MAUMEE, Ohio, Aug. 4, 2020
/CNW/ -- The Andersons, Inc. (Nasdaq: ANDE) announces
financial results for the second quarter ended June 30, 2020
and business structure and organizational changes.
Second Quarter Highlights:
- Company reported net income attributable to The Andersons of
$30.4 million, or $0.92 per diluted share, and adjusted net income
of $29.3 million, or $0.88 per diluted share.
- Adjusted EBITDA attributable to the company was $70.7 million for the quarter.
- Trade Group reported pretax income
of $0.4 million and
adjusted pretax income of $1.4
million despite a tough operating environment.
- Ethanol Group reported pretax income attributable to the
company of $0.9 million due to its
timely maintenance shutdowns and improved ethanol
margins.
- Plant Nutrient Group recorded pretax income of $19.4 million driven by a strong planting
season.
- Rail Group earned $2.6 million
of pretax income due to lower car sale income.
- Company announced a reorganization of its business groups
and several leadership changes.
"I am proud of what we were able to accomplish in the second
quarter, as all four of our business groups were profitable," said
President and CEO Pat Bowe. "We are
focused on transforming The Andersons into a more cost-efficient
company positioned for scalable growth. Our vision is to be the
most nimble and innovative North American ag supply chain company.
The steps we are taking to transform the organization should ensure
that we have the right vision at the right time to continue to
serve our customers."
"Our Plant Nutrient Group's income was up more than 20 percent
due to an excellent spring planting season," continued Bowe. "Our
Ethanol Group's navigation of the unprecedented decrease in demand
due to the COVID-19 crisis helped produce good results under those
difficult conditions. The Trade Group continued to feel the effects
of a small 2019 corn crop in the East. Both the Trade Group and the
Rail Group both felt the persistent negative impact of the pandemic
on customer demand. Both groups were profitable for the
quarter."
"I want to again thank our employees, particularly those working
in our plants and operations, for continuing to demonstrate their
commitment to the company and to our customers and communities by
keeping our businesses running safely and effectively during this
time. We have maintained as our top priority, the health and safety
of our employees, who have performed admirably in these difficult
circumstances. We also extend our thanks to the health and safety
personnel in our communities who have helped respond to the
pandemic."
$ in millions,
except per share
amounts
|
|
|
|
|
Q2
2020
|
Q2
2019
|
Variance
|
YTD
2020
|
YTD
2019
|
Variance
|
Pretax Income
(Loss) Attributable to the Company1
|
$
|
18.2
|
|
$
|
40.9
|
|
$
|
(22.7)
|
|
$
|
(20.9)
|
|
$
|
21.5
|
|
$
|
(42.4)
|
|
Adjusted Pretax
Income (Loss) Attributable to the
Company1
|
21.6
|
|
44.1
|
|
(22.5)
|
|
(16.2)
|
|
36.2
|
|
(52.4)
|
|
Trade
Group
|
1.4
|
|
25.8
|
|
(24.4)
|
|
(7.2)
|
|
19.5
|
|
(26.7)
|
|
Ethanol
Group1
|
0.9
|
|
3.7
|
|
(2.8)
|
|
(23.1)
|
|
6.8
|
|
(29.9)
|
|
Plant Nutrient
Group
|
19.4
|
|
15.9
|
|
3.5
|
|
18.2
|
|
12.0
|
|
6.2
|
|
Rail Group
|
2.6
|
|
3.2
|
|
(0.6)
|
|
3.6
|
|
7.5
|
|
(3.9)
|
|
Other
|
(2.7)
|
|
(4.6)
|
|
1.9
|
|
(7.7)
|
|
(9.5)
|
|
1.8
|
|
Net Income (Loss)
Attributable to the Company1
|
30.4
|
|
29.9
|
|
0.5
|
|
(7.2)
|
|
15.9
|
|
(23.1)
|
|
Adjusted Net
Income (Loss) Attributable to the
Company1
|
29.3
|
|
32.3
|
|
(3.0)
|
|
(14.0)
|
|
27.0
|
|
(41.0)
|
|
Diluted
EPS
|
0.92
|
|
0.91
|
|
0.01
|
|
(0.22)
|
|
0.48
|
|
(0.70)
|
|
Adjusted Diluted
EPS
|
0.88
|
|
0.98
|
|
(0.10)
|
|
(0.43)
|
|
0.81
|
|
(1.24)
|
|
EBITDA
|
66.7
|
|
86.4
|
|
(19.7)
|
|
76.6
|
|
116.6
|
|
(40.0)
|
|
Adjusted EBITDA
Attributable to the Company
|
$
|
70.7
|
|
$
|
90.1
|
|
$
|
(19.4)
|
|
$
|
85.4
|
|
$
|
132.0
|
|
$
|
(46.6)
|
|
|
1 Reflects
amounts attributable to the company and excludes losses
attributable to the noncontrolling interests of $10.4 in Q2 2020,
$0.5 in Q2 2019, $23.9 for year-to-date 2020 and $0.6 for
year-to-date 2019. See non-GAAP reconciliations in the accompanying
tables.
