MAUMEE, Ohio, May 5, 2020 /CNW/ -- The Andersons, Inc.
(Nasdaq: ANDE) announces financial results for the first
quarter ended March 31, 2020.
First Quarter Highlights:
- Company reported a net loss attributable to The Andersons of
$37.7 million, or $1.15 per diluted share, and an adjusted net loss
of $43.2 million, or $1.32 per diluted share.
- Adjusted EBITDA declined to $14.7
million for the quarter.
- Ethanol and corn demand were sharply lower in March,
reflecting reduced vehicle travel.
- Trade Group reported a pretax loss of $10.0 million, and an adjusted pretax loss of
$8.7 million, as lower ethanol demand
caused significant depreciation in corn basis.
- Ethanol Group recorded a pretax loss of $37.4 and a pretax loss attributable to the
company of $24.0 million, including
$14.7 million of non-cash
mark-to-market and inventory adjustments.
- Plant Nutrient Group improved year-over-year results by
$2.7 million, recording a pretax loss
of $1.2 million on lower operating
and interest expenses.
- Rail Group earned $1.0 million
of pretax income on lower lease income.
"The Andersons is a key player in essential businesses that are
a part of the North American
agriculture supply chain, and despite the challenging environment
caused by the COVID-19 pandemic, our company remains healthy,
resilient and strong," said President and CEO Pat Bowe. "We have continued to operate
throughout the pandemic except for the previously announced ethanol
plant maintenance shutdowns, and our balance sheet remains solid;
we have ample liquidity to sustain us."
"We thank our employees, particularly those working in our
plants and operations, for demonstrating 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
conditions. We extend our sympathies to those in our communities
who have been directly affected by COVID-19."
"Most parts of our business were off to a decent start to the
quarter, but the COVID-19 pandemic had a profound negative impact
on our operating results. Stay-at-home orders reduced vehicle miles
traveled, which in turn dramatically reduced demand for gasoline,
ethanol and corn, significantly hurting the performance of both the
Ethanol Group and Trade Group," continued Bowe. "The Plant Nutrient
Group demonstrated resiliency during the quarter as results
improved year-over-year and benefited from a good start to the
planting season."
$ in millions,
except per share amounts
|
|
Q1
2020
|
Q1
2019
|
Variance
|
Pretax Income
(Loss)1
|
$
|
(39.1)
|
|
$
|
(19.4)
|
|
$
|
(19.7)
|
|
Adjusted Pretax
Income (Loss)1
|
(37.8)
|
|
(7.9)
|
|
(29.9)
|
|
Trade
Group
|
(8.7)
|
|
(6.3)
|
|
(2.4)
|
|
Ethanol
Group1
|
(24.0)
|
|
3.0
|
|
(27.0)
|
|
Plant Nutrient
Group
|
(1.2)
|
|
(3.9)
|
|
2.7
|
|
Rail Group
|
1.0
|
|
4.3
|
|
(3.3)
|
|
Other
|
(5.0)
|
|
(4.9)
|
|
(0.1)
|
|
Net Income
(Loss)1
|
(37.7)
|
|
(14.0)
|
|
(23.7)
|
|
Adjusted Net
Income (Loss)1
|
(43.2)
|
|
(5.3)
|
|
(37.9)
|
|
EPS
|
(1.15)
|
|
(0.43)
|
|
(0.72)
|
|
Adjusted
EPS
|
(1.32)
|
|
(0.16)
|
|
(1.16)
|
|
EBITDA
|
9.9
|
|
30.1
|
|
(20.2)
|
|
Adjusted EBITDA
Attributable to
the Company
|
$
|
14.7
|
|
$
|
41.8
|
|
$
|
(27.1)
|
|
1 Reflects amounts
attributable to the company and excludes loss attributable to the
noncontrolling interests of $13.4 in Q1 2020 and $0.2 in Q1 2019.
See non-GAAP reconciliations in the accompanying tables.
|
Company Actively Manages COVID-19 Pandemic
As an essential part of the North American agriculture supply
chain, The Andersons' facilities fit within the definition of a
critical infrastructure industry. Agriculture is a key part of the
nation's food supply, and agricultural products are incorporated
into many other essential industries that needed to keep operating.
