|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
OHIO
|
|
34-1562374
|
(State of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
1947 Briarfield Boulevard, Maumee, Ohio
|
|
43537
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Title of each class:
|
|
Trading Symbol
|
|
Name of each exchange on which registered:
|
Common stock, $0.00 par value, $0.01 stated value
|
|
ANDE
|
|
The NASDAQ Stock Market LLC
|
|
Page No.
|
PART I. FINANCIAL INFORMATION
|
|
|
|
PART II. OTHER INFORMATION
|
|
Item 4. Mine Safety Disclosure
|
|
The Andersons, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)(In thousands)
|
|||||||||||
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Assets
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
29,991
|
|
|
$
|
22,593
|
|
|
$
|
31,497
|
|
Accounts receivable, net
|
611,290
|
|
|
207,285
|
|
|
216,021
|
|
|||
Inventories (Note 2)
|
1,026,465
|
|
|
690,804
|
|
|
731,629
|
|
|||
Commodity derivative assets – current (Note 5)
|
158,277
|
|
|
51,421
|
|
|
43,810
|
|
|||
Other current assets
|
60,222
|
|
|
50,703
|
|
|
57,147
|
|
|||
Assets held for sale
|
364
|
|
|
392
|
|
|
57,775
|
|
|||
Total current assets
|
1,886,609
|
|
|
1,023,198
|
|
|
1,137,879
|
|
|||
Other assets:
|
|
|
|
|
|
||||||
Commodity derivative assets – noncurrent (Note 5)
|
3,757
|
|
|
480
|
|
|
1,739
|
|
|||
Goodwill
|
119,641
|
|
|
6,024
|
|
|
6,024
|
|
|||
Other intangible assets, net
|
206,572
|
|
|
99,138
|
|
|
108,855
|
|
|||
Right of use assets, net
|
85,766
|
|
|
—
|
|
|
—
|
|
|||
Other assets, net
|
26,692
|
|
|
22,341
|
|
|
28,566
|
|
|||
Equity method investments
|
121,781
|
|
|
242,326
|
|
|
224,449
|
|
|||
|
564,209
|
|
|
370,309
|
|
|
369,633
|
|
|||
Rail Group assets leased to others, net (Note 3)
|
537,629
|
|
|
521,785
|
|
|
462,253
|
|
|||
Property, plant and equipment, net (Note 3)
|
671,805
|
|
|
476,711
|
|
|
393,763
|
|
|||
Total assets
|
$
|
3,660,252
|
|
|
$
|
2,392,003
|
|
|
$
|
2,363,528
|
|
The Andersons, Inc.
Condensed Consolidated Balance Sheets (continued)
(Unaudited)(In thousands)
|
|||||||||||
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Liabilities and equity
|
|
|
|
|
|
||||||
Current liabilities:
|
|
|
|
|
|
||||||
Short-term debt (Note 4)
|
$
|
434,304
|
|
|
$
|
205,000
|
|
|
$
|
489,000
|
|
Trade and other payables
|
590,258
|
|
|
462,535
|
|
|
263,519
|
|
|||
Customer prepayments and deferred revenue
|
148,345
|
|
|
32,533
|
|
|
81,778
|
|
|||
Commodity derivative liabilities – current (Note 5)
|
66,623
|
|
|
32,647
|
|
|
15,424
|
|
|||
Accrued expenses and other current liabilities
|
151,648
|
|
|
79,046
|
|
|
60,095
|
|
|||
Current maturities of long-term debt (Note 4)
|
55,160
|
|
|
21,589
|
|
|
14,134
|
|
|||
Total current liabilities
|
1,446,338
|
|
|
833,350
|
|
|
923,950
|
|
|||
Long-term lease liabilities
|
57,451
|
|
|
—
|
|
|
—
|
|
|||
Other long-term liabilities
|
12,262
|
|
|
32,184
|
|
|
31,536
|
|
|||
Commodity derivative liabilities – noncurrent (Note 5)
|
3,821
|
|
|
889
|
|
|
1,414
|
|
|||
Employee benefit plan obligations
|
21,471
|
|
|
22,542
|
|
|
26,310
|
|
|||
Long-term debt, less current maturities (Note 4)
|
982,025
|
|
|
496,187
|
|
|
438,628
|
|
|||
Deferred income taxes
|
138,598
|
|
|
130,087
|
|
|
118,933
|
|
|||
Total liabilities
|
2,661,966
|
|
|
1,515,239
|
|
|
1,540,771
|
|
|||
Commitments and contingencies (Note 15)
|
|
|
|
|
|
||||||
Shareholders’ equity:
|
|
|
|
|
|
||||||
Common shares, without par value (63,000 shares authorized; 33,357 shares issued at 3/31/2019, 29,430 shares issued at 12/31/2018 and 3/31/2018)
|
137
|
|
|
96
|
|
|
96
|
|
|||
Preferred shares, without par value (1,000 shares authorized; none issued)
|
—
|
|
|
—
|
|
|
—
|
|
|||
Additional paid-in-capital
|
324,753
|
|
|
224,396
|
|
|
221,990
|
|
|||
Treasury shares, at cost (193, 936 and 955 shares at 3/31/2019, 12/31/2018 and 3/31/2018, respectively)
|
(7,216
|
)
|
|
(35,300
|
)
|
|
(36,028
|
)
|
|||
Accumulated other comprehensive income (loss)
|
2,474
|
|
|
(6,387
|
)
|
|
(3,988
|
)
|
|||
Retained earnings
|
627,136
|
|
|
647,517
|
|
|
618,572
|
|
|||
Total shareholders’ equity of The Andersons, Inc.
|
947,284
|
|
|
830,322
|
|
|
800,642
|
|
|||
Noncontrolling interests
|
51,002
|
|
|
46,442
|
|
|
22,115
|
|
|||
Total equity
|
998,286
|
|
|
876,764
|
|
|
822,757
|
|
|||
Total liabilities and equity
|
$
|
3,660,252
|
|
|
$
|
2,392,003
|
|
|
$
|
2,363,528
|
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Sales and merchandising revenues
|
$
|
1,976,792
|
|
|
$
|
635,739
|
|
Cost of sales and merchandising revenues
|
1,867,128
|
|
|
572,034
|
|
||
Gross profit
|
109,664
|
|
|
63,705
|
|
||
Operating, administrative and general expenses
|
113,349
|
|
|
64,257
|
|
||
Interest expense
|
15,910
|
|
|
6,999
|
|
||
Other income:
|
|
|
|
||||
Equity in earnings (loss) of affiliates, net
|
1,519
|
|
|
3,573
|
|
||
Other income (loss), net
|
(1,514
|
)
|
|
1,686
|
|
||
Income (loss) before income taxes
|
(19,590
|
)
|
|
(2,292
|
)
|
||
Income tax provision (benefit)
|
(5,442
|
)
|
|
(310
|
)
|
||
Net income (loss)
|
(14,148
|
)
|
|
(1,982
|
)
|
||
Net income (loss) attributable to the noncontrolling interests
|
(155
|
)
|
|
(282
|
)
|
||
Net income (loss) attributable to The Andersons, Inc.
|
$
|
(13,993
|
)
|
|
$
|
(1,700
|
)
|
Per common share:
|
|
|
|
||||
Basic earnings (loss) attributable to The Andersons, Inc. common shareholders
|
$
|
(0.43
|
)
|
|
$
|
(0.06
|
)
|
Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders
|
$
|
(0.43
|
)
|
|
$
|
(0.06
|
)
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net income (loss)
|
$
|
(14,148
|
)
|
|
$
|
(1,982
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Change in fair value of convertible preferred securities (net of income tax of $0 and $(87))
|
—
|
|
|
(87
|
)
|
||
Change in unrecognized actuarial loss and prior service cost (net of income tax of $43 and $15)
|
(126
|
)
|
|
(51
|
)
|
||
Cash flow hedge activity (net of income tax of $1,201 and $0)
|
(3,622
|
)
|
|
—
|
|
||
Foreign currency translation adjustments
|
12,609
|
|
|
(1,150
|
)
|
||
Other comprehensive income (loss)
|
8,861
|
|
|
(1,288
|
)
|
||
Comprehensive income (loss)
|
(5,287
|
)
|
|
(3,270
|
)
|
||
Comprehensive income (loss) attributable to the noncontrolling interests
|
(155
|
)
|
|
(282
|
)
|
||
Comprehensive income (loss) attributable to The Andersons, Inc.
