The Andersons, Inc. Reports Correctiontitle
MAUMEE, Ohio, Nov. 18 /PRNewswire-FirstCall/ -- The Andersons, Inc.
(Nasdaq: ANDE), today announced a correction to the Statement of Cash Flows
for the nine month period ended September 30, 2005 which the company had
included in its 10-Q filing with the Securities and Exchange Commission on
November 8, 2005. Analysis conducted by the company subsequent to the filing
revealed an error that affected two line items in the statement. This error
had no impact on the companys Balance Sheets, Statements of Income or
Statements of Shareholders Equity.
The company and its Audit Committee determined on Wednesday, November 16
that the restatement was needed and that it had not maintained effective
controls over the preparation of its financial statements for the third
quarter of 2005. The company determined that a control breakdown occurred
during the third quarter concerning certain data used in the preparation of
the cash flow statement and this breakdown constituted a material weakness for
the period. Subsequent to the discovery of this error, the Company has
implemented enhanced procedures to properly prepare its financial statements,
specifically the condensed consolidated statement of cash flow.
The cash flow statement containing the error, found on page 6 of the
November 8th filing, should have indicated a gain of $2.1 million on sales of
railcars and related leases for the nine month period, instead of the $4.9
million reported. The statement should also have indicated $49.3 million of
proceeds from sale or financing of railcars and related leases for the period,
instead of the $52.1 million reported.
The Andersons, Inc. is a diversified company with interests in the grain
and plant nutrient sectors of U.S. agriculture, as well as in railcar
marketing, industrial products formulation, turf products production, and
general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company
presently has operations in seven U.S. states plus rail equipment leasing
interests in Canada and Mexico.
The Andersons, Inc. is located on the Internet at http://www.andersonsinc.com
