MAUMEE,
Ohio, May 7, 2024 /PRNewswire/ -- The
Andersons, Inc. (Nasdaq: ANDE) announces financial results for the
first quarter ended March 31, 2024.
First Quarter Highlights:
- Company reported net income attributable to The Andersons of
$6 million, or $0.16 per diluted share; comparable on an
adjusted basis
- EBITDA was $51 million for the
quarter
- Renewables reported pretax income of $23 million and adjusted pretax income
attributable to The Andersons of $13
million on strong operating performance
- Trade generated adjusted pretax income of $9 million
- Nutrient & Industrial shows good improvement over Q1
2023
"Overall, our first quarter results were fairly comparable to
last year's first quarter. Renewables doubled our 2023 results on
great operating performance in our ethanol plants. We had good
improvement in Nutrient & Industrial's agricultural product
lines. Trade had a tough comparison against last year's record
first quarter but posted an above average Q1 result in generally
quiet ag markets," said President and CEO Pat Bowe. "We are feeling some market
sluggishness, with farmers reluctant to engage in this lower-price
environment and softer global demand for U.S. crops. We are also
seeing a return of carry in the wheat markets and expect an
increase in the wheat storage rates."
"We are actively pursuing opportunities for growth across our
businesses. In Renewables, these opportunities include several
longer-term capital projects to lower the carbon intensity of our
ethanol plants, which are expected to result in positive financial
results under the Inflation Reduction Act. We continue to grow the
volume merchandised by our renewable diesel feedstock team.
Although refinery delays have compressed the current margins, we
expect this to improve as the industry build-out continues. Within
Trade, we have partnered with several large consumer products
companies to source lower-carbon commodities from growers and
expect to continue to develop these capabilities," continued Bowe.
"In Nutrient & Industrial, we recently closed on the
acquisition of Reed and Perrine, a bolt-on acquisition that will
result in geographic expansion of our Turf business. We continue to
manage a very robust pipeline with significant growth opportunities
in each of our businesses. With our well-positioned balance sheet,
we have good capacity for growth."
$ in millions,
except per share
amounts
|
|
|
|
|
Q1
2024
|
Q1
2023
|
Variance
|
Pretax Income
(Loss)
|
$
14.0
|
$
(65.0)
|
$
79.0
|
Pretax Income (Loss)
Attributable to the Company1
|
6.9
|
(20.6)
|
27.5
|
Adjusted Pretax
Income (Loss) Attributable to the Company1
|
6.6
|
8.1
|
(1.5)
|
Trade1
|
8.8
|
23.6
|
(14.8)
|
Renewables1
|
12.6
|
6.3
|
6.3
|
Nutrient &
Industrial
|
(1.9)
|
(10.4)
|
8.5
|
Other
|
(12.9)
|
(11.4)
|
(1.5)
|
Net Income (Loss)
Attributable to the Company
|
5.6
|
(14.8)
|
20.4
|
Adjusted Net Income
Attributable to the Company1
|
5.6
|
6.8
|
(1.2)
|
Diluted Earnings
(Loss) Per Share ("EPS")
|
0.16
|
(0.44)
|
0.60
|
Adjusted
EPS1
|
0.16
|
0.20
|
(0.04)
|
EBITDA1
|
51.4
|
(16.2)
|
67.6
|
Adjusted
EBITDA1
|
$
51.2
|
$
55.3
|
$
(4.1)
|
1
Non-GAAP financial measures; see appendix
for explanations and reconciliations.
|
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate strong cash flows," said
Executive Vice President and CFO Brian
Valentine. "Our first quarter is typically the peak of our
working capital usage cycle. Due to the strong recent cash flows
and lower commodity prices, we continue to show a
higher-than-normal cash position at quarter end and our
$1.5 billion main credit facility
remains undrawn. We remain well below our long-term debt to EBITDA
target of less than 2.5 times and are pleased with the strength of
our balance sheet. We have meaningful capacity for growth and
continue our disciplined approach to evaluating projects that fall
within our stated strategy and meet our required financial
hurdles."
The company used cash from operating activities of $240 million and $334
million in the first quarter of 2024 and 2023, respectively,
and cash from operations before working capital changes in the same
periods was $48 million and
$41 million, respectively. Cash spent
on capital projects in the quarter totaled $27 million, a slight increase from 2023.
