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The Andersons, Inc. reports Q2 net income of $36M, $1.05 per share; adjusted income reaches $39M, EBITDA at $98M, Renewables show strong performance with $39M pretax income

August 6, 2024 (press release) –

MAUMEE, Ohio, Aug. 6, 2024 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the second quarter ended June 30, 2024.

 

Second Quarter Highlights:

  • Company reported net income attributable to The Andersons of $36 million, or $1.05 per diluted share and adjusted net income of $39 million, or $1.15 per diluted share
  • Adjusted EBITDA was $98 million for the quarter
  • Renewables reported pretax income of $39 million and adjusted pretax income attributable to The Andersons of $23 million on strong operating performance and ethanol margins
  • Trade generated increased pretax income of $5 million and adjusted pretax income of $9 million
  • Nutrient & Industrial delivers pretax income of $23 million

"Overall, our second quarter results were consistent with our expectations given the shift in ag markets over the past several months. Renewables had a very solid quarter with increased ethanol production and higher margins but didn't match last year's results on declining co-product values. Trade results were slightly improved from last year despite lower prices and volatility. With the majority of fertilizer applications occurring in the second quarter, Nutrient & Industrial had solid results although well behind last year's outsized performance given weather-related delays and lower margins," said Chairman and CEO Pat Bowe. "Farmer selling remains relatively quiet with adequate supply in this low-price commodity environment. We are seeing the benefits of our portfolio mix with grain assets and our growing premium ingredients business helping to offset a reduction in merchandising opportunities."

"We actively pursue opportunities for growth. In early June, we announced plans to acquire an ownership interest in Skyland Grain LLC, which holds a large grain and agronomy footprint spread across Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles. We are devoting significant resources to this opportunity and expect to provide an update later in the third quarter," continued Bowe. "Our longer-term Renewables projects are moving forward, and we are focused on lowering the carbon intensity of our ethanol plants. We continue to manage a robust pipeline with meaningful growth opportunities in each of our businesses."

$ in millions, except per share amounts      





Q2 2024

Q2 2023

Variance

YTD 2024

YTD 2023

Variance

Pretax Income

$         57.3

$       104.4

$       (47.1)

$         71.3

$         39.4

$         31.9

Pretax Income Attributable to the Company 1

40.9

76.8

(35.9)

47.7

56.1

(8.4)

Adjusted Pretax Income Attributable to the Company 1

44.9

72.5

(27.6)

51.5

80.6

(29.1)

     Trade1

9.5

7.2

2.3

18.2

30.9

(12.7)

     Renewables1

22.7

32.4

(9.7)

35.3

38.7

(3.4)

     Nutrient & Industrial

23.4

42.6

(19.2)

21.6

32.1

(10.5)

     Other

(10.7)

(9.7)

(1.0)

(23.6)

(21.2)

(2.4)

Net Income Attributable to the Company

36.0

55.0

(19.0)

41.6

40.3

1.3

Adjusted Net Income Attributable to the Company 1

39.5

51.8

(12.3)

45.1

58.6

(13.5)

Diluted Earnings Per Share ("EPS")

1.05

1.61

(0.56)

1.21

1.18

0.03

Adjusted EPS1

1.15

1.52

(0.37)

1.31

1.72

(0.41)

EBITDA1

94.2

148.7

(54.5)

145.7

132.6

13.1

Adjusted EBITDA from Continuing Operations

$         98.3

$       144.4

$       (46.1)

$       149.4

$       199.7

$       (50.3)

1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

Cash, Liquidity, and Long-Term Debt Management

"Our businesses generate consistent cash flows and we've continued to reduce debt," said Executive Vice President and CFO Brian Valentine. "With the strong cash flows and lower commodity prices, we continue to show a higher-than-normal cash position at this point in the year. We remain well below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet. We expect to invest in additional growth projects utilizing a disciplined approach to ensure that projects align with our stated strategy and meet appropriate financial hurdles."