|
Company Continues to Actively Manage COVID-19
Pandemic
The company's executive-level response team has continued to
closely monitor the crisis, share information and best practices
across the company's operations and manage its coordinated
response. It has also implemented policies for remote work and
supplemental sick time for those employees who have been impacted
by the virus. Employees continue to practice appropriate social
distancing and follow protocols for sanitation and good hygiene
developed in conjunction with the pandemic.
Strategic Business Structure and Senior Leadership Changes
Announced
The company announced strategic business structure and senior
leadership changes. Among the changes were the following:
- The Trade Group and Ethanol Group will be combined and led by
President Bill Krueger, who was
formerly president of the Trade Group. Jim
Pirolli, who was the Ethanol Group president, has been
appointed senior vice president of the combined group, which will
enable him to assume expanded responsibilities.
- The Plant Nutrient Group and Rail Group will be combined and
led by Joe McNeely, who was formerly
the president of the Rail Group.
"This new structure will enable us to focus on increasing gross
profit and enhancing service to our customers, while also managing
our cost structure," said Bowe. "The combination of the Trade and
Ethanol Groups will allow for greater strategic alignment, risk
management and integrated service to our customers. This
restructuring of our business will also result in a leaner cost
environment."
Liquidity and Cash Management
"We generated strong operating cash flows and continued to
manage capital expenditures during the second quarter," said
Executive Vice President and CFO Brian
Valentine. "As the pandemic persists, we remain very focused
on overall liquidity, including expense and cash management."
In May, the company announced that it was targeting total
expense reductions of $30 million in
2020, with approximately half of those savings expected to be
permanent in nature. The company anticipates further general and
administrative cost reductions that will be realized beginning in
early 2021.
The company still expects to spend approximately $100 million on capital projects in 2020 after
averaging more than $200 million over
the last three years. This reduction prudently preserves working
capital and supports our continued strong financial position.
Second Quarter Segment Overview
Trade Group Records Lower Adjusted Results Driven by Low
Income from Storage Assets
The Trade Group recorded pretax income of $0.4 million and adjusted pretax income of
$1.4 million for the quarter compared
to pretax income of $22.6 million and
adjusted pretax income of $25.8
million in the second quarter of 2019. The 2019 results were
positively impacted by corn and wheat basis appreciation caused by
the poor 2019 planting season and concerns about adequate grain
supplies.
- The merchandising business continued to perform well, with
comparable year-over-year results.
- The group's return on its Eastern Corn Belt assets was hurt by
the small 2019 harvest and COVID-related decreases in demand, which
resulted in compressed margins, minimal basis appreciation and
lower originations.
The group adjusted its reported pretax income by $1.0 million for stock compensation expense
associated with the 2019 acquisition of Lansing Trade Group.
The group's second quarter adjusted EBITDA was $17.5 million compared to second quarter 2019
adjusted EBITDA of $46.8 million.
The group anticipates a large corn harvest, which should improve
profitability during the latter part of the year and into 2021.
Ethanol Group Records a Profit Due to Timely Maintenance
Shutdowns and Improving Margins
The Ethanol Group reported pretax income attributable to the
company of $0.9 million in the second
quarter compared to the $3.7 million
of pretax income attributable to the company it earned in the same
period in 2019.
- Margins began to improve in early May and were strong by the
end of the quarter as improving demand outpaced increases in
industry production.
