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

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

Full Year Earnings of $4.23 per Diluted Share

Rail and Plant Nutrient Groups set New Records

PR Newswire

MAUMEE, Ohio, Feb. 6, 2013

MAUMEE, Ohio, Feb. 6, 2013 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE),
today announced net income attributable to the company of $79.5 million, or
$4.23 per diluted share, on revenues of $5.3 billion. The company had a
strong year, surpassed only by the prior year in which it earned $95.1
million, or $5.09 per diluted share, on revenues of $4.6 billion. The company
earned $15.0 million in the fourth quarter of 2012, or $0.80 per diluted
share, on revenues of $1.7 billion. In the same three month period of 2011,
the company reported net income of $21.7 million, or $1.17 per diluted share,
on revenues of $1.3 billion. The majority of the year to year revenue
increase relates to rising volume and prices, and growth, in the agricultural
businesses.

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

The Rail Group achieved record operating income of $42.8 million in 2012, a
significant improvement over its $9.8 million 2011 operating income. Gross
profit from the leasing business was significantly higher than the prior year
due mainly to higher lease rates, as overall utilization rate for both years
was consistent at 84.6 percent. The group recognized $23.7 million in pre-tax
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 2011, the company recognized gains of $8.4 million on
similar transactions. Revenues of $156 million for 2012 were higher than the
$107 million reported in the prior year due mainly to increased car sales and
higher lease rates. The rail fleet increased by over 600 cars in 2012, to
approximately 23,300 cars. The Rail Group had operating income of $8.6 million
in the fourth quarter on revenues of $29 million. In 2011, operating income
for the same three month period was $2.3 million on revenues of $25 million.
These results include gains on sales of railcars and related leases and
non-recourse transactions of $1.5 million and $0.7 million in 2012 and 2011,
respectively.

The Plant Nutrient Group had record operating income of $39.3 million in 2012,
surpassing 2011 earnings by $1.0 million. Revenues for 2012 and 2011 were
$797 million and $691 million, respectively. While margins declined in 2012,
both income and revenues increased due to higher volume. For the fourth
quarter, the group's operating income was $4.7 million on $178 million of
revenues. Last year the group had operating income of $2.5 million during the
same three month period on revenues of $170 million. Increased operating
income in the quarter was due to higher volume as favorable weather patterns
increased nutrient application.

The Grain Group's 2012 operating income was $63.6 million, compared to
operating income of $87.3 million in the prior year. The group had
considerably lower space income in 2012, as a result of the drought, but an
increase in bushels sold. In 2011, the group benefited from significant
escalation in wheat basis. Lansing Trade Group contributed strongly to the
Grain Group's result with its best ever annual performance. Total revenues
for the Grain Group were $3.3 billion and $2.8 billion in 2012 and 2011,
respectively. Revenues increased due to greater sales volume and higher grain
prices. For the fourth quarter, the group's operating income was $18.1
million on revenues of $1.2 billion. In the same three month period of 2011,
the group had operating income of $27.3 million on revenues of $876 million.
The group acquired the majority of the Green Plains Grain Company assets, on
December 3, 2012. The acquisition included seven facilities in Iowa and five
in Tennessee, with grain storage capacity of approximately 32 million
bushels. The Grain Group's storage capacity increased nearly 30 percent, and
30,000 tons of fertilizer storage was added as well.

The Ethanol Group had an operating loss of $3.7 million in 2012, compared to
operating income of $23.3 million in the prior year. The operating income
decline was due to significantly lower ethanol margins resulting from weak
gasoline demand, an oversupply of ethanol, and high corn costs caused by last
year's drought. The ethanol plants, however, continue to benefit from
co-product sales of corn oil, E-85, Distillers Dried Grains and CO2. Total
2012 revenues were $743 million, up from $642 million in 2011. Revenues
increased due to an increase in volume, the majority of which was due to the
addition of the Denison, Iowa, facility in 2012. The group's fourth quarter
operating loss was $0.8 million on revenues of $215 million. During the same
three month period of 2011, operating income was $6.5 million on revenues of
$165 million.

The Turf & Specialty Group's full year operating income was $2.2 million on
revenues of $131 million. In 2011, the group had operating income of $2.0
million, and total revenues were $130 million. The group incurred an
operating loss of $1.2 million in the fourth quarter on revenues of $21
million. Last year, operating loss for the same period was $1.8 million on
revenues of $18 million. During the quarter, the group acquired the Mt.
Pulaski cob business, which approximately doubled the production capacity of
the Cob Division.

