MAUMEE,
Ohio, Aug. 6, 2024 /PRNewswire/ -- The
Andersons, Inc. (Nasdaq: ANDE) announces financial results for the
second quarter ended June 30, 2024.
Second Quarter Highlights:
- Company reported net income attributable to The Andersons of
$36 million, or $1.05 per diluted share and adjusted net income
of $39 million, or $1.15 per diluted share
- Adjusted EBITDA was $98
million for the quarter
- Renewables reported pretax income of $39 million and adjusted pretax income
attributable to The Andersons of $23
million on strong operating performance and ethanol
margins
- Trade generated increased pretax income of $5 million and adjusted pretax income of
$9 million
- Nutrient & Industrial delivers pretax income of
$23 million
"Overall, our second quarter results were consistent with our
expectations given the shift in ag markets over the past several
months. Renewables had a very solid quarter with increased ethanol
production and higher margins but didn't match last year's results
on declining co-product values. Trade results were slightly
improved from last year despite lower prices and volatility. With
the majority of fertilizer applications occurring in the second
quarter, Nutrient & Industrial had solid results although well
behind last year's outsized performance given weather-related
delays and lower margins," said Chairman and CEO Pat Bowe. "Farmer selling remains relatively
quiet with adequate supply in this low-price commodity environment.
We are seeing the benefits of our portfolio mix with grain assets
and our growing premium ingredients business helping to offset a
reduction in merchandising opportunities."
"We actively pursue opportunities for growth. In early June, we
announced plans to acquire an ownership interest in Skyland Grain
LLC, which holds a large grain and agronomy footprint spread across
Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles. We are devoting
significant resources to this opportunity and expect to provide an
update later in the third quarter," continued Bowe. "Our
longer-term Renewables projects are moving forward, and we are
focused on lowering the carbon intensity of our ethanol plants. We
continue to manage a robust pipeline with meaningful growth
opportunities in each of our businesses."
|
$ in millions,
except per share
amounts
|
|
|
|
|
Q2
2024
|
Q2
2023
|
Variance
|
YTD
2024
|
YTD
2023
|
Variance
|
|
Pretax
Income
|
$
57.3
|
$
104.4
|
$
(47.1)
|
$
71.3
|
$
39.4
|
$
31.9
|
|
Pretax Income
Attributable to the Company1
|
40.9
|
76.8
|
(35.9)
|
47.7
|
56.1
|
(8.4)
|
|
Adjusted Pretax
Income Attributable to the Company1
|
44.9
|
72.5
|
(27.6)
|
51.5
|
80.6
|
(29.1)
|
|
Trade1
|
9.5
|
7.2
|
2.3
|
18.2
|
30.9
|
(12.7)
|
|
Renewables1
|
22.7
|
32.4
|
(9.7)
|
35.3
|
38.7
|
(3.4)
|
|
Nutrient &
Industrial
|
23.4
|
42.6
|
(19.2)
|
21.6
|
32.1
|
(10.5)
|
|
Other
|
(10.7)
|
(9.7)
|
(1.0)
|
(23.6)
|
(21.2)
|
(2.4)
|
|
Net Income
Attributable to the Company
|
36.0
|
55.0
|
(19.0)
|
41.6
|
40.3
|
1.3
|
|
Adjusted Net Income
Attributable to the Company1
|
39.5
|
51.8
|
(12.3)
|
45.1
|
58.6
|
(13.5)
|
|
Diluted Earnings Per
Share ("EPS")
|
1.05
|
1.61
|
(0.56)
|
1.21
|
1.18
|
0.03
|
|
Adjusted
EPS1
|
1.15
|
1.52
|
(0.37)
|
1.31
|
1.72
|
(0.41)
|
|
EBITDA1
|
94.2
|
148.7
|
(54.5)
|
145.7
|
132.6
|
13.1
|
|
Adjusted EBITDA from
Continuing Operations1
|
$
98.3
|
$
144.4
|
$
(46.1)
|
$
149.4
|
$
199.7
|
$
(50.3)
|
|
1 Non-GAAP
financial measures; see appendix for explanations and
reconciliations.
|
Cash, Liquidity, and Long-Term Debt Management
"Our businesses generate consistent cash flows and we've
continued to reduce debt," said Executive Vice President and CFO
Brian Valentine. "With the strong
cash flows and lower commodity prices, we continue to show a
higher-than-normal cash position at this point in the year. 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 expect to invest in additional growth projects utilizing a
disciplined approach to ensure that projects align with our stated
strategy and meet appropriate financial hurdles."
