The Andersons, Inc. Reports Fourth Quarter & Full Year Results
Fourth Quarter Earnings of $0.88 per Diluted Share
Full Year Earnings of $2.08 per Diluted Share
MAUMEE, Ohio, Feb. 8 /PRNewswire-FirstCall/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced fourth quarter earnings of $16.2 million, or $0.88 per diluted share, and total revenues of $916 million. In the same three month period of 2008, the company reported a loss of $33.4 million, or $1.84 per diluted share, on revenues of $770 million. The prior year fourth quarter loss resulted from the recording of significant inventory adjustments within the Plant Nutrient Group. The 2009 net income attributable to the company was $38.4 million, or $2.08 per diluted share, on $3.0 billion of revenues. In the prior year, the company's full year earnings were $32.9 million, or $1.79 per diluted share, and total revenues were $3.5 billion.
(Logo: http://www.newscom.com/cgi-bin/prnh/20081104/CLTU081LOGO )
The Grain & Ethanol Group's 2009 operating income was $51.4 million. This compares to an operating income of $43.6 million in 2008. The group's grain business had a record year, while the ethanol business had its second highest year resulting from significantly increased margins during the second half of the year. Full year income from the investment in Lansing Trade Group was lower than 2008, as a good fourth quarter was not enough to offset a modest loss incurred in the first half of the year. Total 2009 revenues for the Grain & Ethanol Group were $2.2 billion; this includes $806 million of grain and ethanol sales made in accordance with origination and marketing agreements between the company and its ethanol joint ventures. In 2008, the group's total revenues were $2.4 billion and included $866 million of the previously mentioned sales. For the fourth quarter, the Grain & Ethanol Group's operating income was $27.8 million, in contrast to $11.9 million earned during the same period in 2008. This fourth quarter increase in operating income was due to markedly improved results in the ethanol business and Lansing Trade Group. The ethanol business had its highest quarter since entering the business four years ago. These improvements were partially offset by lower quarterly results in the grain business due primarily to the late harvest in 2009. Total revenues for the fourth quarter were $722 million; in comparison, the group's revenues for the same period last year were $565 million.
The Rail Group had an operating loss of $1.0 million in 2009, which is down significantly from the $19.8 million earned in 2008. The group continues to be impacted by the double digit declines in national rail traffic. Gross profit from the leasing business was significantly lower than the prior year due mainly to lower utilization rates and the corresponding increase in storage expense from idle cars. The average utilization rate (the percentage of the fleet's railcars in service) for 2009 was 78.1 percent, which was down significantly from the prior year rate of 92.5 percent. The group ended the year with a utilization rate of 70.5 percent. The full year results include gains on sales of railcars and related leases of $1.7 million in 2009, and $4.0 million in 2008. Additionally, both the railcar repair and manufacturing businesses experienced significant decreases in gross profit during the year, as sales were down more than 30 percent. The rail fleet ended the year with approximately 23,800 cars and locomotives, which is comparable to the 2008 year end total. Revenues of $93 million for 2009 were down considerably from the $134 million reported in the prior year. The Rail Group had an operating loss of $1.5 million in the fourth quarter on $21 million of revenues. In 2008, operating income for the same three month period was $3.3 million on revenues of $28 million.
The Plant Nutrient Group ended the year with operating income of $11.3 million. In 2008, the group had an operating loss of $12.3 million due to significant lower of cost or market adjustments caused by sharp declines in nutrient prices. Revenues for 2009 and 2008 were $491 million and $653 million, respectively. Revenues declined in 2009 due to a significant decrease in the average selling price, offset by a modest volume increase. For the fourth quarter, the group's operating income was $1.7 million on $111 million of revenues. Last year the group had an operating loss of $74.5 million during the fourth quarter on revenues of $112 million, due to $84.1 million of the aforementioned adjustments being made during the quarter. The integration of the Hartung Brothers Inc.'s Fertilizer Division, which was acquired on August 1, 2009, was successfully completed by year end.
