MAUMEE,
Ohio, Feb. 20, 2024 /PRNewswire/ -- The
Andersons, Inc. (Nasdaq: ANDE) announces financial results for
the fourth quarter ended December 31,
2023.
Fourth Quarter Highlights:
- Company reported net income from continuing operations
attributable to The Andersons of $51
million, or $1.49 per diluted
share, and $55 million, or
$1.59 per diluted share, on an
adjusted basis
- EBITDA was $131 million for
the quarter, and adjusted EBITDA was $135
million
- Trade reported pretax income of $44
million and adjusted pretax income of $47 million
- Renewables reported record pretax income of $60 million and pretax income attributable to the
company of $33 million on efficient
plant performance and good merchandising results
- Strong balance sheet; healthy cash flows result in a cash
balance of $644 million at
December 31, 2023
"Renewables had an excellent fourth quarter with record ethanol
production and strong corn to ethanol yields at our four ethanol
plants. We continued to have great operating performance and also
benefited from strong board crush margins. In Trade, our eastern
grain assets had good results from improving basis after a later
harvest coupled with income from drying wet corn. In Nutrient &
Industrial, we had a mixed quarter with year-over-year improvement
from our ag supply chain product lines," said President and CEO
Pat Bowe. "With these results, we
are reporting a 30% year-over-year improvement in adjusted EBITDA
for the quarter, leading to a full year adjusted EBITDA of
$405 million, just behind last year's
record of $412 million, and well
above our previously disclosed range of $350-$375
million."
"Looking forward, we acknowledge a shift in fundamentals of the
commodity markets with increased global stocks. Our mix of North
American storage and ethanol production assets and combined with
strength in merchandising positions us well to benefit from these
market shifts," added Bowe. "We have seen good results from our
recent investments in ingredients supplied for pet and human
consumption. We are actively pursuing opportunities for growth in
the Renewables space, including carbon reduction plans and
increased renewable diesel feedstock merchandising. Across our
businesses, we have a robust pipeline of opportunities that include
both investment in our facilities and M&A with a strong balance
sheet to support this growth."
$ in millions,
except per share
amounts
|
|
|
|
|
Q4
2023
|
Q4
2022
|
Variance
|
YTD
2023
|
YTD
2022
|
Variance
|
Pretax Income from
Continuing Operations
|
$
91.8
|
$
31.1
|
$
60.7
|
$
169.6
|
$
194.6
|
$
(25.0)
|
Pretax Income from
Continuing Operations
Attributable to the
Company1
|
64.5
|
25.0
|
39.5
|
138.2
|
158.7
|
(20.5)
|
Adjusted Pretax
Income (Loss) from Continuing
Operations
Attributable to the Company1
|
68.4
|
50.0
|
18.4
|
159.1
|
184.4
|
(25.3)
|
Trade1
|
47.0
|
52.2
|
(5.2)
|
83.3
|
120.9
|
(37.6)
|
Renewables1
|
32.7
|
12.5
|
20.2
|
97.7
|
72.3
|
25.4
|
Nutrient &
Industrial1
|
2.1
|
1.7
|
0.4
|
25.7
|
39.2
|
(13.5)
|
Other1
|
(13.4)
|
(16.4)
|
3.0
|
(47.7)
|
(48.0)
|
0.3
|
Net Income from
Continuing Operations
Attributable to the
Company
|
51.2
|
15.1
|
36.1
|
101.2
|
119.1
|
(17.9)
|
Adjusted Net Income
from Continuing Operations
Attributable to the
Company1
|
54.6
|
33.8
|
20.8
|
118.3
|
139.4
|
(21.1)
|
Diluted Earnings Per
Share from Continuing
Operations
(EPS)
|
1.49
|
0.44
|
1.05
|
2.94
|
3.46
|
(0.52)
|
Adjusted Diluted
Earnings Per Share from
Continuing
Operations1
|
1.59
|
0.98
|
0.61
|
3.44
|
4.05
|
(0.61)
|
EBITDA from
Continuing Operations1
|
131.2
|
78.7
|
52.5
|
341.5
|
386.2
|
(44.7)
|
Adjusted EBITDA from
Continuing Operations1
|
$
135.1
|
$
103.7
|
$
31.4
|
$
405.1
|
$
411.9
|
$
(6.8)
|
1 Non-GAAP financial measures; see
appendix for explanations and reconciliations.
|
Cash, Liquidity, and Long-Term Debt Management
"Strong operating cash flows continued into the fourth quarter.
Our significant cash position and minimal short-term borrowings
resulted in cash in excess of total debt at year end," said
Executive Vice President and CFO Brian
Valentine. "Our long-term debt to adjusted EBITDA ratio of
1.5 times is well below our stated target of 2.5 times. With a
strong balance sheet, we are well-positioned to fund good growth
projects with appropriate returns."
