Press Releases
The Andersons, Inc.
Net income for the full year was $8.9 million, or $1.21 per diluted share, with revenues of $985 million. Net income in 2000 amounted to $10.1 million, or $1.34 per diluted share, on revenues of $961 million. Excluding non- recurring items that occurred in both years and an accounting change that was described in the company's first quarter 2001 earnings release, full-year net income was $8.8 million, or $1.21 per diluted share, in 2001, compared to $8.1 million, or $1.08 per diluted share, in 2000.
The Andersons has four operating groups: Agriculture, Processing, Rail and Retail.
During the fourth quarter, rising worldwide demand for wheat resulted in higher shipments from the Agriculture Group's elevators and lower earnings from the storage of grain. Excluding a non-recurring gain realized in 2000, the group's operating income exceeded the prior year's October-December performance. For the year, improved grain drying income, record earnings from storing grain, improved service income and stronger fertilizer margins enabled the group to achieve operating income of $19.8 million, an increase of $5.5 million, or 38%, from the $14.3 million it achieved in 2000.
The Processing Group's total revenue and net operating loss in the fourth quarter were somewhat worse than prior-year levels. While volume and margins in the group's cob business showed softness, improving margins and reduced expenses in the lawn products business led to a modest reduction in lawn's operating loss. Unfortunately, the group's full-year loss was significantly higher this year. This was caused by reduced fertilizer consumption in consumer and golf course markets in 2001, increased raw material costs and higher expenses due to the full-year operation of a premium golf course fertilizer business acquired in mid-2000. In response to the disappointing results for the past two years, the group has taken steps to significantly reduce the breakeven volume level in its lawn business and better position its product lines for the 2002 season.
Because of a cyclical downturn in its industry during the past two years, the Rail Group continued to focus primarily on short-term leasing opportunities rather than car sales or long-term leasing commitments. Improved rail marketing revenues fueled an increase in the group's fourth-quarter operating income. A non-cash charge of $1.5 million earlier in the year to reflect current values of certain rail equipment caused the group to incur a small operating loss for the year, however. During 2001, the group's fleet increased by 600 railcars and 21 locomotives.
Although the Retail Group's gross margins were stronger, the absence of demand for snow/cold weather merchandise in the months of January and December 2001 contributed to a decline in revenues and operating income in the fourth quarter and for the full year. Approximately half of the year-to-year reduction in sales and operating income was due to the 53rd week in 2000, an extra reporting period that occurs from time to time. Excluding this extra week, same-store sales declined by 0.9% and 1.3%, respectively, from 2000 fourth-quarter and full-year levels.
According to President and Chief Executive Officer Mike Anderson, "Our fourth-quarter performance was better than we predicted three months ago and displayed real strength. Excluding a $2.1 million non-recurring insurance gain late in 2000, the company's operating income grew by 50% in the October- December period this year. In spite of the significant challenges Processing has been facing and economic factors that hurt our results in Rail and Retail, the truly outstanding performance of our Agriculture Group this year enabled the Company to achieve very good operating results overall."
"While recent increases in wheat shipments indicate that grain storage income may decline in 2002, I believe that our Agriculture Group should be able to achieve results commensurate with the most recent three-year average. I also think that we're better positioned to achieve improved performance in all three of our non-agricultural businesses."
"The Company's balance sheet continues to be strong. Our capital spending program was significantly lower this year, our earnings before interest, taxes, depreciation and amortization ("EBITDA") amounted to $38 million, close to last year's figure of $39 million, and our working capital is $20 million higher than twelve months ago."
The Andersons will host a webcast on Tuesday, February 5, 2002 at 11:00 A.M. EST, to discuss its 2001 performance and outlook for 2002. The webcast can be accessed under the heading "Financial Information" on its website at http://www.andersonsinc.com/ or at http://www.videonewswire.com/event.asp?id=2740 .
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, 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.
The Andersons, Inc. is located on the Internet at www.andersonsinc.com .
The Andersons, Inc.