|
$
|
(5,132
|
)
|
|
$
|
(2,988
|
)
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss)
|
$
|
(14,148
|
)
|
|
$
|
(1,982
|
)
|
Adjustments to reconcile net income (loss) to cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
33,760
|
|
|
22,679
|
|
||
Bad debt expense (recovery)
|
318
|
|
|
(531
|
)
|
||
Equity in (earnings) losses of affiliates, net of dividends
|
(1,465
|
)
|
|
(2,360
|
)
|
||
Gains on sale of Rail Group assets and related leases
|
(736
|
)
|
|
(2,280
|
)
|
||
Loss (gain) on sale of assets
|
143
|
|
|
277
|
|
||
Stock-based compensation expense
|
4,799
|
|
|
1,268
|
|
||
Deferred federal income tax
|
(5,640
|
)
|
|
—
|
|
||
Other
|
4,385
|
|
|
(70
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(79,295
|
)
|
|
(30,730
|
)
|
||
Inventories
|
124,741
|
|
|
(85,262
|
)
|
||
Commodity derivatives
|
(9,149
|
)
|
|
(45,775
|
)
|
||
Other assets
|
11,337
|
|
|
1,134
|
|
||
Payables and other accrued expenses
|
(191,095
|
)
|
|
(235,075
|
)
|
||
Net cash provided by (used in) operating activities
|
(122,045
|
)
|
|
(378,707
|
)
|
||
Investing Activities
|
|
|
|
||||
Acquisition of business, net of cash acquired
|
(147,343
|
)
|
|
—
|
|
||
Purchases of Rail Group assets
|
(15,873
|
)
|
|
(29,516
|
)
|
||
Proceeds from sale of Rail Group assets
|
1,948
|
|
|
14,575
|
|
||
Purchases of property, plant and equipment and capitalized software
|
(44,728
|
)
|
|
(29,414
|
)
|
||
Proceeds from sale of assets
|
400
|
|
|
6
|
|
||
Purchase of investments
|
(240
|
)
|
|
—
|
|
||
Net cash provided by (used in) investing activities
|
(205,836
|
)
|
|
(44,349
|
)
|
||
Financing Activities
|
|
|
|
||||
Net change in short-term borrowings
|
9,942
|
|
|
467,000
|
|
||
Proceeds from issuance of long-term debt
|
693,761
|
|
|
50,000
|
|
||
Payments of long-term debt
|
(361,067
|
)
|
|
(106,515
|
)
|
||
Proceeds from noncontrolling interest owner
|
4,715
|
|
|
14,700
|
|
||
Payments of debt issuance costs
|
(5,788
|
)
|
|
(787
|
)
|
||
Dividends paid
|
(5,515
|
)
|
|
(4,650
|
)
|
||
Other
|
2
|
|
|
(114
|
)
|
||
Net cash provided by (used in) financing activities
|
336,050
|
|
|
419,634
|
|
||
Effect of exchange rates on cash and cash equivalents
|
(771
|
)
|
|
—
|
|
||
Increase (Decrease) in cash and cash equivalents
|
7,398
|
|
|
(3,422
|
)
|
||
Cash and cash equivalents at beginning of period
|
22,593
|
|
|
34,919
|
|
||
Cash and cash equivalents at end of period
|
$
|
29,991
|
|
|
$
|
31,497
|
|
|
Common
Shares
|
|
Additional
Paid-in
Capital
|
|
Treasury
Shares
|
|
Accumulated
Other
Comprehensive Income
(Loss)
|
|
Retained
Earnings
|
|
Noncontrolling
Interests
|
|
Total
|
||||||||||||||
Balance at December 31, 2017
|
$
|
96
|
|
|
$
|
224,622
|
|
|
$
|
(40,312
|
)
|
|
$
|
(2,700
|
)
|
|
$
|
633,496
|
|
|
$
|
7,697
|
|
|
$
|
822,899
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
(1,700
|
)
|
|
(282
|
)
|
|
(1,982
|
)
|
|||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
(1,288
|
)
|
|
|
|
|
|
(1,288
|
)
|
||||||||||||
Cash received from noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
14,700
|
|
|
14,700
|
|
||||||||||||
Adoption of accounting standard, net of income tax of $2,869
|
|
|
|
|
|
|
|
|
(8,441
|
)
|
|
|
|
(8,441
|
)
|
||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $0 (105 shares)
|
|
|
(2,632
|
)
|
|
4,164
|
|
|
|
|
|
|
|
|
1,532
|
|
|||||||||||
Dividends declared ($0.165 per common share)
|
|
|
|
|
|
|
|
|
(4,663
|
)
|
|
|
|
(4,663
|
)
|
||||||||||||
Restricted share award dividend equivalents
|
|
|
|
|
|
120
|
|
|
|
|
(120
|
)
|
|
|
|
—
|
|
||||||||||
Balance at March 31, 2018
|
$
|
96
|
|
|
$
|
221,990
|
|
|
$
|
(36,028
|
)
|
|
$
|
(3,988
|
)
|
|
$
|
618,572
|
|
|
$
|
22,115
|
|
|
$
|
822,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2018
|
$
|
96
|
|
|
$
|
224,396
|
|
|
$
|
(35,300
|
)
|
|
$
|
(6,387
|
)
|
|
$
|
647,517
|
|
|
$
|
46,442
|
|
|
$
|
876,764
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
(13,993
|
)
|
|
(155
|
)
|
|
(14,148
|
)
|
|||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
(2,770
|
)
|
|
|
|
|
|
(2,770
|
)
|
||||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
|
|
|
|
11,631
|
|
|
|
|
|
|
11,631
|
|
||||||||||||
Cash received from noncontrolling interest
|
|
|
|
|
|
|
|
|
|
|
|
4,715
|
|
|
4,715
|
|
|||||||||||
Adoption of accounting standard, net of income tax of ($237)
|
|
|
|
|
|
|
|
|
(711
|
)
|
|
|
|
(711
|
)
|
||||||||||||
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $0 (740 shares)
|
|
|
(22,756
|
)
|
|
27,944
|
|
|
|
|
|
|
|
|
5,188
|
|
|||||||||||
Dividends declared ($0.17 per common share)
|
|
|
|
|
|
|
|
|
(5,529
|
)
|
|
|
|
(5,529
|
)
|
||||||||||||
Shares issued for acquisition
|
41
|
|
|
123,105
|
|
|
|
|
|
|
|
|
|
|
123,146
|
|
|||||||||||
Restricted share award dividend equivalents
|
|
|
8
|
|
|
140
|
|
|
|
|
(148
|
)
|
|
|
|
—
|
|
||||||||||
Balance at March 31, 2019
|
$
|
137
|
|
|
$
|
324,753
|
|
|
$
|
(7,216
|
)
|
|
$
|
2,474
|
|
|
$
|
627,136
|
|
|
$
|
51,002
|
|
|
$
|
998,286
|
|
(in thousands)
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Grain and other agricultural products
|
$
|
812,361
|
|
|
$
|
527,471
|
|
|
$
|
541,272
|
|
Frac sand and propane
|
8,172
|
|
|
—
|
|
|
—
|
|
|||
Ethanol and co-products
|
16,302
|
|
|
11,918
|
|
|
14,320
|
|
|||
Plant nutrients and cob products
|
183,886
|
|
|
145,693
|
|
|
170,748
|
|
|||
Railcar repair parts
|
5,744
|
|
|
5,722
|
|
|
5,289
|
|
|||
|
$
|
1,026,465
|
|
|
$
|
690,804
|
|
|
$
|
731,629
|
|
(in thousands)
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Land
|
$
|
39,552
|
|
|
$
|
29,739
|
|
|
$
|
29,915
|
|
Land improvements and leasehold improvements
|
82,681
|
|
|
68,826
|
|
|
69,320
|
|
|||
Buildings and storage facilities
|
337,631
|
|
|
284,998
|
|
|
285,084
|
|
|||
Machinery and equipment
|
481,454
|
|
|
393,640
|
|
|
377,563
|
|
|||
Construction in progress
|
151,895
|
|
|
102,394
|
|
|
15,116
|
|
|||
|
1,093,213
|
|
|
879,597
|
|
|
776,998
|
|
|||
Less: accumulated depreciation
|
421,408
|
|
|
402,886
|
|
|
383,235
|
|
|||
|
$
|
671,805
|
|
|
$
|
476,711
|
|
|
$
|
393,763
|
|
(in thousands)
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Rail Group assets leased to others
|
$
|
660,747
|
|
|
$
|
640,349
|
|
|
$
|
577,678
|
|
Less: accumulated depreciation
|
123,118
|
|
|
118,564
|
|
|
115,425
|
|
|||
|
$
|
537,629
|
|
|
$
|
521,785
|
|
|
$
|
462,253
|
|
(in thousands)
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Short-term Debt – Non-Recourse
|
$
|
97,304
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Short-term Debt – Recourse
|
337,000
|
|
|
205,000
|
|
|
489,000
|
|
|||
Total Short-term Debt
|
$
|
434,304
|
|
|
$
|
205,000
|
|
|
$
|
489,000
|
|
|
|
|
|
|
|
||||||
Current Maturities of Long-term Debt – Non-Recourse
|
$
|
7,147
|
|
|
$
|
4,842
|
|
|
$
|
2,922
|
|
Current Maturities of Long-term Debt – Recourse
|
42,006
|
|
|
16,747
|
|
|
11,212
|
|
|||
Finance lease liability (a)
|
6,007
|
|
|
—
|
|
|
—
|
|
|||
Total Current Maturities of Long-term Debt
|
$
|
55,160
|
|
|
$
|
21,589
|
|
|
$
|
14,134
|
|
|
|
|
|
|
|
||||||
Long-term Debt, Less: Current Maturities – Non-Recourse
|
$
|
177,233
|
|
|
$
|
146,353
|
|
|
$
|
72,977
|
|
Long-term Debt, Less: Current Maturities – Recourse
|
781,734
|
|
|
349,834
|
|
|
365,651
|
|
|||
Finance lease liability (a)