The company generated $251 million
and $440 million in cash from
operating activities for the fourth quarters of 2023 and 2022,
respectively, and generated $122
million and $90 million in
cash from operations before working capital changes for the same
periods, respectively.
For the full years of 2023 and 2022, the company generated
$947 million and $287 million in cash from operating activities,
respectively. Cash from operations before working capital changes
for the same years was $330 million
and $315 million, leading to a
December 31, 2023, cash balance of
$644 million.
Fourth Quarter Segment Overview
Trade Posts Strong Fourth Quarter Driven by Grain
Assets
Trade recorded pretax income of $44
million and adjusted pretax income of $47 million for the quarter, compared to pretax
income of $27 million and record
adjusted pretax income of $52 million
in the fourth quarter of the prior year.
Strong elevation margins in core grain assets through harvest
drove the results with strong basis appreciation and drying income
from a wet corn crop. The merchandising businesses realized solid
results but down from last year, primarily on weakness in the
Middle East and North Africa region. Our premium ingredients
business experienced significant improvements from the prior year,
as recent acquisitions and other growth capital investments
provided strong returns.
Ag fundamentals are shifting due to increased global supply. Our
mix of assets and merchandising businesses provide a solid
foundation for us to benefit from large crops and carry markets.
With lower commodity prices, domestic producers are hesitant to
forward sell, but our assets are well-positioned for the grains to
flow in due course. With continuing global unrest, volatility
exists in key international shipping lanes which could provide
ongoing merchandising opportunities.
Trade's fourth quarter adjusted EBITDA was $62 million, compared to fourth quarter 2022
adjusted EBITDA of $72 million. Full
year adjusted EBITDA decreased from a record $199 million in 2022 to $155 million in 2023.
Renewables Posts Another Outstanding Quarter
The Renewables segment reported record pretax income of
$60 million and pretax income
attributable to the company of $33
million in the fourth quarter compared to pretax income of
$19 million and pretax income
attributable to the company of $13
million in the fourth quarter of 2022. Fourth quarter
ethanol board crush margins were up $0.20/gallon and natural gas prices were down
when compared to the same quarter in 2022. Our four ethanol plants
had record production in the fourth quarter, further capitalizing
on the favorable margin environment. Renewable diesel feedstock
merchandising results also grew on increased sales volumes and a
further diversified product portfolio.
While spot ethanol crush margins have softened into 2024, the
first quarter generally experiences seasonally weak margins.
Upcoming planned maintenance in the industry and the spring driving
rebound should support improved plant economics; however,
co-product values are facing headwinds as weaker corn prices are
expected to compress feed values.
Renewables recorded EBITDA of $73
million in the fourth quarter of 2023, compared to 2022
fourth quarter EBITDA of $36 million.
For the full year, adjusted EBITDA of $230
million in 2023, was a record and an increase of almost
$50 million from 2022.
Nutrient & Industrial Shows Improvement on Prior
Year
Nutrient & Industrial recorded pretax income of $1 million and adjusted pretax income of
$2 million in the fourth quarter, a
slight improvement to the prior year, on an adjusted basis. The
increased results are primarily due to higher volumes in our core
agriculture products. Adjusted results include $2 million of expense related to a standstill
payment for a growth project that did not come to fruition. We
remain optimistic for a good spring application season as nutrient
prices have stabilized, and farm economics should still incentivize
application of crop inputs.
Nutrient & Industrial's current quarter EBITDA was
$10 million and adjusted EBITDA was
$11 million, comparable to 2022
fourth quarter EBITDA. For the full year, Nutrient & Industrial
recorded EBITDA of $61 million and
adjusted EBITDA of $62 million in
2023, down from EBITDA of $73 million
in 2022.
Conference Call
The company will host a webcast on Wednesday, February 21, 2024, at 11 a.m. ET, to discuss its performance and
provide its outlook for 2024. To access the call, please dial
888-317-6003 or 412-317-6061 (international toll) and use elite
entry number 7643632. 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/2KMLrbDgaWV 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) from continuing operations
attributable to the company; adjusted pretax income (loss) from
continuing operations attributable to the company; adjusted pretax
income (loss) from continuing operations; adjusted net income from
continuing operations attributable to the company; adjusted diluted
earnings per share from continuing operations; earnings before
interest, taxes, depreciation, and amortization (or EBITDA); EBITDA
from continuing operations; adjusted EBITDA; adjusted EBITDA from
continuing operations; and cash from operations before working
capital changes provide additional information to investors and
others about its operations, allowing an evaluation of underlying
operating performance and liquidity and better period-to-period
comparability. The above measures are not and should not be
considered as alternatives to net income from continuing
operations, pretax income from continuing operations or income
(loss) before income taxes from continuing operations, diluted
earnings (loss) per share attributable to The Andersons, Inc.
common shareholders from continuing operations and cash provided by
(used in) operating activities as determined by generally accepted
accounting principles. Reconciliations of the GAAP to non-GAAP
measures may be found within this press release and the financial
tables provided herein.