First Quarter Segment Overview
Trade Results Lower with Difficult Prior Year
Comparison
The Trade segment recorded pretax income of $6 million and adjusted pretax income of
$9 million for the quarter compared
to pretax income of $39 million and
adjusted pretax income of $24 million
in the first quarter of 2023.
Trade's grain asset locations were relatively consistent
year-over-year as domestic producers are still hesitant to forward
sell due to lower commodity prices combined with limited basis
appreciation to start the year. The merchandising business remained
profitable but could not match a very strong Q1 2023. An oversupply
of commodities have shifted the global supply and demand balance,
moving the market from an inverse to a carry and causing prices to
weaken. While carry markets benefit our assets, reduced volatility
and lower prices reduce opportunities for the merchandising
business. In addition, given recent geopolitical unrest, we have
intentionally and prudently pulled back on activity in certain
regions.
Premium food and feed product lines produced stronger results in
the first quarter, and recent acquisitions and growth capital
investments continue to be accretive to this line of business.
With shifting fundamentals, our mix of assets and merchandising
businesses provide a solid foundation for us to benefit from large
crops and carry markets, with potential improved wheat income
opportunities returning to the market. Our assets are
well-positioned for the grains to flow in due course. Domestic
premium ingredient demand is also expected to stay solid and should
continue to support recent capital growth investments.
Trade's first quarter adjusted EBITDA was $24 million, compared to first quarter 2023
adjusted EBITDA of $44 million.
Renewables Reported Strong Quarter on Record Production and
Favorable Ethanol Margins
The Renewables segment reported pretax income of $23 million and adjusted pretax income
attributable to the company of $13
million in the first quarter. For the same period in 2023,
the segment reported a pretax loss of $83
million and adjusted pretax income attributable to the
company of $6 million.
Ethanol crush margins improved year-over-year, further supported
by favorable hedging positions entered during the fourth quarter.
Production facilities continue to operate efficiently in the
quarter with record production and lower natural gas prices.
Renewable diesel feedstocks volumes continue to grow albeit with
compressed margins on industry fundamentals. Feed ingredient demand
was also improved; however, values declined on lower corn prices.
All four plants have now completed their semi-annual maintenance
shutdowns and are back to running at full capacity. The ethanol
margin environment should remain favorable, especially at the
eastern plants as corn basis in the east remains well below levels
in the west.
Renewables had first quarter adjusted EBITDA of $32 million in 2024, compared to 2023
first quarter adjusted EBITDA of $22
million.
Nutrient & Industrial Ag Businesses Recover on Improved
Volumes and Margin
The Nutrient & Industrial segment reported a pretax
loss of $2 million, compared to a
2023 first quarter pretax loss of $10
million. While the first quarter is a seasonally slow
period, the majority of the improvement was driven by increased
volumes and margins in core agricultural product lines. Total group
volumes were up 12% with an overall increase in margins. Spring
application is delayed in our core geographic areas due to wet and
cold weather. We expect strong demand over the next several weeks
if planting conditions improved and the outlook for the second
quarter remains solid.
Nutrient & Industrial's first quarter EBITDA was
$7 million compared to 2023
first quarter EBITDA of $(1)
million.
Income Taxes; Corporate
The company recorded income tax expense at an effective rate of
9% for the quarter due to the tax treatment of non-controlling
interests. We anticipate a full-year adjusted effective rate of
approximately 18% - 22%.
Conference Call
The company will host a webcast on Wednesday, May 8, 2024, at 11 a.m. Eastern Time, to discuss its performance
and provide its outlook for the remainder of 2024. To access the
call, please dial 888-317-6003 or 412-317-6061 (elite entry number
is 6704269). It is recommended that you call 10 minutes before
the conference call begins.
To access the webcast, click on the link:
https://app.webinar.net/jL4XbozdKGx and submit the requested
information as directed. A replay of the call can also be accessed
under the heading "Investors" on the company's website at
www.andersonsinc.com.