The company generated cash from operating activities of
$304 million and $541 million in the second quarter of 2024 and
2023, respectively. Cash from operations before working capital
changes in the same periods was $89
million and $118 million,
respectively. Cash spent on capital projects in the quarter totaled
$29 million, a
$21 million decrease from 2023. We do have several larger
projects planned for the last half of the year.
Second Quarter Segment Overview
Trade Results Resilient in Less Volatile Markets
The Trade segment recorded pretax income of $5 million and adjusted pretax income of
$9 million for the quarter compared
to pretax income of $5
million and adjusted pretax income of $7 million in the second quarter of 2023.
Results from our grain asset footprint were better than the
prior year, due to improved wheat storage income in the eastern
grain belt. Trade's growing premium food and feed ingredients
business also showed year-over-year improvement, driven by the
addition of ACJ International, acquired in July 2023, and other recent growth capital
investments. The merchandising business remained profitable but
below 2023. Commodity markets are currently well-supplied with
limited volatility. Farmer engagement remains slow due to overall
market prices. While these carry markets benefit our assets,
reduced volatility and lower prices limit opportunities for the
merchandising business.
Our portfolio mix of assets, ingredients, and merchandising
businesses provide a solid foundation for us to benefit from large
crops and carry markets, as well as tight, demand-driven markets.
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 second quarter adjusted EBITDA was $24 million, compared to second quarter 2023
adjusted EBITDA of $27 million.
Renewables Reported Strong Quarter on Record Production and
Favorable Ethanol Margins
The Renewables segment reported pretax income of $39 million and adjusted pretax income
attributable to the company of $23
million in the second quarter. For the same period in 2023,
the segment reported a pretax income of $67
million and adjusted pretax income attributable to the
company of $32 million.
Margins on ethanol production improved year-over-year on lower
corn basis in the east. Production facilities continued to operate
efficiently in the quarter with increased volume and higher ethanol
yields. Plant co-product values, particularly feed ingredients,
were lower with feed ingredients following the overall price
reduction of corn; however, feed ingredient demand improved
year-over-year. Renewable diesel feedstock volumes continue to grow
albeit with compressed margins on industry fundamentals. With a
continued strong export environment, the ethanol margin environment
should remain favorable.
Renewables had second quarter EBITDA of $52 million in 2024, compared to 2023
second quarter adjusted EBITDA of $74
million.
Nutrient & Industrial Ag Businesses Decline on Lower
Prices and Delayed Application Season
The Nutrient & Industrial segment reported pretax
income of $23 million, compared to a
very strong 2023 second quarter pretax income of $43 million. Volumes were negatively impacted by
a late and wet spring application season in our market areas and
declining nutrient prices did not provide outsized margin
opportunities we've seen in prior years. Also impacting the
year-over-year comparison was a 2023 second quarter that had a
significant shift of income from Q1 into Q2. The engineered
granules business saw improvement in the quarter on higher sales
volume. Looking forward, second half agronomy sales and
applications are dependent on the timing of harvest and grower's
overall profitability.
Nutrient & Industrial's second quarter EBITDA was
$32 million compared to 2023
second quarter EBITDA of $52
million.
Income Taxes; Corporate
The company recorded income tax expense at an effective rate of
9% for the quarter. This rate was impacted by the tax treatment of
non-controlling interests, reversals of uncertain tax positions
relating to research and development and other tax credits. We
currently anticipate a full-year adjusted effective rate of
approximately 14% - 18%.
