MAUMEE, Ohio, Feb. 12,
2020 /PRNewswire/ -- The Andersons, Inc. (NASDAQ:
ANDE) announces financial results for the fourth quarter
ended December 31, 2019.
Fourth Quarter Highlights:
- Company reports net income of $6.6
million, or $0.19 per diluted
share, and adjusted net income of $18.4
million, or $0.55 per diluted
share. Adjusted EBITDA rose 21 percent year over year to
$76.1 million.
- Trade Group reports a pretax loss of $19.0 million, but adjusted pretax income of
$18.5 million, as solid merchandising
income was offset by the impacts of an extended, wet harvest in the
Eastern Corn Belt.
- Ethanol Group records pretax income of $41.2 million and adjusted pretax income
attributable to the company of $7.2
million, on continued solid merchandising income and
appreciation on hedged positions.
- Plant Nutrient Group records pretax income of $4.6 million and adjusted pretax income of
$3.9 million on lower operating and
interest expenses.
- Rail Group earns $4.5 million
of pretax income on increased income from car sales.
"The acquisition of Lansing Trade Group continues to perform
well, as stronger merchandising results somewhat offset the
negative consequences of fewer acres planted and a late, wet
harvest in the Trade Group's eastern footprint," said President and
CEO Pat Bowe. "I am pleased with our
efforts to capture both top-line and expense synergies associated
with the Lansing transaction "By
the end of the year, we exceeded our original run-rate goal of
$10 million in cost savings a year
ahead of schedule.
"The Ethanol Group's operating results reflect the favorable
impact of hedging activity and continued strong performance by the
group's expanded trading team," continued Bowe. "In addition, the
fourth quarter results now include the consolidated results of the
Ethanol Group's operations from the merger of four separate
entities to form The Andersons Marathon Holdings, LLC in early
October. The impacts of these Trade and Ethanol Group transactions,
along with the new ELEMENT ethanol plant, set us up well for
improved company performance in 2020."
$ in millions,
except per share amounts
|
|
Q4
2019
|
Q4
2018
|
Variance
|
YTD
2019
|
YTD
2018
|
Variance
|
Pretax
Income1
|
$
|
21.4
|
|
$
|
30.0
|
|
$
|
(8.6)
|
|
$
|
31.4
|
|
$
|
53.4
|
|
$
|
(22.0)
|
|
Adjusted Pretax
Income1
|
23.7
|
|
33.1
|
|
(9.4)
|
|
51.0
|
|
59.9
|
|
(8.9)
|
|
Trade (Grain)
Group
|
18.5
|
|
24.2
|
|
(5.7)
|
|
40.1
|
|
21.7
|
|
18.4
|
|
Ethanol
Group1
|
7.2
|
|
6.4
|
|
0.8
|
|
13.4
|
|
27.1
|
|
(13.7)
|
|
Plant Nutrient
Group
|
3.9
|
|
3.8
|
|
0.1
|
|
8.4
|
|
12.0
|
|
(3.6)
|
|
Rail Group
|
4.5
|
|
6.7
|
|
(2.2)
|
|
15.1
|
|
17.4
|
|
(2.3)
|
|
Other
|
(10.4)
|
|
(8.0)
|
|
(2.4)
|
|
(26.0)
|
|
(18.3)
|
|
(7.7)
|
|
Net
Income1
|
6.6
|
|
23.8
|
|
(17.2)
|
|
18.3
|
|
41.5
|
|
(23.2)
|
|
Adjusted Net
Income1
|
18.4
|
|
26.0
|
|
(7.6)
|
|
43.0
|
|
46.4
|
|
(3.4)
|
|
EPS
|
0.19
|
|
0.84
|
|
(0.70)
|
|
0.55
|
|
1.46
|
|
(0.90)
|
|
Adjusted
EPS
|
0.55
|
|
0.92
|
|
(0.40)
|
|
1.30
|
|
1.63
|
|
(0.30)
|
|
EBITDA
|
82.2
|
|
60.1
|
|
22.1
|
|
234.0
|
|
171.3
|
|
62.7
|
|
Adjusted EBITDA
Attributable to the Company
|
$
|
76.1
|
|
$
|
63.0
|
|
$
|
13.1
|
|
$
|
246.3
|
|
$
|
177.2
|
|
$
|
69.1
|
|
1 Reflects amounts
attributable to the company and excludes income (loss) attributable
to the noncontrolling interests of $(1.0) in Q4 2019, $(0.1) in Q4
2018, $(3.2) for year-to-date 2019 and $(0.3) for year-to-date
2018. See non-GAAP reconciliations in the accompanying
tables.
