MAUMEE,
Ohio, Nov. 7, 2023 /CNW/ --
The Andersons, Inc. (Nasdaq: ANDE) announces financial results
for the third quarter ended September 30,
2023.
Third Quarter Highlights:
- Company reported net income attributable to The Andersons of
$10 million, or $0.28 per diluted share and adjusted net income
of $5 million, or $0.13 per diluted share
- Adjusted EBITDA was $70
million for the quarter
- Expect full year adjusted EBITDA to achieve previous
expectations of $350-$375 million
- Renewables reported record Q3 pretax income of $47 million and record pretax income attributable
to The Andersons of $26 million on
strong operations and industry fundamentals
"Our third quarter includes record results from our Renewables
team with great operating performance in our ethanol plants, a
strong margin environment and good results from our renewable
diesel feedstock merchandising team. We had solid core operating
performance in our Trade segment which was offset by a currency
loss in our international business. Lastly, our Nutrient &
Industrial segment's third quarter, which is typically a loss in
this seasonally slow period, had year over year improvements in
both its ag and manufacturing businesses," said President and CEO
Pat Bowe. "We remain confident about
the balance of the year and expect to achieve our previously
communicated full year adjusted EBITDA outlook of $350-$375
million."
"We continue to make good progress against our growth strategy.
Our third quarter acquisition of ACJ International, a pet food
ingredient supplier, contributed positively to these results. We
are pleased with this complementary addition to our core grain and
fertilizer verticals," continued Bowe. "We are actively pursuing
opportunities for growth in our Renewables business. These
opportunities include expansion of our renewable diesel feedstock
merchandising business and investments to lower the carbon
intensity of our ethanol plants. With our well-positioned balance
sheet, we have good capacity for growth."
$ in millions,
except per share
amounts
|
|
|
|
|
Q3
2023
|
Q3
2022
|
Variance
|
YTD
2023
|
YTD
2022
|
Variance
|
Pretax Income from
Continuing Operations
|
$
38.4
|
$
34.7
|
$
3.7
|
$
77.8
|
$
163.5
|
$
(85.7)
|
Pretax Income from
Continuing Operations
Attributable to the Company1
|
17.6
|
27.2
|
(9.6)
|
73.7
|
133.7
|
(60.0)
|
Adjusted Pretax
Income (Loss) from
Continuing Operations Attributable to the
Company1
|
10.1
|
27.2
|
(17.1)
|
90.7
|
134.3
|
(43.6)
|
Trade1
|
5.4
|
40.7
|
(35.3)
|
36.3
|
68.7
|
(32.4)
|
Renewables1
|
26.3
|
8.4
|
17.9
|
65.0
|
59.8
|
5.2
|
Nutrient &
Industrial
|
(8.5)
|
(11.6)
|
3.1
|
23.7
|
37.4
|
(13.7)
|
Other1
|
(13.1)
|
(10.2)
|
(2.9)
|
(34.3)
|
(31.6)
|
(2.7)
|
Net Income from
Continuing Operations
Attributable to the Company
|
9.7
|
17.4
|
(7.7)
|
50.0
|
104.0
|
(54.0)
|
Adjusted Net Income
from Continuing
Operations Attributable to the
Company1
|
4.6
|
17.4
|
(12.8)
|
63.7
|
105.6
|
(41.9)
|
Diluted Earnings Per
Share from Continuing
Operations (EPS)
|
0.28
|
0.50
|
(0.22)
|
1.46
|
3.02
|
(1.56)
|
Adjusted Diluted
Earnings Per Share from
Continuing Operations1
|
0.13
|
0.50
|
(0.37)
|
1.86
|
3.07
|
(1.21)
|
EBITDA from
Continuing Operations1
|
77.8
|
83.0
|
(5.2)
|
210.4
|
307.5
|
(97.1)
|
Adjusted EBITDA from
Continuing
Operations1
|
$
70.3
|
$
83.0
|
$
(12.7)
|
$
270.0
|
$
308.2
|
$
(38.2)
|
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. "Although we typically finance working capital
with short-term borrowings, we ended the quarter with more than
$400 million in cash and very little
short-term debt due to strong cash flows and reduced commodity
prices. 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 generated $489 million
and $568 million in cash from
operating activities for the third quarters of 2023 and 2022,
respectively, and cash from operations before working capital
changes was comparable to the same period of the prior year.
