MAUMEE,
Ohio, Feb. 14, 2023 /CNW/ -- The Andersons,
Inc. (Nasdaq: ANDE) announces financial results for the fourth
quarter ended December 31, 2022.
Fourth Quarter Highlights:
- Company reported net income from continuing operations
attributable to The Andersons of $15
million, or $0.44 per diluted
share, and adjusted net income from continuing operations of
$34 million, or $0.98 per diluted share
- EBITDA from continuing operations was $79 million for the quarter, and adjusted EBITDA
from continuing operations was $104
million
- Trade reported pretax income of $27
million and record adjusted pretax income of $52 million, driven by strong elevation margins
and merchandising
- Renewables reported pretax income of $19 million and pretax income attributable to the
company of $13 million on solid plant
performance and good merchandising
"We finished the year with strong fourth quarter results,
particularly in our Trade segment. Our merchandising teams and
grain assets had outstanding results from improving basis after
harvest, sales into destinations experiencing crop deficits,
storage income and rising propane values. With another record
quarter, our Trade business is positioned to execute well in these
favorable markets with continuing strong ag fundamentals," said
President and CEO Pat
Bowe.
"We enjoyed very good results in renewable fuels on solid
renewable feedstock values but didn't experience the outsized
ethanol margins that occurred in the fourth quarter of 2021 due to
supply chain disruptions. The ethanol crush margin outlook is
currently challenged but we expect this to improve with seasonal
maintenance shutdowns and increased driving demand," added Bowe.
"Our Plant Nutrient segment had mixed results with good fall
applications and farmer engagement on specialty liquids but more
limited early orders of granular fertilizer as buyers are waiting
for declining prices to stabilize. With strong farm income, this
sets us up well for a higher volume spring planting season although
likely at more normalized margins. Our growth project pipeline
remains robust, and we expect to close several transactions and
continue making growth investments in 2023."
$ in millions,
except per share
amounts
|
|
|
|
|
Q4
2022
|
Q4
2021
|
Variance
|
YTD
2022
|
YTD
2021
|
Variance
|
Pretax Income from
Continuing
Operations
|
$
31
|
$
77
|
$
(46)
|
$
195
|
$
161
|
$
34
|
Pretax Income from
Continuing
Operations Attributable to the
Company1
|
25
|
44
|
(19)
|
159
|
129
|
30
|
Adjusted Pretax
Income (Loss)
from Continuing Operations
Attributable to the Company1
|
50
|
53
|
(3)
|
184
|
127
|
57
|
Trade1
|
52
|
27
|
25
|
121
|
83
|
38
|
Renewables1
|
13
|
27
|
(14)
|
72
|
49
|
23
|
Plant
Nutrient
|
2
|
16
|
(14)
|
39
|
43
|
(4)
|
Other1
|
(16)
|
(17)
|
1
|
(48)
|
(48)
|
—
|
Net Income from
Continuing
Operations Attributable to the
Company
|
15
|
33
|
(18)
|
119
|
100
|
19
|
Adjusted Net Income
from
Continuing Operations Attributable
to the Company1
|
34
|
39
|
(5)
|
139
|
98
|
41
|
Diluted Earnings Per
Share from
Continuing Operations (EPS)
|
0.44
|
0.95
|
(0.51)
|
3.46
|
2.94
|
0.52
|
Adjusted Diluted
Earnings Per
Share from Continuing Operations1
|
0.98
|
1.14
|
(0.16)
|
4.05
|
2.89
|
1.16
|
EBITDA from
Continuing
Operations1
|
79
|
122
|
(43)
|
386
|
355
|
31
|
Adjusted EBITDA from
Continuing
Operations1
|
$
104
|
$
130
|
$
(26)
|
$
412
|
$
353
|
$
59
|
1 Non-GAAP
financial measures; see appendix for explanations and
reconciliations.
|
Cash, Liquidity and Long-Term Debt Management
"Strong operating cash flows continued into the fourth quarter,
and we have significantly reduced short term borrowings as much of
our grain acquired during harvest include extended payments to
producers," said Executive Vice President and CFO Brian Valentine. "We repurchased $5 million
in common shares in the quarter. With a strong balance sheet and a
long-term debt to EBITDA ratio well below our target of 2.5 times,
we are well-positioned to fund good growth projects with
appropriate returns."