|
Fourth Quarter Segment Overview
Trade Group Records Lower Adjusted Results Driven by Smaller
Eastern Corn Belt Harvest
With the closing of the Lansing
acquisition effective January 1,
2019, Trade Group results include the consolidated results
of both Lansing and Thompsons
Limited.
The Trade Group recorded a pretax loss of $19.0 million but its adjusted pretax income was
$18.5 million for the quarter. The
group also recorded $3.0 million of
incremental depreciation and amortization expenses related to the
Lansing acquisition. The former
Grain Group recorded pretax income of $24.2
million in the fourth quarter of 2018.
- Portfolio breadth gained from the Lansing acquisition again proved its critical
value in the face of significant Eastern Corn Belt planting and
harvest challenges.
- Strong merchandising results and improved income from the newer
western assets helped offset extremely tough conditions in the
East.
- Robust income from propane distribution was offset by lower
sand transloading income, as the frac sand industry experienced a
fundamental shift to in-basin sand.
The group adjusted its reported pretax income by $37.5 million; adjustments included the following
items:
- Asset impairment charges of $40.4
million, including $34.8
million on certain frac sand transloading and processing
assets acquired as part of the Lansing acquisition.
- A gain on the sale of Ontario
agronomy assets of $5.7 million.
The group's fourth quarter adjusted EBITDA rose 24 percent to
$38.1 million, while its full year
adjusted EBITDA increased from $49.6
million in 2018 to $126.3
million in 2019.
Ethanol Group Remains Profitable; Merger Completed
The Ethanol Group earned pretax income and adjusted pretax
income of $41.2 million and
$6.2 million, respectively,
attributable to the company in the fourth quarter, compared to the
$6.3 million of pretax income it
earned in the same period in 2018. The fourth quarter 2019 results
included the consolidated results of all five ethanol plants due to
The Andersons Marathon Holdings, LLC (TAMH) merger and the
continued ramp-up of operations of the ELEMENT plant.
- The group recorded significant appreciation on its hedged
positions and increased sales volumes and margins by third-party
production.
- Crush margins were favorable early in the quarter but degraded
quickly in November and December; comparatively higher corn basis
continued to compress margins.
- The group brought more new technologies and products online at
ELEMENT, including new-to-the-market cellulosic ethanol technology
and new feed products.
The group recorded adjustments that increased
reported pretax income by $35.0
million, including a $36.3
million gain on the remeasurement of its pre-existing
investments in the Albion, Clymers and Greenville entities in conjunction with the
TAMH merger. The resulting increase in fixed asset basis led to
incremental depreciation of $2.5
million.
The group recorded adjusted EBITDA attributable to the company
of $16.6 million in the fourth
quarter of 2019 compared to 2018 fourth quarter adjusted EBITDA
attributable to the company of $6.9
million. This result excludes the EBITDA allocable to the
noncontrolling interests.
Plant Nutrient Group Records Comparable Year-Over-Year
Results
The Plant Nutrient Group recorded pretax income of $4.6 million and adjusted pretax income of
$3.9 million in the fourth quarter,
compared to pretax income of $3.8
million in the prior year period.
- Volumes were up in primary nutrients, but down in both
specialty nutrients and lawn fertilizer.
- Primary nutrient margin per ton was lower due to product
mix.
- Working capital carrying costs decreased year over year due to
heightened management focus.
