Andersons Inc (NASDAQ:ANDE) Q4 2015 Earnings Conference Call - Final Transcript

Feb 11, 2016 • 11:00 am ET


Andersons Inc (NASDAQ:ANDE) Q4 2015 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen, and welcome to The Andersons, Inc. Q4 2015 Earnings Conference Call. [Operator Instructions]

I would now like to introduce your host for today's conference, Mr. Jim Burmeister, Vice President, Finance and Treasurer. Sir, you may begin.

Jim Burmeister

Thank you, Chanel. Good morning, everyone, and thank you for joining us for The Andersons fourth quarter and full year 2015 conference call. For the purposes of today's discussion, we have provided a slide presentation, that will enhance our talking points. If you are viewing this presentation via our Web cast, the slides and audio will be in sync. This Web cast and supporting slides are being recorded and will be made available on the Investor Relations section of our web site at

Certain information discussed today constitutes forward-looking statements and actual results could differ materially from those presented in the forward-looking statements as a result of many factors including general economic conditions, weather, competitive conditions, conditions in the company's industries both in the United States and internationally, and additional factors that are described in the company's publicly filed documents including its '34 act filings and the prospectuses prepared in conjunction with the company's offerings.

Today's call includes financial information, for which the Company's independent auditors have not completed their review. 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 accurate.

This presentation and today's prepared remarks contain non-GAAP financial measures. Reconciliations of the non-GAAP to GAAP measures may be found within the financial tables of our earnings release, adjusted pre-tax income attributable to the Andersons is our primary measure of period-to-period comparisons, and we believe it is a meaningful measure for investors to compare our results from period-to-period. We have excluded non-recurring items, and items that we believe are not representative of our ongoing operations in calculating this adjusted pre-tax income.

On the call with me today are, Pat Bowe, Chief Executive Officer; and John Granato, Chief Financial Officer. Pat, John and I will answer questions that you may have at the end of the prepared remarks.

Now, I will turn the floor over to Pat for opening comments. Pat?

Pat Bowe

Thank you, Jim, and good morning everyone. Thank you for joining our call today to discuss our fourth quarter and full year 2015 results. Revenues for The Andersons for 2015 were $4.2 billion, slightly lower than the $4.5 billion last year on lower commodity prices. Full year adjusted pre-tax income was $76.1 million compared to $158.2 million in the prior year, primarily due to lower Ethanol margins and weaker performance in our grain and plant nutrient groups.

I am pleased to note a bright spot in our Rail Group, which completed its most profitable year ever, where we have seen $50.7 million of pre-tax income compared to $31.2 million last year.

Our Ethanol Group performed very well in an extremely challenging energy market. The Group