The company generated $440 million
and used $170 million in cash from
operating activities for the fourth quarters of 2022 and 2021,
respectively, and generated $90
million and $84 million in
cash from operations before working capital changes for the same
periods, respectively.
Fourth Quarter Segment Overview
Trade Posts Record Fourth Quarter Driven by Grain Assets and
Merchandising Performance
Trade recorded pretax income of $27
million and adjusted pretax income of $52 million for the quarter, 50% more than pretax
income of $18 million and nearly
double adjusted pretax income of $27
million in the fourth quarter of the prior year.
Strong elevation margins in core grain assets and merchandising
drove the significant improvement. The quarter over quarter
increase reflects rising basis values, storage income, and healthy
margins on shipments into grain deficit destinations. Our
international merchandising business also continued to perform well
in the fourth quarter.
Ag supply chain opportunities are expected to remain very strong
in 2023. Continued worldwide demand coupled with supply uncertainty
due to the ongoing war in Ukraine
and potential weather impacts in global grain production regions,
continues to keep commodity prices relatively high and provide
ongoing merchandising opportunities.
An adjustment was made for an asset impairment charge of
$9 million due to a reorganization of
western US grain assets. Earnings were also adjusted for a
$16 million charge for insured
inventory that was damaged in a late December fire.
Trade's fourth quarter adjusted EBITDA was $72 million, which is 71% higher than fourth
quarter 2021 adjusted EBITDA of $42
million. Full year adjusted EBITDA increased from
$151 million in 2021 to a record
$199 million in 2022, primarily as a
result of improved elevation margins and outstanding merchandising
results.
Renewables Posts Another Good Quarter
The Renewables segment reported pretax income of $19 million and pretax income attributable to the
company of $13 million in the fourth
quarter compared to record pretax income of $59 million and pretax income attributable to the
company of $27 million in the same
period of the prior year. Ethanol board crush margins for the 2022
fourth quarter were down over $0.90/gallon from the very strong fourth quarter
of 2021. Renewable diesel feedstock merchandising results improved
with the volume merchandised more than double the fourth quarter of
2021.
Sales volumes for ethanol, corn oil, and feed ingredients were
up, driven by higher production and additional third-party sales
from the merchandising business. Spot ethanol crush margins have
declined into 2023 and are expected to seasonally move upward with
driving demand. Corn oil demand is expected to remain high and
merchandising of low-carbon-intensive renewable feedstocks should
remain strong as additional renewable diesel facilities begin
operations driving significant growth.
Renewables recorded EBITDA of $36
million in the fourth quarter of 2022, compared to 2021
fourth quarter EBITDA of $78 million.
For the full year, Renewables recorded EBITDA of $180 million in 2022, an increase of $14 million from 2021.
Plant Nutrient Declines from Record Prior Year on Lower
Demand and Falling Prices
Plant Nutrient recorded pretax income of $2 million in the fourth quarter compared to
record pretax income of $16 million
in the same period of 2021. Falling fertilizer prices have likely
shifted some demand from the fourth quarter of 2022 into 2023 as
buyers wait for prices to moderate. Strong farmer income and lower
prices are expected to drive higher volumes of agricultural
fertilizers in the spring season, albeit at more normalized
margins.
Plant Nutrient's current quarter EBITDA was $11 million compared to 2021 fourth quarter
EBITDA of $24 million. For the full
year, Plant Nutrient recorded EBITDA of $73
million in 2022, comparable to the prior year.
Conference Call
The company will host a webcast on Wednesday, February 15, 2023, at 11 a.m. EST, to discuss its performance and
provide its outlook for 2023. To access the call, please dial
888-317-6003 or 412-317-6061 (international toll) and use elite
entry number 7095205. 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/OlgR2D825A0 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,
the ongoing economic impacts from the war in Ukraine, 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 net income from continuing
operations, pretax income from continuing operations or income
(loss) before income taxes 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., having been named 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 plant nutrient
sectors. Guided by its Statement of Principles, The Andersons is
committed to providing extraordinary service to its customers,
helping its employees improve, supporting its communities, and
increasing the value of the company. For more information, please
visit www.andersonsinc.com.