Included in our investing activities are several strategic growth
projects along with normal spending to maintain our facilities.
Third Quarter Segment Overview
Trade Underlying Fundamentals Remain Solid
The Trade segment recorded pretax income of $8 million and adjusted pretax income of
$5 million for the quarter compared
to pretax income of $41 million in
the third quarter of 2022.
Aggregate results for most of our product lines were comparable
to the strong third quarter of 2022. Our asset business benefited
from another solid Louisiana
harvest and strong space income after a very large soft wheat
harvest. Underlying merchandising fundamentals were solid; however,
earnings were negatively impacted by a $19
million pretax loss ($0.43 per
share) in Egypt. While we sell in
U.S. dollars, given the unusual currency liquidity issues being
experienced by our customers in Egypt, we accepted a lower exchange rate for
previously delivered product.
The Trade business remains focused on domestic grain flows and
is less impacted by slowdowns in U.S. exports. With the large and
ongoing U.S. harvest, our assets are well-positioned to accumulate,
condition and store large quantities of grain. In this harvest, we
expect drying income due to receipts of higher moisture corn. Trade
is also receiving increased storage rates including Variable
Storage Rates (VSR) in wheat. With increased domestic supply, the
merchandising focus will continue to be on serving customers and
opportunistic arbitrage.
Renewables had a Record Third Quarter; Strong Operational
Results and Industry Fundamentals
The Renewables segment reported record pretax income of
$47 million and pretax income
attributable to the company of $26
million in the third quarter. For the same period in 2022,
the segment reported pretax income of $16
million and pretax income attributable to the company of
$8 million.
Ethanol crush margins were outstanding throughout the quarter,
and the current margin outlook remains strong. Production
facilities operated efficiently in the quarter with improved
ethanol yield and lower operating costs than the comparable quarter
in 2022. Results from the merchandising businesses, including
renewable diesel feedstocks, exceeded our third quarter 2022
results by nearly $5 million. The
three large eastern plants completed their semi-annual maintenance
shutdowns in the third quarter and the western plant completed
shortly thereafter. Board crush values remain historically high
into the fourth quarter.
Nutrient & Industrial Ag Businesses Recover on Improved
Margin
The Nutrient & Industrial segment posted a pretax loss of
$8 million, compared to a 2022 third
quarter pretax loss of $12 million.
During this seasonally slow period, volumes were down 6% with an
overall increase in margins. Gross profit improved by $4 million and reflects these higher margins
partially offset by the volume decline. The Sioux City specialty liquid plant was impacted
by a rail service interruption which had an impact on volumes for
approximately one month. Outlook for the fourth quarter remains
solid.
Income Taxes; Corporate
The company recorded income tax expense at an effective rate of
20% for the quarter due to the tax treatment of non-controlling
interests. We anticipate a full-year adjusted effective rate of
approximately 21% - 24%.
Conference Call
The company will host a webcast on Wednesday, November 8, 2023, at 11 a.m. Eastern Time, to discuss its performance
and provide its outlook for the remainder of 2023. To access the
call, please dial 888-317-6003 or 412-317-6061 (elite entry number
is 6326280). 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/RLX7mgJ2YKE 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) from continuing operations
attributable to the company; adjusted pretax income (loss) from
continuing operations attributable to the company; adjusted pretax
income (loss) from continuing operations; adjusted net income from