|
23,058
|
|
|
—
|
|
|
—
|
|
|||
Total Long-term Debt, Less: Current Maturities
|
$
|
982,025
|
|
|
$
|
496,187
|
|
|
$
|
438,628
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||||||||||||||
(in thousands)
|
Net
derivative
asset
position
|
|
Net
derivative
liability
position
|
|
Net
derivative
asset
position
|
|
Net
derivative
liability
position
|
|
Net
derivative
asset
position
|
|
Net
derivative
liability
position
|
||||||||||||
Collateral paid (received)
|
$
|
21,751
|
|
|
$
|
—
|
|
|
$
|
14,944
|
|
|
$
|
—
|
|
|
$
|
54,762
|
|
|
$
|
—
|
|
Fair value of derivatives
|
38,580
|
|
|
—
|
|
|
22,285
|
|
|
—
|
|
|
(18,874
|
)
|
|
—
|
|
||||||
Balance at end of period
|
$
|
60,331
|
|
|
$
|
—
|
|
|
$
|
37,229
|
|
|
$
|
—
|
|
|
$
|
35,888
|
|
|
$
|
—
|
|
|
March 31, 2019
|
||||||||||||||||||
(in thousands)
|
Commodity Derivative Assets - Current
|
|
Commodity Derivative Assets - Noncurrent
|
|
Commodity Derivative Liabilities - Current
|
|
Commodity Derivative Liabilities - Noncurrent
|
|
Total
|
||||||||||
Commodity derivative assets
|
$
|
142,262
|
|
|
$
|
3,781
|
|
|
$
|
665
|
|
|
$
|
93
|
|
|
$
|
146,801
|
|
Commodity derivative liabilities
|
(5,736
|
)
|
|
(24
|
)
|
|
(67,288
|
)
|
|
(3,914
|
)
|
|
(76,962
|
)
|
|||||
Cash collateral paid (received)
|
21,751
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,751
|
|
|||||
Balance sheet line item totals
|
$
|
158,277
|
|
|
$
|
3,757
|
|
|
$
|
(66,623
|
)
|
|
$
|
(3,821
|
)
|
|
$
|
91,590
|
|
|
December 31, 2018
|
||||||||||||||||||
(in thousands)
|
Commodity Derivative Assets - Current
|
|
Commodity Derivative Assets - Noncurrent
|
|
Commodity Derivative Liabilities - Current
|
|
Commodity Derivative Liabilities - Noncurrent
|
|
Total
|
||||||||||
Commodity derivative assets
|
$
|
43,463
|
|
|
$
|
484
|
|
|
$
|
706
|
|
|
$
|
5
|
|
|
$
|
44,658
|
|
Commodity derivative liabilities
|
(6,986
|
)
|
|
(4
|
)
|
|
(33,353
|
)
|
|
(894
|
)
|
|
(41,237
|
)
|
|||||
Cash collateral
|
14,944
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,944
|
|
|||||
Balance sheet line item totals
|
$
|
51,421
|
|
|
$
|
480
|
|
|
$
|
(32,647
|
)
|
|
$
|
(889
|
)
|
|
$
|
18,365
|
|
|
March 31, 2018
|
||||||||||||||||||
(in thousands)
|
Commodity Derivative Assets - Current
|
|
Commodity Derivative Assets - Noncurrent
|
|
Commodity Derivative Liabilities - Current
|
|
Commodity Derivative Liabilities - Noncurrent
|
|
Total
|
||||||||||
Commodity derivative assets
|
$
|
29,861
|
|
|
$
|
1,851
|
|
|
$
|
3,115
|
|
|
$
|
47
|
|
|
$
|
34,874
|
|
Commodity derivative liabilities
|
(40,813
|
)
|
|
(112
|
)
|
|
(18,539
|
)
|
|
(1,461
|
)
|
|
(60,925
|
)
|
|||||
Cash collateral
|
54,762
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,762
|
|
|||||
Balance sheet line item totals
|
$
|
43,810
|
|
|
$
|
1,739
|
|
|
$
|
(15,424
|
)
|
|
$
|
(1,414
|
)
|
|
$
|
28,711
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Gains (losses) on commodity derivatives included in cost of sales and merchandising revenues
|
$
|
66,419
|
|
|
$
|
(25,236
|
)
|
|
March 31, 2019
|
||||||||||
Commodity (in thousands)
|
Number of Bushels
|
|
Number of Gallons
|
|
Number of Pounds
|
|
Number of Tons
|
||||
Non-exchange traded:
|
|
|
|
|
|
|
|
||||
Corn
|
624,612
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Soybeans
|
42,859
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wheat
|
118,909
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Oats
|
26,361
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ethanol
|
—
|
|
|
233,420
|
|
|
|
|
|
—
|
|
Corn oil
|
—
|
|
|
—
|
|
|
6,733
|
|
|
—
|
|
Other
|
5,574
|
|
|
2,032
|
|
|
6
|
|
|
2,508
|
|
Subtotal
|
818,315
|
|
|
235,452
|
|
|
6,739
|
|
|
2,508
|
|
Exchange traded:
|
|
|
|
|
|
|
|
||||
Corn
|
197,210
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Soybeans
|
47,860
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wheat
|
103,955
|
|
|
—
|
|
|
—
|
|
|
|
|
Oats
|
770
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ethanol
|
—
|
|
|
110,758
|
|
|
—
|
|
|
—
|
|
Gasoline
|
—
|
|
|
12,936
|
|
|
—
|
|
|
—
|
|
Propane
|
—
|
|
|
14,784
|
|
|
—
|
|
|
—
|
|
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
205
|
|
Subtotal
|
349,797
|
|
|
138,478
|
|
|
—
|
|
|
205
|
|
Total
|
1,168,112
|
|
|
373,930
|
|
|
6,739
|
|
|
2,713
|
|
|
December 31, 2018
|
||||||||||
Commodity (in thousands)
|
Number of Bushels
|
|
Number of Gallons
|
|
Number of Pounds
|
|
Number of Tons
|
||||
Non-exchange traded:
|
|
|
|
|
|
|
|
||||
Corn
|
250,408
|
|
|
|
|
|
|
|
|
—
|
|
Soybeans
|
22,463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wheat
|
14,017
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Oats
|
26,230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ethanol
|
—
|
|
|
244,863
|
|
|
—
|
|
|
—
|
|
Corn oil
|
—
|
|
|
—
|
|
|
2,920
|
|
|
—
|
|
Other
|
494
|
|
|
2,000
|
|
|
—
|
|
|
66
|
|
Subtotal
|
313,612
|
|
|
246,863
|
|
|
2,920
|
|
|
66
|
|
Exchange traded:
|
|
|
|
|
|
|
|
||||
Corn
|
130,585
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Soybeans
|
26,985
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wheat
|
33,760
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Oats
|
1,475
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ethanol
|
—
|
|
|
77,112
|
|
|
—
|
|
|
—
|
|
Subtotal
|
192,805
|
|
|
77,112
|
|
|
—
|
|
|
—
|
|
Total
|
506,417
|
|
|
323,975
|
|
|
2,920
|
|
|
66
|
|
|
March 31, 2018
|
||||||||||
Commodity (in thousands)
|
Number of Bushels
|
|
Number of Gallons
|
|
Number of Pounds
|
|
Number of Tons
|
||||
Non-exchange traded:
|
|
|
|
|
|
|
|
||||
Corn
|
335,887
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Soybeans
|
48,003
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wheat
|
16,639
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Oats
|
40,555
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ethanol
|
—
|
|
|
280,243
|
|
|
|
|
|
—
|
|
Corn oil
|
—
|
|
|
—
|
|
|
5,048
|
|
|
—
|
|
Other
|
27
|
|
|
4,500
|
|
|
|
|
|
90
|
|
Subtotal
|
441,111
|
|
|
284,743
|
|
|
5,048
|
|
|
90
|
|
Exchange traded:
|
|
|
|
|
|
|
|
||||
Corn
|
146,505
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Soybeans
|
52,460
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wheat
|
74,805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Oats
|
2,290
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ethanol
|
—
|
|
|
108,108
|
|
|
—
|
|
|
—
|
|
Subtotal
|
276,060
|
|
|
108,108
|
|
|
—
|
|
|
—
|
|
Total
|
717,171
|
|
|
392,851
|
|
|
5,048
|
|
|
90
|
|
(in thousands)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
||||||
Interest rate contracts included in Other long-term assets (Other long-term liabilities)
|
$
|
(4,494
|
)
|
|
$
|
(353
|
)
|
|
$
|
(453
|
)
|
Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities)
|
$
|
(344
|
)
|
|
$
|
(1,122
|
)
|
|
$
|
(695
|
)
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
||||||
Interest rate contract included in Other assets (Other long-term liabilities)
|
$
|
(4,552
|
)
|
|
$
|
(168
|
)
|
|
$
|
—
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
||||
Interest rate derivative gains (losses) included in Interest income (expense)
|
$
|
(990
|
)
|
|
$
|
1,408
|
|
Foreign currency derivative gains (losses) included in Other income, net
|
$
|
(1,467
|
)
|
|
$
|
(1,122
|
)
|
