Press Releases

The Andersons, Inc. Reports Strong Fourth Quarter Results; Record Full Year Earnings

MAUMEE, Ohio, Feb. 14, 2023 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter ended December 31, 2022.

Fourth Quarter Highlights:

  • Company reported net income from continuing operations attributable to The Andersons of $15 million, or $0.44 per diluted share, and adjusted net income from continuing operations of $34 million, or $0.98 per diluted share
  • EBITDA from continuing operations was $79 million for the quarter, and adjusted EBITDA from continuing operations was $104 million
  • Trade reported pretax income of $27 million and record adjusted pretax income of $52 million, driven by strong elevation margins and merchandising
  • Renewables reported pretax income of $19 million and pretax income attributable to the company of $13 million on solid plant performance and good merchandising

"We finished the year with strong fourth quarter results, particularly in our Trade segment. Our merchandising teams and grain assets had outstanding results from improving basis after harvest, sales into destinations experiencing crop deficits, storage income and rising propane values. With another record quarter, our Trade business is positioned to execute well in these favorable markets with continuing strong ag fundamentals," said President and CEO Pat Bowe

"We enjoyed very good results in renewable fuels on solid renewable feedstock values but didn't experience the outsized ethanol margins that occurred in the fourth quarter of 2021 due to supply chain disruptions. The ethanol crush margin outlook is currently challenged but we expect this to improve with seasonal maintenance shutdowns and increased driving demand," added Bowe. "Our Plant Nutrient segment had mixed results with good fall applications and farmer engagement on specialty liquids but more limited early orders of granular fertilizer as buyers are waiting for declining prices to stabilize. With strong farm income, this sets us up well for a higher volume spring planting season although likely at more normalized margins. Our growth project pipeline remains robust, and we expect to close several transactions and continue making growth investments in 2023." 

$ in millions, except per share amounts     





Q4 2022

Q4 2021

Variance

YTD 2022

YTD 2021

Variance

Pretax Income from Continuing
Operations

$              31

$              77

$              (46)

$              195

$              161

$                34

Pretax Income from Continuing
Operations Attributable to the
Company1

25

44

(19)

159

129

30

Adjusted Pretax Income (Loss)
from Continuing Operations
Attributable to the Company1

50

53

(3)

184

127

57

Trade1

52

27

25

121

83

38

Renewables1

13

27

(14)

72

49

23

Plant Nutrient

2

16

(14)

39

43

(4)

Other1

(16)

(17)

1

(48)

(48)

Net Income from Continuing
Operations Attributable to the
Company

15

33

(18)

119

100

19

Adjusted Net Income from
Continuing Operations Attributable
to the Company1

34

39

(5)

139

98

41

Diluted Earnings Per Share from
Continuing Operations (EPS)

0.44

0.95

(0.51)

3.46

2.94

0.52

Adjusted Diluted Earnings Per
Share from Continuing Operations1

0.98

1.14

(0.16)

4.05

2.89

1.16

EBITDA from Continuing
Operations1

79

122

(43)

386

355

31

Adjusted EBITDA from Continuing
Operations1

$            104

$            130

$              (26)

$              412

$              353

$                59

1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

Cash, Liquidity and Long-Term Debt Management

"Strong operating cash flows continued into the fourth quarter, and we have significantly reduced short term borrowings as much of our grain acquired during harvest include extended payments to producers," said Executive Vice President and CFO Brian Valentine. "We repurchased $5 million in common shares in the quarter. With a strong balance sheet and a long-term debt to EBITDA ratio well below our target of 2.5 times, we are well-positioned to fund good growth projects with appropriate returns."

The company generated $440 million and used $170 million in cash from operating activities for the fourth quarters of 2022 and 2021, respectively, and generated $90 million and $84 million in cash from operations before working capital changes for the same periods, respectively.

Fourth Quarter Segment Overview

Trade Posts Record Fourth Quarter Driven by Grain Assets and Merchandising Performance

Trade recorded pretax income of $27 million and adjusted pretax income of $52 million for the quarter, 50% more than pretax income of $18 million and nearly double adjusted pretax income of $27 million in the fourth quarter of the prior year.

Strong elevation margins in core grain assets and merchandising drove the significant improvement. The quarter over quarter increase reflects rising basis values, storage income, and healthy margins on shipments into grain deficit destinations. Our international merchandising business also continued to perform well in the fourth quarter.