Company Description
The Andersons, Inc. is a diversified company rooted in
agriculture that conducts business in the commodity merchandising,
renewables, and nutrient & industrial sectors. Guided by its
Statement of Principles, The Andersons is committed to providing
extraordinary service to its customers, helping its employees
improve, supporting its communities, and increasing the value of
the company. For more information, please visit
www.andersonsinc.com.
The Andersons,
Inc.
Condensed
Consolidated Statements of Operations
(unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in thousands, except
per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales and merchandising
revenues
|
$
3,213,000
|
|
$
4,677,488
|
|
$
14,750,112
|
|
$
17,325,384
|
Cost of sales and
merchandising revenues
|
2,995,286
|
|
4,507,465
|
|
14,004,749
|
|
16,641,220
|
Gross profit
|
217,714
|
|
170,023
|
|
745,363
|
|
684,164
|
Operating,
administrative and general expenses
|
132,712
|
|
127,471
|
|
492,260
|
|
457,556
|
Asset
impairment
|
—
|
|
9,000
|
|
87,156
|
|
9,000
|
Interest expense,
net
|
8,101
|
|
14,087
|
|
46,867
|
|
56,849
|
Other income,
net
|
14,860
|
|
11,638
|
|
50,483
|
|
33,823
|
Income before income
taxes from continuing operations
|
91,761
|
|
31,103
|
|
169,563
|
|
194,582
|
Income tax provision
from continuing operations
|
13,324
|
|
9,933
|
|
37,034
|
|
39,628
|
Net income from
continuing operations
|
78,437
|
|
21,170
|
|
132,529
|
|
154,954
|
Income (loss) from
discontinued operations, net of income taxes
|
—
|
|
(6,074)
|
|
—
|
|
12,025
|
Net income
|
78,437
|
|
15,096
|
|
132,529
|
|
166,979
|
Net income
attributable to the noncontrolling interest
|
27,251
|
|
6,072
|
|
31,339
|
|
35,899
|
Net income attributable
to The Andersons, Inc.
|
$
51,186
|
|
$
9,024
|
|
$
101,190
|
|
$ 131,080
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to
The Andersons, Inc.
common shareholders:
|
|
|
|
|
|
|
|
Basic earnings
(loss):
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.52
|
|
$
0.45
|
|
$
3.00
|
|
$
3.53
|
Discontinued
operations
|
—
|
|
(0.18)
|
|
—
|
|
0.36
|
|
$
1.52
|
|
$
0.27
|
|
$
3.00
|
|
$
3.89
|
Diluted earnings
(loss):
|
|
|
|
|
|
|
|
Continuing
operations
|
$
1.49
|
|
$
0.44
|
|
$
2.94
|
|
$
3.46
|
Discontinued
operations
|
—
|
|
(0.18)
|
|
—
|
|
0.35
|
|
$
1.49
|
|
$
0.26
|
|
$
2.94
|
|
$
3.81
|
The Andersons,
Inc.
Condensed
Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
December 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
643,854
|
|
$
115,269
|
Accounts receivable,
net
|
762,549
|
|
1,248,878
|
Inventories
|
1,166,700
|
|
1,731,725
|
Commodity derivative
assets – current
|
178,083
|
|
295,588
|
Other current
assets
|
55,777
|
|
74,493
|
Total current
assets
|
2,806,963
|
|
3,465,953
|
Other
assets:
|
|
|
|
Goodwill
|
127,856
|
|
129,342
|
Other intangible
assets, net
|
85,579
|
|
100,907
|
Right of use assets,
net
|
54,234
|
|
61,890
|
Other assets,
net
|
87,010
|
|
87,175
|
Total other
assets
|
354,679
|
|
379,314
|
Property, plant and
equipment, net
|
693,365
|
|
762,729
|
Total assets
|
$
3,855,007
|
|
$
4,607,996
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
43,106
|
|
$
272,575
|
Trade and other
payables
|
1,055,473
|
|
1,423,633
|
Customer prepayments
and deferred revenue
|
187,054
|
|
370,524
|
Commodity derivative
liabilities – current
|
90,849
|
|
98,519
|
Current maturities of
long-term debt
|
27,561
|
|
110,155
|
Accrued expenses and
other current liabilities
|
232,288
|
|
245,916
|
Total current
liabilities
|
1,636,331
|
|
2,521,322
|
Long-term lease
liabilities
|
31,659
|
|
37,147
|
Long-term debt, less
current maturities
|
562,960
|
|
492,518
|
Deferred income
taxes
|
58,581
|
|
64,080
|
Other long-term
liabilities
|
49,089
|
|
63,160
|
Total
liabilities
|
2,338,620
|
|
3,178,227
|
Total equity
|
1,516,387
|
|
1,429,769
|
Total liabilities and
equity
|
$
3,855,007
|
|
$
4,607,996
|
The Andersons,
Inc.