Conference Call
The company will host a webcast on Wednesday, August 7, 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 8135247). 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/JnmRj0k6l9G 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 nutrient & industrial 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
June 30,
|
|
Six months ended
June 30,
|
|
(in thousands, except
per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales and merchandising
revenues
|
$
2,795,205
|
|
$
4,020,183
|
|
$
5,513,422
|
|
$
7,901,421
|
|
Cost of sales and
merchandising revenues
|
2,619,834
|
|
3,798,246
|
|
5,209,731
|
|
7,531,473
|
|
Gross profit
|
175,371
|
|
221,937
|
|
303,691
|
|
369,948
|
|
Operating,
administrative and general expenses
|
116,614
|
|
116,007
|
|
235,972
|
|
233,242
|
|
Asset
impairment
|
—
|
|
—
|
|
—
|
|
87,156
|
|
Interest expense,
net
|
6,611
|
|
13,953
|
|
13,133
|
|
30,578
|
|
Other income,
net
|
5,200
|
|
12,441
|
|
16,728
|
|
20,445
|
|
Income before income
taxes
|
57,346
|
|
104,418
|
|
71,314
|
|
39,417
|
|
Income tax
provision
|
4,876
|
|
21,732
|
|
6,179
|
|
15,848
|
|
Net income
|
52,470
|
|
82,686
|
|
65,135
|
|
23,569
|
|
Net income (loss)
attributable to noncontrolling interests
|
16,494
|
|
27,640
|
|
23,578
|
|
(16,727)
|
|
Net income attributable
to The Andersons, Inc.
|
$ 35,976
|
|
$ 55,046
|
|
$ 41,557
|
|
$
40,296
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to The Andersons, Inc. common shareholders:
|
|
|
|
|
|
|
|
|
Basic
earnings:
|
$
1.06
|
|
$
1.63
|
|
$
1.22
|
|
$
1.20
|
|
Diluted
earnings:
|
$
1.05
|
|
$
1.61
|
|
$
1.21
|
|
$
1.18
|
|
The Andersons,
Inc.
Condensed
Consolidated Balance Sheets
(unaudited)
|
|
|
(in
thousands)
|
June
30, 2024
|
|
December 31,
2023
|
|
June 30,
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
530,386
|
|
$
643,854
|
|
$
96,293
|
|
Accounts
receivable, net
|
743,550
|
|
762,549
|
|
1,030,271
|
|
Inventories
|
686,540
|
|
1,166,700
|
|
990,789
|
|
Commodity
derivative assets – current
|
180,189
|
|
178,083
|
|
347,684
|
|
Other current
assets
|
108,634
|
|
55,777
|
|
72,228
|
|
Total current
assets
|
2,249,299
|
|
2,806,963
|
|
2,537,265
|
|
Property, plant and
equipment, net
|
694,136
|
|
693,365
|
|
663,441
|
|
Other assets,
net
|
356,378
|
|
354,679
|
|
369,340
|
|
Total assets
|
$
3,299,813
|
|
$
3,855,007
|
|
$
3,570,046
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
debt
|
$
4,021
|
|
$
43,106
|
|
$
102,752
|
|
Trade and other
payables
|
607,083
|
|
1,055,473
|
|
641,376
|
|
Customer
prepayments and deferred revenue
|
124,424
|
|
187,054
|
|
189,947
|
|
Commodity
derivative liabilities – current
|
128,847
|
|
90,849
|
|
251,101
|
|
Current
maturities of long-term debt
|
27,671
|
|
27,561
|
|
27,511
|
|
Accrued expenses
and other current liabilities
|
192,683
|
|
232,288
|
|
180,552
|
|
Total current
liabilities
|
1,084,729
|
|
1,636,331
|
|
1,393,239
|
|
Long-term debt, less
current maturities
|
549,378
|
|
562,960
|
|
576,489
|
|
Other long-term
liabilities
|
145,444
|
|
139,329
|
|
161,836
|
|
Total
liabilities
|
1,779,551
|
|
2,338,620
|
|
2,131,564
|
|
Total equity
|
1,520,262
|
|
1,516,387
|
|
1,438,482
|
|
Total liabilities and
equity
|
$
3,299,813
|
|
$
3,855,007
|
|
$
3,570,046
|
|
The Andersons,
Inc.
