The Andersons, Inc. Reports Fourth Quarter and Full Year Results
MAUMEE, Ohio, Feb. 18, 2025 /PRNewswire/ -- The Andersons, Inc. (NASDAQ:ANDE) announces financial results for the fourth quarter ended December 31, 2024.
Financial Highlights:
- Full year net income attributable to The Andersons of $114 million, or $3.32 per diluted share, and $117 million, or $3.40 per diluted share, on an adjusted basis
- Fourth quarter net income attributable to The Andersons of $45 million, or $1.31 per diluted share, and $47 million, or $1.36 per diluted share, on an adjusted basis
- Adjusted EBITDA of $363 million for the year, and $117 million for the fourth quarter
- Trade reported record fourth quarter pretax income of $54 million on solid operations
- Renewables reported pretax income of $25 million and pretax income attributable to the company of $16 million on efficient plant performance and solid merchandising
- Strong balance sheet; healthy cash flows result in a cash balance of $562 million
"Trade had an excellent fourth quarter, with an early harvest, where we were able to accumulate higher-than-normal quality grain at good basis values. We also saw some improved merchandising opportunities and good results in our premium ingredients business. We are integrating Skyland Grain, LLC locations into our trade flows and this report includes two months of results from that recent investment. Renewables also had a very solid quarter but could not duplicate 2023 despite record ethanol production due to lower ethanol prices and co-product values. In Nutrient & Industrial, we had year-over-year improvement led by our manufactured product lines that helped offset soft ag supply chain results due to limited farmer engagement," said President and CEO Bill Krueger. "In these changing ag markets, I'm proud of our team."
"Looking forward, we see continued regulatory and geopolitical uncertainties coupled with potentially challenging agricultural economics. We also see signs of opportunity. We currently expect a significant increase in planted corn acres and continuing strong ethanol exports. Our mix of North American agribusiness and ethanol production assets along with our strength in merchandising, positions us well to withstand downward pressures from these market shifts," added Krueger. "In addition to the recent Skyland Grain investment, we are making progress on several longer-term capital investments that will enhance future results. We also continue to actively pursue growth in the Renewables space, both by lowering the carbon intensity of our ethanol plants as well as evaluating expansion and acquisition opportunities. In December, we announced some changes to improve the alignment of our commercial teams to serve our customers even better, gain operational efficiencies, and continue to drive growth. We are excited about the new Agribusiness and Renewables teams and are working hard to achieve our growth strategy."
$ in millions, except per share amounts | ||||||
Q4 2024 | Q4 2023 | Variance | YTD 2024 | YTD 2023 | Variance | |
Pretax Income | $ 67.3 | $ 91.8 | $ (24.5) | $ 200.8 | $ 169.6 | $ 31.2 |
Pretax Income Attributable to the Company1 | 58.2 | 64.5 | (6.3) | 144.1 | 138.2 | 5.9 |
Adjusted Pretax Income (Loss) Attributable to the Company1 | 60.6 | 68.4 | (7.8) | 146.7 | 159.1 | (12.4) |
Trade1 | 53.6 | 47.0 | 6.6 | 94.6 | 83.3 | 11.3 |
Renewables1 | 16.0 | 32.7 | (16.7) | 79.8 | 97.7 | (17.9) |
Nutrient & Industrial1 | 3.5 | 2.1 | 1.4 | 18.9 | 25.7 | (6.8) |
Other1 | (12.5) | (13.4) | 0.9 | (46.6) | (47.7) | 1.1 |
Net Income Attributable to the Company | 45.1 | 51.2 | (6.1) | 114.0 | 101.2 | 12.8 |
Adjusted Net Income Attributable to the Company1 | 46.9 | 54.6 | (7.7) | 116.7 | 118.3 | (1.6) |
Diluted Earnings Per Share (EPS) | 1.31 | 1.49 | (0.18) | 3.32 | 2.94 | 0.38 |
Adjusted EPS1 | 1.36 | 1.59 | (0.23) | 3.40 | 3.44 | (0.04) |
EBITDA1 | 113.7 | 131.2 | (17.5) | 360.3 | 341.5 | 18.8 |
Adjusted EBITDA1 | $ 116.5 | $ 135.1 | $ (18.6) | $ 363.4 | $ 405.1 | $ (41.7) |
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. |
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continued to generate solid operating cash flows into the fourth quarter. Our cash flows and lower commodity prices resulted in a cash position of more than $560 million at the end of the year. In addition, our debt remains at a modest level, inclusive of debt acquired as part of the Skyland Grain investment," said Executive Vice President and CFO Brian Valentine. "Our long-term debt to adjusted EBITDA ratio of 1.8 times is still well below our stated target of 2.5 times. We were pleased to be able to deploy more capital during the quarter and anticipate increased spending on some of the previously announced growth projects in 2025."
