Third Quarter Highlights:
- Company reported net income attributable to The Andersons of
$27 million , or$0.80 per diluted share and adjusted net income of$25 million , or$0.72 per diluted share - Adjusted EBITDA was
$97 million , producing a record for the third quarter - Renewables reported best-ever third quarter pretax income of
$53 million and pretax income attributable to The Andersons of$28 million on strong operating performance and ethanol margins - Trade generated increased year-over-year pretax income of
$26 million and adjusted pretax income of$23 million
"Overall, we are pleased with our third quarter results given the lower commodity prices and reduced volatility in the ag markets. Renewables had a very strong quarter with increased ethanol production and improved yields in a period of good but softening crush margins. Trade results were significantly better than last year and include improved performance in our assets. Increased volume and margins in our specialty liquids and manufactured product lines resulted in improved results in Nutrient & Industrial," said President and CEO
"We continue to pursue growth opportunities. Most recently, we announced the closing of an
$ in millions, except per share amounts | ||||||
Q3 2024 | Q3 2023 | Variance | YTD 2024 | YTD 2023 | Variance | |
Pretax Income | $ 62.2 | $ 38.4 | $ 23.8 | $ 133.5 | $ 77.8 | $ 55.7 |
Pretax Income Attributable to the Company1 | 38.1 | 17.6 | 20.5 | 85.8 | 73.7 | 12.1 |
Adjusted Pretax Income Attributable to the Company1 | 34.6 | 10.1 | 24.5 | 86.1 | 90.7 | (4.6) |
Trade1 | 22.7 | 5.4 | 17.3 | 41.0 | 36.3 | 4.7 |
Renewables1 | 28.5 | 26.3 | 2.2 | 63.8 | 65.0 | (1.2) |
Nutrient & Industrial | (6.1) | (8.5) | 2.4 | 15.4 | 23.7 | (8.3) |
Other1 | (10.5) | (13.1) | 2.6 | (34.1) | (34.3) | 0.2 |
Net Income Attributable to the Company | 27.4 | 9.7 | 17.7 | 68.9 | 50.0 | 18.9 |
Adjusted Net Income Attributable to the Company1 | 24.7 | 4.6 | 20.1 | 69.8 | 63.7 | 6.1 |
Diluted Earnings Per Share ("EPS") | 0.80 | 0.28 | 0.52 | 2.01 | 1.46 | 0.55 |
Adjusted EPS1 | 0.72 | 0.13 | 0.59 | 2.04 | 1.86 | 0.18 |
EBITDA1 | 101.0 | 77.8 | 23.2 | 246.6 | 210.4 | 36.2 |
Adjusted EBITDA from Continuing Operations1 | $ 97.4 | $ 70.3 | $ 27.1 | $ 246.9 | $ 270.0 | $ (23.1) |
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. | ||||||
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate consistent cash flows throughout the shift in ag markets, and our debt remains at a modest level," said Executive Vice President and CFO
The company used cash from operating activities of
Third Quarter Segment Overview
Trade Results Resilient in Less Volatile Ag Markets
The Trade segment recorded pretax income of
Results from our grain asset footprint were better than the prior year, due to strong elevation margins and space income, primarily related to corn and wheat. Trade's growing specialty ingredients business continued to benefit from recent growth investments. The merchandising business remained profitable with well-supplied commodity markets and limited volatility. As expected, farmer engagement ramped up during the quarter to bring significant old crop bushels to market and forward sell new crop in anticipation of an early and robust harvest. For comparison, prior year results include a
The portfolio mix of assets, ingredients and merchandising businesses provides a solid foundation to benefit from large crops and carry markets, as well as tight, demand-driven markets. Assets are well-positioned for an early and large harvest, which should allow us to buy bushels at low basis levels. Domestic specialty ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.
