Date of Report (Date of Earliest Event Reported): | November 6, 2017 |
Ohio | 000-20557 | 34-1562374 |
_____________________ (State or other jurisdiction | _____________ (Commission | ______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
1947 Briarfield Boulevard, Maumee, Ohio | 43537 | |
_________________________________ (Address of principal executive offices) | ___________ (Zip Code) |
Registrant’s telephone number, including area code: | 419-893-5050 |
The Andersons, Inc. | ||||
November 6, 2017 | By: | /s/ John Granato | ||
Name: John Granato | ||||
Title: Chief Financial Officer | ||||
(Principal Financial Officer) |
Exhibit No. | Description | |
99.1 |
• | Grain Group records pretax income of $2.6 million on continued strong grain storage capacity utilization. |
• | Ethanol Group earns $6.2 million of pretax income despite weaker year-over-year margins. |
• | Plant Nutrient Group reports a pretax loss of $7.9 million due to persistent low prices and margins. |
• | Rail Group earns $6.1 million of pretax income in a slowly improving but still soft market. |
$ in millions | Third Quarter | Year to Date | |||||||||||
2017 | 2016 | Vs | 2017 | 2016 | Vs | ||||||||
Reported Pretax Income (Loss) | $5.0 | $4.4 | $0.6 | $(19.6) | $4.6 | $(24.2) | |||||||
Goodwill Impairment | — | — | — | 42.0 | — | 42.0 | |||||||
Adjusted Pretax Income | $5.0 | $4.4 | $0.6 | $22.4 | $4.6 | $17.8 |
$ in millions | Third Quarter | Year to Date | ||||||||
Pretax Income | 2017 | 2016 | Vs | 2017 | 2016 | Vs | ||||
Base Grain | $3.4 | $1.7 | $1.7 | $4.0 | $(21.5) | $25.5 | ||||
Grain Affiliates | (0.8) | 0.2 | (1.0) | 0.5 | (7.1) | 7.6 | ||||
Total Grain Group | $2.6 | $1.9 | $0.7 | $4.5 | $(28.6) | $33.1 |
$ in millions | Third Quarter | Year to Date | ||||||||
2017 | 2016 | Vs | 2017 | 2016 | Vs | |||||
Equity in Earnings of Affiliates | $4.4 | $9.5 | $(5.1) | $7.3 | $11.6 | $(4.3) | ||||
Consolidated Operations and Service Fees | 1.8 | 1.6 | 0.2 | 5.3 | 3.1 | 2.2 | ||||
Pretax Income | 6.2 | 11.1 | (4.9) | 12.6 | 14.7 | (2.1) | ||||
Attributable to Noncontrolling Interests | 0.1 | 1.6 | (1.5) | 0.1 | 1.7 | (1.6) | ||||
Ethanol Group Pretax Income Attributable to The Andersons | $6.1 | $9.5 | $(3.4) | $12.5 | $13.0 | $(0.5) |
$ in millions | Third Quarter | Year to Date | ||||||||
2017 | 2016 | Vs | 2017 | 2016 | Vs | |||||
Reported Pretax Income (Loss) | $(7.9) | $(7.2) | $(0.7) | $(27.1) | $18.0 | $(45.1) | ||||
Goodwill Impairment | — | — | — | 42.0 | — | 42.0 | ||||
Adjusted Pretax Income (Loss) | $(7.9) | $(7.2) | $(0.7) | $14.9 | $18.0 | $(3.1) |
$ in millions | Third Quarter | Year to Date | ||||
Pretax Income | 2017 | 2016 | Vs | 2017 | 2016 | Vs |
Lease Income | $3.5 | $3.4 | $0.1 | $7.1 | $10.4 | $(3.3) |
Car Sales | 2.6 | 1.6 | 1.0 | 7.6 | 6.4 | 1.2 |
Services and Other | — | 1.8 | (1.8) | 3.4 | 5.9 | (2.5) |
Total Rail Group | $6.1 | $6.8 | $(0.7) | $18.1 | $22.7 | $(4.6) |
Utilization Rate | 85.8% | 86.2% | (0.4)% | 84.6% | 88.8% | (4.2)% |
(in thousands, except per share data) | Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales and merchandising revenues | $ | 836,595 | $ | 859,612 | $ | 2,682,273 | $ | 2,811,735 | |||||||
Cost of sales and merchandising revenues | 766,924 | 782,597 | 2,448,310 | 2,569,923 | |||||||||||
Gross profit | 69,671 | 77,015 | 233,963 | 241,812 | |||||||||||
Operating, administrative and general expenses | 68,456 | 78,767 | 220,331 | 234,053 | |||||||||||
Goodwill impairment | — | — | 42,000 | — | |||||||||||
Interest expense | 5,384 | 4,441 | 17,472 | 18,046 | |||||||||||
Other income: | |||||||||||||||
Equity in earnings of affiliates, net | 3,586 | 8,422 | 8,093 | 3,789 | |||||||||||
Other income, net | 5,588 | 2,216 | 18,117 | 11,144 | |||||||||||