- As expected, a significant portion of the non-cash
mark-to-market losses recorded in the first quarter reversed during
the second quarter.
- The group's five plants operated at approximately 50 percent of
capacity during the quarter as planned. The group safely completed
extended maintenance shutdowns using largely its own
employees.
The group recorded adjusted EBITDA attributable to the company
of $11.0 million in the second
quarter of 2020 compared to 2019 second quarter adjusted EBITDA
attributable to the company of $4.5
million.
Plant Nutrient Group Pretax Income Increases 22 Percent
Driven by a Strong Planting Season
The Plant Nutrient Group improved its results year over year,
recording pretax income of $19.4
million compared to pretax income of $15.9 million in the same period of the prior
year. This was the fifth consecutive quarter that the group posted
improved year-over-year results.
- Volumes were up substantially due to a strong planting
season.
- Improved Engineered Granules results continued to be driven by
better procurement and operating expenses controls.
The group's current quarter EBITDA was $27.2 million compared to 2019 second quarter
EBITDA of $24.9 million.
The group's near-term outlook is guarded, as low corn prices and
COVID-related demand decreases in the industrial sector may offset
the positive impacts of continuing cost reductions, which have
improved results over the last several quarters, and new business
opportunities in Engineered Granules.
Rail Group Results Down Slightly on Lower Car Sale
Income
The Rail Group earned second quarter pretax income of
$2.6 million compared to $3.2 million in the same period of the prior
year.
- Railcar leasing results were flat year over year. Cars on
lease, average lease rate and utilization were all lower as railcar
loadings continued to decrease.
- Income from cars sales was negligible.
- Service and other pretax income was unchanged.
The group's second quarter 2020 EBITDA of $15.3 million was comparable to its second
quarter 2019 EBITDA.
The COVID-19 pandemic has caused the idling of nearly one-third
of the North American railcar fleet and has driven year-to-date
railcar loadings 16 percent lower year over year through June.
These conditions are expected to continue until the general economy
returns to normal levels, and will continue to negatively impact
lease renewals, lease rates and demand for railcar repairs.
Provision for Income Taxes Includes CARES Act
Benefits
The company's second quarter income tax provision included
additional CARES Act tax benefits of approximately $3.7 million, or $0.11 per diluted share in the current quarter
and approximately $10.3 million, or
$0.31 per diluted share year to date.
As with the impacts of the Tax Cuts and Jobs Act of 2017 and CARES
Act benefits recognized in the first quarter of 2020, the company
has excluded the current quarter benefits from its adjusted net
income. This quarter's additional benefits are expected to result
in cash refunds of nearly $14
million, bringing the total expected CARES Act refunds in
2020 to approximately $32 million. In
addition, the company's reported effective income tax rate is
substantially impacted by the income or loss earned by the
noncontrolling interests and may result in highly variable
effective tax rates in future periods.
Conference Call
The company will host a webcast on Wednesday, August 5, 2020, at 11 a.m. Eastern Daylight Time, to discuss its
performance and provide its updated outlook for 2020. To access the
call, please dial 866-439-8514 or 678-509-7568 (participant
passcode is 3588432). It is recommended that you call 10 minutes
before the conference call begins.
To access the webcast, click on the link:
http://edge.media-server.com/mmc/p/r7mauxjq. Complete the four
fields as directed and click Submit. A replay of the call can also
be accessed under the heading "Investors" on the company's website
at www.andersonsinc.com.
Investor Day Rescheduled
The company has rescheduled its investor day for the morning of
Tuesday, December 8, 2020. The
event will be presented in a virtual format. The company will
share more details about the event at a later date.
Forward-Looking Statements
This release contains forward-looking statements. These
statements involve risks and uncertainties that could cause actual
results to differ materially. Without limitation, these risks
include economic, weather and regulatory conditions, competition,
the COVID-19 pandemic 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 attributable to The Andersons, adjusted
pretax income attributable to the company, net income attributable
to the company, adjusted net income attributable to the company,
adjusted diluted earnings per share, EBITDA and adjusted EBITDA
attributable to the company provide additional information to
investors and others about its operations, allowing an evaluation
of underlying operating performance and better period-to-period
comparability. The above measures are not and should not be
considered as alternatives to pretax income, net income or net
income per share 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
Founded in 1947 in Maumee,
Ohio, The Andersons, Inc. (Nasdaq: ANDE) is a diversified
company rooted in agriculture that conducts business in the
commodity trading, ethanol, plant nutrient and rail sectors. Guided
by its Statement of Principles, The Andersons strives to provide
extraordinary service to its customers, help its employees improve,
support its communities and increase the value of the company. For
more information, please visit www.andersonsinc.com.