The group adjusted reported income for a $2.9 million gain on the sale of the Auburn, Michigan farm center and impairment
charges of $2.2 million associated
with intangible assets related to the specialty nutrients
business.
The group's current quarter adjusted EBITDA was $11.5 million, a slight decrease compared to 2018
fourth quarter EBITDA of $12.5
million. For the full year, the group recorded adjusted
EBITDA of $42.3 million and
$45.4 million in 2019 and 2018,
respectively, in the face of significant unplanted acres in our key
markets in 2019.
Rail Group Results Down on Lower Service and Other
Income
The Rail Group earned fourth quarter pretax income of
$4.5 million compared to $6.7 million in the same period of the prior
year.
- Railcar leasing income fell on continuing headwinds in the sand
and ethanol markets.
- Income from car sales was $2.4
million for the quarter compared to $1.2 million in the fourth quarter of
2018.
- Service and other pretax income fell by $3.1 million to $1.0
million; however, 2018 results included income of
$2.4 million on the sale of several
barges.
The group's fourth quarter 2019 EBITDA of $17.6 million was comparable to fourth quarter
2018 EBITDA. Full-year EBITDA was $65.7
million, an improvement of 13% over 2018 results.
Provision for Income Taxes Includes Charge Related to Lansing
Acquisition, Research and Development Tax Credits
The company's fourth quarter income tax provision included tax
expense of approximately $8.0
million, or $0.24 per diluted
share, related to nondeductible Canadian losses on the company's
investment in Thompsons Limited. As with other transaction-related
amounts, the company has excluded this charge from its adjusted net
income. In addition, the company's fourth quarter income tax
provision included a tax benefit of approximately $2.7 million, or $0.08 per diluted share, for federal research and
development income tax credits primarily related to the
construction and ramp-up of the ELEMENT biorefinery.
Other Adjustments Related to the Lansing Acquisition
As it did in the first three quarters, the company has recast
fourth quarter 2018 information for the former Grain Group and the
Ethanol Group to conform to segment reporting changes made in
conjunction with the Lansing
acquisition. The changes resulted in a reclassification of
$1.3 million in pretax income from
the Grain Group to the Ethanol Group.
Conference Call and Upcoming Investor Day
The company will host a webcast on Thursday, February 13, 2020, at 11 a.m. Eastern Standard 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 7479245). 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/saat5p3z. 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.
The company will also host an investor day on Wednesday, April 1, 2020 in New York City. A webcast of the event, along
with the associated presentation, will be available on the
company's website.
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,
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 adjusted pretax income, adjusted pretax income
attributable to The Andersons, adjusted net income, adjusted net
income per share, EBITDA and adjusted EBITDA provide additional
information to investors and others about its operations, allowing
an evaluation of underlying operating performance and better
period-to-period comparability. Adjusted pretax income, adjusted
pretax income attributable to The Andersons, adjusted net income,
adjusted net income per share, EBITDA and adjusted EBITDA do 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
December 31,
|
|
Twelve months
ended
December 31,
|
(in thousands, except
per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Sales and
merchandising revenues
|
$
|
1,885,603
|
|
|
$
|
812,662
|
|
|
$
|
8,170,191
|
|
|
$
|
3,045,382
|
|
Cost of sales and
merchandising revenues
|
1,747,244
|
|
|
718,700
|
|
|
7,652,299
|
|
|
2,743,377
|
|
Gross
profit
|
138,359
|
|
|
93,962
|
|
|
517,892
|
|
|
302,005
|
|
Operating,
administrative and general expenses
|
109,457
|
|
|
67,776
|
|
|
436,842
|
|
|
257,872
|
|
Asset
impairment
|
38,131
|
|
|
—
|
|
|
41,212
|
|
|
6,272
|
|
Interest
expense
|
14,078
|
|
|
7,848
|
|
|
59,691
|
|
|
27,848
|
|
Other
income:
|
|
|
|
|
|
|
|
Equity in
earnings (losses) of affiliates
|
(4,992)
|
|
|
6,540
|
|
|
(7,359)
|
|
|
27,141
|
|
Net gain from
remeasurement of equity method
investments
|
36,287
|
|
|
—
|
|
|
35,214
|
|
|
—
|
|
Other income,
net
|
12,387
|
|
|
5,053
|
|
|
20,109
|
|
|
16,002
|
|
Income before income
taxes
|
20,375
|
|
|
29,931
|
|
|
28,111
|
|
|
53,156
|
|
Income tax
provision
|
14,708
|
|
|
6,263
|
|
|
13,051
|
|
|
11,931
|
|
Net income
|
5,667
|
|
|
23,668
|
|
|
15,060
|
|
|
41,225
|
|
Net income
(loss) attributable to the noncontrolling
interests
|
(982)
|
|
|
(85)
|
|
|
(3,247)
|
|
|
(259)
|
|
Net income
attributable to The Andersons, Inc.
