Press Releases

The Andersons, Inc. Reports All-Time Record Quarterly Results

MAUMEE, Ohio, Aug. 2, 2022 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the second quarter ended June 30, 2022.

Second Quarter Highlights:

  • Company reported net income from continuing operations attributable to The Andersons of $80.5 million, or $2.34 per diluted share, and adjusted net income of $82.2 million or $2.39 per diluted share
  • Adjusted EBITDA from continuing operations was $169.3 million for the quarter
  • Trailing twelve months adjusted EBITDA is $412.0 million
  • Renewables produced record pretax income attributable to The Andersons of $45.9 million
  • Plant Nutrient had its second-best quarter ever, generating pretax income of $38.3 million
  • Trade reported strong adjusted pretax income of $24.4 million

"I'm thrilled with the outstanding performance in this second quarter. The Renewables team nearly doubled last year's already strong performance, showing good yields and higher crush margins in our ethanol plants. Within Plant Nutrient, good inventory position management and high fertilizer prices led to higher margins and strong profitability," said President and CEO Pat Bowe. "In Trade, we entered the quarter with good basis ownership positions and as expected, we benefited from basis improvement during the quarter. In addition, we had very strong feed ingredients merchandising results in several of our locations. Global ag markets remain volatile, creating opportunities; our teams continue to execute well and remain focused on customer needs and operational excellence." 

$ in millions, except per share amounts     





Q2 2022

Q2 2021

Variance

YTD 2022

YTD 2021

Variance

Pretax Income Attributable to the Company1,2

$             96.3

$             51.1

$             45.2

$           106.5

$             67.0

$             39.5

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

97.0

51.4

45.6

107.2

67.8

39.4

     Trade1

24.4

14.1

10.3

28.0

28.4

(0.4)

     Renewables

45.9

23.5

22.4

51.4

26.5

24.9

     Plant Nutrient

38.3

24.0

14.3

49.1

32.5

16.6

     Other

(11.6)

(10.2)

(1.4)

(21.4)

(19.6)

(1.8)

Net Income Attributable to the Company2

80.5

41.4

39.1

86.6

53.0

33.6

Adjusted Net Income Attributable to the Company1,2

82.2

41.6

40.6

88.2

53.6

34.6

Diluted Earnings Per Share (EPS)2

2.34

1.23

1.11

2.52

1.58

0.94

Adjusted Diluted EPS1,2

2.39

1.24

1.15

2.57

1.60

0.97

EBITDA1,2

168.6

102.7

65.9

224.5

165.4

59.1

Adjusted EBITDA1,2

$           169.3

$           103.0

$             66.3

$           225.2

$           166.2

$             59.0

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

Cash, Liquidity and Long-Term Debt Management

"Our businesses continue to generate strong operating cash flows and we remain disciplined in our approach to capital spending decisions," said Executive Vice President and CFO Brian Valentine. "We are well below our goal of long-term debt to EBITDA of less than 2.5 times, ending the quarter at 1.5 times, and are well-positioned to fund strategic growth projects with appropriate returns."

The company generated $134.6 million and $93.1 million in cash from operations before working capital changes during the second quarters of 2022 and 2021, respectively. Working capital remains high, primarily due to high commodity prices that impact the value of inventory and accounts receivable.

Second Quarter Segment Overview

Trade Results Improve Significantly; Year-to-Date Results Comparable to 2021

The Trade segment recorded pretax income and adjusted pretax income of $23.7 million and $24.4 million, respectively, for the quarter compared to adjusted pretax income of $14.1 million in the second quarter of 2021. With some reduction in commodity prices from Q1 highs, the segment benefited from basis appreciation and good selling margins for many of its products. 

Despite initial delays in planting, crops in key draw areas are better than current USDA national ratings for corn and soybeans. Wheat ownership in our grain elevator assets is again earning space income. Continued merchandising opportunities and strong elevation margins are also expected to continue as global stocks are not projected to recover quickly from the recent global supply disruptions. 

Trade's second quarter adjusted EBITDA was $46.6 million, compared to second quarter 2021 adjusted EBITDA of $32.7 million.