Ag supply chain opportunities are expected to remain very strong in 2023. Continued worldwide demand coupled with supply uncertainty due to the ongoing war in Ukraine and potential weather impacts in global grain production regions, continues to keep commodity prices relatively high and provide ongoing merchandising opportunities.

An adjustment was made for an asset impairment charge of $9 million due to a reorganization of western US grain assets. Earnings were also adjusted for a $16 million charge for insured inventory that was damaged in a late December fire.  

Trade's fourth quarter adjusted EBITDA was $72 million, which is 71% higher than fourth quarter 2021 adjusted EBITDA of $42 million. Full year adjusted EBITDA increased from $151 million in 2021 to a record $199 million in 2022, primarily as a result of improved elevation margins and outstanding merchandising results.

Renewables Posts Another Good Quarter

The Renewables segment reported pretax income of $19 million and pretax income attributable to the company of $13 million in the fourth quarter compared to record pretax income of $59 million and pretax income attributable to the company of $27 million in the same period of the prior year. Ethanol board crush margins for the 2022 fourth quarter were down over $0.90/gallon from the very strong fourth quarter of 2021. Renewable diesel feedstock merchandising results improved with the volume merchandised more than double the fourth quarter of 2021.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the merchandising business. Spot ethanol crush margins have declined into 2023 and are expected to seasonally move upward with driving demand. Corn oil demand is expected to remain high and merchandising of low-carbon-intensive renewable feedstocks should remain strong as additional renewable diesel facilities begin operations driving significant growth. 

Renewables recorded EBITDA of $36 million in the fourth quarter of 2022, compared to 2021 fourth quarter EBITDA of $78 million. For the full year, Renewables recorded EBITDA of $180 million in 2022, an increase of $14 million from 2021.

Plant Nutrient Declines from Record Prior Year on Lower Demand and Falling Prices

Plant Nutrient recorded pretax income of $2 million in the fourth quarter compared to record pretax income of $16 million in the same period of 2021. Falling fertilizer prices have likely shifted some demand from the fourth quarter of 2022 into 2023 as buyers wait for prices to moderate. Strong farmer income and lower prices are expected to drive higher volumes of agricultural fertilizers in the spring season, albeit at more normalized margins.

Plant Nutrient's current quarter EBITDA was $11 million compared to 2021 fourth quarter EBITDA of $24 million. For the full year, Plant Nutrient recorded EBITDA of $73 million in 2022, comparable to the prior year.

Conference Call

The company will host a webcast on Wednesday, February 15, 2023, at 11 a.m. EST, to discuss its performance and provide its outlook for 2023. To access the call, please dial 888-317-6003 or 412-317-6061 (international toll) and use elite entry number 7095205. It is recommended that you call 10 minutes before the conference call begins. 

To access the webcast, click on the link: https://app.webinar.net/OlgR2D825A0 and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com.   

Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, the ongoing economic impacts from the war in Ukraine, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

Non-GAAP Measures

This release contains non-GAAP financial measures. The company believes that pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations; adjusted net income from continuing operations attributable to the company; adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation, and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to net income from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.

Company Description

The Andersons, Inc., having been named one of America's Greatest Workplaces for Diversity 2023 by Newsweek®, is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and plant nutrient sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.

 

 The Andersons, Inc.
Condensed Consolidated Statements of Operations
(unaudited)



Three months ended
December 31,


Twelve months ended
December 31,

(in thousands, except per share data)

2022


2021


2022


2021

Sales and merchandising revenues

$ 4,677,488


$ 3,782,702


$  17,325,384


$  12,612,050

Cost of sales and merchandising revenues

4,507,465


3,588,688


16,641,220


12,019,353

Gross profit

170,023


194,014


684,164


592,697

Operating, administrative and general expenses

136,471


119,240


466,556


432,073

Interest expense, net

14,087


8,444


56,849


37,292

Other income, net

11,638


10,306


33,823


37,438

Income before income taxes from continuing operations

31,103


76,636


194,582


160,770

Income tax provision from continuing operations

9,933


11,163


39,628


29,228

Net income from continuing operations

21,170


65,473


154,954


131,542

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

(6,074)


(3,129)


12,025


4,324

Net income

15,096


62,344


166,979


135,866

Net income attributable to the noncontrolling interest

6,072


32,702


35,899


31,880

Net income attributable to The Andersons, Inc.