|
$
|
6,649
|
|
|
$
|
23,753
|
|
|
$
|
18,307
|
|
|
$
|
41,484
|
|
|
|
|
|
|
|
|
|
Per common
share:
|
|
|
|
|
|
|
|
Basic earnings
attributable to The Andersons, Inc. common
shareholders
|
$
|
0.20
|
|
|
$
|
0.84
|
|
|
$
|
0.56
|
|
|
$
|
1.47
|
|
Diluted earnings
attributable to The Andersons, Inc. common
shareholders
|
$
|
0.19
|
|
|
$
|
0.84
|
|
|
$
|
0.55
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Andersons,
Inc.
Reconciliation to
Adjusted Net Income (unaudited)
|
|
(in thousands, except
per share data)
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income (loss)
attributable to The Andersons, Inc.
|
$
|
6,649
|
|
|
$
|
23,752
|
|
|
$
|
18,307
|
|
|
$
|
41,484
|
|
Items adjusted for
certain gains and charges:
|
|
|
|
|
|
|
|
Acquisition
costs
|
2,158
|
|
|
3,051
|
|
|
8,007
|
|
|
6,514
|
|
Transaction related
stock compensation
|
1,998
|
|
|
—
|
|
|
9,337
|
|
|
—
|
|
Asset
impairment
|
43,097
|
|
|
—
|
|
|
46,178
|
|
|
—
|
|
(Gain) loss from
remeasurement of equity method
investments
|
(36,287)
|
|
|
—
|
|
|
(35,214)
|
|
|
—
|
|
(Gain) loss on sales
of assets
|
(8,646)
|
|
|
—
|
|
|
(8,646)
|
|
|
—
|
|
Income tax impact of
adjustments
|
9,386
|
|
|
(762)
|
|
|
5,051
|
|
|
(1,628)
|
|
Total
adjustments
|
11,706
|
|
|
2,289
|
|
|
24,713
|
|
|
4,886
|
|
Adjusted net income
attributable to The Andersons, Inc.
|
$
|
18,355
|
|
|
$
|
26,041
|
|
|
$
|
43,020
|
|
|
$
|
46,370
|
|
|
|
|
|
|
|
|
|
Diluted earnings
attributable to The Andersons, Inc. common
shareholders
|
$
|
0.19
|
|
|
$
|
0.84
|
|
|
$
|
0.55
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
Impact on diluted
earnings per share
|
0.36
|
|
|
0.08
|
|
|
0.75
|
|
|
0.17
|
|
Adjusted diluted
earnings per share
|
$
|
0.55
|
|
|
$
|
0.92
|
|
|
$
|
1.30
|
|
|
$
|
1.63
|
|
The Andersons,
Inc.
