The Andersons, Inc.
The company and its Audit Committee determined on Wednesday, November 16 that the restatement was needed and that it had not maintained effective controls over the preparation of its financial statements for the third quarter of 2005. The company determined that a control breakdown occurred during the third quarter concerning certain data used in the preparation of the cash flow statement and this breakdown constituted a material weakness for the period. Subsequent to the discovery of this error, the Company has implemented enhanced procedures to properly prepare its financial statements, specifically the condensed consolidated statement of cash flow.
The cash flow statement containing the error, found on page 6 of the November 8th filing, should have indicated a gain of $2.1 million on sales of railcars and related leases for the nine month period, instead of the $4.9 million reported. The statement should also have indicated $49.3 million of proceeds from sale or financing of railcars and related leases for the period, instead of the $52.1 million reported.
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 products 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.
The Andersons, Inc. is located on the Internet at www.andersonsinc.com
SOURCE: The Andersons, Inc.
CONTACT: Gary Smith of The Andersons, Inc., +1-419-891-6417
Web site: http://www.andersonsinc.com/