THE ANDERSONS, INC. Third Quarter Loss of $0.04 per Diluted Share; Dividend increased for First Quarter 2016
MAUMEE, Ohio, Nov. 4, 2015 /PRNewswire/ -- The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the third quarter ended September 30, 2015.
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Highlights
-- Rail Group has continued strong performance
-- Quarterly dividend to be increased 11 percent
-- Grain Group performance down due to significant decline in equity
earnings and lower core grain business results
-- Plant Nutrient Group results adversely impacted by ongoing and one-time
costs associated with recent acquisitions, lower demand, and a cob
business impairment
"The Rail Group had a great quarter as they continued to benefit from their focus on asset management, which has led to higher lease and utilization rates. The Ethanol Group also had good results, despite margins being down, as they continued to increase throughput due to various process improvements they have made," said Chairman Mike Anderson. "Overall, however, this was a disappointing quarter primarily due to the results of our Grain and Plant Nutrient groups.
"We are confident in our future earning potential and we have again raised our dividend. It has increased from 14 cents to 15 1/2 cents per share; this will be effective with the next planned dividend to be paid on January 25, 2016 to holders of record as of January 4, 2016," concluded Anderson.
Key Highlights
The loss during the third quarter of 2015 attributable to the Company was $1.2 million, or $0.04 per diluted share. Last year, third quarter net income was $16.8 million, or $0.59 per diluted share. Net income through September this year was $34.0 million, or $1.19 per diluted share. Adjusted net income through September of 2014 was $73.2 million, or $2.57 per diluted share. (See the Reconciliation to Adjusted Net Income Table attached for further explanation.) Third quarter 2015 revenues were $936 million compared to $953 million in the prior year.
-- The Rail Group achieved pre-tax income of $11.9 million this quarter led
by strong base leasing business results and continuing improvement in
the railcar repair business. The utilization rate ended the third
quarter at 92.2 percent.
-- Despite ethanol margins being down significantly, the Ethanol Group had
a good quarter due to strong operational execution. The group achieved
record third quarter ethanol production volumes.
-- The Grain Group's performance was down year over year by $12.3 million
due to a significant decrease in equity earnings from affiliates and
lower results in the core grain business.
-- The Plant Nutrient Group's performance included a $4.5 million negative
impact related to recent acquisitions, which were not expected to be
accretive this quarter. The legacy portion of the business continued to
see a reduction of nutrient purchasing this quarter. The group's
results were further impacted by a $2.0 million goodwill impairment
charge in the Cob business.
Conference Call
The Company will host a webcast on Thursday, November 5, 2015 at 11:00 A.M. ET, to discuss its performance. To dial-in to the call, the number is 866-439-8514 (participant passcode is 60752097). 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/dybuefmq/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 Nine months ended
September 30, September 30,
------------- -------------
(in thousands, except per share data) 2015 2014 2015 2014
---- ---- ---- ----
Sales and merchandising revenues $935,774 $952,927 $3,094,355 $3,268,303
Cost of sales and merchandising revenues 850,584 868,009 2,817,681 2,985,115
------- ------- --------- ---------
Gross profit 85,190 84,918 276,674 283,188
Operating, administrative and general expenses 88,698 76,737 251,044 223,997
Interest expense 6,147 4,253 16,210 16,401
Other income:
Equity in earnings of affiliates 3,845 23,917 23,295 76,631
Other income, net 3,355 1,685 20,235 25,094
----- ----- ------ ------
Income before income taxes (2,455) 29,530 52,950 144,515
Income tax provision (1,505) 10,251 17,556 49,837
------ ------ ------ ------
Net income (950) 19,279 35,394 94,678
Net income attributable to the noncontrolling interests 277 2,454 1,433 10,844
--- ----- ----- ------
Net income attributable to The Andersons, Inc. $(1,227) $16,825 $33,961 $83,834
======= ======= ======= =======
Per common share:
Basic earnings attributable to The Andersons, Inc. common shareholders $(0.04) $0.59 $1.19 $2.95
====== ===== ===== =====
Diluted earnings attributable to The Andersons, Inc. common shareholders $(0.04) $0.59 $1.19 $2.95
====== ===== ===== =====
Dividends declared $0.14 $0.11 $0.42 $0.33
===== ===== ===== =====
The Andersons, Inc.