The company generated cash from operating activities of $304 million and $541 million in the second quarter of 2024 and 2023, respectively. Cash from operations before working capital changes in the same periods was $89 million and $118 million, respectively. Cash spent on capital projects in the quarter totaled $29 million, a $21 million decrease from 2023. We do have several larger projects planned for the last half of the year.

Second Quarter Segment Overview

Trade Results Resilient in Less Volatile Markets

The Trade segment recorded pretax income of $5 million and adjusted pretax income of $9 million for the quarter compared to pretax income of $5 million and adjusted pretax income of $7 million in the second quarter of 2023.

Results from our grain asset footprint were better than the prior year, due to improved wheat storage income in the eastern grain belt. Trade's growing premium food and feed ingredients business also showed year-over-year improvement, driven by the addition of ACJ International, acquired in July 2023, and other recent growth capital investments. The merchandising business remained profitable but below 2023. Commodity markets are currently well-supplied with limited volatility. Farmer engagement remains slow due to overall market prices. While these carry markets benefit our assets, reduced volatility and lower prices limit opportunities for the merchandising business.

Our portfolio mix of assets, ingredients, and merchandising businesses provide a solid foundation for us to benefit from large crops and carry markets, as well as tight, demand-driven markets. Our assets are well-positioned for the grains to flow in due course. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.

Trade's second quarter adjusted EBITDA was $24 million, compared to second quarter 2023 adjusted EBITDA of $27 million.

Renewables Reported Strong Quarter on Record Production and Favorable Ethanol Margins

The Renewables segment reported pretax income of $39 million and adjusted pretax income attributable to the company of $23 million in the second quarter. For the same period in 2023, the segment reported a pretax income of $67 million and adjusted pretax income attributable to the company of $32 million.

Margins on ethanol production improved year-over-year on lower corn basis in the east. Production facilities continued to operate efficiently in the quarter with increased volume and higher ethanol yields. Plant co-product values, particularly feed ingredients, were lower with feed ingredients following the overall price reduction of corn; however, feed ingredient demand improved year-over-year. Renewable diesel feedstock volumes continue to grow albeit with compressed margins on industry fundamentals. With a continued strong export environment, the ethanol margin environment should remain favorable.

Renewables had second quarter EBITDA of $52 million in 2024, compared to 2023 second quarter adjusted EBITDA of $74 million.

Nutrient & Industrial Ag Businesses Decline on Lower Prices and Delayed Application Season

The Nutrient & Industrial segment reported pretax income of $23 million, compared to a very strong 2023 second quarter pretax income of $43 million. Volumes were negatively impacted by a late and wet spring application season in our market areas and declining nutrient prices did not provide outsized margin opportunities we've seen in prior years. Also impacting the year-over-year comparison was a 2023 second quarter that had a significant shift of income from Q1 into Q2. The engineered granules business saw improvement in the quarter on higher sales volume. Looking forward, second half agronomy sales and applications are dependent on the timing of harvest and grower's overall profitability.

Nutrient & Industrial's second quarter EBITDA was $32 million compared to 2023 second quarter EBITDA of $52 million.

Income Taxes; Corporate

The company recorded income tax expense at an effective rate of 9% for the quarter. This rate was impacted by the tax treatment of non-controlling interests, reversals of uncertain tax positions relating to research and development and other tax credits. We currently anticipate a full-year adjusted effective rate of approximately 14% - 18%.

Conference Call

The company will host a webcast on Wednesday, August 7, 2024, at 11 a.m. Eastern Time, to discuss its performance and provide its outlook for the remainder of 2024. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 8135247). 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/JnmRj0k6l9G and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com

Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

Non-GAAP Measures

This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.