Condensed
Consolidated Balance Sheets (unaudited)
|
|
(in
thousands)
|
2019
|
|
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
54,895
|
|
|
$
|
22,593
|
|
Accounts
receivable, net
|
536,367
|
|
|
207,285
|
|
Inventories
|
1,170,536
|
|
|
690,804
|
|
Commodity
derivative assets - current
|
107,863
|
|
|
51,421
|
|
Other current
assets
|
92,280
|
|
|
51,095
|
|
Total current
assets
|
1,961,941
|
|
|
1,023,198
|
|
|
|
|
|
Other
assets:
|
|
|
|
Commodity derivative
assets – noncurrent
|
949
|
|
|
480
|
|
Goodwill
|
137,781
|
|
|
6,024
|
|
Other intangible
assets, net
|
175,312
|
|
|
99,138
|
|
Right of use assets,
net
|
76,401
|
|
|
—
|
|
Equity method
investments
|
23,857
|
|
|
242,326
|
|
Other assets,
net
|
20,803
|
|
|
22,341
|
|
Total Other
Assets
|
435,103
|
|
|
370,309
|
|
Rail Group assets
leased to others, net
|
584,298
|
|
|
521,785
|
|
Property, plant and
equipment, net
|
938,418
|
|
|
476,711
|
|
Total
assets
|
$
|
3,919,760
|
|
|
$
|
2,392,003
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
147,031
|
|
|
205,000
|
|
Trade and
other payables
|
873,081
|
|
|
462,535
|
|
Customer
prepayments and deferred revenue
|
133,585
|
|
|
32,533
|
|
Commodity
derivative liabilities – current
|
46,942
|
|
|
32,647
|
|
Accrued
expenses and other current liabilities
|
190,637
|
|
|
79,046
|
|
Current
maturities of long-term debt
|
62,899
|
|
|
21,589
|
|
Total current
liabilities
|
1,454,175
|
|
|
833,350
|
|
|
|
|
|
Long-term lease
liabilities
|
51,091
|
|
|
—
|
|
Commodity derivative
liabilities – noncurrent
|
505
|
|
|
889
|
|
Employee benefit plan
obligations
|
25,359
|
|
|
22,542
|
|
Long-term debt, less
current maturities
|
1,016,248
|
|
|
496,187
|
|
Deferred income
taxes
|
149,389
|
|
|
130,087
|
|
Other long-term
liabilities
|
22,176
|
|
|
32,184
|
|
Total
liabilities
|
2,718,943
|
|
|
1,515,239
|
|
Total
equity
|
$
|
1,200,817
|
|
|
$
|
876,764
|
|
Total liabilities and
equity
|
$
|
3,919,760
|
|
|
$
|
2,392,003
|
|
The Andersons,
Inc.
Segment Data
(unaudited)
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Three months ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
1,443,261
|
|
|
$
|
260,750
|
|
|
$
|
138,182
|
|
|
$
|
43,410
|
|
|
$
|
—
|
|
|
$
|
1,885,603
|
|
Gross
profit
|
88,638
|
|
|
11,608
|
|
|
23,521
|
|
|
14,592
|
|
|
—
|
|
|
138,359
|
|
Equity in earnings of
affiliates
|
(4,992)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,992)
|
|
Other income,
net
|
8,364
|
|
|
36,504
|
|
|
3,256
|
|
|
191
|
|
|
359
|
|
|
48,674
|
|
Income (loss) before
income taxes
|
(19,048)
|
|
|
41,208
|
|
|
4,625
|
|
|
4,461
|
|
|
(10,871)
|
|
|
20,375
|
|
Income (loss)
attributable to the noncontrolling
interests
|
—
|
|
|
(982)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(982)
|
|
Income (loss) before
income taxes attributable to
The Andersons, Inc. (a)
|
(19,048)
|
|
|
42,190
|
|
|
4,625
|
|
|
4,461
|
|
|
(10,871)
|
|
|
21,357
|
|
Adjustments to income
(loss) before income taxes (b)
|
37,549
|
|
|
(34,962)
|
|
|
(769)
|
|
|
—
|
|
|
502
|
|
|
2,320
|
|
Adjusted Income
(loss) before income taxes
