The Andersons, Inc. Reports Fourth Quarter and Full-Year Results

Feb 13, 2019

MAUMEE, Ohio, Feb. 13, 2019 /PRNewswire/ --

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

Fourth Quarter Highlights

  • Company reports EPS of $0.84 and adjusted EPS of $0.92; adjusted EPS improves by 35% year over year.
  • Lansing Trade Group acquisition closed effective January 1, 2019.
  • Grain Group pretax income improves to $25.4 million on strong harvest margin environment and another strong quarter from Lansing.
  • Ethanol Group earns $5.1 million of pretax income on optimal plant efficiency.
  • Plant Nutrient Group reports pretax income of $3.8 million on improved primary nutrient margin and lower operating expenses.
  • Rail Group earns $6.7 million of pretax income on steadily rising railcar demand.

The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter and full year ended December 31, 2018.

"We improved our fourth quarter operating performance year over year," said Pat Bowe, President and CEO. "The Grain Group recorded better results highlighted by improvement in its base grain business and a strong finish to the year by Lansing Trade Group. We are excited about the closing of our acquisition of Lansing at the beginning of 2019. Our integration efforts are going very well, and we are committed to a thoughtful, disciplined combination of our organizations. We are more confident than ever about the strong strategic fit of the transaction."

"In addition, our Ethanol Group performed well in a weak market environment by continuing to operate efficiently and market wisely even as margins for the quarter were lower again year over year," continued Bowe. "The Plant Nutrient Group's performance improved across most of its product lines except for specialty nutrients. The Rail Group's performance was equal to last year's results, and the group purchased more than 1,000 railcars."

$ in millions, except share amounts     

Fourth Quarter

Year to Date


2018

2017

     Vs

2018

2017

      Vs

Reported Pretax Income (Loss)

$29.9

$(0.9)

$30.8

$53.2

$(20.5)

$73.7

Adjusted Pretax Income

$33.0

$27.1

$5.9

$59.7

$49.5

$10.2

Reported Net Income

$23.8

$69.7

$(45.9)

$41.5

$42.5

$(1.0)

Adjusted Net Income

$26.0

$18.9

$7.1

$46.4

$33.7

$12.7

EPS

$0.84

$2.47

$(1.63)

$1.46

$1.50

$(0.04)

Adjusted EPS

$0.92

$0.67

$0.25

$1.63

$1.19

$0.44

EBITDA

$60.2

$25.0

$35.2

$171.6

$87.4

$84.2

Adjusted EBITDA

$63.3

$53.0

$10.3

$178.1

$157.4

$20.7









The company reported fourth quarter 2018 net income attributable to The Andersons of $23.8 million, or $0.84 per diluted share, on revenues of $813 million. Adjusted net income attributable to the company for the period was $26.0 million, or $0.92 per diluted share, compared to 2017 fourth quarter net income of $69.7 million, or $2.47 per diluted share, and adjusted net income of $18.9 million, or $0.67 per diluted share, on revenues of $1.0 billion. The company's EBITDA was $60.2 million for the fourth quarter of 2018 and $25.0 million for fourth quarter of 2017. Adjusted EBITDA was $63.3 million for the quarter compared to $53.0 million in fourth quarter 2017.

For the full year, the company reported net income attributable to The Andersons of $41.5 million, or $1.46 per diluted share, and adjusted net income attributable to The Andersons of $46.4 million, or $1.63 per diluted share. The adjusted results exclude $6.5 million in pretax charges related to the Lansing acquisition. These amounts compared to net income attributable to The Andersons of $42.5 million, or $1.50 per diluted share, and adjusted net income attributable to The Andersons of $33.7 million, or $1.19 per diluted share, in 2017. The company's EBITDA for 2018 and 2017 was $171.6 million and $87.4 million, respectively. Adjusted EBITDA was $178.1 million for 2018 compared to $157.4 million in 2017.

The decrease in revenues year over year was primarily the result of the company's adoption of new revenue recognition rules at the beginning of 2018 that changed the accounting treatment of a significant amount of the Grain Group's sales transactions. This change has no impact on the amount of gross profit recognized on these transactions.