The company generated $269 million and $251 million in cash from operating activities for the fourth quarters of 2024 and 2023, respectively, and generated $100 million and $122 million in cash from operations before working capital changes for the same periods, respectively.
For the full years of 2024 and 2023, the company generated $332 million and $947 million in cash from operating activities, respectively. Cash from operations before working capital changes for the same years was $323 million and $330 million even with the changing ag markets.
Fourth Quarter Segment Overview
Trade Posts Record Fourth Quarter Driven by Solid Operations
Trade recorded pretax income and adjusted pretax income attributable to the company of $54 million for the quarter, compared to pretax income of $44 million and adjusted pretax income of $47 million in the fourth quarter of the prior year.
Solid elevation margins and space income in core grain assets on an early and robust harvest drove results. The merchandising businesses realized improvements over the prior year, despite limited volatility in the grain markets. The premium ingredients business had another consistent and profitable quarter.
The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to benefit from large crops and carry markets, as well as tight, demand-driven markets. With a lower-than-expected corn carryout at the end of the year, an inverse has returned to the corn markets, which could result in an increase in corn acres planted and increased volatility in 2025. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.
Trade's fourth quarter adjusted EBITDA was $76 million, compared to fourth quarter 2023 adjusted EBITDA of $62 million. For the full year, adjusted EBITDA was $161 million in 2024, compared to $155 million in 2023.
Renewables Reports Solid Quarter on Efficient Operations
The Renewables segment reported pretax income of $25 million and pretax income attributable to the company of $16 million in the fourth quarter compared to pretax income of $60 million and pretax income attributable to the company of $33 million in the fourth quarter of 2023.
Fourth quarter results were down from a prior year record, as ethanol board crush margins were down $0.16/gallon and co-product values traded lower on reduced corn prices and weaker corn oil values. Partially offsetting these headwinds, the four ethanol plants continued to run efficiently, with record fourth quarter production, and reduced input cost, including lower corn basis of $0.09/gallon year-over-year. Third-party ethanol merchandising also saw improved profitability in 2024.
While spot ethanol crush margins are generally seasonally soft in the first quarter, a portion of first quarter volumes have been hedged at favorable levels. While there remains regulatory uncertainty, elevated export demand, upcoming planned maintenance in the industry, and the spring driving rebound should all support improved plant economics. Co-product values may also see improvement as there has been a recent rebound in corn values.
Renewables recorded EBITDA of $40 million in the fourth quarter of 2024, compared to 2023 fourth quarter EBITDA of $73 million. For the full year, adjusted EBITDA was $189 million in 2024, compared to $230 million 2023.
Nutrient & Industrial Shows Improvement on Prior Year
Nutrient & Industrial recorded pretax income and pretax income attributable to the company of $3 million in the fourth quarter, an improvement from the prior year. The increased results are primarily due to improvements in manufactured products and one-time prior year expenses that did not repeat. Core agriculture product lines were down year-over-year on softer industry fundamentals. With high yields during harvest pulling more nutrients from the soil and an expected increase in corn acres planted, there may be an opportunity for increased volume in 2025.
Nutrient & Industrial's current quarter EBITDA was $13 million, compared to adjusted EBITDA of $11 million in 2023. For the full year, Nutrient & Industrial recorded EBITDA of $57 million in 2024, compared to adjusted EBITDA of $62 million in 2023.
Income Taxes
The company recorded income tax expense at an effective rate of 20% for the fourth quarter and 15% for the year. This rate was impacted by the tax treatment of noncontrolling interests and federal tax credits; a significant portion are biofuel tax credits related to the production of cellulosic ethanol.