Income (loss) before income taxes | 5,005 | 4,445 | (19,630 | ) | 4,646 | ||||||||||
Income tax provision | 2,389 | 1,104 | 7,505 | 1,486 | |||||||||||
Net income (loss) | 2,616 | 3,341 | (27,135 | ) | 3,160 | ||||||||||
Net income attributable to the noncontrolling interests | 83 | 1,619 | 73 | 1,711 | |||||||||||
Net income (loss) attributable to The Andersons, Inc. | $ | 2,533 | $ | 1,722 | $ | (27,208 | ) | $ | 1,449 | ||||||
Per common share: | |||||||||||||||
Basic earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 0.09 | $ | 0.06 | $ | (0.96 | ) | $ | 0.05 | ||||||
Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 0.09 | $ | 0.06 | $ | (0.96 | ) | $ | 0.05 | ||||||
Dividends declared | $ | 0.160 | $ | 0.155 | $ | 0.480 | $ | 0.465 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net income (loss) attributable to The Andersons, Inc. | $ | 2,533 | $ | 1,722 | $ | (27,208 | ) | $ | 1,449 | ||||||
Items impacting other income, net of tax: | |||||||||||||||
Goodwill impairment | — | — | 42,000 | — | |||||||||||
Total adjusting items | — | — | 42,000 | — | |||||||||||
Adjusted net income (loss) attributable to The Andersons, Inc. | $ | 2,533 | $ | 1,722 | $ | 14,792 | $ | 1,449 | |||||||
Diluted earnings attributable to The Andersons, Inc. common shareholders | $ | 0.09 | $ | 0.06 | $ | (0.96 | ) | $ | 0.05 | ||||||
Impact on diluted earnings per share | — | — | 1.48 | — | |||||||||||
Adjusted diluted earnings per share | $ | 0.09 | $ | 0.06 | $ | 0.52 | $ | 0.05 |
(in thousands) | September 30, 2017 | December 31, 2016 | September 30, 2016 | ||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 24,478 | $ | 62,630 | $ | 78,158 | |||||
Restricted cash | — | 471 | 190 | ||||||||
Accounts receivable, net | 196,192 | 194,698 | 173,593 | ||||||||
Inventories | 475,602 | 682,747 | 427,754 | ||||||||
Commodity derivative assets - current | 45,202 | 45,447 | 59,837 | ||||||||
Other current assets | 53,958 | 72,133 | 43,761 | ||||||||
Assets held for sale | 8,383 | — | — | ||||||||
Total current assets | 803,815 | 1,058,126 | 783,293 | ||||||||
Other assets: | |||||||||||
Commodity derivative assets - noncurrent | 245 | 100 | 1,346 | ||||||||
Other assets, net | 148,328 | 180,445 | 180,010 | ||||||||
Equity method investments | 215,031 | 216,931 | 225,114 | ||||||||
363,604 | 397,476 | 406,470 | |||||||||
Railcar assets leased to others, net | 377,393 | 327,195 | 334,401 | ||||||||
Property, plant and equipment, net | 419,348 | 450,052 | 460,247 | ||||||||
Total assets | $ | 1,964,160 | $ | 2,232,849 | $ | 1,984,411 | |||||
Liabilities and equity | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 19,000 | $ | 29,000 | $ | — | |||||
Trade and other payables | 381,359 | 581,826 | 356,931 | ||||||||
Customer prepayments and deferred revenue | 29,520 | 48,590 | 15,725 | ||||||||
Commodity derivative liabilities – current | 38,578 | 23,167 | 59,770 | ||||||||
Accrued expenses and other current liabilities | 67,064 | 69,648 | 68,465 | ||||||||
Current maturities of long-term debt | 53,972 | 47,545 | 51,520 | ||||||||
Total current liabilities | 589,493 | 799,776 | 552,411 | ||||||||
Other long-term liabilities | 34,407 | 27,833 | 30,525 | ||||||||
Commodity derivative liabilities – noncurrent | 902 | 339 | 1,954 | ||||||||
Employee benefit plan obligations | 36,356 | 35,026 | 45,260 | ||||||||
Long-term debt, less current maturities | 371,315 | 397,065 | 395,559 | ||||||||
Deferred income taxes | 181,876 | 182,113 | 178,535 | ||||||||
Total liabilities | 1,214,349 | 1,442,152 | 1,204,244 | ||||||||
Total equity | 749,811 | 790,697 | 780,167 | ||||||||
Total liabilities and equity | $ | 1,964,160 | $ | 2,232,849 | $ | 1,984,411 |
