MAUMEE,
Ohio, Nov. 4, 2024 /PRNewswire/ -- The
Andersons, Inc. (Nasdaq: ANDE) announces financial results for the
third quarter ended September 30, 2024.
Third Quarter Highlights:
- Company reported net income attributable to The Andersons of
$27 million, or $0.80 per diluted share and adjusted net income
of $25 million, or $0.72 per diluted share
- Adjusted EBITDA was $97
million, producing a record for the third quarter
- Renewables reported best-ever third quarter pretax income of
$53 million and pretax income
attributable to The Andersons of $28
million on strong operating performance and ethanol
margins
- Trade generated increased year-over-year pretax income of
$26 million and adjusted pretax
income of $23 million
"Overall, we are pleased with our third quarter results given
the lower commodity prices and reduced volatility in the ag
markets. Renewables had a very strong quarter with increased
ethanol production and improved yields in a period of good but
softening crush margins. Trade results were significantly better
than last year and include improved performance in our assets.
Increased volume and margins in our specialty liquids and
manufactured product lines resulted in improved results in Nutrient
& Industrial," said President and CEO Bill Krueger. "Harvest is almost complete due to
the near-perfect harvest weather, with both higher-than-normal
quality and above trend-line yields. We have been able to buy grain
at good basis values which should allow for carry opportunities
into 2025. We continue to see the benefits of our portfolio mix
with well-placed assets, a growing specialty ingredients
business, efficient ethanol plant performance and merchandising
opportunities across our businesses."
"We continue to pursue growth opportunities. Most recently, we
announced the closing of an $85
million investment for a 65% ownership interest in
Skyland Grain, LLC, which operates a
large grain and agronomy footprint spread across Southwest Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles. These assets extend our
geographic footprint and support our existing merchandising
presence in the region," continued Krueger. "In addition, we
announced a significant investment in our leased facility at the
port of Houston to improve our
current grain export program and add capacity for storing and
exporting soybean meal. We continue to make progress on our
longer-term Renewables projects, which are focused on lowering the
carbon intensity of our high-performing ethanol plants. In addition
to these projects, we continue our investment philosophy to improve
efficiency and add capacity at our existing plants, as well as
acquisition opportunities, which are in line with our strategy and
generate appropriate returns."
|
$ in millions,
except per share
amounts
|
|
|
|
|
Q3
2024
|
Q3
2023
|
Variance
|
YTD
2024
|
YTD
2023
|
Variance
|
|
Pretax
Income
|
$
62.2
|
$
38.4
|
$
23.8
|
$
133.5
|
$
77.8
|
$
55.7
|
|
Pretax Income
Attributable to the Company1
|
38.1
|
17.6
|
20.5
|
85.8
|
73.7
|
12.1
|
|
Adjusted Pretax
Income
Attributable to the
Company1
|
34.6
|
10.1
|
24.5
|
86.1
|
90.7
|
(4.6)
|
|
Trade1
|
22.7
|
5.4
|
17.3
|
41.0
|
36.3
|
4.7
|
|
Renewables1
|
28.5
|
26.3
|
2.2
|
63.8
|
65.0
|
(1.2)
|
|
Nutrient &
Industrial
|
(6.1)
|
(8.5)
|
2.4
|
15.4
|
23.7
|
(8.3)
|
|
Other1
|
(10.5)
|
(13.1)
|
2.6
|
(34.1)
|
(34.3)
|
0.2
|
|
Net Income
Attributable to the Company
|
27.4
|
9.7
|
17.7
|
68.9
|
50.0
|
18.9
|
|
Adjusted Net Income
Attributable to the Company1
|
24.7
|
4.6
|
20.1
|
69.8
|
63.7
|
6.1
|
|
Diluted Earnings Per
Share ("EPS")
|
0.80
|
0.28
|
0.52
|
2.01
|
1.46
|
0.55
|
|
Adjusted
EPS1
|
0.72
|
0.13
|
0.59
|
2.04
|
1.86
|
0.18
|
|
EBITDA1
|
101.0
|
77.8
|
23.2
|
246.6
|
210.4
|
36.2
|
|
Adjusted EBITDA from
Continuing Operations1
|
$
97.4
|
$
70.3
|
$
27.1
|
$
246.9
|
$
270.0
|
$
(23.1)
|
|
1 Non-GAAP
financial measures; see appendix for explanations and
reconciliations.