continuing operations attributable to the company; adjusted diluted
earnings per share from continuing operations; earnings before
interest, taxes, depreciation, and amortization (or EBITDA); EBITDA
from continuing operations; adjusted EBITDA; adjusted EBITDA from
continuing operations; 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 from continuing
operations or income (loss) before income taxes from continuing
operations, net income from continuing operations, diluted earnings
(loss) per share attributable to The Andersons, Inc. common
shareholders from continuing operations 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 to Forbes list of America's Best
Small Companies for 2023 and one of America's Greatest Workplaces
for Diversity 2023 by Newsweek®, is a diversified
company rooted in agriculture that conducts business in the
commodity merchandising, renewables, and nutrient and 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
September 30,
|
|
Nine months
ended
September 30,
|
(in thousands, except
per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales and merchandising
revenues
|
$
3,635,691
|
|
$ 4,219,325
|
|
$
11,537,112
|
|
$
12,647,896
|
Cost of sales and
merchandising revenues
|
3,477,990
|
|
4,055,560
|
|
11,009,463
|
|
12,133,755
|
Gross profit
|
157,701
|
|
163,765
|
|
527,649
|
|
514,141
|
Operating,
administrative and general expenses
|
126,306
|
|
115,539
|
|
359,548
|
|
330,085
|
Asset
impairment
|
—
|
|
—
|
|
87,156
|
|
—
|
Interest expense,
net
|
8,188
|
|
14,982
|
|
38,766
|
|
42,762
|
Other income,
net
|
15,178
|
|
1,475
|
|
35,623
|
|
22,185
|
Income before income
taxes from continuing operations
|
38,385
|
|
34,719
|
|
77,802
|
|
163,479
|
Income tax provision
from continuing operations
|
7,862
|
|
9,839
|
|
23,710
|
|
29,695
|
Net income from
continuing operations
|
30,523
|
|
24,880
|
|
54,092
|
|
133,784
|
Income from
discontinued operations, net of income taxes
|
—
|
|
19,392
|
|
—
|
|
18,099
|
Net income
|
30,523
|
|
44,272
|
|
54,092
|
|
151,883
|
Net income
attributable to noncontrolling interests
|
20,815
|
|
7,524
|
|
4,088
|
|
29,827
|
Net income attributable
to The Andersons, Inc.
|
$
9,708
|
|
$ 36,748
|
|
$
50,004
|
|
$
122,056
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to The Andersons, Inc. common
shareholders:
|
|
|
|
|
|
|
|
Basic
earnings:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.29
|
|
$
0.51
|
|
$
1.48
|
|
$
3.08
|
Discontinued
operations
|
—
|
|
0.57
|
|
—
|
|
0.54
|
|
$
0.29
|
|
$
1.08
|
|
$
1.48
|
|
$
3.62
|
Diluted
earnings:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.28
|
|
$
0.50
|
|
$
1.46
|
|
$
3.02
|
Discontinued
operations
|
—
|
|
0.56
|
|
—
|
|
0.53
|
|
$
0.28
|
|
$
1.06
|
|
$
1.46
|
|
$
3.55
|
The Andersons,
Inc. Condensed Consolidated Balance
Sheets (unaudited)
|
|
(in
thousands)
|
September 30,
2023
|
|
December 31,
2022
|
|
September 30,
2022
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
418,055
|
|
$
115,269
|
|
$
140,771
|
Accounts
receivable, net
|
816,686
|
|
1,248,878
|
|
990,531
|
Inventories
|
985,292
|
|
1,731,725
|
|
1,556,426
|
Commodity
derivative assets – current
|
239,595
|
|
295,588
|
|
502,097
|
Other current
assets
|
67,471
|
|
74,493
|
|
75,402
|
Total current
assets
|
2,527,099
|
|
3,465,953
|
|
3,265,227
|
Other
assets:
|
|
|
|
|
|
Goodwill
|
128,542
|
|
129,342
|
|
129,342
|
Other intangible
assets, net
|
90,768
|
|
100,907
|
|
99,317
|
Right of use assets,
net
|
56,919
|
|
61,890
|
|
59,146
|
Other assets,
net
|
104,586
|
|
87,175
|
|
99,650
|
Total other
assets
|
380,815
|
|
379,314
|
|
387,455
|
Property, plant and
equipment, net
|
680,188
|
|
762,729
|
|
765,939
|
Total assets
|
$
3,588,102
|
|
$
4,607,996
|
|
$
4,418,621
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
14,138
|
|
$
272,575
|
|
$
652,947
|
Trade and other
payables
|
822,153
|
|
1,423,633
|
|
930,027
|
Customer
prepayments and deferred revenue