$         9,024


$      29,642


$    131,080


$    103,986









Earnings (loss) per share attributable to

The Andersons, Inc. common shareholders:








Basic earnings (loss):








Continuing operations

$           0.45


$           0.98


$           3.53


$           2.99

Discontinued operations

(0.18)


(0.09)


0.36


0.13


$           0.27


$           0.89


$           3.89


$           3.12

Diluted earnings (loss):








Continuing operations

$           0.44


$           0.95


$           3.46


$           2.94

Discontinued operations

(0.18)


(0.09)


0.35


0.13


$           0.26


$           0.86


$           3.81


$           3.07

 

 

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


(in thousands)

December 31, 2022


December 31, 2021

Assets




Current assets:




Cash and cash equivalents

$                    115,269


$                    216,444

Accounts receivable, net

1,248,878


835,180

Inventories

1,731,725


1,814,538

Commodity derivative assets – current

295,588


410,813

Current assets held-for-sale

2,871


20,885

Other current assets

71,622


74,468

Total current assets

3,465,953


3,372,328

Other assets:




Goodwill

129,342


129,342

Other intangible assets, net

100,907


117,137

Right of use assets, net

61,890


52,146

Other assets held-for-sale


43,169

Other assets, net

87,175


69,068

Total other assets

379,314


410,862

Property, plant and equipment, net

762,729


786,029

Total assets

$                 4,607,996


$                 4,569,219





Liabilities and equity




Current liabilities:




Short-term debt

$                    272,575


$                    501,792

Trade and other payables

1,423,633


1,199,324

Customer prepayments and deferred revenue

370,524


358,119

Commodity derivative liabilities – current

98,519


128,911

Current maturities of long-term debt

110,155


32,256

Current liabilities held-for-sale


13,379

Accrued expenses and other current liabilities

245,916


230,148

Total current liabilities

2,521,322


2,463,929

Long-term lease liabilities

37,147


31,322

Long-term debt, less current maturities

492,518


600,487

Deferred income taxes

64,080


71,127

Other long-term liabilities held-for-sale


16,119

Other long-term liabilities

63,160


78,531

Total liabilities

3,178,227


3,261,515

Total equity

1,429,769


1,307,704

Total liabilities and equity

$                 4,607,996


$                 4,569,219

 

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



Three months ended
December 31,


Twelve months ended
December 31,

(in thousands)

2022


2021


2022


2021

Operating Activities








Net income from continuing operations

$          21,170


$          65,473


$        154,954


$        131,542

Income from discontinued operations, net of income taxes

(6,074)


(3,129)


12,025


4,324

Net income

15,096


62,344


166,979


135,866

Adjustments to reconcile net income to cash provided by (used in) operating
activities:








Depreciation and amortization

33,476


36,797


134,742


178,934

Bad debt expense, net

973


2,419


6,001


237

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

74


(2,453)


5,671


(4,842)

Loss (gain) on sales of assets, net

1,706


321


(7,148)


(6,184)

Stock-based compensation expense

3,495


4,311


11,192


11,038

Deferred federal income tax

810


(10,893)


(20,009)


(104,618)

Gain on sale of business from continuing operations




(14,619)

(Gain) loss on sale of business from discontinued operations



(27,091)


1,491

Asset impairment

11,818


8,947


11,818


8,947

Damaged inventory

17,328



17,328


Other

5,495


141


15,550


10,545

Changes in operating assets and liabilities:








Accounts and notes receivable

(250,537)


(94,100)


(391,403)


(184,002)

Inventories

(179,995)


(794,938)


56,859


(528,073)

Commodity derivatives

170,300


51,553


65,399


(107,188)

Other current and non-current assets

8,936


(113,046)


10,936


(116,403)

Payables and other current and non-current liabilities

601,512


678,480


230,293


667,821

Net cash provided by (used in) operating activities

440,487


(170,117)


287,117


(51,050)

Investing Activities








Acquisition of businesses, net of cash acquired

(20,245)


(11,425)


(20,245)


(11,425)

Purchases of property, plant and equipment and capitalized software

(36,037)


(23,036)