Company Description

The Andersons, Inc., named for 2024 to Forbes list of America's Most Successful Small Companies, Newsweek's list of America's Most Responsible Companies, and one of The Americas' Fastest Growing Companies by the Financial Times, 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 June 30,


Six months ended June 30,

(in thousands, except per share data)

2024


2023


2024


2023

Sales and merchandising revenues

$  2,795,205


$  4,020,183


$  5,513,422


$  7,901,421

Cost of sales and merchandising revenues

2,619,834


3,798,246


5,209,731


7,531,473

Gross profit

175,371


221,937


303,691


369,948

Operating, administrative and general expenses

116,614


116,007


235,972


233,242

Asset impairment




87,156

Interest expense, net

6,611


13,953


13,133


30,578

Other income, net

5,200


12,441


16,728


20,445

Income before income taxes

57,346


104,418


71,314


39,417

Income tax provision

4,876


21,732


6,179


15,848

Net income

52,470


82,686


65,135


23,569

Net income (loss) attributable to noncontrolling interests

16,494


27,640


23,578


(16,727)

Net income attributable to The Andersons, Inc.

$     35,976


$     55,046


$     41,557


$    40,296









Earnings per share attributable to The Andersons, Inc. common shareholders:








Basic earnings:

$          1.06


$          1.63


$          1.22


$         1.20

Diluted earnings:

$          1.05


$          1.61


$          1.21


$         1.18

 

The Andersons, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 


(in thousands)

June 30, 2024


December 31, 2023


June 30, 2023

Assets






Current assets:






  Cash and cash equivalents

$                     530,386


$                    643,854


$                      96,293

  Accounts receivable, net

743,550


762,549


1,030,271

  Inventories

686,540


1,166,700


990,789

  Commodity derivative assets – current

180,189


178,083


347,684

  Other current assets

108,634


55,777


72,228

Total current assets

2,249,299


2,806,963


2,537,265

Property, plant and equipment, net

694,136


693,365


663,441

Other assets, net

356,378


354,679


369,340

Total assets

$                  3,299,813


$                 3,855,007


$                 3,570,046







Liabilities and equity






Current liabilities:






  Short-term debt

$                         4,021


$                      43,106


$                    102,752

  Trade and other payables

607,083


1,055,473


641,376

  Customer prepayments and deferred revenue

124,424


187,054


189,947

  Commodity derivative liabilities – current

128,847


90,849


251,101

  Current maturities of long-term debt

27,671


27,561


27,511

  Accrued expenses and other current liabilities

192,683


232,288


180,552

Total current liabilities

1,084,729


1,636,331


1,393,239

Long-term debt, less current maturities

549,378


562,960


576,489

Other long-term liabilities

145,444


139,329


161,836

Total liabilities

1,779,551


2,338,620


2,131,564

Total equity

1,520,262


1,516,387


1,438,482

Total liabilities and equity

$                  3,299,813


$                 3,855,007


$                 3,570,046

 

The Andersons, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)



Six months ended June 30,

 (in thousands)

2024


2023

Operating Activities




Net income

$               65,135


$               23,569

Adjustments to reconcile net income to cash provided by operating activities:




Depreciation and amortization

61,218


62,585

Asset impairment


87,156

Other

10,821


952

Changes in operating assets and liabilities:




Accounts receivable

15,284


207,867

Inventories

477,723


734,855

Commodity derivatives

36,010


102,753

Other current and non-current assets

(50,587)


(1,247)

Payables and other current and non-current liabilities

(550,797)


(1,011,086)

Net cash provided by operating activities

64,807


207,404

Investing Activities




Acquisition of businesses, net of cash acquired

(9,561)


Purchases of property, plant and equipment and capitalized software

(55,389)


(74,991)

Other

6,812


3,318

Net cash used in investing activities

(58,138)


(71,673)

Financing Activities




Net payments under short-term lines of credit

(37,705)


(173,384)

Proceeds from issuance of long-term debt


100,000

Payments of long-term debt

(13,752)


(35,861)

Distributions to noncontrolling interest owner

(47,405)


(24,344)

Dividends paid

(12,993)


(12,527)

Value of shares withheld for taxes

(8,071)


(6,616)

Other


(2,255)

Net cash used in financing activities

(119,926)


(154,987)

Effect of exchange rates on cash and cash equivalents

(211)


280

Decrease in cash and cash equivalents

(113,468)


(18,976)

Cash and cash equivalents at beginning of period

643,854


115,269

Cash and cash equivalents at end of period

$             530,386


$               96,293

 

The Andersons, Inc.