The Andersons,
Inc. Condensed Consolidated Statements of
Operations (unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in thousands, except
per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Sales and merchandising
revenues
|
$
4,677,488
|
|
$ 3,782,702
|
|
$
17,325,384
|
|
$
12,612,050
|
Cost of sales and
merchandising revenues
|
4,507,465
|
|
3,588,688
|
|
16,641,220
|
|
12,019,353
|
Gross profit
|
170,023
|
|
194,014
|
|
684,164
|
|
592,697
|
Operating,
administrative and general expenses
|
136,471
|
|
119,240
|
|
466,556
|
|
432,073
|
Interest expense,
net
|
14,087
|
|
8,444
|
|
56,849
|
|
37,292
|
Other income,
net
|
11,638
|
|
10,306
|
|
33,823
|
|
37,438
|
Income before income
taxes from continuing operations
|
31,103
|
|
76,636
|
|
194,582
|
|
160,770
|
Income tax provision
from continuing operations
|
9,933
|
|
11,163
|
|
39,628
|
|
29,228
|
Net income from
continuing operations
|
21,170
|
|
65,473
|
|
154,954
|
|
131,542
|
Income (loss) from
discontinued operations, net of income taxes
|
(6,074)
|
|
(3,129)
|
|
12,025
|
|
4,324
|
Net income
|
15,096
|
|
62,344
|
|
166,979
|
|
135,866
|
Net income
attributable to the noncontrolling interest
|
6,072
|
|
32,702
|
|
35,899
|
|
31,880
|
Net income attributable
to The Andersons, Inc.
|
$
9,024
|
|
$ 29,642
|
|
$
131,080
|
|
$
103,986
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to
The Andersons, Inc.
common shareholders:
|
|
|
|
|
|
|
|
Basic earnings
(loss):
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.45
|
|
$
0.98
|
|
$
3.53
|
|
$
2.99
|
Discontinued
operations
|
(0.18)
|
|
(0.09)
|
|
0.36
|
|
0.13
|
|
$
0.27
|
|
$
0.89
|
|
$
3.89
|
|
$
3.12
|
Diluted earnings
(loss):
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.44
|
|
$
0.95
|
|
$
3.46
|
|
$
2.94
|
Discontinued
operations
|
(0.18)
|
|
(0.09)
|
|
0.35
|
|
0.13
|
|
$
0.26
|
|
$
0.86
|
|
$
3.81
|
|
$
3.07
|
The Andersons,
Inc. Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
December 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
115,269
|
|
$
216,444
|
Accounts receivable,
net
|
1,248,878
|
|
835,180
|
Inventories
|
1,731,725
|
|
1,814,538
|
Commodity derivative
assets – current
|
295,588
|
|
410,813
|
Current assets
held-for-sale
|
2,871
|
|
20,885
|
Other current
assets
|
71,622
|
|
74,468
|
Total current
assets
|
3,465,953
|
|
3,372,328
|
Other
assets:
|
|
|
|
Goodwill
|
129,342
|
|
129,342
|
Other intangible
assets, net
|
100,907
|
|
117,137
|
Right of use assets,
net
|
61,890
|
|
52,146
|
Other assets
held-for-sale
|
—
|
|
43,169
|
Other assets,
net
|
87,175
|
|
69,068
|
Total other
assets
|
379,314
|
|
410,862
|
Property, plant and
equipment, net
|
762,729
|
|
786,029
|
Total assets
|
$
4,607,996
|
|
$
4,569,219
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
272,575
|
|
$
501,792
|
Trade and other
payables
|
1,423,633
|
|
1,199,324
|
Customer prepayments
and deferred revenue
|
370,524
|
|
358,119
|
Commodity derivative
liabilities – current
|
98,519
|
|
128,911
|
Current maturities of
long-term debt
|
110,155
|
|
32,256
|
Current liabilities
held-for-sale
|
—
|
|
13,379
|
Accrued expenses and
other current liabilities
|
245,916
|
|
230,148
|
Total current
liabilities
|
2,521,322
|
|
2,463,929
|
Long-term lease