As such, it was important that the company continued to work
closely with farmers and customers and support them through its
ongoing operations.
When the COVID-19 pandemic reached the U.S, Bowe immediately
created an executive-level response team, which has been monitoring
the crisis, sharing information and best practices across the
company's operations and managing its coordinated response. The
foundation for that response includes the guidance of the CDC, WHO,
OSHA, and state and local governments, as well as benchmarking with
both companies within the company's industries and with other U.S.
companies.
Throughout this crisis, the health and safety of the company's
employees, customers and suppliers has been a top priority. They
have been practicing appropriate social distancing and good hygiene
at all its operating facilities. Most office and administrative
personnel began working from home on March
16. Earlier this week, the company began a phased and
flexible approach for employees to return to offices as various
states and localities modified their stay-at-home orders.
The company is also continuing its long tradition of giving back
to the communities in which it operates.
- It has provided support to employees and their families through
frequent communication, changes to work policies and enhanced
benefits and wellness activities.
- Charitable donations made by related private foundation
resources assisted those most in need.
- Employees have been encouraged to use the company's gift
matching program to double their personal charitable
donations.
- The company has promoted "no contact" volunteer opportunities
as a way for employees and their families to serve their
communities in this time of need.
- Bowe was selected to serve on Ohio Governor Mike
DeWine's economic advisory board that is helping DeWine's
administration work through the economic fallout of the
pandemic.
Balance Sheet, Liquidity and Cash Management
"We have ample liquidity to withstand a protracted downturn in
our businesses. More specifically, we currently have approximately
$850 million of undrawn capacity from
our primary revolving credit agreement," said Executive Vice
President and CFO Brian Valentine.
"Covenants associated with our $1.65
billion base credit facility are measured based on minimum
working capital and debt to capitalization. We have performed
stress testing that indicates we will continue to be in compliance
with our covenants for the foreseeable future."
The company has been consistently focused on expense management
since early 2016. Since that time, it has reduced expenses or
created expense synergies through acquisition of more than
$40 million. The goal for 2020 before
the onset of COVID-19 was to generate another $10 million of run-rate savings, including
$5 million of additional synergies
related to the Lansing Trade Group acquisition completed in the
first quarter of 2019.
Considering the difficult operating environment caused by
COVID-19, the company has taken an even stronger approach to cost
controls and cash management.
- The company is targeting at least $20
million in additional expense reductions in 2020.
- As to capital expenditures, the company has limited spending in
the near term to those projects that are required for employee
safety or are critical to serving customer needs.
- The company expects to spend approximately $100 million on capital projects in 2020 after
averaging more than $200 million over
the last three years.
The company is, however, continuing to engage in growth capital
projects or make growth investments, albeit at a more measured
pace. The Trade Group recently invested with five other businesses
in a new business called Roger™, which has built an
application that greatly simplifies the processes involved in
shipping bulk commodities by truck.
First Quarter Segment Overview
Trade Group Records Lower Adjusted Results Driven by Low
Ethanol Demand
The Trade Group recorded a pretax loss of $10.0 million and an adjusted pretax loss of
$8.7 million for the quarter compared
to an adjusted pretax loss of $6.3
million in the first quarter of 2019.
- The group recorded a non-cash, mark-to-market loss on its corn
position during the quarter as basis depreciated due to lower
ethanol demand.
- The food and specialty ingredients businesses enjoyed a strong
quarter, more than doubling last year's first quarter results.
- The quarter also included an addition to credit reserves for an
ethanol customer.
The group adjusted its reported pretax income by $1.3 million for stock compensation expense
associated with the prior year acquisition of Lansing Trade
Group.
The group's first quarter adjusted EBITDA was $9.9 million compared to first quarter 2019
adjusted EBITDA of $18.7 million.
The group expects continued pressure on the profitability of its
Eastern assets until the 2020 corn crop is harvested. However, the
group believes an expected large corn crop in 2020 should help
create increased space income beginning later this year and into
2021.
Ethanol Group Loss Driven by COVID-19 in March
The Ethanol Group reported a pretax loss attributable to the
company of $24.0 million in the first
quarter, compared to the $3.0 million
of pretax income it earned in the same period in 2019. The group's
results included the consolidated results of all five ethanol
plants due to the October 2019 merger
of The Andersons Marathon Holdings, LLC (TAMH). Beginning with the
first quarter, it also included the results of the DDG trading
business, which were previously included in Trade Group results.
