THE ANDERSONS,INC.
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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)   May 5, 2004

THE ANDERSONS, INC.

(Exact name of registrant as specified in its charter)
     
OHIO   34-1562374
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
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

 


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Item 12:
Consolidated Statements of Operations
Consolidated Balance Sheets
Segment Data
SIGNATURES


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Item 12:

The following press release was issued on May 5, 2004:

     
 
  The Andersons, Inc.
  480 W. Dussel Drive
  Maumee, Ohio 43537
     
FOR IMMEDIATE RELEASE
  AT THE COMPANY: Gary Smith
WEDNESDAY, MAY 5, 2004
  (419) 891-6417

THE ANDERSONS, INC. REPORTS IMPROVED REVENUE AND EARNINGS

First Qtr. EPS $(0.03) This Year vs. $(0.07) in 2003

MAUMEE, OHIO, MAY 5, 2004-The Andersons, Inc. (Nasdaq: ANDE), today reported a first quarter loss of $0.2 million, or three cents per diluted share. In the same three-month period of 2003, the company incurred a loss of $0.5 million, or seven cents per diluted share. Total revenues of $275 million for the period were $36 million higher than the first quarter of 2003.

The Agriculture Group incurred an operating loss of $1.5 million for the quarter. In the comparable three-month period of 2003, the group lost $1.0 million. Revenues of $184 million in this year’s first quarter were $34 million higher than a year ago. First quarter revenues in the group’s grain business were higher this year due to higher average grain prices and increased volume. Grain gross profit and operating income were both slightly below first quarter 2003 levels. Total tonnage and revenues in the group’s plant nutrient business increased somewhat from the prior year during the first quarter. Expenses were moderately higher, however, and the plant nutrient bottom line declined slightly. With carryover stocks of corn in the U.S. projected to drop to their lowest level in several years and currently high grain market prices, planted acres and total corn production on U.S. farms are expected to increase this season. This points toward good fertilizer sales this spring and a large grain harvest in the fall, assuming reasonably good weather during the growing season.

The Rail Group’s first quarter performance outpaced 2003’s first quarter. Total revenues of $11.1 million were up $6.7 million for the period, and operating income of $1.3 million was $1.0 million above last year. The group completed several railcar financing transactions during the quarter and midway through the period finalized the previously announced acquisition of a large number of railcars and locomotives. This transaction more than doubled the size of the group’s fleet and positioned it among the major rail leasing companies in North America.

 


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The Processing Group’s first quarter 2004 operating income of $3.2 million was $0.5 million below the amount it earned in the same period last year. Total revenues of $45.2 million for the quarter were $7.2 million below the 2003 first quarter level. Most of the group’s lawn products income is typically generated during the first quarter each year as retailers, golf course superintendents and landscapers get ready for springtime business. This year, first quarter sales were lower due to the volume of carryover inventories held by retailers and some shipments that occurred late in 2003 which normally would have happened in January of 2004. In addition, sales to professional markets were hampered by the cold weather which delayed the season’s start for many lawn care operators.

The Retail Group’s sales of $34.6 million in the first quarter represented a robust 8.2 percent increase in same-store sales compared to the same three-month period in 2003. While the average amount of each customer’s purchase increased slightly, most of the $2.6 million increase in the group’s total revenue was attributable to growth in the number of customers served. Average margins were relatively unchanged for the period. Because of the resultant increase in total gross profit, the group’s operating performance improved by $0.3 million.

The Andersons’ consolidated balance sheet grew noticeably during the first quarter, primarily due to the rail acquisition that added approximately $90 million to the company’s total assets and $86.4 million of non-recourse debt securitized by the rail assets purchased.

“We’re off to a reasonably good start this year, and things appear to be positioned pretty well for the important spring season,” said President and Chief Executive Officer Mike Anderson. “Corn acreage projections look promising, and we believe that strong grain prices will encourage average or better agricultural fertilizer use this season. We’re getting indications of good spring activity in our stores’ lawn and garden business, and we’re also encouraged by the early results from our big rail acquisition.”

Anderson also stated “At this juncture, I believe that our 2004 full-year EPS could be in the $1.40 to $1.65 range. It’s still early, though, and numerous factors could go either way. My point is simply that forecasting future results in our diverse businesses is imprecise at best. I will update this forecast as we go through the year.”