Forward-Looking Statements
This release contains forward-looking statements. These
statements involve risks and uncertainties that could cause actual
results to differ materially. Without limitation, these risks
include economic, weather and regulatory conditions, competition,
geopolitical risk, and the risk factors set forth from time to time
in the company's filings with the Securities and Exchange
Commission. 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 correct.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company
believes that pretax income (loss) attributable to the company;
adjusted pretax income (loss) attributable to the company; adjusted
pretax income (loss); adjusted net income attributable to the
company; adjusted diluted earnings per share; earnings before
interest, taxes, depreciation, and amortization (or EBITDA);
adjusted EBITDA; and cash from operations before working capital
changes provide additional information to investors and others
about its operations, allowing an evaluation of underlying
operating performance and liquidity and better period-to-period
comparability. The above measures are not and should not be
considered as alternatives to pretax income (loss) or income (loss)
before income taxes, net income (loss), diluted earnings (loss) per
share attributable to The Andersons, Inc. common shareholders and
cash provided by (used in) operating activities as determined by
generally accepted accounting principles. Reconciliations of the
GAAP to non-GAAP measures may be found within this press release
and the financial tables provided herein.
Company Description
The Andersons, Inc., named for 2024 to Forbes list of America's
Most Successful Small Companies, Newsweek's list of America's Most
Responsible Companies, and one of The Americas' Fastest Growing
Companies by the Financial Times, is a diversified company rooted
in agriculture that conducts business in the commodity
merchandising, renewables, and plant nutrient sectors. Guided by
its Statement of Principles, The Andersons is committed to
providing extraordinary service to its customers, helping its
employees improve, supporting its communities, and increasing the
value of the company. For more information, please visit
www.andersonsinc.com.
The Andersons,
Inc.
Condensed
Consolidated Statements of Operations
(unaudited)
|
|
|
Three months ended
March 31,
|
(in thousands, except
per share data)
|
2024
|
|
2023
|
Sales and merchandising
revenues
|
$
2,718,217
|
|
$ 3,881,238
|
Cost of sales and
merchandising revenues
|
2,589,897
|
|
3,733,227
|
Gross profit
|
128,320
|
|
148,011
|
Operating,
administrative and general expenses
|
119,358
|
|
117,235
|
Asset
impairment
|
—
|
|
87,156
|
Interest expense,
net
|
6,522
|
|
16,625
|
Other income,
net
|
11,528
|
|
8,004
|
Income (loss) before
income taxes
|
13,968
|
|
(65,001)
|
Income tax provision
(benefit)
|
1,303
|
|
(5,884)
|
Net income
(loss)
|
12,665
|
|
(59,117)
|
Net income (loss)
attributable to noncontrolling interests
|
7,084
|
|
(44,367)
|
Net income (loss)
attributable to The Andersons, Inc.
|
$
5,581
|
|
$ (14,750)
|
|
|
|
|
Earnings (loss) per
share attributable to The Andersons, Inc. common
shareholders:
|
|
|
|
Basic earnings
(loss):
|
$
0.16
|
|
$
(0.44)
|
Diluted earnings
(loss):
|
$
0.16
|
|
$
(0.44)
|
The Andersons,
Inc.
Condensed
Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
283,902
|
|
$
643,854
|
|
$
70,853
|
Accounts
receivable, net
|
701,706
|
|
762,549
|
|
1,125,071
|
Inventories
|
994,543
|
|
1,166,700
|
|
1,551,101
|
Commodity
derivative assets – current
|
178,623
|
|
178,083
|
|
222,036
|
Other current
assets
|
55,134
|
|
55,777
|
|
81,407
|
Total current
assets
|
2,213,908
|
|
2,806,963
|
|
3,050,468
|
Other
assets:
|
|
|
|
|
|
Goodwill
|
127,856
|
|
127,856
|
|
129,342
|
Other intangible
assets, net
|
80,527
|
|
85,579
|
|
95,134
|
Right of use assets,
net
|
52,541
|
|
54,234
|
|
59,209
|
Other assets,
net
|
97,128
|
|
87,010
|
|
89,174
|
Total other
assets
|
358,052
|
|
354,679
|
|
372,859
|
Property, plant and
equipment, net
|
689,113
|
|
693,365
|
|
678,717
|
Total assets
|
$
3,261,073
|
|
$
3,855,007
|
|
$
4,102,044
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
10,148
|
|
$
43,106
|
|
$
638,210
|
Trade and other
payables
|
625,836
|
|
1,055,473
|
|
768,872
|
Customer
prepayments and deferred revenue
|
174,651
|
|
187,054
|
|
309,546
|
Commodity
derivative liabilities – current
|
67,079
|
|
90,849
|
|
107,983
|
Current
maturities of long-term debt
|
27,617
|
|
27,561
|
|
85,567
|
Accrued expenses
and other current liabilities
|
177,953
|
|
232,288
|
|
202,133
|
Total current
liabilities
|
1,083,284
|
|
1,636,331
|
|
2,112,311
|
Long-term lease
liabilities
|
31,223
|
|
31,659
|
|
35,727
|
Long-term debt, less
current maturities
|
556,174
|
|
562,960
|
|
486,892
|
Deferred income
taxes
|
59,149
|
|
58,581
|
|
54,391
|
Other long-term
liabilities
|
55,593
|
|
49,089
|
|
66,311
|
Total
liabilities
|
1,785,423
|
|
2,338,620
|
|
2,755,632
|
Total equity
|
1,475,650
|
|
1,516,387
|
|
1,346,412
|
Total liabilities and
equity
|
$
3,261,073
|
|
$
3,855,007
|
|
$
4,102,044
|
The Andersons,
Inc.
