Andersons Inc. (ANDE)

[Slashnuts]

New ANDE Record 16.5M Pounds! +470% .66 Per Bushel!

I'm big into GERS, an ethanol technology upgrade company.
GERS 2nd Largest Customer, ANDE, Extracted a Record .66 Pounds of oil Per Bushel, 16.5 Million Pounds of corn oil!

That's an increase of 470% from the 2.9 million pounds in Q311.

Up 2 million pounds from the 14.5 million in Q212.

GERS' invented corn oil extraction. You see, a whole corn kernal is hard on the digestive tracks of livestock. When an ethanol plant converts the starch to alcohol, the rest is animal feed. GERS has a system that gets the corn oil out to make an even better, high quality, low fat, high protein animal feed. More DDGS can be fed to animals with the oil removed.

ANDE along with MPC are using GERS' technology at their plants.

Ethanol (gallons shipped) 70.4 M
Corn Oil (pounds shipped) 16.5 M

The results from GERS' 2nd largest customer include 2 ethanol plants that are part owned by Marathon Oil, MPC, as well as the Amaizing Energy plant in Iowa that settled the lawsuit.
http://www.sec.gov/Archives/edgar/data/821026/000082102612000030/ande2012093010-q.htm


As you can see, this ex infringer is now contributing to GERS revenues. GERS is suing a lot of companies for stealing their technology. Amaizing Energy was one of those companies but ANDE bought them out and are now licensed with GERS.

GPRE is GERS' largest customer.

Corn oil sales also contributed to the significant increase over the third quarter year-to-date period of 2011, there were no corn oil sales for the Ethanol Group until 2012. In addition, the acquisition of TADE in the second quarter of 2012 added $52.5 million in ethanol sales, $15.3 million of DDG sales, $1.8 million of corn oil sales and $0.8 million of syrup sales.

12. Business Acquisitions
On May 1, 2012, the Company and its subsidiary, The Andersons Denison Ethanol LLC ("TADE") completed the purchase of certain assets of an ethanol production facility in Denison, Iowa for a purchase price of $77.4 million. Previously owned by Amaizing Energy Denison LLC and Amaizing Energy Holding Company, LLC, the operations consist of a 55 million gallon annual production capacity ethanol facility with an adjacent 2.7 million bushel grain terminal, with direct access to two Class 1 railroads in Iowa. TADE has been organized to provide investment opportunity for the Company and potential outside investors. The Company owns the grain terminal, manages TADE, and provides grain origination, risk management, and DDG and ethanol marketing services. The Company currently owns a controlling interest of 85% of TADE, and therefore includes TADE's results of operations in its consolidated financial statements. The fair value of the noncontrolling interest in TADE purchased by the minority investor at the acquisition date was $6.1 million.

Congratulations to GERS' 2nd largest customer, ANDE, on a fantastic quarter in a tough environment.

Good Luck To All!$!$!$