The Andersons, Inc. Reports 1st Qtr. Loss of $0.8 Million Total Revenues of $220.2 Million; Up 7.6%

EPS (11) cents vs. 16 cents Last Year



Apr 25, 2001, 01:00 ET from The Andersons, Inc.

    MAUMEE, Ohio, April 25 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE),
 today announced a net loss of $815,000, or $0.11 per diluted share, for the
 first quarter of 2001. In the comparable period last year, the company earned
 $1.2 million net income, or $0.16 per diluted share. Total revenues of $220.2
 million were $15.6 million, or 7.6%, higher than the $204.6 million generated
 in the first quarter of 2000.
     Included in these first quarter 2001 results were the impact of a $338,000
 non-recurring pretax gain resulting from an insurance settlement and the
 cumulative $(185,000) after-tax effect of an accounting change.  Income in the
 comparable three-month period in 2000 included a $907,000 one-time pretax gain
 on the sale of the company's interest in a subsidiary.
 
     Agriculture
     The company's Agriculture Group operates grain elevators, fertilizer
 distribution terminals and farm centers in Ohio, Michigan, Indiana and
 Illinois. Collectively, these facilities handle more than 150 million bushels
 of grain and 1.3 million tons of dry and liquid agricultural fertilizer
 products annually.
     U.S. grain inventories remain relatively high, enabling the group's grain
 business to continue to generate significant earnings from its storage
 capacity. The unit's elevators also experienced higher inbound and outbound
 shipments during the first quarter of 2001 vs. the comparable period of 2000.
 Protracted cold weather during the first three months this year curtailed
 wholesale fertilizer shipments slightly. However, margins were somewhat
 stronger than year-earlier levels. The bottom line for the wholesale
 fertilizer business and also for the group's farm centers was relatively
 unchanged from the prior year. Because of the strong performance in the grain
 business, however, the total group achieved significant growth in revenues and
 income for the quarter.
 
     Rail
     The Rail Group leases and markets railroad cars and locomotives. It also
 repairs railcars and operates a custom steel fabrication business. The group's
 railcar marketing segment has grown significantly in the past few years and
 now controls a fleet of more than 4,900 railcars and 30 locomotives that are
 leased to shippers, railroads and fleet owners in a wide range of industries
 in the U.S. and Canada.
     Because of a slowdown in demand for many types of rail equipment
 throughout the past year, this group has primarily pursued short-term leasing
 opportunities rather than making car sales or entering into long-term leasing
 commitments.  While there are signs that the cyclical downturn may be easing,
 the group incurred a slight operating loss for the quarter.
 
     Processing
     The Processing Group manufactures turf and ornamental plant fertilizer and
 control products. With a national production and logistics infrastructure, it
 serves major retailers throughout the country and is the industry leader in
 premium fertilizer products for golf courses and other professional turf care
 markets.  The group also produces chemical and feed-ingredient carriers,
 animal bedding, cat litter and ice-melter products.
     Revenues were significantly higher during the period because of an
 acquisition made last year. The group's operating results for the quarter were
 below the prior year, however, in part due to continued cold weather
 throughout much of the country that delayed the start of turf care activities
 by golf course superintendents as well as by homeowners. In addition, margins
 were hurt by increases in fuel and nitrogen-based ingredient costs that the
 group was unable to pass on to its customers.
 
     Retail
     This group operates six large stores in Ohio.  With a theme of More For
 Your Home(TM), these stores offer traditional home center merchandise
 including hardware, plumbing, electrical and building supplies, but also
 feature indoor and outdoor garden centers, extensive lines of housewares and
 domestics, automotive supplies, pet supplies, sporting goods and a unique
 specialty food offering.
     A year ago, daytime temperatures reached the seventies in our region
 during March.  This year the month was much more like winter.  Consequently,
 sales of warm weather goods failed to take off, and the group experienced a
 decline in revenue for the first quarter when compared to the same three
 months of 2000.  Although gross margins increased slightly, the group's first
 quarter operating loss this year was wider than that incurred a year earlier.
 