Derivatives designated as hedging instruments
|
|
|
|
||||
Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss)
|
$
|
(4,991
|
)
|
|
$
|
—
|
|
Interest rate derivatives gains (losses) included in Interest income (expense)
|
$
|
165
|
|
|
$
|
—
|
|
Interest Rate Hedging Instrument
|
|
Year Entered
|
|
Year of Maturity
|
|
Initial Notional Amount
(in millions)
|
|
Description
|
|
Interest Rate
|
||
Long-term
|
|
|
|
|
|
|
|
|
|
|
||
Collar
|
|
2014
|
|
2023
|
|
$
|
23.0
|
|
|
Interest rate component of debt - not accounted for as a hedge
|
|
1.9%
|
Swap
|
|
2016
|
|
2021
|
|
$
|
40.0
|
|
|
Interest rate component of debt - not accounted for as a hedge
|
|
3.5% to 4.8%
|
Swap
|
*
|
2016
|
|
2019
|
|
$
|
50.0
|
|
|
Interest rate component of debt - not accounted for as a hedge
|
|
1.2%
|
Swap
|
*
|
2017
|
|
2022
|
|
$
|
20.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
1.8%
|
Swap
|
*
|
2018
|
|
2023
|
|
$
|
10.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.6%
|
Swap
|
*
|
2018
|
|
2025
|
|
$
|
20.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.7%
|
Swap
|
|
2018
|
|
2021
|
|
$
|
40.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.6%
|
Swap
|
|
2019
|
|
2021
|
|
$
|
25.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.5%
|
Swap
|
|
2019
|
|
2021
|
|
$
|
50.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.5%
|
Swap
|
|
2019
|
|
2025
|
|
$
|
100.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.5%
|
Swap
|
|
2019
|
|
2025
|
|
$
|
50.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.5%
|
Swap
|
|
2019
|
|
2025
|
|
$
|
50.0
|
|
|
Interest rate component of debt - accounted for as a hedge
|
|
2.5%
|
|
Pension Benefits
|
||||||
(in thousands)
|
Three months ended March 31,
|
||||||
2019
|
|
2018
|
|||||
Interest cost
|
$
|
29
|
|
|
$
|
33
|
|
Recognized net actuarial loss
|
58
|
|
|
61
|
|
||
Benefit cost
|
$
|
87
|
|
|
$
|
94
|
|
|
Postretirement Benefits
|
||||||
(in thousands)
|
Three months ended March 31,
|
||||||
2019
|
|
2018
|
|||||
Service cost
|
$
|
73
|
|
|
$
|
87
|
|
Interest cost
|
206
|
|
|
187
|
|
||
Amortization of prior service cost
|
(228
|
)
|
|
(228
|
)
|
||
Benefit cost
|
$
|
51
|
|
|
$
|
46
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Revenues under ASC 606
|
$
|
315,172
|
|
|
$
|
193,650
|
|
Revenues under ASC 842
|
28,868
|
|
|
26,029
|
|
||
Revenues under ASC 815
|
1,632,752
|
|
|
416,060
|
|
||
Total Revenues
|
$
|
1,976,792
|
|
|
$
|
635,739
|
|
|
Three months ended March 31, 2019
|
||||||||||||||||||
(in thousands)
|
Trade
|
|
Ethanol
|
|
Plant Nutrient
|
|
Rail
|
|
Total
|
||||||||||
Specialty nutrients
|
$
|
3,938
|
|
|
$
|
—
|
|
|
$
|
68,400
|
|
|
$
|
—
|
|
|
$
|
72,338
|
|
Primary nutrients
|
427
|
|
|
—
|
|
|
53,089
|
|
|
—
|
|
|
53,516
|
|
|||||
Services
|
825
|
|
|
3,436
|
|
|
162
|
|
|
9,947
|
|
|
14,370
|
|
|||||
Products and co-products
|
62,758
|
|
|
21,472
|
|
|
—
|
|
|
—
|
|
|
84,230
|
|
|||||
Frac sand and propane
|
80,463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,463
|
|
|||||
Other
|
1,157
|
|
|
|
|
6,874
|
|
|
2,224
|
|
|
10,255
|
|
||||||
Total
|
$
|
149,568
|
|
|
$
|
24,908
|
|
|
$
|
128,525
|
|
|
$
|
12,171
|
|
|
$
|
315,172
|
|
|
Three months ended March 31, 2018
|
||||||||||||||||||
(in thousands)
|
Trade
|
|
Ethanol
|
|
Plant Nutrient
|
|
Rail
|
|
Total
|
||||||||||
Specialty nutrients
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
75,078
|
|
|
$
|
—
|
|
|
$
|
75,078
|
|
Primary nutrients
|
—
|
|
|
—
|
|
|
53,219
|
|
|
—
|
|
|
53,219
|
|
|||||
Service
|
4,418
|
|
|
2,545
|
|
|
209
|
|
|
8,117
|
|
|
15,289
|
|
|||||
Co-products
|
—
|
|
|
26,646
|
|
|
—
|
|
|
—
|
|
|
26,646
|
|
|||||
Other
|
210
|
|
|
—
|
|
|
7,111
|
|
|
16,097
|
|
|
23,418
|
|
|||||
Total
|
$
|
4,628
|
|
|
$
|
29,191
|
|
|
$
|
135,617
|
|
|
$
|
24,214
|
|
|
$
|
193,650
|
|
(in thousands)
|
2019
|
|
2018
|
||||
Balance at January 1,
|
$
|
28,858
|
|
|
$
|
25,520
|
|
Balance at March 31,
|
146,824
|
|
|
67,715
|
|
|
|
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a)
|
||||||||||||||||||
|
|
Three months ended March 31, 2019
|
||||||||||||||||||
(in thousands)
|
Cash Flow Hedges
|
|
Foreign Currency Translation Adjustment
|
|
Investment in Convertible Preferred Securities
|
|
Defined Benefit Plan Items
|
|
Total
|
|||||||||||
Beginning Balance
|
$
|
(126
|
)
|
|
$
|
(11,550
|
)
|
|
$
|
258
|
|
|
$
|
5,031
|
|
|
$
|
(6,387
|
)
|
|
|
Other comprehensive income (loss) before reclassifications
|
(3,758
|
)
|
|
943
|
|
|
—
|
|
|
45
|
|
|
$
|
(2,770
|
)
|
||||
|
Amounts reclassified from accumulated other comprehensive loss (income) (b)
|
136
|
|
|
11,666
|
|
|
—
|
|
|
(171
|
)
|
|
$
|
11,631
|
|
||||
Net current-period other comprehensive income (loss)
|
(3,622
|
)
|
|
12,609
|
|
|
—
|
|
|
(126
|
)
|
|
8,861
|
|
||||||
Ending balance
|
$
|
(3,748
|
)
|
|
$
|
1,059
|
|
|
$
|
258
|
|
|
$
|
4,905
|
|
|
$
|
2,474
|
|
|
|
Changes in Accumulated Other Comprehensive Income (Loss) by Component (a)
|
|||||||||||||||
|
|
Three months ended March 31, 2018
|
|||||||||||||||
(in thousands)
|
|
Foreign Currency Translation Adjustment
|
|
Investment in Convertible Preferred Securities
|
|
Defined Benefit Plan Items
|
|
Total
|
|||||||||
Beginning Balance
|
|
$
|
(7,716
|
)
|
|
$
|
344
|
|
|
$
|
4,672
|
|
|
$
|
(2,700
|
)
|
|
|
Other comprehensive income (loss) before reclassifications
|
|
(1,150
|
)
|
|
(87
|
)
|
|
117
|
|
|
(1,120
|
)
|
||||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
(168
|
)
|
|
(168
|
)
|
||||
Net current-period other comprehensive income (loss)
|
|
(1,150
|
)
|
|
(87
|
)
|
|
(51
|
)
|
|
(1,288
|
)
|
|||||
Ending balance
|
|
$
|
(8,866
|
)
|
|
$
|
257
|
|
|
$
|
4,621
|
|
|
$
|
(3,988
|
)
|
|
|
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a)
|
||||
(in thousands)
|
Three months ended March 31, 2019
|
|||||
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income Is Presented
|
||
Defined Benefit Plan Items
|
|
|
|
|
||
Amortization of prior-service cost
|
|
(228
|
)
|
|
(b)
|
|
|
|
(228
|
)
|
|
Total before tax
|
|
|
|
57
|
|
|
Income tax provision
|
|
|
|
$
|
(171
|
)
|
|
Net of tax
|
|
|
|
|
|
||
Cash Flow Hedges
|
|
|
|
|
||
Interest payments
|
|
182
|
|
|
Interest expense
|
|
|
|
182
|
|
|
Total before tax
|
|
|
|
(46
|
)
|
|
Income tax provision
|
|
|
|
$
|
136
|
|
|
Net of tax
|
|
|
|
|
|
||
Foreign Currency Translation Adjustment
|
|
|
|
|
||
Realized loss on pre-existing investment
|
|
11,666
|
|
|
Other income, net
|
|
|
|
11,666
|
|
|
Total before tax
|
|
|
|
—
|
|
|
Income tax provision
|
|
|
|
$
|
11,666
|
|
|
Net of tax
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
11,631
|
|
|
Net of tax
|
|
|
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a)
|
||||
(in thousands)
|
Three months ended March 31, 2018
|
|||||
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income Is Presented
|
||
Defined Benefit Plan Items
|
|
|
|
|
||
Amortization of prior-service cost
|
|
(228
|
)
|
|
(b)
|
|
|
|
(228
|
)
|
|
Total before tax
|
|
|
|
60
|
|
|
Income tax provision
|
|
|
|
$
|
(168
|
)
|
|
Net of tax
|
|
|
|
|
|
||
Total reclassifications for the period
|
|
$
|
(168
|
)
|
|
Net of tax
|
(in thousands, except per common share data)
|
Three months ended March 31,
|
||||||
2019
|
|
2018
|
|||||
Net income (loss) attributable to The Andersons, Inc.