Prior year results were recast for comparability.
- Margins declined in January and February and then fell
significantly in March as the number of COVID-19 stay-at-home
orders grew and gasoline demand plummeted.
- The group recorded a mark-to-market loss of $9.6 million on its hedged positions and an
additional $5.1 million for its share
of charges to write down inventory to net realizable value.
- TAMH's four plants continued to operate at highly efficient
levels during the quarter.
The group recorded negative adjusted EBITDA attributable to the
company of $14.0 million in the first
quarter of 2020 compared to 2019 first quarter adjusted EBITDA
attributable to the company of $4.1
million. This result excludes the EBITDA allocable to the
noncontrolling interests.
The group's decisions to aggressively halt production and use
that down time to maintain its facilities while protecting its
employees and conserving cash appear to have been the right moves.
Margins are beginning to improve and present opportunities for its
highly efficient plants. Production will be brought back on line
throughout the second quarter as ethanol demand, logistics, and
margin structure improve.
Plant Nutrient Group Records Improved Year-Over-Year
Results
The Plant Nutrient Group improved its results year over year,
recording a pretax loss of $1.2
million compared to a pretax loss of $3.9 million in the same period of prior
year.
As of January 1, 2020, the group
reorganized into three divisions: Ag Supply Chain, which includes
wholesale distribution centers and service-oriented retail farm
centers; Specialty Liquids, which includes manufactured products
intended for agricultural and industrial uses; and Engineered
Granules, which includes granular products for turf and
agricultural uses, contract manufacturing and cob products.
- Volumes were up, with increases in Ag Supply Chain and
Specialty Liquids partially offset by a decrease in Engineered
Granules.
- Overall margin per ton was slightly lower overall, largely due
to product mix. Margins on manufactured products improved while
commodity distribution margins fell during the quarter.
- Improved Engineered Granules results were driven by lower cost
of sales and operating expenses.
The group's current quarter EBITDA was $6.9 million, a 38 percent increase compared to
2019 first quarter EBITDA of $5.0
million.
The group's near-term outlook is positive, as weather has been
favorable for planting and a large corn crop is anticipated. The
group continues to focus on cost reduction opportunities that have
improved results over the last several quarters. However, the group
is feeling cautious about the 2021 crop year if demand for corn and
beans does not improve.
Rail Group Results Down on Lower Lease Income
The Rail Group earned first quarter pretax income of
$1.0 million compared to $4.3 million in the same period of the prior
year.
- Railcar leasing income fell by $2.9
million on persistent headwinds in the sand and ethanol
markets. Utilization, cars on lease and average lease rate were
lower as railcar loadings continued to decrease.
- Income from car sales was marginally lower, primarily as a
result of lower scrap steel pricing.
- Service and other pretax income was flat.
The group's first quarter 2020 EBITDA of $14.4 million was approximately 11 percent lower
than first quarter 2019 EBITDA.
The COVID-19 pandemic has driven railcar loadings 11 percent
lower year over year for the first seventeen weeks of the year,
including decreases of more than 20 percent over the last several
weeks. This condition will likely place pressure on
utilization and lease renewal rates and decrease demand for
contract railcar repairs.
Provision for Income Taxes Includes CARES Act
Benefits
The company's first quarter income tax provision included tax
benefits of approximately $6.6
million, or $0.20 per diluted
share, related to the lengthening of a net operating loss carryback
allowed by the recently passed CARES Act. As with the impacts of
the Tax Cuts and Jobs Act of 2017, the company has excluded these
benefits from its adjusted net income. These benefits are expected
to result in refunds of nearly $18
million. The company is currently assessing additional tax
benefits that may be allowed based on subsequent guidance issued by
the IRS on April 17. 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, May 6, 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 7472658). 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/apqt8ept. 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.