For purposes of better understanding ongoing results, the company has expanded its pretax income disclosure in the table below to adjust for amounts that do not reflect ongoing operations.

$ in millions     


   Fourth Quarter

Year to Date


2018

2017

 Vs

2018

2017

Vs

Reported Pretax Income (Loss)

$29.9

$(0.9)

$30.8

$53.2

$(20.5)

$73.7

Goodwill Impairment1

-

17.1

(17.1)

-

59.1

(59.1)

Asset Impairment2

-

10.9

(10.9)

-

10.9

(10.9)

Acquisition Transaction Expenses

3.1

-

3.1

6.5

-

6.5

Adjusted Pretax Income

$33.0

$27.1

$5.9

$59.7

$49.5

$10.2












1

Recorded in the second and fourth quarters by the Plant Nutrient Group.

2

Recorded by the Grain Group on some of its Tennessee assets.

Fourth quarter and full-year 2018 results include $3.1 million and $6.5 million of expenses related to the Lansing acquisition and integration, respectively. These adjustments equate to $0.08 and $0.17 in EPS, respectively.

Fourth Quarter Segment Overview

Grain Group Rebounds from Tough Third Quarter
The Grain Group generated pretax income of $25.4 million in the fourth quarter, up $6.2 million or about 30 percent from its fourth quarter 2017 adjusted pretax income results. The group's EBITDA in the 2018 and 2017 fourth quarters was $32.1 million and $14.3 million, respectively, and it generated adjusted EBITDA of $32.1 million and $25.2 million for the same two periods, respectively. 

For purposes of better understanding ongoing results, the company has expanded the Grain Group's pretax income disclosure in the table below to adjust for amounts that are not reflective of ongoing operations.

$ in millions     


Fourth Quarter

        Year to Date


2018

2017

Vs

2018

2017

Vs

Reported Pretax Income (Loss)

$25.4

$8.3

$17.1

$26.7

$12.8

$13.9

Asset Impairment1

-

10.9

(10.9)

-

10.9

(10.9)

Adjusted Pretax Income

$25.4

$19.2

$6.2

$26.7

$23.7

$3.0

EBITDA

$32.1

$14.3

$17.8

$54.6

$39.9

$14.7

Adjusted EBITDA

$32.1

$25.2

$6.9

$54.6

$50.8

$3.8










1

Recorded on some of the group's Tennessee assets sold in early 2018.

The table below separates the earnings of the group's base grain business from those of its grain affiliates. Base grain business earnings originate from grain facilities that the company operates. The grain affiliates' earnings originate from equity method investments in Lansing Trade Group and Thompsons Limited. 

$ in millions     


             Fourth Quarter



                 Year to Date



Adjusted Pretax Income

2018

2017

Vs

2018

2017

Vs


  Base Grain

$22.4

$15.7

$6.7

$15.0

$8.9

$6.1


  Grain Affiliates

3.0

3.5

(0.5)

11.7

3.9

7.8


Total Grain Group

$25.4

$19.2

$6.2

$26.7

$12.8

$13.9
















Base grain pretax income was more than 40 percent higher in the fourth quarter compared to 2017 results. Merchandising income improved significantly. While income from corn and soybean ownership positions improved year over year from expected basis appreciation, those improvements were offset by significantly lower income from narrowing spreads on wheat positions. Trading and risk management services income was lower as market uncertainty reduced trading opportunities. 

The group's affiliates recorded lower income in the quarter due to some unusual expenses. Lansing incurred expenses related to closing its sale to The Andersons and recorded an impairment charge on an investment in a small Canadian-based grain company. The company's share of those two charges accounted for more than the small shortfall from fourth quarter 2017 pretax results.

For the full year, the group earned pretax income of $26.7 million compared to the pretax income of $12.8 million and adjusted pretax income of $23.7 million it earned in the same period last year. Excluding a 2017 asset impairment expense, 2018 base grain income lagged 2017 results due to less wheat income opportunity and less income from trading and risk management. Wheat margins have tightened significantly since the third quarter of 2018. On a positive note, corn and soybean basis recovered and income from food ingredients increased substantially.

Income from affiliates more than offset the shortfall in base income, improving by about $7.8 million; Lansing's very strong year accounted for most of the improvement.  