Trade's third quarter adjusted EBITDA was
Renewables had
The Renewables segment reported pretax income of
Margins on ethanol production improved year-over-year on significantly lower corn basis in the eastern plants, despite a reduction in ethanol board crush margins in the quarter. Production facilities continued to operate efficiently with increased volume and higher ethanol yields. Plant co-product values were lower, with feed ingredients following the overall price reduction of corn; however, feed ingredient demand improved year-over-year. Renewable diesel feedstock volumes continue to grow albeit with compressed margins on industry fundamentals. All four plants completed their semi-annual maintenance shutdowns in the third quarter. A favorable ethanol margin environment should continue, supported by exports, higher blending rates and continued lower corn basis levels in the east.
Renewables had third quarter EBITDA of
Nutrient & Industrial Improved in
The Nutrient & Industrial segment reported a pretax loss of
Nutrient & Industrial's third quarter EBITDA was
Income Taxes; Corporate
The company recorded income tax expense at an effective rate of 17% for the quarter. This rate was impacted by the tax treatment of noncontrolling interests and federal tax credits. We anticipate a full-year adjusted effective rate of approximately 14% - 18%.
Conference Call
The company will host a webcast on
To access the webcast, click on the link: https://app.webinar.net/Bz3omkN6Ver 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 in 2024 to Forbes list of America's Most Successful Small Companies, Newsweek's list of America's Most Responsible Companies, and one of The
The Andersons, Inc. Condensed Consolidated Statements of Operations (unaudited) | |||||||
Three months ended | Nine months ended | ||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Sales and merchandising revenues | $ 2,620,988 | $ 3,635,691 | $ 8,134,410 | ||||
Cost of sales and merchandising revenues | 2,443,863 | 3,477,990 | 7,653,594 | 11,009,463 | |||
Gross profit | 177,125 | 157,701 | 480,816 | 527,649 | |||
Operating, administrative and general expenses | 120,494 | 126,306 | 356,466 | 359,548 | |||
Asset impairment | ” | ” | ” | 87,156 | |||
Interest expense, net | 8,361 | 8,188 | 21,494 | 38,766 | |||
Other income, net | 13,922 | 15,178 | 30,651 | 35,623 | |||
Income before income taxes | 62,192 | 38,385 | 133,507 | 77,802 | |||
Income tax provision | 10,731 | 7,862 | 16,911 | 23,710 | |||
Net income | 51,461 | 30,523 | 116,596 | 54,092 | |||
Net income attributable to noncontrolling interests | 24,096 | 20,815 | 47,674 | 4,088 | |||
Net income attributable to The Andersons, Inc. | $ 27,365 | $ 9,708 | $ 68,922 | $ 50,004 | |||
Earnings per share attributable to The Andersons, Inc. common shareholders: | |||||||
Basic earnings: | $ 0.80 | $ 0.29 | $ 2.03 | $ 1.48 | |||
Diluted earnings: | $ 0.80 | $ 0.28 | $ 2.01 | $ 1.46 | |||
The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited) | |||||
(in thousands) | |||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 454,065 | $ 643,854 | $ 418,055 | ||
Accounts receivable, net | 756,618 | 762,549 | 816,686 | ||
Inventories | 884,339 | 1,166,700 | 985,292 | ||
Commodity derivative assets “ current | 122,326 | 178,083 | 239,595 | ||
Other current assets | 113,726 | 55,777 | 67,471 | ||
Total current assets | 2,331,074 | 2,806,963 | 2,527,099 | ||
Property, plant and equipment, net | 709,951 | 693,365 | 680,188 | ||
Other assets, net | 347,274 | 354,679 | 380,815 | ||
