselmo, Nebraska grain elevator, and the previously
mentioned Green Plains Grain Company, LLC acquisition. We will effectively
manage through the 2012 drought, as we have to date, and will continue our
focus on long term earnings growth," concluded Mr. Anderson.

The company will host a webcast on Tuesday, November 6, 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 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.
Condensed Consolidated Balance Sheets
(Unaudited)(In thousands)
                       September 30,    December 31,     September 30,
                       2012             2011             2011
Assets
Current assets:
Cash and cash          $         $         $       
equivalents             80,370         20,390          38,510
Restricted cash        160              18,651           11,920
Accounts receivable,   199,158          167,640          158,757
net
Inventories            682,292          760,459          458,314
Commodity derivative   166,264          83,950           143,010
assets – current
Deferred income taxes  20,627           21,483           17,233
Other current assets   41,568           34,649           41,559
Total current assets   1,190,439        1,107,222        869,303
Other assets:
Commodity derivative   7,047            2,289            3,907
assets – noncurrent
Other assets, net      67,801           53,327           48,010
Equity method          190,057          199,061          189,118
investments
                       264,905          254,677          241,035
Railcar assets leased  252,702          197,137          183,346
to others, net
Property, plant and    283,394          175,087          164,893
equipment, net
Total assets           $           $          $       
                       1,991,440       1,734,123        1,458,577
Liabilities and equity
Current liabilities:
Borrowings under       $         $         $       
short-term line of     275,522           71,500         105,000
credit
Accounts payable for   250,066          391,905          77,813
grain
Other accounts payable 204,347          142,762          137,872
Customer prepayments   77,278           79,557           82,785
and deferred revenue
Commodity derivative   43,589           15,874           55,354
liabilities – current
Accrued expenses and
other current          53,631           60,445           49,487
liabilities
Current maturities of  32,655           32,208           45,171
long-term debt
Total current          937,088          794,251          553,482
liabilities
Other long-term        14,083           43,014           35,421
liabilities
Commodity derivative
liabilities –          590              1,519            6,903
noncurrent
Employee benefit plan  49,478           52,972           30,132
obligations
Long-term debt, less   312,404          238,885          235,729
current maturities
Deferred income taxes  75,377           64,640           64,841
Total liabilities      1,389,020        1,195,281        926,508
Total equity           602,420          538,842          532,069
Total liabilities and  $           $          $       
equity                 1,991,440       1,734,123        1,458,577

The Andersons, Inc.
Consolidated Statements of Income
(Unaudited)
                     Three months ended September Nine months ended September
                      30,                          30,
(in thousands, except
per share data)       2012             2011        2012          2011
Sales and             $          $      $        $   
merchandising         1,138,402        938,660  3,591,369    3,278,501
revenues
Cost of sales and
merchandising         1,060,086        873,696     3,324,533     3,012,080
revenues
Gross profit          78,316           64,964      266,836       266,421
Operating,
administrative and    58,029           54,486      177,339       165,923
general expenses
Interest expense      5,482            5,711       16,192        20,609
Other income:
Equity in earnings of 6,027            9,731       15,406        29,489
affiliates
Other income, net     3,492            1,217       9,409         5,541
Income before income  24,324           15,715      98,120        114,919
taxes
Income tax provision  9,133            4,484       36,730        40,265
Net income            15,191           11,231      61,390        74,654
Net income (loss)
attributable to the   (1,693)          306         (3,100)       1,245
noncontrolling
interests
Net income            $         $      $       $      
attributable to The     16,884        10,925   64,490   73,409
Andersons, Inc.
Per common share:
Basic earnings                         $      $      
attributable to The   $                          $      
Andersons, Inc.           0.91    0.59       3.47            3.96
common shareholders
Diluted earnings                       $      $      
attributable to The   $                          $      
Andersons, Inc.           0.90    0.59       3.43            3.92
common shareholders
                      $         $      $       $      
Dividends paid            0.15                       0.33
                                       0.11       0.45