|
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate consistent cash flows
throughout the shift in ag markets, and our debt remains at a
modest level," 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 continue to
evaluate new growth investments and acquisitions in a variety of
strategic projects. We anticipate increased spending on growth
projects in the fourth quarter and into 2025, in addition to the
Skyland investment."
The company used cash from operating activities of $2 million and generated cash from operating
activities of $489 million in the
third quarter of 2024 and 2023, respectively. Cash from operations
before working capital changes in the same periods was $86 million and $50
million, respectively. Cash spent on capital projects in the
quarter totaled $38 million, a
$4 million increase from 2023.
Third Quarter Segment Overview
Trade Results Resilient in Less Volatile Ag Markets
The Trade segment recorded pretax income of $26 million and adjusted pretax income of
$23 million for the quarter compared
to pretax income of $8
million and adjusted pretax income of $5 million in the third quarter of 2023.
Results from our grain asset footprint were better than the
prior year, due to strong elevation margins and space income,
primarily related to corn and wheat. Trade's growing specialty
ingredients business continued to benefit from recent growth
investments. The merchandising business remained profitable with
well-supplied commodity markets and limited volatility. As
expected, farmer engagement ramped up during the quarter to bring
significant old crop bushels to market and forward sell new crop in
anticipation of an early and robust harvest. For comparison, prior
year results include a $19 million
pretax loss on a foreign currency issue.
The portfolio mix of assets, ingredients and merchandising
businesses provides a solid foundation to benefit from large crops
and carry markets, as well as tight, demand-driven markets. Assets
are well-positioned for an early and large harvest, which should
allow us to buy bushels at low basis levels. Domestic specialty
ingredient demand is also expected to stay solid and should
continue to support recent capital growth investments.
Trade's third quarter adjusted EBITDA was $38 million, compared to $21 million in 2023.
Renewables had Record Quarter on Efficient Operations and
Favorable Ethanol Margins
The Renewables segment reported pretax income of $53 million and pretax income attributable to the
company of $28 million in the third
quarter. For the same period in 2023, the segment reported a pretax
income of $47 million and pretax
income attributable to the company of $26
million.
Margins on ethanol production improved year-over-year on
significantly lower corn basis in the eastern plants, despite a
reduction in ethanol board crush margins in the quarter. Production
facilities continued to operate efficiently with increased volume
and higher ethanol yields. Plant co-product values 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. All four plants completed their
semi-annual maintenance shutdowns in the third quarter. A favorable
ethanol margin environment should continue, supported by exports,
higher blending rates and continued lower corn basis levels in the
east.
Renewables had third quarter EBITDA of $65 million in 2024, compared to $60 million in 2023.
Nutrient & Industrial Improved in Seasonally Quiet
Quarter
The Nutrient & Industrial segment reported a pretax loss of
$6 million, compared to a loss of
$8 million in 2023. Overall volumes
improved during a seasonally slow third quarter, but margins in
base nutrients have reset to more normalized levels and did not
repeat the outsized margin opportunities seen in recent years. The
engineered granules business saw significant improvement in the
quarter on higher sales volume and margins, with continued focus on
operational improvements in this business. Looking forward, the
fourth quarter should benefit from high yields and an early
harvest, allowing for fall applications.
Nutrient & Industrial's third quarter EBITDA was
$5 million compared to breakeven
EBITDA in the third quarter of 2023.
Income Taxes; Corporate
The company recorded income tax expense at an effective rate of
17% for the quarter. This rate was impacted by the tax treatment of
noncontrolling interests and federal tax credits. We anticipate a
full-year adjusted effective rate of approximately 14% - 18%.