(in thousands) | Grain | Ethanol | Plant Nutrient | Rail | Retail | Other | Total | ||||||||||||||||||||
Three months ended September 30, 2017 | |||||||||||||||||||||||||||
Revenues from external customers | $ | 497,613 | $ | 191,531 | $ | 103,620 | $ | 43,093 | $ | 738 | $ | — | $ | 836,595 | |||||||||||||
Gross profit | 32,316 | 6,388 | 17,349 | 13,422 | 196 | — | 69,671 | ||||||||||||||||||||
Equity in earnings of affiliates | (694 | ) | 4,280 | — | — | — | — | 3,586 | |||||||||||||||||||
Other income, net | 539 | 12 | (1,622 | ) | 693 | 5,869 | 97 | 5,588 | |||||||||||||||||||
Income (loss) before income taxes | 2,641 | 6,181 | (7,920 | ) | 6,127 | 4,424 | (6,448 | ) | 5,005 | ||||||||||||||||||
Income (loss) attributable to the noncontrolling interests | — | 83 | — | — | — | — | 83 | ||||||||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 2,641 | $ | 6,098 | $ | (7,920 | ) | $ | 6,127 | $ | 4,424 | $ | (6,448 | ) | $ | 4,922 | |||||||||||
Three months ended September 30, 2016 | |||||||||||||||||||||||||||
Revenues from external customers | $ | 550,189 | $ | 139,413 | $ | 101,770 | $ | 38,201 | $ | 30,039 | $ | — | $ | 859,612 | |||||||||||||
Gross profit | 30,465 | 6,301 | 19,387 | 12,527 | 8,335 | — | 77,015 | ||||||||||||||||||||
Equity in earnings of affiliates | 533 | 7,889 | — | — | — | — | 8,422 | ||||||||||||||||||||
Other income, net | 361 | 6 | 711 | 451 | 83 | 604 | 2,216 | ||||||||||||||||||||
Income (loss) before income taxes | 1,879 | 11,160 | (7,231 | ) | 6,754 | (1,578 | ) | (6,539 | ) | 4,445 | |||||||||||||||||
Income (loss) attributable to the noncontrolling interest | — | 1,619 | — | — | — | — | 1,619 | ||||||||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 1,879 | $ | 9,541 | $ | (7,231 | ) | $ | 6,754 | $ | (1,578 | ) | $ | (6,539 | ) | $ | 2,826 | ||||||||||
Grain | Ethanol | Plant Nutrient | Rail | Retail | Other | Total | |||||||||||||||||||||
Nine months ended September 30, 2017 | |||||||||||||||||||||||||||
Revenues from external customers | $ | 1,464,588 | $ | 533,515 | $ | 514,943 | $ | 121,632 | $ | 47,595 | $ | — | $ | 2,682,273 | |||||||||||||
Gross profit | 86,412 | 15,248 | 83,091 | 38,429 | 10,783 | — | 233,963 | ||||||||||||||||||||
Equity in earnings of affiliates | 864 | 7,229 | — | — | — | — | 8,093 | ||||||||||||||||||||
Other income, net | 3,046 | 34 | 4,578 | 2,264 | 7,302 | 893 | 18,117 | ||||||||||||||||||||
Income (loss) before income taxes | 4,497 | 12,547 | (27,074 | ) | 18,065 | (9,140 | ) | (18,525 | ) | (19,630 | ) | ||||||||||||||||
Income (loss) attributable to the noncontrolling interests | — | 73 | — | — | — | — | 73 | ||||||||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 4,497 | $ | 12,474 | $ | (27,074 | ) | $ | 18,065 | $ | (9,140 | ) | $ | (18,525 | ) | $ | (19,703 | ) | |||||||||
Nine months ended September 30, 2016 | |||||||||||||||||||||||||||
Revenues from external customers | $ | 1,611,992 | $ | 396,626 | $ | 588,797 | $ | 118,152 | $ | 96,168 | $ | — | $ | 2,811,735 | |||||||||||||
Gross profit | 64,216 | 13,207 | 95,653 | 40,689 | 28,047 | — | 241,812 | ||||||||||||||||||||
Equity in earnings of affiliates | (6,141 | ) | 9,930 | — | — | — | — | 3,789 | |||||||||||||||||||
Other income, net | 3,671 | 39 | 2,728 | 2,013 | 263 | 2,430 | 11,144 | ||||||||||||||||||||
Income (loss) before income taxes | (28,566 | ) | 14,762 | 18,008 | 22,698 | (2,644 | ) | (19,612 | ) | 4,646 | |||||||||||||||||
Income (loss) attributable to the noncontrolling interest | (3 | ) | 1,714 | — | — | — | — | 1,711 | |||||||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | (28,563 | ) | $ | 13,048 | $ | 18,008 | $ | 22,698 | $ | (2,644 | ) | $ | (19,612 | ) | $ | 2,935 |
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