Condensed
Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Six months ended
June 30,
|
|
(in
thousands)
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
Net income
|
$
65,135
|
|
$
23,569
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
61,218
|
|
62,585
|
|
Asset
impairment
|
—
|
|
87,156
|
|
Other
|
10,821
|
|
952
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
15,284
|
|
207,867
|
|
Inventories
|
477,723
|
|
734,855
|
|
Commodity
derivatives
|
36,010
|
|
102,753
|
|
Other current and
non-current assets
|
(50,587)
|
|
(1,247)
|
|
Payables and other
current and non-current liabilities
|
(550,797)
|
|
(1,011,086)
|
|
Net cash provided by
operating activities
|
64,807
|
|
207,404
|
|
Investing
Activities
|
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(9,561)
|
|
—
|
|
Purchases of property,
plant and equipment and capitalized software
|
(55,389)
|
|
(74,991)
|
|
Other
|
6,812
|
|
3,318
|
|
Net cash used in
investing activities
|
(58,138)
|
|
(71,673)
|
|
Financing
Activities
|
|
|
|
|
Net payments under
short-term lines of credit
|
(37,705)
|
|
(173,384)
|
|
Proceeds from issuance
of long-term debt
|
—
|
|
100,000
|
|
Payments of long-term
debt
|
(13,752)
|
|
(35,861)
|
|
Distributions to
noncontrolling interest owner
|
(47,405)
|
|
(24,344)
|
|
Dividends
paid
|
(12,993)
|
|
(12,527)
|
|
Value of shares
withheld for taxes
|
(8,071)
|
|
(6,616)
|
|
Other
|
—
|
|
(2,255)
|
|
Net cash used in
financing activities
|
(119,926)
|
|
(154,987)
|
|
Effect of exchange
rates on cash and cash equivalents
|
(211)
|
|
280
|
|
Decrease in cash and
cash equivalents
|
(113,468)
|
|
(18,976)
|
|
Cash and cash
equivalents at beginning of period
|
643,854
|
|
115,269
|
|
Cash and cash
equivalents at end of period
|
$
530,386
|
|
$
96,293
|
|
The Andersons,
Inc.
Adjusted Net Income
Attributable to The Andersons, Inc.
A non-GAAP financial
measure
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
(in thousands, except
per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
52,470
|
|
$
82,686
|
|
$
65,135
|
|
$
23,569
|
|
Net income (loss)
attributable to noncontrolling interests
|
16,494
|
|
27,640
|
|
23,578
|
|
(16,727)
|
|
Net income attributable
to The Andersons, Inc.
|
35,976
|
|
55,046
|
|
41,557
|
|
40,296
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
4,049
|
|
939
|
|
6,900
|
|
2,607
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
(3,117)
|
|
(6,544)
|
|
Insured inventory
expenses (recoveries)
|
—
|
|
1,310
|
|
—
|
|
(16,080)
|
|
Asset
impairment
|
—
|
|
—
|
|
—
|
|
44,450
|
|
Income tax impact of
adjustments1
|
(531)
|
|
1,074
|
|
(252)
|
|
(6,108)
|
|
Total adjusting items,
net of tax
|
3,518
|
|
(3,221)
|
|
3,531
|
|
18,325
|
|
Adjusted net income
attributable to The Andersons, Inc.
|
$
39,494
|
|
$
51,825
|
|
$
45,088
|
|
$
58,621
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to The Andersons, Inc. common
shareholders
|
$
1.05
|
|
$
1.61
|
|
$
1.21
|
|
$
1.18
|
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share
|
$
0.10
|
|
$ (0.09)
|
|
$
0.10
|
|
$
0.54
|
|
Adjusted diluted
earnings per share
|
$
1.15
|
|
$
1.52
|
|
$
1.31
|
|
$
1.72
|
|
|
|
|
|
|
|
|
|
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
June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
1,757,741
|
|
$
686,127
|
|
$
351,337
|
|
$
—
|
|
$
2,795,205
|
|
Gross profit
|
79,648
|
|
46,727
|
|