Consolidated
Statements of Cash Flows
(unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
$
78,437
|
|
$
21,170
|
|
$
132,529
|
|
$
154,954
|
Income (loss) from
discontinued operations, net of income taxes
|
—
|
|
(6,074)
|
|
—
|
|
12,025
|
Net income
|
78,437
|
|
15,096
|
|
132,529
|
|
166,979
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
31,306
|
|
33,476
|
|
125,106
|
|
134,742
|
Bad debt expense,
net
|
5,438
|
|
973
|
|
11,519
|
|
6,001
|
Stock-based
compensation expense
|
3,493
|
|
3,495
|
|
12,857
|
|
11,192
|
Deferred federal
income tax
|
6,696
|
|
810
|
|
(1,596)
|
|
(20,009)
|
Gain on sale of
business from continuing operations
|
—
|
|
—
|
|
(5,643)
|
|
—
|
Asset
impairment
|
—
|
|
11,818
|
|
87,156
|
|
11,818
|
Gain on sale of
business from discontinued operations
|
—
|
|
—
|
|
—
|
|
(27,091)
|
Damaged
inventory
|
—
|
|
17,328
|
|
—
|
|
17,328
|
Other
|
(10,535)
|
|
7,275
|
|
(10,698)
|
|
14,073
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
62,705
|
|
(250,537)
|
|
468,968
|
|
(391,403)
|
Inventories
|
(175,883)
|
|
(179,995)
|
|
572,235
|
|
56,859
|
Commodity
derivatives
|
12,027
|
|
170,300
|
|
111,506
|
|
65,399
|
Other current and
non-current assets
|
4,481
|
|
8,936
|
|
6,529
|
|
10,936
|
Payables and other
current and non-current liabilities
|
232,498
|
|
601,512
|
|
(563,718)
|
|
230,293
|
Net cash provided by
operating activities
|
250,663
|
|
440,487
|
|
946,750
|
|
287,117
|
Investing
Activities
|
|
|
|
|
|
|
|
Acquisition of
businesses, net of cash acquired
|
(313)
|
|
(20,245)
|
|
(24,698)
|
|
(20,245)
|
Purchases of property,
plant and equipment and capitalized software
|
(41,725)
|
|
(36,037)
|
|
(150,443)
|
|
(108,284)
|
Proceeds from sale of
assets
|
424
|
|
497
|
|
3,506
|
|
5,307
|
Purchase of
investments
|
—
|
|
—
|
|
(1,730)
|
|
(2,105)
|
Proceeds from sale of
business from continuing operations
|
—
|
|
—
|
|
10,318
|
|
5,171
|
Proceeds from sale of
Rail assets
|
—
|
|
—
|
|
2,871
|
|
36,706
|
Proceeds from sale of
business from discontinued operations
|
—
|
|
—
|
|
—
|
|
56,302
|
Purchases of Rail
assets
|
—
|
|
(3,994)
|
|
—
|
|
(31,458)
|
Other
|
4,998
|
|
3,958
|
|
6,297
|
|
5,704
|
Net cash used in
investing activities
|
(36,616)
|
|
(55,821)
|
|
(153,879)
|
|
(52,902)
|
Financing
Activities
|
|
|
|
|
|
|
|
Net (payments) receipts
under short-term lines of credit
|
27,456
|
|
(382,591)
|
|
(233,696)
|
|
(21,273)
|
Proceeds from issuance
of short-term debt
|
—
|
|
—
|
|
—
|
|
350,000
|
Payments of short-term
debt
|
—
|
|
—
|
|
—
|
|
(550,000)
|
Proceeds from issuance
of long-term debt
|
—
|
|
—
|
|
100,000
|
|
—
|
Payments of long-term
debt
|
(6,886)
|
|
(7,460)
|
|
(49,620)
|
|
(30,045)
|
Distributions to
noncontrolling interest owner
|
(2,114)
|
|
(9,980)
|
|
(46,418)
|
|
(44,910)
|
Dividends
paid
|
(6,602)
|
|
(6,347)
|
|
(25,373)
|
|
(24,609)
|
Common stock
repurchased
|
—
|
|
(5,952)
|
|
(1,747)
|
|
(12,721)
|
Other
|
(1)
|
|
2,111
|
|
(7,139)
|
|
(1,172)
|
Net cash provided by
(used in) financing activities
|
11,853
|
|
(410,219)
|
|
(263,993)
|
|
(334,730)
|
Effect of exchange
rates on cash and cash equivalents
|
(101)
|
|
51
|
|
(293)
|
|
(660)
|
Increase (decrease) in
Cash and cash equivalents
|
225,799
|
|
(25,502)
|
|
528,585
|
|
(101,175)
|
Cash and cash
equivalents at the beginning of the period
|
418,055
|
|
140,771
|
|
115,269
|
|
216,444
|
Cash and cash
equivalents at the end of the period
|
$
643,854
|
|
$
115,269
|
|
$
643,854
|
|
$
115,269
|
The Andersons,
Inc.