Conference Call
The company will host a webcast on Wednesday, February 19, 2025, at 8:30 a.m. ET, to discuss its performance and provide its outlook for 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (international toll) and use elite entry number: 3381023. 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/k56MoWjneK8 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 in 2024 as one of The Americas' Fastest Growing Companies by the Financial Times and one of America's Climate Leaders by USA Today, is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables 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 | Twelve months ended | ||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Sales and merchandising revenues | $ 3,123,138 | $ 3,213,000 | $ 11,257,548 | $ 14,750,112 | |||
Cost of sales and merchandising revenues | 2,910,028 | 2,995,286 | 10,563,622 | 14,004,749 | |||
Gross profit | 213,110 | 217,714 | 693,926 | 745,363 | |||
Operating, administrative and general expenses | 147,154 | 132,712 | 503,620 | 492,260 | |||
Asset impairment | — | — | — | 87,156 | |||
Interest expense, net | 10,266 | 8,101 | 31,760 | 46,867 | |||
Other income, net | 11,560 | 14,860 | 42,211 | 50,483 | |||
Income before income taxes | 67,250 | 91,761 | 200,757 | 169,563 | |||
Income tax provision | 13,146 | 13,324 | 30,057 | 37,034 | |||
Net income | 54,104 | 78,437 | 170,700 | 132,529 | |||
Net income attributable to noncontrolling interests | 9,014 | 27,251 | 56,688 | 31,339 | |||
Net income attributable to The Andersons, Inc. | $ 45,090 | $ 51,186 | $ 114,012 | $ 101,190 | |||
Earnings per share attributable to The Andersons, Inc. common shareholders: | |||||||
Basic earnings: | $ 1.32 | $ 1.52 | $ 3.35 | $ 3.00 | |||
Diluted earnings: | $ 1.31 | $ 1.49 | $ 3.32 | $ 2.94 | |||
The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited)
| |||
(in thousands) | December 31, 2024 | December 31, 2023 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 561,771 | $ 643,854 | |
Accounts receivable, net | 764,550 | 762,549 | |
Inventories | 1,286,811 | 1,166,700 | |
Commodity derivative assets – current | 148,801 | 178,083 | |
Other current assets | 88,344 | 55,777 | |
Total current assets | 2,850,277 | 2,806,963 | |
Other assets: | |||
Goodwill | 127,856 | 127,856 | |
Other intangible assets, net | 69,345 | 85,579 | |
Right of use assets, net | 104,630 | 54,234 | |
Other assets, net | 101,055 | 87,010 | |
Total other assets | 402,886 | 354,679 | |
Property, plant and equipment, net | 868,151 | 693,365 | |
Total assets | $ 4,121,314 | $ 3,855,007 | |
Liabilities and equity | |||
Current liabilities: | |||
Short-term debt | $ 166,614 | $ 43,106 | |
Trade and other payables | 1,047,436 | 1,055,473 | |
Customer prepayments and deferred revenue | 194,025 | 187,054 | |
Commodity derivative liabilities – current | 59,766 | 90,849 | |
Current maturities of long-term debt | 36,139 | 27,561 | |
Accrued expenses and other current liabilities | 227,192 | 232,288 | |
Total current liabilities | 1,731,172 | 1,636,331 | |
Long-term lease liabilities | 65,312 | 31,659 | |
Long-term debt, less current maturities | 608,151 | 562,960 | |
Deferred income taxes | 55,005 | 58,581 | |
Other long-term liabilities | 61,838 | 49,089 | |
Total liabilities | 2,521,478 | 2,338,620 | |
Total equity | 1,599,836 | 1,516,387 | |
Total liabilities and equity | $ 4,121,314 | $ 3,855,007 | |
The Andersons, Inc. Consolidated Statements of Cash Flows (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Operating Activities | |||||||
Net income | $ 54,104 | $ 78,437 | $ 170,700 | $ 132,529 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 36,178 | 31,306 | 127,804 | 125,106 | |||
Bad debt expense, net | 6,138 | 5,438 | 17,637 | 11,519 | |||
