FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported) | October 22, 2003 |
THE ANDERSONS, INC.
(Exact name of registrant as specified in its charter)
| OHIO (State or other jurisdiction of incorporation or organization) |
34-1562374 (I.R.S. Employer Identification No.) |
|
| 480 W. Dussel Drive, Maumee, Ohio (Address of principal executive offices) |
43537 (Zip Code) |
Registrant’s telephone number, including area code (419) 893-5050
Item 12:
The following press release was issued on October 22, 2003:
| The Andersons, Inc. 480 W. Dussel Drive Maumee, Ohio 43537 |
FOR IMMEDIATE RELEASE
AT THE COMPANY: GARY SMITH (419) 891 - 6417
WEDNESDAY, OCTOBER 22, 2003
THE ANDERSONS, INC. REPORTS
HIGHER REVENUE
EPS $0.33 LOSS VS. $0.09 LOSS LAST YEAR
MAUMEE, OHIO, OCTOBER 22, 2003—The Andersons, Inc. (Nasdaq: ANDE), today announced a third-quarter operating loss of $2.3 million, or $0.33 per diluted share. In the same three-month period of 2002, the loss was $0.6 million, or $0.09 per diluted share. Total revenues of $253 million for the period were $48 million higher than the third quarter of 2002. Net income for the first nine months of this year was $5.0 million, or $0.68 per diluted share, with revenues of $804 million. In comparison, net income for the first nine months of 2002 totaled $11.9 million, or $1.58 per diluted share, on revenues of $721 million. These 2002 results and 2003 year-to-date performance reflect a restatement that was announced previously.
The Agriculture Group’s grain business reported increased revenues for the third quarter as a result of volume growth and higher average prices, but continued to experience an operating income decline during the period. As the company has noted previously, poor growing conditions a year ago lowered U.S. stocks of corn and soybeans, thereby reducing demand for grain storage space. The 2003 harvest is currently underway, and some industry analysts are predicting record corn production. The group’s plant nutrient business achieved volume, revenue and income growth in the most recent quarter. Continued growth in industrial and specialty agricultural products along with volume and margin strength in traditional product categories contributed to these positive results. In total, the Agriculture Group experienced a $2.8 million loss for the quarter, $3 million below the $0.2 million operating income it achieved in the third quarter of 2002. Operating income through the first nine months of 2003 was $4.0 million, down $6.2 million from the prior year. The group also indicated that the previously announced negotiations to acquire the shares of Agrico Canada, Ltd. have been discontinued.
The Rail Group’s operating income of $0.7 million in the third quarter was essentially unchanged from the same three-month period in 2002. The number of railcars and locomotives that it owns or manages continues to increase from year-earlier levels. At this time, the fleet consists of 74 locomotives and more than 6,000 rail cars. During the third quarter, the railcar repair and fabrication shops continued to contribute significantly to the group’s operating income. The Rail Group’s total operating income for the first nine months of 2003 amounted to $2.4 million, almost double its year-earlier performance.
The Processing Group incurred a loss of $1.1 million for the third quarter, improving slightly on its prior year performance for the period. Year-to-date operating income was $2.6 million, or $1.6 million better than the first nine months of 2002. Through September, turf-care product volumes were up approximately 14 percent in professional markets and 24 percent in consumer/industrial markets. However, because of product and customer mix changes and increased raw material costs, gross margins were somewhat lower. Sales growth in the group’s cob-based products business also contributed to the group’s third quarter and year-to-date income improvement.
The Retail Group achieved a 2.8 percent increase in same-store sales in the third quarter compared to the same three-month period in 2002. Average margins were down slightly, however, and expenses were somewhat higher than a year ago. As a result, the group matched its year-earlier $0.1 million operating loss for the period. Through nine months, the group’s operating income was $1.6 million. This was $0.9 million below the $2.5 million it reported for the same period of 2002.
“Our third quarter results reflect the roller-coaster nature of the grain business,” said President and Chief Executive Officer Mike Anderson. “While grain storage earnings have been declining since 2002’s poor crop harvests, I’m hopeful that we’ll see stocks begin to rebuild this fall. Our overall performance in the third quarter was right in line with our expectations and consistent with the full-year projections we’ve mentioned previously. A few months ago, I indicated that we expected 2003 full-year earnings per diluted share (EPS) to come in `near the upper end of the $1.15 to $1.30 range.’ Despite the restatement that raised 2002 EPS by 13 cents and reduced 2003 EPS by an equivalent amount, we’re not reducing our projection for this year. We’re really saying that the outlook has improved, and our expectation for total 2002 — 2003 earnings has increased.”