Total assets | $ 3,388,299 | $ 3,855,007 | $ 3,588,102 | ||
Liabilities and equity | |||||
Current liabilities: | |||||
Short-term debt | $ 14,716 | $ 43,106 | $ 14,138 | ||
Trade and other payables | 774,347 | 1,055,473 | 822,153 | ||
Customer prepayments and deferred revenue | 67,899 | 187,054 | 211,867 | ||
Commodity derivative liabilities “ current | 85,640 | 90,849 | 142,511 | ||
Current maturities of long-term debt | 27,727 | 27,561 | 27,535 | ||
Accrued expenses and other current liabilities | 207,543 | 232,288 | 189,430 | ||
Total current liabilities | 1,177,872 | 1,636,331 | 1,407,634 | ||
Long-term debt, less current maturities | 542,564 | 562,960 | 569,730 | ||
Other long-term liabilities | 144,855 | 139,329 | 161,652 | ||
Total liabilities | 1,865,291 | 2,338,620 | 2,139,016 | ||
Total equity | 1,523,008 | 1,516,387 | 1,449,086 | ||
Total liabilities and equity | $ 3,388,299 | $ 3,855,007 | $ 3,588,102 | ||
The Andersons, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) | |||
Nine months ended | |||
(in thousands) | 2024 | 2023 | |
Operating Activities | |||
Net income | $ 116,596 | $ 54,092 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 91,626 | 93,800 | |
Asset impairment | ” | 87,156 | |
Other | 15,146 | 1,347 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,498 | 406,263 | |
Inventories | 278,947 | 748,118 | |
Commodity derivatives | 49,327 | 99,479 | |
Other current and non-current assets | (59,376) | 2,048 | |
Payables and other current and non-current liabilities | (433,069) | (796,216) | |
Net cash provided by operating activities | 62,695 | 696,087 | |
Investing Activities | |||
Purchases of property, plant and equipment and capitalized software | (93,230) | (108,718) | |
Acquisition of businesses, net of cash acquired | (9,561) | (24,385) | |
Insurance proceeds | 9,219 | ” | |
Proceeds from sale of a business | ” | 10,318 | |
Other | 2,980 | 5,522 | |
Net cash used in investing activities | (90,592) | (117,263) | |
Financing Activities | |||
Net payments under short-term lines of credit | (27,054) | (261,152) | |
Payments of long-term debt | (20,649) | (42,734) | |
Distributions to noncontrolling interest owner | (87,325) | (44,304) | |
Dividends paid | (19,466) | (18,771) | |
Value of shares withheld for taxes | (8,101) | (6,627) | |
Proceeds from issuance of long-term debt | ” | 100,000 | |
Other | ” | (2,258) | |
Net cash used in financing activities | (162,595) | (275,846) | |
Effect of exchange rates on cash and cash equivalents | 703 | (192) | |
(Decrease) increase in cash and cash equivalents | (189,789) | 302,786 | |
Cash and cash equivalents at beginning of period | 643,854 | 115,269 | |
Cash and cash equivalents at end of period | $ 454,065 | $ 418,055 | |
The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited) | |||||||
Three months ended | Nine months ended | ||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 51,461 | $ 30,523 | $ 116,596 | $ 54,092 | |||
Net income attributable to noncontrolling interests | 24,096 | 20,815 | 47,674 | 4,088 | |||
Net income attributable to The Andersons, Inc. | 27,365 | 9,708 | 68,922 | 50,004 | |||
Adjustments: | |||||||
Gain on sale of assets | ” | (5,643) | ” | (5,643) | |||
Gain on cost method investment | ” | (4,798) | ” | (4,798) | |||
Transaction related compensation | 1,668 | 1,999 | 8,568 | 4,606 | |||
Gain on deconsolidation of joint venture | ” | ” | (3,117) | (6,544) | |||
Insurance recoveries | (5,204) | ” | (5,204) | (16,080) | |||
Asset impairment | ” | 963 | ” | 45,413 | |||
