Press Releases

The Andersons, Inc. Reports First Quarter Results; Plant Nutrient Sets Record

MAUMEE, Ohio, May 3, 2022 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2022.

First Quarter Highlights:

  • Company reported net income attributable to The Andersons from continuing operations of $6.1 million, or $0.18 per diluted share
  • EBITDA from continuing operations was $55.8 million for the quarter
  • Plant Nutrient reported record first quarter pretax income of $10.7 million
  • Renewables had a strong quarter with pretax income of $5.5 million despite an $8.3 million mark to market loss, most of which is expected to reverse in Q2
  • Trade reported pretax income of $3.7 million amid global disruption and against higher 2021 results; amassing strong grain ownership positions at low basis values
  • Amended and extended credit agreement, expanding capacity and extending maturity date to 2027

"The grain markets were impacted by the extreme run-up in futures prices resulting from the war in Ukraine. This drove grain basis values sharply lower. I'm proud of the merchandising teams as they worked through this unprecedented price volatility which allowed us to take larger ownership positions at good basis values," said President and CEO Pat Bowe. "Plant Nutrient continued its strong run by setting its second consecutive quarterly earnings record. This strong performance resulted from well-positioned inventory and particularly strong specialty liquid results. In Renewables, production volume increased for both ethanol and corn oil. Renewable feedstocks and co-product merchandising were well above expectations."

"We continue to believe that we are well-positioned in all businesses for the remainder of 2022. We are closely monitoring the weather-related planting delays in both corn and soybeans. While progress is being made, we are behind the five-year national average for this date and expect planting activities to ramp up quickly as soon as fields allow it. We have an opportunity to earn good elevation margins on our grain position. Ethanol margins have strengthened as we entered the spring maintenance season along with seasonal increases in driving demand and expectations for an increased U.S. export program. Our renewable feedstock business continues to grow and we are exploring further opportunities to improve corn oil production and quality from our plants," added Bowe. "Fertilizer prices and farm income both remain very high, and while producers are feeling the impact of high input costs, commodity prices still support fertilizer application. We continue to receive good support from our suppliers in this time of tight stocks. Supply remains a factor in our industry and market prices reflect reduced global stocks for most fertilizers and grains. Our teams are executing well and remain focused on customer needs and operational excellence." 

$ in millions, except per share amounts     

     
 

YTD 2022

YTD 2021

Variance

Pretax Income Attributable to the Company1,2

$                   10.2

$                   16.0

$                   (5.8)

Adjusted Pretax Income (Loss) Attributable to the Company1,2

10.2

16.4

(6.2)

     Trade1

3.7

14.3

(10.6)

     Renewables

5.5

2.9

2.6

     Plant Nutrient

10.7

8.5

2.2

     Other1

(9.8)

(9.3)

(0.5)

Net Income Attributable to the Company2

6.1

11.6

(5.5)

Adjusted Net Income Attributable to the Company1,2

6.1

12.0

(5.9)

Diluted Earnings Per Share (EPS)2

0.18

0.35

(0.17)

Adjusted Diluted EPS1,2

0.18

0.36

(0.18)

EBITDA1,2

55.8

62.7

(6.9)

Adjusted EBITDA1,2

$                   55.8

$                   63.2

$                   (7.4)

 

1 Non-GAAP financial measures; see appendix for explanations and reconciliations. 2 Measure represents only continuing operations of the Company.

First Quarter Segment Overview

Trade Results Decline on Market Disruptions; Large Ownership Position Accumulated

The Trade segment recorded pretax income of $3.7 million for the quarter compared to adjusted pretax income of $14.3 million in the first quarter of 2021. Despite strong performance in international merchandising, dramatic increases in futures prices drove quarter-over-quarter negative basis variance in domestic grain positions of nearly $5 million. Capitalizing on the high commodity prices, Trade has accumulated strong grain positions at good basis values. Additionally, good 2022 results in propane merchandising did not match last year's outsized performance during the unseasonably frigid February weather in the central U.S.

Planting for the Midwest is expected to ramp up quickly, despite a slow start. Continued merchandising opportunities and strong elevation margins are expected through the remainder of the year as global stocks are not projected to recover even with an excellent harvest. The outlook for the grain elevator assets is improved with storage income earned on wheat inventory. Expected basis appreciation into harvest will drive improved elevation margins. 