Stock-based compensation expense | 3,611 | 3,493 | 13,629 | 12,857 | |||
Asset impairment | — | — | — | 87,156 | |||
Deferred federal income tax | (1,997) | 6,696 | (2,911) | (1,596) | |||
Other | 1,862 | (10,535) | (3,595) | (16,341) | |||
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed: | |||||||
Accounts and notes receivable | 32,279 | 62,705 | 35,777 | 468,968 | |||
Inventories | (191,041) | (175,883) | 87,906 | 572,235 | |||
Commodity derivatives | (34,322) | 12,027 | 15,005 | 111,506 | |||
Other current and non-current assets | 31,326 | 4,481 | (28,050) | 6,529 | |||
Payables and other current and non-current liabilities | 330,673 | 232,498 | (102,396) | (563,718) | |||
Net cash provided by operating activities | 268,811 | 250,663 | 331,506 | 946,750 | |||
Investing Activities | |||||||
Acquisition of businesses, net of cash acquired | (19,611) | (313) | (29,172) | (24,698) | |||
Purchases of property, plant and equipment and capitalized software | (55,957) | (41,725) | (149,187) | (150,443) | |||
Property insurance proceeds | 2,918 | 4,999 | 12,137 | 7,499 | |||
Proceeds from sale of business | — | — | — | 10,318 | |||
Proceeds from sale of Rail assets | — | — | — | 2,871 | |||
Other | 168 | 423 | 3,148 | 574 | |||
Net cash used in investing activities | (72,482) | (36,616) | (163,074) | (153,879) | |||
Financing Activities | |||||||
Net (payments) receipts under short-term lines of credit | (64,897) | 27,456 | (91,951) | (233,696) | |||
Proceeds from issuance of long-term debt | 67,000 | — | 67,000 | 100,000 | |||
Payments of long-term debt | (62,940) | (6,886) | (83,589) | (49,620) | |||
Distributions to noncontrolling interest owner | (14,970) | (2,114) | (102,295) | (46,418) | |||
Dividends paid | (6,807) | (6,602) | (26,273) | (25,373) | |||
Common stock repurchased | (2,295) | — | (2,295) | (1,747) | |||
Payments of debt issuance costs | (2,851) | — | (2,851) | — | |||
Value of shares withheld for taxes | (4) | (3) | (8,105) | (6,630) | |||
Other | — | 2 | — | (509) | |||
Net cash provided by (used in) financing activities | (87,764) | 11,853 | (250,359) | (263,993) | |||
Effect of exchange rates on cash and cash equivalents | (859) | (101) | (156) | (293) | |||
Increase (decrease) in Cash and cash equivalents | 107,706 | 225,799 | (82,083) | 528,585 | |||
Cash and cash equivalents at the beginning of the period | 454,065 | 418,055 | 643,854 | 115,269 | |||
Cash and cash equivalents at the end of the period | $ 561,771 | $ 643,854 | $ 561,771 | $ 643,854 | |||
The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||
Net income | $ 54,104 | $ 78,437 | $ 170,700 | $ 132,529 | |||
Net income attributable to noncontrolling interests | 9,014 | 27,251 | 56,688 | 31,339 | |||
Net income attributable to The Andersons, Inc. | 45,090 | 51,186 | 114,012 | 101,190 | |||
Adjustments: | |||||||
Transaction related compensation | 2,536 | 3,212 | 11,104 | 7,818 | |||
Insurance recoveries | (4,446) | — | (9,650) | (16,080) | |||
Gain on deconsolidation of joint venture | — | — | (3,117) | (6,544) | |||
Acquisition costs | 2,738 | — | 2,738 | — | |||
(Gain) loss on cost method investment | 1,535 | — | 1,535 | (4,798) | |||
Asset impairment | — | — | — | 45,413 | |||
Gain on sale of assets | — | — | — | (5,643) | |||
Goodwill impairment | — | 686 | — | 686 | |||
Income tax impact of adjustments1 | (590) | (520) | 42 | (3,775) | |||
Total adjusting items, net of tax | 1,773 | 3,378 | 2,652 | 17,077 | |||
Adjusted net income attributable to The Andersons, Inc. | $ 46,863 | $ 54,564 | $ 116,664 | $ 118,267 | |||
Diluted earnings per share attributable to The Andersons, Inc. common shareholders | $ 1.31 | $ 1.49 | $ 3.32 | $ 2.94 | |||
Impact on diluted earnings per share | $ 0.05 | $ 0.10 | $ 0.08 | $ 0.50 | |||