48,996
|
|
—
|
|
175,371
|
|
Operating,
administrative and general expenses
|
72,803
|
|
7,756
|
|
25,393
|
|
10,662
|
|
116,614
|
|
Other income (loss),
net
|
4,033
|
|
1,176
|
|
509
|
|
(518)
|
|
5,200
|
|
Income (loss) before
income taxes
|
5,424
|
|
39,200
|
|
23,419
|
|
(10,697)
|
|
57,346
|
|
Income attributable to
noncontrolling interests
|
—
|
|
16,494
|
|
—
|
|
—
|
|
16,494
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
5,424
|
|
$
22,706
|
|
$
23,419
|
|
$ (10,697)
|
|
$
40,852
|
|
Adjustments to income
(loss) before income taxes2
|
4,049
|
|
—
|
|
—
|
|
—
|
|
4,049
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
9,473
|
|
$
22,706
|
|
$
23,419
|
|
$ (10,697)
|
|
$
44,901
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
2,696,810
|
|
$
877,781
|
|
$
445,592
|
|
$
—
|
|
$
4,020,183
|
|
Gross profit
|
80,711
|
|
68,292
|
|
72,934
|
|
—
|
|
221,937
|
|
Operating,
administrative and general expenses
|
69,146
|
|
7,568
|
|
28,886
|
|
10,407
|
|
116,007
|
|
Other income,
net
|
4,328
|
|
7,468
|
|
500
|
|
145
|
|
12,441
|
|
Income (loss) before
income taxes
|
4,990
|
|
66,604
|
|
42,565
|
|
(9,741)
|
|
104,418
|
|
Income attributable to
noncontrolling interests
|
—
|
|
27,640
|
|
—
|
|
—
|
|
27,640
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
4,990
|
|
$
38,964
|
|
$
42,565
|
|
$
(9,741)
|
|
$
76,778
|
|
Adjustments to income
(loss) before income taxes2
|
2,249
|
|
(6,544)
|
|
—
|
|
—
|
|
(4,295)
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
7,239
|
|
$
32,420
|
|
$
42,565
|
|
$
(9,741)
|
|
$
72,483
|
|
|
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.
|
|
The Andersons,
Inc.
Segment
Data
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
|
Six months ended
June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
3,651,600
|
|
$
1,343,166
|
|
$
518,656
|
|
$
—
|
|
$
5,513,422
|
|
Gross profit
|
157,930
|
|
73,297
|
|
72,464
|
|
—
|
|
303,691
|
|
Operating,
administrative and general expenses
|
145,061
|
|
15,753
|
|
50,836
|
|
24,322
|
|
235,972
|
|
Other income (loss),
net
|
9,566
|
|
5,926
|
|
1,557
|
|
(321)
|
|
16,728
|
|
Income (loss) before
income taxes
|
11,348
|
|
61,991
|
|
21,569
|
|
(23,594)
|
|
71,314
|
|
Income attributable to
noncontrolling interests
|
—
|
|
23,578
|
|
—
|
|
—
|
|
23,578
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
11,348
|
|
$
38,413
|
|
$
21,569
|
|
$
(23,594)
|
|
$
47,736
|
|
Adjustments to income
(loss) before income taxes2
|
6,900
|
|
(3,117)
|
|
—
|
|
—
|
|
3,783
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
18,248
|
|
$
35,296
|
|
$
21,569
|
|
$
(23,594)
|
|
$
51,519
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
5,574,590
|
|
$
1,717,297
|
|
$
609,534
|
|
$
—
|
|
$
7,901,421
|
|
Gross profit
|
197,889
|
|
84,095
|
|
87,964
|
|
—
|
|
369,948
|
|
Operating,
administrative and general expenses
|
141,126
|
|
16,472
|
|
53,018
|
|
22,626
|
|
233,242
|
|
Other income,
net
|
10,311
|
|
8,309
|
|
1,346
|
|
479
|
|
20,445
|
|
Income (loss) before
income taxes
|
44,354
|
|
(15,909)
|
|
32,127
|
|
(21,155)
|
|
39,417
|
|
Loss attributable to
noncontrolling interests
|
—
|
|
(16,727)
|
|
—
|
|
—
|
|
(16,727)
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
44,354
|
|
$
818
|
|
$
32,127
|
|
$
(21,155)
|
|
$
56,144
|
|
Adjustments to income
(loss) before income taxes2
|
(13,473)
|
|
37,906
|
|
—
|
|
—
|
|
24,433