The Andersons,
Inc.
Condensed
Consolidated Statements of Operations (unaudited)
|
|
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
(in thousands, except
per share data)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Sales and
merchandising revenues
|
$
|
1,890,180
|
|
|
$
|
2,325,041
|
|
|
$
|
3,743,286
|
|
|
$
|
4,301,833
|
|
Cost of sales and
merchandising revenues
|
1,783,914
|
|
|
2,164,313
|
|
|
3,573,890
|
|
|
4,031,441
|
|
Gross
profit
|
106,266
|
|
|
160,728
|
|
|
169,396
|
|
|
270,392
|
|
Operating,
administrative and general expenses
|
90,136
|
|
|
106,918
|
|
|
195,196
|
|
|
220,267
|
|
Asset
impairment
|
—
|
|
|
3,081
|
|
|
—
|
|
|
3,081
|
|
Interest expense,
net
|
11,827
|
|
|
15,727
|
|
|
27,414
|
|
|
31,637
|
|
Other income,
net:
|
|
|
|
|
|
|
|
Equity in earnings
(loss) of affiliates, net
|
79
|
|
|
(157)
|
|
|
209
|
|
|
1,362
|
|
Other income,
net
|
3,450
|
|
|
5,563
|
|
|
8,263
|
|
|
4,049
|
|
Income (loss) before
income taxes
|
7,832
|
|
|
40,408
|
|
|
(44,742)
|
|
|
20,818
|
|
Income tax (benefit)
provision
|
(12,200)
|
|
|
10,997
|
|
|
(13,664)
|
|
|
5,555
|
|
Net income
(loss)
|
20,032
|
|
|
29,411
|
|
|
(31,078)
|
|
|
15,263
|
|
Net loss attributable
to the noncontrolling interests
|
(10,407)
|
|
|
(477)
|
|
|
(23,856)
|
|
|
(632)
|
|
Net income (loss)
attributable to The Andersons, Inc.
|
$
|
30,439
|
|
|
$
|
29,888
|
|
|
$
|
(7,222)
|
|
|
$
|
15,895
|
|
|
|
|
|
|
|
|
|
Per common
share:
|
|
|
|
|
|
|
|
Basic earnings (loss)
attributable to The Andersons, Inc. common shareholders
|
$
|
0.92
|
|
|
$
|
0.92
|
|
|
$
|
(0.22)
|
|
|
$
|
0.49
|
|
Diluted earnings
(loss) attributable to The Andersons, Inc. common
shareholders
|
$
|
0.92
|
|
|
$
|
0.91
|
|
|
$
|
(0.22)
|
|
|
$
|
0.48
|
|
The Andersons,
Inc.
Reconciliation to
Adjusted Net Income (unaudited)
|
|
|
|
|
(in thousands, except
per share data)
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income (loss)
attributable to The Andersons, Inc.
|
$
|
30,439
|
|
|
$
|
29,888
|
|
|
$
|
(7,222)
|
|
|
$
|
15,895
|
|
Items adjusted for
certain gains and charges:
|
|
|
|
|
|
|
|
Acquisition
costs
|
—
|
|
|
1,229
|
|
|
—
|
|
|
5,872
|
|
Transaction related
stock compensation
|
1,017
|
|
|
1,346
|
|
|
2,348
|
|
|
4,762
|
|
Asset
impairment
|
—
|
|
|
3,081
|
|
|
—
|
|
|
3,081
|
|
Loss (gain) from
remeasurement of equity method investments
|
—
|
|
|
(2,439)
|
|
|
—
|
|
|
1,073
|
|
Severance
costs
|
2,341
|
|
|
—
|
|
|
2,341
|
|
|
—
|
|
Income tax impact of
adjustments (a)
|
(4,541)
|
|
|
(803)
|
|
|
(11,451)
|
|
|
(3,696)
|
|
Total
adjustments
|
(1,183)
|
|
|
2,414
|
|
|
(6,762)
|
|
|
11,092
|
|
Adjusted net income
(loss) attributable to The Andersons, Inc.