Trade's first quarter EBITDA was $20.8 million, compared to first quarter 2021 adjusted EBITDA of $32.5 million on lower earnings.

Renewables Results Improve to $5.5 million on Better Crush Margins; Co-Product Values and Merchandising Remain Strong

The Renewables segment reported pretax income attributable to the company of $5.5 million in the first quarter compared to pretax income attributable to the company of $2.9 million realized in the same period in 2021.

The quarter-over-quarter improvement was driven by improved margins at all ethanol plants. Strong feed and distillers corn oil values continued. Profitable third-party trading of ethanol, DDGs, and renewable feedstocks more than doubled last year's first quarter result. Improving industry fundamentals include increased seasonal demand along with production declines during the spring maintenance season and expected increases in exports. Ethanol stocks remain high compared to last year's very low levels but board crush has improved over the last few weeks.

Renewables had record first quarter EBITDA of $24.4 million in 2022, up $2.4 million from 2021 first quarter EBITDA of $22.0 million.

Plant Nutrient Posts Record First Quarter Results; Second Consecutive Quarterly Record

The Plant Nutrient segment posted record pretax income of $10.7 million, compared to 2021's pretax income of $8.5 million. Strong margins more than offset a volume decrease for most of our agricultural fertilizers, particularly within specialty liquids low-salt starters and wholesale nutrients. With high grain prices and tight fertilizer supply, this is expected to continue into the second quarter. Plant labor and logistical challenges lowered results for our turf and specialty products. Plant Nutrient's record first quarter EBITDA was $18.8 million compared to 2021 first quarter EBITDA of $16.0 million.

Income Taxes; Corporate

The company has recorded income taxes from continuing operations at an effective rate of 38.7% for the first quarter due to the non-deductibility of mark-to-market adjustments and the tax treatment of non-controlling interests. We anticipate a full-year effective rate of approximately 22%-25%.

Conference Call

The company will host a webcast on Wednesday, May 4, 2022, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its outlook for the remainder of 2022. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 3679351). 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/OzegpVQ9Jr1. Complete the six fields as directed and click "Register." A replay of the call can also be accessed under the heading "Investors" on the company's refreshed 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 COVID-19 pandemic, 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 adjusted pretax income (loss) from continuing operations, pretax income (loss) attributable to the company from continuing operations, adjusted pretax income (loss) attributable to the company from continuing operations, adjusted net income attributable to the company from continuing operations, 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., celebrating 75 years of service and named to Forbes® lists of America's Best Employers for 2022 and Best Employers for Diversity 2022 as well as America's Most Trusted Companies 2022 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 March 31,

(in thousands, except per share data)

2022

 

2021

Sales and merchandising revenues

$          3,977,954

 

$          2,594,719

Cost of sales and merchandising revenues

3,858,419

 

2,481,278

Gross profit

119,535

 

113,441

Operating, administrative and general expenses

101,987

 

96,998

Interest expense, net

10,859

 

9,989

Other income, net:

     

    Equity in earnings (losses) of affiliates, net

(244)

 

1,794

    Other income, net

4,162

 

5,868

Income before income taxes from continuing operations

10,607

 

14,116

Income tax provision from continuing operations

4,103

 

4,361

Net income from continuing operations

6,504

 

9,755

Income (loss) from discontinued operations, net of income taxes

(554)

 

3,507

Net income

5,950

 

13,262

  Net income (loss) attributable to noncontrolling interests

447

 

(1,845)

Net income attributable to The Andersons, Inc.

$                  5,503

 

$                15,107

       

Earnings per share attributable to The Andersons, Inc. common shareholders:

     

 Basic earnings (loss):

     

   Continuing operations

$                    0.18

 

$                    0.35

   Discontinued operations

(0.02)

 

0.11

 

$                    0.16

 

$                    0.46

 Diluted earnings (loss):

     

   Continuing operations

$                    0.18

 

$                    0.35

   Discontinued operations

(0.02)

 

0.10

 

$                    0.16

 

$                    0.45

 

The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)

 

(in thousands)

March 31, 2022

 

December 31, 2021

 

March 31, 2021

Assets

         

Current assets:

         

  Cash and cash equivalents

$                36,381

 

$              216,444

 

$                35,393

  Accounts receivable, net

1,050,259

 

835,180

 

677,118

  Inventories

1,950,303

 

1,814,538

 