|
211,867
|
|
370,524
|
|
258,828
|
Commodity
derivative liabilities – current
|
142,511
|
|
98,519
|
|
137,168
|
Current
maturities of long-term debt
|
27,535
|
|
110,155
|
|
112,029
|
Accrued expenses
and other current liabilities
|
189,430
|
|
245,916
|
|
229,508
|
Total current
liabilities
|
1,407,634
|
|
2,521,322
|
|
2,320,507
|
Long-term lease
liabilities
|
32,883
|
|
37,147
|
|
34,779
|
Long-term debt, less
current maturities
|
569,730
|
|
492,518
|
|
497,988
|
Deferred income
taxes
|
58,217
|
|
64,080
|
|
59,079
|
Other long-term
liabilities
|
70,552
|
|
63,160
|
|
79,727
|
Total
liabilities
|
2,139,016
|
|
3,178,227
|
|
2,992,080
|
Total equity
|
1,449,086
|
|
1,429,769
|
|
1,426,541
|
Total liabilities and
equity
|
$
3,588,102
|
|
$
4,607,996
|
|
$
4,418,621
|
The Andersons,
Inc. Consolidated Statements of Cash
Flows (unaudited)
|
|
|
Nine months ended
September 30,
|
(in
thousands)
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
Net income from
continuing operations
|
$
54,092
|
|
$
133,784
|
Income from
discontinued operations, net of income taxes
|
—
|
|
18,099
|
Net income
|
54,092
|
|
151,883
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
93,800
|
|
101,266
|
Gain on sale of
business from discontinued operations
|
—
|
|
(27,091)
|
Asset
impairment
|
87,156
|
|
—
|
Other
|
1,347
|
|
(1,296)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
406,263
|
|
(140,866)
|
Inventories
|
748,118
|
|
236,854
|
Commodity
derivatives
|
99,479
|
|
(104,901)
|
Other current and
non-current assets
|
2,048
|
|
2,000
|
Payables and other
current and non-current liabilities
|
(796,216)
|
|
(371,219)
|
Net cash provided by
(used in) operating activities
|
696,087
|
|
(153,370)
|
Investing
Activities
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(24,385)
|
|
—
|
Purchases of property,
plant and equipment and capitalized software
|
(108,718)
|
|
(72,247)
|
Proceeds from sale of
assets
|
3,082
|
|
4,810
|
Proceeds from sale of
business from continuing operations
|
10,318
|
|
5,171
|
Proceeds from sale of
business from discontinued operations
|
—
|
|
56,302
|
Purchases of Rail
assets
|
—
|
|
(27,464)
|
Proceeds from sale of
Rail assets
|
2,871
|
|
36,706
|
Other
|
(431)
|
|
(359)
|
Net cash (used in)
provided by investing activities
|
(117,263)
|
|
2,919
|
Financing
Activities
|
|
|
|
Net receipts (payments)
under short-term lines of credit
|
(261,152)
|
|
361,318
|
Proceeds from issuance
of short-term debt
|
—
|
|
350,000
|
Payments of short-term
debt
|
—
|
|
(550,000)
|
Proceeds from issuance
of long-term debt
|
100,000
|
|
—
|
Payments of long-term
debt
|
(42,734)
|
|
(22,585)
|
Contributions from
noncontrolling interest owner
|
—
|
|
2,450
|
Distributions to
noncontrolling interest owner
|
(44,304)
|
|
(34,930)
|
Payments of debt
issuance costs
|
(769)
|
|
(7,802)
|
Dividends
paid
|
(18,771)
|
|
(18,262)
|
Proceeds from exercises
of stock options
|
—
|
|
5,024
|
Common stock
repurchased
|
(1,747)
|
|
(6,769)
|
Value of shares
withheld for taxes
|
(6,627)
|
|
(3,349)
|
Other
|
258
|
|
394
|
Net cash (used in)
provided by financing activities
|
(275,846)
|
|
75,489
|
Effect of exchange
rates on cash and cash equivalents
|
(192)
|
|
(711)
|
Increase (decrease) in
cash and cash equivalents
|
302,786
|
|
(75,673)
|
Cash and cash
equivalents at beginning of period
|
115,269
|
|
216,444
|
Cash and cash
equivalents at end of period
|
$
418,055
|
|
$
140,771
|
The Andersons,
Inc. Adjusted Net Income Attributable to The Andersons,
Inc. A non-GAAP financial
measure (unaudited)
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
(in thousands, except
per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income from
continuing operations
|
$
30,523
|
|
$
24,880
|
|
$
54,092
|
|
$ 133,784
|
Net income
attributable to noncontrolling interests
|
20,815
|
|
7,524
|
|
4,088
|
|
29,827
|
Net income from
continuing operations attributable to The Andersons,
Inc.