Adjusted Net Income
from Continuing Operations Attributable to The Andersons,
Inc.
A non-GAAP financial
measure
(unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in thousands, except
per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income from
continuing operations
|
$
78,437
|
|
$
21,170
|
|
$ 132,529
|
|
$ 154,954
|
Net income
attributable to noncontrolling interests
|
27,251
|
|
6,072
|
|
31,339
|
|
35,899
|
Net income from
continuing operations attributable to
The Andersons,
Inc.
|
51,186
|
|
15,098
|
|
101,190
|
|
119,055
|
Adjustments:
|
|
|
|
|
|
|
|
Asset impairment
including equity method investments
|
—
|
|
9,000
|
|
45,413
|
|
13,455
|
Transaction related
compensation
|
3,212
|
|
—
|
|
7,818
|
|
—
|
Goodwill
impairment
|
686
|
|
—
|
|
686
|
|
—
|
Gain on cost method
investment
|
—
|
|
—
|
|
(4,798)
|
|
—
|
Gain on sale of
assets
|
—
|
|
—
|
|
(5,643)
|
|
(3,762)
|
Gain on
deconsolidation of joint venture
|
—
|
|
—
|
|
(6,544)
|
|
—
|
Insured inventory
expenses (recoveries)
|
—
|
|
15,993
|
|
(16,080)
|
|
15,993
|
Income tax impact of
adjustments1
|
(520)
|
|
(6,248)
|
|
(3,775)
|
|
(5,308)
|
Total adjusting items,
net of tax
|
3,378
|
|
18,745
|
|
17,077
|
|
20,378
|
Adjusted net income
from continuing operations
attributable to The
Andersons, Inc.
|
$
54,564
|
|
$
33,843
|
|
$ 118,267
|
|
$ 139,433
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to The Andersons, Inc.
common shareholders
from continuing operations
|
$
1.49
|
|
$
0.44
|
|
$
2.94
|
|
$
3.46
|
Impact on diluted
earnings per share
from continuing
operations
|
$
0.10
|
|
$
0.54
|
|
$
0.50
|
|
$
0.59
|
Adjusted diluted
earnings per share attributable to The Andersons, Inc.
common shareholders
from continuing operations
|
$
1.59
|
|
$
0.98
|
|
$
3.44
|
|
$
4.05
|
1 The
income tax impact of adjustments is taken at the statutory tax rate
of 25% with the exception of certain transaction related
compensation, goodwill impairments, and impairments of equity
method investments in both 2023 and 2022, respectively.
|
|
Adjusted net income
(loss) attributable to The Andersons, Inc. from continuing
operations reflects reported net income (loss) available to The
Andersons, Inc. common shareholders from continuing operations
after the removal of specified items described above. Adjusted
diluted earnings (loss) from continuing operations per share
reflects the fully diluted EPS of The Andersons, Inc. after removal
of the effect on EPS as reported of specified items described
above. Management believes that Adjusted net income (loss)
attributable to The Andersons, Inc. from continuing operations and
Adjusted diluted earnings (loss) from continuing operations per
share are useful measures of The Andersons, Inc. performance as
they provide investors additional information about the operations
of the company allowing better evaluation of underlying business
performance and better comparability to previous periods. These
non-GAAP financial measures are not intended to replace or be
alternatives to Net income attributable to The Andersons, Inc. and
Diluted earnings attributable to The Andersons, Inc. common
shareholders as reported, the most directly comparable GAAP
financial measures, or any other measures of operating results
under GAAP. Earnings amounts described above have been divided by
the company's average number of diluted shares outstanding for each
respective period in order to arrive at an adjusted diluted
earnings (loss) from continuing operations per share amount for
each specified item.
|
The Andersons,
Inc.