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 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
March 31,
|
(in thousands, except
per share data)
|
2020
|
|
2019
|
Sales and
merchandising revenues
|
$
|
1,853,105
|
|
|
$
|
1,976,792
|
|
Cost of sales and
merchandising revenues
|
1,789,975
|
|
|
1,867,128
|
|
Gross
profit
|
63,130
|
|
|
109,664
|
|
Operating,
administrative and general expenses
|
105,060
|
|
|
113,349
|
|
Interest
expense
|
15,587
|
|
|
15,910
|
|
Other
income:
|
|
|
|
Equity in
earnings of affiliates
|
129
|
|
|
1,519
|
|
Other income
(loss), net
|
4,813
|
|
|
(1,514)
|
|
Loss before income
taxes
|
(52,575)
|
|
|
(19,590)
|
|
Income tax
benefit
|
(1,464)
|
|
|
(5,442)
|
|
Net loss
|
(51,111)
|
|
|
(14,148)
|
|
Net loss
attributable to the noncontrolling interests
|
(13,449)
|
|
|
(155)
|
|
Net loss attributable
to The Andersons, Inc.
|
$
|
(37,662)
|
|
|
$
|
(13,993)
|
|
|
|
|
|
Per common
share:
|
|
|
|
Basic loss
attributable to The Andersons, Inc. common shareholders
|
$
|
(1.15)
|
|
|
$
|
(0.43)
|
|
Diluted loss
attributable to The Andersons, Inc. common shareholders
|
$
|
(1.15)
|
|
|
$
|
(0.43)
|
|
The Andersons,
Inc. Reconciliation to Adjusted Net Income
(unaudited)
|
|
(in thousands, except
per share data)
|
Three months
ended
March 31,
|
|
2020
|
|
2019
|
Net loss attributable
to The Andersons, Inc.
|
(37,662)
|
|
|
(13,993)
|
|
Items adjusted for
certain gains and charges:
|
|
|
|
Acquisition
costs
|
—
|
|
|
4,642
|
|
Transaction related
stock compensation
|
1,331
|
|
|
3,416
|
|
Loss from
remeasurement of equity method investments
|
—
|
|
|
3,512
|
|
Income tax impact of
adjustments
|
(6,910)
|
|
|
(2,892)
|
|
Total
adjustments
|
(5,579)
|
|
|
8,678
|
|
Adjusted net loss
attributable to The Andersons, Inc.
|
$
|
(43,241)
|
|
|
$
|
(5,315)
|
|
|
|
|
|
Diluted loss
attributable to The Andersons, Inc. common shareholders
|
$
|
(1.15)
|
|
|
$
|
(0.43)
|
|
|
|
|
|
Impact on diluted
earnings (loss) per share
|
(0.17)
|
|
|
0.27
|
|
Adjusted diluted loss
per share
|
$
|
(1.32)
|
|
|
$
|
(0.16)
|
|
The Andersons,
Inc. Condensed Consolidated Balance Sheets
(unaudited)
|
|
(in
thousands)
|
March 31,
2020
|
|
December 31,
2019
|
|
March 31,
2019
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
19,693
|
|
|
$
|
54,895
|
|
|
$
|
29,991
|
|
Accounts
receivable, net
|
539,671
|
|
|
536,367
|
|
|
611,290
|
|
Inventories
|
1,028,076
|
|
|
1,170,536
|
|
|
1,026,465
|
|
Commodity
derivative assets - current
|
149,070
|
|
|
107,863
|
|
|
158,277
|
|
Other current
assets
|
85,372
|
|
|
75,681
|
|
|
60,586
|
|
Total current
assets
|
1,821,882
|
|
|
1,945,342
|
|
|
1,886,609
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
Goodwill
|
135,360
|
|
|
135,360
|
|
|
119,641
|
|
Other intangible
assets, net
|
167,398
|
|
|
175,312
|
|
|
206,572
|
|
Right of use assets,
net
|
62,182
|
|
|
76,401
|
|
|
85,766
|
|
Equity method
investments
|
22,910
|
|
|
23,857
|
|
|
121,781
|
|
Other assets,
net
|
24,305
|
|
|
21,753
|
|
|
30,449
|
|
Total Other
Assets
|
412,155
|
|
|
432,683
|
|
|
564,209
|
|
Rail Group assets
leased to others, net
|
597,069
|
|
|
584,298
|
|
|
537,629
|
|
Property, plant and
equipment, net
|
921,585
|
|
|
938,418
|
|
|
671,805
|
|
Total
assets
|
$
|