1,287,637

  Commodity derivative assets – current

769,916

 

410,813

 

317,939

  Current assets held-for-sale

20,255

 

20,885

 

37,136

  Other current assets

113,589

 

74,468

 

81,666

Total current assets

3,940,703

 

3,372,328

 

2,436,889

Other assets:

         

  Goodwill

129,342

 

129,342

 

131,542

  Other intangible assets, net

111,055

 

117,137

 

133,198

  Right of use assets, net

51,821

 

52,146

 

34,966

  Other assets held-for-sale

45,264

 

43,169

 

629,228

  Other assets, net

92,506

 

69,068

 

60,964

Total other assets

429,988

 

410,862

 

989,898

Property, plant and equipment, net

772,245

 

786,029

 

839,950

Total assets

$          5,142,936

 

$          4,569,219

 

$          4,266,737

           

Liabilities and equity

         

Current liabilities:

         

  Short-term debt

$          1,449,768

 

$              501,792

 

$              915,205

  Trade and other payables

741,124

 

1,199,324

 

534,660

  Customer prepayments and deferred revenue

384,723

 

358,119

 

161,696

  Commodity derivative liabilities – current

216,836

 

128,911

 

91,448

  Current maturities of long-term debt

54,158

 

32,256

 

42,824

  Current liabilities held-for-sale

10,200

 

13,379

 

26,362

  Accrued expenses and other current liabilities

205,958

 

230,148

 

145,921

Total current liabilities

3,062,767

 

2,463,929

 

1,918,116

Long-term lease liabilities

31,419

 

31,322

 

21,210

Long-term debt, less current maturities

571,181

 

600,487

 

877,583

Deferred income taxes

68,437

 

71,127

 

173,481

Other long-term liabilities held-for-sale

14,738

 

16,119

 

45,172

Other long-term liabilities

77,173

 

78,531

 

48,624

Total liabilities

3,825,715

 

3,261,515

 

3,084,186

Total equity

1,317,221

 

1,307,704

 

1,182,551

Total liabilities and equity

$          5,142,936

 

$          4,569,219

 

$          4,266,737

 

The Andersons, Inc.
Consolidated Statements of Cash Flows
(unaudited)

 
 

Three months ended March 31,

 (in thousands)

2022

 

2021

Operating Activities

     

Net income from continuing operations

$                   6,504

 

$                   9,755

Income (loss) from discontinued operations, net of income taxes

(554)

 

3,507

Net income

5,950

 

13,262

Adjustments to reconcile net income to cash used in operating activities:

     

  Depreciation and amortization

34,377

 

47,504

  Bad debt expense, net

1,255

 

(1,686)

  Equity in (earnings) losses of affiliates, net of dividends

244

 

(1,794)

  Gain on sales of assets, net

(81)

 

(2,635)

  Stock-based compensation expense

1,818

 

1,990

  Deferred federal income tax

(6,947)

 

(2)

  Other

2,885

 

4,579

Changes in operating assets and liabilities:

     

  Accounts receivable

(215,012)

 

(33,476)

  Inventories

(136,820)

 

5,007

  Commodity derivatives

(277,761)

 

(53,295)

  Other current and non-current assets

(38,810)

 

16,740

  Payables and other current and non-current liabilities

(446,096)

 

(441,921)

Net cash used in operating activities

(1,074,998)

 

(445,727)

Investing Activities

     

Purchases of property, plant and equipment and capitalized software

(20,722)

 

(16,919)

Proceeds from sale of assets

72

 

385

Purchases of investments

(1,333)

 

(2,800)

Purchases of Rail assets

(3,186)

 

(2,611)

Proceeds from sale of Rail assets

248

 

5,383

Other

 

832

Net cash used in investing activities

(24,921)

 

(15,730)

Financing Activities

     

Net receipts under short-term lines of credit

796,209

 

260,160

Proceeds from issuance of short-term debt

350,000

 

250,000

Payments of short-term debt

(200,000)

 

Proceeds from issuance of long-term debt

 

89,700

Payments of long-term debt

(7,566)

 

(125,884)

Contributions from noncontrolling interest owner

2,450

 

1,960

Distributions to noncontrolling interest owner

(9,980)

 

Payments of debt issuance costs

(7,310)

 

(1,225)

Dividends paid

(6,144)

 

(5,839)

Proceeds from exercises of stock options

5,024

 

Other

(2,926)