liabilities
|
37,147
|
|
31,322
|
Long-term debt, less
current maturities
|
492,518
|
|
600,487
|
Deferred income
taxes
|
64,080
|
|
71,127
|
Other long-term
liabilities held-for-sale
|
—
|
|
16,119
|
Other long-term
liabilities
|
63,160
|
|
78,531
|
Total
liabilities
|
3,178,227
|
|
3,261,515
|
Total equity
|
1,429,769
|
|
1,307,704
|
Total liabilities and
equity
|
$
4,607,996
|
|
$
4,569,219
|
The Andersons,
Inc. Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Three months
ended December
31,
|
|
Twelve months
ended
December 31,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
21,170
|
|
$
65,473
|
|
$
154,954
|
|
$
131,542
|
Income from
discontinued operations, net of income taxes
|
(6,074)
|
|
(3,129)
|
|
12,025
|
|
4,324
|
Net income
|
15,096
|
|
62,344
|
|
166,979
|
|
135,866
|
Adjustments to
reconcile net income to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
33,476
|
|
36,797
|
|
134,742
|
|
178,934
|
Bad debt expense,
net
|
973
|
|
2,419
|
|
6,001
|
|
237
|
Equity in losses
(earnings) of affiliates, net of dividends
|
74
|
|
(2,453)
|
|
5,671
|
|
(4,842)
|
Loss (gain) on sales
of assets, net
|
1,706
|
|
321
|
|
(7,148)
|
|
(6,184)
|
Stock-based
compensation expense
|
3,495
|
|
4,311
|
|
11,192
|
|
11,038
|
Deferred federal
income tax
|
810
|
|
(10,893)
|
|
(20,009)
|
|
(104,618)
|
Gain on sale of
business from continuing operations
|
—
|
|
—
|
|
—
|
|
(14,619)
|
(Gain) loss on sale of
business from discontinued operations
|
—
|
|
—
|
|
(27,091)
|
|
1,491
|
Asset
impairment
|
11,818
|
|
8,947
|
|
11,818
|
|
8,947
|
Damaged
inventory
|
17,328
|
|
—
|
|
17,328
|
|
—
|
Other
|
5,495
|
|
141
|
|
15,550
|
|
10,545
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
(250,537)
|
|
(94,100)
|
|
(391,403)
|
|
(184,002)
|
Inventories
|
(179,995)
|
|
(794,938)
|
|
56,859
|
|
(528,073)
|
Commodity
derivatives
|
170,300
|
|
51,553
|
|
65,399
|
|
(107,188)
|
Other current and
non-current assets
|
8,936
|
|
(113,046)
|
|
10,936
|
|
(116,403)
|
Payables and other
current and non-current liabilities
|
601,512
|
|
678,480
|
|
230,293
|
|
667,821
|
Net cash provided by
(used in) operating activities
|
440,487
|
|
(170,117)
|
|
287,117
|
|
(51,050)
|
Investing
Activities
|
|
|
|
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(20,245)
|
|
(11,425)
|
|
(20,245)
|
|
(11,425)
|
Purchases of property,
plant and equipment and capitalized software
|
(36,037)
|
|
(23,036)
|
|
(108,284)
|
|
(75,766)
|
Proceeds from sale of
assets
|
497
|
|
509
|
|
5,307
|
|
4,508
|
Purchase of
investments
|
—
|
|
(250)
|
|
(2,105)
|
|
(6,243)
|
Proceeds from sale of
business from continuing operations
|
—
|
|
—
|
|
5,171
|
|
18,130
|
Proceeds from sale of
business from discontinued operations
|
—
|
|
—
|
|
56,302
|
|
543,102
|
Purchases of Rail
assets
|
(3,994)
|
|
—
|
|
(31,458)
|
|
(6,039)
|
Proceeds from sale of
Rail assets
|
—
|
|
445
|
|
36,706
|
|
19,150
|
Other
|
3,958
|
|
1,482
|
|
5,704
|
|
1,831
|
Net cash (used in)
provided by investing activities
|
(55,821)
|
|
(32,275)
|
|
(52,902)
|
|
487,248
|
Financing
Activities
|
|
|
|
|
|
|
|
Net receipts (payments)
under short-term lines of credit
|
(382,591)
|
|
218,384
|
|
(21,273)
|
|
(105,895)
|
Proceeds from issuance