Segment
Data
(unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
2,212,434
|
|
$ 795,236
|
|
$ 205,330
|
|
$
—
|
|
$
3,213,000
|
Gross profit
|
126,064
|
|
65,257
|
|
26,393
|
|
—
|
|
217,714
|
Operating,
administrative and general expenses
|
88,097
|
|
7,933
|
|
24,091
|
|
12,591
|
|
132,712
|
Other income (loss),
net
|
11,839
|
|
3,401
|
|
439
|
|
(819)
|
|
14,860
|
Income (loss) before
income taxes from continuing operations
|
43,807
|
|
59,988
|
|
1,374
|
|
(13,408)
|
|
91,761
|
Income attributable to
the noncontrolling interests
|
—
|
|
27,251
|
|
—
|
|
—
|
|
27,251
|
Income (loss) before
income taxes from continuing operations
attributable to
The Andersons, Inc.1
|
$
43,807
|
|
$
32,737
|
|
$
1,374
|
|
$ (13,408)
|
|
$
64,510
|
Adjustments to income
(loss) before income taxes from
continuing
operations2
|
3,212
|
|
—
|
|
686
|
|
—
|
|
3,898
|
Adjusted income (loss)
before income taxes from continuing
operations attributable
to The Andersons, Inc.1
|
$
47,019
|
|
$
32,737
|
|
$
2,060
|
|
$ (13,408)
|
|
$
68,408
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
3,624,563
|
|
$ 797,818
|
|
$ 255,107
|
|
$
—
|
|
$
4,677,488
|
Gross profit
|
113,726
|
|
27,239
|
|
29,058
|
|
—
|
|
170,023
|
Operating,
administrative and general expenses
|
77,725
|
|
7,197
|
|
25,660
|
|
16,889
|
|
127,471
|
Other income (loss),
net
|
10,513
|
|
981
|
|
313
|
|
(169)
|
|
11,638
|
Income (loss) before
income taxes from continuing operations
|
27,232
|
|
18,582
|
|
1,717
|
|
(16,428)
|
|
31,103
|
Income attributable to
the noncontrolling interests
|
—
|
|
6,072
|
|
—
|
|
—
|
|
6,072
|
Income (loss) before
income taxes from continuing operations
attributable to
The Andersons, Inc.1
|
$
27,232
|
|
$
12,510
|
|
$
1,717
|
|
$ (16,428)
|
|
$
25,031
|
Adjustments to income
(loss) before income taxes from
continuing
operations2
|
24,993
|
|
—
|
|
—
|
|
—
|
|
24,993
|
Adjusted income (loss)
before income taxes from continuing
operations attributable
to The Andersons, Inc.1
|
$
52,225
|
|
$
12,510
|
|
$
1,717
|
|
$ (16,428)
|
|
$
50,024
|
1 Income (loss) from continuing
operations before income taxes attributable to The Andersons, Inc.
for each operating segment is defined as net sales and
merchandising revenues plus identifiable other income less all
identifiable operating expenses, including interest expense for
carrying working capital and long-term assets and is reported net
of the noncontrolling interest share of income.
|
2 Additional
information on the individual adjustments that are included in the
adjustments to income (loss) from continuing operations before
income taxes can be found in the Reconciliation to EBITDA and
Adjusted EBITDA table.
|
The Andersons,
Inc.
Segment Data
(continued)
(unaudited)
|
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Twelve months ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
10,426,083
|
|
$
3,380,632
|
|
$ 943,397
|
|
$
—
|
|
$
14,750,112
|
Gross profit
|
409,950
|
|
202,397
|
|
133,016
|
|
—
|
|
745,363
|
Operating,
administrative and general expenses
|
308,470
|
|
32,737
|
|
103,342
|
|
47,711
|
|
492,260
|
Other income,
net
|
29,988
|
|
15,056
|
|
2,391
|
|
3,048
|
|
50,483
|
Income (loss) before
income taxes from continuing operations
|
96,234
|
|
91,175
|
|
25,049
|
|
(42,895)
|
|
169,563
|
Income attributable to
the noncontrolling interests
|
—
|
|
31,339
|
|
—
|
|
—
|
|
31,339
|
Income (loss) before
income taxes from continuing operations
attributable to
The Andersons, Inc.1
|
$
96,234
|
|
$
59,836
|
|
$
25,049
|
|
$ (42,895)
|
|
$ 138,224
|
Adjustments to income
(loss) before income taxes from
continuing
operations2
|
(12,942)
|
|
37,906
|
|
686
|
|
(4,798)
|
|
20,852
|
Adjusted income (loss)
before income taxes from continuing
operations attributable
to The Andersons, Inc.1
|
$
83,292
|
|
$
97,742
|
|
$
25,735
|
|
$ (47,693)
|
|
$ 159,076
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
Sales and merchandising
revenues
|
$
13,047,537
|
|
$
3,178,539
|
|
$
1,099,308
|
|
$
—
|
|
$
17,325,384
|
Gross profit
|
407,707
|
|
126,995
|
|
149,462
|
|
—
|
|
684,164
|
Operating,
administrative and general expenses
|
273,592
|
|
30,730
|
|
106,003
|
|
47,231
|
|
457,556
|
Other income (loss),
net
|
12,661
|
|
20,731
|
|
3,001
|
|
(2,570)
|
|
33,823
|
Income (loss) before
income taxes from continuing operations
|
95,225
|
|
108,221
|
|
39,162
|
|
(48,026)
|
|
194,582
|
Income attributable to
the noncontrolling interests
|
—
|
|
35,899
|
|
—
|
|
—
|
|
35,899
|
Income (loss) before
income taxes from continuing operations
attributable to
The Andersons, Inc.1
|
$
95,225
|
|
$
72,322
|
|
$
39,162
|
|
$ (48,026)
|
|
$ 158,683
|
Adjustments to income
(loss) before income taxes from continuing
operations2
|
25,686
|
|
—
|
|
—
|
|
—
|
|
25,686
|
Adjusted income (loss)
before income taxes from continuing
operations attributable
to The Andersons, Inc.1
|
$ 120,911
|
|
$
72,322
|
|
$
39,162
|
|
$ (48,026)
|
|
$ 184,369
|
1 Income
(loss) from continuing operations before income taxes attributable
to The Andersons, Inc. for each operating segment is defined as net
sales and merchandising revenues plus identifiable other income
less all identifiable operating expenses, including interest
expense for carrying working capital and long-term assets and is
reported net of the noncontrolling interest share of
income.
