NEWS RELEASE


THE ANDERSONS, INC. REPORTS FIRST QUARTER RESULTS
First Quarter Earnings of $0.14 per Diluted Share

MAUMEE, OHIO, MAY 5, 2015 The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2015.

Highlights
•
Base grain pre-tax income up $6.9 million year over year
•
Rail Group leasing pre-tax income up 18 percent year over year
•
Ethanol Group pre-tax income of $5.3 million despite challenged markets
•
Good planting progress and higher ethanol margins point to a good full-year outlook

“As expected we experienced a soft start to 2015, yet conditions in the markets we serve give us optimism for the full year. During the first quarter we delivered year-over-year improvements in our core grain and rail leasing businesses. Additionally, our Ethanol Group remained profitable despite reduced industry margins during the seasonally weak first quarter,” said CEO Mike Anderson. “Also, we are successfully integrating our 2014 acquisitions which contributed more than $1.0 million in pre-tax income for the quarter.”

Key Highlights
Net income for the first quarter of 2015 attributable to the Company was $4.1 million, or $0.14 per diluted share. Last year net income was $22.7 million, or $0.80 per diluted share. When excluding the partial redemption of our investment in Lansing Trade Group last year, adjusted net income was $12.1 million, or $0.42 per diluted share. (See the Reconciliation to Adjusted Net Income Table for a discussion and reconciliation of income and adjusted income.) First quarter 2015 revenues were $950 million compared to $1.0 billion in revenues the same time last year.

•
The Ethanol Group achieved record first quarter ethanol production volumes and saw E-85 sales progress to a first quarter record as well.
•
The Rail Group’s utilization rate has increased for nine consecutive quarters and averaged 91.8 percent during the quarter.
•
The Rail Group’s lower pre-tax income was due to gains on railcar sales being down $6.3 million this quarter versus the same time last year.
•
The Plant Nutrient Group experienced lower volumes than expected this quarter due to poor weather conditions at the start of the planting season.
•
This quarter, the Company has merged the former Turf & Specialty and Plant Nutrient groups. Going forward the group will be known as the Plant Nutrient Group.
•
The Company repurchased 631,000 of The Andersons’ common shares during the quarter which offsets the shares issued as part of the acquisition of Auburn Bean & Grain.








Outlook
•
Solid fundamentals supporting the Company’s core businesses continue into 2015.
•
Corn acres to be planted in 2015 are estimated to be approximately 89 million acres, which is down slightly from 2014. Bean acres to be planted are estimated to be roughly 85 million acres, which is up slightly from 2014. 
•
The anticipated corn acres creates a good environment for all three of the Company’s agricultural businesses.
•
Lower volume experienced by the Plant Nutrient Group during the past two quarters is expected to be substantially regained in the second quarter provided the weather is cooperative.
•
Relative to the first quarter, ethanol margins have improved which provides optimism for the Ethanol Group’s performance going forward.
•
The Rail Group is expected to have strong results as it continues to benefit from increased lease and utilization rates.

Conference Call
The Company will host a webcast on Wednesday, May 6, 2015 at 11:00 A.M. ET, to discuss its performance. To dial-in to the call, the number is 866-825-3209 (participant passcode is 28990476). It is recommended that you call 10 minutes before the conference call begins.

To access the webcast: Click on the link: http://edge.media-server.com/m/p/dwpegcgm/lan/en. 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.

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. The Company also has a consumer retailing presence. For more information, visit The Andersons online at www.andersonsinc.com.

Investor Relations Contact    
Jim Burmeister    
Phone: 419-891-5848
E-mail: Jim_Burmeister@andersonsinc.com









The Andersons, Inc.
Condensed Consolidated Statements of Income
(unaudited)

(in thousands, except per share data)
Three months ended
March 31,
 
2015
 
2014
Sales and merchandising revenues
$
950,090

 
$
1,003,294

Cost of sales and merchandising revenues
866,777

 
926,519

Gross profit
83,313

 
76,775

 
 
 
 
Operating, administrative and general expenses
78,604

 
70,985

Interest expense
6,039

 
6,002

Other income:
 
 
 
  Equity in earnings of affiliates, net
3,261

 
20,501

  Other income, net
3,107

 
19,612

Income before income taxes
5,038

 
39,901

Income tax provision
1,093

 
13,872

Net income
3,945

 
26,029

  Net (loss) income attributable to the noncontrolling interests
(152
)
 
3,321

Net income attributable to The Andersons, Inc.
$
4,097

 
$
22,708

 
 
 
 
Per common share:
 
 
 
  Basic earnings attributable to The Andersons, Inc. common shareholders
$
0.14

 
$
0.80

  Diluted earnings attributable to The Andersons, Inc. common shareholders
$
0.14

 
$
0.80

  Dividends declared
$
0.14

 
$
0.11







The Andersons, Inc.
Reconciliation to Adjusted Net Income (unaudited)

(in thousands, except per share data)
Three months ended
March 31,
 
2015
 
2014
Net income attributable to The Andersons, Inc.
$
4,097

 
$
22,708

Items impacting other income, net:
 