of short-term debt
|
—
|
|
—
|
|
350,000
|
|
608,250
|
Payments of short-term
debt
|
—
|
|
—
|
|
(550,000)
|
|
(408,250)
|
Proceeds from issuance
of long-term debt
|
—
|
|
16,200
|
|
—
|
|
203,000
|
Payments of long-term
debt
|
(7,460)
|
|
(45,206)
|
|
(30,045)
|
|
(530,733)
|
Contributions from
noncontrolling interest owner
|
2,450
|
|
—
|
|
4,900
|
|
4,655
|
Distributions to
noncontrolling interest owner
|
(9,980)
|
|
—
|
|
(44,910)
|
|
(25)
|
Payments of debt
issuance costs
|
(306)
|
|
(633)
|
|
(8,108)
|
|
(2,692)
|
Dividends
paid
|
(6,347)
|
|
(6,243)
|
|
(24,609)
|
|
(23,746)
|
Proceeds from exercises
of stock options
|
—
|
|
6,667
|
|
5,024
|
|
6,667
|
Common stock
repurchased
|
(5,952)
|
|
—
|
|
(12,721)
|
|
—
|
Other
|
(33)
|
|
12,709
|
|
(2,988)
|
|
—
|
Net cash (used in)
provided by financing activities
|
(410,219)
|
|
201,878
|
|
(334,730)
|
|
(248,769)
|
Effect of exchange
rates on cash and cash equivalents
|
51
|
|
84
|
|
(660)
|
|
(108)
|
(Decrease) increase in
cash and cash equivalents
|
(25,502)
|
|
(430)
|
|
(101,175)
|
|
187,321
|
Cash and cash
equivalents at beginning of year
|
140,771
|
|
216,874
|
|
216,444
|
|
29,123
|
Cash and cash
equivalents at end of year
|
$
115,269
|
|
$
216,444
|
|
$
115,269
|
|
$
216,444
|
The Andersons,
Inc. Adjusted Net Income Attributable to The Andersons,
Inc. A non-GAAP financial
measure (unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in thousands, except
per share data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income from
continuing operations
|
$
21,170
|
|
$
65,473
|
|
$ 154,954
|
|
$ 131,542
|
Net income
attributable to noncontrolling interests
|
6,072
|
|
32,702
|
|
35,899
|
|
31,880
|
Net income from
continuing operations attributable to The
Andersons, Inc.
|
15,098
|
|
32,771
|
|
119,055
|
|
99,662
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory
damage
|
15,993
|
|
—
|
|
15,993
|
|
—
|
Asset
impairment
|
9,000
|
|
8,321
|
|
9,000
|
|
8,321
|
Impairment on equity
method and cost method investments
|
—
|
|
—
|
|
4,455
|
|
2,784
|
Gain on sale of frac
sand assets
|
—
|
|
—
|
|
(3,762)
|
|
—
|
Transaction related
stock compensation
|
—
|
|
274
|
|
—
|
|
1,274
|
Gain on sale of a
business
|
—
|
|
—
|
|
—
|
|
(14,619)
|
Income tax impact of
adjustments1
|
(6,248)
|
|
(2,148)
|
|
(5,308)
|
|
561
|
Total adjusting items,
net of tax
|
18,745
|
|
6,447
|
|
20,378
|
|
(1,679)
|
Adjusted net income
from continuing operations
attributable to The
Andersons, Inc.
|
$
33,843
|
|
$
39,218
|
|
$ 139,433
|
|
$
97,983
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to The Andersons, Inc.
common shareholders from continuing operations
|
$
0.44
|
|
$
0.95
|
|
$
3.46
|
|
$
2.94
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share
from continuing
operations
|
$
0.54
|
|
$
0.19
|
|
$
0.59
|
|
$
(0.05)
|
Adjusted diluted
earnings per share attributable to The Andersons,
Inc. common shareholders from continuing operations
|
$
0.98
|
|
$
1.14
|
|
$
4.05
|
|
$
2.89
|
|
1 The
income tax impact of adjustments is taken at the statutory tax rate
of 25% with the exception of the impairment on the equity method
investment of $4.5 million for the twelve months ended December 31,
2022, which had no income tax impact.