(108,284)


(75,766)

Proceeds from sale of assets

497


509


5,307


4,508

Purchase of investments


(250)


(2,105)


(6,243)

Proceeds from sale of business from continuing operations



5,171


18,130

Proceeds from sale of business from discontinued operations



56,302


543,102

Purchases of Rail assets

(3,994)



(31,458)


(6,039)

Proceeds from sale of Rail assets


445


36,706


19,150

Other

3,958


1,482


5,704


1,831

Net cash (used in) provided by investing activities

(55,821)


(32,275)


(52,902)


487,248

Financing Activities








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

(382,591)


218,384


(21,273)


(105,895)

Proceeds from issuance of short-term debt



350,000


608,250

Payments of short-term debt



(550,000)


(408,250)

Proceeds from issuance of long-term debt


16,200



203,000

Payments of long-term debt

(7,460)


(45,206)


(30,045)


(530,733)

Contributions from noncontrolling interest owner

2,450



4,900


4,655

Distributions to noncontrolling interest owner

(9,980)



(44,910)


(25)

Payments of debt issuance costs

(306)


(633)


(8,108)


(2,692)

Dividends paid

(6,347)


(6,243)


(24,609)


(23,746)

Proceeds from exercises of stock options


6,667


5,024


6,667

Common stock repurchased

(5,952)



(12,721)


Other

(33)


12,709


(2,988)


Net cash (used in) provided by financing activities

(410,219)


201,878


(334,730)


(248,769)

Effect of exchange rates on cash and cash equivalents

51


84


(660)


(108)

(Decrease) increase in cash and cash equivalents

(25,502)


(430)


(101,175)


187,321

Cash and cash equivalents at beginning of year

140,771


216,874


216,444


29,123

Cash and cash equivalents at end of year

$        115,269


$        216,444


$        115,269


$        216,444

 

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



Three months ended
December 31,


Twelve months ended
December 31,

(in thousands, except per share data)

2022


2021


2022


2021

Net income from continuing operations

$       21,170


$       65,473


$     154,954


$     131,542

Net income attributable to noncontrolling interests

6,072


32,702


35,899


31,880

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

15,098


32,771


119,055


99,662

Adjustments:








Inventory damage

15,993



15,993


Asset impairment

9,000


8,321


9,000


8,321

Impairment on equity method and cost method investments



4,455


2,784

Gain on sale of frac sand assets



(3,762)


Transaction related stock compensation


274



1,274

Gain on sale of a business




(14,619)

Income tax impact of adjustments1

(6,248)


(2,148)


(5,308)


561

Total adjusting items, net of tax

18,745


6,447


20,378


(1,679)

Adjusted net income from continuing operations

attributable to The Andersons, Inc.

$       33,843


$       39,218


$     139,433


$       97,983









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

$           0.44


$           0.95


$           3.46


$           2.94









Impact on diluted earnings (loss) per share

from continuing operations

$           0.54


$           0.19


$           0.59


$         (0.05)

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

$           0.98


$           1.14


$           4.05


$           2.89


1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of the impairment on the equity method investment of $4.5 million for the twelve months ended December 31, 2022, which had no income tax impact.


Adjusted net income (loss) attributable to The Andersons, Inc. from continuing operations reflects reported net income (loss) available to The Andersons, Inc. common shareholders from continuing operations after the removal of specified items described above. Adjusted diluted earnings (loss) from continuing operations per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. from continuing operations and Adjusted diluted earnings (loss) from continuing operations per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) from continuing operations per share amount for each specified item.

 

The Andersons, Inc.
Segment Data
(unaudited)


(in thousands)

Trade


Renewables


Plant
Nutrient


Other


Total

Three months ended December 31, 2022










Sales and merchandising revenues

$  3,624,563


$     797,818


$     255,107


$              —


$  4,677,488

Gross profit

113,726


27,239


29,058



170,023

Operating, administrative and general expenses

86,725


7,197


25,660


16,889


136,471

Other income (loss), net

10,513


981


313


(169)


11,638

Income (loss) before income taxes from continuing operations

27,232


18,582


1,717


(16,428)


31,103

Income attributable to the noncontrolling interests


6,072




6,072

Income (loss) before income taxes from continuing operations
attributable to The Andersons, Inc.1