Conference Call
The company will host a webcast on Tuesday, November 5, 2024, at 11 a.m. Eastern Time, to discuss its performance
and provide its outlook for the remainder of 2024 and preliminary
views for 2025. To access the call, please dial 888-317-6003 or
412-317-6061 (elite entry number is 2387329). 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/Bz3omkN6Ver 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 in 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
September 30,
|
|
Nine months
ended
September 30,
|
|
(in thousands, except
per share data)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Sales and merchandising
revenues
|
$
2,620,988
|
|
$
3,635,691
|
|
$
8,134,410
|
|
$ 11,537,112
|
|
Cost of sales and
merchandising revenues
|
2,443,863
|
|
3,477,990
|
|
7,653,594
|
|
11,009,463
|
|
Gross profit
|
177,125
|
|
157,701
|
|
480,816
|
|
527,649
|
|
Operating,
administrative and general expenses
|
120,494
|
|
126,306
|
|
356,466
|
|
359,548
|
|
Asset
impairment
|
—
|
|
—
|
|
—
|
|
87,156
|
|
Interest expense,
net
|
8,361
|
|
8,188
|
|
21,494
|
|
38,766
|
|
Other income,
net
|
13,922
|
|
15,178
|
|
30,651
|
|
35,623
|
|
Income before income
taxes
|
62,192
|
|
38,385
|
|
133,507
|
|
77,802
|
|
Income tax
provision
|
10,731
|
|
7,862
|
|
16,911
|
|
23,710
|
|
Net income
|
51,461
|
|
30,523
|
|
116,596
|
|
54,092
|
|
Net income
attributable to noncontrolling interests
|
24,096
|
|
20,815
|
|
47,674
|
|
4,088
|
|
Net income attributable
to The Andersons, Inc.
|
$
27,365
|
|
$
9,708
|
|
$
68,922
|
|
$
50,004
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to
The Andersons, Inc.
common shareholders:
|
|
|
|
|
|
|
|
|
Basic
earnings:
|
$
0.80
|
|
$
0.29
|
|
$
2.03
|
|
$
1.48
|
|
Diluted
earnings:
|
$
0.80
|
|
$
0.28
|
|
$
2.01
|
|
$
1.46
|
|
The Andersons,
Inc.
Condensed
Consolidated Balance Sheets
(unaudited)
|
|
|
(in
thousands)
|
September 30,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
454,065
|
|
$
643,854
|
|
$
418,055
|
|
Accounts
receivable, net
|
756,618
|
|
762,549
|
|
816,686
|
|
Inventories
|
884,339
|
|
1,166,700
|
|
985,292
|
|
Commodity
derivative assets – current
|
122,326
|
|
178,083
|
|
239,595
|
|
Other current
assets
|
113,726
|
|
55,777
|
|
67,471
|
|
Total current
assets
|
2,331,074
|
|
2,806,963
|
|
2,527,099
|
|
Property, plant and
equipment, net
|
709,951
|
|
693,365
|
|
680,188
|
|
Other assets,
net
|
347,274
|
|
354,679
|
|
380,815
|
|
Total assets
|
$
3,388,299
|
|
$
3,855,007
|
|
$
3,588,102
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
debt
|
$
14,716
|
|
$
43,106
|
|
$
14,138
|
|
Trade and other
payables
|
774,347
|
|
1,055,473
|
|
822,153
|
|
Customer
prepayments and deferred revenue
|
67,899
|
|
187,054
|
|
211,867
|
|
Commodity
derivative liabilities – current
|
85,640
|
|
90,849
|
|
142,511
|
|
Current
maturities of long-term debt
|
27,727
|
|
27,561
|
|
27,535
|
|
Accrued expenses
and other current liabilities
|
207,543
|
|
232,288
|
|
189,430
|
|
Total current
liabilities
|
1,177,872
|
|
1,636,331
|
|
1,407,634
|
|
Long-term debt, less
current maturities
|
542,564
|
|
562,960
|
|
569,730
|
|
Other long-term
liabilities
|
144,855
|
|
139,329
|
|
161,652
|
|
Total
liabilities
|
1,865,291
|
|
2,338,620
|
|
2,139,016
|
|
Total equity
|
1,523,008
|
|
1,516,387
|
|
1,449,086
|
|
Total liabilities and
equity
|
$
3,388,299
|
|
$
3,855,007
|
|
$
3,588,102
|
|
The Andersons,
Inc.