|
$
|
(13,993
|
)
|
|
$
|
(1,700
|
)
|
Less: Distributed and undistributed earnings allocated to nonvested restricted stock
|
—
|
|
|
—
|
|
||
Earnings (losses) available to common shareholders
|
$
|
(13,993
|
)
|
|
$
|
(1,700
|
)
|
Earnings per share – basic:
|
|
|
|
||||
Weighted average shares outstanding – basic
|
32,501
|
|
|
28,237
|
|
||
Earnings (losses) per common share – basic
|
$
|
(0.43
|
)
|
|
$
|
(0.06
|
)
|
Earnings per share – diluted:
|
|
|
|
||||
Weighted average shares outstanding – basic
|
32,501
|
|
|
28,237
|
|
||
Effect of dilutive awards
|
—
|
|
|
—
|
|
||
Weighted average shares outstanding – diluted
|
32,501
|
|
|
28,237
|
|
||
Earnings (losses) per common share – diluted
|
$
|
(0.43
|
)
|
|
$
|
(0.06
|
)
|
(in thousands)
|
March 31, 2019
|
||||||||||||||
Assets (liabilities)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Commodity derivatives, net (a)
|
$
|
60,331
|
|
|
$
|
31,259
|
|
|
$
|
—
|
|
|
$
|
91,590
|
|
Provisionally priced contracts (b)
|
(48,430
|
)
|
|
(49,393
|
)
|
|
—
|
|
|
$
|
(97,823
|
)
|
|||
Convertible preferred securities (c)
|
—
|
|
|
—
|
|
|
7,404
|
|
|
$
|
7,404
|
|
|||
Other assets and liabilities (d)
|
5,772
|
|
|
(4,494
|
)
|
|
—
|
|
|
$
|
1,278
|
|
|||
Total
|
$
|
17,673
|
|
|
$
|
(22,628
|
)
|
|
$
|
7,404
|
|
|
$
|
2,449
|
|
(in thousands)
|
December 31, 2018
|
||||||||||||||
Assets (liabilities)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Commodity derivatives, net (a)
|
37,229
|
|
|
(18,864
|
)
|
|
—
|
|
|
18,365
|
|
||||
Provisionally priced contracts (b)
|
(76,175
|
)
|
|
(58,566
|
)
|
|
—
|
|
|
(134,741
|
)
|
||||
Convertible preferred securities (c)
|
—
|
|
|
—
|
|
|
7,154
|
|
|
7,154
|
|
||||
Other assets and liabilities (d)
|
5,186
|
|
|
(353
|
)
|
|
—
|
|
|
4,833
|
|
||||
Total
|
$
|
(33,760
|
)
|
|
$
|
(77,783
|
)
|
|
$
|
7,154
|
|
|
$
|
(104,389
|
)
|
(in thousands)
|
March 31, 2018
|
||||||||||||||
Assets (liabilities)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Commodity derivatives, net (a)
|
35,888
|
|
|
(7,177
|
)
|
|
—
|
|
|
28,711
|
|
||||
Provisionally priced contracts (b)
|
(48,478
|
)
|
|
(31,847
|
)
|
|
—
|
|
|
(80,325
|
)
|
||||
Convertible preferred securities (c)
|
—
|
|
|
—
|
|
|
7,388
|
|
|
7,388
|
|
||||
Other assets and liabilities (d)
|
8,947
|
|
|
(454
|
)
|
|
—
|
|
|
8,493
|
|
||||
Total
|
$
|
(3,643
|
)
|
|
$
|
(39,478
|
)
|
|
$
|
7,388
|
|
|
$
|
(35,733
|
)
|
(a)
|
Includes associated cash posted/received as collateral
|
(b)
|
Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2)
|
(c)
|
Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets.
|
(d)
|
Included in other assets and liabilities are assets held in rabbi trusts to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1), and interest rate derivatives (Level 2).
|
|
|
Convertible Preferred Securities
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Assets (liabilities) at January 1,
|
|
$
|
7,154
|
|
|
$
|
7,388
|
|
Additional Investments
|
|
250
|
|
|
—
|
|
||
Assets (liabilities) at March 31,
|
|
$
|
7,404
|
|
|
$
|
7,388
|
|
(in thousands)
|
Fair Value as of December 31, 2018
|
|
Valuation Method
|
|
Unobservable Input
|
|
Weighted Average
|
||
Convertible preferred securities (a)
|
$
|
7,154
|
|
|
Implied based on market prices
|
|
N/A
|
|
N/A
|
(in thousands)
|
Fair Value as of March 31, 2018
|
|
Valuation Method
|
|
Unobservable Input
|
|
Weighted Average
|
||
Convertible preferred securities (a)
|
$
|
7,388
|
|
|
Implied based on market prices
|
|
N/A
|
|
N/A
|
Real property (b)
|
$
|
29,347
|
|
|
Third Party Appraisal
|
|
N/A
|
|
N/A
|
(in thousands)
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
||||||
Fair value of long-term debt, including current maturities
|
$
|
1,043,503
|
|
|
$
|
517,998
|
|
|
$
|
448,346
|
|
Fair value in excess of carrying value (a)
|
2,318
|
|
|
5,813
|
|
|
8,241
|
|
(in thousands)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
The Andersons Albion Ethanol LLC
|
$
|
50,641
|
|
|
$
|
50,382
|
|
|
$
|
46,145
|
|
The Andersons Clymers Ethanol LLC
|
24,823
|
|
|
24,242
|
|
|
20,339
|
|
|||
The Andersons Marathon Ethanol LLC
|
15,650
|
|
|
14,841
|
|
|
12,615
|
|
|||
Lansing Trade Group, LLC (a)
|
—
|
|
|
101,715
|
|
|
94,483
|
|
|||
Thompsons Limited (a)
|
—
|
|
|
48,987
|
|
|
48,362
|
|
|||
Providence Grain
|
19,258
|
|
|
—
|
|
|
—
|
|
|||
Other
|
11,409
|
|
|
2,159
|
|
|
2,505
|
|
|||
Total
|
$
|
121,781
|
|
|
$
|
242,326
|
|
|
$
|
224,449
|
|
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
% Ownership at March 31, 2019
|
|
2019
|
|
2018
|
||||
The Andersons Albion Ethanol LLC
|
55%
|
|
$
|
259
|
|
|
$
|
1,121
|
|
The Andersons Clymers Ethanol LLC
|
39%
|
|
581
|
|
|
509
|
|
||
The Andersons Marathon Ethanol LLC
|
33%
|
|
809
|
|
|
(44
|
)
|
||
Lansing Trade Group, LLC (a)
|
100% (a)
|
|
—
|
|
|
2,584
|
|
||
Thompsons Limited (a)
|
100% (a)
|
|
—
|
|
|
(669
|
)
|
||
Providence Grain
|
39%
|
|
(125
|
)
|
|
—
|
|
||
Other
|
5% - 51%
|
|
(5
|
)
|
|
72
|
|
||
Total
|
|
|
$
|
1,519
|
|
|
$
|
3,573
|
|
(in thousands)
|
Three months ended March 31,
|
||||||
2019
|
|
2018
|
|||||
Revenues
|
$
|
122,862
|
|
|
$
|
1,459,331
|
|
Gross profit
|
4,021
|
|
|
56,096
|
|
||
Income (loss) from continuing operations
|
1,963
|
|
|
8,908
|
|
||
Net income (loss)
|
1,963
|
|
|
9,462
|
|
||
Net income (loss) attributable to Companies
|
1,963
|
|
|
9,462
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Sales revenues
|
$
|
61,168
|
|
|
$
|
88,815
|
|
Service fee revenues (a)
|
4,112
|
|
|
5,117
|
|
||
Purchases of product and capital assets
|
169,229
|
|
|
181,524
|
|
||
Lease income (b)
|
1,014
|
|
|
1,582
|
|
||
Labor and benefits reimbursement (c)
|
3,857
|
|
|
3,567
|
|
(a)
|
Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions.