|
$
|
29,256
|
|
|
$
|
32,302
|
|
|
$
|
(13,984)
|
|
|
$
|
26,987
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) attributable to The Andersons, Inc. common
shareholders
|
$
|
0.92
|
|
|
$
|
0.91
|
|
|
$
|
(0.22)
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share
|
(0.04)
|
|
|
0.07
|
|
|
$
|
(0.21)
|
|
|
0.33
|
|
Adjusted diluted
income (loss) per share
|
$
|
0.88
|
|
|
$
|
0.98
|
|
|
$
|
(0.43)
|
|
|
$
|
0.81
|
|
|
(a) Income tax
adjustments include $(4.5) million and $(11.5) million due to CARES
Act benefits and certain discrete items in the current quarter and
year to date, respectively, and $(0.8) million and $(3.7) million
due to certain discrete items in the prior year quarter and year to
date, respectively.
|
The Andersons,
Inc.
Condensed
Consolidated Balance Sheets (unaudited)
|
|
|
|
|
|
|
(in
thousands)
|
June 30,
2020
|
|
December 31,
2019
|
|
June 30,
2019
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
30,011
|
|
|
$
|
54,895
|
|
|
$
|
11,087
|
|
Accounts
receivable, net
|
537,011
|
|
|
536,367
|
|
|
712,294
|
|
Inventories
|
616,323
|
|
|
1,170,536
|
|
|
753,641
|
|
Commodity
derivative assets - current
|
112,089
|
|
|
107,863
|
|
|
233,015
|
|
Other current
assets
|
102,755
|
|
|
75,681
|
|
|
58,590
|
|
Total current
assets
|
1,398,189
|
|
|
1,945,342
|
|
|
1,768,627
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
Goodwill
|
135,709
|
|
|
135,360
|
|
|
135,872
|
|
Other intangible
assets, net
|
160,180
|
|
|
175,312
|
|
|
188,818
|
|
Right of use assets,
net
|
62,838
|
|
|
76,401
|
|
|
74,073
|
|
Equity method
investments
|
25,083
|
|
|
23,857
|
|
|
120,929
|
|
Other assets,
net
|
23,152
|
|
|
21,753
|
|
|
28,002
|
|
Total other
assets
|
406,962
|
|
|
432,683
|
|
|
547,694
|
|
Rail Group assets
leased to others, net
|
592,821
|
|
|
584,298
|
|
|
559,711
|
|
Property, plant and
equipment, net
|
906,017
|
|
|
938,418
|
|
|
695,827
|
|
Total
assets
|
$
|
3,303,989
|
|
|
$
|
3,900,741
|
|
|
$
|
3,571,859
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
96,071
|
|
|
147,031
|
|
|
426,125
|
|
Trade and
other payables
|
503,892
|
|
|
873,081
|
|
|
527,250
|
|
Customer
prepayments and deferred revenue
|
45,734
|
|
|
133,585
|
|
|
49,761
|
|
Commodity
derivative liabilities – current
|
65,186
|
|
|
46,942
|
|
|
69,369
|
|
Current
maturities of long-term debt
|
68,477
|
|
|
62,899
|
|
|
66,678
|
|
Accrued
expenses and other current liabilities
|
147,422
|
|
|
176,381
|
|
|
165,383
|
|
Total current
liabilities
|
926,782
|
|
|
1,439,919
|
|
|
1,304,566
|
|
|
|
|
|
|
|
Long-term lease
liabilities
|
41,061
|
|
|
51,091
|
|
|
48,401
|
|
Long-term debt, less
current maturities
|
975,973
|
|
|
1,016,248
|
|
|
1,007,012
|
|
Deferred income
taxes
|
162,475
|
|
|
146,155
|
|
|
146,839
|
|
Other long-term
liabilities
|
65,615
|
|
|
51,673
|
|
|
44,402
|
|
Total
liabilities
|
2,171,906
|
|
|
2,705,086
|
|
|
2,551,220
|
|
Total
equity
|
1,132,083
|
|
|
1,195,655
|
|
|
1,020,639
|
|
Total liabilities and
equity
|
$
|
3,303,989
|
|
|
$
|
3,900,741
|
|
|
$
|
3,571,859
|
|
The Andersons,
Inc.