Condensed
Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Nine months ended
September 30,
|
|
(in
thousands)
|
2024
|
|
2023
|
|
Operating
Activities
|
|
|
|
|
Net income
|
$
116,596
|
|
$
54,092
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
91,626
|
|
93,800
|
|
Asset
impairment
|
—
|
|
87,156
|
|
Other
|
15,146
|
|
1,347
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
3,498
|
|
406,263
|
|
Inventories
|
278,947
|
|
748,118
|
|
Commodity
derivatives
|
49,327
|
|
99,479
|
|
Other current and
non-current assets
|
(59,376)
|
|
2,048
|
|
Payables and other
current and non-current liabilities
|
(433,069)
|
|
(796,216)
|
|
Net cash provided by
operating activities
|
62,695
|
|
696,087
|
|
Investing
Activities
|
|
|
|
|
Purchases of property,
plant and equipment and capitalized software
|
(93,230)
|
|
(108,718)
|
|
Acquisition of
businesses, net of cash acquired
|
(9,561)
|
|
(24,385)
|
|
Insurance
proceeds
|
9,219
|
|
—
|
|
Proceeds from sale of a
business
|
—
|
|
10,318
|
|
Other
|
2,980
|
|
5,522
|
|
Net cash used in
investing activities
|
(90,592)
|
|
(117,263)
|
|
Financing
Activities
|
|
|
|
|
Net payments under
short-term lines of credit
|
(27,054)
|
|
(261,152)
|
|
Payments of long-term
debt
|
(20,649)
|
|
(42,734)
|
|
Distributions to
noncontrolling interest owner
|
(87,325)
|
|
(44,304)
|
|
Dividends
paid
|
(19,466)
|
|
(18,771)
|
|
Value of shares
withheld for taxes
|
(8,101)
|
|
(6,627)
|
|
Proceeds from issuance
of long-term debt
|
—
|
|
100,000
|
|
Other
|
—
|
|
(2,258)
|
|
Net cash used in
financing activities
|
(162,595)
|
|
(275,846)
|
|
Effect of exchange
rates on cash and cash equivalents
|
703
|
|
(192)
|
|
(Decrease) increase in
cash and cash equivalents
|
(189,789)
|
|
302,786
|
|
Cash and cash
equivalents at beginning of period
|
643,854
|
|
115,269
|
|
Cash and cash
equivalents at end of period
|
$
454,065
|
|
$
418,055
|
|
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)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
51,461
|
|
$
30,523
|
|
$
116,596
|
|
$
54,092
|
|
Net income
attributable to noncontrolling interests
|
24,096
|
|
20,815
|
|
47,674
|
|
4,088
|
|
Net income attributable
to The Andersons, Inc.
|
27,365
|
|
9,708
|
|
68,922
|
|
50,004
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
—
|
|
(5,643)
|
|
—
|
|
(5,643)
|
|
Gain on cost method
investment
|
—
|
|
(4,798)
|
|
—
|
|
(4,798)
|
|
Transaction related
compensation
|
1,668
|
|
1,999
|
|
8,568
|
|
4,606
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
(3,117)
|
|
(6,544)
|
|
Insurance
recoveries
|
(5,204)
|
|
—
|
|
(5,204)
|
|
(16,080)
|
|
Asset
impairment
|
—
|
|
963
|
|
—
|
|
45,413
|
|
Income tax impact of
adjustments1
|
884
|
|
2,367
|
|
632
|
|
(3,255)
|
|
Total adjusting items,
net of tax
|
(2,652)
|
|
(5,112)
|
|
879
|
|
13,699
|
|
Adjusted net income
attributable to The Andersons, Inc.