Renewables Generates Record Q2 Earnings of $45.9 million on Strong Margins; Co-Product Values and Merchandising Remain Strong

The Renewables segment reported pretax income attributable to the company of $45.9 million in the second quarter compared to pretax income attributable to the company of $23.5 million realized in the same period in 2021. Included in pretax income attributable to The Andersons is $8.9 million of USDA Biofuels Producer COVID relief funds. Also included in pretax income in the quarter is $24.4 million of positive mark-to-market impact, nearly $18 million of which are reversals of prior mark-to-market losses. This compared to positive mark-to-market impacts of $13.5 million in the second quarter of 2021.

The operating improvement was driven by strong overall production margins. Seasonal demand has been impacted by high gasoline prices, but higher exports have firmed ethanol prices. High corn costs for ethanol production in the western U.S. may negatively impact ethanol production there, while our eastern corn belt production facilities are well-positioned for corn supply.

Renewables had record second quarter EBITDA of $85.7 million in 2022, up $38.5 million from 2021 second quarter EBITDA of $47.2 million.

Plant Nutrient Posts Strong Second Quarter Results

The Plant Nutrient segment posted pretax income of $38.3 million, compared to 2021's pretax income of $24.0 million. As expected, well-positioned inventory and an overall favorable spring planting season led to strong margins that more than offset a volume decrease for our agricultural fertilizers, particularly within our wholesale nutrients, farm centers, and specialty liquids low-salt starters products.

Plant Nutrient's second quarter EBITDA was $46.8 million compared to 2021 second quarter EBITDA of $31.6 million.

Income Taxes; Corporate

The company recorded income taxes from continuing operations at an effective rate of 13.3% for the quarter due to the tax treatment of derivatives, hedging activities, and non-controlling interests. We now anticipate a full-year effective rate of approximately 18%-21%.

Conference Call

The company will host a webcast on Wednesday, August 3, 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 4313758). 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/NKr9d6xjJv0. 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 June 30,


Six months ended June 30,

(in thousands, except per share data)

2022


2021


2022


2021

Sales and merchandising revenues

$ 4,450,617


$ 3,235,805


$ 8,428,571


$ 5,830,524

Cost of sales and merchandising revenues

4,219,776


3,072,398


8,078,195


5,553,676

Gross profit

230,841


163,407


350,376


276,848

Operating, administrative and general expenses

112,559


105,560


214,546


202,558

Interest expense, net

16,921


10,060


27,780


20,049

Other income, net:








Equity in earnings (losses) of affiliates, net

(6,034)


845


(6,278)


2,639

Other income, net

22,826


5,070


26,988


10,938

Income before income taxes from continuing operations

118,153


53,702


128,760


67,818

Income tax provision from continuing operations

15,753


9,677


19,856


14,038

Net income from continuing operations

102,400


44,025


108,904


53,780

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

(739)


2,099


(1,294)


5,606

Net income

101,661


46,124


107,610


59,386

Net income attributable to noncontrolling interests

21,856


2,625


22,303


780

Net income attributable to The Andersons, Inc.

$      79,805


$      43,499


$      85,307


$      58,606









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








Basic earnings (loss):








Continuing operations

$           2.38


$           1.25


$           2.56


$           1.60

Discontinued operations

(0.02)


0.06


(0.04)


0.17


$           2.36


$           1.31


$           2.52


$           1.77

Diluted earnings (loss):








Continuing operations

$           2.34


$           1.23


$           2.52


$           1.58

Discontinued operations

(0.02)


0.07


(0.04)


0.17


$           2.32


$           1.30


$           2.48


$           1.75

 

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


(in thousands)

June 30, 2022


December 31, 2021


June 30, 2021

Assets






Current assets:






  Cash and cash equivalents

$                86,035


$              216,444


$                27,538

  Accounts receivable, net

1,141,167


835,180


702,869

  Inventories

1,618,326


1,814,538


904,924

  Commodity derivative assets – current

638,357


410,813


507,148

  Current assets held-for-sale

18,627


20,885


28,555

  Other current assets

70,367


74,468


63,266

Total current assets

3,572,879


3,372,328


2,234,300

Other assets:






Goodwill

129,342


129,342


131,542

Other intangible assets, net

105,222


117,137


125,731

Right of use assets, net

50,233


52,146


42,330

Other assets held-for-sale

24,298


43,169


620,745

Other assets, net

91,758


69,068


70,879

Total other assets

400,853


410,862


991,227

Property, plant and equipment, net

763,443


786,029


823,563

Total assets

$          4,737,175


$          4,569,219


$          4,049,090







Liabilities and equity






Current liabilities:






  Short-term debt

$          1,161,428


$              501,792


$              757,271

  Trade and other payables

772,996


1,199,324


543,503

  Customer prepayments and deferred revenue

184,154


358,119


55,943

  Commodity derivative liabilities – current

185,903


128,911


90,366

  Current maturities of long-term debt

53,951


32,256


50,069

  Current liabilities held-for-sale

7,314


13,379


25,185

  Accrued expenses and other current liabilities

211,830


230,148


168,221

Total current liabilities

2,577,576


2,463,929


1,690,558

Long-term lease liabilities

28,929


31,322


27,134

Long-term debt, less current maturities

563,447


600,487


837,609

Deferred income taxes

63,383


71,127


173,212

Other long-term liabilities held-for-sale

3,113


16,119


43,993

Other long-term liabilities

83,521


78,531


51,620

Total liabilities

3,319,969


3,261,515


2,824,126

Total equity

1,417,206


1,307,704


1,224,964

Total liabilities and equity

$          4,737,175


$          4,569,219


$          4,049,090

 

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



Six months ended June 30,

 (in thousands)

2022


2021

Operating Activities




Net income from continuing operations

$               108,904


$                 53,780

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

(1,294)


5,606

Net income

107,610


59,386

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




Depreciation and amortization

67,945


95,154

Bad debt expense, net

3,069


(1,156)

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

6,278


(2,639)

Gain on sales of assets, net

(10,305)


(6,253)

Stock-based compensation expense

4,708


4,112

Deferred federal income tax

(13,755)


170

Other

8,549


5,570

Changes in operating assets and liabilities:




Accounts receivable

(289,196)


(58,338)

Inventories

186,685


390,506

Commodity derivatives

(189,090)


(250,691)

Other current and non-current assets

5,106


35,568

Payables and other current and non-current liabilities

(609,403)


(516,883)

Net cash used in operating activities

(721,799)


(245,494)

Investing Activities




Purchases of property, plant and equipment and capitalized software

(43,472)


(34,264)

Proceeds from sale of assets

4,672


3,794

Purchases of investments

(2,105)


(4,701)

Purchases of Rail assets

(27,276)


(4,751)

Proceeds from sale of Rail assets

36,341


15,616

Other

1,746


832

Net cash used in investing activities

(30,094)


(23,474)

Financing Activities




Net receipts (payments) under short-term lines of credit

862,698


(258,157)

Proceeds from issuance of short-term debt

350,000


608,250

Payments of short-term debt

(550,000)


Proceeds from issuance of long-term debt


108,300

Payments of long-term debt

(15,077)


(177,586)

Contributions from noncontrolling interest owner

2,450


2,940

Distributions to noncontrolling interest owner

(9,980)


(25)

Payments of debt issuance costs

(7,802)


(2,059)

Dividends paid

(12,245)


(11,677)

Proceeds from exercises of stock options

5,024


Other

(2,955)


(2,436)

Net cash provided by financing activities

622,113


267,550

Effect of exchange rates on cash and cash equivalents

(629)


(167)

Decrease in cash and cash equivalents

(130,409)


(1,585)

Cash and cash equivalents at beginning of period

216,444


29,123

Cash and cash equivalents at end of period

$                 86,035


$                 27,538

 

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



Three months ended June 30,


Six months ended June 30,

(in thousands, except per share data)

2022


2021


2022


2021

Net income from continuing operations

$ 102,400


$   44,025


$ 108,904


$   53,780

Net income attributable to noncontrolling interests

21,856


2,625


22,303


780

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

80,544


41,400


86,601


53,000

Adjustments:








Gain on sale of frac sand assets

(3,762)



(3,762)


Impairment on equity method investment

4,455



4,455


Transaction related stock compensation


274



757

Income tax impact of adjustments

940


(68)


940


(189)

Total adjusting items, net of tax

1,633


206


1,633


568

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

$   82,177


$   41,606


$   88,234


$   53,568









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

$        2.34


$        1.23


$        2.52


$        1.58









Impact on diluted earnings per share from continuing operations

$        0.05


$        0.01


$        0.05


$        0.02

Adjusted diluted earnings per share from continuing operations

$        2.39


$        1.24


$        2.57


$        1.60


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
(unaudited)


(in thousands)

