MAUMEE, Ohio, Feb. 15, 2017 /CNW/ -- The Andersons, Inc.
(NASDAQ: ANDE) announces financial results for the fourth
quarter and full year ended December 31,
2016.
Company reports net income of $11.6
million or $0.41 per diluted
share for 2016.
- Rail Group leads the way with $32.4
million of pretax income for the year
- Ethanol Group delivers $24.7
million of pretax income
- Grain Group continued its rebound with pretax income of
$12.9 million in the quarter after a
good harvest in the Eastern Corn Belt, but loses $15.7 million for the year
- Plant Nutrient Group ends the year higher, with pretax
income of $14.2 million including
charges related to shutting down a cob facility
- Retail Group records a pretax $6.5
million asset impairment charge after Company announces its
intent to exit the business, driving a full-year pretax loss of
$8.8 million
The Company reported fourth quarter 2016 net income attributable
to The Andersons of $10.1 million, or
$0.36 per diluted share. This
represents a $5.1 million improvement
over the adjusted net income of $5.0
million, or $0.18 per diluted
share, in the same period of the prior year.
For the full year, the Company reported net income attributable
to The Andersons of $11.6 million or
$0.41 per diluted share compared to a
net loss attributable to The Andersons of $13.1 million or $0.46 per diluted share in 2015. The 2016
results included pretax impairment charges of $9.1 million, including $6.5 million in the Retail Group and $2.3 million in the Plant Nutrient Group, which
equated to $0.20 per diluted share.
Adjusted Net Income attributable to the Company for 2015 was
$41.2 million, or $1.45 per diluted share. (See table
provided on page 9 of this release for a reconciliation from net
income to adjusted net income.)
"While we are disappointed with 2016's overall results, we took
several steps throughout the year, and especially during the fourth
quarter, to improve future earnings opportunities. We
addressed underperforming assets in our portfolio by selling
underperforming Grain Group locations, closing a cob processing
facility to optimize our supply chain and manufacturing footprint,
and recently announcing the closure of our Retail Group," said CEO
Pat Bowe. "Moreover, we have
already exceeded our initial cost reduction target and identified
more than $10 million in run-rate
cost savings and other performance improvement opportunities
earlier than previously announced. We have implemented many of
these reductions and continue to aggressively pursue other
opportunities to further streamline our business operations."
Bowe went on to say, "We are pleased with the results turned in
by our Rail and Ethanol groups. Our Grain Group is showing
signs of rebounding after an improved harvest in the Eastern Corn
Belt. With fertilizer prices stabilizing, we have begun to
see signs of recovery as farmers get positioned for spring
application and planting. We remain confident in our ability
to grow our business and deliver improved results in 2017."
Fourth Quarter Highlights
- The Rail Group delivered another solid performance even as
utilization rates dropped throughout the period.
- Ethanol margins were strong during the quarter, though they
have fallen off sharply in recent weeks. The Group had a strong
finish to a good year. DDG prices were negatively impacted by
Chinese tariffs and quality discounts due to vomitoxin in the
Eastern Corn Belt.
- The Grain Group increased pretax income by $3.1 million or 32 percent over adjusted fourth
quarter 2015 results as crop production improved in the Eastern
Corn Belt. Overall group performance improved, even as Grain Group
affiliates underperformed.
- Growers remained hesitant to buy ahead of the 2017 spring
planting season as the market searched for a stable floor on
nutrient prices, causing a reduction in sales volumes in the fourth
quarter.
- The Retail Group recorded a $6.5
million pretax asset impairment charge when the Company
announced in January that it will be exiting the business in
mid-2017.
Fourth Quarter and Full Year Segment Overview
Rail Group Delivered a Solid Year in Spite of Weakening
Market
North American rail traffic volume declined year over year for
both the quarter and for the full year. Class I railroad
velocities remain high, continuing to pressure railcar
utilization.