Segment Data
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Three months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
1,351,168
|
|
|
$
|
223,745
|
|
|
$
|
279,825
|
|
|
$
|
35,442
|
|
|
$
|
—
|
|
|
$
|
1,890,180
|
|
Gross
profit
|
59,382
|
|
|
(2,599)
|
|
|
38,765
|
|
|
10,718
|
|
|
—
|
|
|
106,266
|
|
Equity in earnings of
affiliates
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
Other income,
net
|
986
|
|
|
466
|
|
|
386
|
|
|
905
|
|
|
707
|
|
|
3,450
|
|
Income (loss) before
income taxes
|
393
|
|
|
(9,539)
|
|
|
19,407
|
|
|
2,606
|
|
|
(5,035)
|
|
|
7,832
|
|
Loss attributable to
the noncontrolling interests
|
—
|
|
|
(10,407)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,407)
|
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
393
|
|
|
$
|
868
|
|
|
$
|
19,407
|
|
|
$
|
2,606
|
|
|
$
|
(5,035)
|
|
|
$
|
18,239
|
|
Adjustments to income
(loss) before income taxes (b)
|
1,017
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
|
3,358
|
|
Adjusted income
(loss) before income taxes attributable to The Andersons, Inc.
(a)
|
$
|
1,410
|
|
|
$
|
868
|
|
|
$
|
19,407
|
|
|
$
|
2,606
|
|
|
$
|
(2,694)
|
|
|
$
|
21,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
1,700,581
|
|
|
$
|
310,867
|
|
|
$
|
270,577
|
|
|
$
|
43,016
|
|
|
$
|
—
|
|
|
$
|
2,325,041
|
|
Gross
profit
|
100,666
|
|
|
6,492
|
|
|
38,798
|
|
|
14,772
|
|
|
—
|
|
|
160,728
|
|
Equity in earnings
(losses) of affiliates
|
(1,614)
|
|
|
1,457
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(157)
|
|
Other income,
net
|
3,817
|
|
|
195
|
|
|
570
|
|
|
329
|
|
|
652
|
|
|
5,563
|
|
Income (loss) before
income taxes
|
22,631
|
|
|
3,272
|
|
|
15,903
|
|
|
3,180
|
|
|
(4,578)
|
|
|
40,408
|
|
Loss attributable to
the noncontrolling interests
|
—
|
|
|
(477)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(477)
|
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
22,631
|
|
|
$
|
3,749
|
|
|
$
|
15,903
|
|
|
$
|
3,180
|
|
|
$
|
(4,578)
|
|
|
$
|
40,885
|
|
Adjustments to income
(loss) before income taxes (b)
|
3,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,217
|
|
Adjusted income
(loss) before income taxes attributable to The Andersons, Inc.
(a)
|
$
|
25,848
|
|
|
$
|
3,749
|
|
|
$
|
15,903
|
|
|
$
|
3,180
|
|
|
$
|
(4,578)
|
|
|
$
|
44,102
|
|
|
(a) 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.
|
(b) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Six months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
2,729,209
|
|
|
$
|
536,784
|
|
|
$
|
404,738
|
|
|
$
|
72,555
|
|
|
$
|
—
|
|
|
$
|
3,743,286
|
|
Gross
profit
|
121,848
|
|
|
(31,998)
|
|
|
59,129
|
|
|
20,417
|
|
|
—
|
|
|
169,396
|
|
Equity in earnings of
affiliates
|
209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
Other income,
net
|
3,750
|
|
|
912
|
|
|
356
|
|
|
1,955
|
|
|
1,290
|
|
|
8,263
|
|
Income (loss) before
income taxes
|
(9,591)
|
|
|
(46,964)
|
|
|
18,215
|
|
|
3,613
|
|
|
(10,015)
|
|
|
(44,742)
|
|
Loss attributable to
the noncontrolling interests
|
—
|
|
|
(23,856)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,856)
|
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
(9,591)
|
|
|
$
|
(23,108)
|
|
|
$
|
18,215
|
|
|
$
|
3,613
|
|
|
$
|
(10,015)
|
|
|
$
|
(20,886)
|
|
Adjustments to income
(loss) before income taxes (b)
|
2,348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
|
4,689
|
|
Adjusted income
(loss) before income taxes attributable to The Andersons, Inc.