The group generated EBITDA of $54.6 million and $39.9 million in 2018 and 2017, respectively. Adjusted EBITDA was $54.6 million and $50.8 million for the full years 2018 and 2017, respectively, increasing 7 percent year over year.

The integration of Lansing Trade Group to form the new Trade Group has gone very well in its first few weeks. The new group has already identified several million dollars of run-rate synergies. Some of these savings are being realized in early 2019 and the capture of synergies will accelerate throughout the year.

Ethanol Group Performs Well in Challenging Market Conditions
The Ethanol Group generated pretax income of $5.1 million attributable to The Andersons in the fourth quarter, compared to $6.4 million pretax income attributable to The Andersons for the same period in 2017. The commercial and production teams performed extremely well, hedging forward margin and running the plants efficiently, effectively, and safely in the fourth quarter.

The table below separates the results of the Ethanol Group's unconsolidated entities of its plants in Albion, Mich.; Clymers, Ind.; and Greenville, Ohio, from the earnings of the Denison, Iowa, plant; the Colwich, Kansas, plant currently under construction; and the group's management services income.

$ in millions     


                       Fourth Quarter

        Year to Date


2018

2017

Vs

2018

2017

Vs

Equity in Earnings of Affiliates

$3.5

$5.0

$(1.5)

$14.2

$12.2

$2.0

Consolidated Operations and Service Fees

1.5

1.4

0.1

7.7

6.8

0.9

Pretax Income

5.0

6.4

(1.4)

21.9

19.0

2.9

Attributable to Noncontrolling Interests

(0.1)

-

0.1

(0.2)

0.1

(0.3)

Ethanol Group Pretax Income Attributable to The Andersons

$5.1

$6.4

$(1.3)

$22.1

$18.9

$3.2











Continued elevated ethanol stocks, lower oil prices and seasonally lower demand were the main contributors to the weaker margin environment. The export market remained on its record pace despite China's continued absence. The average sales price of ethanol continued to be lower year over year.

Year-over-year results for the group improved by $3.2 million, despite a much weaker margin environment. For the year, the group earned pretax income of $22.1 million compared to $18.9 million last year. 

Plant Nutrient Group Has Seasonally Strong Quarter
The Plant Nutrient Group recorded pretax income of $3.8 million in the fourth quarter compared to a pretax loss of $18.0 million and an adjusted pretax loss of $0.9 million in the fourth quarter of 2017. The group's current quarter EBITDA and adjusted EBITDA were $12.5 million; the adjusted amount was a $5.6 million improvement over to 2017 fourth quarter results.

For purposes of better understanding ongoing results, the company has expanded the Plant Nutrient Group's pretax income disclosure in the table below to adjust for amounts that are not reflective of ongoing operations.

$ in millions     


                                        Fourth Quarter

               Year to Date


2018

2017

Vs

2018

2017

Vs

Reported Pretax Income (Loss)

$3.8

$(18.0)

$21.8

$12.0

$(45.1)

$57.1

Goodwill Impairment1

-

17.1

(17.1)

-

59.1

59.1

Adjusted Pretax Income (Loss)

$3.8

$(0.9)

$4.7

$12.0

$14.0

$(2.0)

EBITDA

$12.5

$(10.2)

$22.7

$45.4

$(12.1)

$57.5

Adjusted EBITDA

$12.5

$6.9

$5.6

$45.4

$47.0

$(1.6)











1

Recorded in the second and fourth quarters on the group's wholesale fertilizer business.

Except for the specialty nutrient product lines, the group's businesses recorded improved year-over-year operating results. A significant increase in margin per ton on somewhat lower primary nutrient volume drove wholesale fertilizer gross profit more than 30 percent higher year over year. In contrast, higher volumes only partially offset weaker margins in the specialty fertilizer product lines. The lawn business completed a record year by improving results by almost $1 million year over year. 

In addition to improving gross profit, the group reduced expenses by about 12 percent year over year.

