THE ANDERSONS, INC. MAUMEE, Ohio, Aug. 6, 2014 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) today announced financial results for the second quarter ended June 30, 2014.
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Highlights
-- Record operating income of $33.9 million for the Ethanol Group
-- Second quarter diluted EPS up almost 50 percent from same period last
year
-- Plant Nutrient Group had operating income of $25.0 million
"We're pleased with our first half performance for 2014, which is a record," said CEO Mike Anderson. "Both our Ethanol and Plant Nutrient groups had strong results this quarter. In fact, our Ethanol Group had the best quarter in its history. In addition, our Grain Group's operating income benefitted from improved space income in our grain operations, and the addition of income from the Thompsons Limited joint venture."
All financial and operating highlights below are quarterly data compared to the same period of the prior year, unless otherwise noted.
Financial Highlights
Second quarter net income attributable to the company was $44.3 million, or $1.56 per diluted share, on revenues of $1.3 billion. In the same three month period of 2013, the company reported results of $29.5 million, or $1.05 per diluted share, on revenues of $1.6 billion.
-- The Ethanol Group realized excellent margins at all plants. These
margins were supported primarily by ongoing increases in export demand,
lower corn prices and excellent operating metrics. The Ethanol Group had
record E-85 sales and an increase in distillers dried grains and corn
oil sales.
-- The Plant Nutrient Group exceeded its prior year six-month earnings
performance.
-- The Rail Group recognized $2.5 million in pre-tax gains on sales of
railcars and related leases and non-recourse transactions during the
quarter, which is approximately $2.4 million less than the prior year.
Operating Highlights
The following highlights have impacted reported results, or may impact future results:
-- Crop conditions in the majority of our territories are ideal. Continued
good weather provides the potential for record corn and soybean yields.
-- The Ethanol Group had record ethanol production.
-- At this time, we have approximately 75 percent of the third quarter and
33 percent of the fourth quarter ethanol futures risk hedged. The
majority of those hedges were placed in the first quarter, consistent
with our strategy to lock-in reasonable forward returns when available
in the market. Other hedges were added in the second quarter,
consistent with our risk management strategy. We currently are
managing margins in the spot market for the rest of our production.
-- Volume for the Plant Nutrient Group was up approximately six percent
during the first half of the year, regaining all of the first quarter
volume reduction. Further, gross profit per ton increased slightly.
-- At the end of June, the Rail Group's utilization rate was 89.1 percent,
up from 86.1 percent the prior year. Further, the utilization rate is
expected to increase as the year progresses.
Conference Call
The company will host a webcast on Thursday, August 7, 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.
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
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. The Andersons, Inc. is located on the Internet at www.andersonsinc.com
The Andersons, Inc.
Consolidated Statements of Income
(Unaudited)
Three months ended June 30, Six months ended June 30,
(in thousands, except per share data) 2014 2013 2014 2013
---- ---- ---- ----
Sales and merchandising revenues $1,312,082 $1,566,964 $2,315,376 $2,838,934
Cost of sales and merchandising revenues 1,190,587 1,463,735 2,117,106 2,656,432
--------- --------- --------- ---------
Gross profit 121,495 103,229 198,270 182,502
Operating, administrative and general expenses 76,275 61,464 147,260 123,472
Interest expense 6,146 4,855 12,148 11,259
Other income:
Equity in earnings of affiliates 32,213 10,010 52,714 17,814
Other income, net 3,797 1,292 23,409 4,018
----- ----- ------ -----
Income before income taxes 75,084 48,212 114,985 69,603
Income tax provision 25,714 17,480 39,586 26,559
------ ------ ------ ------
Net income 49,370 30,732 75,399 43,044
Net income attributable to the noncontrolling interests 5,069 1,193 8,390 927
----- ----- ----- ---
Net income attributable to The Andersons, Inc. $44,301 $29,539 $67,009 $42,117
======= ======= ======= =======
Per common share:
Basic earnings attributable to The Andersons, Inc. common
shareholders $1.56 $1.05 $2.36 $1.50
===== ===== ===== =====
Diluted earnings attributable to The Andersons, Inc. common
shareholders $1.56 $1.05 $2.36 $1.49
===== ===== ===== =====