$ in
millions
|
Fourth Quarter
|
Full
Year
|
Pretax
Income
|
2016
|
2015
|
Vs
|
2016
|
2015
|
Vs
|
Lease
Income
|
$2.9
|
$4.5
|
$(1.6)
|
$13.2
|
$31.5
|
$(18.3)
|
Utilization
Rate
|
84.8%
|
92.7%
|
(7.9%)
|
87.8%
|
92.4%
|
(4.6%)
|
Car
Sales
|
$4.7
|
$0.8
|
$3.9
|
$11.0
|
$13.3
|
$(2.3)
|
Repair
& Other
|
$2.1
|
$1.5
|
$0.6
|
$8.2
|
$5.9
|
$2.3
|
Total Rail
Group
|
$9.7
|
$6.8
|
$2.9
|
$32.4
|
$50.7
|
$(18.3)
|
|
|
|
|
|
|
|
|
|
The Rail Group earned fourth quarter pretax income of
$9.7 million compared to $6.8 million in the same period of the prior
year. Base leasing operations earned pretax income of
$2.9 million in spite of a nearly
eight percent utilization drop, to an average of 84.8 percent in
the fourth quarter compared to 92.7 percent in the same period last
year. Average lease rates were slightly down compared to the
same period of 2015. Higher freight and storage costs were
more than offset by lower maintenance costs.
For the full year, the Rail Group earned pretax income of
$32.4 million compared to
$50.7 million in 2015. Almost
two-thirds of the full-year variance resulted from an $11.7 million decrease in early lease termination
income which was unusually high in 2015. The remaining
difference was primarily the result of utilization rates that
softened throughout 2016. Full year 2016 base leasing pretax
income was $13.2 million, down from
$31.5 million in 2015, including the
unusual early lease termination income.
Railcar sales generated $4.7
million of pretax income in the fourth quarter and
$11.0 million for the full year
compared to $0.8 million and
$13.3 million in the same periods of
2015, respectively. The timing of these transactions varies
quarter to quarter and year to year depending on rail market and
financing conditions.
Rail services and other pretax income was $2.1 million in the fourth quarter and
$8.2 million for the full year, up
from $1.5 million and $5.9 million in the same periods of 2015.
The performance of the Group's repair and fabrication facilities
improved dramatically.
As 2017 begins, railroad shipping volumes have shown early signs
of improvement after a difficult operating environment in
2016. The Rail Group's lease and car portfolio positions it
well to manage the rail cycle with a highly diverse customer base
that represents a wide spectrum of industries.
Ethanol Group Improved Performance Year over Year on Strong
Market Fundamentals
The Ethanol Group earned pretax income of $11.7 million in the fourth quarter, a 52 percent
improvement over the $7.7 million
earned in the fourth quarter of 2015. The improvement was
driven by higher margins compared to the prior year. For the
year, the Group earned pretax income of $24.7 million compared to $28.5 million last year.
The Group delivered a second consecutive annual production
record in 2016. The ethanol joint ventures produced 387
million gallons compared to 384 million gallons in 2015.
Margins on co-products were under pressure in the fourth quarter
as localized problems with vomitoxin and lower international
demand, particularly as a result of Chinese tariffs, put pressure
on distillers dried grain pricing.
Construction is nearing completion to expand the ethanol
production facility in Albion,
Michigan. This expansion will double the production of the
facility to 130 million gallons a year and will be running at full
capacity by the end of the second quarter of 2017. Strong
local supplier and customer relationships will help support this
investment.
Grain Group Enjoys Good Harvest and Begins to Rebound
In the fourth quarter, the Grain Group began to take advantage
of improved crop conditions in the Eastern Corn Belt and benefited
from shedding its underperforming Iowa assets earlier this year. Overall,
grain production in the Eastern Corn Belt rebounded from last year
with bushel increases across all grains in key draw areas.
Bean yields were strong and corn production in the Group's
footprint was substantially better in 2016.
The table below compares adjusted Grain Group pretax income for
both the fourth quarter and full year in 2015 to 2016 results which
had no adjustments. 2015 adjustments were made for the
following items:
- A $46.4 million pretax charge for
impairment of goodwill.
- A $23.1 million pretax gain
recognized as the result of a partial redemption and related
dilution of the Company's ownership stake in Lansing Trade Group
(LTG).