Income tax impact of adjustments1 | 884 | 2,367 | 632 | (3,255) | |||
Total adjusting items, net of tax | (2,652) | (5,112) | 879 | 13,699 | |||
Adjusted net income attributable to The Andersons, Inc. | $ 24,713 | $ 4,596 | $ 69,801 | $ 63,703 | |||
Diluted earnings per share attributable to The Andersons, Inc. common shareholders | $ 0.80 | $ 0.28 | $ 2.01 | $ 1.46 | |||
Impact on diluted earnings (loss) per share | $ (0.08) | $ (0.15) | $ 0.03 | $ 0.40 | |||
Adjusted diluted earnings per share | $ 0.72 | $ 0.13 | $ 2.04 | $ 1.86 | |||
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 | |||||||||
Sales and merchandising revenues | $ 1,747,715 | $ 745,206 | $ 128,067 | $ ” | $ 2,620,988 | ||||
Gross profit | 98,776 | 60,375 | 17,974 | ” | 177,125 | ||||
Operating, administrative and general expenses | 75,825 | 8,839 | 24,591 | 11,239 | 120,494 | ||||
Other income, net | 8,720 | 1,760 | 3,323 | 119 | 13,922 | ||||
Income (loss) before income taxes | 26,266 | 52,583 | (6,132) | (10,525) | 62,192 | ||||
Income attributable to noncontrolling interests | ” | 24,096 | ” | ” | 24,096 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 26,266 | $ 28,487 | $ (6,132) | $ (10,525) | $ 38,096 | ||||
Adjustments to income (loss) before income taxes2 | (3,536) | ” | ” | ” | (3,536) | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 22,730 | $ 28,487 | $ (6,132) | $ (10,525) | $ 34,560 | ||||
Three months ended | |||||||||
Sales and merchandising revenues | $ 2,639,059 | $ 868,099 | $ 128,533 | $ ” | $ 3,635,691 | ||||
Gross profit | 85,997 | 53,045 | 18,659 | ” | 157,701 | ||||
Operating, administrative and general expenses | 79,247 | 8,332 | 26,233 | 12,494 | 126,306 | ||||
Other income, net | 7,838 | 3,346 | 606 | 3,388 | 15,178 | ||||
Income (loss) before income taxes | 8,073 | 47,096 | (8,452) | (8,332) | 38,385 | ||||
Income attributable to noncontrolling interests | ” | 20,815 | ” | ” | 20,815 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 8,073 | $ 26,281 | $ (8,452) | $ (8,332) | $ 17,570 | ||||
Adjustments to income (loss) before income taxes2 | (2,681) | ” | ” | (4,798) | (7,479) | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 5,392 | $ 26,281 | $ (8,452) | $ (13,130) | $ 10,091 | ||||
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. |
The Andersons, Inc. Segment Data (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Nine months ended | |||||||||
Sales and merchandising revenues | $ 5,399,315 | $ 2,088,372 | $ 646,723 | $ ” | $ 8,134,410 | ||||
Gross profit | 256,706 | 133,672 | 90,438 | ” | 480,816 | ||||
Operating, administrative and general expenses | 220,886 | 24,592 | 75,427 | 35,561 | 356,466 | ||||
Other income (loss), net | 18,287 | 7,686 | 4,880 | (202) | 30,651 | ||||
Income (loss) before income taxes | 37,615 | 114,574 | 15,437 | (34,119) | 133,507 | ||||
Income attributable to noncontrolling interests | ” | 47,674 | ” | ” | 47,674 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 37,615 | $ 66,900 | $ 15,437 | $ (34,119) | $ 85,833 | ||||
Adjustments to income (loss) before income taxes2 | 3,364 | (3,117) | ” | ” | 247 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 40,979 | $ 63,783 | $ 15,437 | $ (34,119) | $ 86,080 | ||||
Nine months ended | |||||||||
Sales and merchandising revenues | $ 8,213,649 | $ 2,585,396 | $ 738,067 | $ ” | $ 11,537,112 | ||||
Gross profit | 283,886 | 137,140 | 106,623 | ” | 527,649 | ||||
Operating, administrative and general expenses | 220,373 | 24,804 | 79,251 | 35,120 | 359,548 | ||||