|
$
24,713
|
|
$
4,596
|
|
$
69,801
|
|
$
63,703
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to The Andersons, Inc. common
shareholders
|
$
0.80
|
|
$
0.28
|
|
$
2.01
|
|
$
1.46
|
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share
|
$
(0.08)
|
|
$
(0.15)
|
|
$
0.03
|
|
$
0.40
|
|
Adjusted diluted
earnings per share
|
$
0.72
|
|
$
0.13
|
|
$
2.04
|
|
$
1.86
|
|
|
|
|
|
|
|
|
|
|
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
September 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
1,747,715
|
|
$
745,206
|
|
$
128,067
|
|
$
—
|
|
$
2,620,988
|
|
Gross profit
|
98,776
|
|
60,375
|
|
17,974
|
|
—
|
|
177,125
|
|
Operating,
administrative and general expenses
|
75,825
|
|
8,839
|
|
24,591
|
|
11,239
|
|
120,494
|
|
Other income,
net
|
8,720
|
|
1,760
|
|
3,323
|
|
119
|
|
13,922
|
|
Income (loss) before
income taxes
|
26,266
|
|
52,583
|
|
(6,132)
|
|
(10,525)
|
|
62,192
|
|
Income attributable to
noncontrolling interests
|
—
|
|
24,096
|
|
—
|
|
—
|
|
24,096
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
26,266
|
|
$
28,487
|
|
$
(6,132)
|
|
$ (10,525)
|
|
$
38,096
|
|
Adjustments to income
(loss) before income taxes2
|
(3,536)
|
|
—
|
|
—
|
|
—
|
|
(3,536)
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
22,730
|
|
$
28,487
|
|
$
(6,132)
|
|
$ (10,525)
|
|
$
34,560
|
|
|
|
|
|
|
|
|
|
|
|
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
|
8,073
|
|
47,096
|
|
(8,452)
|
|
(8,332)
|
|
38,385
|
|
Income attributable to
noncontrolling interests
|
—
|
|
20,815
|
|
—
|
|
—
|
|
20,815
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
8,073
|
|
$
26,281
|
|
$
(8,452)
|
|
$
(8,332)
|
|
$
17,570
|
|
Adjustments to income
(loss) before income taxes2
|
(2,681)
|
|
—
|
|
—
|
|
(4,798)
|
|
(7,479)
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
5,392
|
|
$
26,281
|
|
$
(8,452)
|
|
$ (13,130)
|
|
$
10,091
|
|
|
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
|
|
Nine months ended
September 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
5,399,315
|
|
$
2,088,372
|
|
$
646,723
|
|
$
—
|
|
$
8,134,410
|
|
Gross profit
|
256,706
|
|
133,672
|
|
90,438
|
|
—
|
|
480,816
|
|
Operating,
administrative and general expenses
|
220,886
|
|
24,592
|
|
75,427
|
|
35,561
|
|
356,466
|
|
Other income (loss),
net
|
18,287
|
|
7,686
|
|
4,880
|
|
(202)
|
|
30,651
|
|
Income (loss) before
income taxes
|
37,615
|
|
114,574
|
|
15,437
|
|
(34,119)
|
|
133,507
|
|
Income attributable to
noncontrolling interests
|
—
|
|
47,674
|
|
—
|
|
—
|
|
47,674
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
37,615
|
|
$
66,900
|
|
$
15,437
|
|
$
(34,119)
|
|
$
85,833
|
|
Adjustments to income
(loss) before income taxes2
|
3,364
|
|
(3,117)
|
|
—
|
|
—
|
|
247
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
40,979
|
|
$
63,783
|
|
$
15,437
|
|
$
(34,119)
|
|
$
86,080
|
|
|
|
|
|
|
|
|
|
|
|
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
|
52,427
|
|
31,187
|
|
23,675
|
|
(29,487)
|
|
77,802
|
|