Segment Data
               Grain      Ethanol  Plant    Rail     Turf &    Retail   Other     Total
                                   Nutrient          Specialty
Quarter ended
September 30,
2012
Revenues from  $       $      $        $      $     $                $  
external       677,484    209,634 135,144 59,703         34,928  —         1,138,402
customers                                            21,509
Gross profit   21,166     3,846    15,297   22,892   5,296     9,819    —         78,316
Equity in
earnings       9,249      (3,224)  2        —        —         —        —         6,027
(loss) of
affiliates
Other income,  526        1        523      1,695    181       117      449       3,492
net
Income (loss)
before income  10,807     (2,629)  759      19,071   (1,571)   (1,769)  (344)     24,324
taxes
Loss
attributable
to the         —          (1,693)  —        —        —         —        —         (1,693)
noncontrolling
interests
Operating      $      $     $     $      $     $     $      $    
income (loss)  10,807            759   19,071         (1,769)  (344)      26,017
(a)                       (936)                      (1,571)
Quarter ended
September 30,
2011
Revenues from  $      $     $       $     $     $               $    
external       538,723            137,637 24,067        35,851  $—         938,660
customers                 179,331                    23,051
Gross profit   20,757     3,079    20,977   5,180    4,714     10,257   —         64,964
Equity in
earnings of    6,459      3,270    2        —        —         —        —         9,731
affiliates
Other income   652        38       282      604      167       130      (656)     1,217
(expense), net
Income (loss)
before income  8,313      4,749    6,622    1,123    (1,245)   (1,233)  (2,614)   15,715
taxes
Income
attributable
to the         —          306      —        —        —         —        —         306
noncontrolling
interest
Operating      $      $     $     $     $     $     $       $    
income (loss)    8,313        6,622    1,123       (1,233) (2,614)   
(a)                       4,443                      (1,245)                      15,409
               Grain      Ethanol  Plant    Rail     Turf &    Retail   Other     Total
                                   Nutrient          Specialty
Nine months
ended
September 30,
2012
Revenues from  $         $      $        $       $     $                 $  
external       2,096,256 528,062 619,301 127,608         109,661 $—        3,591,369
customers                                            110,481
Gross profit   80,207     8,544    78,272   47,020   20,785    32,008   —         266,836
Equity in
earnings       22,706     (7,305)  5        —        —         —        —         15,406
(loss) of
affiliates
Other income,  1,842      37       1,651    3,295    671       396      1,517     9,409
net
Income (loss)
before income  45,519     (6,020)  34,540   34,288   3,384     (3,090)  (10,501)  98,120
taxes
Loss
attributable
to the         —          (3,100)  —        —        —         —        —         (3,100)
noncontrolling
interests
Operating      $      $     $       $      $     $     $         $    
income (loss)  45,519             34,540  34,288        (3,090)  (10,501) 101,220
(a)                       (2,920)                    3,384
Nine months
ended
September 30,
2011
Revenues from  $        $     $       $     $     $                $    
external       1,973,820         521,109 82,478         112,439 $—        3,278,501
customers                 476,783                    111,872
Gross profit   103,529    12,373   78,312   18,712   20,458    33,037   —         266,421
Equity in
earnings of    18,117     11,366   6        —        —         —        —         29,489
affiliates
Other income   1,754      133      541      2,198    716       430      (231)     5,541
(expense), net
Income (loss)
before income  59,955     18,089   35,813   7,432    3,811     (2,020)  (8,161)   114,919
taxes
Income
attributable
to the         —          1,245    —        —        —         —        —         1,245
noncontrolling
interest
Operating      $      $     $      $     $     $     $       $    
income (loss)   59,955          35,813   7,432      (2,020) (8,161)   113,674
(a)                       16,844                     3,811
(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.

Website: http://www.andersonsinc.com
Contact: Investor Relations: Nick Conrad, +1-419-891-6415,
nick_conrad@andersonsinc.com
 
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