     Company
     According to President and Chief Executive Officer Mike Anderson, "Many
 companies are experiencing an economic slowdown at the present time, and The
 Andersons is no exception.  While our Agriculture Group more than doubled
 operating income for the period, the other three businesses all experienced a
 decline in operating results.  Given our first quarter experience and the
 uncertain economic outlook, I anticipate that our full year performance may
 fall short of last year's results from continuing operations -- $1.15 per
 share before a non-recurring insurance gain.  Although we're currently going
 through these cycles, I continue to feel bullish about the longer-term
 outlook."
     Recently, the company paid a quarterly cash dividend of 6.5 cents per
 share to shareholders of record as of April 2, 2001.  The company is
 authorized by its board of directors to continue to repurchase shares from
 time to time.
     The Andersons will host a webcast on April 26, 2001 at 11:00 A.M. EST, to
 discuss these first quarter results and the full-year earnings outlook. The
 webcast can be accessed through the company's website www.andersonsinc.com
 under the heading "Financial Information" or at
 www.videonewswire.com/ANDERSONS/042601/.
     The Andersons, Inc. is a respected leader and prominent regional player in
 grain merchandising. Its strong position in this basic business has allowed
 the company to diversify into other agribusiness operations, railcar leasing,
 turf care product manufacturing 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,
 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 Operations
                                  (Unaudited)
 
                                                   Three Months ended March 31
     (in thousands, except for per share amounts)    2001              2000
 
     Sales and merchandising revenues              $220,232          $204,607
     Cost of sales and merchandising revenues       185,117           169,553
     Gross profit                                    35,115            35,054
 
     Operating, administrative
       and general expenses                          33,351            32,457
     Interest expense                                 3,614             2,676
     Other income / gains:
       Other income                                     584             1,011
       Gain on insurance settlement                     338                 -
       Gain on sale of business                           -               907
     Income (loss) before income taxes and
       cumulative effect of accounting change          (928)            1,839
     Income taxes (credit)                             (298)              617
     Net income (loss) before cumulative
       effect of accounting change                     (630)            1,222
     Cumulative effect of accounting
       change, net of income tax benefit               (185)                -
     Net income (loss)                                $(815)           $1,222
 
     Per common share:
       Basic earnings (loss)                         $(0.11)            $0.16
       Diluted earnings (loss)                       $(0.11)            $0.16
       Dividends paid                                $0.065            $0.060
 
     Weighted average shares outstanding - basic      7,371             7,670
     Weighted average shares outstanding - diluted    7,371             7,674
 
 
                               The Andersons, Inc.
                            Consolidated Balance Sheets
                                    (Unaudited)
 
                                              March 31  December 31   March 31
                (in thousands)                  2001        2000        2000
 
     Assets
       Cash and cash equivalents               $6,246     $13,138      $6,047
       Accounts receivable and
         margin deposits                       63,610      55,475      75,637
       Inventories                            213,424     209,706     179,447
       Other current assets                    28,727      24,505      27,369
     Total current assets                     312,007     302,824     288,500
 
     Other assets:                              7,882      10,020       5,959
     Railcar assets leased to others (net)     26,690      22,281      18,929
     Property, plant and equipment (net)       96,945      98,071      95,852
                                             $443,524    $433,196    $409,240
 
     Liabilities and owners' equity
     Current liabilities:
       Notes payable                         $114,600     $71,300     $88,800
       Other current liabilities              147,315     176,264     148,423
     Total current liabilities                261,915     247,564     237,223
 
     Deferred items, long-term liabilities
       and minority interest                   15,800      15,637      14,379
     Long-term debt                            78,251      80,159      73,003
     Shareholders' equity                      87,558      89,836      84,635
       Total                                 $443,524    $433,196    $409,240
 
 
                                    Segment Data
                                   (in thousands)
 
      Quarter ended
        March 31, 2001   Agriculture Processing Rail   Retail  Other   Total
 
     Revenues from
      external customers  $137,512   $42,246  $7,971  $32,503     $-  $220,232
     Other income              188        97      10      135    154       584
     Gain on insurance
      settlement               338         -       -        -      -       338
       Total              $138,038   $42,343  $7,981  $32,638   $154  $221,154
 
     Operating income
      (loss)                $3,329     $(243)  $(295) $(2,993) $(726)    $(928)
 
     Quarter ended
       March 31, 2000
     Revenues from
      external customers  $125,046   $35,409  $6,473  $35,190  $2,489 $204,607
     Other income              266        92     136      106     411    1,011
     Gain on sale of
      business                   -         -       -        -     907      907
       Total              $125,312   $35,501  $6,609  $35,296  $3,807 $206,525
     Operating income
        (loss)              $1,415    $1,701    $481  $(2,169)   $411   $1,839
 