|
|
Adjusted net income
(loss) attributable to The Andersons, Inc. from continuing
operations reflects reported net income (loss) available to The
Andersons, Inc. common shareholders from continuing operations
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)
attributable to The Andersons, Inc. from continuing operations 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 attributable to The Andersons, Inc. and
Diluted earnings 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
|
|
Plant
Nutrient
|
|
Other
|
|
Total
|
Three months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
3,624,563
|
|
$ 797,818
|
|
$ 255,107
|
|
$
—
|
|
$
4,677,488
|
Gross profit
|
113,726
|
|
27,239
|
|
29,058
|
|
—
|
|
170,023
|
Operating,
administrative and general expenses
|
86,725
|
|
7,197
|
|
25,660
|
|
16,889
|
|
136,471
|
Other income (loss),
net
|
10,513
|
|
981
|
|
313
|
|
(169)
|
|
11,638
|
Income (loss) before
income taxes from continuing operations
|
27,232
|
|
18,582
|
|
1,717
|
|
(16,428)
|
|
31,103
|
Income attributable to
the noncontrolling interests
|
—
|
|
6,072
|
|
—
|
|
—
|
|
6,072
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
27,232
|
|
$
12,510
|
|
$
1,717
|
|
$ (16,428)
|
|
$
25,031
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
24,993
|
|
—
|
|
—
|
|
—
|
|
24,993
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
52,225
|
|
$
12,510
|
|
$
1,717
|
|
$ (16,428)
|
|
$
50,024
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
2,781,849
|
|
$ 766,675
|
|
$ 234,178
|
|
$
—
|
|
$
3,782,702
|
Gross profit
|
87,098
|
|
67,676
|
|
39,240
|
|
—
|
|
194,014
|
Operating,
administrative and general expenses
|
73,891
|
|
7,772
|
|
22,697
|
|
14,880
|
|
119,240
|
Other income (loss),
net
|
9,050
|
|
1,152
|
|
383
|
|
(279)
|
|
10,306
|
Income (loss) before
income taxes from continuing operations
|
18,315
|
|
59,206
|
|
15,929
|
|
(16,814)
|
|
76,636
|
Income attributable to
the noncontrolling interests
|
—
|
|
32,702
|
|
—
|
|
—
|
|
32,702
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
18,315
|
|
$
26,504
|
|
$
15,929
|
|
$ (16,814)
|
|
$
43,934
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
8,595
|
|
—
|
|
—
|
|
—
|
|
8,595
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
26,910
|
|
$
26,504
|
|
$
15,929
|
|
$ (16,814)
|
|
$
52,529
|
|
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
|
|
Plant
Nutrient
|
|
Other
|
|
Total
|
Twelve months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
13,047,537
|
|
$
3,178,539
|
|
$
1,099,308
|
|
$
—
|
|
$
17,325,384
|
Gross profit
|
407,707
|
|
126,995
|
|
149,462
|
|
—
|
|
684,164
|
Operating,
administrative and general expenses
|
282,592
|
|
30,730
|
|
106,003
|
|
47,231
|
|
466,556
|
Other income (loss),
net
|
12,661
|
|
20,731
|
|
3,001
|
|
(2,570)
|
|
33,823
|
Income (loss) before
income taxes from continuing operations
|
95,225
|
|
108,221
|
|
39,162
|
|
(48,026)
|
|
194,582
|
Income attributable to
the noncontrolling interests
|
—
|
|
35,899
|
|
—
|
|
—
|
|
35,899
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
95,225
|
|
$
72,322
|
|
$
39,162
|
|
$ (48,026)
|
|
$ 158,683
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
25,686
|
|
—
|
|
—
|
|
—
|
|
25,686
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$ 120,911
|
|
$
72,322
|
|
$
39,162
|
|
$ (48,026)
|
|
$ 184,369
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
9,304,357
|
|
$
2,440,798
|
|
$ 866,895
|
|
$
—
|
|
$
12,612,050
|
Gross profit
|
335,682
|
|
116,626