The company will host a webcast on Thursday, May 6, 2004 at 11:00 A.M. EST, to discuss its first quarter performance and full-year outlook. This can be accessed under the heading “Financial Information” on its website at www.andersonsinc.com or at www.firstcallevents.com/service/ajwz405410570gf12.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 rail equipment leasing, the

 


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production of turf care products, 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 . . .

 


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The Andersons, Inc.

Consolidated Statements of Operations

                 
    Three Months ended
    March 31
(in thousands, except for per share amounts)
  2004
  2003
Sales and merchandising revenues
  $ 275,050     $ 238,651  
Cost of sales and merchandising revenues
    238,988       205,768  
 
   
 
     
 
 
Gross profit
    36,062       32,883  
Operating, administrative and general expenses
    34,744       32,438  
Interest expense
    2,666       2,303  
Other income, net
    953       1,129  
 
   
 
     
 
 
Loss before income tax credit
    (395 )     (729 )
Income tax credit
    (149 )     (248 )
 
   
 
     
 
 
Net loss
  $ (246 )   $ (481 )
 
   
 
     
 
 
Per common share:
               
Basic earnings (loss)
  $ (0.03 )   $ (0.07 )
 
   
 
     
 
 
Diluted earnings (loss)
  $ (0.03 )   $ (0.07 )
 
   
 
     
 
 
Dividends paid
  $ 0.075     $ 0.070  
 
   
 
     
 
 
Weighted average shares outstanding-basic
    7,218       7,181  
 
   
 
     
 
 
Weighted average shares outstanding-diluted
    7,218       7,181  
 
   
 
     
 
 

 


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The Andersons, Inc.

Consolidated Balance Sheets

(Unaudited)

                         
    March 31   December 31   March 31
(in thousands)
  2004
  2003
  2003
Assets
                       
Current assets:
                       
Cash and cash equivalents
  $ 3,624     $ 6,444     $ 7,038  
Restricted cash
    1,993              
Accounts receivable (net) and margin deposits
    118,534       68,546       79,057  
Inventories
    280,326       259,755       248,454  
Other current assets
    33,525       22,234       19,582  
 
   
 
     
 
     
 
 
Total current assets
    438,002       356,979       354,131  
Other assets
    22,422       13,702       13,568  
Railcar assets leased to others (net)
    101,062       29,489       29,783  
Property, plant and equipment (net)
    94,828       92,449       92,557  
 
   
 
     
 
     
 
 
 
  $ 656,314     $ 492,619     $ 490,039  
 
   
 
     
 
     
 
 
Liabilities and shareholders’ equity
                       
Current liabilities:
                       
Notes payable
  $ 174,000     $ 48,000     $ 118,200  
Other current liabilities
    181,209       219,447       158,990  
 
   
 
     
 
     
 
 
Total current liabilities
    355,209       267,447       277,190  
Deferred items and other long-term liabilities
    27,329       27,254       23,618  
Long-term debt non-recourse
    77,036              
Long-term debt
    81,248       82,127       84,481  
Shareholders’ equity
    115,492       115,791       104,750  
 
   
 
     
 
     
 
 
 
  $ 656,314     $ 492,619     $ 490,039  
 
   
 
     
 
     
 
 

 


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Segment Data

                                                         
    Agriculture
  Rail
  Processing
  Retail
  Other
  Total
       
Quarter ended March 31, 2004
                                                       
Revenues from external customers
  $ 184,193     $ 11,080     $ 45,226     $ 34,551     $     $ 275,050          
Gross Profit
    13,718       5,069       7,859       9,416             36,062          
Other income
    530       97       51       156       119       953          
Operating income (loss)
    (1,529 )     1,291       3,212       (2,317 )     (1,052 )     (395 )        
Quarter ended March 31, 2003
                                                       
Revenues from external customers
    149,905       4,382       52,420       31,944             238,651          
Gross Profit
    13,753       2,142       8,482       8,506             32,883          
Other income
    571       50       203       138       167       1,129          
Operating income (loss)
    (1,032 )     304       3,739       (2,623 )     (1,117 )     (729 )        

 


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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: May 6, 2004
  By:   /s/Michael J. Anderson
     
 
      Michael J. Anderson
      President and Chief Executive Officer