UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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) April 28, 2003
THE ANDERSONS, INC.
(Exact name of registrant as specified in its charter)
OHIO 34-1562374
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
480 W. Dussel Drive, Maumee, Ohio 43537
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (419) 893-5050
Item 12:
The following press release was issued on April 28, 2003:
FOR IMMEDIATE RELEASE AT THE COMPANY: GARY SMITH (419) 891-6417
MONDAY, APRIL 28, 2003
THE ANDERSONS, INC. REPORTS FIRST QUARTER EARNINGS
NET INCOME OF $0.4 MILLION CONSISTENT WITH EARLIER PROJECTIONS
EPS OF $0.05 FOR PERIOD VS. $0.22 LAST YEAR
MAUMEE, OHIO, APRIL 28, 2003 -- THE ANDERSONS, INC. (NASDAQ: ANDE), today
reported first quarter net income of $0.4 million, or $0.05 per diluted share.
In the same three-month period of 2002, the company earned $1.6 million, or
$0.22 per diluted share. Total revenues of $237.9 million for the period were 11
percent higher than the first quarter of 2002.
The company's Agriculture Group achieved an operating income of $0.3 million for
the quarter, $2.2 million lower than the $2.5 million it realized in the first
quarter of 2002. Revenues of $149.2 million for the quarter were 11 percent
higher than 2002's first quarter total of $134.8 million. Plant nutrient sales
volumes were higher, and average fertilizer margins rose slightly in spite of an
increase in natural gas and nitrogen prices during January and February. These
improvements were more than offset, however, by the continued reduction in grain
storage income that had been anticipated. World grain stocks, especially corn,
have declined significantly during the past two years, and the U.S. has borne a
disproportionate share, about half, of this reduction. As a result, earnings
from the group's elevators have declined. During the quarter, the group
completed a previously announced transaction in which it acquired a minority
interest in LGC Grain Company.
The first quarter is always an important period for the company's Processing
Group as major retailers throughout the country gear up for the spring lawn and
garden season and golf course superintendents work to get their greens, tees and
fairways in prime condition following the winter. In the January - March period
this year, the group achieved an operating income of $3.7 million. This was $1.3
million, or 54 percent, above its 2002 first quarter performance. Total revenues
increased by $11.4 million from the $41.0 million generated in the first quarter
of 2002 to $52.4 million this year. While product and customer mix shifts caused
average gross margins to decline slightly, the volume of turf-care products sold
during this three-month period was 24 percent higher than a year ago.
Performance of the group's other businesses, the manufacture of cob-based
chemical
and feed ingredient carriers, animal bedding and litter products, was
commensurate with year-earlier results.
Revenues and operating income of the company's Rail Group were relatively
unchanged from the first three months of 2002. This year Rail's first quarter
income amounted to $0.3 million on revenues of $4.4 million. In the
corresponding period of 2002, income was $0.4 million on revenues of $4.2
million. The group's marketing unit continued to acquire railcars during the
quarter and now controls a fleet of more than 5,700 railcars and 51 locomotives.
The utilization rate of this fleet also improved from a year ago. Although the
group benefited from a short-term car leasing opportunity early last year which
was not repeated in the first quarter of 2003, this year-to-year decline was
mostly offset by sales growth from a new line of railcar discharge gates.
The Retail Group experienced an 8 percent reduction in same-store sales for the
quarter with revenues of $31.9 million this year vs. $34.8 million a year ago.
Easter occurred in the first quarter last year, but fell in the second quarter
in 2003. This and new competition in some markets explains some of the
year-to-year first quarter sales decline. Colder weather experienced during the
late winter months this year and economic uncertainty related to the situation
in Iraq also seem to have caused retail consumers to curtail their spending.
Because of the reduction in total sales, the group's operating loss for the
first quarter increased from $1.7 million in 2002 to $2.6 million this year.
Although total expenses grew slightly from a year ago, this was offset by
favorable inventory performance and an improvement in average gross margins made
possible in part by the recent addition of a meat market in three of the group's
six stores.
"Our first quarter earnings were right in line with our expectations," said
President and Chief Executive Officer Mike Anderson. "For some time now, I've
been describing the factors underlying a decline in grain space income. As it
turned out, our grain business did even better this quarter than I had
anticipated. While sales in our retail stores were clearly affected by economic
conditions during the first quarter, our lawn business continued to show solid
improvement."