Consolidated
Statements of Cash Flows
(unaudited)
|
|
|
Three months ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
12,665
|
|
$
(59,117)
|
Adjustments to
reconcile net income (loss) to cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
30,949
|
|
32,220
|
Asset
impairment
|
—
|
|
87,156
|
Other
|
4,795
|
|
(2,230)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
57,725
|
|
125,113
|
Inventories
|
169,083
|
|
178,010
|
Commodity
derivatives
|
(28,498)
|
|
83,148
|
Other current and
non-current assets
|
1,923
|
|
(17,543)
|
Payables and other
current and non-current liabilities
|
(488,269)
|
|
(760,292)
|
Net cash used in
operating activities
|
(239,627)
|
|
(333,535)
|
Investing
Activities
|
|
|
|
Purchases of property,
plant and equipment and capitalized software
|
(26,775)
|
|
(25,470)
|
Proceeds from sale of
Rail assets
|
—
|
|
2,871
|
Other
|
4,723
|
|
2,792
|
Net cash used in
investing activities
|
(22,052)
|
|
(19,807)
|
Financing
Activities
|
|
|
|
Net (payments) receipts
under short-term lines of credit
|
(31,913)
|
|
363,619
|
Payments of long-term
debt
|
(6,870)
|
|
(30,251)
|
Distributions to
noncontrolling interest owner
|
(44,910)
|
|
(9,980)
|
Dividends
paid
|
(6,516)
|
|
(6,279)
|
Value of shares
withheld for taxes
|
(8,071)
|
|
(6,616)
|
Other
|
—
|
|
(1,676)
|
Net cash (used in)
provided by financing activities
|
(98,280)
|
|
308,817
|
Effect of exchange
rates on cash and cash equivalents
|
7
|
|
109
|
Decrease in cash and
cash equivalents
|
(359,952)
|
|
(44,416)
|
Cash and cash
equivalents at beginning of period
|
643,854
|
|
115,269
|
Cash and cash
equivalents at end of period
|
$
283,902
|
|
$
70,853
|
The Andersons,
Inc.
Adjusted Net Income
Attributable to The Andersons, Inc.
A non-GAAP financial
measure
(unaudited)
|
|
|
Three months ended
March 31,
|
(in thousands, except
per share data)
|
2024
|
|
2023
|
Net income
(loss)
|
$
12,665
|
|
$ (59,117)
|
Net income (loss)
attributable to noncontrolling interests
|
7,084
|
|
(44,367)
|
Net income (loss)
attributable to The Andersons, Inc.
|
5,581
|
|
(14,750)
|
Adjustments:
|
|
|
|
Transaction related
compensation
|
2,852
|
|
1,668
|
Gain on
deconsolidation of joint venture
|
(3,117)
|
|
—
|
Insured inventory
recoveries
|
—
|
|
(17,390)
|
Asset
impairment
|
—
|
|
44,450
|
Income tax impact of
adjustments1
|
279
|
|
(7,182)
|
Total adjusting items,
net of tax
|
14
|
|
21,546
|
Adjusted net income
attributable to The Andersons, Inc.
|
$
5,595
|
|
$
6,796
|
|
|
|
|
Diluted earnings (loss)
per share attributable to The Andersons, Inc. common
shareholders
|
$
0.16
|
|
$
(0.44)
|
|
|
|
|
Impact on diluted
earnings (loss) per share
|
$
—
|
|
$
0.64
|
Adjusted diluted
earnings per share
|
$
0.16
|
|
$
0.20
|
|
|
|
|
1 The income
tax impact of adjustments is taken at the statutory tax rate of 25%
with the exception of certain transaction related compensation in
both 2024 and 2023, respectively.