Other income, net | 18,149 | 11,655 | 1,952 | 3,867 | 35,623 | ||||
Income (loss) before income taxes | 52,427 | 31,187 | 23,675 | (29,487) | 77,802 | ||||
Income attributable to noncontrolling interests | ” | 4,088 | ” | ” | 4,088 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 52,427 | $ 27,099 | $ 23,675 | $ (29,487) | $ 73,714 | ||||
Adjustments to income (loss) before income taxes2 | (16,154) | 37,906 | ” | (4,798) | 16,954 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 36,273 | $ 65,005 | $ 23,675 | $ (34,285) | $ 90,668 | ||||
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 |
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 | |||||||||
Net income (loss) | $ 26,266 | $ 52,583 | $ (6,132) | $ (21,256) | $ 51,461 | ||||
Interest expense (income) | 5,405 | 713 | 2,838 | (595) | 8,361 | ||||
Tax provision | ” | ” | ” | 10,731 | 10,731 | ||||
Depreciation and amortization | 9,377 | 11,942 | 8,145 | 944 | 30,408 | ||||
EBITDA | 41,048 | 65,238 | 4,851 | (10,176) | 100,961 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 1,668 | ” | ” | ” | 1,668 | ||||
Insurance recoveries | (5,204) | ” | ” | ” | (5,204) | ||||
Total adjusting items | (3,536) | ” | ” | ” | (3,536) | ||||
Adjusted EBITDA | $ 37,512 | $ 65,238 | $ 4,851 | $ (10,176) | $ 97,425 | ||||
Three months ended | |||||||||
Net income (loss) | $ 8,073 | $ 47,096 | $ (8,452) | $ (16,194) | $ 30,523 | ||||
Interest expense (income) | 6,515 | 963 | 1,484 | (774) | 8,188 | ||||
Tax provision | ” | ” | ” | 7,862 | 7,862 | ||||
Depreciation and amortization | 9,331 | 12,328 | 7,464 | 2,092 | 31,215 | ||||
EBITDA | 23,919 | 60,387 | 496 | (7,014) | 77,788 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 1,999 | ” | ” | ” | 1,999 | ||||
Gain on cost method investment | ” | ” | ” | (4,798) | (4,798) | ||||
Gain on sale of assets | (5,643) | ” | ” | ” | (5,643) | ||||
Gain on deconsolidation of joint venture | 963 | ” | ” | ” | 963 | ||||
Total adjusting items | (2,681) | ” | ” | (4,798) | (7,479) | ||||
Adjusted EBITDA | $ 21,238 | $ 60,387 | $ 496 | $ (11,812) | $ 70,309 | ||||
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. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Nine months ended | |||||||||
Net income (loss) | $ 37,615 | $ 114,574 | $ 15,437 | $ (51,030) | $ 116,596 | ||||
Interest expense (income) | 16,492 | 2,192 | 4,454 | (1,644) | 21,494 | ||||
Tax provision | ” | ” | ” | 16,911 | 16,911 | ||||
Depreciation and amortization | 27,946 | 35,626 | 23,903 | 4,151 | 91,626 | ||||
EBITDA | 82,053 | 152,392 | 43,794 | (31,612) | 246,627 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 8,568 | ” | ” | ” | 8,568 | ||||
Insurance recoveries | (5,204) | ” | ” | ” | (5,204) | ||||
Gain on deconsolidation of joint venture | ” | (3,117) | ” | ” | (3,117) | ||||
Total adjusting items | 3,364 | (3,117) | ” | ” | 247 | ||||
Adjusted EBITDA | $ 85,417 | $ 149,275 | $ 43,794 | $ (31,612) | $ 246,874 | ||||
Nine months ended | |||||||||
Net income (loss) | $ 52,427 | $ 31,187 | $ 23,675 | $ (53,197) | $ 54,092 | ||||
Interest expense (income) | 29,235 | 5,648 | 5,649 | (1,766) | 38,766 | ||||
Tax provision | ” | ” | ” | 23,710 | 23,710 | ||||
Depreciation and amortization | 26,659 | 39,224 | 21,518 | 6,399 | 93,800 | ||||
EBITDA | 108,321 | 76,059 | 50,842 | (24,854) | 210,368 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 4,606 | ” | ” | ” | 4,606 | ||||
Insurance recoveries | (16,080) | ” | ” | ” | (16,080) | ||||
Gain on sale of assets | (5,643) | ” | ” | ” | (5,643) | ||||