Trade


Renewables


Plant
Nutrient


Other


Total

Three months ended June 30, 2022










Sales and merchandising revenues

$  3,097,767


$       882,567


$     470,283


$              —


$  4,450,617

Gross profit

101,994


59,888


68,959



230,841

Operating, administrative and general expenses

62,977


8,590


29,591


11,401


112,559

Other income (loss), net

3,983


18,490


866


(513)


22,826

Income (loss) before income taxes from continuing operations

23,666


67,776


38,311


(11,600)


118,153

Income (loss) attributable to noncontrolling interests


21,856




21,856

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

$       23,666


$         45,920


$       38,311


$     (11,600)


$       96,297

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

693





693

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

$       24,359


$         45,920


$       38,311


$     (11,600)


$       96,990











Three months ended June 30, 2021










Sales and merchandising revenues

$  2,297,869


$       616,527


$     321,409


$              —


$  3,235,805

Gross profit

77,831


34,716


50,860



163,407

Operating, administrative and general expenses

61,514


6,577


26,568


10,901


105,560

Other income (loss), net

4,067


38


849


116


5,070

Income (loss) before income taxes from continuing operations

13,777


26,156


23,995


(10,226)


53,702

Income (loss) attributable to noncontrolling interests


2,625




2,625

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

$       13,777


$         23,531


$       23,995


$     (10,226)


$       51,077

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

274





274

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

$       14,051


$         23,531


$       23,995


$     (10,226)


$       51,351



(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.
Segment Data (continued)
(unaudited)











(in thousands)

Trade


Renewables


Plant
Nutrient


Other


Total

Six months ended June 30, 2022










Sales and merchandising revenues

$  6,182,448


$    1,565,798


$    680,325


$           —


$  8,428,571

Gross profit

169,613


75,079


105,684



350,376

Operating, administrative and general expenses

122,520


16,480


54,916


20,630


214,546

Other income (loss), net

8,007


18,918


1,670


(1,607)


26,988

Income (loss) before income taxes from continuing operations

27,335


73,738


49,054


(21,367)


128,760

Income (loss) attributable to noncontrolling interests


22,303




22,303

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

$       27,335


$         51,435


$      49,054


$   (21,367)


$     106,457

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

693





693

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

$       28,028


$         51,435


$      49,054


$   (21,367)


$     107,150











Six months ended June 30, 2021










Sales and merchandising revenues

$  4,280,377


$    1,059,486


$    490,661


$           —


$  5,830,524

Gross profit

150,388


43,199


83,261



276,848

Operating, administrative and general expenses

118,445


13,233


49,967


20,913


202,558

Other income (loss), net

7,553


1,365


1,436


584


10,938

Income (loss) before income taxes from continuing operations

27,632


27,237


32,518


(19,569)


67,818

Income (loss) attributable to noncontrolling interests


780




780

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

$       27,632


$         26,457


$      32,518


$   (19,569)


$       67,038

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

757





757

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

$       28,389


$         26,457


$      32,518


$   (19,569)


$       67,795


(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 June 30, 2022














Net income (loss)

$   23,666


$       67,776


$   38,311


$  (27,353)


$ 102,400


$                (739)


$  101,661

Interest expense (income)

13,300


2,012


1,923


(314)


16,921



16,921

Tax provision




15,753


15,753


2,051


17,804

Depreciation and amortization

8,914


15,875


6,595


2,183


33,567



33,567

EBITDA

45,880


85,663


46,829


(9,731)


168,641


1,312


169,953

Adjusting items impacting EBITDA:














Gain on sale of frac sand assets

(3,762)





(3,762)



(3,762)

Impairment on equity method investment

4,455





4,455



4,455

Total adjusting items

693





693



693

Adjusted EBITDA

$   46,573


$       85,663


$   46,829


$    (9,731)


$ 169,334


$              1,312


$  170,646















Three months ended June 30, 2021














Net income (loss)

$   13,777


$       26,156


$   23,995


$  (19,903)


$   44,025


$              2,099


$    46,124

Interest expense (income)

7,452


2,021


1,146


(559)


10,060


3,394


13,454

Tax provision




9,677


9,677


965


10,642

Depreciation and amortization

11,155


18,983


6,456


2,355


38,949


8,701


47,650

EBITDA

32,384


47,160


31,597


(8,430)


102,711


15,159


117,870

Adjusting items impacting EBITDA:














Transaction related stock compensation

274





274



274

Total adjusting items

274





274



274

Adjusted EBITDA

$   32,658


$       47,160


$   31,597


$    (8,430)