|
9,708
|
|
17,356
|
|
50,004
|
|
103,957
|
Adjustments:
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
(5,643)
|
|
—
|
|
(5,643)
|
|
(3,762)
|
Gain on cost method
investment
|
(4,798)
|
|
—
|
|
(4,798)
|
|
—
|
Transaction related
compensation
|
1,999
|
|
—
|
|
4,606
|
|
—
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
(6,544)
|
|
—
|
Insured inventory
recoveries
|
—
|
|
—
|
|
(16,080)
|
|
—
|
Asset impairment
including equity method investments
|
963
|
|
—
|
|
45,413
|
|
4,455
|
Income tax impact of
adjustments1
|
2,367
|
|
—
|
|
(3,255)
|
|
940
|
Total adjusting items,
net of tax
|
(5,112)
|
|
—
|
|
13,699
|
|
1,633
|
Adjusted net income
from continuing operations attributable to The
Andersons, Inc.
|
$
4,596
|
|
$
17,356
|
|
$
63,703
|
|
$ 105,590
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations attributable to The
Andersons, Inc. common shareholders
|
$
0.28
|
|
$
0.50
|
|
$
1.46
|
|
$
3.02
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share from continuing operations
|
$
(0.15)
|
|
$
—
|
|
$
0.40
|
|
$
0.05
|
Adjusted diluted
earnings per share from continuing operations
|
$
0.13
|
|
$
0.50
|
|
$
1.86
|
|
$
3.07
|
|
1 The income
tax impact of adjustments is taken at the statutory tax rate of 25%
with the exception of certain transaction related compensation and
impairments of equity method investments in both 2023 and 2022,
respectively.
|
|
Adjusted net income
(loss) from continuing operations attributable to The Andersons,
Inc. reflects reported net income (loss) from continuing operations
available to The Andersons, Inc. common shareholders after the
removal of specified items described above. Adjusted diluted
earnings (loss) from continuing operations 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) from continuing
operations attributable to The Andersons, Inc. and Adjusted diluted
earnings (loss) from continuing operations 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 from continuing operations attributable
to The Andersons, Inc. and Diluted earnings per share from
continuing operations 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) from continuing operations per share amount for
each specified item.
|
The Andersons,
Inc. Segment Data (unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
2,639,059
|
|
$
868,099
|
|
$
128,533
|
|
$
—
|
|
$
3,635,691
|
Gross profit
|
85,997
|
|
53,045
|
|
18,659
|
|
—
|
|
157,701
|
Operating,
administrative and general expenses
|
79,247
|
|
8,332
|
|
26,233
|
|
12,494
|
|
126,306
|
Other income,
net
|
7,838
|
|
3,346
|
|
606
|
|
3,388
|
|
15,178
|
Income (loss) before
income taxes from continuing operations
|
8,073
|
|
47,096
|
|
(8,452)
|
|
(8,332)
|
|
38,385
|
Income attributable to
noncontrolling interests
|
—
|
|
20,815
|
|
—
|
|
—
|
|
20,815
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
8,073
|
|
$
26,281
|
|
$
(8,452)
|
|
$
(8,332)
|
|
$
17,570
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
(2,681)
|
|
—
|
|
—
|
|
(4,798)
|
|
(7,479)
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
5,392
|
|
$
26,281
|
|
$
(8,452)
|
|
$ (13,130)
|
|
$
10,091
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
3,240,526
|
|
$
814,923
|
|
$
163,876
|
|
$
—
|
|
$
4,219,325
|
Gross profit
|
124,368
|
|
24,677
|
|
14,720
|
|
—
|
|
163,765
|
Operating,
administrative and general expenses
|
73,347
|
|
7,053
|
|
25,427
|
|
9,712
|
|
115,539
|
Other income (loss),
net
|
419
|
|
832
|
|
1,018
|
|
(794)
|
|
1,475
|
Income (loss) before
income taxes from continuing operations
|
40,658
|
|
15,901
|
|
(11,609)
|
|
(10,231)
|
|
34,719
|
Income attributable to
noncontrolling interests
|
—
|
|
7,524
|
|
—
|
|
—
|
|
7,524
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
40,658
|
|
$
8,377
|
|
$
(11,609)
|
|
$ (10,231)
|
|
$
27,195
|
1 Income
(loss) from continuing operations 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) from continuing operations before
income taxes
can be found in the Reconciliation to EBITDA and Adjusted EBITDA
table.
