EPS of $1.40 for Second Quarter
Grain & Ethanol and Plant Nutrient Businesses Lead Earnings Growth
MAUMEE, Ohio, Aug. 1 /PRNewswire-FirstCall/ -- The Andersons, Inc.
(Nasdaq: ANDE), today announced that its second-quarter and first-half net
income and per-share earnings established new records for the company, more
than doubling its best previous performances. Net income was $25.5 million,
or $1.40 per diluted share in the second quarter this year, and total
revenues were $634 million. In the same three-month period of 2006, the
company reported net income of $10.3 million, or $0.66 per diluted share,
on $378 million of revenues. For the first six months of 2007, the
company's net income was $34.7 million, or $1.90 per diluted share, on
revenues of $1.04 billion. In the first half of 2006, The Andersons earned
$14.2 million, or $0.90 per diluted share, on revenues of $659 million.
The company's Grain & Ethanol Group achieved operating income of $12.0
million in the most recent quarter, significantly above the $1.9 million it
earned in the second quarter of 2006. Total revenues were $324 million for
the period. This included $57 million of ethanol sales made by the group in
accordance with marketing agreements between the company and its ethanol
joint ventures. In the second quarter of 2006, the group's total revenues
were $149 million. Grain benefited from improved storage income and fee
income for originating corn for ethanol companies, including those in which
it is a significant investor. Ethanol also achieved income growth during
the most recent quarter. The Albion, Michigan plant, which commenced
production of ethanol during the second half of last year, was in operation
throughout the second quarter this year, and the plant in Clymers, Indiana
began production of ethanol this spring. Second-quarter income from the
group's investment in the Lansing Trade Group LLC was lower this year.
Through the first six months of 2007, the Grain & Ethanol Group's operating
income was $22.2 million, or $18.5 million higher than the first half of
2006. Total year-to-date revenues this year were $568 million. In 2006, the
group's first half revenues were $277 million.
The Rail Group's operating income of $6.9 million in the second quarter
of 2007 was $1.9 million more than it achieved in the same three-month
period a year ago. Revenues of $42 million for the quarter were up $14
million. The group's railcar fleet increased by about 16 percent from its
June 2006 total. However, its utilization rate (the percentage of the
fleet's railcars in service at the end of the period) decreased somewhat
from a year ago. Including some gains from railcar sales made during the
second quarter, operating income in the group's leasing business was higher
than its year- earlier results, but its railcar repair and manufacturing
businesses experienced lower operating income in total for the quarter. The
group's first half operating income this year was $9.9 million on $68
million of revenues. In 2006, operating income through the first six months
was $11.2 million and revenues amounted to $62 million.
The Plant Nutrient Group achieved operating income of $17.1 million in
the second quarter of 2007 on $183 million of revenues. The application of
nutrients in conjunction with the planting of agricultural crops throughout
the U.S. each spring makes the second quarter the key selling season for
this group. This was especially true this year. A large increase in U.S.
corn acreage this spring helped the group achieve by far its best-ever
quarterly operating income. In 2006, the group's operating income was $5.0
million for the quarter, on $113 million of revenues. The group's first
half operating income this year was $17.5 million on $249 million of
revenues. Last year, its operating income through the first six months was
$3.8 million and revenues amounted to $159 million.
The Turf & Specialty Group had operating income of $0.7 million in the
second quarter this year on $30 million of revenues. Last year, it reported
$1.3 million of income and $33 million of revenues for the period. Turf
products tonnage was lower in the second quarter this year due to
relatively dry weather throughout much of the country which curtailed sales
of some formulated products. While raw material prices remained high by
historical standards, average lawn products gross margins increased
slightly as a result of several new value-added products. Through the first
half of 2007, the group's operating income was $2.5 million on $67 million
of revenues. Last year, its operating income was $3.5 million for the same
period, and revenues amounted to $73 million.
The Retail Group reported total revenues of $55 million for the most
recent quarter. Same-store sales were down 2.9 percent for the period.
Sales of some lawn & garden products were clearly impacted by the dry
weather this spring. For this three-month period, the group achieved
operating income of $3.6 million. In the comparable period last year, the
group's operating income was $4.2 million with revenues of $55 million. The
group's six-months to-date operating income this year was $1.3 million on
$89 million of revenues. Last year, operating income through June was $1.7
million, and total revenues stood at $87 million.
"Our second-quarter and first-half results are gratifying," said
President and Chief Executive Officer Mike Anderson. "The entire Plant
Nutrient team did an excellent job in responding to unprecedented market
demand this spring, our Grain & Ethanol businesses continued to achieve
significant income growth, and we were again able to expand our railcar
fleet."
Mr. Anderson also stated, "In mid-June it became apparent that the
spring season in our agriculture-related businesses was stronger than we
had expected, and we had also begun production of ethanol at the Clymers,
Indiana plant which had been under construction for the past year. As a
result, we announced that our full-year earnings outlook had improved.
While there are still a couple of months left in the growing season this
year, and it has been drier than normal in parts of our eastern corn belt
region, we now believe that our 2007 full-year earnings will be within a
range from $2.90 to $3.15 per diluted share."