The company will host a webcast on Thursday, October 23, 2003 at 11:00 A.M. EDT, to discuss its third quarter performance and full-year outlook. This can be accessed under “Financial Information” on its website at www.andersonsinc.com or at www.firstcallevents.com/service/ajwz390953513gf12.html.
The Andersons, Inc. is a respected leader and dominant regional player in grain merchandising and agricultural plant nutrients distribution. Its strong position in these basic businesses has allowed the company to diversify into the production of turf care
products, rail equipment leasing, and general merchandise retailing. The company has been in operation since 1947.
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.
| The Andersons, Inc. is located on the Internet at www.andersonsinc.com |
FINANCIAL TABLES FOLLOW . . .
The Andersons, Inc.
Consolidated Statements of Operations
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30 | September 30 | |||||||||||||||||
| (in thousands, except for per share amounts) | 2003 | 2002 | 2003 | 2002 | ||||||||||||||
| (as restated) | (as restated) | |||||||||||||||||
Sales and merchandising revenues |
$ | 253,027 | $ | 204,868 | $ | 803,828 | $ | 721,430 | ||||||||||
Cost of sales and merchandising revenues |
222,789 | 171,089 | 692,978 | 603,717 | ||||||||||||||
Gross profit |
30,238 | 33,779 | 110,850 | 117,713 | ||||||||||||||
Operating, administrative and general expenses |
33,748 | 34,188 | 101,055 | 101,523 | ||||||||||||||
Interest expense |
1,603 | 2,042 | 6,119 | 7,328 | ||||||||||||||
Other income / Gains: |
||||||||||||||||||
Other income |
1,519 | 734 | 3,816 | 2,364 | ||||||||||||||
Gain on involuntary conversion |
— | — | — | — | ||||||||||||||
Income (loss) before income taxes and cumulative effect
of accounting change |
(3,594 | ) | (1,717 | ) | 7,492 | 11,226 | ||||||||||||
Income taxes |
(1,245 | ) | (1,087 | ) | 2,529 | 2,847 | ||||||||||||
Income (loss) before cumulative effect of accounting change |
(2,349 | ) | (630 | ) | 4,963 | 8,379 | ||||||||||||
Cumulative effect of accounting change, net of
income tax benefit |
— | — | — | 3,480 | ||||||||||||||
Net income (loss) |
$ | (2,349 | ) | $ | (630 | ) | $ | 4,963 | $ | 11,859 | ||||||||
Per common share: |
||||||||||||||||||
Basic earnings (loss) |
$ | (0.33 | ) | $ | (0.09 | ) | $ | 0.70 | $ | 1.62 | ||||||||
Diluted earnings (loss) |
$ | (0.33 | ) | $ | (0.09 | ) | $ | 0.68 | $ | 1.58 | ||||||||
Dividends paid |
$ | 0.065 | $ | 0.065 | $ | 0.195 | $ | 0.195 | ||||||||||
Weighted average shares outstanding-basic |
7,106 | 7,319 | 7,139 | 7,302 | ||||||||||||||
Weighted average shares outstanding-diluted |
7,106 | 7,319 | 7,311 | 7,499 | ||||||||||||||
The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)
| September 30 | December 31 | September 30 | |||||||||||
| (In Thousands) | 2003 | 2002 | 2002 | ||||||||||
| (as restated) | (as restated) | ||||||||||||
Assets |
|||||||||||||
Current assets: |
|||||||||||||
Cash and cash equivalents |
$ | 3,964 | $ | 6,095 | $ | 7,835 | |||||||
Accounts receivable (net) and margin deposits |
71,092 | 59,800 | 64,159 | ||||||||||
Inventories |
184,049 | 256,275 | 201,247 | ||||||||||