Reconciliation to Adjusted Net
Income
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
(in thousands, except per
share data) 2015 2014 2015 2014
---- ---- ---- ----
Net income attributable to The
Andersons, Inc. $(1,227) $16,825 $33,961 $83,834
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. $(1,227) $16,825 $33,961 $73,178
======= ======= ======= =======
Diluted earnings attributable
to The Andersons, Inc. common
shareholders $(0.04) $0.59 $1.19 $2.95
====== ===== ===== =====
Impact on diluted earnings per
share - - - (0.38)
--- --- --- -----
Adjusted diluted earnings per
share $(0.04) $0.59 $1.19 $2.57
====== ===== ===== =====
The Andersons, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands) September 30, 2015 December 31, 2014 September 30, 2014
------------------ ----------------- ------------------
Assets
Current assets:
Cash and cash
equivalents $40,658 $114,704 $326,946
Restricted cash 181 429 173
Accounts receivable,
net 201,664 183,059 162,270
Inventories 527,789 795,655 396,464
Commodity derivative
assets - current 60,965 92,771 126,396
Deferred income taxes 6,735 7,337 148
Other current assets 66,411 60,492 36,518
------ ------ ------
Total current assets 904,403 1,254,447 1,048,915
Other assets:
Commodity derivative
assets - noncurrent 1,584 507 2,383
Other assets, net 220,355 131,527 113,141
Pension asset - - 13,738
Equity method
investments 223,207 226,857 257,166
------- ------- -------
445,146 358,891 386,428
Rail Group assets
leased to others, net 347,100 297,747 245,849
Property, plant and
equipment, net 495,045 453,607 401,800
------- ------- -------
Total assets $2,191,694 $2,364,692 $2,082,992
========== ========== ==========
Liabilities and equity
Current liabilities:
Short-term debt $82,801 $2,166 $451
Trade and other
payables 466,428 706,823 387,311
Customer prepayments
and deferred revenue 23,581 99,617 27,246
Commodity derivative
liabilities - current 49,911 64,075 229,265
Accrued expenses and
other current
liabilities 71,593 78,610 70,598
Current maturities of
long-term debt 26,989 76,415 76,757
------ ------ ------
Total current
liabilities 721,303 1,027,706 791,628
Other long-term
liabilities 16,510 15,507 13,902
Commodity derivative
liabilities -
noncurrent 2,912 3,318 26,203
Employee benefit plan
obligations 58,123 59,308 39,606
Long-term debt, less
current maturities 413,561 298,638 289,448
Deferred income taxes 179,591 136,166 120,628
------- ------- -------
Total liabilities 1,392,000 1,540,643 1,281,415
Total equity 799,694 824,049 801,577
------- ------- -------
Total liabilities and
equity $2,191,694 $2,364,692 $2,082,992
========== ========== ==========
The Andersons, Inc.
Segment Data
(Unaudited)
(in thousands) Grain Ethanol Plant Rail Retail Other Total
Nutrient
---
Three months ended September 30, 2015
Revenues from external customers $570,626 $139,140 $149,303 $44,758 $31,947 $ - $935,774
Gross profit 29,926 6,265 22,320 17,491 9,188 - 85,190
Equity in earnings of affiliates 1,340 2,505 - - - - 3,845
Other income, net 618 36 947 2,093 92 (431) 3,355
Income (loss) before income taxes 129 6,167 (11,114) 11,913 (769) (8,781) (2,455)
Income (loss) attributable to the
noncontrolling interests (2) 279 - - - - 277
Income (loss) before income taxes
attributable to The Andersons, Inc.
(a) $131 $5,888 $(11,114) $11,913 $(769) $(8,781) $(2,732)
-
Three months ended September 30, 2014 -
Revenues from external customers $575,354 $179,405 $133,440 $32,022 $32,706 $ - $952,927
Gross profit 32,748 12,770 19,240 10,841 9,319 - 84,918
Equity in earnings of affiliates 10,190 13,727 - - - - 23,917
Other income (expense), net (2,354) 71 2,861 792 418 (103) 1,685
Income (loss) before income taxes 12,447 23,709 (3,014) 4,160 (968) (6,804) 29,530
Income (loss) attributable to the
noncontrolling interest (2) 2,456 - - - - 2,454
Income (loss) before income taxes
attributable to The Andersons, Inc.
(a) $12,449 $21,253 $(3,014) $4,160 $(968) $(6,804) $27,076
Grain Ethanol Plant Rail Retail Other Total
Nutrient
---
Nine months ended September 30, 2015
Revenues from external customers $1,781,104 $416,752 $660,440 $134,497 $101,562 $ - $3,094,355
Gross profit 84,656 18,394 90,984 53,062 29,578 - 276,674
Equity in earnings of affiliates 10,764 12,531 - - - - 23,295
Other income, net 2,682 83 2,441 14,766 284 (21) 20,235
Income (loss) before income taxes 4,016 22,274 8,183 43,915 (1,483) (23,955) 52,950
Income (loss) attributable to the
noncontrolling interests (8) 1,441 - - - - 1,433
Income (loss) before income taxes
attributable to The Andersons, Inc.
(a) $4,024 $20,833 $8,183 $43,915 $(1,483) $(23,955) $51,517
-
Nine months ended September 30, 2014 -
Revenues from external customers $1,814,517 $594,613 $639,603 $117,733 $101,837 $ - $3,268,303
Gross profit 77,665 38,773 90,328 46,569 29,853 - 283,188
Equity in earnings of affiliates 20,541 56,090 - - - - 76,631
Other income, net 16,967 201 4,211 2,289 720 706 25,094
Income (loss) before income taxes 34,102 85,833 23,952 25,889 (1,666) (23,595) 144,515
Income (loss) attributable to the
noncontrolling interest (8) 10,852 - - - - 10,844
Income (loss) before income taxes
attributable to The Andersons, Inc.
(a) 34,110 74,981 23,952 25,889 (1,666) (23,595) 133,671
(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).
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SOURCE The Andersons, Inc.