3,752,691
|
|
|
$
|
3,900,741
|
|
|
$
|
3,660,252
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
392,450
|
|
|
147,031
|
|
|
434,304
|
|
Trade and
other payables
|
553,416
|
|
|
873,081
|
|
|
590,258
|
|
Customer
prepayments and deferred revenue
|
121,148
|
|
|
133,585
|
|
|
148,345
|
|
Commodity
derivative liabilities – current
|
90,491
|
|
|
46,942
|
|
|
66,623
|
|
Current
maturities of long-term debt
|
80,758
|
|
|
62,899
|
|
|
55,160
|
|
Accrued
expenses and other current liabilities
|
147,225
|
|
|
176,381
|
|
|
151,648
|
|
Total current
liabilities
|
1,385,488
|
|
|
1,439,919
|
|
|
1,446,338
|
|
|
|
|
|
|
|
Long-term lease
liabilities
|
43,308
|
|
|
51,091
|
|
|
57,451
|
|
Long-term debt, less
current maturities
|
987,526
|
|
|
1,016,248
|
|
|
982,025
|
|
Deferred income
taxes
|
156,804
|
|
|
146,155
|
|
|
138,598
|
|
Other long-term
liabilities
|
65,703
|
|
|
51,673
|
|
|
37,554
|
|
Total
liabilities
|
2,638,829
|
|
|
2,705,086
|
|
|
2,661,966
|
|
Total
equity
|
1,113,862
|
|
|
1,195,655
|
|
|
998,286
|
|
Total liabilities and
equity
|
$
|
3,752,691
|
|
|
$
|
3,900,741
|
|
|
$
|
3,660,252
|
|
The Andersons,
Inc. Segment Data (unaudited)
|
|
(in
thousands)
|
Trade
|
|
Ethanol
|
|
Plant
Nutrient
|
|
Rail
|
|
Other
|
|
Total
|
Three months ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
1,378,040
|
|
|
$
|
313,039
|
|
|
$
|
124,913
|
|
|
$
|
37,113
|
|
|
$
|
—
|
|
|
$
|
1,853,105
|
|
Gross
profit
|
62,466
|
|
|
(29,399)
|
|
|
20,364
|
|
|
9,699
|
|
|
—
|
|
|
63,130
|
|
Equity in earnings
(losses) of affiliates
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
129
|
|
Other income (loss),
net
|
2,765
|
|
|
446
|
|
|
(30)
|
|
|
1,050
|
|
|
582
|
|
|
4,813
|
|
Income (loss) before
income taxes
|
(9,983)
|
|
|
(37,425)
|
|
|
(1,192)
|
|
|
1,007
|
|
|
(4,982)
|
|
|
(52,575)
|
|
Loss attributable to
the noncontrolling interests
|
—
|
|
|
(13,449)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,449)
|
|
Income (loss) before
income taxes attributable to The
Andersons, Inc. (a)
|
$
|
(9,983)
|
|
|
$
|
(23,976)
|
|
|
$
|
(1,192)
|
|
|
$
|
1,007
|
|
|
$
|
(4,982)
|
|
|
$
|
(39,126)
|
|
Adjustments to income
(loss) before income taxes (b)
|
1,331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,331
|
|
Adjusted income
(loss) before income taxes
attributable to The Andersons, Inc. (a)
|
$
|
(8,652)
|
|
|
$
|
(23,976)
|
|
|
$
|
(1,192)
|
|
|
$
|
1,007
|
|
|
$
|
(4,982)
|
|
|
$
|
(37,795)
|
|
Three months ended
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
external customers
|
$
|
1,537,686
|
|
|
$
|
269,166
|
|
|
$
|
128,525
|
|
|
$
|
41,415
|
|
|
$
|
—
|
|
|
$
|
1,976,792
|
|
Gross
profit
|
67,397
|
|
|
5,400
|
|
|
20,934
|
|
|
15,933
|
|
|
—
|
|
|
109,664
|
|
Equity in earnings
(losses) of affiliates
|
(131)
|
|
|
1,650
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,519
|
|
Other income (loss),
net
|
(2,990)
|
|
|
84
|
|
|
567
|
|
|
209
|
|
|
616
|
|
|
(1,514)
|
|
Income (loss) before
income taxes
|
(17,903)
|
|
|
2,856
|
|
|
(3,929)
|
|
|
4,312
|
|
|
(4,926)
|
|
|
(19,590)
|
|
Loss attributable to
the noncontrolling interests
|
—
|
|
|
(155)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(155)
|
|
Income (loss) before
income taxes attributable to The