|
The Andersons,
Inc. Segment Data
(continued) (unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Nine months ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
8,213,649
|
|
$
2,585,396
|
|
$
738,067
|
|
$
—
|
|
$
11,537,112
|
Gross profit
|
283,886
|
|
137,140
|
|
106,623
|
|
—
|
|
527,649
|
Operating,
administrative and general expenses
|
220,373
|
|
24,804
|
|
79,251
|
|
35,120
|
|
359,548
|
Other income,
net
|
18,149
|
|
11,655
|
|
1,952
|
|
3,867
|
|
35,623
|
Income (loss) before
income taxes from continuing operations
|
52,427
|
|
31,187
|
|
23,675
|
|
(29,487)
|
|
77,802
|
Income attributable to
noncontrolling interests
|
—
|
|
4,088
|
|
—
|
|
—
|
|
4,088
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
52,427
|
|
$
27,099
|
|
$
23,675
|
|
$
(29,487)
|
|
$
73,714
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
(16,154)
|
|
37,906
|
|
—
|
|
(4,798)
|
|
16,954
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
36,273
|
|
$
65,005
|
|
$
23,675
|
|
$
(34,285)
|
|
$
90,668
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
9,422,974
|
|
$
2,380,721
|
|
$
844,201
|
|
$
—
|
|
$
12,647,896
|
Gross profit
|
293,981
|
|
99,756
|
|
120,404
|
|
—
|
|
514,141
|
Operating,
administrative and general expenses
|
195,867
|
|
23,533
|
|
80,343
|
|
30,342
|
|
330,085
|
Other income (loss),
net
|
2,148
|
|
19,750
|
|
2,688
|
|
(2,401)
|
|
22,185
|
Income (loss) before
income taxes from continuing operations
|
67,993
|
|
89,639
|
|
37,445
|
|
(31,598)
|
|
163,479
|
Income attributable to
noncontrolling interests
|
—
|
|
29,827
|
|
—
|
|
—
|
|
29,827
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
67,993
|
|
$
59,812
|
|
$
37,445
|
|
$
(31,598)
|
|
$ 133,652
|
Adjustments to income
before income taxes from continuing
operations2
|
693
|
|
—
|
|
—
|
|
—
|
|
693
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
68,686
|
|
$
59,812
|
|
$
37,445
|
|
$
(31,598)
|
|
$ 134,345
|
1 Income
(loss) from continuing operations 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) from continuing operations before
income taxes
can be found in the Reconciliation to EBITDA and Adjusted EBITDA
table.
|
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
September 30, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)1
|
$
8,073
|
|
$
47,096
|
|
$
(8,452)
|
|
$
(16,194)
|
|
$
30,523
|
Interest expense
(income)
|
6,515
|
|
963
|
|
1,484
|
|
(774)
|
|
8,188
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
7,862
|
|
7,862
|
Depreciation and
amortization
|
9,331
|
|
12,328
|
|
7,464
|
|
2,092
|
|
31,215
|
EBITDA1
|
23,919
|
|
60,387
|
|
496
|
|
(7,014)
|
|
77,788
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
1,999
|
|
—
|
|
—
|
|
—
|
|
1,999
|
Gain on cost method
investment
|
—
|
|
—
|
|
—
|
|
(4,798)
|
|
(4,798)
|
Gain on sale of
assets
|
(5,643)
|
|
—
|
|
—
|
|
—
|
|
(5,643)
|
Impairment on equity
method investment
|
963
|
|
—
|
|
—
|
|
—
|
|
963
|
Total adjusting
items
|
(2,681)
|
|
—
|
|
—
|
|
(4,798)
|
|
(7,479)
|
Adjusted
EBITDA1
|
$
21,238
|
|
$
60,387
|
|
$
496
|
|
$
(11,812)
|
|
$
70,309
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
$
40,658
|
|
$
15,901
|
|
$
(11,609)
|
|
$
(20,070)
|
|
$
24,880
|
Interest expense
(income)
|
10,782
|
|
2,555
|
|
1,920
|
|
(275)
|
|
14,982
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
9,839
|
|
9,839
|
Depreciation and
amortization
|
9,011
|
|
15,501
|
|
6,626
|
|
2,184
|
|
33,322
|
EBITDA from continuing
operations
|
$
60,451
|
|
$
33,957
|
|
$
(3,063)
|
|
$
(8,322)
|
|
$
83,023
|
|
1 Amounts
for the three months ended September 30, 2023, contain no activity
from discontinued operations. As such, references to EBITDA and
EBITDA from continuing operations, as well as, Adjusted EBITDA and
Adjusted EBITDA from continuing operations will yield the same
results for the three months ended September 30, 2023.