Gain on deconsolidation of joint venture | ” | (6,544) | ” | ” | (6,544) | ||||
Gain on cost method investment | ” | ” | ” | (4,798) | (4,798) | ||||
Asset impairment | 963 | 87,156 | ” | ” | 88,119 | ||||
Total adjusting items | (16,154) | 80,612 | ” | (4,798) | 59,660 | ||||
Adjusted EBITDA | $ 92,167 | $ 156,671 | $ 50,842 | $ (29,652) | $ 270,028 | ||||
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) | December |
|
| September | |||||
Net income | $ 78,437 | $ 12,665 | $ 52,470 | $ 51,461 | $ 195,033 | ||||
Interest expense | 8,101 | 6,522 | 6,611 | 8,361 | 29,595 | ||||
Tax provision | 13,324 | 1,303 | 4,876 | 10,731 | 30,234 | ||||
Depreciation and amortization | 31,306 | 30,949 | 30,269 | 30,408 | 122,932 | ||||
EBITDA | 131,168 | 51,439 | 94,226 | 100,961 | 377,794 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 3,212 | 2,852 | 4,049 | 1,668 | 11,781 | ||||
Insurance recoveries | ” | ” | ” | (5,204) | (5,204) | ||||
Gain on deconsolidation of joint venture | ” | (3,117) | ” | ” | (3,117) | ||||
Goodwill impairment | 686 | ” | ” | ” | 686 | ||||
Total adjusting items | 3,898 | (265) | 4,049 | (3,536) | 4,146 | ||||
Adjusted EBITDA | $ 135,066 | $ 51,174 | $ 98,275 | $ 97,425 | $ 381,940 | ||||
Three Months Ended, | Twelve months ended | ||||||||
December |
|
| September | ||||||
Net income (loss) | $ 21,170 | $ (59,117) | $ 82,686 | $ 30,523 | $ 75,262 | ||||
Interest expense | 14,087 | 16,625 | 13,953 | 8,188 | 52,853 | ||||
Tax provision (benefit) | 9,933 | (5,884) | 21,732 | 7,862 | 33,643 | ||||
Depreciation and amortization | 33,476 | 32,220 | 30,365 | 31,215 | 127,276 | ||||
EBITDA | 78,666 | (16,156) | 148,736 | 77,788 | 289,034 | ||||
Adjusting items impacting EBITDA: | |||||||||
Insured inventory expenses (recoveries) | 15,993 | (17,390) | 1,310 | ” | (87) | ||||
Transaction related compensation | ” | 1,668 | 939 | 1,999 | 4,606 | ||||
Gain on sale of assets | ” | ” | ” | (5,643) | (5,643) | ||||
Gain on cost method investment | ” | ” | ” | (4,798) | (4,798) | ||||
Asset impairment | 9,000 | 87,156 | ” | 963 | 97,119 | ||||
Gain on deconsolidation of joint venture | ” | ” | (6,544) | ” | (6,544) | ||||
Total adjusting items | 24,993 | 71,434 | (4,295) | (7,479) | 84,653 | ||||
Adjusted EBITDA | $ 103,659 | $ 55,278 | $ 144,441 | $ 70,309 | $ 373,687 | ||||
The Andersons, Inc. Cash from Operations Before Working Capital Changes A non-GAAP financial measure (unaudited) | |||||||
Three months ended | Nine months ended | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Cash (used in) provided by operating activities | $ (2,112) | $ 488,683 | $ 62,695 | $ 696,087 | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (11,786) | 198,396 | 3,498 | 406,263 | |||
Inventories | (198,776) | 13,263 | 278,947 | 748,118 | |||
Commodity derivatives | 13,317 | (3,274) | 49,327 | 99,479 | |||
Other current and non-current assets | (8,789) | 3,295 | (59,376) | 2,048 | |||
Payables and other current and non-current liabilities | 117,728 | 214,870 | (433,069) | (796,216) | |||
Total changes in operating assets and liabilities | (88,306) | 426,550 | (160,673) | 459,692 | |||
Adjusting items impacting cash from operations before working capital changes: | |||||||
Less: Insured inventory recoveries | ” | ” | ” | (16,080) | |||
Less: Unrealized foreign currency losses on receivables | ” | (12,088) | ” | (12,088) | |||
Cash from operations before working capital changes | $ 86,194 | $ 50,045 | $ 223,368 | $ 208,227 | |||
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. |