Income attributable to
noncontrolling interests
|
—
|
|
4,088
|
|
—
|
|
—
|
|
4,088
|
|
Income (loss) before
income taxes attributable to The Andersons,
Inc.1
|
$
52,427
|
|
$
27,099
|
|
$
23,675
|
|
$
(29,487)
|
|
$
73,714
|
|
Adjustments to income
(loss) before income taxes2
|
(16,154)
|
|
37,906
|
|
—
|
|
(4,798)
|
|
16,954
|
|
Adjusted income (loss)
before income taxes attributable to The Andersons,
Inc.1
|
$
36,273
|
|
$
65,005
|
|
$
23,675
|
|
$
(34,285)
|
|
$
90,668
|
|
|
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
September 30, 2024
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
26,266
|
|
$
52,583
|
|
$
(6,132)
|
|
$
(21,256)
|
|
$
51,461
|
|
Interest expense
(income)
|
5,405
|
|
713
|
|
2,838
|
|
(595)
|
|
8,361
|
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
10,731
|
|
10,731
|
|
Depreciation and
amortization
|
9,377
|
|
11,942
|
|
8,145
|
|
944
|
|
30,408
|
|
EBITDA
|
41,048
|
|
65,238
|
|
4,851
|
|
(10,176)
|
|
100,961
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
1,668
|
|
—
|
|
—
|
|
—
|
|
1,668
|
|
Insurance
recoveries
|
(5,204)
|
|
—
|
|
—
|
|
—
|
|
(5,204)
|
|
Total adjusting
items
|
(3,536)
|
|
—
|
|
—
|
|
—
|
|
(3,536)
|
|
Adjusted
EBITDA
|
$
37,512
|
|
$
65,238
|
|
$
4,851
|
|
$
(10,176)
|
|
$
97,425
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
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
|
|
EBITDA
|
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)
|
|
Gain on
deconsolidation of joint venture
|
963
|
|
—
|
|
—
|
|
—
|
|
963
|
|
Total adjusting
items
|
(2,681)
|
|
—
|
|
—
|
|
(4,798)
|
|
(7,479)
|
|
Adjusted
EBITDA
|
$
21,238
|
|
$
60,387
|
|
$
496
|
|
$
(11,812)
|
|
$
70,309
|
|
|
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, 2024
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
37,615
|
|
$
114,574
|
|
$
15,437
|
|
$
(51,030)
|
|
$
116,596
|
|
Interest expense
(income)
|
16,492
|
|
2,192
|
|
4,454
|
|
(1,644)
|
|
21,494
|
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
16,911
|
|
16,911
|
|
Depreciation and
amortization
|
27,946
|
|
35,626
|
|
23,903
|
|
4,151
|
|
91,626
|
|
EBITDA
|
82,053
|
|
152,392
|
|
43,794
|
|
(31,612)
|
|
246,627
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
8,568
|
|
—
|
|
—
|
|
—
|
|
8,568
|
|
Insurance
recoveries
|
(5,204)
|
|
—
|
|
—
|
|
—
|
|
(5,204)
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(3,117)
|
|
—
|
|
—
|
|
(3,117)
|
|
Total adjusting
items
|
3,364
|
|
(3,117)
|
|
—
|
|
—
|
|
247
|
|
Adjusted
EBITDA
|
$
85,417
|
|
$
149,275
|
|
$
43,794
|
|
$
(31,612)
|
|
$
246,874
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
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
|
|
EBITDA
|
108,321
|
|
76,059
|
|
50,842
|
|
(24,854)
|
|
210,368
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
4,606
|
|
—
|
|
—
|
|
—
|
|
4,606
|
|
Insurance
recoveries
|
(16,080)
|
|
—
|
|
—
|
|
—
|
|
(16,080)
|
|
Gain on sale of
assets
|
(5,643)
|
|
—
|
|
—
|
|
—
|
|
(5,643)