$ in MM
|
Fourth Quarter
|
Full
Year
|
|
2016
|
2015
|
Vs
|
2016
|
2015
|
Vs
|
Reported Grain
Group
|
$12.9
|
($13.5)
|
$26.4
|
($15.7)
|
($9.4)
|
($6.3)
|
Goodwill impairment
|
$ -
|
$46.4
|
($46.4)
|
$ -
|
$46.4
|
($46.4)
|
Gain on
LTG Redemption
|
$ -
|
($23.1)
|
$23.1
|
$ -
|
($23.1)
|
$23.1
|
Adjusted Grain
Group
|
$12.9
|
$9.8
|
$3.1
|
($15.7)
|
$13.9
|
($29.6)
|
|
|
|
|
|
|
|
|
|
In addition, the table below separates pretax results of Base
Grain, which includes grain facilities that the Company operates,
from pretax earnings of investments in grain affiliates, which
include LTG and Thompsons Limited.
$ in MM
|
Fourth
Quarter
|
Full
Year
|
Adjusted Pretax
Income
|
2016
|
2015
|
Vs
|
2016
|
2015
|
Vs
|
Base Grain
|
$15.9
|
$6.2
|
$9.7
|
$(5.7)
|
$0.6
|
($6.3)
|
Grain
Affiliates
|
$(3.0)
|
$3.6
|
($6.6)
|
$(10.0)
|
$13.3
|
($23.3)
|
Total Grain
Group
|
$12.9
|
$9.8
|
$3.1
|
$(15.7)
|
$13.9
|
($29.6)
|
|
|
|
|
|
|
|
|
|
The Grain Group earned pretax income of $12.9 million in the fourth quarter of 2016, a
$3.1 million or 32 percent increase
over the $9.8 million in adjusted
income earned in the same period last year. Base Grain pretax
income was up by $9.7 million in 2016
compared to adjusted 2015 results.
For the full year, the Group incurred a pretax loss of
$15.7 million, a drop of $29.6 million from the $13.9 million in adjusted pretax income realized
in the same period last year. Lower Grain affiliates results
accounted for almost 80 percent of the change. The
declines were largely driven by weakness in the DDG export markets
served by LTG and include a charge of $1.5
million (The Andersons' proportional share) related to an
LTG debt refinancing completed in the fourth quarter of
2016.
Factors driving better Base Grain results included:
- Significantly better production in most of the Group's draw
areas, allowing the Group to purchase grain at more attractive
basis levels.
- Strong wheat storage rates, which are expected to continue as a
result of historically high stocks.
Results for the Grain Groups' affiliates, LTG and Thompsons
Limited, combined for a pretax loss of $3.0
million in the fourth quarter of 2016 and $10.0 million for the full year compared to
pretax income of $3.6 million and
$13.3 million for the same periods in
the prior year.
The Group estimates that growers will plant 90 to 93 million
acres of corn in 2017, slightly below the 94 million acres planted
in 2016. Soybean planted acres are expected to be 87 to 90
million, compared to 83 million acres planted last year.
Total wheat acres planted have been reported to be approximately 50
million in 2016 compared to 55 million in 2015. Planting and
growing conditions and crop yields that are comparable to those of
2016 should create more opportunity for the Grain Group to sustain
its recovery.
Plant Nutrient Group
The Plant Nutrient Group incurred a pretax loss of $3.8 million in the fourth quarter of 2016
compared to adjusted pretax income of $2.1
million earned in the fourth quarter of 2015. The bulk
of the drop-off in performance related to $3.3 million of expenses incurred while closing a
cob production and storage facility in Mount Pulaski, Illinois during the
quarter. This included $2.3
million of asset impairment charges as well as severance and
other closing costs. The closure will facilitate the
consolidation of operations and address the depressed profitability
of the product line.
The Group's performance in the fourth quarter was also hampered
by continuing pressure on volumes and margins; each were down
compared to the fourth quarter of 2015. Fertilizer prices
continued to decline; in addition, lower net farm income kept many
buyers on the sidelines.