For the full year, the group generated pretax income of $12.0 million. This result compares favorably to a pretax loss of $45.1 million and adjusted pretax income of $14.0 million in 2017, which included a $4.7 million gain on the sale of the Florida farm centers. Wholesale fertilizer volumes were up slightly, but margins were moderately lower, especially in the specialty nutrient product line. Full-year 2018 adjusted EBITDA was $45.4 million compared to $47.0 million for 2017. Excluding the $4.7 million Florida farm centers gain, full-year adjusted EBITDA increased by 7 percent. 

Rail Group Pretax Income Reflects Lower Lease Income and Car Sale Income
The Rail Group earned fourth quarter pretax income of $6.7 million, on par with its results for the same period of the prior year. The group's fourth quarter 2018 EBITDA was $17.9 million compared to $14.3 million in the comparable 2017 period.

$ in millions

Fourth Quarter

Year to Date

Pretax Income

2018

2017

Vs

2018

2017

Vs

  Lease Income

$1.4

$1.9

$(0.5)

$8.1

$8.9

$(0.8)

  Car Sales

1.2

3.3

(2.1)

2.4

11.0

(8.6)

  Services and Other

4.1

1.5

2.6

6.9

4.9

2.0

Total Rail Group

$6.7

$6.7

$  -

$17.4

$24.8

$(7.4)

EBITDA

$17.9

$14.3

$3.6

$57.9

$54.9

$3.0

   Cars on Lease (hundreds)

21.4

20.0

1.4

20.8

19.8

1.0

   Utilization Rate

94.3%

86.2%

8.1%

90.9%

85.0%

5.9%










Leasing operations earned $1.4 million in the fourth quarter, down $1.1 million sequentially and $0.5 million year over year. Utilization averaged 94.3 percent during the quarter compared to 92.0 percent sequentially and 86.2 percent during the same period last year. The average number of cars on lease rose about 7 percent year over year. Average lease rates and maintenance expenses were flat year over year. Depreciation and interest expenses were up, primarily due to a higher asset base.

The group earned $1.2 million of pretax income on railcar sales in the quarter compared to $3.3 million in the fourth quarter of 2017. The group scrapped more than 300 cars and sold fewer cars outright than in the same 2017 period.

Rail's service and other pretax income was $4.1 million in the quarter compared to $1.5 million during the same period of 2017. Current quarter results included $2.4 million in income from the sale of 50 barges. Repair sales were higher year over year, and margins were flat.

For the full year, the Rail Group earned pretax income of $17.4 million compared to $24.8 million in 2017. EBITDA was $57.9 million for full-year 2018 compared to $54.9 million for 2017, up 5 percent year over year. The year-over-year decrease in pretax income primarily reflects the costs to scrap long-idled railcars in the second quarter and lower lease rates as leases expiring at peak rates were renewed at substantially lower lease rates. The railcar market and demand for railcars continued its steady improvement and absolute lease rates improved for most car types.

Other Net Company-Level Expenses Include Lansing Acquisition Expenses
Fourth quarter 2018 unallocated net company-level expenses of $11.1 million were considerably higher than the $4.4 million of net expenses recorded during the fourth quarter of 2017. Current quarter results included $3.1 million, or $0.08 per share, in expenses associated with acquiring and integrating Lansing Trade Group. Fourth quarter 2017 results also included a $2.9 million gain from the sale of former retail store property.

Full year unallocated net company-level expenses were $24.8 million, down $7.2 million from 2017 levels. The former amount included $6.5 million, or $0.17 per share, in Lansing acquisition expenses. The 2017 amount included a $7.3 million pretax loss from the closing of the company's former retail business.  

Conference Call
The company will host a webcast on Thursday, February 14, 2019, at 11 a.m. Eastern Standard Time to discuss its performance and provide an updated outlook for 2019. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 5476505). We recommend that you call 10 minutes before the conference call begins.

To access the webcast, visit https://edge.media-server.com/m6/p/xcio56qn. Complete the four fields as directed and click submit. A replay of the call can also be accessed under the heading "Investors" on the company 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 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 adjusted pretax income, adjusted net income, EBITDA and adjusted EBITDA provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and better period-to-period comparability. Adjusted pretax income, adjusted net income, EBITDA and adjusted EBITDA do not and should not be considered as alternatives to net income or income before income taxes as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within the financial tables provided in the release.