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SOURCE The Andersons, Inc.
    MAUMEE, Ohio, April 25 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE),
 today announced a net loss of $815,000, or $0.11 per diluted share, for the
 first quarter of 2001. In the comparable period last year, the company earned
 $1.2 million net income, or $0.16 per diluted share. Total revenues of $220.2
 million were $15.6 million, or 7.6%, higher than the $204.6 million generated
 in the first quarter of 2000.
     Included in these first quarter 2001 results were the impact of a $338,000
 non-recurring pretax gain resulting from an insurance settlement and the
 cumulative $(185,000) after-tax effect of an accounting change.  Income in the
 comparable three-month period in 2000 included a $907,000 one-time pretax gain
 on the sale of the company's interest in a subsidiary.
 
     Agriculture
     The company's Agriculture Group operates grain elevators, fertilizer
 distribution terminals and farm centers in Ohio, Michigan, Indiana and
 Illinois. Collectively, these facilities handle more than 150 million bushels
 of grain and 1.3 million tons of dry and liquid agricultural fertilizer
 products annually.
     U.S. grain inventories remain relatively high, enabling the group's grain
 business to continue to generate significant earnings from its storage
 capacity. The unit's elevators also experienced higher inbound and outbound
 shipments during the first quarter of 2001 vs. the comparable period of 2000.
 Protracted cold weather during the first three months this year curtailed
 wholesale fertilizer shipments slightly. However, margins were somewhat
 stronger than year-earlier levels. The bottom line for the wholesale
 fertilizer business and also for the group's farm centers was relatively
 unchanged from the prior year. Because of the strong performance in the grain
 business, however, the total group achieved significant growth in revenues and
 income for the quarter.
 
     Rail
     The Rail Group leases and markets railroad cars and locomotives. It also
 repairs railcars and operates a custom steel fabrication business. The group's
 railcar marketing segment has grown significantly in the past few years and
 now controls a fleet of more than 4,900 railcars and 30 locomotives that are
 leased to shippers, railroads and fleet owners in a wide range of industries
 in the U.S. and Canada.
     Because of a slowdown in demand for many types of rail equipment
 throughout the past year, this group has primarily pursued short-term leasing
 opportunities rather than making car sales or entering into long-term leasing
 commitments.  While there are signs that the cyclical downturn may be easing,
 the group incurred a slight operating loss for the quarter.
 
     Processing
     The Processing Group manufactures turf and ornamental plant fertilizer and
 control products. With a national production and logistics infrastructure, it
 serves major retailers throughout the country and is the industry leader in
 premium fertilizer products for golf courses and other professional turf care
 markets.  The group also produces chemical and feed-ingredient carriers,
 animal bedding, cat litter and ice-melter products.
     Revenues were significantly higher during the period because of an
 acquisition made last year. The group's operating results for the quarter were
 below the prior year, however, in part due to continued cold weather
 throughout much of the country that delayed the start of turf care activities
 by golf course superintendents as well as by homeowners. In addition, margins
 were hurt by increases in fuel and nitrogen-based ingredient costs that the
 group was unable to pass on to its customers.
 
     Retail
     This group operates six large stores in Ohio.  With a theme of More For
 Your Home(TM), these stores offer traditional home center merchandise
 including hardware, plumbing, electrical and building supplies, but also
 feature indoor and outdoor garden centers, extensive lines of housewares and
 domestics, automotive supplies, pet supplies, sporting goods and a unique
 specialty food offering.
     A year ago, daytime temperatures reached the seventies in our region
 during March.  This year the month was much more like winter.  Consequently,
 sales of warm weather goods failed to take off, and the group experienced a
 decline in revenue for the first quarter when compared to the same three
 months of 2000.  Although gross margins increased slightly, the group's first
 quarter operating loss this year was wider than that incurred a year earlier.
 