The table below adjusts 2015 pretax income for items that are
not reflective of ongoing operations.
|
|
Fourth
Quarter
|
|
Full
Year
|
$ in MM
|
2016
|
2015
|
Vs
|
2016
|
2015
|
Vs
|
Reported Plant
Nutrient Group
|
($3.8)
|
($8.1)
|
$4.3
|
$14.2
|
$0.1
|
$14.1
|
One-time
acquisition costs
|
$ -
|
$2.4
|
($2.4)
|
$ -
|
$4.9
|
($4.9)
|
Goodwill
Impairment
|
$ -
|
$7.8
|
($7.8)
|
$ -
|
$9.8
|
($9.8)
|
Adjusted Plant
Nutrient Group
|
($3.8)
|
$2.1
|
($5.9)
|
$14.2
|
$14.8
|
($0.6)
|
|
|
|
|
|
|
|
|
|
For the full year, the Group generated $14.2 million of pretax income compared to
adjusted pretax income of $14.8
million in 2015.
Adjustments made in 2015 include:
- Expenses of $2.4 million in the
fourth quarter and $4.9 million for
the full year associated with the acquisition of the Nutra-Flo
business.
- Goodwill impairment charges of $7.8
million associated with the Farm Centers in the fourth
quarter and $2.0 million related to
the Cob business in the third quarter.
Most of the fourth quarter produced results that were not unlike
those of the third quarter, as many customers delayed purchases due
to the declining price environment. Compared to the fourth
quarter of 2015, nutrient volume was down slightly, and margins
were compressed as the nutrient prices stayed low. Liquid
nitrogen prices softened by almost $60 per ton or 25 percent and potash dropped
about $95 per ton or 29
percent.
2015 full year results of the Group were negatively impacted by
$10.1 million of expenses related to
the acquisition of Nutra-Flo in May 2015. Of these costs,
$4.9 million were nonrecurring,
related to deal cost and higher cost of sales due to purchase
accounting inventory step up. The remaining $5.2 million were recurring operating expenses
related to the added overhead, depreciation and other expenses
which occur throughout the year. Sales and profits of the
acquired product lines generally peak late in the first quarter and
in the second quarter of the year as they are most heavily used in
planting season so the Group did not benefit from the majority of
the earnings of Nutra-Flo during the 2015 acquisition year.
The Company expects the Plant Nutrient businesses to begin to
return to historic levels of profitability given typical planting
and growing conditions. The Company has begun to see signs of
improvement in fertilizer orders and price stability in the early
weeks of 2017. The Group expects Nutra-Flo to have improved
performance in 2017 supporting margin growth in the Group as value
add products represent a higher portion of its total product
mix.
Company to Exit Retail Business
In January, the Company announced it will close its remaining
four retail stores and shut down the business in mid-2017.
The Retail Group recorded a pretax asset impairment charge of
$6.5 million in the fourth quarter to
write down its long-lived assets to fair value.
The Group incurred a pretax loss of $6.2
million in the fourth quarter and a pretax loss of
$8.8 million for the full year.
Before the impairment charge, the Group earned pretax income of
$0.3 million in the fourth quarter
and lost $2.3 million for the year
compared to fourth quarter pretax income of $1.0 million and a full-year pretax loss of
$0.5 million in 2015.
Other Expenses Decrease
Unallocated Company level expenses for 2016 were $28.3 million, down from an adjusted $31.3 million in 2015 which excludes the
$51.4 million pretax charge
associated with the termination of the Company's pension plan in
the fourth quarter of 2015.
Conference Call
The Company will host a webcast on Thursday, February
16, 2017 at 11:00 A.M. ET, to
discuss its performance and provide outlook for 2017. To
dial-in to the call, the number is 866-439-8514 or 678-509-7568
(participant passcode is 59598749). The call will start promptly at
11:00 A.M. ET.
To access the webcast: Click on the link:
http://edge.media-server.com/m/p/6baseedn Log on. Click
on the phone icon at the bottom of the "webcast window" on the left
side of the screen. Then, you will be provided with the
conference call number and passcode. Click the gear set icon
(left of the telephone icon) and select 'Live Phone' to synchronize
the presentation with the audio on your phone. A replay of
the call can also be accessed under the heading "Investor" on the
Company website at www.andersonsinc.com.