The Retail Group had an operating loss of $4.0 million in 2012, which included
charges associated with closing its Woodville store. In the prior year, the
group's operating loss was $1.5 million. Total 2012 sales for the group were
$151 million, compared to sales of $158 million in the prior year. The Retail
Group's fourth quarter operating income was a loss of $0.9 million on revenues
of $41 million. Last year, during the same three month period, the group's
operating income was $0.5 million and total revenues were $45 million.

"This is definitely one of those years where our purposeful diversification
paid off," CEO Mike Anderson stated. "The Rail Group had its best year ever,
due to skillful management of its railcar portfolio. Similarly, our Plant
Nutrient Group had its second record year in a row even though margins
decreased, as they increased sales volume and prudently managed their
inventory. Our Grain Group also had good results, in part due to the record
earnings of Lansing Trade Group, even though there were unfavorable impacts
caused by the drought," Mr. Anderson added. "In the last year we demonstrated
our commitment to growth by acquiring New Eezy Grow, Inc., Denison, Mt.
Pulaski, and the majority of the assets of the Green Plains Grain Company. We
also opened our Anselmo, Nebraska grain elevator in August and look forward to
opening a new railcar blast and paint facility this spring. As we have in the
past, we will continue to focus on long term earnings growth."

The company will host a webcast on Thursday, February 7, 2013 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          Twelve months ended
                       December 31,                December 31,
(in thousands, except  2012          2011          2012          2011
per share data)
Sales and              $          $        $          $     
merchandising revenues 1,680,641    1,297,830    5,272,010    4,576,331
Cost of sales and      1,589,472     1,211,399     4,914,005     4,223,479
merchandising revenues
Gross profit           91,169        86,431        358,005       352,852
Operating,
administrative and     69,590        63,167        246,929       229,090
general expenses
Interest expense       5,963         4,647         22,155        25,256
Other income:
Equity in earnings of  1,081         11,961        16,487        41,450
affiliates
Other income, net      5,316         2,381         14,725        7,922
Income before income   22,013        32,959        120,133       147,878
taxes
Income tax provision   7,838         10,788        44,568        51,053
Net income             14,175        22,171        75,565        96,825
Net income (loss)
attributable to the    (815)         474           (3,915)       1,719
noncontrolling
interests
Net income             $       $       $       $      
attributable to The    14,990         21,697    79,480         95,106
Andersons, Inc.
Per common share:
Basic earnings
attributable to The    $       $       $       $      
Andersons, Inc. common   0.80         1.17    4.27         5.13
shareholders


Diluted earnings       $       $       $       $      
attributable to The      0.80         1.17    4.23         5.09
Andersons, Inc. common
shareholders
Dividends paid         $       $       $       $      
                       0.1500         0.1100    0.6000         0.4400





The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)(In thousands)
                              December 31, 2012        December 31, 2011
Assets
Current assets:
Cash and cash equivalents     $                $          
                              138,218                  20,390
Restricted cash               398                      18,651
Accounts receivable, net      208,877                  167,640
Inventories                   776,677                  760,459
Commodity derivative assets – 103,105                  83,950
current
Deferred income taxes         15,862                   21,483
Other current assets          54,016                   34,649
Total current assets          1,297,153                1,107,222
Other assets:
Commodity derivative assets – 1,906                    2,289
noncurrent
Other assets, net (Note 1)  105,129                  53,327
Equity method investments     190,908                  199,061
                              297,943                  254,677
Railcar assets leased to      228,330                  197,137
others, net
Property, plant and           358,878                  175,087
equipment, net
Total assets                  $                  $       
                              2,182,304                1,734,123
Liabilities and equity
Current liabilities:
Borrowings under short-term   $               $          
line of credit                24,219                   71,500
Accounts payable for grain    584,171                  391,905
Other accounts payable        169,867                  142,762
Customer prepayments and      99,164                   79,557
deferred revenue
Commodity derivative          33,277                   15,874
liabilities – current
Accrued expenses and other    66,964                   60,445
current liabilities
Current maturities of         15,145                   32,208
long-term debt
Total current liabilities     992,807                  794,251
Other long-term liabilities   18,406                   43,014
Commodity derivative          1,134                    1,519
liabilities – noncurrent
Employee benefit plan         53,131                   52,972
obligations
Long-term debt, less current  427,243                  238,885
maturities
Deferred income taxes (Note   78,138                   64,640
1)
Total liabilities             1,570,859                1,195,281
Total equity (Note 1)         611,445                  538,842
Total liabilities and equity  $                  $       
                              2,182,304                1,734,123
Note 1 - Other assets, net includes the investment in cumulative convertible
preferred shares of Iowa Northern Railway Corporation, which is carried at
estimated fair value. The annual valuation has not yet been finalized, and
therefore the other assets, net line item within the Consolidated Balance
Sheets, along with deferred income taxes and accumulated other comprehensive
income (a component of equity) may be subject to change prior to issuance of
the audited Consolidated Financial Statements.