Adjusted net income
(loss) attributable to The Andersons, Inc. reflects reported
net income (loss) available to The Andersons, Inc. common
shareholders after the removal of specified items described above.
Adjusted diluted earnings (loss) per share reflects the fully
diluted EPS of The Andersons, Inc. after removal of the effect on
EPS as reported of specified items described above. Management
believes that Adjusted net income (loss) attributable to The
Andersons, Inc. and Adjusted diluted earnings (loss) per share are
useful measures of The Andersons, Inc. performance as they provide
investors additional information about the operations of the
company allowing better evaluation of underlying business
performance and better comparability to previous periods. These
non-GAAP financial measures are not intended to replace or be
alternatives to Net income attributable to The Andersons, Inc. and
Diluted earnings per share attributable to The Andersons, Inc.
common shareholders as reported, the most directly comparable GAAP
financial measures, or any other measures of operating results
under GAAP. Earnings amounts described above have been divided by
the company's average number of diluted shares outstanding for each
respective period in order to arrive at an adjusted diluted
earnings (loss) per share amount for each specified
item.
|
The Andersons,
Inc.
Segment
Data
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
March 31, 2024
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
1,893,859
|
|
$
657,039
|
|
$
167,319
|
|
$
—
|
|
$
2,718,217
|
Gross profit
|
78,282
|
|
26,570
|
|
23,468
|
|
—
|
|
128,320
|
Operating,
administrative and general expenses
|
72,258
|
|
7,997
|
|
25,443
|
|
13,660
|
|
119,358
|
Other income,
net
|
5,533
|
|
4,750
|
|
1,048
|
|
197
|
|
11,528
|
Income (loss) before
income taxes
|
5,924
|
|
22,791
|
|
(1,850)
|
|
(12,897)
|
|
13,968
|
Income attributable to
noncontrolling interests
|
—
|
|
7,084
|
|
—
|
|
—
|
|
7,084
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
5,924
|
|
$
15,707
|
|
$
(1,850)
|
|
$
(12,897)
|
|
$
6,884
|
Adjustments to income
(loss) before income taxes2
|
2,852
|
|
(3,117)
|
|
—
|
|
—
|
|
(265)
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
8,776
|
|
$
12,590
|
|
$
(1,850)
|
|
$
(12,897)
|
|
$
6,619
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
2,877,780
|
|
$
839,516
|
|
$
163,942
|
|
$
—
|
|
$
3,881,238
|
Gross profit
|
117,178
|
|
15,803
|
|
15,030
|
|
—
|
|
148,011
|
Operating,
administrative and general expenses
|
71,980
|
|
8,904
|
|
24,132
|
|
12,219
|
|
117,235
|
Other income,
net
|
5,983
|
|
841
|
|
846
|
|
334
|
|
8,004
|
Income (loss) before
income taxes
|
39,364
|
|
(82,513)
|
|
(10,438)
|
|
(11,414)
|
|
(65,001)
|
Loss attributable to
noncontrolling interests
|
—
|
|
(44,367)
|
|
—
|
|
—
|
|
(44,367)
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
39,364
|
|
$
(38,146)
|
|
$
(10,438)
|
|
$
(11,414)
|
|
$ (20,634)
|
Adjustments to income
(loss) before income taxes2
|
(15,722)
|
|
44,450
|
|
—
|
|
—
|
|
28,728
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
23,642
|
|
$
6,304
|
|
$
(10,438)
|
|
$
(11,414)
|
|
$
8,094
|
|
1
Income (loss) before income taxes
attributable to The Andersons, Inc. for each operating segment is
defined as net sales and merchandising revenues plus identifiable
other income less all identifiable operating expenses, including
interest expense for carrying working capital and long-term assets
and is reported net of the noncontrolling interest share of
income.
2
Additional information on the individual
adjustments that are included in the adjustments to income (loss)
before income taxes can be found in the Reconciliation to EBITDA
and Adjusted EBITDA table. All adjustments are consistent with the
EBITDA reconciliation with the exception of a $42.7 million
difference in the Renewables segment which represents the asset
impairment expense attributable to the non-controlling interest
that is reflected in Income attributable to the noncontrolling
interest within the reconciliation above.
|
The Andersons,
Inc.