Adjusted diluted earnings per share attributable to The Andersons, Inc. common shareholders | $ 1.36 | $ 1.59 | $ 3.40 | $ 3.44 | |||
1 | The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of 25% with the exception of certain transaction related compensation, certain acquisition costs, and goodwill impairments 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 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 & | Other | Total | ||||
Three months ended December 31, 2024 | |||||||||
Sales and merchandising revenues | $ 2,222,762 | $ 713,958 | $ 186,418 | $ — | $ 3,123,138 | ||||
Gross profit | 146,976 | 35,479 | 30,655 | — | 213,110 | ||||
Operating, administrative and general expenses | 95,504 | 10,901 | 27,811 | 12,938 | 147,154 | ||||
Other income (loss), net | 10,441 | 992 | 1,564 | (1,437) | 11,560 | ||||
Income (loss) before income taxes | 53,818 | 24,921 | 2,551 | (14,040) | 67,250 | ||||
Income (loss) attributable to noncontrolling interests | 1,018 | 8,941 | (945) | — | 9,014 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 52,800 | $ 15,980 | $ 3,496 | $ (14,040) | $ 58,236 | ||||
Adjustments to income (loss) before income taxes2 | 828 | — | — | 1,535 | 2,363 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 53,628 | $ 15,980 | $ 3,496 | $ (12,505) | $ 60,599 | ||||
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 | 43,807 | 59,988 | 1,374 | (13,408) | 91,761 | ||||
Income attributable to noncontrolling interests | — | 27,251 | — | — | 27,251 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 43,807 | $ 32,737 | $ 1,374 | $ (13,408) | $ 64,510 | ||||
Adjustments to income (loss) before income taxes2 | 3,212 | — | 686 | — | 3,898 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 47,019 | $ 32,737 | $ 2,060 | $ (13,408) | $ 68,408 | ||||
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 items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $0.5 million difference in acquisition costs in the Trade segment for the three months ended December 31, 2024. |
The Andersons, Inc. Segment Data (continued) (unaudited)
| |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Twelve months ended December 31, 2024 | |||||||||
Sales and merchandising revenues | $ 7,622,077 | $ 2,802,330 | $ 833,141 | $ — | $ 11,257,548 | ||||
Gross profit | 403,682 | 169,151 | 121,093 | — | 693,926 | ||||
Operating, administrative and general expenses | 316,390 | 35,493 | 103,238 | 48,499 | 503,620 | ||||
Other income (loss), net | 28,728 | 8,678 | 6,444 | (1,639) | 42,211 | ||||
Income (loss) before income taxes | 91,433 | 139,495 | 17,988 | (48,159) | 200,757 | ||||
Income (loss) attributable to noncontrolling interests | 1,018 | 56,615 | (945) | — | 56,688 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 90,415 | $ 82,880 | $ 18,933 | $ (48,159) | $ 144,069 | ||||
Adjustments to income (loss) before income taxes2 | 4,192 | (3,117) | — | 1,535 | 2,610 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 94,607 | $ 79,763 | $ 18,933 | $ (46,624) | $ 146,679 | ||||
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 | 96,234 | 91,175 | 25,049 | (42,895) | 169,563 | ||||
Income attributable to noncontrolling interests | — | 31,339 | — | — | 31,339 | ||||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 96,234 | $ 59,836 | $ 25,049 | $ (42,895) | $ 138,224 | ||||
Adjustments to income (loss) before income taxes2 | (12,942) | 37,906 | 686 | (4,798) | 20,852 | ||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 83,292 | $ 97,742 | $ 25,735 | $ (47,693) | $ 159,076 | ||||
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 items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $0.5 million difference in acquisition costs in the Trade segment for the year ended December 31, 2024, and a $42.7 million difference in asset impairment expense in the Renewables segment for the year ended December 31, 2023. |