Company Description
Founded in 1947 in Maumee, Ohio, The Andersons, Inc. (Nasdaq: ANDE) is a diversified company rooted in agriculture. The company's nearly 2,400 employees conduct business from more than 130 locations in the commodity trading, ethanol, plant nutrient and rail sectors. Guided by its Statement of Principles, The Andersons strives to provide extraordinary service to its customers, help its employees improve, support its communities and increase 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)

2018


2017


2018


2017

Sales and merchandising revenues 

$                 812,662


$                 1,004,072


$              3,045,382


$                 3,686,345

Cost of sales and merchandising revenues

718,700


919,236


2,743,377


3,367,546

Gross profit

93,962


84,836


302,005


318,799

Operating, administrative and general expenses

67,776


67,750


257,872


286,993

Asset impairment

-


10,913


6,272


10,913

Goodwill impairment

-


17,081


-


59,081

Interest expense

7,848


4,095


27,848


21,567

Other income:








Equity in earnings (loss) of affiliates

6,540


8,630


27,141


16,723

Other income, net

5,053


5,479


16,002


22,507

Income (loss) before income taxes

29,931


(894)


53,156


(20,525)

Income tax provision (benefit)

6,263


(70,639)


11,931


(63,134)

Net income (loss)

23,668


69,745


41,225


42,609

Net income attributable to the noncontrolling interests

(85)


25


(259)


98

Net income (loss) attributable to The Andersons, Inc.

$                    23,753


$                      69,720


$                    41,484


$                      42,511









Per common share:








  Basic earnings (loss) attributable to The Andersons, Inc.
  common shareholders

$                        0.84


$                          2.48


$                        1.47


$                          1.51

  Diluted earnings (loss) attributable to The Andersons, Inc.
  common shareholders

$                        0.84


$                          2.47


$                        1.46


$                          1.50

  Dividends declared

$                      0.170


$                        0.165


$                      0.665


$                        0.645

 

 

The Andersons, Inc.








Reconciliation to Adjusted Net Income








(Unaudited)

















Three months ended December 31,


Twelve months ended December 31,

(in thousands, except per share data)

2018


2017


2018


2017

Net income (loss) attributable to The Andersons, Inc.

$                   23,753


$                     69,720


$                   41,484


$                     42,511

Items impacting other income, net of tax:








Tax reform impact

-


(74,227)


-


(74,227)

Goodwill impairment

-


16,607


-


58,607

Asset impairment

-


6,766


-


6,766

Acquisition costs

2,291


-


4,889


-









Total adjusting items

2,291


(50,854)


4,889


(8,854)

Adjusted net income (loss) attributable to The Andersons, Inc.

$                   26,044


$                     18,866


$                   46,373


$                     33,657









Diluted earnings attributable to The Andersons, Inc. common
shareholders

$                       0.84


$                         2.47


$                       1.46


$                         1.50









Impact on diluted earnings per share

0.08


(1.80)


0.17


(0.31)

Adjusted diluted earnings (loss) per share

$                       0.92


$                         0.67


$                       1.63


$                         1.19

 

 

The Andersons, Inc.

Condensed Consolidated Balance Sheets






(Unaudited)












(in thousands)

December 31, 2018


December 31, 2017


December 31, 2017

Assets






Current assets:






Cash and cash equivalents

$                    22,593


$                     34,919


$                      34,919

Accounts receivable, net

207,285


183,238


183,238

Inventories

690,804


648,703


648,703

Commodity derivative assets – current

51,421


30,702


30,702

Other current assets

50,703


63,790


63,790

Assets held for sale

392


37,859


37,859

Total current assets

1,023,198


999,211


999,211

Other assets:






Commodity derivative assets – noncurrent

480


310


310

Other assets, net

127,503


131,474


131,474

Equity method investments

242,326


223,239


223,239


370,309


355,023


355,023

Rail Group assets leased to others, net

521,785


423,443


423,443

Property, plant and equipment, net

476,711


384,677


384,677

Total assets

$              2,392,003


$                2,162,354


$                 2,162,354







Liabilities and equity






Current liabilities:






Short-term debt

$                 205,000


$                     22,000


$                      22,000

Trade and other payables

462,535


503,571


503,571

Customer prepayments and deferred revenue

32,533


59,710


59,710

Commodity derivative liabilities – current

32,647


29,651


29,651

Accrued expenses and other current liabilities

79,046


69,579


69,579

Current maturities of long-term debt

21,589


54,205


54,205

Total current liabilities

833,350


738,716


738,716







Other long-term liabilities

32,184


33,129


33,129

Commodity derivative liabilities – noncurrent

889


825


825

Employee benefit plan obligations

22,542


26,716


26,716

Long-term debt, less current maturities

496,187


418,339


418,339

Deferred income taxes

130,087


121,730


121,730

Total liabilities

1,515,239


1,339,455


1,339,455

Total equity

876,764


822,899


822,899

Total liabilities and equity

$              2,392,003


$                2,162,354


$                 2,162,354

 

 

The Andersons, Inc.












Segment Data












(Unaudited)
























(in thousands)

Grain


Ethanol


Plant Nutrient


Rail


Other


Total

Three months ended December 31, 2018












Revenues from external customers

$                 450,777


$          175,065


$          147,625


$             39,195



$               812,662

Gross profit

52,485


3,537


23,955


13,985



93,962

Equity in earnings of affiliates

3,023


3,517





6,540

Other income, net

761


492


595


2,605


600


5,053

Income (loss) before income taxes

25,448


5,009


3,791


6,734


(11,051)


29,931

Income (loss) attributable to the noncontrolling interests


(85)





(85)

Income (loss) before income taxes attributable to The Andersons, Inc. (a)

$                    25,448


$               5,094


$               3,791


$               6,734


$           (11,051)


$                   30,016













Three months ended December 31, 2017












Revenues from external customers

$                   641,876


$            174,548


$            136,881


$              50,491


$                   276


$              1,004,072

Gross profit

44,976


4,609


21,554


14,030


(333)


84,836

Equity in earnings of affiliates

3,645


4,985





8,630

Other income, net

612


20


514


368


3,965


5,479

Income (loss) before income taxes

8,347


6,429


(18,047)


6,733


(4,356)


(894)

Income (loss) attributable to the noncontrolling interests


25





25

Income (loss) before income taxes attributable to The Andersons, Inc. (a)

$                       8,347


$                6,404


$             (18,047)


$                6,733


$              (4,356)


$                      (919)

























Twelve months ended December 31, 2018












Revenues from external customers

$               1,436,979


$          743,690


$            690,536


$           174,177



$             3,045,382

Gross profit

129,854


18,405


98,901


54,845



302,005

Equity in earnings of affiliates

12,932


14,209





27,141

Other income, net

2,959


650


2,495


3,516


6,382


16,002

Income (loss) before income taxes

26,676


21,856


12,030


17,379


(24,785)


53,156

Income (loss) attributable to the noncontrolling interests


(259)





(259)

Income (loss) before income taxes attributable to The Andersons, Inc. (a)

$                    26,676


$            22,115


$              12,030


$             17,379


$           (24,785)


$                  53,415













Twelve months ended December 31, 2017












Revenues from external customers

$                2,106,464


$            708,063


$            651,824


$            172,123


$              47,871


$              3,686,345

Gross profit

131,388


19,857


104,645


52,459


10,450


318,799

Equity in earnings of affiliates

4,509


12,214





16,723

Other income, net

3,658


54


5,092


2,632


11,071


22,507

Income (loss) before income taxes

12,844


18,976


(45,121)


24,798


(32,022)


(20,525)

Income (loss) attributable to the noncontrolling interest


98





98

Income (loss) before income taxes attributable to The Andersons, Inc. (a)

$                     12,844


$              18,878


$             (45,121)


$              24,798


$            (32,022)


$                 (20,623)













(a) Income (loss) before income taxes attributable to The Andersons, Inc. for each Group 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 (loss).

 

 

The Andersons, Inc.












Reconciliation to EBITDA and Adjusted EBITDA












(unaudited)




































(in thousands)

  Grain 


 Ethanol


 Plant Nutrient


 Rail


Other


 Total

Three months ended December 31, 2018












Income (loss) before income taxes

$            25,448


$              5,009


$              3,791


$              6,734


$          (11,051)


$            29,931

Income (loss) attributable to the noncontrolling interests


(85)





(85)

Income (loss) before income taxes attributable to The Andersons, Inc.