 

(1,110)

Net cash provided by financing activities

919,757

 

467,762

Effect of exchange rates on cash and cash equivalents

99

 

(35)

Increase (decrease) in cash and cash equivalents

(180,063)

 

6,270

Cash and cash equivalents at beginning of period

216,444

 

29,123

Cash and cash equivalents at end of period

$                 36,381

 

$                 35,393

 

The Andersons, Inc.
Adjusted Net Income Attributable to The Andersons, Inc.
A non-GAAP financial measure
(unaudited)

 
   

Three months ended March 31,

(in thousands, except per share data)

 

2022

 

2021

Net income from continuing operations

 

$                  6,504

 

$                  9,755

  Net income (loss) attributable to noncontrolling interests

 

447

 

(1,845)

Net income from continuing operations attributable to The Andersons, Inc.

 

6,057

 

11,600

  Adjustments:

       

    Transaction related stock compensation

 

 

483

    Income tax impact of adjustments

 

 

(121)

  Total adjusting items, net of tax

 

 

362

Adjusted net income from continuing operations attributable to The Andersons, Inc.

 

$                  6,057

 

$                11,962

         

Diluted earnings from continuing operations attributable to The Andersons, Inc. common shareholders

 

$                    0.18

 

$                    0.35

         

  Impact on diluted earnings per share from continuing operations

 

$                        —

 

$                    0.01

Adjusted diluted earnings from continuing operations per share

 

$                    0.18

 

$                    0.36

 

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 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 (continued)
(unaudited)

                   

(in thousands)

Trade

 

Renewables

 

Plant
Nutrient

 

Other

 

Total

Three months ended March 31, 2022

                 

Sales and merchandising revenues

$  3,084,681

 

$       683,231

 

$    210,042

 

$           —

 

$  3,977,954

Gross profit

67,619

 

15,191

 

36,725

 

 

119,535

Operating, administrative and general expenses

59,543

 

7,890

 

25,325

 

9,229

 

101,987

Other income (loss), net

4,024

 

428

 

804

 

(1,094)

 

4,162

Income (loss) before income taxes from continuing operations

3,669

 

5,962

 

10,743

 

(9,767)

 

10,607

Income (loss) attributable to noncontrolling interests

 

447

 

 

 

447

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

$         3,669

 

$           5,515

 

$      10,743

 

$     (9,767)

 

$       10,160

                   

Three months ended March 31, 2021

                 

Sales and merchandising revenues

$  1,982,508

 

$       442,959

 

$    169,252

 

$           —

 

$  2,594,719

Gross profit

72,557

 

8,483

 

32,401

 

 

113,441

Operating, administrative and general expenses

56,931

 

6,656

 

23,399

 

10,012

 

96,998

Other income (loss), net

3,486

 

1,327

 

587

 

468

 

5,868

Income (loss) before income taxes from continuing operations

13,855

 

1,081

 

8,523

 

(9,343)

 

14,116

Income (loss) attributable to noncontrolling interests

 

(1,845)

 

 

 

(1,845)

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

$       13,855

 

$           2,926

 

$        8,523

 

$     (9,343)

 

$       15,961

Adjustments to income (loss) before income taxes from continuing operations (b)

483

 

 

 

 

483

Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)

$       14,338

 

$           2,926

 

$        8,523

 

$     (9,343)

 

$       16,444

 

(a) 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.

(b) 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 March 31, 2022

                         

Net income (loss)

$   3,669

 

$         5,962

 

$   10,743

 

$ (13,870)

 

$    6,504

 

$                (554)

 

$      5,950

  Interest expense (income)

8,187

 

1,767

 

1,461

 

(556)

 

10,859

 

 

10,859

  Tax provision

 

 

 

4,103

 

4,103

 

1,292

 

5,395

  Depreciation and amortization

8,974

 

16,639

 

6,579

 

2,185

 

34,377

 

 

34,377

EBITDA

$ 20,830

 

$       24,368

 

$   18,783

 

$   (8,138)

 

$  55,843

 

$                 738

 

$    56,581

                           

Three months ended March 31, 2021

                         

Net income (loss)

$ 13,855

 

$         1,081

 

$     8,523

 

$ (13,704)

 

$    9,755

 

$              3,507

 

$    13,262

  Interest expense (income)

7,051

 

2,073

 

1,066

 

(201)

 

9,989

 