$ 102,985


$            15,159


$  118,144















 

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


Six months ended June 30, 2022














Net income (loss)

$  27,335


$       73,738


$   49,054


$ (41,223)


$  108,904


$             (1,294)


$  107,610

Interest expense (income)

21,487


3,779


3,384


(870)


27,780



27,780

Tax provision




19,856


19,856


3,344


23,200

Depreciation and amortization

17,888


32,514


13,174


4,368


67,944



67,944

EBITDA

66,710


110,031


65,612


(17,869)


224,484


2,050


226,534

Adjusting items impacting EBITDA:














Gain on sale of frac sand assets

(3,762)





(3,762)



(3,762)

Impairment on equity method investment

4,455





4,455



4,455

Total adjusting items

693





693



693

Adjusted EBITDA

$  67,403


$     110,031


$   65,612


$ (17,869)


$  225,177


$              2,050


$  227,227















Six months ended June 30, 2021














Net income (loss)

$  27,632


$       27,237


$   32,518


$ (33,607)


$  53,780


$              5,606


$    59,386

Interest expense (income)

14,503


4,094


2,212


(760)


20,049


6,574


26,623

Tax provision




14,038


14,038


2,349


16,387

Depreciation and amortization

22,280


37,797


12,837


4,652


77,566


17,588


95,154

EBITDA

64,415


69,128


47,567


(15,677)


165,433


32,117


197,550

Adjusting items impacting EBITDA:














Transaction related stock compensation

757





757



757

Total adjusting items

757





757



757

Adjusted EBITDA

$  65,172


$       69,128


$   47,567


$ (15,677)


$  166,190


$            32,117


$  198,307

 

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


Three Months Ended,


 Twelve months
ended June 30, 2022

(in thousands)

September 30, 2021


December 31, 2021


March 31, 2022


June 30, 2022


Net income from continuing operations

$         12,290


$         65,473


$           6,504


$       102,400


$                    186,667

Interest expense

8,799


8,444


10,859


16,921


45,023

Tax provision

4,027


11,163


4,103


15,753


35,046

Depreciation and amortization

42,811


36,797


34,377


33,567


147,552

EBITDA

67,927


121,877


55,843


168,641


414,288

Adjusting items impacting EBITDA:










Transaction related stock compensation

243


274




517

Gain on sale of a business

(14,619)





(14,619)

Loss from cost method investment

2,784





2,784

Asset impairment including equity method investments


8,321



4,455


12,776

Gain on sale of frac sand assets




(3,762)


(3,762)

Total adjusting items

(11,592)


8,595



693


(2,304)

Adjusted EBITDA

$         56,335


$       130,472


$         55,843


$       169,334


$                    411,984












Three Months Ended,


Twelve months
ended June 30, 2021


September 30, 2020


December 31, 2020


March 31, 2021


June 30, 2021


Net income from continuing operations

$           1,788


$         15,917


$           9,755


$         44,025


$                      71,485

Interest expense

6,853


7,833


9,989


10,060


34,735

Tax provision (benefit)

(4,148)


7,718


4,361


9,677


17,608

Depreciation and amortization

38,387


38,568


38,617


38,949


154,521

EBITDA

42,880


70,036


62,722


102,711


278,349

Adjusting items impacting EBITDA:










Transaction related stock compensation

912


946


483


274


2,615

Severance costs

3,222


528




3,750

Total adjusting items

4,134


1,474


483


274


6,365

Adjusted EBITDA

$         47,014


$         71,510


$         63,205


$       102,985


$                    284,714











 

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


Three months ended June 30,


Six months ended June 30,

(in thousands)

2022


2021


2022


2021

Cash used in operating activities

$         353,199


$         200,233


$     (721,799)


$     (245,494)

Changes in operating assets and liabilities








Accounts receivable

(74,184)


(24,862)


(289,196)


(58,338)

Inventories

323,505


385,499


186,685


390,506

Commodity derivatives

88,671


(197,396)


(189,090)


(250,691)

Other current and non-current assets

43,916


18,828


5,106


35,568

Payables and other current and non-current liabilities

(163,307)


(74,962)


(609,403)


(516,883)

Total changes in operating assets and liabilities

218,601


107,107


(895,898)


(399,838)

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

$         134,598


$           93,126


$       174,099


$       182,041


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