Other current assets |
16,794 | 15,119 | 13,401 | ||||||||||
Total current assets |
275,899 | 337,289 | 286,642 | ||||||||||
Other assets |
14,915 | 12,591 | 11,709 | ||||||||||
Railcar assets leased to others (net) |
26,979 | 26,399 | 25,435 | ||||||||||
Property, plant and equipment (net) |
91,716 | 92,939 | 93,039 | ||||||||||
| $ | 409,509 | $ | 469,218 | $ | 416,825 | ||||||||
Liabilities and shareholders’ equity |
|||||||||||||
Current liabilities: |
|||||||||||||
Notes payable |
$ | 80,000 | $ | 70,000 | $ | 80,000 | |||||||
Other current liabilities |
113,273 | 185,534 | 125,791 | ||||||||||
Total current liabilities |
193,273 | 255,534 | 205,791 | ||||||||||
Deferred items and other long-term liabilities |
24,105 | 23,647 | 20,812 | ||||||||||
Long-term debt |
83,241 | 84,272 | 84,961 | ||||||||||
Shareholders’ equity |
108,890 | 105,765 | 105,261 | ||||||||||
| $ | 409,509 | $ | 469,218 | $ | 416,825 | ||||||||
Segment Data
| Quarter Ended September 30, 2003 | Agriculture | Processing | Rail | Retail | Other | Total | |||||||||||||||||||||||
Revenues from external customers |
$ | 178,376 | $ | 23,522 | $ | 9,252 | $ | 41,877 | $ | — | $ | 253,027 | |||||||||||||||||
Other income |
647 | 464 | 128 | 156 | 124 | 1,519 | |||||||||||||||||||||||
| $ | 179,023 | $ | 23,986 | $ | 9,380 | $ | 42,033 | $ | 124 | $ | 254,546 | ||||||||||||||||||
Operating income (loss) |
$ | (2,828 | ) | $ | (1,139 | ) | $ | 693 | $ | (65 | ) | $ | (255 | ) | $ | (3,594 | ) | ||||||||||||
Quarter Ended September 30, 2002 (As Restated) |
|||||||||||||||||||||||||||||
Revenues from external customers |
$ | 138,531 | $ | 20,466 | $ | 5,119 | $ | 40,752 | $ | — | $ | 204,868 | |||||||||||||||||
Other income |
340 | 63 | 24 | 173 | 134 | 734 | |||||||||||||||||||||||
| $ | 138,871 | $ | 20,529 | $ | 5,143 | $ | 40,925 | $ | 134 | $ | 205,602 | ||||||||||||||||||
Operating income (loss) |
$ | 188 | $ | (1,358 | ) | $ | 733 | $ | (60 | ) | $ | (1,220 | ) | $ | (1,717 | ) | |||||||||||||
Nine Months Ended September 30, 2003 |
|||||||||||||||||||||||||||||
Revenues from external customers |
$ | 536,044 | $ | 113,072 | $ | 26,315 | $ | 128,397 | $ | — | $ | 803,828 | |||||||||||||||||
Other income |
1,705 | 782 | 213 | 689 | 427 | 3,816 | |||||||||||||||||||||||
| $ | 537,749 | $ | 113,854 | $ | 26,528 | $ | 129,086 | $ | 427 | $ | 807,644 | ||||||||||||||||||
Operating income (loss) |
$ | 4,034 | $ | 2,567 | $ | 2,373 | $ | 1,574 | $ | (3,056 | ) | $ | 7,492 | ||||||||||||||||
Nine Months Ended September 30, 2002 (As Restated) |
|||||||||||||||||||||||||||||
Revenues from external customers |
$ | 483,201 | $ | 93,730 | $ | 13,335 | $ | 131,164 | $ | — | $ | 721,430 | |||||||||||||||||
Other income |
827 | 352 | 57 | 547 | 581 | 2,364 | |||||||||||||||||||||||
| $ | 484,028 | $ | 94,082 | $ | 13,392 | $ | 131,711 | $ | 581 | $ | 723,794 | ||||||||||||||||||
Operating income (loss) |
$ | 10,278 | $ | 947 | $ | 1,253 | $ | 2,508 | $ | (3,760 | ) | $ | 11,226 | ||||||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| The Andersons, Inc. | ||
| Date: October 22, 2003 | By: /s/Michael J. Anderson Michael J. Anderson President and Chief Executive Officer |