     Company
     According to President and Chief Executive Officer Mike Anderson, "Many
 companies are experiencing an economic slowdown at the present time, and The
 Andersons is no exception.  While our Agriculture Group more than doubled
 operating income for the period, the other three businesses all experienced a
 decline in operating results.  Given our first quarter experience and the
 uncertain economic outlook, I anticipate that our full year performance may
 fall short of last year's results from continuing operations -- $1.15 per
 share before a non-recurring insurance gain.  Although we're currently going
 through these cycles, I continue to feel bullish about the longer-term
 outlook."
     Recently, the company paid a quarterly cash dividend of 6.5 cents per
 share to shareholders of record as of April 2, 2001.  The company is
 authorized by its board of directors to continue to repurchase shares from
 time to time.
     The Andersons will host a webcast on April 26, 2001 at 11:00 A.M. EST, to
 discuss these first quarter results and the full-year earnings outlook. The
 webcast can be accessed through the company's website www.andersonsinc.com
 under the heading "Financial Information" or at
 www.videonewswire.com/ANDERSONS/042601/.
     The Andersons, Inc. is a respected leader and prominent regional player in
 grain merchandising. Its strong position in this basic business has allowed
 the company to diversify into other agribusiness operations, railcar leasing,
 turf care product manufacturing 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,
 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 Operations
                                  (Unaudited)
 
                                                   Three Months ended March 31
     (in thousands, except for per share amounts)    2001              2000
 
     Sales and merchandising revenues              $220,232          $204,607
     Cost of sales and merchandising revenues       185,117           169,553
     Gross profit                                    35,115            35,054
 
     Operating, administrative
       and general expenses                          33,351            32,457
     Interest expense                                 3,614             2,676
     Other income / gains:
       Other income                                     584             1,011
       Gain on insurance settlement                     338                 -
       Gain on sale of business                           -               907
     Income (loss) before income taxes and
       cumulative effect of accounting change          (928)            1,839
     Income taxes (credit)                             (298)              617
     Net income (loss) before cumulative
       effect of accounting change                     (630)            1,222
     Cumulative effect of accounting
       change, net of income tax benefit               (185)                -
     Net income (loss)                                $(815)           $1,222
 
     Per common share:
       Basic earnings (loss)                         $(0.11)            $0.16
       Diluted earnings (loss)                       $(0.11)            $0.16
       Dividends paid                                $0.065            $0.060
 
     Weighted average shares outstanding - basic      7,371             7,670
     Weighted average shares outstanding - diluted    7,371             7,674
 
 
                               The Andersons, Inc.
                            Consolidated Balance Sheets
                                    (Unaudited)
 
                                              March 31  December 31   March 31
                (in thousands)                  2001        2000        2000
 
     Assets
       Cash and cash equivalents               $6,246     $13,138      $6,047
       Accounts receivable and
         margin deposits                       63,610      55,475      75,637
       Inventories                            213,424     209,706     179,447
       Other current assets                    28,727      24,505      27,369
     Total current assets                     312,007     302,824     288,500
 
     Other assets:                              7,882      10,020       5,959
     Railcar assets leased to others (net)     26,690      22,281      18,929
     Property, plant and equipment (net)       96,945      98,071      95,852
                                             $443,524    $433,196    $409,240
 
     Liabilities and owners' equity
     Current liabilities:
       Notes payable                         $114,600     $71,300     $88,800
       Other current liabilities              147,315     176,264     148,423
     Total current liabilities                261,915     247,564     237,223
 
     Deferred items, long-term liabilities
       and minority interest                   15,800      15,637      14,379
     Long-term debt                            78,251      80,159      73,003
     Shareholders' equity                      87,558      89,836      84,635
       Total                                 $443,524    $433,196    $409,240
 
 
                                    Segment Data
                                   (in thousands)
 
      Quarter ended
        March 31, 2001   Agriculture Processing Rail   Retail  Other   Total
 
     Revenues from
      external customers  $137,512   $42,246  $7,971  $32,503     $-  $220,232
     Other income              188        97      10      135    154       584
     Gain on insurance
      settlement               338         -       -        -      -       338
       Total              $138,038   $42,343  $7,981  $32,638   $154  $221,154
 
     Operating income
      (loss)                $3,329     $(243)  $(295) $(2,993) $(726)    $(928)
 
     Quarter ended
       March 31, 2000
     Revenues from
      external customers  $125,046   $35,409  $6,473  $35,190  $2,489 $204,607
     Other income              266        92     136      106     411    1,011
     Gain on sale of
      business                   -         -       -        -     907      907
       Total              $125,312   $35,501  $6,609  $35,296  $3,807 $206,525
     Operating income
        (loss)              $1,415    $1,701    $481  $(2,169)   $411   $1,839
 
                       MAKE YOUR OPINION COUNT -  Click Here
                  http://tbutton.prnewswire.com/prn/11690X54181422
 
 SOURCE  The Andersons, Inc.