|
2 Additional
information on the individual adjustments that are included in the
adjustments to income (loss) from continuing operations before
income taxes can be found in the Reconciliation to EBITDA and
Adjusted EBITDA table. 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 already represented 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)
|
|
|
Continuing
Operations
|
(in
thousands)
|
Trade
|
|
Renewables
|
|
Nutrient &
Industrial
|
|
Other
|
|
Total
|
Three months ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)1
|
$
43,807
|
|
$
59,988
|
|
$
1,374
|
|
$
(26,732)
|
|
$
78,437
|
Interest expense
(income)
|
5,999
|
|
737
|
|
1,367
|
|
(2)
|
|
8,101
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
13,324
|
|
13,324
|
Depreciation and
amortization
|
9,450
|
|
12,184
|
|
7,750
|
|
1,922
|
|
31,306
|
EBITDA1
|
59,256
|
|
72,909
|
|
10,491
|
|
(11,488)
|
|
131,168
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
3,212
|
|
—
|
|
—
|
|
—
|
|
3,212
|
Goodwill
impairment
|
—
|
|
—
|
|
686
|
|
—
|
|
686
|
Total adjusting
items
|
3,212
|
|
—
|
|
686
|
|
—
|
|
3,898
|
Adjusted
EBITDA1
|
$
62,468
|
|
$
72,909
|
|
$
11,177
|
|
$
(11,488)
|
|
$
135,066
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
$
27,232
|
|
$
18,582
|
|
$
1,717
|
|
$
(26,361)
|
|
$
21,170
|
Interest expense
(income)
|
10,282
|
|
2,441
|
|
1,994
|
|
(630)
|
|
14,087
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
9,933
|
|
9,933
|
Depreciation and
amortization
|
9,054
|
|
15,443
|
|
6,834
|
|
2,145
|
|
33,476
|
EBITDA from continuing
operations
|
46,568
|
|
36,466
|
|
10,545
|
|
(14,913)
|
|
78,666
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
9,000
|
|
—
|
|
—
|
|
—
|
|
9,000
|
Insured inventory
expenses
|
15,993
|
|
—
|
|
—
|
|
—
|
|
15,993
|
Total adjusting
items
|
24,993
|
|
—
|
|
—
|
|
—
|
|
24,993
|
Adjusted EBITDA from
continuing operations
|
$
71,561
|
|
$
36,466
|
|
$
10,545
|
|
$
(14,913)
|
|
$
103,659
|
1 Amounts
for the three months ended December 31, 2023, contain no activity
from discontinued operations. As such, references to EBITDA and
EBITDA from continuing operations, as well as, Adjusted EBITDA and
Adjusted EBITDA from continuing operations will yield the same
results for the three months ended December 31, 2023.