|
(b)
|
Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs.
|
(c)
|
The Company provides all operational labor to the unconsolidated ethanol LLCs.
|
(in thousands)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
Accounts receivable (d)
|
$
|
20,134
|
|
|
$
|
17,829
|
|
|
$
|
27,438
|
|
Accounts payable (e)
|
24,644
|
|
|
28,432
|
|
|
33,184
|
|
(d)
|
Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees.
|
(e)
|
Accounts payable represents amounts due to related parties for purchases of ethanol and other various items.
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Revenues from external customers
|
|
|
|
||||
Trade
|
$
|
1,598,021
|
|
|
$
|
276,852
|
|
Ethanol
|
208,831
|
|
|
172,838
|
|
||
Plant Nutrient
|
128,525
|
|
|
135,617
|
|
||
Rail
|
41,415
|
|
|
50,432
|
|
||
Total
|
$
|
1,976,792
|
|
|
$
|
635,739
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Inter-segment sales
|
|
|
|
||||
Trade
|
$
|
181
|
|
|
$
|
531
|
|
Plant Nutrient
|
20
|
|
|
—
|
|
||
Rail
|
1,275
|
|
|
333
|
|
||
Total
|
$
|
1,476
|
|
|
$
|
864
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Income (loss) before income taxes
|
|
|
|
||||
Trade
|
$
|
(17,464
|
)
|
|
$
|
(1,244
|
)
|
Ethanol
|
2,572
|
|
|
3,053
|
|
||
Plant Nutrient
|
(3,929
|
)
|
|
1,091
|
|
||
Rail
|
4,312
|
|
|
3,969
|
|
||
Other
|
(4,926
|
)
|
|
(8,879
|
)
|
||
Noncontrolling interests
|
(155
|
)
|
|
(282
|
)
|
||
Total
|
$
|
(19,590
|
)
|
|
$
|
(2,292
|
)
|
(in thousands)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2018
|
||||||
Identifiable assets
|
|
|
|
|
|
||||||
Trade
|
$
|
2,116,254
|
|
|
$
|
978,974
|
|
|
$
|
1,031,150
|
|
Ethanol
|
333,060
|
|
|
295,971
|
|
|
210,169
|
|
|||
Plant Nutrient
|
455,529
|
|
|
403,780
|
|
|
455,148
|
|
|||
Rail
|
642,596
|
|
|
590,407
|
|
|
530,994
|
|
|||
Other
|
112,813
|
|
|
122,871
|
|
|
136,067
|
|
|||
Total
|
$
|
3,660,252
|
|
|
$
|
2,392,003
|
|
|
$
|
2,363,528
|
|
(in thousands)
|
|
Condensed Consolidated Balance Sheet Classification
|
|
March 31, 2019
|
||
Assets
|
|
|
|
|
|
|
Operating lease assets
|
|
Right of use asset, net
|
|
$
|
85,766
|
|
Finance lease assets
|
|
Property, plant and equipment, net
|
|
25,379
|
|
|
Finance lease assets
|
|
Rail Group assets leased to others, net
|
|
3,796
|
|
|
Total leased assets
|
|
|
|
$
|
114,941
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
Current operating leases
|
|
Accrued expenses and other current liabilities
|
|
$
|
28,017
|
|
Non-current operating leases
|
|
Long-term lease liabilities
|
|
57,451
|
|
|
Total operating lease liabilities
|
|
|
|
85,468
|
|
|
|
|
|
|
|
||
Current finance leases
|
|
Current maturities of long-term debt
|
|
6,007
|
|
|
Non-current finance leases
|
|
Long-term debt
|
|
23,058
|
|
|
Total finance lease liabilities
|
|
|
|
29,065
|
|
|
Total lease liabilities
|
|
|
|
$
|
114,533
|
|
(in thousands)
|
|
Condensed Consolidated Statement of Operations Classification
|
|
March 31, 2019
|
||
Lease cost:
|
|
|
|
|
||
Operating lease cost
|
|
Cost of sales and merchandising revenues
|
|
$
|
7,239
|
|
Operating lease cost
|
|
Operating, administrative and general expenses
|
|
3,954
|
|
|
Finance lease cost
|
|
|
|
|
|
|
Amortization of right-of-use assets
|
|
Operating, administrative and general expenses
|
|
510
|
|
|
Interest expense on lease liabilities
|
|
Interest expense
|
|
123
|
|
|
Other lease cost (1)
|
|
Operating, administrative and general expenses
|
|
199
|
|
|
Other lease cost (1)
|
|
Interest expense
|
|
24
|
|
|
Total lease cost
|
|
|
|
$
|
12,049
|
|
(1)
|
Other lease cost includes short-term lease costs and variable lease costs
|
Weighted Average Remaining Lease Term
|
|
Operating leases
|
4.88 years
|
Finance leases
|
11.0 years
|
Weighted Average Discount Rate
|
|
|
Operating leases
|
4.22
|
%
|
Finance leases
|
3.18
|
%
|
(in thousands)
|
|
March 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
Operating cash flows from operating leases
|
|
$
|
15,418
|
|
Operating cash flows from finance leases
|
|
$
|
123
|
|
Financing cash flows from finance leases
|
|
$
|
387
|
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
|
|
Operating leases
|
|
$
|
1,995
|
|
Finance leases
|
|
$
|
3,796
|
|
|
As of March 31, 2019
|
||||||||||
(in thousands)
|
Operating Leases
|
|
Finance
Leases
|
|
Total
|
||||||
2019 (excluding the three months ended March 31, 2019)
|
$
|
31,076
|
|
|
$
|
6,293
|
|
|
$
|
37,369
|
|
2020
|
21,688
|
|
|
2,333
|
|
|
24,021
|
|
|||
2021
|
16,289
|
|
|
2,334
|
|
|
18,623
|
|
|||
2022
|
9,927
|
|
|
2,341
|
|
|
12,268
|
|
|||
2023
|
5,793
|
|
|
2,342
|
|
|
8,135
|
|
|||
Thereafter
|
8,688
|
|
|
18,331
|
|
|
27,019
|
|
|||
Total lease payments
|
$
|
93,461
|
|
|
$
|
33,974
|
|
|
$
|
127,435
|
|
Less interest
|
7,993
|
|
|
4,909
|
|
|
12,902
|
|
|||
Total
|
$
|
85,468
|
|
|
$
|
29,065
|
|
|
$
|
114,533
|
|
|
Three months ended March 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
||||
Interest paid
|
$
|
16,711
|
|
|
$
|
9,854
|
|
Noncash investing and financing activity
|
|
|
|
||||
Equity issued in conjunction with acquisition
|
123,146
|
|
|
—
|
|
||
Capital projects incurred but not yet paid
|
15,974
|
|
|
7,115
|
|
||
Removal of pre-existing equity method investment
|
(159,459
|
)
|
|
—
|
|
||
Purchase price holdback/ other accrued liabilities
|
31,518
|
|
|
—
|
|
||
Dividends declared not yet paid
|
5,527
|
|
|
4,663
|
|
||
Debt resulting from accounting standard adoption
|
—
|
|
|
36,953
|
|
||