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
30,881
|
|
$
38,724
|
|
$
32,127
|
|
$
(21,155)
|
|
$
80,577
|
|
|
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
June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
5,424
|
|
$
39,200
|
|
$
23,419
|
|
$
(15,573)
|
|
$
52,470
|
|
Interest expense
(income)
|
5,454
|
|
947
|
|
693
|
|
(483)
|
|
6,611
|
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
4,876
|
|
4,876
|
|
Depreciation and
amortization
|
9,314
|
|
11,719
|
|
7,965
|
|
1,271
|
|
30,269
|
|
EBITDA
|
20,192
|
|
51,866
|
|
32,077
|
|
(9,909)
|
|
94,226
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
4,049
|
|
—
|
|
—
|
|
—
|
|
4,049
|
|
Total adjusting
items
|
4,049
|
|
—
|
|
—
|
|
—
|
|
4,049
|
|
Adjusted
EBITDA
|
$
24,241
|
|
$
51,866
|
|
$
32,077
|
|
$
(9,909)
|
|
$
98,275
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
4,990
|
|
$
66,604
|
|
$
42,565
|
|
$
(31,473)
|
|
$
82,686
|
|
Interest expense
(income)
|
10,903
|
|
1,588
|
|
1,983
|
|
(521)
|
|
13,953
|
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
21,732
|
|
21,732
|
|
Depreciation and
amortization
|
8,683
|
|
12,425
|
|
7,097
|
|
2,160
|
|
30,365
|
|
EBITDA
|
24,576
|
|
80,617
|
|
51,645
|
|
(8,102)
|
|
148,736
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
939
|
|
—
|
|
—
|
|
—
|
|
939
|
|
Insured inventory
recoveries
|
1,310
|
|
—
|
|
—
|
|
—
|
|
1,310
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
|
Total adjusting
items
|
2,249
|
|
(6,544)
|
|
—
|
|
—
|
|
(4,295)
|
|
Adjusted
EBITDA
|
$
26,825
|
|
$
74,073
|
|
$
51,645
|
|
$
(8,102)
|
|
$
144,441
|
|
|
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.
Adjusted Earnings
Before Interest, Taxes, Depreciation, and Amortization
(EBITDA)
A non-GAAP financial
measure
(unaudited)
|
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
|
Six months ended
June 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
11,348
|
|
$
61,991
|
|
$
21,569
|
|
$
(29,773)
|
|
$
65,135
|
|
Interest expense
(income)
|
11,087
|
|
1,479
|
|
1,616
|
|
(1,049)
|
|
13,133
|
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
6,179
|
|
6,179
|
|
Depreciation and
amortization
|
18,569
|
|
23,684
|
|
15,758
|
|
3,207
|
|
61,218
|
|
EBITDA
|
41,004
|
|
87,154
|
|
38,943
|
|
(21,436)
|
|
145,665
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
6,900
|
|
—
|
|
—
|
|
—
|
|
6,900
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(3,117)
|
|
—
|
|
—
|
|
(3,117)
|
|
Total adjusting
items
|
6,900
|
|
(3,117)
|
|
—
|
|
—
|
|
3,783
|
|
Adjusted
EBITDA
|
$
47,904
|
|
$
84,037
|
|
$
38,943
|
|
$
(21,436)
|
|
$
149,448
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
44,354
|
|
$
(15,909)
|
|
$
32,127
|
|
$
(37,003)
|
|
$
23,569
|
|
Interest expense
(income)
|
22,720
|
|
4,685
|
|
4,165
|
|
(992)
|
|
30,578
|
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
15,848
|
|
15,848
|
|
Depreciation and
amortization
|
17,328
|
|
26,896
|
|
14,054
|
|
4,307
|
|
62,585
|
|
EBITDA
|
84,402
|
|
15,672
|
|
50,346
|
|
(17,840)
|
|
132,580
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
2,607
|
|
—
|
|
—
|
|
—
|
|
2,607
|
|
Insured inventory
recoveries
|
(16,080)
|
|
—
|
|
—
|
|
—
|
|
(16,080)
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
|
Asset
impairment
|
—
|
|
87,156
|
|
—
|
|
—
|
|
87,156
|
|
Total adjusting
items
|
(13,473)
|
|
80,612
|
|
—
|
|
—
|
|