Adjusted Earnings
Before Interest, Taxes, Depreciation, and Amortization
(EBITDA)
A non-GAAP financial
measure
(unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
March 31, 2024
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
5,924
|
|
$
22,791
|
|
$
(1,850)
|
|
$
(14,200)
|
|
$
12,665
|
Interest expense
(income)
|
5,633
|
|
532
|
|
923
|
|
(566)
|
|
6,522
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
1,303
|
|
1,303
|
Depreciation and
amortization
|
9,255
|
|
11,965
|
|
7,793
|
|
1,936
|
|
30,949
|
EBITDA
|
20,812
|
|
35,288
|
|
6,866
|
|
(11,527)
|
|
51,439
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
2,852
|
|
—
|
|
—
|
|
—
|
|
2,852
|
Gain on
deconsolidation of joint venture
|
—
|
|
(3,117)
|
|
—
|
|
—
|
|
(3,117)
|
Total adjusting
items
|
2,852
|
|
(3,117)
|
|
—
|
|
—
|
|
(265)
|
Adjusted
EBITDA
|
$
23,664
|
|
$
32,171
|
|
$
6,866
|
|
$
(11,527)
|
|
$
51,174
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
39,364
|
|
$
(82,513)
|
|
$
(10,438)
|
|
$
(5,530)
|
|
$
(59,117)
|
Interest expense
(income)
|
11,817
|
|
3,097
|
|
2,182
|
|
(471)
|
|
16,625
|
Tax benefit
|
—
|
|
—
|
|
—
|
|
(5,884)
|
|
(5,884)
|
Depreciation and
amortization
|
8,645
|
|
14,472
|
|
6,957
|
|
2,146
|
|
32,220
|
EBITDA
|
59,826
|
|
(64,944)
|
|
(1,299)
|
|
(9,739)
|
|
(16,156)
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
1,668
|
|
—
|
|
—
|
|
—
|
|
1,668
|
Insured inventory
recoveries
|
(17,390)
|
|
—
|
|
—
|
|
—
|
|
(17,390)
|
Asset
impairment
|
—
|
|
87,156
|
|
—
|
|
—
|
|
87,156
|
Total adjusting
items
|
(15,722)
|
|
87,156
|
|
—
|
|
—
|
|
71,434
|
Adjusted
EBITDA
|
$
44,104
|
|
$
22,212
|
|
$
(1,299)
|
|
$
(9,739)
|
|
$
55,278
|
Adjusted EBITDA is
defined as earnings before interest, taxes and depreciation and
amortization, adjusted for specified items. The company calculates
adjusted EBITDA by removing the impact of specified items and
adding back the amounts of interest expense, tax expense and
depreciation and amortization to net income (loss). Management
believes that adjusted EBITDA is a useful measure of the company's
performance as it provides investors additional information about
the company's operations allowing better evaluation of underlying
business performance and improved comparability to prior periods.
Adjusted EBITDA is a non-GAAP financial measure and is not intended
to replace or be an alternative to net income (loss), the most
directly comparable GAAP financial measure.
|
The Andersons,
Inc.