Segment Data
                                  Plant            Turf &
               Grain   Ethanol  Nutrient Rail    Specialty Retail  Other     Total
Three months
ended December
31, 2012
Revenues from  $       $      $     $     $     $     $     $  
external       1,197,376 214,867         28,818  20,545              1,680,641
customers                         177,732                   41,303   -
Gross profit   36,973    6,129    19,980   9,709   6,241     12,137   -         91,169
Equity in
earnings       6,374     (5,293)  -        -       -         -        -         1,081
(loss) of
affiliates
Other income,  706       16       266      3,841   113       158      216       5,316
net
Income (loss)
before income  18,078    (1,615)  4,714    8,553   (1,168)   (861)    (5,688)   22,013
taxes
Loss
attributable
to the         -         (815)    -        -       -         -        -         (815)
noncontrolling
interests
Operating      $     $     $     $    $     $     $     $    
income (loss)  18,078                8,553                (5,688)   22,828
(a)                      (800)   4,714            (1,168)  (861)
Three months
ended December
31, 2011
Revenues from  $      $     $     $    $     $     $     $  
external       875,538  164,763          24,981   17,844             1,297,830
customers                         169,522                   45,182  -
Gross profit   40,084    2,649    18,882   6,038   5,777     13,001   -         86,431
Equity in
earnings       5,631     6,349    (19)     -       -         -        -         11,961
(loss) of
affiliates
Other income,  708       26       163      668     164       208      444       2,381
net
Income (loss)
before income  27,333    6,974    2,454    2,346   (1,811)   500      (4,837)   32,959
taxes
Income
attributable
to the         -         474      -        -       -         -        -         474
noncontrolling
interest
Operating      $     $     $     $    $     $     $     $    
income (loss)  27,333                 2,346              (4,837)   32,485
(a)                      6,500    2,454           (1,811)    500
Twelve months
ended December
31, 2012
Revenues from  $       $     $     $     $     $     $     $  
external       3,293,632 742,929          156,426 131,026               5,272,010
customers                         797,033                   150,964 -
Gross profit   117,180   14,673   98,252   56,729  27,026    44,145   -         358,005
Equity in
earnings       29,080    (12,598) 5        -       -         -        -         16,487
(loss) of
affiliates
Other income,  2,548     53       1,917    7,136   784       554      1,733     14,725
net
Income (loss)
before income  63,597    (7,635)  39,254   42,841  2,216     (3,951)  (16,189)  120,133
taxes
Loss
attributable
to the         -         (3,915)  -        -       -         -        -         (3,915)
noncontrolling
interests
Operating      $     $     $     $    $     $     $      $    
income (loss)  63,597                  42,841                 (16,189) 124,048
(a)                      (3,720)  39,254          2,216    (3,951)
Twelve months
ended December
31, 2011
Revenues from  $       $     $     $     $     $     $     $  
external       2,849,358 641,546          107,459 129,716               4,576,331
customers                         690,631                   157,621 -
Gross profit   143,613   15,022   97,194   24,750  26,235    46,038   -         352,852
Equity in
earnings       23,748    17,715   (13)     -       -         -        -         41,450
(loss) of
affiliates
Other income,  2,462     159      704      2,866   880       638      213       7,922
net
Income (loss)
before income  87,288    25,063   38,267   9,778   2,000     (1,520)  (12,998)  147,878
taxes
Income
attributable
to the         -         1,719    -        -       -         -        -         1,719
noncontrolling
interest
Operating      $     $     $     $    $     $     $      $    
income (loss)  87,288    23,344         9,778               (12,998) 146,159
(a)                               38,267          2,000    (1,520)
(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.

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