Adjusted Net Income Attributable to The Andersons, Inc.

A non-GAAP financial measure

(unaudited)



Three months ended June 30,


Six months ended June 30,

(in thousands, except per share data)

2024


2023


2024


2023

Net income

$   52,470


$   82,686


$   65,135


$   23,569

Net income (loss) attributable to noncontrolling interests

16,494


27,640


23,578


(16,727)

Net income attributable to The Andersons, Inc.

35,976


55,046


41,557


40,296

Adjustments:








Transaction related compensation

4,049


939


6,900


2,607

Gain on deconsolidation of joint venture


(6,544)


(3,117)


(6,544)

Insured inventory expenses (recoveries)


1,310



(16,080)

Asset impairment




44,450

Income tax impact of adjustments1

(531)


1,074


(252)


(6,108)

Total adjusting items, net of tax

3,518


(3,221)


3,531


18,325

Adjusted net income attributable to The Andersons, Inc. 

$   39,494


$   51,825


$   45,088


$   58,621









Diluted earnings per share attributable to The Andersons, Inc. common shareholders

$        1.05


$        1.61


$       1.21


$        1.18









Impact on diluted earnings (loss) per share

$        0.10


$      (0.09)


$       0.10


$        0.54

Adjusted diluted earnings per share

$        1.15


$        1.52


$       1.31


$        1.72









1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of certain transaction related compensation in both 2024 and 2023, respectively.


Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings per share attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item.

 

The Andersons, Inc.

Segment Data

(unaudited)

 


(in thousands)

Trade


Renewables


Nutrient &
Industrial


Other


Total

Three months ended June 30, 2024










Sales and merchandising revenues

$  1,757,741


$       686,127


$        351,337


$              —


$  2,795,205

Gross profit

79,648


46,727


48,996



175,371

Operating, administrative and general expenses

72,803


7,756


25,393


10,662


116,614

Other income (loss), net

4,033


1,176


509


(518)


5,200

Income (loss) before income taxes

5,424


39,200


23,419


(10,697)


57,346

Income attributable to noncontrolling interests


16,494




16,494

Income (loss) before income taxes attributable to The Andersons, Inc.1

$         5,424


$         22,706


$          23,419


$     (10,697)


$       40,852

Adjustments to income (loss) before income taxes2

4,049





4,049

Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1

$         9,473


$         22,706


$          23,419


$     (10,697)


$       44,901











Three months ended June 30, 2023










Sales and merchandising revenues

$  2,696,810


$       877,781


$        445,592


$              —


$  4,020,183

Gross profit

80,711


68,292


72,934



221,937

Operating, administrative and general expenses

69,146


7,568


28,886


10,407


116,007

Other income, net

4,328


7,468


500


145


12,441

Income (loss) before income taxes

4,990


66,604


42,565


(9,741)


104,418

Income attributable to noncontrolling interests


27,640




27,640

Income (loss) before income taxes attributable to The Andersons, Inc.1

$         4,990


$         38,964


$          42,565


$       (9,741)


$       76,778

Adjustments to income (loss) before income taxes2

2,249


(6,544)




(4,295)

Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1

$         7,239


$         32,420


$          42,565


$       (9,741)


$       72,483


1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.

2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.

 

The Andersons, Inc.