 
 
Partial redemption of investment in Lansing Trade Group
—

 
(10,656
)
Total adjusting items
—

 
(10,656
)
Adjusted net income attributable to The Andersons, Inc.
$
4,097

 
$
12,052

 
 
 
 
Diluted earnings attributable to The Andersons, Inc. common shareholders
$
0.14

 
$
0.80

 
 
 
 
Impact on diluted earnings per share
—

 
(0.38
)
Adjusted diluted earnings per share
$
0.14

 
$
0.42






The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)

(in thousands)
March 31, 2015
 
December 31, 2014
 
March 31, 2014
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
  Cash and cash equivalents
$
54,461

 
$
114,704

 
$
43,693

  Restricted cash
685

 
429

 
652

  Accounts receivable, net
209,928

 
183,059

 
191,972

  Inventories
743,957

 
795,655

 
725,584

  Commodity derivative assets - current
86,824

 
92,771

 
119,330

  Deferred income taxes
12,878

 
7,337

 
9,104

  Other current assets
65,017

 
60,492

 
48,214

Total current assets
1,173,750

 
1,254,447

 
1,138,549

 
 
 
 
 
 
Other assets:
 
 
 
 
 
  Commodity derivative assets - noncurrent
243

 
507

 
1,365

  Other assets, net
126,819

 
131,527

 
114,528

  Pension asset
—

 
—

 
15,079

  Equity method investments
222,082

 
226,857

 
232,396

 
349,144

 
358,891

 
363,368

Railcar assets leased to others, net
313,095

 
297,747

 
237,534

Property, plant and equipment, net
451,638

 
453,607

 
386,132

Total assets
$
2,287,627

 
$
2,364,692

 
$
2,125,583

 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
Current liabilities:
 
 
 
 
 
  Short-term debt
$
311,660

 
$
2,166

 
$
226,100

  Accounts payable for grain
206,153

 
535,974

 
183,998

  Other accounts payable
164,224

 
170,849

 
177,623

  Customer prepayments and deferred revenue
130,254

 
99,617

 
124,981

  Commodity derivative liabilities – current
55,401

 
64,075

 
32,153

  Accrued expenses and other current liabilities
64,065

 
78,610

 
56,290

  Current maturities of long-term debt
19,037

 
76,415

 
90,760

Total current liabilities
950,794

 
1,027,706

 
891,905

 
 
 
 
 
 
Other long-term liabilities
14,871

 
15,507

 
14,749

Commodity derivative liabilities – noncurrent
2,084

 
3,318

 
734

Employee benefit plan obligations
59,557

 
59,308

 
39,989

Long-term debt, less current maturities
323,258

 
298,638

 
306,161

Deferred income taxes
139,145

 
136,166

 
128,716

Total liabilities
1,489,709

 
1,540,643

 
1,382,254

Total equity
797,918

 
824,049

 
743,329

Total liabilities and equity
$
2,287,627

 
$
2,364,692

 
$
2,125,583






The Andersons, Inc.
Segment Data
(Unaudited)

(in thousands)
Grain
 
Ethanol
 
Plant Nutrient
 
Rail
 
Retail
 
Other
 
Total
Three months ended
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
585,162

 
$
138,180

 
$
153,951

 
$
44,216

 
$
28,581

 
$
—

 
$
950,090

Gross profit
29,725

 
6,286

 
21,966

 
17,322

 
8,014

 
—

 
83,313

Equity in earnings of affiliates
1,549

 
1,712

 
—

 
—

 
—

 
—

 
3,261

Other income, net
833

 
42

 
1,035

 
839

 
97

 
261

 
3,107

Income (loss) before income taxes
740

 
5,131

 
424

 
10,313

 
(2,183
)
 
(9,387
)
 
5,038

Loss attributable to the noncontrolling interests
(3
)
 
(149
)
 
—

 
—

 
—

 
—

 
(152
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
743

 
$
5,280

 
$
424

 
$
10,313

 
$
(2,183
)
 
$
(9,387
)
 
$
5,190

Three months ended
March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
583,159

 
$
188,820

 
$
151,355

 
$
52,302

 
$
27,658

 
$
—

 
$
1,003,294

Gross profit
17,008

 
7,365

 
22,550

 
21,865

 
7,987

 
—

 
76,775

Equity in earnings of affiliates
1,884

 
18,617

 
—

 
—

 
—

 
—

 
20,501

Other income (expense), net
18,346

 
(226
)
 
492

 
710

 
112

 
178

 
19,612

Income (loss) before income taxes
11,303

 
23,148

 
(36
)
 
15,045

 
(2,335
)
 
(7,224
)
 
39,901

Income (loss) attributable to the noncontrolling interest
(3
)
 
3,324

 
—

 
—

 
—

 
—

 
3,321

Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
11,306

 
$
19,824

 
$
(36
)
 
$
15,045

 
$
(2,335
)
 
$
(7,224
)
 
$
36,580

(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).