The Turf & Specialty Group's full year operating income was a record $4.7 million on $125 million of revenues. In 2008, the group had operating income of $2.3 million, and total revenues were $119 million. The 2009 results are mainly attributable to the group's lawn volume increasing by almost 20 percent. The group's focus on proprietary products in its lawn business is continuing to show positive results, even though there has been some softness in the professional product market. The group incurred an operating loss of $1.1 million in the fourth quarter on $19 million of revenues. Last year, its operating loss for the same period was also $1.1 million, on revenues of $20 million.
The Retail Group had an operating loss of $2.8 million in 2009. In the prior year, the group's operating income was $0.8 million. Total sales for the group were $162 million in 2009, or 6 percent below the 2008 total of $173 million. The group continues to be impacted by the weakness in the overall economy and resulting reduced consumer spending. Margins, however, have remained consistent with the prior year. The Retail Group's fourth quarter operating loss was $0.7 million on $42 million of revenues. Last year, during the same three month period, the operating income was $1.0 million, and total revenues were $46 million.
"Clearly, our full year earnings were heavily influenced by the results within our agricultural business units," CEO Mike Anderson stated. "The record full year earnings in our grain business, reflects our solid position in this industry. The significant turn around in ethanol margins enabled our ethanol business to report its best ever quarterly results. Our Turf & Specialty Group had a record year. Our Plant Nutrient Group returned to profitability, following the extraordinary loss incurred in 2008," Mr. Anderson added. "Our 2009 Rail and Retail Group results, however, were negatively impacted by the weak economy. Economic conditions such as these confirm that our strategy of purposeful diversification allows us to remain a strong company, even when external factors are significantly impacting one or more of our groups."
The company will host a webcast on Tuesday, February 9, 2010 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 with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations in 16 U.S. states and Puerto Rico, plus rail equipment leasing interests in Canada and Mexico.
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 for per share amounts) 2009 2008 2009 2008 ---- ---- ---- ---- Sales and merchandising revenues $915,958 $770,065 $3,025,304 $3,489,478 Cost of sales and merchandising revenues 846,170 757,839 2,769,798 3,231,649 ------- ------- --------- --------- Gross profit 69,788 12,226 255,506 257,829 Operating, administrative and general expenses 54,560 50,394 199,116 190,230 Interest expense 4,714 6,099 20,688 31,239 Other income (loss): Equity in earnings (loss) of affiliates 15,078 (11,768) 17,463 4,033 Other income - net 1,925 (148) 8,331 6,170 ----- ---- ----- ----- Income before income taxes 27,517 (56,183) 61,496 46,563 Income tax provision 9,127 (21,579) 21,930 16,466 ----- ------- ------ ------ Net income 18,390 (34,604) 39,566 30,097 Net (income) loss attributable to the noncontrolling interest (2,159) 1,215 (1,215) 2,803 ------ ----- ------ ----- Net income attributable to The Andersons, Inc. $16,231 $(33,389) $38,351 $32,900 ======= ======== ======= ======= Per common share: Basic earnings $0.89 $(1.84) $2.10 $1.82 ===== ====== ===== ===== Diluted earnings $0.88 $(1.84) $2.08 $1.79 ===== ====== ===== ===== Dividends paid $0.0875 $0.0850 $0.3475 $0.3250 ======= ======= ======= ======= The Andersons, Inc. Consolidated Balance Sheets (Unaudited) December 31 December 31 (in thousands) 2009 2008 ---- ---- Assets Current assets: Cash and cash equivalents $145,929 $81,682 Restricted cash 3,123 3,927 Accounts receivable, net 137,195 126,255 Margin deposits, net 27,012 13,094 Inventories 407,845 436,920 Commodity derivative assets - current 24,255 84,919 Other current assets 41,464 109,165 ------ ------- Total current assets 786,823 855,962 