Railcar assets and liabilities resulting from accounting standard adoption
|
—
|
|
|
25,643
|
|
|
|
||
Cash consideration paid
|
$
|
169,218
|
|
Equity consideration
|
123,146
|
|
|
Purchase price holdback/ other accrued liabilities
|
31,518
|
|
|
Total purchase price consideration
|
$
|
323,882
|
|
|
|
||
Cash and cash equivalents
|
$
|
21,923
|
|
Accounts receivable
|
320,467
|
|
|
Inventories
|
456,963
|
|
|
Commodity derivative assets - current
|
82,595
|
|
|
Other current assets
|
27,473
|
|
|
Commodity derivative assets - noncurrent
|
13,576
|
|
|
Goodwill
|
113,617
|
|
|
Other intangible assets
|
116,200
|
|
|
Right of use asset
|
42,972
|
|
|
Equity method investments
|
28,728
|
|
|
Other assets, net
|
2,211
|
|
|
Property, plant and equipment, net
|
173,388
|
|
|
|
1,400,113
|
|
|
|
|
||
Short-term debt
|
218,901
|
|
|
Trade and other payables
|
303,321
|
|
|
Commodity derivative liabilities - current
|
29,024
|
|
|
Customer prepayments and deferred revenue
|
99,530
|
|
|
Accrued expense and other current liabilities
|
63,263
|
|
|
Other long-term liabilities, including commodity derivative liabilities - noncurrent
|
3,174
|
|
|
Long-term lease liabilities
|
25,810
|
|
|
Long-term debt, including current maturities
|
161,688
|
|
|
Deferred income taxes
|
15,577
|
|
|
|
920,288
|
|
|
Fair value of acquired assets and assumed liabilities
|
$
|
479,825
|
|
|
|
||
Removal of preexisting ownership interest, including associated cumulative translation adjustment
|
(159,459
|
)
|
|
Pre-tax loss on derecognition of preexisting ownership interest
|
3,516
|
|
|
Total purchase price consideration
|
$
|
323,882
|
|
|
|
|
|
Estimated useful life
|
|
||
Customer relationships
|
$
|
95,200
|
|
10 years
|
|
Noncompete agreements
|
21,000
|
|
3 years
|
|
|
|
$
|
116,200
|
|
8 years
|
*
|
|
Three Months Ended March 31
|
|
|||||
|
2019
|
|
2018
|
||||
Net sales
|
$
|
1,974,092
|
|
|
$
|
1,928,312
|
|
Net loss
|
(10,753
|
)
|
|
(10,396
|
)
|
(in thousands)
|
Trade
|
|
Plant Nutrient
|
|
Rail
|
|
Total
|
||||||||
Balance as of January 1, 2019
|
$
|
1,171
|
|
|
$
|
686
|
|
|
$
|
4,167
|
|
|
$
|
6,024
|
|
Acquisitions
|
113,617
|
|
|
—
|
|
|
—
|
|
|
113,617
|
|
||||
Balance as of March 31, 2019
|
$
|
114,788
|
|
|
$
|
686
|
|
|
$
|
4,167
|
|
|
$
|
119,641
|
|
(in thousands)
|
Three months ended March 31,
|
||||
|
2019
|
|
2018
|
||
Ethanol (gallons shipped)
|
131,028
|
|
|
103,075
|
|
E-85 (gallons shipped)
|
8,932
|
|
|
14,901
|
|
Corn Oil (pounds shipped)
|
4,932
|
|
|
4,807
|
|
DDG (tons shipped) *
|
36
|
|
|
39
|
|
(in thousands)
|
Three months ended March 31,
|
||||
|
2019
|
|
2018
|
||
Primary nutrients
|
178
|
|
|
202
|
|
Specialty nutrients
|
165
|
|
|
186
|
|
Other
|
16
|
|
|
16
|
|
Total tons
|
359
|
|
|
404
|
|
|
Three months ended March 31, 2019
|
||||||||||||||||||||||
(in thousands)
|
Trade
|
|
Ethanol
|
|
Plant Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
||||||||||||
Sales and merchandising revenues
|
$
|
1,598,021
|
|
|
$
|
208,831
|
|
|
$
|
128,525
|
|
|
$
|
41,415
|
|
|
$
|
—
|
|
|
$
|
1,976,792
|
|
Cost of sales and merchandising revenues
|
1,529,032
|
|
|
205,023
|
|
|
107,591
|
|
|
25,482
|
|
|
—
|
|
|
1,867,128
|
|
||||||
Gross profit
|
68,989
|
|
|
3,808
|
|
|
20,934
|
|
|
15,933
|
|
|
—
|
|
|
109,664
|
|
||||||
Operating, administrative and general expenses
|
72,416
|
|
|
3,949
|
|
|
23,169
|
|
|
8,151
|
|
|
5,664
|
|
|
113,349
|
|
||||||
Interest expense (income)
|
10,916
|
|
|
(824
|
)
|
|
2,261
|
|
|
3,679
|
|
|
(122
|
)
|
|
15,910
|
|
||||||
Equity in earnings (losses) of affiliates, net
|
(131
|
)
|
|
1,650
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,519
|
|
||||||
Other income (expense), net
|
(2,990
|
)
|
|
84
|
|
|
567
|
|
|
209
|
|
|
616
|
|
|
(1,514
|
)
|
||||||
Income (loss) before income taxes
|
(17,464
|
)
|
|
2,417
|
|
|
(3,929
|
)
|
|
4,312
|
|
|
(4,926
|
)
|
|
(19,590
|
)
|
||||||
Income (loss) attributable to the noncontrolling interests
|
—
|
|
|
(155
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
||||||
Income (loss) attributable to The Andersons, Inc.
|
$
|
(17,464
|
)
|
|
$
|
2,572
|
|
|
$
|
(3,929
|
)
|
|
$
|
4,312
|
|
|
$
|
(4,926
|
)
|
|
$
|
(19,435
|
)
|
|
Three months ended March 31, 2018
|
||||||||||||||||||||||
(in thousands)
|
Trade
|
|
Ethanol
|
|
Plant Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
||||||||||||
Sales and merchandising revenues
|
$
|
276,027
|
|
|
$
|
173,663
|
|
|
$
|
135,617
|
|
|
$
|
50,432
|
|
|
$
|
—
|
|
|
$
|
635,739
|
|
Cost of sales and merchandising revenues
|
250,802
|
|
|
169,972
|
|
|
113,380
|
|
|
37,880
|
|
|
—
|
|
|
572,034
|
|
||||||
Gross profit
|
25,225
|
|
|
3,691
|
|
|
22,237
|
|
|
12,552
|
|
|
—
|
|
|
63,705
|
|
||||||
Operating, administrative and general expenses
|
25,821
|
|
|
3,162
|
|
|
20,357
|
|
|
6,231
|
|
|
8,686
|
|
|
64,257
|
|
||||||
Interest expense (income)
|
2,960
|
|
|
(42
|
)
|
|
1,441
|
|
|
2,368
|
|
|
272
|
|
|
6,999
|
|
||||||
Equity in earnings (losses) of affiliates, net
|
1,987
|
|
|
1,586
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,573
|
|
||||||
Other income (expense), net
|
325
|
|
|
614
|
|
|
652
|
|
|
16
|
|
|
79
|
|
|
1,686
|
|
||||||
Income (loss) before income taxes
|
(1,244
|
)
|
|
2,771
|
|
|
1,091
|
|
|
3,969
|
|
|
(8,879
|
)
|
|
(2,292
|
)
|
||||||
Income (loss) attributable to the noncontrolling interests
|
—
|
|
|
(282
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(282
|
)
|
||||||
Income (loss) attributable to The Andersons, Inc.