|
|
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
|
Nine months ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)1
|
$
52,427
|
|
$
31,187
|
|
$
23,675
|
|
$
(53,197)
|
|
$
54,092
|
Interest expense
(income)
|
29,235
|
|
5,648
|
|
5,649
|
|
(1,766)
|
|
38,766
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
23,710
|
|
23,710
|
Depreciation and
amortization
|
26,659
|
|
39,224
|
|
21,518
|
|
6,399
|
|
93,800
|
EBITDA1
|
108,321
|
|
76,059
|
|
50,842
|
|
(24,854)
|
|
210,368
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
4,606
|
|
—
|
|
—
|
|
—
|
|
4,606
|
Insured inventory
recoveries
|
(16,080)
|
|
—
|
|
—
|
|
—
|
|
(16,080)
|
Gain on sale of
assets
|
(5,643)
|
|
—
|
|
—
|
|
—
|
|
(5,643)
|
Gain on cost method
investment
|
—
|
|
—
|
|
—
|
|
(4,798)
|
|
(4,798)
|
Asset impairment
including equity method
investment
|
963
|
|
87,156
|
|
—
|
|
—
|
|
88,119
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
Total adjusting
items
|
(16,154)
|
|
80,612
|
|
—
|
|
(4,798)
|
|
59,660
|
Adjusted
EBITDA1
|
$
92,167
|
|
$
156,671
|
|
$
50,842
|
|
$
(29,652)
|
|
$
270,028
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2022
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
$
67,993
|
|
$
89,639
|
|
$
37,445
|
|
$
(61,293)
|
|
$
133,784
|
Interest expense
(income)
|
32,269
|
|
6,334
|
|
5,304
|
|
(1,145)
|
|
42,762
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
29,695
|
|
29,695
|
Depreciation and
amortization
|
26,899
|
|
48,015
|
|
19,800
|
|
6,552
|
|
101,266
|
EBITDA from continuing
operations
|
127,161
|
|
143,988
|
|
62,549
|
|
(26,191)
|
|
307,507
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
(3,762)
|
|
—
|
|
—
|
|
—
|
|
(3,762)
|
Impairment on equity
method investment
|
4,455
|
|
—
|
|
—
|
|
—
|
|
4,455
|
Total adjusting
items
|
693
|
|
—
|
|
—
|
|
—
|
|
693
|
Adjusted EBITDA from
continuing operations
|
$
127,854
|
|
$
143,988
|
|
$
62,549
|
|
$
(26,191)
|
|
$
308,200
|
|
1 Amounts
for the nine months ended September 30, 2023, contain no activity
from discontinued operations. As such, references to EBITDA and
EBITDA from continuing operations, as well as, Adjusted EBITDA and
Adjusted EBITDA from continuing operations will yield the same
results for the nine months ended September 30, 2023.