Forward Looking Statements
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.
Non-GAAP Measures
This release contains non-GAAP financial measures. "Adjusted
Pretax Income Attributable to The Andersons" is our primary measure
of period-over-period comparisons, and we believe it is a
meaningful measure for investors to compare our results from period
to period. We have excluded items that we believe are not
representative of our ongoing operations when calculating this
Adjusted Pretax Income. Reconciliations of the non-GAAP to GAAP
measures may be found within the financial tables provided within
in the release and a reconciliation of the reported GAAP net income
to non-GAAP adjusted net income is provided in a table below.
Company Description
Founded in Maumee, Ohio, in
1947, The Andersons is a diversified Company rooted in agriculture
conducting business across North
America in the grain, ethanol, plant nutrient and rail
sectors. For more information, visit The Andersons online at
www.andersonsinc.com.
The Andersons,
Inc.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
(in thousands, except
per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales and
merchandising revenues
|
$
|
1,113,055
|
|
$
|
1,183,473
|
|
$
|
3,924,790
|
|
$
|
4,198,495
|
Cost of sales and
merchandising revenues
|
1,009,361
|
|
1,084,309
|
|
3,579,284
|
|
3,822,657
|
Gross
profit
|
103,694
|
|
99,164
|
|
345,506
|
|
375,838
|
Operating,
administrative and general expenses
|
84,629
|
|
89,056
|
|
318,395
|
|
337,829
|
Pension
settlement
|
-
|
|
51,446
|
|
-
|
|
51,446
|
Asset
impairment
|
8,820
|
|
-
|
|
9,107
|
|
285
|
Goodwill
impairment
|
-
|
|
54,180
|
|
-
|
|
56,166
|
Interest
expense
|
3,073
|
|
3,862
|
|
21,119
|
|
20,072
|
Other
income:
|
|
|
|
|
|
|
|
Equity in earnings of
affiliates
|
5,932
|
|
8,629
|
|
9,721
|
|
31,924
|
Other income,
net
|
3,631
|
|
26,237
|
|
14,775
|
|
46,472
|
Income (loss) before
income taxes
|
16,735
|
|
(64,514)
|
|
21,381
|
|
(11,564)
|
Income tax provision
(benefit)
|
5,425
|
|
(17,797)
|
|
6,911
|
|
(242)
|
Net income
(loss)
|
11,310
|
|
(46,717)
|
|
14,470
|
|
(11,322)
|
Net income
attributable to the noncontrolling interests
|
1,165
|
|
312
|
|
2,876
|
|
1,745
|
Net income (loss)
attributable to The Andersons, Inc.
|
$
|
10,145
|
|
$
|
(47,029)
|
|
$
|
11,594
|
|
$
|
(13,067)
|
|
|
|
|
|
|
|
|
Per common
share:
|
|
|
|
|
|
|
|
Basic earnings
attributable to The Andersons, Inc. common shareholders
|
$
|
0.36
|
|
$
|
(1.68)
|
|
$
|
0.41
|
|
$
|
(0.46)
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
|
0.36
|
|
$
|
(1.68)
|
|
$
|
0.41
|
|
$
|
(0.46)
|
Dividends
declared
|
$
|
0.16
|
|
$
|
0.155
|
|
$
|
0.625
|
|
$
|
0.575
|
The Andersons,
Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
December 31,
2016
|
|
December 31,
2015
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
62,630
|
|
$
|
63,750
|
|
Restricted
cash
|
471
|
|
451
|
|
Accounts receivable,
net
|
194,698
|
|
170,912
|
|
Inventories
|
682,747
|
|
747,399
|
|
Commodity derivative
assets – current
|
45,447
|
|
49,826
|
|
Deferred income
taxes
|
-
|
|
6,772
|
|
Other current
assets
|
72,133
|
|
90,412
|
|
Total current
assets
|
1,058,126
|
|
1,129,522
|
|
Other
assets:
|
|
|
|
|
Commodity derivative
assets – noncurrent
|
100
|
|
412
|
|
Other assets,
net
|
180,445
|
|
193,689
|
|
Equity method