|
$
|
(1,244
|
)
|
|
$
|
3,053
|
|
|
$
|
1,091
|
|
|
$
|
3,969
|
|
|
$
|
(8,879
|
)
|
|
$
|
(2,010
|
)
|
(in thousands)
|
March 31, 2019
|
|
March 31, 2018
|
|
Variance
|
||||||
Current Assets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
29,991
|
|
|
$
|
31,497
|
|
|
$
|
(1,506
|
)
|
Accounts receivable, net
|
611,290
|
|
|
216,021
|
|
|
395,269
|
|
|||
Inventories
|
1,026,465
|
|
|
731,629
|
|
|
294,836
|
|
|||
Commodity derivative assets – current
|
158,277
|
|
|
43,810
|
|
|
114,467
|
|
|||
Other current assets
|
60,222
|
|
|
57,147
|
|
|
3,075
|
|
|||
Assets held for sale
|
364
|
|
|
57,775
|
|
|
(57,411
|
)
|
|||
Total current assets
|
1,886,609
|
|
|
1,137,879
|
|
|
748,730
|
|
|||
Current Liabilities:
|
|
|
|
|
|
||||||
Short-term debt
|
434,304
|
|
|
489,000
|
|
|
(54,696
|
)
|
|||
Trade and other payables
|
590,258
|
|
|
263,519
|
|
|
326,739
|
|
|||
Customer prepayments and deferred revenue
|
148,345
|
|
|
81,778
|
|
|
66,567
|
|
|||
Commodity derivative liabilities – current
|
66,623
|
|
|
15,424
|
|
|
51,199
|
|
|||
Accrued expenses and other current liabilities
|
151,648
|
|
|
60,095
|
|
|
91,553
|
|
|||
Current maturities of long-term debt
|
55,160
|
|
|
14,134
|
|
|
41,026
|
|
|||
Total current liabilities
|
1,446,338
|
|
|
923,950
|
|
|
522,388
|
|
|||
Working Capital
|
$
|
440,271
|
|
|
$
|
213,929
|
|
|
$
|
226,342
|
|
|
Payments Due by Period
|
||||||||||||||||||
(in thousands)
|
2019 (remaining nine months)
|
|
2020-2021
|
|
2022-2023
|
|
After 2023
|
|
Total
|
||||||||||
Long-term debt, recourse
|
$
|
49,498
|
|
|
$
|
264,940
|
|
|
$
|
323,420
|
|
|
$
|
338,695
|
|
|
$
|
976,553
|
|
Long-term debt, non-recourse
|
4,829
|
|
|
130,859
|
|
|
9,961
|
|
|
6,370
|
|
|
152,019
|
|
|||||
Interest obligations (a)
|
39,974
|
|
|
60,746
|
|
|
40,971
|
|
|
36,856
|
|
|
178,547
|
|
|||||
Operating leases (b)
|
30,678
|
|
|
34,749
|
|
|
12,294
|
|
|
8,688
|
|
|
86,409
|
|
|||||
Purchase commitments (c)
|
3,479,536
|
|
|
386,147
|
|
|
1,395
|
|
|
—
|
|
|
3,867,078
|
|
|||||
Other long-term liabilities (d)
|
3,317
|
|
|
6,711
|
|
|
6,804
|
|
|
24,695
|
|
|
41,527
|
|
|||||
Construction commitment (e)
|
39,747
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,747
|
|
|||||
Total contractual cash obligations
|
$
|
3,647,579
|
|
|
$
|
884,152
|
|
|
$
|
394,845
|
|
|
$
|
415,304
|
|
|
$
|
5,341,880
|
|
Method of Control
|
Financial Statement
|
|
Units
|
|
Owned - railcars available for sale
|
On balance sheet – current
|
|
271
|
|
Owned - railcar assets leased to others
|
On balance sheet – non-current
|
|
20,812
|
|
Railcars leased from financial intermediaries
|
Off balance sheet
|
|
2,261
|
|
Railcars in non-recourse arrangements
|
Off balance sheet
|
|
163
|
|
Total Railcars
|
|
|
23,507
|
|
Locomotive assets leased to others
|
On balance sheet – non-current
|
|
24
|
|
Locomotives leased from financial intermediaries
|
Off balance sheet
|
|
4
|
|
Total Locomotives
|
|
|
28
|
|
Barge assets leased from financial intermediaries
|
Off balance sheet
|
|
15
|
|
Total Barges
|
|
|
15
|
|
Period
|
Total Number of Shares Purchased (1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||
January 2019
|
30,158
|
|
|
$
|
30.03
|
|
|
—
|
|
|
|
February 2019
|
1,673
|
|
|
35.24
|
|
|
—
|
|
|
|
|
March 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Total
|
31,831
|
|
|
30.30
|
|
|
—
|
|
|
|
|
|
|
No.
|
|
Description
|
|
|
|
10.1
|
|
Employment Agreement between The Andersons, Inc. and William E. Krueger (Incorporated by reference to Form 8-K filed January 14, 2019).
|
|
|
|
10.2
|
|
Credit Agreement, dated January 11, 2019, between The Andersons, Inc., as borrower, and several banks with U.S. Bank National Association acting as Lead Agent. (Incorporated by reference to Form 8-K filed January 2, 2019).
|
|
|
|
10.3
|
|
Form of Performance Share Unit Agreement - Total Shareholder Return (filed herewith).
|
|
|
|
10.4
|
|
Form of Restricted Share Award (filed herewith).
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
Certifications Pursuant to 18 U.S.C. Section 1350 (filed herewith).
|
|
|
|
95
|
|
Mine Safety Disclosure (filed herewith).
|
|
|
|
101
|
|
Financial Statements from the interim report on Form 10-Q of The Andersons, Inc. for the period ended March 31, 2019, formatted in XBRL: (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statement of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.
|
|
|
|
|
|
THE ANDERSONS, INC.
(Registrant)
|
|
|
|
Date: May 10, 2019
|
|
By /s/ Patrick E. Bowe
|
|
|
Patrick E. Bowe
|
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
Date: May 10, 2019
|
|
By /s/ Brian A. Valentine
|
|
|
Brian A. Valentine
|
|
|
Senior Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
No.
|
|
Description
|
|
|
|
10.1
|
|
Employment Agreement between The Andersons, Inc. and William E. Krueger (Incorporated by reference to Form 8-K filed January 14, 2019).
|
|
|
|
10.2
|
|
Credit Agreement, dated January 11, 2019, between The Andersons, Inc., as borrower, and several banks with U.S. Bank National Association acting as Lead Agent. (Incorporated by reference to Form 8-K filed January 2, 2019).
|
|
|
|
10.3
|
|
Form of Performance Share Unit Agreement - Total Shareholder Return (filed herewith).
|
|
|
|
10.4
|
|
Form of Restricted Share Award (filed herewith).
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
Certifications Pursuant to 18 U.S.C. Section 1350 (filed herewith).
|
|
|
|
95
|
|
Mine Safety Disclosure (filed herewith).
|
|
|
|
101
|
|
Financial Statements from the interim report on Form 10-Q of The Andersons, Inc. for the period ended March 31, 2019, formatted in XBRL: (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statement of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.
|
Goal
Achievement |
Company’s Annualized TSR Relative to Comparator Group’s Annualized TSR
|
Vested PSU Payout Percent
|
|
% of Target PSUs if Company TSR is Positive
|
% of Target PSUs if Company TSR is Negative
|
||
Maximum
|
+18 percentage points or more above Target
|
200%
|
100%
|
Above Target
|
For every +1 percentage points Company TSR is above Target
|
100% plus 5.56% of target
|
100%
|
Target
|
Comparator Group’s Annualized TSR
|
100%
|
100%
|
Below Target
|
For every -1 percentage points Company TSR is below Comparator Group
|
100% less 5% of target
|
100% less 5% of target
|
Threshold
|
'-12 percentage points below
Comparator Group |
40%
|
40%
|
Below Threshold
|
More than -12 percentage points below Comparator Group
|
0%
|
0%
|
Vesting Date
|
|
Percent of Shares
|
January 2, 2020
|
|
33.3%
|
January 2, 2021
|
|
33.3%
|
January 2, 2022
|
|
33.3%
|
1
|
I have reviewed this report on Form 10-Q of The Andersons, Inc.
|
2
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Patrick E. Bowe
|
|
Patrick E. Bowe
|
|
Chief Executive Officer (Principal Executive Officer)
|
1
|
I have reviewed this report on Form 10-Q of The Andersons, Inc.
|
2
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Brian A. Valentine
|
|
Brian A. Valentine
|
|
Senior Vice President and Chief Financial Officer (Principle Financial Officer)
|
(1)
|
The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
|
|
|
/s/ Patrick E. Bowe
|
|
Patrick E. Bowe
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
/s/ Brian A. Valentine
|
|
Brian A. Valentine
|
|
Senior Vice President and Chief Financial Officer (Principle Financial Officer)
|
|
|
(A)
|
Mine Act Section 104 Significant and Substantial (“S&S”) citations shown below are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a mine health and safety hazard. It should be noted that, for purposes of this table, S&S citations that are included in another column, such as Section 104(d) citations, are not also included as Section 104 S&S citations in this column.
|
(B)
|
Mine Act Section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.
|
(C)
|
Mine Act Section 104(d) citations and orders are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.
|
(D)
|
Mine Act Section 110(b)(2) violations are for an alleged “flagrant” failure (i.e., reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.
|
(E)
|
Mine Act Section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.
|
(G)
|
Mine Act Section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a mine safety or health hazard.
|
|
|
Three months ended March 31, 2019
|
||||||||||
|
|
(A)
|
|
(B)
|
|
(C)
|
|
(D)
|
|
(E)
|
|
(F)
|
Mine Name/MSHA ID No.
|
|
Section 104 S&S
Citations
|
|
Section 104(b)
Orders
|
|
Section 104(d) Citations/Orders
|
|
Section 110(b)(2) Citations/Orders
|
|
Section 107(a)
Orders
|
|
Total Dollar Value of MSHA Assessments Proposed
|
Industrial Sand Processing Plt-North Branch/21-02917
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$0
|
Titan Lansing OKC Sand Plant/34-02189
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
$0
|
|
|
Three months ended March 31, 2019
|
||||||||
|
|
(G)
|
|
|
|
|
|
|
|
|
Mine Name/MSHA ID No.
|
|
Received Notice of Pattern of Violations Under Section 104(e) (yes/no)
|
|
Total Number of Mining Related Fatalities
|
|
Legal Actions Pending as of Last Day of Period
|
|
Legal Actions Initiated During Period
|
|
Legal Actions Resolved During Period
|
Industrial Sand Processing Plt-North Branch/21-02917
|
|
No
|
|
—
|
|
—
|
|
—
|
|
—
|
Titan Lansing OKC Sand Plant/34-02189
|
|
No
|
|
—
|
|
—
|
|
—
|
|
—
|