The company will host a webcast on Thursday, August 2, 2007 at 11:00
A.M. ET, to discuss its performance and full year outlook. This can be
accessed under the heading "Investor Relations" on its website at
http://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 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
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 http://www.andersonsinc.com
The Andersons, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months ended Six Months ended
June 30 June 30
(in thousands, except for per
share amounts) 2007 2006 2007 2006
Sales and merchandising revenues $634,214 $378,109 $1,040,717 $658,767
Cost of sales and merchandising
revenues 559,601 323,342 920,083 563,729
Gross profit 74,613 54,767 120,634 95,038
Operating, administrative and
general expenses 42,477 38,581 82,097 75,273
Interest expense 4,190 4,501 9,212 8,695
Other income / gains:
Equity in earnings of
affiliates 3,916 2,209 6,748 5,762
Other income, net 7,068 2,352 16,941 5,411
Minority interest in net loss /
(income) of subsidiary 433 - 516 -
Income before income taxes 39,363 16,246 53,530 22,243
Income taxes 13,875 5,899 18,803 8,061
Net income $25,488 $10,347 $34,727 $14,182
Per common share:
Basic earnings $1.43 $0.68 $1.96 $0.94
Diluted earnings $1.40 $0.66 $1.90 $0.90
Dividends paid $0.0475 $0.045 $0.0950 $0.0875
Weighted average shares
outstanding-basic 17,792 15,220 17,761 15,155
Weighted average shares
outstanding-diluted 18,245 15,776 18,260 15,728
The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)
June 30 December 31 June 30
(in thousands) 2007 2006 2006
Assets
Current assets:
Cash and cash equivalents $28,945 $23,398 $15,474
Restricted cash 3,756 3,801 3,836
Accounts receivable (net) 138,451 87,698 87,152
Margin deposits (net) 27,139 15,273 7,133
Inventories 215,925 296,457 174,310
Commodity derivative assets -
current 47,634 85,338 5,686
Other current assets 26,307 33,325 24,623
Total current assets 488,157 545,290 318,214
Investments and other assets 106,477 72,335 64,344
Commodity derivative assets 27,169 20,862 11,192
Railcar assets leased to others (net) 146,567 145,059 136,271
Property, plant and equipment (net) 99,117 95,502 91,355
$867,487 $879,048 $621,376
Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings $77,000 $75,000 $51,600
Commodity derivative liabilities -
current 39,481 43,173 9,562
Other current liabilities 215,196 265,040 169,723
Total current liabilities 331,677 383,213 230,885
Deferred items and other long-term
liabilities 40,147 41,267 33,683
Commodity derivative liability 26,002 26,531 11,066
Long-term debt non-recourse 64,382 71,624 82,529
Long-term debt 87,150 86,238 88,862
Minority interest 13,120 - -
Shareholders' equity 305,009 270,175 174,351
$867,487 $879,048 $621,376
Segment Data
Grain & Plant Turf &
Ethanol Rail Nutrient Specialty
Quarter ended June 30, 2007
Revenues from external customers $323,580 $42,445 $182,908 $30,394
Gross Profit 16,161 12,771 23,391 5,167
Other income / Equity in earnings of
affiliates 7,454 431 300 133
Operating income (loss) 11,981 6,902 17,117 706
Quarter ended June 30, 2006
Revenues from external customers $148,763 $27,836 $113,308 $33,428
Gross Profit 10,304 11,883 10,110 5,628
Other income / Equity in earnings of
affiliates 2,363 195 332 155
Operating income (loss) 1,923 4,999 5,041 1,344
Six months ended June 30, 2007
Revenues from external customers $567,523 $68,361 $249,468 $66,698
Gross Profit 31,581 22,036 28,816 11,238
Other income / Equity in earnings of
affiliates 16,268 522 456 195
Operating income (loss) 22,151 9,910 17,548 2,506
Six months ended June 30, 2006
Revenues from external customers $277,388 $62,219 $159,341 $72,933
Gross Profit 17,249 24,761 14,243 12,263
Other income / Equity in earnings of
affiliates 8,004 315 433 518
Operating income (loss) 3,703 11,217 3,806 3,493
Segment Data
Retail Other Total
Quarter ended June 30, 2007
Revenues from external customers $54,887 $- $634,214
Gross Profit 17,123 - 74,613
Other income / Equity in earnings of
affiliates 158 2,508 10,984
Operating income (loss) 3,616 (959) 39,363
Quarter ended June 30, 2006
Revenues from external customers $54,774 $- $378,109
Gross Profit 16,842 - 54,767
Other income / Equity in earnings of
affiliates 268 1,248 4,561
Operating income (loss) 4,155 (1,216) 16,246
Six months ended June 30, 2007
Revenues from external customers $88,667 $- $1,040,717
Gross Profit 26,963 - 120,634
Other income / Equity in earnings of
affiliates 318 5,930 23,689
Operating income (loss) 1,329 86 53,530
Six months ended June 30, 2006
Revenues from external customers $86,886 $- $658,767
Gross Profit 26,522 - 95,038
Other income / Equity in earnings of
affiliates 432 1,471 11,173
Operating income (loss) 1,714 (1,690) 22,243
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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