investments
|
216,931
|
|
242,107
|
|
|
397,476
|
|
436,208
|
|
Rail Group assets
leased to others, net
|
327,195
|
|
338,111
|
|
Property, plant and
equipment, net
|
450,052
|
|
455,260
|
|
Total
assets
|
$
|
2,232,849
|
|
$
|
2,359,101
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
$
|
29,000
|
|
$
|
16,990
|
|
Trade and other
payables
|
581,826
|
|
668,788
|
|
Customer prepayments
and deferred revenue
|
48,590
|
|
66,762
|
|
Commodity derivative
liabilities – current
|
23,167
|
|
37,387
|
|
Accrued expenses and
other current liabilities
|
69,648
|
|
70,324
|
|
Current maturities of
long-term debt
|
47,545
|
|
27,786
|
|
Total current
liabilities
|
799,776
|
|
888,037
|
|
|
|
|
|
|
Other long-term
liabilities
|
27,833
|
|
18,176
|
|
Commodity derivative
liabilities – noncurrent
|
339
|
|
1,063
|
|
Employee benefit plan
obligations
|
35,026
|
|
45,805
|
|
Long-term debt, less
current maturities
|
397,065
|
|
436,208
|
|
Deferred income
taxes
|
182,113
|
|
186,073
|
|
Total
liabilities
|
1,442,152
|
|
1,575,362
|
|
Total
equity
|
790,697
|
|
783,739
|
|
Total liabilities and
equity
|
$
|
2,232,849
|
|
$
|
2,359,101
|
|
The Andersons,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Segment
Data
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Grain
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Retail
|
|
Other
|
|
Total
|
Three months ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
745,179
|
|
$
|
147,930
|
|
$
|
136,379
|
|
$
|
45,506
|
|
$
|
38,061
|
|
$
|
—
|
|
$
|
1,113,055
|
Gross
profit
|
43,866
|
|
7,097
|
|
26,478
|
|
15,240
|
|
11,013
|
|
—
|
|
103,694
|
Equity in earnings of
affiliates
|
(2,605)
|
|
8,537
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,932
|
Other income,
net
|
1,801
|
|
38
|
|
988
|
|
205
|
|
244
|
|
355
|
|
3,631
|
Income (loss) before
income taxes
|
12,912
|
|
12,840
|
|
(3,832)
|
|
9,730
|
|
(6,204)
|
|
(8,711)
|
|
16,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interests
|
—
|
|
1,165
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,165
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
12,912
|
|
$
|
11,675
|
|
$
|
(3,832)
|
|
$
|
9,730
|
|
$
|
(6,204)
|
|
$
|
(8,711)
|
|
$
|
15,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Three months ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Revenues from
external customers
|
$
|
778,250
|
|
$
|
143,058
|
|
$
|
187,898
|
|
$
|
36,351
|
|
$
|
37,916
|
|
$
|
—
|
|
$
|
1,183,473
|
Gross
profit
|
38,989
|
|
5,930
|
|
28,556
|
|
14,625
|
|
11,064
|
|
—
|
|
99,164
|
Equity in earnings of
affiliates
|
3,940
|
|
4,690
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8,630
|
Other income (loss),
net
|
23,547
|
|
294
|
|
605
|
|
1,169
|
|
273
|
|
349
|
|
26,237
|
Income (loss) before
income taxes
|
(13,471)
|
|
7,984
|
|
(8,062)
|
|
6,766
|
|
1,028
|
|
(58,759)
|
|
(64,514)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interest
|
(2)
|
|
315
|
|
—
|
|
—
|
|
—
|
|
—
|
|
313
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
(13,469)
|
|
$
|
7,669
|
|
$
|
(8,062)
|
|
$
|
6,766
|
|
$
|
1,028
|
|
$
|
(58,759)
|
|
$
|
(64,827)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Retail
|
|
Other
|
|
Total
|
Twelve months
ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
2,357,171
|
|
$
|
544,556
|
|
$
|
725,176
|
|
$
|
163,658
|
|
$
|
134,229
|
|
$
|
—
|
|
