EPS of $0.14 for Period Up $0.17 From 2004
Net Income Improves By $1.2 Million
MAUMEE, Ohio, May 4 /PRNewswire-FirstCall/ -- The Andersons, Inc.
(Nasdaq: ANDE), today announced first-quarter 2005 net income of $1.0 million,
or $0.14 per diluted share. This was an improvement of $1.2 million, or $0.17
per diluted share, from the first quarter of 2004 when the company lost $0.2
million, or $0.03 per diluted share. Total revenues were $259 million for the
first quarter this year compared to $275 million a year ago. The reduction in
revenues was attributed to lower average grain prices, as noted below.
Included in the company's first-quarter 2005 results is an after-tax charge of
$0.4 million, or $0.05 per diluted share, to correct pension and post-
retirement benefit valuation errors over the past four years. The entire
correction was made in the first quarter of 2005 on the basis that it is not
material to the current or prior periods.
The Agriculture Group's first-quarter performance exceeded the two
previous years. Operating income was $1.0 million for the quarter, $2.5
million higher than the $1.5 million loss the group incurred a year ago.
Revenues of $165 million for the first quarter this year were $19 million
below last year primarily due to lower average corn and soybean prices. Noting
the less than perfect correlation between revenues and income in the grain
business, the company indicated that grain sales margins and space income were
both higher during the most recent quarter. The group also continued to
benefit from its investment in Lansing Grain, a grain trading company. Gross
margin improvement also boosted operating results for the group's plant
nutrient business in the first three months of 2005 in spite of significantly
higher fertilizer ingredient prices. During the quarter, the Agriculture Group
continued to evaluate the possibility of investing in new ethanol production
facilities in its eastern corn belt region.
The Rail Group's operating income of $3.6 million in the first quarter
this year was $2.3 million above the $1.3 million it earned in the year-
earlier three-month period. Revenues of $17.7 million for the quarter were
almost 60 percent higher than the $11.1 generated in the comparable period of
2004. Car values and lease rates continued to be strong in this most recent
quarter, and the utilization rate of the group's railcar fleet was again
higher than year-earlier levels. Also contributing to the group's operating
performance growth were the rail assets and attached leases acquired in a
large acquisition that was completed midway through the first quarter of 2004.
In early April, the group began operating a railcar repair business in
Mississippi in addition to those it was already operating in Ohio and South
Carolina.
The Processing Group's operating income of $1.1 million in the first three
month period of 2005 was $2.1 million lower than a year ago. Revenues of $40.9
million for the quarter were $4.3 million below the $45.2 million it
registered in the first quarter of last year. Turf-care product volumes were
lower this year. Average margins were also down as a result of product cost
increases that could not be fully recouped through higher prices.
The Retail Group reported revenues of $35.1 million for the first quarter
of 2005, a 1.5 percent increase in same-store sales compared to the same
three-month period in 2004. The average sale per transaction and average gross
margin also improved somewhat. As a result, the group's operating loss of $2.1
million for the period was $0.2 million better than its 2004 performance.
"The first quarter is typically a loss period for our seasonal businesses,
so earning net income of $1.0 million for the period this year shows that
we're off to a good start," said President and Chief Executive Officer Mike
Anderson. "Agriculture and Rail both posted terrific results during the first
three months of 2005. In total, the Company's earnings improved by seventeen
cents a share, and total cash provided by our operating activities also
continued to grow."
Anderson also stated, "Looking forward, we're hoping for big corn and
soybean crops again this year, and so far spring planting in much of our
region is at, or ahead of, last year's pace. We still have a long way to go
until the fall harvest, however, so prudence would suggest that we should
reasonably expect our grain business to achieve full-year results more in line
with the most recent three to five year averages rather than the exceptional
results it achieved last year. All considered, I believe that our 2005 full-
year EPS could be in the $2.20 to $2.50 range."
The company will host a webcast on Thursday, May 5, 2005 at 11:00 A.M.
EDT, to discuss its first quarter performance and full-year outlook. This can
be accessed under the heading "Financial Information" on its website
at http://www.andersonsinc.com .
The Andersons, Inc. is a diversified company with interests in the grain
and plant nutrient sectors of U.S. agriculture, as well as in railcar
marketing, industrial materials formulation, turf products production, and
general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company
presently has operations in seven U.S. states 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 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 http://www.andersonsinc.com
FINANCIAL TABLES FOLLOW ...
The Andersons, Inc.
Consolidated Statements of Operations
Three Months ended
(in thousands, except for per share March 31
amounts) 2005 2004
Sales and merchandising revenues $258,980 $275,050
Cost of sales and merchandising
revenues 219,021 238,988
Gross profit 39,959 36,062
Operating, administrative and general
expenses 36,901 34,744
Interest expense 2,950 2,666
Other income, net 1,079 791
Equity in earnings of affiliates 446 162
Income (loss) before income taxes 1,633 (395)
Income taxes 599 (149)
Net Income (loss) $1,034 $(246)
Per common share:
Basic earnings (loss) $0.14 $(0.03)
Diluted earnings (loss) $0.14 $(0.03)
Dividends paid $0.080 $0.075
Weighted average shares outstanding-
basic 7,373 7,218
Weighted average shares outstanding-
diluted 7,643 7,218
The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)
March 31 December 31 March 31
(in thousands) 2005 2004 2004
Assets
Current assets:
Cash and cash equivalents $6,138 $8,439 $3,624
Restricted cash 1,482 1,532 1,993
Accounts receivable (net) and
margin deposits 90,778 66,235 118,534
Inventories 270,650 251,428 280,326
Other current assets 31,114 30,659 33,525
Total current assets 400,162 358,293 438,002
Other assets 20,949 21,437 23,094
Railcar assets leased to others (net) 113,318 101,358 101,062
Property, plant and equipment (net) 91,401 92,510 94,828
$625,830 $573,598 $656,986
Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings $114,400 $12,100 $174,000
Other current liabilities 193,237 240,447 181,209
Total current liabilities 307,637 252,547 355,209
Deferred items and other long-term
liabilities 32,822 33,029 28,001
Long-term debt non-recourse 61,465 64,343 77,036
Long-term debt 89,151 89,803 81,248
Shareholders' equity 134,755 133,876 115,492
$625,830 $573,598 $656,986
Segment Data
Agriculture Rail Processing
Quarter ended March 31, 2005
Revenues from external customers $165,332 $17,705 $40,891
Gross Profit 15,781 8,515 5,858
Other income / Equity in earnings of
affiliates 908 185 168
Operating income (loss) 951 3,640 1,077
Quarter ended March 31, 2004
Revenues from external customers $184,193 $11,080 $45,226
Gross Profit 13,718 5,069 7,859
Other income / Equity in earnings of
affiliates 530 97 51
Operating income (loss) (1,529) 1,291 3,212
Segment Data
Retail Other Total
Quarter ended March 31, 2005
Revenues from external customers $35,052 $- $258,980
Gross Profit 9,805 - 39,959
Other income / Equity in earnings of
affiliates 132 132 1,525
Operating income (loss) (2,098) (1,937) 1,633
Quarter ended March 31, 2004
Revenues from external customers $34,551 $- $275,050
Gross Profit 9,416 - 36,062
Other income / Equity in earnings of
affiliates 156 119 953
Operating income (loss) (2,317) (1,052) (395)
SOURCE The Andersons, Inc.
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Related links:
http://www.andersonsinc.com
CONTACT:
Gary Smith of The Andersons, Inc.,
+1-419-891-6417
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