Trailing Twelve
Months of EBITDA and Adjusted EBITDA
A non-GAAP financial
measure
(unaudited)
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
March 31, 2024
|
(in
thousands)
|
June 30,
2023
|
|
September 30,
2023
|
|
December 31,
2023
|
|
March 31,
2024
|
|
Net income
|
$
82,686
|
|
$
30,523
|
|
$
78,437
|
|
$
12,665
|
|
$
204,311
|
Interest
expense
|
13,953
|
|
8,188
|
|
8,101
|
|
6,522
|
|
36,764
|
Tax
provision
|
21,732
|
|
7,862
|
|
13,324
|
|
1,303
|
|
44,221
|
Depreciation and
amortization
|
30,365
|
|
31,215
|
|
31,306
|
|
30,949
|
|
123,835
|
EBITDA
|
148,736
|
|
77,788
|
|
131,168
|
|
51,439
|
|
409,131
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
939
|
|
1,999
|
|
3,212
|
|
2,852
|
|
9,002
|
Gain on sale of
assets
|
—
|
|
(5,643)
|
|
—
|
|
—
|
|
(5,643)
|
Gain on cost method
investment
|
—
|
|
(4,798)
|
|
—
|
|
—
|
|
(4,798)
|
Impairment on equity
method investments
|
—
|
|
963
|
|
—
|
|
—
|
|
963
|
Insured inventory
expenses
|
1,310
|
|
—
|
|
—
|
|
—
|
|
1,310
|
Gain on
deconsolidation of joint venture
|
(6,544)
|
|
—
|
|
—
|
|
(3,117)
|
|
(9,661)
|
Goodwill
impairment
|
—
|
|
—
|
|
686
|
|
—
|
|
686
|
Total adjusting
items
|
(4,295)
|
|
(7,479)
|
|
3,898
|
|
(265)
|
|
(8,141)
|
Adjusted
EBITDA
|
$
144,441
|
|
$
70,309
|
|
$
135,066
|
|
$
51,174
|
|
$
400,990
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
March 31, 2023
|
|
June 30,
2022
|
|
September 30,
2022
|
|
December 31,
2022
|
|
March 31,
2023
|
|
Net income
(loss)
|
$
102,400
|
|
$
24,880
|
|
$
21,170
|
|
$
(59,117)
|
|
$
89,333
|
Interest
expense
|
16,921
|
|
14,982
|
|
14,087
|
|
16,625
|
|
62,615
|
Tax provision
(benefit)
|
15,753
|
|
9,839
|
|
9,933
|
|
(5,884)
|
|
29,641
|
Depreciation and
amortization
|
33,567
|
|
33,322
|
|
33,476
|
|
32,220
|
|
132,585
|
EBITDA
|
168,641
|
|
83,023
|
|
78,666
|
|
(16,156)
|
|
314,174
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Insured inventory
expenses (recoveries)
|
—
|
|
—
|
|
15,993
|
|
(17,390)
|
|
(1,397)
|
Transaction related
compensation
|
—
|
|
—
|
|
—
|
|
1,668
|
|
1,668
|
Asset impairment
including equity method investments
|
4,455
|
|
—
|
|
9,000
|
|
87,156
|
|
100,611
|
Gain on sale of frac
sand assets
|
(3,762)
|
|
—
|
|
—
|
|
—
|
|
(3,762)
|
Total adjusting
items
|
693
|
|
—
|
|
24,993
|
|
71,434
|
|
97,120
|
Adjusted
EBITDA
|
$
169,334
|
|
$
83,023
|
|
$
103,659
|
|
$
55,278
|
|
$
411,294
|
|
|
|
|
|
|
|
|
|
|
The Andersons,
Inc.
Cash from Operations
Before Working Capital Changes
A non-GAAP financial
measure
(unaudited)
|
|
|
Three months ended
March 31,
|
(in
thousands)
|
2024
|
|
2023
|
Cash used in operating
activities
|
$
(239,627)
|
|
$
(333,535)
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
57,725
|
|
125,113
|
Inventories
|
169,083
|
|
178,010
|
Commodity
derivatives
|
(28,498)
|
|
83,148
|
Other current and
non-current assets
|
1,923
|
|
(17,543)
|
Payables and other
current and non-current liabilities
|
(488,269)
|
|
(760,292)
|
Total changes in
operating assets and liabilities
|
(288,036)
|
|
(391,564)
|
Adjusting items
impacting cash from operations before working capital
changes:
|
|
|
|
Less: Insured
inventory recoveries
|
—
|
|
(17,390)
|
Cash from operations
before working capital changes
|
$
48,409
|
|
$
40,639
|
|
Cash from operations
before working capital changes is defined as cash provided by (used
in) operating activities before the impact of changes in working
capital within the statement of cash flows. The Company calculates
cash from operations by eliminating the effect of changes in
accounts receivable, inventories, commodity derivatives, other
assets, and payables and accrued expenses from the cash provided by
(used in) operating activities. Management believes that cash from
operations before working capital changes is a useful measure of
the company's performance as it provides investors additional
information about the company's operations allowing better
evaluation of underlying business performance and improved
comparability to prior periods. Cash from operations before working
capital changes is a non-GAAP financial measure and is not intended
to replace or be an alternative to cash provided by (used in)
operating activities, the most directly comparable GAAP financial
measure.
|
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SOURCE The Andersons, Inc.