The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the fourth quarter and full year ended December 31, 2016.
Company reports net income of $11.6 million or $0.41 per diluted share for 2016.
Rail Group leads the way with $32.4 million of pretax income for the year
Ethanol Group delivers $24.7 million of pretax income
Grain Group continued its rebound with pretax income of $12.9 million in the quarter after a good harvest in the Eastern Corn Belt, but loses $15.7 million for the year
Plant Nutrient Group ends the year higher, with pretax income of $14.2 million including charges related to shutting down a cob facility
Retail Group records a pretax $6.5 million asset impairment charge after Company announces its intent to exit the business, driving a full-year pretax loss of $8.8 million.
The Company reported fourth quarter 2016 net income attributable to The Andersons of $10.1 million, or $0.36 per diluted share. This represents a $5.1 million improvement over the adjusted net income of $5.0 million, or $0.18 per diluted share, in the same period of the prior year.
For the full year, the Company reported net income attributable to The Andersons of $11.6 million or $0.41 per diluted share compared to a net loss attributable to The Andersons of $13.1 million or $0.46 per diluted share in 2015. The 2016 results included pretax impairment charges of $9.1 million, including $6.5 million in the Retail Group and $2.3 million in the Plant Nutrient Group, which equated to $0.20 per diluted share. Adjusted Net Income attributable to the Company for 2015 was $41.2 million, or $1.45 per diluted share. (See table provided on page 9 of this release for a reconciliation from net income to adjusted net income.)
"While we are disappointed with 2016's overall results, we took several steps throughout the year, and especially during the fourth quarter, to improve future earnings opportunities. We addressed underperforming assets in our portfolio by selling underperforming Grain Grouplocations, closing a cob processing facility to optimize our supply chain and manufacturing footprint, and recently announcing the closure of our Retail Group," said CEO Pat Bowe. "Moreover, we have already exceeded our initial cost reduction target and identified more than $10 million in run-rate cost savings and other performance improvement opportunities earlier than previously announced. We have implemented many of these reductions and continue to aggressively pursue other opportunities to further streamline our business operations."
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