Anderson also stated "Based on our results so far and recognizing that we still
have three-quarters of the year to go, our previous earnings projections of
$1.15 to $1.30 per share for the full year still seem appropriate. This would be
in line with historical averages and assumes, including a whole host of factors,
that planting and growing conditions for eastern corn belt farmers this year
fall somewhere within the `normal' range."
The company will host a webcast on Tuesday, April 29, 2003 at 11:00 A.M. EST, to
discuss its first-quarter performance and full-year outlook. The webcast can be
accessed under "Financial Information" on its website at www.andersonsinc.com or
at www.firstcallevents.com/service/ajwz378674470gf12.html.
The Andersons, Inc. is a respected leader and dominant regional player in grain
merchandising and agricultural nutrients distribution. Its strong position in
these
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
MARCH 31
(in thousands, except for per share amounts) 2003 2002
-------- --------
Sales and merchandising revenues $237,939 $214,831
Cost of sales and merchandising revenues 204,054 178,811
-------- --------
Gross profit 33,885 36,020
Operating, administrative and general expenses 32,087 31,787
Interest expense 2,303 2,713
Other income 1,101 792
-------- --------
Income before income taxes 596 2,312
Income taxes 207 703
-------- --------
Net income $ 389 $ 1,609
======== ========
Per common share:
Basic earnings $ 0.05 $ 0.22
======== ========
Diluted earnings $ 0.05 $ 0.22
======== ========
Dividends paid $ 0.070 $ 0.065
======== ========
Weighted average shares outstanding-basic 7,179 7,288
======== ========
Weighted average shares outstanding-diluted 7,344 7,393
======== ========
SEGMENT DATA
QUARTER ENDED MARCH 31, 2003 AGRICULTURE PROCESSING RAIL RETAIL OTHER TOTAL
----------- ---------- ---------- ---------- ---------- ----------
Revenues from external customers $ 149,193 $ 52,420 $ 4,382 $ 31,944 -- $ 237,939
Other income 543 203 50 138 167 1,101
--------- --------- --------- --------- --------- ---------
$ 149,736 $ 52,623 $ 4,432 $ 32,082 $ 167 $ 239,040
========= ========= ========= ========= ========= =========
Operating income (loss) $ 293 $ 3,739 $ 304 $ (2,623) $ (1,117) $ 596
QUARTER ENDED MARCH 31, 2002
Revenues from external customers $ 134,840 $ 40,981 $ 4,160 $ 34,850 -- $ 214,831
Other income 267 123 3 119 280 792
--------- --------- --------- --------- --------- ---------
$ 135,107 $ 41,104 $ 4,163 $ 34,969 $ 280 $ 215,623
========= ========= ========= ========= ========= =========
Operating income (loss) $ 2,524 $ 2,418 $ 380 $ (1,739) $ (1,271) $ 2,312
THE ANDERSONS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
MARCH 31 DECEMBER 31 MARCH 31
(in thousands) 2003 2002 2002
---------- ---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 7,038 $ 6,095 $ 9,592
Accounts receivable (net) and margin deposits 79,057 59,800 72,826
Inventories 248,454 256,275 238,903
Other current assets 19,660 15,716 24,271
---------- ---------- ----------
Total current assets 354,209 337,886 345,592
Other assets 13,568 12,591 11,074
Railcar assets leased to others (net) 29,783 26,399 29,247
Property, plant and equipment (net) 92,557 92,939 94,851
---------- ---------- ----------
$ 490,117 $ 469,815 $ 480,764
========== ========== ==========
Liabilities and shareholders' equity
Current liabilities:
Notes payable $ 118,200 $ 70,000 $ 128,200
Other current liabilities 159,123 187,056 143,580
---------- ---------- ----------
Total current liabilities 277,323 257,056 271,780
Deferred items, long-term liabilities and minority interest 23,618 23,647 20,128
Long-term debt 84,481 84,272 92,269
Shareholders' equity 104,695 104,840 96,587
---------- ---------- ----------
$ 490,117 $ 469,815 $ 480,764
========== ========== ==========
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: April 29, 2003 By: /s/Michael J. Anderson
Michael J. Anderson
President and Chief Executive Officer