Press Releases
MAUMEE, Ohio, May 7, 2024 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2024.
First Quarter Highlights:
- Company reported net income attributable to The Andersons of $6 million, or $0.16 per diluted share; comparable on an adjusted basis
- EBITDA was $51 million for the quarter
- Renewables reported pretax income of $23 million and adjusted pretax income attributable to The Andersons of $13 million on strong operating performance
- Trade generated adjusted pretax income of $9 million
- Nutrient & Industrial shows good improvement over Q1 2023
"Overall, our first quarter results were fairly comparable to last year's first quarter. Renewables doubled our 2023 results on great operating performance in our ethanol plants. We had good improvement in Nutrient & Industrial's agricultural product lines. Trade had a tough comparison against last year's record first quarter but posted an above average Q1 result in generally quiet ag markets," said President and CEO Pat Bowe. "We are feeling some market sluggishness, with farmers reluctant to engage in this lower-price environment and softer global demand for U.S. crops. We are also seeing a return of carry in the wheat markets and expect an increase in the wheat storage rates."
"We are actively pursuing opportunities for growth across our businesses. In Renewables, these opportunities include several longer-term capital projects to lower the carbon intensity of our ethanol plants, which are expected to result in positive financial results under the Inflation Reduction Act. We continue to grow the volume merchandised by our renewable diesel feedstock team. Although refinery delays have compressed the current margins, we expect this to improve as the industry build-out continues. Within Trade, we have partnered with several large consumer products companies to source lower-carbon commodities from growers and expect to continue to develop these capabilities," continued Bowe. "In Nutrient & Industrial, we recently closed on the acquisition of Reed and Perrine, a bolt-on acquisition that will result in geographic expansion of our Turf business. We continue to manage a very robust pipeline with significant growth opportunities in each of our businesses. With our well-positioned balance sheet, we have good capacity for growth."
$ in millions, except per share amounts | |||
Q1 2024 | Q1 2023 | Variance | |
Pretax Income (Loss) | $ 14.0 | $ (65.0) | $ 79.0 |
Pretax Income (Loss) Attributable to the Company1 | 6.9 | (20.6) | 27.5 |
Adjusted Pretax Income (Loss) Attributable to the Company1 | 6.6 | 8.1 | (1.5) |
Trade1 | 8.8 | 23.6 | (14.8) |
Renewables1 | 12.6 | 6.3 | 6.3 |
Nutrient & Industrial | (1.9) | (10.4) | 8.5 |
Other | (12.9) | (11.4) | (1.5) |
Net Income (Loss) Attributable to the Company | 5.6 | (14.8) | 20.4 |
Adjusted Net Income Attributable to the Company1 | 5.6 | 6.8 | (1.2) |
Diluted Earnings (Loss) Per Share ("EPS") | 0.16 | (0.44) | 0.60 |
Adjusted EPS1 | 0.16 | 0.20 | (0.04) |
EBITDA1 | 51.4 | (16.2) | 67.6 |
Adjusted EBITDA1 | $ 51.2 | $ 55.3 | $ (4.1) |
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. | |||
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate strong cash flows," said Executive Vice President and CFO Brian Valentine. "Our first quarter is typically the peak of our working capital usage cycle. Due to the strong recent cash flows and lower commodity prices, we continue to show a higher-than-normal cash position at quarter end and our $1.5 billion main credit facility remains undrawn. We remain well below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet. We have meaningful capacity for growth and continue our disciplined approach to evaluating projects that fall within our stated strategy and meet our required financial hurdles."
The company used cash from operating activities of $240 million and $334 million in the first quarter of 2024 and 2023, respectively, and cash from operations before working capital changes in the same periods was $48 million and $41 million, respectively. Cash spent on capital projects in the quarter totaled $27 million, a slight increase from 2023.
First Quarter Segment Overview
Trade Results Lower with Difficult Prior Year Comparison
The Trade segment recorded pretax income of $6 million and adjusted pretax income of $9 million for the quarter compared to pretax income of $39 million and adjusted pretax income of $24 million in the first quarter of 2023.
Trade's grain asset locations were relatively consistent year-over-year as domestic producers are still hesitant to forward sell due to lower commodity prices combined with limited basis appreciation to start the year. The merchandising business remained profitable but could not match a very strong Q1 2023. An oversupply of commodities have shifted the global supply and demand balance, moving the market from an inverse to a carry and causing prices to weaken. While carry markets benefit our assets, reduced volatility and lower prices reduce opportunities for the merchandising business. In addition, given recent geopolitical unrest, we have intentionally and prudently pulled back on activity in certain regions.