Andersons, Inc. (a)
|
$
|
(17,903)
|
|
|
$
|
3,011
|
|
|
$
|
(3,929)
|
|
|
$
|
4,312
|
|
|
$
|
(4,926)
|
|
|
$
|
(19,435)
|
|
Adjustments to income
(loss) before income taxes (b)
|
11,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,570
|
|
Adjusted income
(loss) before income taxes
attributable to The Andersons, Inc. (a)
|
$
|
(6,333)
|
|
|
$
|
3,011
|
|
|
$
|
(3,929)
|
|
|
$
|
4,312
|
|
|
$
|
(4,926)
|
|
|
$
|
(7,865)
|
|
|
(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
March 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(9,983)
|
|
|
$
|
(37,425)
|
|
|
$
|
(1,192)
|
|
|
$
|
1,007
|
|
|
$
|
(3,518)
|
|
|
$
|
(51,111)
|
|
Interest
expense
|
7,188
|
|
|
2,357
|
|
|
1,785
|
|
|
4,483
|
|
|
(226)
|
|
|
15,587
|
|
Tax provision
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,464)
|
|
|
(1,464)
|
|
Depreciation and
amortization
|
11,344
|
|
|
17,551
|
|
|
6,341
|
|
|
8,919
|
|
|
2,743
|
|
|
46,898
|
|
Earnings before
interest, taxes, depreciation and amortization
(EBITDA)
|
8,549
|
|
|
(17,517)
|
|
|
6,934
|
|
|
14,409
|
|
|
(2,465)
|
|
|
9,910
|
|
EBITDA attributable
to non-controlling interests
|
—
|
|
|
(3,475)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,475)
|
|
EBITDA attributable
to The Andersons, Inc.
|
8,549
|
|
|
(14,042)
|
|
|
6,934
|
|
|
14,409
|
|
|
(2,465)
|
|
|
13,385
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Transaction related
stock compensation
|
1,331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,331
|
|
Total adjusting
items
|
1,331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,331
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
9,880
|
|
|
$
|
(14,042)
|
|
|
$
|
6,934
|
|
|
$
|
14,409
|
|
|
$
|
(2,465)
|
|
|
$
|
14,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(17,903)
|
|
|
$
|
2,856
|
|
|
$
|
(3,929)
|
|
|
$
|
4,312
|
|
|
$
|
516
|
|
|
$
|
(14,148)
|
|
Interest
expense
|
10,804
|
|
|
(712)
|
|
|
2,261
|
|
|
3,679
|
|
|
(122)
|
|
|
15,910
|
|
Tax provision
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,442)
|
|
|
(5,442)
|
|
Depreciation and
amortization
|
14,200
|
|
|
1,790
|
|
|
6,662
|
|
|
8,196
|
|
|
2,912
|
|
|
33,760
|
|
Earnings before
interest, taxes, depreciation and amortization
(EBITDA)
|
7,101
|
|
|
3,934
|
|
|
4,994
|
|
|
16,187
|
|
|
(2,136)
|
|
|
30,080
|
|
EBITDA attributable
to non-controlling interests
|
—
|
|
|
(151)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(151)
|
|
EBITDA attributable
to The Andersons, Inc.
|
7,101
|
|
|
4,085
|
|
|
4,994
|
|
|
16,187
|
|
|
(2,136)
|
|
|
30,231
|
|
Adjusting items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
costs
|
4,642
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,642
|
|
Transaction related
stock compensation
|
3,416
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,416
|
|
Loss from
remeasurement of equity method investment
|
3,512
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,512
|
|
Total adjusting
items
|
11,570
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,570
|
|
Adjusted EBITDA
attributable to The Andersons, Inc.
|
$
|
18,671
|
|
|
$
|
4,085
|
|
|
$
|
4,994
|
|
|
$
|
16,187
|
|
|
$
|
(2,136)
|
|
|
$
|
41,801
|
|
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SOURCE The Andersons, Inc.