MAUMEE, Ohio, Nov. 7, 2023 /CNW/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the third quarter ended September 30, 2023.

The Andersons, Inc. logo. (PRNewsFoto/The Andersons, Inc.)

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.

Copyright 2023 Canada NewsWire

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