The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited)
| |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Three months ended December 31, 2024 | |||||||||
Net income (loss) | $ 53,818 | $ 24,921 | $ 2,551 | $ (27,186) | $ 54,104 | ||||
Interest expense (income) | 8,095 | 649 | 1,857 | (335) | 10,266 | ||||
Tax provision | — | — | — | 13,146 | 13,146 | ||||
Depreciation and amortization | 12,559 | 14,079 | 8,585 | 955 | 36,178 | ||||
EBITDA | 74,472 | 39,649 | 12,993 | (13,420) | 113,694 | ||||
Adjusting items impacting EBITDA: | |||||||||
Acquisition costs | 3,193 | — | — | — | 3,193 | ||||
Transaction related compensation | 2,536 | — | — | — | 2,536 | ||||
Insurance recoveries | (4,446) | — | — | — | (4,446) | ||||
Loss on cost method investment | — | — | — | 1,535 | 1,535 | ||||
Total adjusting items | 1,283 | — | — | 1,535 | 2,818 | ||||
Adjusted EBITDA | $ 75,755 | $ 39,649 | $ 12,993 | $ (11,885) | $ 116,512 | ||||
Three months ended December 31, 2023 | |||||||||
Net income (loss) | $ 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 | ||||
EBITDA | 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 EBITDA | $ 62,468 | $ 72,909 | $ 11,177 | $ (11,488) | $ 135,066 | ||||
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 & | Other | Total | ||||
Twelve months ended December 31, 2024 | |||||||||
Net income (loss) | $ 91,433 | $ 139,495 | $ 17,988 | $ (78,216) | $ 170,700 | ||||
Interest expense (income) | 24,587 | 2,841 | 6,311 | (1,979) | 31,760 | ||||
Tax provision | — | — | — | 30,057 | 30,057 | ||||
Depreciation and amortization | 40,505 | 49,705 | 32,488 | 5,106 | 127,804 | ||||
EBITDA | 156,525 | 192,041 | 56,787 | (45,032) | 360,321 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 11,104 | — | — | — | 11,104 | ||||
Insurance recoveries | (9,650) | — | — | — | (9,650) | ||||
Acquisition costs | 3,193 | — | — | — | 3,193 | ||||
Gain on deconsolidation of joint venture | — | (3,117) | — | — | (3,117) | ||||
Loss on cost method investment | — | — | — | 1,535 | 1,535 | ||||
Total adjusting items | 4,647 | (3,117) | — | 1,535 | 3,065 | ||||
Adjusted EBITDA | $ 161,172 | $ 188,924 | $ 56,787 | $ (43,497) | $ 363,386 | ||||
Twelve months ended December 31, 2023 | |||||||||
Net income (loss) | $ 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 | ||||
EBITDA | 167,577 | 148,968 | 61,333 | (36,342) | 341,536 | ||||
Adjusting items impacting EBITDA: | |||||||||
Insurance recoveries | (16,080) | — | — | — | (16,080) | ||||
Gain on sale of assets | (5,643) | — | — | — | (5,643) | ||||
Transaction related compensation | 7,818 | — | — | — | 7,818 | ||||
Asset impairment including equity method investments | 963 | 87,156 | — | — | 88,119 | ||||
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 EBITDA | $ 154,635 | $ 229,580 | $ 62,019 | $ (41,140) | $ 405,094 | ||||
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 | Twelve months ended | ||||||
(in thousands) | 2024 | 2023 | 2024 | 2023 | |||
Cash provided by operating activities | $ 268,811 | $ 250,663 | $ 331,506 | $ 946,750 | |||
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed: | |||||||
Accounts receivable | 32,279 | 62,705 | 35,777 | 468,968 | |||
Inventories | (191,041) | (175,883) | 87,906 | 572,235 | |||
Commodity derivatives | (34,322) | 12,027 | 15,005 | 111,506 | |||
Other current and non-current assets | 31,326 | 4,481 | (28,050) | 6,529 | |||
Payables and other current and non-current liabilities | 330,673 | 232,498 | (102,396) | (563,718) | |||
Total changes in operating assets and liabilities | 168,915 | 135,828 | 8,242 | 595,520 | |||
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 | $ 99,896 | $ 122,105 | $ 323,264 | $ 330,332 | |||
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.