$       27,232


$       12,510


$         1,717


$     (16,428)


$       25,031

Adjustments to income (loss) before income taxes from
continuing operations2

24,993





24,993

Adjusted income (loss) before income taxes from continuing
operations attributable to The Andersons, Inc.1

$       52,225


$       12,510


$         1,717


$     (16,428)


$       50,024











Three months ended December 31, 2021










Sales and merchandising revenues

$  2,781,849


$     766,675


$     234,178


$              —


$  3,782,702

Gross profit

87,098


67,676


39,240



194,014

Operating, administrative and general expenses

73,891


7,772


22,697


14,880


119,240

Other income (loss), net

9,050


1,152


383


(279)


10,306

Income (loss) before income taxes from continuing operations

18,315


59,206


15,929


(16,814)


76,636

Income attributable to the noncontrolling interests


32,702




32,702

Income (loss) before income taxes from continuing operations
attributable to The Andersons, Inc.1

$       18,315


$       26,504


$       15,929


$     (16,814)


$       43,934

Adjustments to income (loss) before income taxes from
continuing operations2

8,595





8,595

Adjusted income (loss) before income taxes from continuing
operations attributable to The Andersons, Inc.1

$       26,910


$       26,504


$       15,929


$     (16,814)


$       52,529


1 Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.

2 Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.

 

The Andersons, Inc.
Segment Data (continued)
(unaudited)


(in thousands)

Trade


Renewables


Plant
Nutrient


Other


Total

Twelve months ended December 31, 2022










Sales and merchandising revenues

$  13,047,537


$  3,178,539


$  1,099,308


$              —


$  17,325,384

Gross profit

407,707


126,995


149,462



684,164

Operating, administrative and general expenses

282,592


30,730


106,003


47,231


466,556

Other income (loss), net

12,661


20,731


3,001


(2,570)


33,823

Income (loss) before income taxes from continuing operations

95,225


108,221


39,162


(48,026)


194,582

Income attributable to the noncontrolling interests


35,899




35,899

Income (loss) before income taxes from continuing operations
attributable to The Andersons, Inc.1

$       95,225


$       72,322


$       39,162


$     (48,026)


$     158,683

Adjustments to income (loss) before income taxes from
continuing operations2

25,686





25,686

Adjusted income (loss) before income taxes from continuing
operations attributable to The Andersons, Inc.1

$     120,911


$       72,322


$       39,162


$     (48,026)


$     184,369











Twelve months ended December 31, 2021










Sales and merchandising revenues

$  9,304,357


$  2,440,798


$     866,895


$              —


$  12,612,050

Gross profit

335,682


116,626


140,389



592,697

Operating, administrative and general expenses

259,926


31,019


95,547


45,581


432,073

Other income (loss), net

35,878


3,200


2,128


(3,768)


37,438

Income (loss) before income taxes from continuing operations

87,946


81,205


42,615


(50,996)


160,770

Income attributable to the noncontrolling interests


31,880




31,880

Income (loss) before income taxes from continuing operations
attributable to The Andersons, Inc.1

$       87,946


$       49,325


$       42,615


$     (50,996)


$     128,890

Adjustments to income (loss) before income taxes from
continuing operations2

(5,024)




2,784


(2,240)

Adjusted income (loss) before income taxes from continuing
operations attributable to The Andersons, Inc.1

$       82,922


$       49,325


$       42,615


$     (48,212)


$     126,650


1 Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.

2 Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.

 

The Andersons, Inc.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)



Continuing Operations


Discontinued
Operations


Total
Company

(in thousands)

Trade


Renewables


 Plant
Nutrient


 Other


 Total


Rail


Three months ended December 31, 2022














Net income (loss)

$ 27,232


$       18,582


$    1,717


$ (26,361)


$  21,170


$           (6,074)


$    15,096

Interest expense (income)

10,282


2,441


1,994


(630)


14,087



14,087

Tax provision




9,933


9,933


3,943


13,876

Depreciation and amortization

9,054


15,443


6,834


2,145


33,476



33,476

EBITDA

46,568


36,466


10,545


(14,913)


78,666


(2,131)


76,535

Adjusting items impacting EBITDA:














Asset impairment

9,000





9,000



9,000

Inventory damage

15,993





15,993



15,993

Total adjusting items

24,993





24,993



24,993

Adjusted EBITDA

$ 71,561


$       36,466


$  10,545


$ (14,913)