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
|
Gain on cost method
investment
|
—
|
|
—
|
|
—
|
|
(4,798)
|
|
(4,798)
|
|
Asset
impairment
|
963
|
|
87,156
|
|
—
|
|
—
|
|
88,119
|
|
Total adjusting
items
|
(16,154)
|
|
80,612
|
|
—
|
|
(4,798)
|
|
59,660
|
|
Adjusted
EBITDA
|
$
92,167
|
|
$
156,671
|
|
$
50,842
|
|
$
(29,652)
|
|
$
270,028
|
|
|
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
September 30, 2024
|
|
(in
thousands)
|
December
31, 2023
|
|
March 31,
2024
|
|
June 30,
2024
|
|
September
30, 2024
|
|
|
Net income
|
$
78,437
|
|
$
12,665
|
|
$
52,470
|
|
$
51,461
|
|
$
195,033
|
|
Interest
expense
|
8,101
|
|
6,522
|
|
6,611
|
|
8,361
|
|
29,595
|
|
Tax
provision
|
13,324
|
|
1,303
|
|
4,876
|
|
10,731
|
|
30,234
|
|
Depreciation and
amortization
|
31,306
|
|
30,949
|
|
30,269
|
|
30,408
|
|
122,932
|
|
EBITDA
|
131,168
|
|
51,439
|
|
94,226
|
|
100,961
|
|
377,794
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
3,212
|
|
2,852
|
|
4,049
|
|
1,668
|
|
11,781
|
|
Insurance
recoveries
|
—
|
|
—
|
|
—
|
|
(5,204)
|
|
(5,204)
|
|
Gain on
deconsolidation of joint venture
|
—
|
|
(3,117)
|
|
—
|
|
—
|
|
(3,117)
|
|
Goodwill
impairment
|
686
|
|
—
|
|
—
|
|
—
|
|
686
|
|
Total adjusting
items
|
3,898
|
|
(265)
|
|
4,049
|
|
(3,536)
|
|
4,146
|
|
Adjusted
EBITDA
|
$
135,066
|
|
$
51,174
|
|
$
98,275
|
|
$
97,425
|
|
$
381,940
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended,
|
|
Twelve months
ended
September 30, 2023
|
|
December
31, 2022
|
|
March 31,
2023
|
|
June 30,
2023
|
|
September
30, 2023
|
|
|
Net income
(loss)
|
$
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
|
78,666
|
|
(16,156)
|
|
148,736
|
|
77,788
|
|
289,034
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Insured inventory
expenses (recoveries)
|
15,993
|
|
(17,390)
|
|
1,310
|
|
—
|
|
(87)
|
|
Transaction related
compensation
|
—
|
|
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
|
9,000
|
|
87,156
|
|
—
|
|
963
|
|
97,119
|
|
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
|
$
103,659
|
|
$
55,278
|
|
$
144,441
|
|
$
70,309
|
|
$
373,687
|
|
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)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash (used in) provided
by operating activities
|
$
(2,112)
|
|
$
488,683
|
|
$
62,695
|
|
$
696,087
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(11,786)
|
|
198,396
|
|
3,498
|
|
406,263
|
|
Inventories
|
(198,776)
|
|
13,263
|
|
278,947
|
|
748,118
|
|
Commodity
derivatives
|
13,317
|
|
(3,274)
|
|
49,327
|
|
99,479
|
|
Other current and
non-current assets
|
(8,789)
|
|
3,295
|
|
(59,376)
|
|
2,048
|
|
Payables and other
current and non-current liabilities
|
117,728
|
|
214,870
|
|
(433,069)
|
|
(796,216)
|
|
Total changes in
operating assets and liabilities
|
(88,306)
|
|
426,550
|
|
(160,673)
|
|
459,692
|
|
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
|
$
86,194
|
|
$
50,045
|
|
$
223,368
|
|
$
208,227
|
|
|
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.