25,448


5,094


3,791


6,734


(11,051)


30,016

Interest expense

2,828


(793)


2,102


3,689


22


7,848

Depreciation and amortization

3,801


1,577


6,613


7,492


2,855


22,338

Earnings before interest, taxes, depreciation and amortization (EBITDA)

$            32,077


$              5,878


$            12,506


$            17,915


$             (8,174)


$            60,202

Adjusting items impacting EBITDA:












Acquisition costs

-


-


-


-


3,054


3,054

Total adjusting items

-


-


-


-


3,054


3,054

Adjusted EBITDA

$            32,077


$              5,878


$            12,506


$            17,915


$             (5,120)


$            63,256













Three months ended December 31, 2017












Income (loss) before income taxes

$                8,347


$                6,429


$            (18,047)


$                6,733


$              (4,356)


$                 (894)

Income (loss) attributable to the noncontrolling interests


25





25

Income (loss) before income taxes attributable to The Andersons, Inc.

8,347


6,404


(18,047)


6,733


(4,356)


(919)

Interest expense

1,399


(15)


1,404


1,536


(229)


4,095

Depreciation and amortization

4,537


1,504


6,405


6,011


3,409


21,866

Earnings before interest, taxes, depreciation and amortization (EBITDA)

$              14,283


$                7,893


$            (10,238)


$              14,280


$              (1,176)


$              25,042

Adjusting items impacting EBITDA:












   Goodwill impairment

-


-


17,081


-


-


17,081

   Asset impairment

10,913


-


-


-


-


10,913

Total adjusting items

10,913


-


17,081


-


-


27,994

Adjusted EBITDA

$              25,196


$                7,893


$                6,843


$              14,280


$              (1,176)


$              53,036













Twelve months ended December 31, 2018












Income (loss) before income taxes

$            26,676


$            21,856


$            12,030


$            17,379


$          (24,785)


$            53,156

Income (loss) attributable to the noncontrolling interests

-


(259)


-


-


-


(259)

Income (loss) before income taxes attributable to The Andersons, Inc.

26,676


22,115


12,030


17,379


(24,785)


53,415

Interest expense

11,843


(1,888)


6,499


11,377


17


27,848

Depreciation and amortization

16,062


6,136


26,871


29,164


12,064


90,297

Earnings before interest, taxes, depreciation and amortization (EBITDA)

$            54,581


$            26,363


$            45,400


$            57,920


$          (12,704)


$          171,560

Adjusting items impacting EBITDA:












Acquisition costs

-


-


-


-


6,518


6,518

Total adjusting items

-


-


-


-


6,518


6,518

Adjusted EBITDA

$            54,581


$            26,363


$            45,400


$            57,920


$             (6,186)


$          178,078













Twelve months ended December 31, 2017












Income (loss) before income taxes

$              12,844


$              18,976


$            (45,121)


$              24,798


$            (32,022)


$            (20,525)

Income (loss) attributable to the noncontrolling interests


98


-


-


-


98

Income (loss) before income taxes attributable to The Andersons, Inc.

12,844


18,878


(45,121)


24,798


(32,022)


(20,623)

Interest expense

8,320


(67)


6,420


7,023


(129)


21,567

Depreciation and amortization

18,757


5,970


26,628


23,081


11,976


86,412

Earnings before interest, taxes, depreciation and amortization (EBITDA)

$              39,921


$              24,781


$            (12,073)


$              54,902


$            (20,175)


$              87,356

Adjusting items impacting EBITDA:












   Goodwill impairment

-


-


59,081


-


-


59,081

   Asset impairment

10,913


-


-


-


-


10,913

Total adjusting items

10,913


-


59,081


-


-


69,994

Adjusted EBITDA

$              50,834


$              24,781


$              47,008


$              54,902


$            (20,175)


$            157,350

 

 

 

SOURCE The Andersons, Inc.

For further information: John Kraus, Director, Investor Relations, Phone: 419-891-6544, E-mail: investorrelations@andersonsinc.com


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