67,139
|
|
Adjusted
EBITDA
|
$
70,929
|
|
$
96,284
|
|
$
50,346
|
|
$
(17,840)
|
|
$
199,719
|
|
|
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
June 30, 2024
|
|
(in
thousands)
|
September 30,
2023
|
|
December 31,
2023
|
|
March 31,
2024
|
|
June 30,
2024
|
|
|
Net income
|
$
30,523
|
|
$
78,437
|
|
$
12,665
|
|
$
52,470
|
|
$
174,095
|
|
Interest
expense
|
8,188
|
|
8,101
|
|
6,522
|
|
6,611
|
|
29,422
|
|
Tax
provision
|
7,862
|
|
13,324
|
|
1,303
|
|
4,876
|
|
27,365
|
|
Depreciation and
amortization
|
31,215
|
|
31,306
|
|
30,949
|
|
30,269
|
|
123,739
|
|
EBITDA
|
77,788
|
|
131,168
|
|
51,439
|
|
94,226
|
|
354,621
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
1,999
|
|
3,212
|
|
2,852
|
|
4,049
|
|
12,112
|
|
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
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
(3,117)
|
|
—
|
|
(3,117)
|
|
Goodwill
impairment
|
—
|
|
686
|
|
—
|
|
—
|
|
686
|
|
Total adjusting
items
|
(7,479)
|
|
3,898
|
|
(265)
|
|
4,049
|
|
203
|
|
Adjusted
EBITDA
|
$
70,309
|
|
$
135,066
|
|
$
51,174
|
|
$
98,275
|
|
$
354,824
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
June 30, 2023
|
|
September 30,
2022
|
|
December 31,
2022
|
|
March 31,
2023
|
|
June 30,
2023
|
|
|
Net income
(loss)
|
$
24,880
|
|
$
21,170
|
|
$
(59,117)
|
|
$
82,686
|
|
$
69,619
|
|
Interest
expense
|
14,982
|
|
14,087
|
|
16,625
|
|
13,953
|
|
59,647
|
|
Tax provision
(benefit)
|
9,839
|
|
9,933
|
|
(5,884)
|
|
21,732
|
|
35,620
|
|
Depreciation and
amortization
|
33,322
|
|
33,476
|
|
32,220
|
|
30,365
|
|
129,383
|
|
EBITDA
|
83,023
|
|
78,666
|
|
(16,156)
|
|
148,736
|
|
294,269
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Insured inventory
expenses (recoveries)
|
—
|
|
15,993
|
|
(17,390)
|
|
1,310
|
|
(87)
|
|
Transaction related
compensation
|
—
|
|
—
|
|
1,668
|
|
939
|
|
2,607
|
|
Asset
impairment
|
—
|
|
9,000
|
|
87,156
|
|
—
|
|
96,156
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
—
|
|
(6,544)
|
|
(6,544)
|
|
Total adjusting
items
|
—
|
|
24,993
|
|
71,434
|
|
(4,295)
|
|
92,132
|
|
Adjusted
EBITDA
|
$
83,023
|
|
$
103,659
|
|
$
55,278
|
|
$
144,441
|
|
$
386,401
|
|
|
|
|
|
|
|
|
|
|
|
The Andersons,
Inc.
Cash from Operations
Before Working Capital Changes
A non-GAAP financial
measure
(unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
(in
thousands)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash provided by
operating activities
|
$
304,434
|
|
$
540,939
|
|
$
64,807
|
|
$
207,404
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(42,441)
|
|
82,754
|
|
15,284
|
|
207,867
|
|
Inventories
|
308,640
|
|
556,845
|
|
477,723
|
|
734,855
|
|
Commodity
derivatives
|
64,508
|
|
19,605
|
|
36,010
|
|
102,753
|
|
Other current and
non-current assets
|
(52,510)
|
|
16,296
|
|
(50,587)
|
|
(1,247)
|
|
Payables and other
current and non-current liabilities
|
(62,528)
|
|
(250,794)
|
|
(550,797)
|
|
(1,011,086)
|
|
Total changes in
operating assets and liabilities
|
215,669
|
|
424,706
|
|
(72,367)
|
|
33,142
|
|
Adjusting items
impacting cash from operations before working capital
changes:
|
|
|
|
|
|
|
|
|
Less: Insured
inventory expenses (recoveries)
|
—
|
|
1,310
|
|
—
|
|
(16,080)
|
|
Cash from operations
before working capital changes
|
$
88,765
|
|
$
117,543
|
|
$
137,174
|
|
$
158,182
|
|
|
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.