|
|
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
from Continuing Operations A non-GAAP financial
measure (unaudited)
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
September 30, 2023
|
(in
thousands)
|
December 31,
2022
|
|
March 31,
2023
|
|
June 30,
2023
|
|
September 30,
2023
|
|
Net income (loss) from
continuing operations
|
$
21,170
|
|
$
(59,117)
|
|
$
82,686
|
|
$
30,523
|
|
$
75,262
|
Interest
expense
|
14,087
|
|
16,625
|
|
13,953
|
|
8,188
|
|
52,853
|
Tax provision
(benefit)
|
9,933
|
|
(5,884)
|
|
21,732
|
|
7,862
|
|
33,643
|
Depreciation and
amortization
|
33,476
|
|
32,220
|
|
30,365
|
|
31,215
|
|
127,276
|
EBITDA from continuing
operations
|
78,666
|
|
(16,156)
|
|
148,736
|
|
77,788
|
|
289,034
|
Adjusting items
impacting EBITDA from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation expense
|
—
|
|
1,668
|
|
939
|
|
1,999
|
|
4,606
|
Gain on sale of
assets
|
—
|
|
—
|
|
—
|
|
(5,643)
|
|
(5,643)
|
Gain on cost method
investment
|
—
|
|
—
|
|
—
|
|
(4,798)
|
|
(4,798)
|
Asset impairment
including equity
method investments
|
9,000
|
|
87,156
|
|
—
|
|
963
|
|
97,119
|
Insured inventory
expenses (recoveries)
|
15,993
|
|
(17,390)
|
|
1,310
|
|
—
|
|
(87)
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
(6,544)
|
|
—
|
|
(6,544)
|
Total adjusting
items
|
24,993
|
|
71,434
|
|
(4,295)
|
|
(7,479)
|
|
84,653
|
Adjusted EBITDA from
continuing operations
|
$
103,659
|
|
$
55,278
|
|
$
144,441
|
|
$
70,309
|
|
$
373,687
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
September 30, 2022
|
|
December 31,
2021
|
|
March 31,
2022
|
|
June 30,
2022
|
|
September 30,
2022
|
|
Net income from
continuing operations
|
$
65,473
|
|
$
6,504
|
|
$
102,400
|
|
$
24,880
|
|
$
199,257
|
Interest
expense
|
8,444
|
|
10,859
|
|
16,921
|
|
14,982
|
|
51,206
|
Tax
provision
|
11,163
|
|
4,103
|
|
15,753
|
|
9,839
|
|
40,858
|
Depreciation and
amortization
|
36,797
|
|
34,377
|
|
33,567
|
|
33,322
|
|
138,063
|
EBITDA from continuing
operations
|
121,877
|
|
55,843
|
|
168,641
|
|
83,023
|
|
429,384
|
Adjusting items
impacting EBITDA from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation expense
|
274
|
|
—
|
|
—
|
|
—
|
|
274
|
Asset impairments
including equity
method investments
|
8,321
|
|
—
|
|
4,455
|
|
—
|
|
12,776
|
Gain on sales of
assets
|
—
|
|
—
|
|
(3,762)
|
|
—
|
|
(3,762)
|
Total adjusting
items
|
8,595
|
|
—
|
|
693
|
|
—
|
|
9,288
|
Adjusted EBITDA from
continuing operations
|
$
130,472
|
|
$
55,843
|
|
$
169,334
|
|
$
83,023
|
|
$
438,672
|
The Andersons,
Inc. Cash from Operations Before Working Capital
Changes A non-GAAP financial
measure (unaudited)
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by (used
in) operating activities
|
$
488,683
|
|
$
568,429
|
|
$
696,087
|
|
$ (153,370)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
198,396
|
|
148,330
|
|
406,263
|
|
(140,866)
|
Inventories
|
13,263
|
|
50,169
|
|
748,118
|
|
236,854
|
Commodity
derivatives
|
(3,274)
|
|
84,189
|
|
99,479
|
|
(104,901)
|
Other current and
non-current assets
|
3,295
|
|
(3,106)
|
|
2,048
|
|
2,000
|
Payables and other
current and non-current liabilities
|
214,870
|
|
238,184
|
|
(796,216)
|
|
(371,219)
|
Total changes in
operating assets and liabilities
|
426,550
|
|
517,766
|
|
459,692
|
|
(378,132)
|
Adjusting items
impacting cash from operations before
working capital changes:
|
|
|
|
|
|
|
|
Less: Insured
inventory recoveries
|
—
|
|
—
|
|
(16,080)
|
|
—
|
Less: Unrealized
foreign currency losses on receivables
|
(12,088)
|
|
—
|
|
(12,088)
|
|
—
|
Cash from operations
before working capital changes
|
$
50,045
|
|
$
50,663
|
|
$
208,227
|
|
$
224,762
|
|
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.