$
|
3,924,790
|
Gross
profit
|
108,082
|
|
20,304
|
|
122,131
|
|
55,929
|
|
39,060
|
|
—
|
|
345,506
|
Equity in earnings
(loss) of affiliates
|
(8,746)
|
|
18,467
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,721
|
Other income,
net
|
5,472
|
|
77
|
|
3,716
|
|
2,218
|
|
507
|
|
2,785
|
|
14,775
|
Income (loss) before
income taxes
|
(15,654)
|
|
27,602
|
|
14,176
|
|
32,428
|
|
(8,848)
|
|
(28,323)
|
|
21,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interests
|
(3)
|
|
2,879
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,876
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
(15,651)
|
|
$
|
24,723
|
|
$
|
14,176
|
|
$
|
32,428
|
|
$
|
(8,848)
|
|
$
|
(28,323)
|
|
$
|
18,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Twelve months
ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Revenues from
external customers
|
$
|
2,483,643
|
|
$
|
556,188
|
|
$
|
848,338
|
|
$
|
170,848
|
|
$
|
139,478
|
|
$
|
—
|
|
$
|
4,198,495
|
Gross
profit
|
123,645
|
|
24,324
|
|
119,540
|
|
67,687
|
|
40,642
|
|
—
|
|
375,838
|
Equity in earnings of
affiliates
|
14,703
|
|
17,221
|
|
—
|
|
—
|
|
—
|
|
—
|
|
31,924
|
Other income (loss),
net
|
26,229
|
|
377
|
|
3,046
|
|
15,935
|
|
557
|
|
328
|
|
46,472
|
Income (loss) before
income taxes
|
(9,456)
|
|
30,258
|
|
121
|
|
50,681
|
|
(455)
|
|
(82,713)
|
|
(11,564)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
attributable to the noncontrolling interest
|
(10)
|
|
1,755
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,745
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
(9,446)
|
|
28,503
|
|
121
|
|
50,681
|
|
(455)
|
|
(82,713)
|
|
(13,309)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Income (loss)
before income taxes attributable to The Andersons, Inc. for each
Group is defined as net sales and merchandising revenues plus
identifiable other income less all identifiable operating expenses,
including interest expense for carrying working capital and
long-term assets and is reported net of the noncontrolling interest
share of income (loss).
|
The Andersons,
Inc.
|
|
|
|
|
|
|
Reconciliation to
Adjusted Net Income
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
(in thousands, except
per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
attributable to The Andersons, Inc.
|
$
|
10,145
|
|
$
|
(47,029)
|
|
$
|
11,594
|
|
$
|
(13,067)
|
Items impacting other
income, net of tax:
|
|
|
|
|
|
|
|
Goodwill
impairment
|
-
|
|
33,592
|
|
|
|
34,822
|
Pension
settlement
|
-
|
|
31,897
|
|
|
|
31,897
|
Partial redemption of
investment in Lansing Trade Group
|
-
|
|
(14,328)
|
|
|
|
(14,328)
|
One-time acquisition
costs
|
-
|
|
901
|
|
|
|
1,863
|
Total adjusting
items
|
-
|
|
52,062
|
|
-
|
|
54,254
|
Adjusted net income
attributable to The Andersons, Inc.
|
$
|
10,145
|
|
$
|
5,033
|
|
$
|
11,594
|
|
$
|
41,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
attributable to The Andersons, Inc. common shareholders
|
$
|
0.36
|
|
$
|
(1.68)
|
|
$
|
0.41
|
|
$
|
(0.46)
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings per share
|
-
|
|
1.86
|
|
-
|
|
1.91
|
Adjusted diluted
earnings per share
|
$
|
0.36
|
|
$
|
0.18
|
|
$
|
0.41
|
|
$
|
1.45
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/the-andersons-inc-reports-fourth-quarter-and-full-year-results-300408273.html
SOURCE The Andersons, Inc.