(a)
|
$
|
(7,243)
|
|
|
$
|
(23,108)
|
|
|
$
|
18,215
|
|
|
$
|
3,613
|
|
|
$
|
(7,674)
|
|
|
$
|
(16,197)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
3,238,267
|
|
|
$
|
580,033
|
|
|
$
|
399,102
|
|
|
$
|
84,431
|
|
|
$
|
—
|
|
|
$
|
4,301,833
|
|
Gross
profit
|
168,063
|
|
|
11,892
|
|
|
59,732
|
|
|
30,705
|
|
|
—
|
|
|
270,392
|
|
Equity in earnings
(losses) of affiliates
|
(1,745)
|
|
|
3,107
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,362
|
|
Other income,
net
|
827
|
|
|
279
|
|
|
1,137
|
|
|
538
|
|
|
1,268
|
|
|
4,049
|
|
Income (loss) before
income taxes
|
4,729
|
|
|
6,128
|
|
|
11,974
|
|
|
7,492
|
|
|
(9,505)
|
|
|
20,818
|
|
Loss attributable to
the noncontrolling interests
|
—
|
|
|
(632)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(632)
|
|
Income (loss) before
income taxes attributable to The Andersons, Inc. (a)
|
$
|
4,729
|
|
|
$
|
6,760
|
|
|
$
|
11,974
|
|
|
$
|
7,492
|
|
|
$
|
(9,505)
|
|
|
$
|
21,450
|
|
Adjustments to income
(loss) before income taxes (b)
|
14,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,788
|
|
Adjusted income
(loss) before income taxes attributable to The Andersons, Inc.
(a)
|
$
|
19,517
|
|
|
$
|
6,760
|
|
|
$
|
11,974
|
|
|
$
|
7,492
|
|
|
$
|
(9,505)
|
|
|
$
|
36,238
|
|
|
(a) 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.
(b) 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.
Reconciliation to
EBITDA and Adjusted EBITDA
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Three months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
393
|
|
|
$
|
(9,539)
|
|
|
$
|
19,407
|
|
|
$
|
2,606
|
|
|
$
|
7,165
|
|
|
$
|
20,032
|
|
Interest
expense
|
5,056
|
|
|
1,900
|
|
|
1,463
|
|
|
3,833
|
|
|
(425)
|
|
|
11,827
|
|
Tax benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,200)
|
|
|
(12,200)
|
|
Depreciation and
amortization
|
11,055
|
|
|
17,952
|
|
|
6,364
|
|
|
8,869
|
|
|
2,757
|
|
|
46,997
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
16,504
|
|
|
10,313
|
|
|
27,234
|
|
|
15,308
|
|
|
(2,703)
|
|
|
66,656
|
|
EBITDA attributable to
non-controlling interests
|
—
|
|
|
(645)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(645)
|
|
EBITDA attributable
to The Andersons, Inc.
|
16,504
|
|
|
10,958
|
|
|
27,234
|
|
|
15,308
|
|
|
(2,703)
|
|
|
67,301
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related
stock compensation
|
1,017
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,017
|
|
Severance
Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
|
2,341
|
|
Total adjusting
items
|
1,017
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
|
3,358
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
17,521
|
|
|
$
|
10,958
|
|
|
$
|
27,234
|
|
|
$
|
15,308
|
|
|
$
|
(362)
|
|
|
$
|
70,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
22,631
|
|
|
$
|
3,272
|
|
|
$
|
15,903
|
|
|
$
|
3,180
|
|
|
$
|
(15,575)
|
|
|
$
|
29,411
|
|
Interest
expense
|
10,148
|
|
|
(811)
|
|
|
2,386
|
|
|
4,181
|
|
|
(177)
|
|
|
15,727
|
|
Tax
provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,997
|
|
|
10,997
|
|
Depreciation and
amortization
|
10,836
|
|
|
1,587
|
|
|
6,631
|
|
|
8,389
|
|
|
2,850
|
|
|
30,293
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
43,615
|
|
|
4,048
|
|
|
24,920
|
|
|
15,750
|
|
|
(1,905)
|
|
|
86,428
|
|
EBITDA attributable to
non-controlling interests
|
—
|
|
|
(439)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(439)
|
|
EBITDA attributable
to The Andersons, Inc.