|
|
140,389
|
|
—
|
|
592,697
|
Operating,
administrative and general expenses
|
259,926
|
|
31,019
|
|
95,547
|
|
45,581
|
|
432,073
|
Other income (loss),
net
|
35,878
|
|
3,200
|
|
2,128
|
|
(3,768)
|
|
37,438
|
Income (loss) before
income taxes from continuing operations
|
87,946
|
|
81,205
|
|
42,615
|
|
(50,996)
|
|
160,770
|
Income attributable to
the noncontrolling interests
|
—
|
|
31,880
|
|
—
|
|
—
|
|
31,880
|
Income (loss) before
income taxes from continuing operations
attributable to The Andersons, Inc.1
|
$
87,946
|
|
$
49,325
|
|
$
42,615
|
|
$ (50,996)
|
|
$ 128,890
|
Adjustments to income
(loss) before income taxes from
continuing operations2
|
(5,024)
|
|
—
|
|
—
|
|
2,784
|
|
(2,240)
|
Adjusted income (loss)
before income taxes from continuing
operations attributable to The Andersons,
Inc.1
|
$
82,922
|
|
$
49,325
|
|
$
42,615
|
|
$ (48,212)
|
|
$ 126,650
|
|
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)
|
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
Company
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Plant
Nutrient
|
|
Other
|
|
Total
|
|
Rail
|
|
Three months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
27,232
|
|
$
18,582
|
|
$
1,717
|
|
$
(26,361)
|
|
$
21,170
|
|
$
(6,074)
|
|
$
15,096
|
Interest expense
(income)
|
10,282
|
|
2,441
|
|
1,994
|
|
(630)
|
|
14,087
|
|
—
|
|
14,087
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
9,933
|
|
9,933
|
|
3,943
|
|
13,876
|
Depreciation and
amortization
|
9,054
|
|
15,443
|
|
6,834
|
|
2,145
|
|
33,476
|
|
—
|
|
33,476
|
EBITDA
|
46,568
|
|
36,466
|
|
10,545
|
|
(14,913)
|
|
78,666
|
|
(2,131)
|
|
76,535
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
9,000
|
|
—
|
|
—
|
|
—
|
|
9,000
|
|
—
|
|
9,000
|
Inventory
damage
|
15,993
|
|
—
|
|
—
|
|
—
|
|
15,993
|
|
—
|
|
15,993
|
Total adjusting
items
|
24,993
|
|
—
|
|
—
|
|
—
|
|
24,993
|
|
—
|
|
24,993
|
Adjusted
EBITDA
|
$
71,561
|
|
$
36,466
|
|
$
10,545
|
|
$
(14,913)
|
|
$
103,659
|
|
$
(2,131)
|
|
$
101,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 18,315
|
|
$
59,206
|
|
$
15,929
|
|
$ (27,977)
|
|
$
65,473
|
|
$
(3,129)
|
|
$
62,344
|
Interest
expense
|
3,942
|
|
1,850
|
|
997
|
|
1,655
|
|
8,444
|
|
69
|
|
8,513
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
11,163
|
|
11,163
|
|
3,759
|
|
14,922
|
Depreciation and
amortization
|
11,018
|
|
16,934
|
|
6,612
|
|
2,233
|
|
36,797
|
|
—
|
|
36,797
|
EBITDA
|
33,275
|
|
77,990
|
|
23,538
|
|
(12,926)
|
|
121,877
|
|
699
|
|
122,576
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related
stock compensation
|
274
|
|
—
|
|
—
|
|
—
|
|
274
|
|
—
|
|
274
|
Asset
impairment
|
8,321
|
|
—
|
|
—
|
|
—
|
|
8,321
|
|
—
|
|
8,321
|
Total adjusting
items
|
8,595
|
|
—
|
|
—
|
|
—
|
|
8,595
|
|
—
|
|
8,595
|
Adjusted
EBITDA
|
$ 41,870
|
|
$
77,990
|
|
$
23,538
|
|
$ (12,926)
|
|
$
130,472
|
|
$
699
|
|
$
131,171
|
The Andersons,
Inc. Adjusted Earnings Before Interest, Taxes,
Depreciation, and Amortization (EBITDA) A non-GAAP
financial measure (unaudited)
|
|
|
Continuing
Operations
|
|
Discontinued
Operations
|
|
Total
Company
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Plant
Nutrient
|
|
Other
|
|
Total
|
|
Rail
|
|
Twelve months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
95,225
|
|
$ 108,221
|
|
$
39,162
|
|
$
(87,654)
|
|
$
154,954
|
|
$
12,025
|
|
$
166,979
|
Interest expense
(income)
|
42,551
|
|
8,775
|
|
7,298
|
|
(1,775)
|
|
56,849
|
|
—
|
|
56,849