3,180

 

13,169

  Tax provision

 

 

 

4,361

 

4,361

 

1,384

 

5,745

  Depreciation and amortization

11,125

 

18,814

 

6,381

 

2,297

 

38,617

 

8,887

 

47,504

EBITDA

32,031

 

21,968

 

15,970

 

(7,247)

 

62,722

 

16,958

 

79,680

  Adjusting items impacting EBITDA:

                         

    Transaction related stock compensation

483

 

 

 

 

483

 

 

483

  Total adjusting items

483

 

 

 

 

483

 

 

483

Adjusted EBITDA

$ 32,514

 

$       21,968

 

$   15,970

 

$   (7,247)

 

$  63,205

 

$            16,958

 

$    80,163

 

The Andersons, Inc.
Trailing Twelve Months of EBITDA and Adjusted EBITDA
A non-GAAP financial measure
(unaudited)

 
 

Three Months Ended,

 

 Twelve months

(in thousands)

June 30,
2021

 

September 30,
2021

 

December 31,
2021

 

March 31,
2022

 

ended March 31,
2022

Net income from continuing operations

$         44,024

 

$         12,290

 

$         65,473

 

$           6,504

 

$                    128,291

  Interest expense

10,060

 

8,799

 

8,444

 

10,859

 

38,162

  Tax provision

9,677

 

4,027

 

11,163

 

4,103

 

28,970

  Depreciation and amortization

38,949

 

42,811

 

36,797

 

34,377

 

152,934

EBITDA

102,710

 

67,927

 

121,877

 

55,843

 

348,357

  Adjusting items impacting EBITDA:

                 

    Transaction related stock compensation

274

 

243

 

274

 

 

791

    Gain on sale of a business

 

(14,619)

 

 

 

(14,619)

    Loss from cost method investment

 

2,784

 

 

 

2,784

    Asset impairments

 

 

8,321

 

 

8,321

  Total adjusting items

274

 

(11,592)

 

8,595

 

 

(2,723)

Adjusted EBITDA

$       102,984

 

$         56,335

 

$       130,472

 

$         55,843

 

$                    345,634

                   
 

Three Months Ended,

 

Twelve months

 

June 30,
2020

 

September 30,
2020

 

December 31,
2020

 

March 31,
2021

 

ended March 31,
2021

Net income from continuing operations

$         10,290

 

$           1,788

 

$         15,917

 

$           9,755

 

$                      37,750

  Interest expense

7,994

 

6,853

 

7,833

 

9,989

 

32,669

  Tax provision (benefit)

(5,064)

 

(4,148)

 

7,718

 

4,361

 

2,867

  Depreciation and amortization

38,128

 

38,387

 

38,568

 

38,617

 

153,700

EBITDA

51,348

 

42,880

 

70,036

 

62,722

 

226,986

  Adjusting items impacting EBITDA:

                 

    Transaction related stock compensation

1,017

 

912

 

946

 

483

 

3,358

    Severance costs

2,341

 

3,222

 

528

 

 

6,091

  Total adjusting items

3,358

 

4,134

 

1,474

 

483

 

9,449

Adjusted EBITDA

$         54,706

 

$         47,014

 

$         71,510

 

$         63,205

 

$                    236,435

 

The Andersons, Inc.
Cash from Operations Before Working Capital Changes
A non-GAAP financial measure
(unaudited)

 
 

Three months ended
March 31,

(in thousands)

2022

 

2021

Cash used in operating activities

$  (1,074,998)

 

$     (445,727)

  Changes in operating assets and liabilities

     

    Accounts receivable

(215,012)

 

(33,476)

    Inventories

(136,820)

 

5,007

    Commodity derivatives

(277,761)

 

(53,295)

    Other current and non-current assets

(38,810)

 

16,740

    Payables and other current and non-current liabilities

(446,096)

 

(441,921)

  Total changes in operating assets and liabilities

(1,114,499)

 

(506,945)

Adjusting items impacting cash from operations before working capital changes:

     

  Changes in CARES Act tax refund receivable

 

27,697

Cash from operations before working capital changes

$         39,501

 

$         88,915

 

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.

 

 

SOURCE The Andersons, Inc.

For further information: Investor Relations Contact: Mike Hoelter, Vice President, Corporate Controller and Investor Relations, Phone: 419-897-6715, E-mail: investorrelations@andersonsinc.com