|
43,615
|
|
|
4,487
|
|
|
24,920
|
|
|
15,750
|
|
|
(1,905)
|
|
|
86,867
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
1,229
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,229
|
|
Transaction related
stock compensation
|
1,346
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,346
|
|
Asset
impairment
|
3,081
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,081
|
|
Loss from
remeasurement of equity method investment
|
(2,439)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,439)
|
|
Total adjusting
items
|
3,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,217
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
46,832
|
|
|
$
|
4,487
|
|
|
$
|
24,920
|
|
|
$
|
15,750
|
|
|
$
|
(1,905)
|
|
|
$
|
90,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Six months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(9,591)
|
|
|
$
|
(46,964)
|
|
|
$
|
18,215
|
|
|
$
|
3,613
|
|
|
$
|
3,649
|
|
|
$
|
(31,078)
|
|
Interest
expense
|
12,245
|
|
|
4,257
|
|
|
3,248
|
|
|
8,316
|
|
|
(652)
|
|
|
27,414
|
|
Tax benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,664)
|
|
|
(13,664)
|
|
Depreciation and
amortization
|
22,399
|
|
|
35,504
|
|
|
12,705
|
|
|
17,788
|
|
|
5,502
|
|
|
93,898
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
25,053
|
|
|
(7,203)
|
|
|
34,168
|
|
|
29,717
|
|
|
(5,165)
|
|
|
76,570
|
|
EBITDA attributable to
non-controlling interests
|
—
|
|
|
(4,120)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,120)
|
|
EBITDA attributable
to The Andersons, Inc.
|
25,053
|
|
|
(3,083)
|
|
|
34,168
|
|
|
29,717
|
|
|
(5,165)
|
|
|
80,690
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related
stock compensation
|
2,348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,348
|
|
Severance
Costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
|
2,341
|
|
Total adjusting
items
|
2,348
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
|
4,689
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
27,401
|
|
|
$
|
(3,083)
|
|
|
$
|
34,168
|
|
|
$
|
29,717
|
|
|
$
|
(2,824)
|
|
|
$
|
85,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
4,729
|
|
|
$
|
6,128
|
|
|
$
|
11,974
|
|
|
$
|
7,492
|
|
|
$
|
(15,060)
|
|
|
$
|
15,263
|
|
Interest
expense
|
20,951
|
|
|
(1,523)
|
|
|
4,647
|
|
|
7,860
|
|
|
(298)
|
|
|
31,637
|
|
Tax
provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,555
|
|
|
5,555
|
|
Depreciation and
amortization
|
25,035
|
|
|
3,377
|
|
|
13,293
|
|
|
16,664
|
|
|
5,777
|
|
|
64,146
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
50,715
|
|
|
7,982
|
|
|
29,914
|
|
|
32,016
|
|
|
(4,026)
|
|
|
116,601
|
|
EBITDA attributable to
non-controlling interests
|
—
|
|
|
(590)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(590)
|
|
EBITDA attributable
to The Andersons, Inc.
|
50,715
|
|
|
8,572
|
|
|
29,914
|
|
|
32,016
|
|
|
(4,026)
|
|
|
117,191
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
5,872
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,872
|
|
Transaction related
stock compensation
|
4,762
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,762
|
|
Asset
impairment
|
3,081
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,081
|
|
Loss from
remeasurement of equity method investment
|
1,073
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,073
|
|
Total adjusting
items
|
14,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,788
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
65,503
|
|
|
$
|
8,572
|
|
|
$
|
29,914
|
|
|
$
|
32,016
|
|
|
$
|
(4,026)
|
|
|
$
|
131,979
|
|
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SOURCE The Andersons, Inc.