Premium food and feed product lines produced stronger results in the first quarter, and recent acquisitions and growth capital investments continue to be accretive to this line of business.
With shifting fundamentals, our mix of assets and merchandising businesses provide a solid foundation for us to benefit from large crops and carry markets, with potential improved wheat income opportunities returning to the market. Our assets are well-positioned for the grains to flow in due course. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.
Trade's first quarter adjusted EBITDA was $24 million, compared to first quarter 2023 adjusted EBITDA of $44 million.
Renewables Reported Strong Quarter on Record Production and Favorable Ethanol Margins
The Renewables segment reported pretax income of $23 million and adjusted pretax income attributable to the company of $13 million in the first quarter. For the same period in 2023, the segment reported a pretax loss of $83 million and adjusted pretax income attributable to the company of $6 million.
Ethanol crush margins improved year-over-year, further supported by favorable hedging positions entered during the fourth quarter. Production facilities continue to operate efficiently in the quarter with record production and lower natural gas prices. Renewable diesel feedstocks volumes continue to grow albeit with compressed margins on industry fundamentals. Feed ingredient demand was also improved; however, values declined on lower corn prices. All four plants have now completed their semi-annual maintenance shutdowns and are back to running at full capacity. The ethanol margin environment should remain favorable, especially at the eastern plants as corn basis in the east remains well below levels in the west.
Renewables had first quarter adjusted EBITDA of $32 million in 2024, compared to 2023 first quarter adjusted EBITDA of $22 million.
Nutrient & Industrial Ag Businesses Recover on Improved Volumes and Margin
The Nutrient & Industrial segment reported a pretax loss of $2 million, compared to a 2023 first quarter pretax loss of $10 million. While the first quarter is a seasonally slow period, the majority of the improvement was driven by increased volumes and margins in core agricultural product lines. Total group volumes were up 12% with an overall increase in margins. Spring application is delayed in our core geographic areas due to wet and cold weather. We expect strong demand over the next several weeks if planting conditions improved and the outlook for the second quarter remains solid.
Nutrient & Industrial's first quarter EBITDA was $7 million compared to 2023 first quarter EBITDA of $(1) million.
Income Taxes; Corporate
The company recorded income tax expense at an effective rate of 9% for the quarter due to the tax treatment of non-controlling interests. We anticipate a full-year adjusted effective rate of approximately 18% - 22%.
Conference Call
The company will host a webcast on Wednesday, May 8, 2024, at 11 a.m. Eastern Time, to discuss its performance and provide its outlook for the remainder of 2024. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 6704269). 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/jL4XbozdKGx and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com.
Forward-Looking Statements
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.
Company Description
The Andersons, Inc., named for 2024 to Forbes list of America's Most Successful Small Companies, Newsweek's list of America's Most Responsible Companies, and one of The Americas' Fastest Growing Companies by the Financial Times, 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) | 2024 | 2023 | |
Sales and merchandising revenues | $ 2,718,217 | $ 3,881,238 | |
Cost of sales and merchandising revenues | 2,589,897 | 3,733,227 | |
Gross profit | 128,320 | 148,011 | |
Operating, administrative and general expenses | 119,358 | 117,235 | |
Asset impairment | — | 87,156 | |
Interest expense, net | 6,522 | 16,625 | |
Other income, net | 11,528 | 8,004 | |
Income (loss) before income taxes | 13,968 | (65,001) | |
Income tax provision (benefit) | 1,303 | (5,884) | |
Net income (loss) | 12,665 | (59,117) | |
Net income (loss) attributable to noncontrolling interests | 7,084 | (44,367) | |
Net income (loss) attributable to The Andersons, Inc. | $ 5,581 | $ (14,750) | |
Earnings (loss) per share attributable to The Andersons, Inc. common shareholders: | |||
Basic earnings (loss): | $ 0.16 | $ (0.44) | |
Diluted earnings (loss): | $ 0.16 | $ (0.44) | |
The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited) | |||||