$  103,659


$           (2,131)


$  101,528















Three months ended December 31, 2021














Net income (loss)

$ 18,315


$       59,206


$  15,929


$ (27,977)


$  65,473


$           (3,129)


$    62,344

Interest expense

3,942


1,850


997


1,655


8,444


69


8,513

Tax provision




11,163


11,163


3,759


14,922

Depreciation and amortization

11,018


16,934


6,612


2,233


36,797



36,797

EBITDA

33,275


77,990


23,538


(12,926)


121,877


699


122,576

Adjusting items impacting EBITDA:














Transaction related stock compensation

274





274



274

Asset impairment

8,321





8,321



8,321

Total adjusting items

8,595





8,595



8,595

Adjusted EBITDA

$ 41,870


$       77,990


$  23,538


$ (12,926)


$  130,472


$                699


$  131,171

 

The Andersons, Inc.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)



Continuing Operations


Discontinued
Operations


Total
Company

(in thousands)

Trade


Renewables


 Plant
Nutrient


 Other


 Total


Rail


Twelve months ended December 31, 2022














Net income (loss)

$  95,225


$     108,221


$  39,162


$ (87,654)


$  154,954


$         12,025


$  166,979

Interest expense (income)

42,551


8,775


7,298


(1,775)


56,849



56,849

Tax provision




39,628


39,628


13,112


52,740

Depreciation and amortization

35,953


63,458


26,634


8,697


134,742



134,742

EBITDA

173,729


180,454


73,094


(41,104)


386,173


25,137


411,310

Adjusting items impacting EBITDA:














Gain on sale of frac sand assets

(3,762)





(3,762)



(3,762)

Asset impairment

9,000





9,000



9,000

Impairment on equity method and cost
method investments

4,455





4,455



4,455

Inventory damage

15,993





15,993



15,993

Total adjusting items

25,686





25,686



25,686

Adjusted EBITDA

$  199,415


$     180,454


$  73,094


$ (41,104)


$  411,859


$         25,137


$  436,996















Twelve months ended December 31, 2021














Net income (loss)

$  87,946


$       81,205


$  42,615


$ (80,224)


$  131,542


$           4,324


$  135,866

Interest expense

23,688


7,602


4,355


1,647


37,292


8,783


46,075

Tax provision




29,228


29,228


3,331


32,559

Depreciation and amortization

44,335


77,542


25,957


9,340


157,174


21,760


178,934

EBITDA

155,969


166,349


72,927


(40,009)


355,236


38,198


393,434

Adjusting items impacting EBITDA:














Transaction related stock compensation

1,274





1,274



1,274

Asset impairment

8,321





8,321



8,321

Impairment on equity method and cost
method investments




2,784


2,784



2,784

Gain on sale of a business

(14,619)





(14,619)



(14,619)

Total adjusting items

(5,024)




2,784


(2,240)



(2,240)

Adjusted EBITDA

$  150,945


$     166,349


$  72,927


$ (37,225)


$  352,996


$         38,198


$  391,194


Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure.

 

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



Three months ended
December 31,


Twelve months ended
December 31,

(in thousands)

2022


2021


2022


2021

Cash provided by (used in) operating activities

$     440,487


$   (170,117)


$     287,117


$     (51,050)

Changes in operating assets and liabilities








Accounts receivable

(250,537)


(94,100)


(391,403)


(184,002)

Inventories

(179,995)


(794,938)


56,859


(528,073)

Commodity derivatives

170,300


51,553


65,399


(107,188)

Other current and non-current assets

8,936


(113,046)


10,936


(116,403)

Payables and other current and non-current liabilities

601,512


678,480


230,293


667,821

Total changes in operating assets and liabilities

350,216


(272,051)


(27,916)


(267,845)

Adjusting items impacting cash from operations before

working capital changes:








Changes in CARES Act tax refund receivable




27,697

Changes in deferred income taxes as a result of the

Rail leasing sale


(95,097)



Taxes paid as a result of the Rail leasing sale


77,537



77,537

Cash from operations before working capital changes

$       90,271


$       84,374


$     315,033


$     322,029


Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other current and non-current assets, and payables and other current and non-current liabilities; and adjusted by specific items from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.

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