Segment Data

(unaudited)












(in thousands)

Trade


Renewables


Nutrient &
Industrial


Other


Total

Six months ended June 30, 2024










Sales and merchandising revenues

$  3,651,600


$    1,343,166


$         518,656


$           —


$  5,513,422

Gross profit

157,930


73,297


72,464



303,691

Operating, administrative and general expenses

145,061


15,753


50,836


24,322


235,972

Other income (loss), net

9,566


5,926


1,557


(321)


16,728

Income (loss) before income taxes

11,348


61,991


21,569


(23,594)


71,314

Income attributable to noncontrolling interests


23,578




23,578

Income (loss) before income taxes attributable to The Andersons, Inc.1

$       11,348


$         38,413


$           21,569


$  (23,594)


$       47,736

Adjustments to income (loss) before income taxes2

6,900


(3,117)




3,783

Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1

$       18,248


$         35,296


$           21,569


$  (23,594)


$       51,519











Six months ended June 30, 2023










Sales and merchandising revenues

$  5,574,590


$    1,717,297


$         609,534


$           —


$  7,901,421

Gross profit

197,889


84,095


87,964



369,948

Operating, administrative and general expenses

141,126


16,472


53,018


22,626


233,242

Other income, net

10,311


8,309


1,346


479


20,445

Income (loss) before income taxes

44,354


(15,909)


32,127


(21,155)


39,417

Loss attributable to noncontrolling interests


(16,727)




(16,727)

Income (loss) before income taxes attributable to The Andersons, Inc.1

$       44,354


$              818


$           32,127


$  (21,155)


$       56,144

Adjustments to income (loss) before income taxes2

(13,473)


37,906




24,433

Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1

$       30,881


$         38,724


$           32,127


$  (21,155)


$       80,577


1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.

2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of a $42.7 million difference in the Renewables segment which represents the asset impairment expense attributable to the non-controlling interest that is reflected 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)

 


(in thousands)

Trade


Renewables


Nutrient &
Industrial


 Other


 Total

Three months ended June 30, 2024










Net income (loss)

$           5,424


$         39,200


$         23,419


$       (15,573)


$         52,470

Interest expense (income)

5,454


947


693


(483)


6,611

Tax provision




4,876


4,876

Depreciation and amortization

9,314


11,719


7,965


1,271


30,269

EBITDA

20,192


51,866


32,077


(9,909)


94,226

Adjusting items impacting EBITDA:










Transaction related compensation

4,049





4,049

Total adjusting items

4,049





4,049

Adjusted EBITDA

$         24,241


$         51,866


$         32,077


$         (9,909)


$         98,275











Three months ended June 30, 2023










Net income (loss)

$           4,990


$         66,604


$         42,565


$       (31,473)


$         82,686

Interest expense (income)

10,903


1,588


1,983


(521)


13,953

Tax provision




21,732


21,732

Depreciation and amortization

8,683


12,425


7,097


2,160


30,365

EBITDA

24,576


80,617


51,645


(8,102)


148,736

Adjusting items impacting EBITDA:










Transaction related compensation

939





939

Insured inventory recoveries

1,310





1,310

Gain on deconsolidation of joint venture


(6,544)




(6,544)

Total adjusting items

2,249


(6,544)




(4,295)

Adjusted EBITDA

$         26,825


$         74,073


$         51,645


$         (8,102)


$       144,441


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

Six months ended June 30, 2024










Net income (loss)

$         11,348


$         61,991


$         21,569


$       (29,773)


$         65,135

Interest expense (income)

11,087


1,479


1,616


(1,049)


13,133

Tax provision




6,179


6,179

Depreciation and amortization

18,569


23,684


15,758


3,207


61,218

EBITDA

41,004


87,154


38,943


(21,436)


145,665

Adjusting items impacting EBITDA:










Transaction related compensation

6,900





6,900

Gain on deconsolidation of joint venture


(3,117)




(3,117)

Total adjusting items

6,900


(3,117)




3,783

Adjusted EBITDA

$         47,904


$         84,037


$         38,943


$       (21,436)


$       149,448











Six months ended June 30, 2023










Net income (loss)

$         44,354


$       (15,909)


$         32,127


$       (37,003)


$         23,569

Interest expense (income)