(in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 283,902 | $ 643,854 | $ 70,853 | ||
Accounts receivable, net | 701,706 | 762,549 | 1,125,071 | ||
Inventories | 994,543 | 1,166,700 | 1,551,101 | ||
Commodity derivative assets – current | 178,623 | 178,083 | 222,036 | ||
Other current assets | 55,134 | 55,777 | 81,407 | ||
Total current assets | 2,213,908 | 2,806,963 | 3,050,468 | ||
Other assets: | |||||
Goodwill | 127,856 | 127,856 | 129,342 | ||
Other intangible assets, net | 80,527 | 85,579 | 95,134 | ||
Right of use assets, net | 52,541 | 54,234 | 59,209 | ||
Other assets, net | 97,128 | 87,010 | 89,174 | ||
Total other assets | 358,052 | 354,679 | 372,859 | ||
Property, plant and equipment, net | 689,113 | 693,365 | 678,717 | ||
Total assets | $ 3,261,073 | $ 3,855,007 | $ 4,102,044 | ||
Liabilities and equity | |||||
Current liabilities: | |||||
Short-term debt | $ 10,148 | $ 43,106 | $ 638,210 | ||
Trade and other payables | 625,836 | 1,055,473 | 768,872 | ||
Customer prepayments and deferred revenue | 174,651 | 187,054 | 309,546 | ||
Commodity derivative liabilities – current | 67,079 | 90,849 | 107,983 | ||
Current maturities of long-term debt | 27,617 | 27,561 | 85,567 | ||
Accrued expenses and other current liabilities | 177,953 | 232,288 | 202,133 | ||
Total current liabilities | 1,083,284 | 1,636,331 | 2,112,311 | ||
Long-term lease liabilities | 31,223 | 31,659 | 35,727 | ||
Long-term debt, less current maturities | 556,174 | 562,960 | 486,892 | ||
Deferred income taxes | 59,149 | 58,581 | 54,391 | ||
Other long-term liabilities | 55,593 | 49,089 | 66,311 | ||
Total liabilities | 1,785,423 | 2,338,620 | 2,755,632 | ||
Total equity | 1,475,650 | 1,516,387 | 1,346,412 | ||
Total liabilities and equity | $ 3,261,073 | $ 3,855,007 | $ 4,102,044 | ||
The Andersons, Inc. Consolidated Statements of Cash Flows (unaudited) | |||
Three months ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Operating Activities | |||
Net income (loss) | $ 12,665 | $ (59,117) | |
Adjustments to reconcile net income (loss) to cash used in operating activities: | |||
Depreciation and amortization | 30,949 | 32,220 | |
Asset impairment | — | 87,156 | |
Other | 4,795 | (2,230) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 57,725 | 125,113 | |
Inventories | 169,083 | 178,010 | |
Commodity derivatives | (28,498) | 83,148 | |
Other current and non-current assets | 1,923 | (17,543) | |
Payables and other current and non-current liabilities | (488,269) | (760,292) | |
Net cash used in operating activities | (239,627) | (333,535) | |
Investing Activities | |||
Purchases of property, plant and equipment and capitalized software | (26,775) | (25,470) | |
Proceeds from sale of Rail assets | — | 2,871 | |
Other | 4,723 | 2,792 | |
Net cash used in investing activities | (22,052) | (19,807) | |
Financing Activities | |||
Net (payments) receipts under short-term lines of credit | (31,913) | 363,619 | |
Payments of long-term debt | (6,870) | (30,251) | |
Distributions to noncontrolling interest owner | (44,910) | (9,980) | |
Dividends paid | (6,516) | (6,279) | |
Value of shares withheld for taxes | (8,071) | (6,616) | |
Other | — | (1,676) | |
Net cash (used in) provided by financing activities | (98,280) | 308,817 | |
Effect of exchange rates on cash and cash equivalents | 7 | 109 | |
Decrease in cash and cash equivalents | (359,952) | (44,416) | |
Cash and cash equivalents at beginning of period | 643,854 | 115,269 | |
Cash and cash equivalents at end of period | $ 283,902 | $ 70,853 | |
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) | 2024 | 2023 | |
Net income (loss) | $ 12,665 | $ (59,117) | |
Net income (loss) attributable to noncontrolling interests | 7,084 | (44,367) | |
Net income (loss) attributable to The Andersons, Inc. | 5,581 | (14,750) | |
Adjustments: | |||
Transaction related compensation | 2,852 | 1,668 | |
Gain on deconsolidation of joint venture | (3,117) | — | |
Insured inventory recoveries | — | (17,390) | |
Asset impairment | — | 44,450 | |
Income tax impact of adjustments1 | 279 | (7,182) | |
Total adjusting items, net of tax | 14 | 21,546 | |
Adjusted net income attributable to The Andersons, Inc. | $ 5,595 | $ 6,796 | |
Diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders | $ 0.16 | $ (0.44) | |
Impact on diluted earnings (loss) per share | $ — | $ 0.64 | |
Adjusted diluted earnings per share | $ 0.16 | $ 0.20 | |
1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of certain transaction related compensation in both 2024 and 2023, respectively.
Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) 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. and Adjusted diluted earnings (loss) 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 per share 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) per share amount for each specified item. |
The Andersons, Inc. Segment Data (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Three months ended March 31, 2024 | |||||||||
Sales and merchandising revenues | $ 1,893,859 | $ 657,039 | $ 167,319 | $ — | $ 2,718,217 | ||||
Gross profit | 78,282 | 26,570 | 23,468 | — | 128,320 | ||||
Operating, administrative and general expenses | 72,258 | 7,997 | 25,443 | 13,660 | 119,358 | ||||
Other income, net | 5,533 | 4,750 | 1,048 | 197 | 11,528 | ||||
Income (loss) before income taxes | 5,924 | 22,791 | (1,850) | (12,897) | 13,968 | ||||
Income attributable to noncontrolling interests | — | 7,084 | — | — | 7,084 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 5,924 | $ 15,707 | $ (1,850) | $ (12,897) | $ 6,884 | ||||
Adjustments to income (loss) before income taxes2 | 2,852 | (3,117) | — | — | (265) | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 8,776 | $ 12,590 | $ (1,850) | $ (12,897) | $ 6,619 | ||||
Three months ended March 31, 2023 | |||||||||
Sales and merchandising revenues | $ 2,877,780 | $ 839,516 | $ 163,942 | $ — | $ 3,881,238 | ||||
Gross profit | 117,178 | 15,803 | 15,030 | — | 148,011 | ||||
Operating, administrative and general expenses | 71,980 | 8,904 | 24,132 | 12,219 | 117,235 | ||||
Other income, net | 5,983 | 841 | 846 | 334 | 8,004 | ||||
Income (loss) before income taxes | 39,364 | (82,513) | (10,438) | (11,414) | (65,001) | ||||
Loss attributable to noncontrolling interests | — | (44,367) | — | — | (44,367) | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 39,364 | $ (38,146) | $ (10,438) | $ (11,414) | $ (20,634) | ||||
Adjustments to income (loss) before income taxes2 | (15,722) | 44,450 | — | — | 28,728 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 23,642 | $ 6,304 | $ (10,438) | $ (11,414) | $ 8,094 | ||||
1 Income (loss) 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) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of a $42.7 million difference in the Renewables segment which represents the asset impairment expense attributable to the non-controlling interest that is reflected in Income attributable to the noncontrolling interest within the reconciliation above. |
The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Three months ended March 31, 2024 | |||||||||
Net income (loss) | $ 5,924 | $ 22,791 | $ (1,850) | $ (14,200) | $ 12,665 | ||||
Interest expense (income) | 5,633 | 532 | 923 | (566) | 6,522 | ||||
Tax provision | — | — | — | 1,303 | 1,303 | ||||
Depreciation and amortization | 9,255 | 11,965 | 7,793 | 1,936 | 30,949 | ||||
EBITDA | 20,812 | 35,288 | 6,866 | (11,527) | 51,439 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 2,852 | — | — | — | 2,852 | ||||
Gain on deconsolidation of joint venture | — | (3,117) | — | — | (3,117) | ||||
Total adjusting items | 2,852 | (3,117) | — | — | (265) | ||||
Adjusted EBITDA | $ 23,664 | $ 32,171 | $ 6,866 | $ (11,527) | $ 51,174 | ||||
Three months ended March 31, 2023 | |||||||||
Net income (loss) | $ 39,364 | $ (82,513) | $ (10,438) | $ (5,530) | $ (59,117) | ||||
Interest expense (income) | 11,817 | 3,097 | 2,182 | (471) | 16,625 | ||||
Tax benefit | — | — | — | (5,884) | (5,884) | ||||
Depreciation and amortization | 8,645 | 14,472 | 6,957 | 2,146 | 32,220 | ||||