Consolidated Statements of Income
Three Months ended Year ended
(in thousands, except for per December 31 December 31
share amounts) 2001 2000 2001 2000
Sales and merchandising revenues $307,038 $321,725 $984,627 $961,122
Cost of sales and merchandising
revenues 262,382 276,713 825,282 804,159
Gross profit 44,656 45,012 159,345 156,963
Operating, administrative and
general expenses 37,816 38,762 139,685 137,839
Interest expense 2,626 3,590 11,570 11,829
Other income / gains:
Other income 1,314 1,034 3,503 3,989
Gain on involuntary conversion - 2,088 338 2,088
Gain on sale of business - - - 992
Income before income taxes and
cumulative effect
of accounting change 5,528 5,782 11,931 14,364
Income taxes 1,225 1,409 2,889 4,286
Income before cumulative effect of
accounting change 4,303 4,373 9,042 10,078
Cumulative effect of accounting
change, net of income tax benefit - - (185) -
Net income $4,303 $4,373 $8,857 $10,078
Per common share:
Basic earnings $0.60 $0.59 $1.22 $1.34
Diluted earnings $0.59 $0.59 $1.21 $1.34
Dividends paid $0.065 $0.060 $0.260 $0.240
Weighted average shares
outstanding-basic 7,227 7,374 7,281 7,507
Weighted average shares
outstanding-diluted 7,321 7,398 7,316 7,525
Reconciliation of reported net income to income before nonrecurring items
2001 2000
Income before cumulative effect of
change in accounting principal $9,042 $10,078
Nonrecurring items
Gain on involuntary conversion 338 2,088
Gain on sale of business - 992
Tax effect of nonrecurring items (122) (1,103)
Total nonrecurring items 216 1,977
Earnings before nonrecurring items
and
change in accounting principle $8,826 $8,101
Earnings (before nonrecurring items
and cumulative effect of change in
accounting principle) per diluted share $1.21 $1.08
Depreciation and amortization $14,264 $13,119
The Andersons, Inc.
Consolidated Balance Sheets
December 31 December 31
(in thousands) 2001 2000
Assets
Current assets:
Cash and cash equivalents $5,697 $13,138
Accounts receivable (net) and
margin deposits 54,836 57,141
Inventories 238,291 211,863
Other current assets 27,849 26,592
Total current assets 326,673 308,734
Other assets 6,300 10,020
Railcar assets leased to others (net) 26,102 22,281
Property, plant and equipment (net) 95,001 98,071
$454,076 $439,106
Liabilities and shareholders' equity
Current liabilities:
Notes payable $82,600 $71,300
Other current liabilities 169,068 182,174
Total current liabilities 251,668 253,474
Deferred items, long-term liabilities
and minority interest 16,158 15,637
Long-term debt 91,316 80,159
Shareholders' equity 94,934 89,836
$454,076 $439,106
The December 31, 2000 balance sheet has been reclassified to conform with
the December 31, 2001 presentation.
Segment Data
Quarter ended December 31, 2001 Agriculture Processing Rail
Revenues from external customers $232,217 $14,699 $10,199
Other income 364 27 235
Total $232,581 $14,726 $10,434
Operating income (loss) $6,380 $(3,444) $856
Quarter ended December 31, 2000
Revenues from external customers $246,014 $18,022 $3,833
Other income 386 65 13
Gain on involuntary conversion 2,088 - -
Total $248,488 $18,087 $3,846
Operating income (loss) $7,872 $(2,994) $(167)
Year ended December 31, 2001
Revenues from external customers $662,790 $112,827 $31,061
Other income 1,196 300 248
Gain on involuntary conversion 338 - -
Total $664,324 $113,127 $31,309
Operating income (loss) $19,765 $(7,654) $(349)
Year ended December 31, 2000
Revenues from external customers $648,410 $107,434 $18,972
Other income 1,204 358 233
Gain on sale of business - - -
Gain on involuntary conversion 2,088 - -
Total $651,702 $107,792 $19,205
Operating income (loss) $14,301 $(3,470) $1,003
Segment Data
Quarter ended December 31, 2001 Retail Other Total
Revenues from external customers $49,923 $- $307,038
Other income 153 535 1,314
Total $50,076 $535 $308,352
Operating income (loss) $1,782 $(46) $5,528
Quarter ended December 31, 2000
Revenues from external customers $53,856 $- $321,725
Other income 150 420 1,034
Gain on involuntary conversion - - 2,088
Total $54,006 $420 $324,847
Operating income (loss) $1,900 $(829) $5,782
Year ended December 31, 2001
Revenues from external customers $177,949 $- $984,627
Other income 618 1,141 3,503
Gain on involuntary conversion - - 338
Total $178,567 $1,141 $988,468
Operating income (loss) $1,868 $(1,699) $11,931
Year ended December 31, 2000
Revenues from external customers $183,817 $2,489 $961,122
Other income 611 1,583 3,989
Gain on sale of business - 992 992
Gain on involuntary conversion - - 2,088
Total $184,428 $5,064 $968,191
Operating income (loss) $3,246 $(716) $14,364
SOURCE: The Andersons, Inc.
Contact: Gary Smith of The Andersons, Inc., +1-419-891-6417
Website: http://www.andersonsinc.com/