|
|
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 &
Industrial
|
|
Other
|
|
Total
|
Twelve months ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
Net income
(loss)1
|
$
96,234
|
|
$
91,175
|
|
$
25,049
|
|
$
(79,929)
|
|
$
132,529
|
Interest expense
(income)
|
35,234
|
|
6,385
|
|
7,016
|
|
(1,768)
|
|
46,867
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
37,034
|
|
37,034
|
Depreciation and
amortization
|
36,109
|
|
51,408
|
|
29,268
|
|
8,321
|
|
125,106
|
EBITDA1
|
167,577
|
|
148,968
|
|
61,333
|
|
(36,342)
|
|
341,536
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Transaction related
compensation
|
7,818
|
|
—
|
|
—
|
|
—
|
|
7,818
|
Asset impairment
including equity
method
investment
|
963
|
|
87,156
|
|
—
|
|
—
|
|
88,119
|
Gain on sale of
assets
|
(5,643)
|
|
—
|
|
—
|
|
—
|
|
(5,643)
|
Insured inventory
recoveries
|
(16,080)
|
|
—
|
|
—
|
|
—
|
|
(16,080)
|
Gain on
deconsolidation of joint venture
|
—
|
|
(6,544)
|
|
—
|
|
—
|
|
(6,544)
|
Goodwill
impairment
|
—
|
|
—
|
|
686
|
|
—
|
|
686
|
Gain on cost method
investment
|
—
|
|
—
|
|
—
|
|
(4,798)
|
|
(4,798)
|
Total adjusting
items
|
(12,942)
|
|
80,612
|
|
686
|
|
(4,798)
|
|
63,558
|
Adjusted
EBITDA1
|
$
154,635
|
|
$
229,580
|
|
$
62,019
|
|
$
(41,140)
|
|
$
405,094
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
Net income (loss) from
continuing operations
|
$
95,225
|
|
$
108,221
|
|
$
39,162
|
|
$
(87,654)
|
|
$
154,954
|
Interest expense
(income)
|
42,551
|
|
8,775
|
|
7,298
|
|
(1,775)
|
|
56,849
|
Tax
provision
|
—
|
|
—
|
|
—
|
|
39,628
|
|
39,628
|
Depreciation and
amortization
|
35,953
|
|
63,458
|
|
26,634
|
|
8,697
|
|
134,742
|
EBITDA from continuing
operations
|
173,729
|
|
180,454
|
|
73,094
|
|
(41,104)
|
|
386,173
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
(3,762)
|
|
—
|
|
—
|
|
—
|
|
(3,762)
|
Asset impairment
including equity
method
investments
|
13,455
|
|
—
|
|
—
|
|
—
|
|
13,455
|
Insured inventory
expenses
|
15,993
|
|
—
|
|
—
|
|
—
|
|
15,993
|
Total adjusting
items
|
25,686
|
|
—
|
|
—
|
|
—
|
|
25,686
|
Adjusted EBITDA from
continuing operations
|
$
199,415
|
|
$
180,454
|
|
$
73,094
|
|
$
(41,104)
|
|
$
411,859
|
1 Amounts
for the twelve months ended December 31, 2023, contain no activity
from discontinued operations. As such, references to EBITDA and
EBITDA from continuing operations, as well as, Adjusted EBITDA and
Adjusted EBITDA from continuing operations will yield the same
results for the twelve months ended December 31, 2023.
|
|
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.
|
Andersons,
Inc.
Cash from Operations
Before Working Capital Changes
A non-GAAP financial
measure
(unaudited)
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash provided by
operating activities
|
$ 250,663
|
|
$ 440,487
|
|
$ 946,750
|
|
$ 287,117
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
62,705
|
|
(250,537)
|
|
468,968
|
|
(391,403)
|
Inventories
|
(175,883)
|
|
(179,995)
|
|
572,235
|
|
56,859
|
Commodity
derivatives
|
12,027
|
|
170,300
|
|
111,506
|
|
65,399
|
Other current and
non-current assets
|
4,481
|
|
8,936
|
|
6,529
|
|
10,936
|
Payables and other
current and non-current liabilities
|
232,498
|
|
601,512
|
|
(563,718)
|
|
230,293
|
Total changes in
operating assets and liabilities
|
135,828
|
|
350,216
|
|
595,520
|
|
(27,916)
|
Adjusting items
impacting cash from operations before
working capital
changes:
|
|
|
|
|
|
|
|
Less: Insured
inventory recoveries
|
—
|
|
—
|
|
(16,080)
|
|
—
|
Less: Unrealized
foreign currency losses on receivables
|
7,270
|
|
—
|
|
(4,818)
|
|
—
|
Cash from operations
before working capital changes
|
$ 122,105
|
|
$
90,271
|
|
$ 330,332
|
|
$ 315,033
|
Cash from operations
before working capital changes is defined as cash provided by (used
in) operating activities before the impact of changes in working
capital within the statement of cash flows. The company calculates
cash from operations by eliminating the effect of changes in
accounts receivable, inventories, commodity derivatives, other
current and non-current assets, and payables and other current and
non-current liabilities; and adjusted by specific items from the
cash provided by (used in) operating activities. Management
believes that cash from operations before working capital changes
is a useful measure of the company's performance as it provides
investors additional information about the company's operations
allowing better evaluation of underlying business performance and
improved comparability to prior periods. Cash from operations
before working capital changes is a non-GAAP financial measure and
is not intended to replace or be an alternative to cash provided by
(used in) operating activities, the most directly comparable GAAP
financial measure.
|
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SOURCE The Andersons, Inc.