EBITDA | 59,826 | (64,944) | (1,299) | (9,739) | (16,156) | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 1,668 | — | — | — | 1,668 | ||||
Insured inventory recoveries | (17,390) | — | — | — | (17,390) | ||||
Asset impairment | — | 87,156 | — | — | 87,156 | ||||
Total adjusting items | (15,722) | 87,156 | — | — | 71,434 | ||||
Adjusted EBITDA | $ 44,104 | $ 22,212 | $ (1,299) | $ (9,739) | $ 55,278 | ||||
Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. |
The Andersons, Inc. Trailing Twelve Months of EBITDA and Adjusted EBITDA A non-GAAP financial measure (unaudited) | |||||||||
Three Months Ended, | Twelve months ended | ||||||||
(in thousands) | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | |||||
Net income | $ 82,686 | $ 30,523 | $ 78,437 | $ 12,665 | $ 204,311 | ||||
Interest expense | 13,953 | 8,188 | 8,101 | 6,522 | 36,764 | ||||
Tax provision | 21,732 | 7,862 | 13,324 | 1,303 | 44,221 | ||||
Depreciation and amortization | 30,365 | 31,215 | 31,306 | 30,949 | 123,835 | ||||
EBITDA | 148,736 | 77,788 | 131,168 | 51,439 | 409,131 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 939 | 1,999 | 3,212 | 2,852 | 9,002 | ||||
Gain on sale of assets | — | (5,643) | — | — | (5,643) | ||||
Gain on cost method investment | — | (4,798) | — | — | (4,798) | ||||
Impairment on equity method investments | — | 963 | — | — | 963 | ||||
Insured inventory expenses | 1,310 | — | — | — | 1,310 | ||||
Gain on deconsolidation of joint venture | (6,544) | — | — | (3,117) | (9,661) | ||||
Goodwill impairment | — | — | 686 | — | 686 | ||||
Total adjusting items | (4,295) | (7,479) | 3,898 | (265) | (8,141) | ||||
Adjusted EBITDA | $ 144,441 | $ 70,309 | $ 135,066 | $ 51,174 | $ 400,990 | ||||
Three Months Ended, | Twelve months ended | ||||||||
June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||
Net income (loss) | $ 102,400 | $ 24,880 | $ 21,170 | $ (59,117) | $ 89,333 | ||||
Interest expense | 16,921 | 14,982 | 14,087 | 16,625 | 62,615 | ||||
Tax provision (benefit) | 15,753 | 9,839 | 9,933 | (5,884) | 29,641 | ||||
Depreciation and amortization | 33,567 | 33,322 | 33,476 | 32,220 | 132,585 | ||||
EBITDA | 168,641 | 83,023 | 78,666 | (16,156) | 314,174 | ||||
Adjusting items impacting EBITDA: | |||||||||
Insured inventory expenses (recoveries) | — | — | 15,993 | (17,390) | (1,397) | ||||
Transaction related compensation | — | — | — | 1,668 | 1,668 | ||||
Asset impairment including equity method investments | 4,455 | — | 9,000 | 87,156 | 100,611 | ||||
Gain on sale of frac sand assets | (3,762) | — | — | — | (3,762) | ||||
Total adjusting items | 693 | — | 24,993 | 71,434 | 97,120 | ||||
Adjusted EBITDA | $ 169,334 | $ 83,023 | $ 103,659 | $ 55,278 | $ 411,294 | ||||
The Andersons, Inc. Cash from Operations Before Working Capital Changes A non-GAAP financial measure (unaudited) | |||
Three months ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Cash used in operating activities | $ (239,627) | $ (333,535) | |
Changes in operating assets and liabilities | |||
Accounts receivable | 57,725 | 125,113 | |
Inventories | 169,083 | 178,010 | |
Commodity derivatives | (28,498) | 83,148 | |
Other current and non-current assets | 1,923 | (17,543) | |
Payables and other current and non-current liabilities | (488,269) | (760,292) | |
Total changes in operating assets and liabilities | (288,036) | (391,564) | |
Adjusting items impacting cash from operations before working capital changes: | |||
Less: Insured inventory recoveries | — | (17,390) | |
Cash from operations before working capital changes | $ 48,409 | $ 40,639 | |
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.