attributable to The Andersons, Inc. (a)
|
$
|
18,501
|
|
|
$
|
7,228
|
|
|
$
|
3,856
|
|
|
$
|
4,461
|
|
|
$
|
(10,369)
|
|
|
$
|
23,677
|
|
Three months ended
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
449,923
|
|
|
$
|
175,919
|
|
|
$
|
147,625
|
|
|
$
|
39,195
|
|
|
$
|
—
|
|
|
$
|
812,662
|
|
Gross
profit
|
51,636
|
|
|
4,386
|
|
|
23,955
|
|
|
13,985
|
|
|
—
|
|
|
93,962
|
|
Equity in earnings of
affiliates
|
3,023
|
|
|
3,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,540
|
|
Other income,
net
|
228
|
|
|
1,025
|
|
|
595
|
|
|
2,605
|
|
|
600
|
|
|
5,053
|
|
Income (loss) before
income taxes
|
24,168
|
|
|
6,289
|
|
|
3,791
|
|
|
6,734
|
|
|
(11,051)
|
|
|
29,931
|
|
Income (loss)
attributable to the noncontrolling interests
|
—
|
|
|
(85)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85)
|
|
Income (loss) before
income taxes attributable to
The Andersons, Inc. (a)
|
24,168
|
|
|
6,374
|
|
|
3,791
|
|
|
6,734
|
|
|
(11,051)
|
|
|
30,016
|
|
Adjustments to income
(loss) before income taxes (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
3,051
|
|
Adjusted Income
(loss) before income taxes
attributable to The Andersons, Inc. (a)
|
$
|
24,168
|
|
|
$
|
6,374
|
|
|
$
|
3,791
|
|
|
$
|
6,734
|
|
|
$
|
(8,000)
|
|
|
$
|
33,067
|
|
(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
|
Twelve months
ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
6,387,744
|
|
|
$
|
968,779
|
|
|
$
|
646,730
|
|
|
$
|
166,938
|
|
|
$
|
—
|
|
|
$
|
8,170,191
|
|
Gross
profit
|
335,225
|
|
|
26,438
|
|
|
99,104
|
|
|
57,125
|
|
|
—
|
|
|
517,892
|
|
Equity in earnings of
affiliates
|
(6,835)
|
|
|
(524)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,359)
|
|
Other income,
net
|
10,070
|
|
|
37,199
|
|
|
4,903
|
|
|
1,583
|
|
|
1,568
|
|
|
55,323
|
|
Income (loss) before
income taxes
|
(14,780)
|
|
|
45,112
|
|
|
9,159
|
|
|
15,090
|
|
|
(26,470)
|
|
|
28,111
|
|
Income (loss)
attributable to the noncontrolling
interests
|
—
|
|
|
(3,247)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,247)
|
|
Income (loss) before
income taxes attributable to
The Andersons, Inc. (a)
|
(14,780)
|
|
|
48,359
|
|
|
9,159
|
|
|
15,090
|
|
|
(26,470)
|
|
|
31,358
|
|
Adjustments to income
(loss) before income taxes (b)
|
54,891
|
|
|
(34,962)
|
|
|
(769)
|
|
|
—
|
|
|
502
|
|
|
19,662
|
|
Adjusted Income
(loss) before income taxes
attributable to The Andersons, Inc. (a)
|
$
|
40,111
|
|
|
$
|
13,397
|
|
|
$
|
8,390
|
|
|
$
|
15,090
|
|
|
$
|
(25,968)
|
|
|
$
|
51,020
|
|
Twelve months
ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
1,433,660
|
|
|
$
|
747,009
|
|
|
$
|
690,536
|
|
|
$
|
174,177
|
|
|
$
|
—
|
|
|
$
|
3,045,382
|
|
Gross
profit
|
126,539
|
|
|
21,720
|
|
|
98,901
|
|
|
54,845
|
|
|
—
|
|
|
302,005
|
|
Equity in earnings of
affiliates
|
12,932
|
|
|
14,209
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,141
|
|
Other income,
net
|
843
|
|
|
2,766
|
|
|
2,495
|
|
|
3,516
|
|
|
6,382
|
|
|
16,002
|
|
Income (loss) before
income taxes
|
21,715
|
|
|
26,817
|
|
|
12,030
|
|
|
