The Andersons Inc., Maumee, Ohio, reported improved results for its Plant Nutrient Group (PNG) for the fourth quarter ending Dec. 31, 2018, posting pretax income of $3.8 million on revenues of $147.6 million, compared to a year-ago loss of $18 million and $136.9 million, respectively. Adjusted EBITDA was $12.5 million, up from $6.8 million.
The company said except for specialty fertilizer product lines, PNG businesses recorded improved year-over-year operating results. It said a significant increase in margin per ton on somewhat lower primary nutrient volume drove wholesale fertilizer gross profit more than 30 percent higher year-over-year. In contrast, higher volumes only partially offset weaker margins in the specialty fertilizer product lines. The lawn business completed a record year by improving results by almost $1 million year-over-year. In addition to improving gross profit, PNG reduced expenses by 12 percent year-over-year.
Full-year pretax income was $12 million on revenues of $690.5 million, up from 2017’s loss of $45.1 million and $651.8 million, respectively. Adjusted EBITDA was $45.4 million, up from $47 million. Excluding a 2017 $4.7 million gain from the sale of Florida farm centers, adjusted EBITDA was up 7 percent.
For the year, wholesale fertilizer volumes were up slightly, but margins were moderately lower, especially in the specialty nutrient product line.
Company-wide, The Andersons reported fourth-quarter net income attributable to The Andersons of $23.7 million ($0.84 per diluted share) on sales of $812.7 million, down from the year-ago $69.7 million ($2.47 per share) and $1 billion, respectively. Adjusted net income was $26 million ($0.92 per share) versus the year-ago $18.9 million ($0.67 per share). Adjusted EBITDA was $63.3 million, up from $53 million.
Full-year net income was $41.5 million ($1.46 per share) on sales of $3.04 billion, compared to 2017’s $42.5 million ($1.50 per share) and $3.69 billion, respectively. Adjusted net income was $46.4 million ($1.63 per share) versus $33.6 million ($1.19 per share). Adjusted EBITDA was $178.1 million, up from $157.4 million.
“We improved our fourth quarter operating performance year over year,” said Pat Bowe, president and CEO. “The Grain Group recorded better results highlighted by improvement in its base grain business and a strong finish to the year by Lansing Trade Group. We are excited about the closing of our acquisition of Lansing at the beginning of 2019. Our integration efforts are going very well, and we are committed to a thoughtful, disciplined combination of our organizations. We are more confident than ever about the strong strategic fit of the transaction.
“In addition, our Ethanol Group performed well in a weak market environment by continuing to operate efficiently and market wisely even as margins for the quarter were lower again year over year,” he added. “The Plant Nutrient Group’s performance improved across most of its product lines except for specialty nutrients. The Rail Group’s performance was equal to last year’s results, and the group purchased more than 1,000 railcars.”