Date of Report (Date of Earliest Event Reported): | November 4, 2015 |
Ohio | 000-20557 | 34-1562374 |
_____________________ (State or other jurisdiction | _____________ (Commission | ______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
480 West Dussel Drive, Maumee, Ohio | 43537 | |
_________________________________ (Address of principal executive offices) | ___________ (Zip Code) |
Registrant’s telephone number, including area code: | 419-893-5050 |
The Andersons, Inc. | ||||
November 4, 2015 | By: | /s/ John Granato | ||
Name: John Granato | ||||
Title: Chief Financial Officer | ||||
(Principal Financial Officer) |
Exhibit No. | Description | |
99.1 | Third Quarter 2015 Earnings Release |
• | 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 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. |
(in thousands, except per share data) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
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, net | 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 |
(in thousands, except per share data) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to The Andersons, Inc. | $ | (1,227 | ) | $ | 16,825 | $ | 35,189 | $ | 67,009 | ||||||
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 | $ | 99,070 | $ | 56,353 | ||||||
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 |
(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 | |||||||||
Railcar 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 |
(in thousands) | Grain | Ethanol | Plant Nutrient | Rail | Retail | Other | Total | ||||||||||||||||||||
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, 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 Nutrient | Rail | Retail | Other | Total | |||||||||||||||||||||
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 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 |
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