17,379
|
|
|
(24,785)
|
|
|
53,156
|
|
Income (loss)
attributable to the noncontrolling
interests
|
—
|
|
|
(259)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(259)
|
|
Income (loss) before
income taxes attributable to
The Andersons, Inc. (a)
|
21,715
|
|
|
27,076
|
|
|
12,030
|
|
|
17,379
|
|
|
(24,785)
|
|
|
53,415
|
|
Adjustments to income
(loss) before income taxes (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,514
|
|
|
6,514
|
|
Adjusted Income
(loss) before income taxes
attributable to The Andersons, Inc. (a)
|
$
|
21,715
|
|
|
$
|
27,076
|
|
|
$
|
12,030
|
|
|
$
|
17,379
|
|
|
$
|
(18,271)
|
|
|
$
|
59,929
|
|
(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
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(19,048)
|
|
|
$
|
41,208
|
|
|
$
|
4,625
|
|
|
$
|
4,461
|
|
|
$
|
(25,579)
|
|
|
$
|
5,667
|
|
Interest
expense
|
6,175
|
|
|
2,104
|
|
|
1,476
|
|
|
4,415
|
|
|
(92)
|
|
|
14,078
|
|
Tax
provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,708
|
|
|
14,708
|
|
Depreciation and
amortization
|
13,450
|
|
|
16,633
|
|
|
6,207
|
|
|
8,745
|
|
|
2,735
|
|
|
47,770
|
|
Earnings before
interest, taxes, depreciation and amortization
(EBITDA)
|
577
|
|
|
59,945
|
|
|
12,308
|
|
|
17,621
|
|
|
(8,228)
|
|
|
82,223
|
|
EBITDA attributable
to non-controlling interests
|
—
|
|
|
(8,405)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,405)
|
|
EBITDA attributable
to The Andersons, Inc.
|
577
|
|
|
51,540
|
|
|
12,308
|
|
|
17,621
|
|
|
(8,228)
|
|
|
73,818
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
833
|
|
|
1,325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,158
|
|
Transaction related
stock compensation
|
1,998
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,998
|
|
Asset impairment
including equity method investments
|
40,420
|
|
|
—
|
|
|
2,175
|
|
|
—
|
|
|
502
|
|
|
43,097
|
|
(Gain) loss on
pre-existing equity method investment
|
—
|
|
|
(36,287)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,287)
|
|
(Gain) loss on sales
of assets
|
(5,702)
|
|
|
—
|
|
|
(2,944)
|
|
|
—
|
|
|
—
|
|
|
(8,646)
|
|
Total adjusting
items
|
37,549
|
|
|
(34,962)
|
|
|
(769)
|
|
|
—
|
|
|
502
|
|
|
2,320
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
38,126
|
|
|
$
|
16,578
|
|
|
$
|
11,539
|
|
|
$
|
17,621
|
|
|
$
|
(7,726)
|
|
|
$
|
76,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
24,168
|
|
|
$
|
6,289
|
|
|
$
|
3,791
|
|
|
$
|
6,734
|
|
|
$
|
(17,314)
|
|
|
$
|
23,668
|
|
Interest
expense
|
2,827
|
|
|
(792)
|
|
|
2,102
|
|
|
3,689
|
|
|
22
|
|
|
7,848
|
|
Tax
provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,263
|
|
|
6,263
|
|
Depreciation and
amortization
|
3,801
|
|
|
1,577
|
|
|
6,614
|
|
|
7,491
|
|
|
2,854
|
|
|
22,337
|
|
Earnings before
interest, taxes, depreciation and amortization
(EBITDA)
|
30,796
|
|
|
7,074
|
|
|
12,507
|
|
|
17,914
|
|
|
(8,175)
|
|
|
60,116
|
|
EBITDA attributable
to non-controlling interests
|
—
|
|
|
(145)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145)
|
|
EBITDA attributable
to The Andersons, Inc.