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
39,628
|
|
39,628
|
|
13,112
|
|
52,740
|
Depreciation and
amortization
|
35,953
|
|
63,458
|
|
26,634
|
|
8,697
|
|
134,742
|
|
—
|
|
134,742
|
EBITDA
|
173,729
|
|
180,454
|
|
73,094
|
|
(41,104)
|
|
386,173
|
|
25,137
|
|
411,310
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of frac
sand assets
|
(3,762)
|
|
—
|
|
—
|
|
—
|
|
(3,762)
|
|
—
|
|
(3,762)
|
Asset
impairment
|
9,000
|
|
—
|
|
—
|
|
—
|
|
9,000
|
|
—
|
|
9,000
|
Impairment on equity
method and cost
method investments
|
4,455
|
|
—
|
|
—
|
|
—
|
|
4,455
|
|
—
|
|
4,455
|
Inventory
damage
|
15,993
|
|
—
|
|
—
|
|
—
|
|
15,993
|
|
—
|
|
15,993
|
Total adjusting
items
|
25,686
|
|
—
|
|
—
|
|
—
|
|
25,686
|
|
—
|
|
25,686
|
Adjusted
EBITDA
|
$
199,415
|
|
$ 180,454
|
|
$
73,094
|
|
$
(41,104)
|
|
$
411,859
|
|
$
25,137
|
|
$
436,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
87,946
|
|
$
81,205
|
|
$
42,615
|
|
$ (80,224)
|
|
$
131,542
|
|
$
4,324
|
|
$
135,866
|
Interest
expense
|
23,688
|
|
7,602
|
|
4,355
|
|
1,647
|
|
37,292
|
|
8,783
|
|
46,075
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
29,228
|
|
29,228
|
|
3,331
|
|
32,559
|
Depreciation and
amortization
|
44,335
|
|
77,542
|
|
25,957
|
|
9,340
|
|
157,174
|
|
21,760
|
|
178,934
|
EBITDA
|
155,969
|
|
166,349
|
|
72,927
|
|
(40,009)
|
|
355,236
|
|
38,198
|
|
393,434
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related
stock compensation
|
1,274
|
|
—
|
|
—
|
|
—
|
|
1,274
|
|
—
|
|
1,274
|
Asset
impairment
|
8,321
|
|
—
|
|
—
|
|
—
|
|
8,321
|
|
—
|
|
8,321
|
Impairment on equity
method and cost
method investments
|
—
|
|
—
|
|
—
|
|
2,784
|
|
2,784
|
|
—
|
|
2,784
|
Gain on sale of a
business
|
(14,619)
|
|
—
|
|
—
|
|
—
|
|
(14,619)
|
|
—
|
|
(14,619)
|
Total adjusting
items
|
(5,024)
|
|
—
|
|
—
|
|
2,784
|
|
(2,240)
|
|
—
|
|
(2,240)
|
Adjusted
EBITDA
|
$
150,945
|
|
$ 166,349
|
|
$
72,927
|
|
$ (37,225)
|
|
$
352,996
|
|
$
38,198
|
|
$
391,194
|
|
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. Cash from Operations Before Working Capital
Changes A non-GAAP financial
measure (unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash provided by (used
in) operating activities
|
$ 440,487
|
|
$
(170,117)
|
|
$ 287,117
|
|
$ (51,050)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
(250,537)
|
|
(94,100)
|
|
(391,403)
|
|
(184,002)
|
Inventories
|
(179,995)
|
|
(794,938)
|
|
56,859
|
|
(528,073)
|
Commodity
derivatives
|
170,300
|
|
51,553
|
|
65,399
|
|
(107,188)
|
Other current and
non-current assets
|
8,936
|
|
(113,046)
|
|
10,936
|
|
(116,403)
|
Payables and other
current and non-current liabilities
|
601,512
|
|
678,480
|
|
230,293
|
|
667,821
|
Total changes in
operating assets and liabilities
|
350,216
|
|
(272,051)
|
|
(27,916)
|
|
(267,845)
|
Adjusting items
impacting cash from operations before
working capital
changes:
|
|
|
|
|
|
|
|
Changes in CARES Act
tax refund receivable
|
—
|
|
—
|
|
—
|
|
27,697
|
Changes in deferred
income taxes as a result of the
Rail leasing
sale
|
—
|
|
(95,097)
|
|
—
|
|
—
|
Taxes paid as a result
of the Rail leasing sale
|
—
|
|
77,537
|
|
—
|
|
77,537
|
Cash from operations
before working capital changes
|
$
90,271
|
|
$
84,374
|
|
$ 315,033
|
|
$ 322,029
|
|
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
current and non-current assets, and payables and other current and
non-current liabilities; and adjusted by specific items 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.