Investments and other assets 182,989 153,488 Commodity derivative assets 3,137 3,662 Railcar assets leased to others (net) 179,154 174,132 Property, plant and equipment (net) 132,288 121,529 ------- ------- $1,284,391 $1,308,773 ========== ========== Liabilities and shareholders' equity Current liabilities: Commodity derivative liabilities - current $24,871 $67,055 Other current liabilities 454,250 458,208 ------- ------- Total current liabilities 479,121 525,263 Deferred items and other long-term liabilities 90,138 80,687 Commodity derivative liabilities 830 3,706 Long-term debt non-recourse 19,270 40,055 Long-term debt 288,756 293,955 Shareholders' equity 406,276 365,107 ------- ------- $1,284,391 $1,308,773 ========== ========== Segment Data Grain & Plant Turf & Ethanol Rail Nutrient Specialty ------- ---- -------- --------- Quarter ended December 31, 2009 Revenues from external customers $722,294 $21,101 $111,447 $19,400 Gross Profit 35,692 3,104 14,585 4,956 Equity in earnings (loss) of affiliates 15,076 - 2 - Other income (loss), net 419 232 160 303 Income before income taxes 29,969 (1,471) 1,671 (1,090) Income attributable to the noncontrolling interest (2,159) - - - Operating income (loss)(a) 27,810 (1,471) 1,671 (1,090) Quarter ended December 31, 2008 Revenues from external customers $565,189 $27,552 $111,521 $20,116 Gross Profit 45,359 7,795 (59,815) 5,336 Equity in earnings (loss) of affiliates (11,770) - 2 - Other income (loss), net (19) (76) 165 181 Income before income taxes 10,702 3,318 (74,457) (1,064) Income attributable to the noncontrolling interest 1,215 - - - Operating income (loss)(a) 11,917 3,318 (74,457) (1,064) Twelve months ended December 31, 2009 Revenues from external customers $2,153,978 $92,789 $491,293 $125,306 Gross Profit 106,804 16,816 59,419 25,457 Equity in earnings (loss) of affiliates 17,452 - 8 - Other income (loss), net 2,319 485 1,755 1,131 Income before income taxes 52,569 (1,034) 11,294 4,735 Income attributable to the noncontrolling interest (1,215) - - - Operating income (loss)(a) 51,354 (1,034) 11,294 4,735 Twelve months ended December 31, 2008 Revenues from external customers $2,411,144 $133,898 $652,509 $118,856 Gross Profit 110,954 37,055 33,990 24,704 Equity in earnings (loss) of affiliates 4,027 - 6 - Other income (loss), net 4,751 526 893 446 Income before income taxes 40,784 19,782 (12,325) 2,321 Income attributable to the noncontrolling interest 2,803 - - - Operating income (loss)(a) 43,587 19,782 (12,325) 2,321 Retail Other Total ------ ----- ----- Quarter ended December 31, 2009 Revenues from external customers $41,716 $- $915,958 Gross Profit 11,451 - 69,788 Equity in earnings (loss) of affiliates - - 15,078 Other income (loss), net 325 486 1,925 Income before income taxes (721) (841) 27,517 Income attributable to the noncontrolling interest - - (2,159) Operating income (loss) (a) (721) (841) 25,358 Quarter ended December 31, 2008 Revenues from external customers $45,687 $- $770,065 Gross Profit 13,551 - 12,226 Equity in earnings (loss) of affiliates - - (11,768) Other income (loss), net 259 (658) (148) Income before income taxes 1,015 4,303 (56,183) Income attributable to the noncontrolling interest - - 1,215 Operating income (loss) (a) 1,015 4,303 (54,968) Twelve months ended December 31, 2009 Revenues from external customers $161,938 $- $3,025,304 Gross Profit 47,010 - 255,506 Equity in earnings (loss) of affiliates - 3 17,463 Other income (loss), net 683 1,958 8,331 Income before income taxes (2,843) (3,225) 61,496 Income attributable to the noncontrolling interest - - (1,215) Operating income (loss) (a) (2,843) (3,225) 60,281 Twelve months ended December 31, 2008 Revenues from external customers $173,071 $- $3,489,478 Gross Profit 51,126 - 257,829 Equity in earnings (loss) of affiliates - - 4,033 Other income (loss), net 692 (1,138) 6,170 Income before income taxes 843 (4,842) 46,563 Income attributable to the noncontrolling interest - - 2,803 Operating income (loss) (a) 843 (4,842) 49,366 (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.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article