|
30,796
|
|
|
6,929
|
|
|
12,507
|
|
|
17,914
|
|
|
(8,175)
|
|
|
59,971
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
3,051
|
|
Total adjusting
items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
3,051
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
30,796
|
|
|
$
|
6,929
|
|
|
$
|
12,507
|
|
|
$
|
17,914
|
|
|
$
|
(5,124)
|
|
|
$
|
63,022
|
|
|
|
|
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Twelve months
ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(14,780)
|
|
|
$
|
45,112
|
|
|
$
|
9,159
|
|
|
$
|
15,090
|
|
|
$
|
(39,521)
|
|
|
$
|
15,060
|
|
Interest
expense
|
35,202
|
|
|
584
|
|
|
7,954
|
|
|
16,486
|
|
|
(535)
|
|
|
59,691
|
|
Tax
provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,051
|
|
|
13,051
|
|
Depreciation and
amortization
|
50,973
|
|
|
23,727
|
|
|
25,985
|
|
|
34,122
|
|
|
11,359
|
|
|
146,166
|
|
Earnings before
interest, taxes, depreciation and amortization
(EBITDA)
|
71,395
|
|
|
69,423
|
|
|
43,098
|
|
|
65,698
|
|
|
(15,646)
|
|
|
233,968
|
|
EBITDA attributable
to non-controlling interests
|
—
|
|
|
(7,360)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,360)
|
|
EBITDA attributable
to The Andersons, Inc.
|
71,395
|
|
|
62,063
|
|
|
43,098
|
|
|
65,698
|
|
|
(15,646)
|
|
|
226,608
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
6,682
|
|
|
1,325
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,007
|
|
Transaction related
stock compensation
|
9,337
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,337
|
|
Asset impairment
including equity method investments
|
43,501
|
|
|
—
|
|
|
2,175
|
|
|
—
|
|
|
502
|
|
|
46,178
|
|
(Gain) loss on
pre-existing equity method investment
|
1,073
|
|
|
(36,287)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35,214)
|
|
(Gain) loss on sales
of assets
|
(5,702)
|
|
|
—
|
|
|
(2,944)
|
|
|
—
|
|
|
—
|
|
|
(8,646)
|
|
Total adjusting
items
|
54,891
|
|
|
(34,962)
|
|
|
(769)
|
|
|
—
|
|
|
502
|
|
|
19,662
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
126,286
|
|
|
$
|
27,101
|
|
|
$
|
42,329
|
|
|
$
|
65,698
|
|
|
$
|
(15,144)
|
|
|
$
|
246,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
21,715
|
|
|
$
|
26,817
|
|
|
$
|
12,030
|
|
|
$
|
17,379
|
|
|
$
|
(36,716)
|
|
|
$
|
41,225
|
|
Interest
expense
|
11,845
|
|
|
(1,890)
|
|
|
6,499
|
|
|
11,377
|
|
|
17
|
|
|
27,848
|
|
Tax
provision
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,931
|
|
|
11,931
|
|
Depreciation and
amortization
|
16,062
|
|
|
6,136
|
|
|
26,871
|
|
|
29,164
|
|
|
12,064
|
|
|
90,297
|
|
Earnings before
interest, taxes, depreciation and amortization (EBITDA)
|
49,622
|
|
|
31,063
|
|
|
45,400
|
|
|
57,920
|
|
|
(12,704)
|
|
|
171,301
|
|
EBITDA attributable
to non-controlling interests
|
—
|
|
|
(657)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(657)
|
|
EBITDA attributable
to The Andersons, Inc.
|
49,622
|
|
|
30,406
|
|
|
45,400
|
|
|
57,920
|
|
|
(12,704)
|
|
|
170,644
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
—
|
|
Acquisition
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,514
|
|
|
6,514
|
|
Total adjusting
items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,514
|
|
|
6,514
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
49,622
|
|
|
$
|
30,406
|
|
|
$
|
45,400
|
|
|
$
|
57,920
|
|
|
$
|
(6,190)
|
|
|
$
|
177,158
|
|
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SOURCE The Andersons, Inc.