22,720


4,685


4,165


(992)


30,578

Tax provision




15,848


15,848

Depreciation and amortization

17,328


26,896


14,054


4,307


62,585

EBITDA

84,402


15,672


50,346


(17,840)


132,580

Adjusting items impacting EBITDA:










Transaction related compensation

2,607





2,607

Insured inventory recoveries

(16,080)





(16,080)

Gain on deconsolidation of joint venture


(6,544)




(6,544)

Asset impairment


87,156




87,156

Total adjusting items

(13,473)


80,612




67,139

Adjusted EBITDA

$         70,929


$         96,284


$         50,346


$       (17,840)


$       199,719


Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure.

 

The Andersons, Inc.

Trailing Twelve Months of EBITDA and Adjusted EBITDA

A non-GAAP financial measure

(unaudited)



Three Months Ended,


 Twelve months ended
June 30, 2024

(in thousands)

September 30,
2023


December 31,
2023


March 31,
2024


June 30,
2024


Net income

$         30,523


$         78,437


$         12,665


$         52,470


$                         174,095

Interest expense

8,188


8,101


6,522


6,611


29,422

Tax provision

7,862


13,324


1,303


4,876


27,365

Depreciation and amortization

31,215


31,306


30,949


30,269


123,739

EBITDA

77,788


131,168


51,439


94,226


354,621

Adjusting items impacting EBITDA:










Transaction related compensation

1,999


3,212


2,852


4,049


12,112

Gain on sale of assets

(5,643)





(5,643)

Gain on cost method investment

(4,798)





(4,798)

Impairment on equity method investments

963





963

Gain on deconsolidation of joint venture



(3,117)



(3,117)

Goodwill impairment


686




686

Total adjusting items

(7,479)


3,898


(265)


4,049


203

Adjusted EBITDA

$         70,309


$       135,066


$         51,174


$         98,275


$                         354,824












Three Months Ended,


Twelve months ended
June 30, 2023


September 30,
2022


December 31,
2022


March 31,
2023


June 30,
2023


Net income (loss)

$         24,880


$         21,170


$       (59,117)


$         82,686


$                           69,619

Interest expense

14,982


14,087


16,625


13,953


59,647

Tax provision (benefit)

9,839


9,933


(5,884)


21,732


35,620

Depreciation and amortization

33,322


33,476


32,220


30,365


129,383

EBITDA

83,023


78,666


(16,156)


148,736


294,269

Adjusting items impacting EBITDA:










Insured inventory expenses (recoveries)


15,993


(17,390)


1,310


(87)

Transaction related compensation



1,668


939


2,607

Asset impairment


9,000


87,156



96,156

Gain on deconsolidation of joint venture




(6,544)


(6,544)

Total adjusting items


24,993


71,434


(4,295)


92,132

Adjusted EBITDA

$         83,023


$       103,659


$         55,278


$       144,441


$                         386,401











 

The Andersons, Inc.

Cash from Operations Before Working Capital Changes

A non-GAAP financial measure

(unaudited)



Three months ended June 30,


Six months ended June 30,

(in thousands)

2024


2023


2024


2023

Cash provided by operating activities

$           304,434


$           540,939


$         64,807


$       207,404

Changes in operating assets and liabilities








Accounts receivable

(42,441)


82,754


15,284


207,867

Inventories

308,640


556,845


477,723


734,855

Commodity derivatives

64,508


19,605


36,010


102,753

Other current and non-current assets

(52,510)


16,296


(50,587)


(1,247)

Payables and other current and non-current liabilities

(62,528)


(250,794)


(550,797)


(1,011,086)

Total changes in operating assets and liabilities

215,669


424,706


(72,367)


33,142

Adjusting items impacting cash from operations before working capital changes:








Less: Insured inventory expenses (recoveries)


1,310



(16,080)

Cash from operations before working capital changes

$             88,765


$           117,543


$       137,174


$       158,182


Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.

SOURCE The Andersons, Inc.

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