Dividends paid $0.1100 $0.1067 $0.2200 $0.2133
======= ======= ======= =======
The Andersons, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands) June 30, 2014 December 31, 2013 June 30, 2013
------------- ----------------- -------------
Assets
Current assets:
Cash and cash
equivalents $47,190 $309,085 $75,920
Restricted cash 895 408 872
Accounts
receivable, net 189,646 173,930 216,432
Inventories 432,996 614,923 444,523
Commodity
derivative
assets - current 162,427 71,319 121,789
Deferred income
taxes 7,443 4,931 2,797
Other current
assets 24,596 47,188 44,936
------ ------ ------
Total current
assets 865,193 1,221,784 907,269
Other assets:
Commodity
derivative
assets -
noncurrent 312 246 87
Other assets, net 116,985 118,010 103,781
Pension asset 13,023 14,328 -
Equity method
investments 264,381 291,109 195,241
------- ------- -------
394,701 423,693 299,109
Railcar assets
leased to
others, net 242,147 240,621 242,887
Property, plant
and equipment,
net 390,587 387,458 371,716
------- ------- -------
Total assets $1,892,628 $2,273,556 $1,820,981
========== ========== ==========
Liabilities and
equity
Current
liabilities:
Borrowings under
short-term line
of credit $27,000 $ - $50,000
Accounts payable
for grain 164,230 592,183 178,017
Other accounts
payable 143,535 154,599 183,971
Customer
prepayments and
deferred revenue 21,670 59,304 25,621
Commodity
derivative
liabilities -
current 86,134 63,954 58,183
Accrued expenses
and other
current
liabilities 81,260 70,295 57,456
Current
maturities of
long-term debt 89,387 51,998 45,096
------ ------ ------
Total current
liabilities 613,216 992,333 598,344
Other long-term
liabilities 15,032 15,386 15,634
Commodity
derivative
liabilities -
noncurrent 7,444 6,644 5,863
Employee benefit
plan obligations 39,178 39,477 50,754
Long-term debt,
less current
maturities 300,220 375,213 409,020
Deferred income
taxes 126,258 120,082 87,486
------- ------- ------
Total liabilities 1,101,348 1,549,135 1,167,101
Total equity 791,280 724,421 653,880
------- ------- -------
Total liabilities
and equity $1,892,628 $2,273,556 $1,820,981
========== ========== ==========
Segment Data
Grain Ethanol Plant Nutrient Rail Turf & Specialty Retail Other Total
(In thousands)
Three months ended June 30, 2014
Revenues from
external customers $656,004 $226,388 $311,895 $33,409 $42,913 $41,473 $ - $1,312,082
Gross profit 27,909 18,638 40,733 13,863 7,805 12,547 - 121,495
Equity in earnings
of affiliates 8,467 23,746 - - - - - 32,213
Other income, net 975 356 391 787 467 190 631 3,797
Income (loss) before
income taxes 10,352 38,976 25,004 6,684 1,998 1,637 (9,567) 75,084
Income (loss)
attributable to the
noncontrolling
interests (3) 5,072 - - - - - 5,069
Operating income
(loss) (a) $10,355 $33,904 $25,004 $6,684 $1,998 $1,637 $(9,567) $70,015
Three months ended June 30, 2013
Revenues from
external customers $891,350 $222,240 $330,339 $38,601 $43,144 $41,290 $ - $1,566,964
Gross profit 22,092 9,649 37,201 14,557 7,321 12,409 - 103,229
Equity in earnings
of affiliates 5,027 4,983 - - - - - 10,010
Other income
(expense), net (349) 199 164 702 175 100 301 1,292
Income (loss) before
income taxes 2,053 11,794 23,240 9,680 2,195 1,539 (2,289) 48,212
Income attributable
to the
noncontrolling
interest - 1,193 - - - - - 1,193
Operating income
(loss) (a) $2,053 $10,601 $23,240 $9,680 $2,195 $1,539 $(2,289) $47,019
Grain Ethanol Plant Nutrient Rail Turf & Specialty Retail Other Total
Six months ended June 30, 2014
Revenues from
external customers $1,239,163 $415,208 $419,525 $85,711 $86,638 $69,131 $ - $2,315,376
Gross profit 44,917 26,003 54,808 35,728 16,280 20,534 - 198,270
Equity in earnings
of affiliates 10,351 42,363 - - - - - 52,714
Other income, net 19,321 130 576 1,497 774 302 809 23,409
Income (loss) before
income taxes 21,655 62,124 23,593 21,729 3,373 (698) (16,791) 114,985
Income (loss)
attributable to the
noncontrolling
interests (6) 8,396 - - - - - 8,390
Operating income
(loss) (a) $21,661 $53,728 $23,593 $21,729 $3,373 $(698) $(16,791) $106,595
Six months ended June 30, 2013
Revenues from
external customers $1,727,845 $421,549 $442,241 $84,965 $90,331 $72,003 $ - $2,838,934
Gross profit 46,942 14,454 51,150 33,536 16,339 20,081 - 182,502
Equity in earnings
of affiliates 12,937 4,877 - - - - - 17,814
Other income, net 222 430 139 1,648 450 214 915 4,018
Income (loss) before
income taxes 10,352 14,007 22,678 24,254 6,196 (1,630) (6,254) 69,603
Income attributable
to the
noncontrolling
interest - 927 - - - - - 927
Operating income
(loss) (a) $10,352 $13,080 $22,678 $24,254 $6,196 $(1,630) $(6,254) $68,676
(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).
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SOURCE The Andersons, Inc.
