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 Company1 | 40.9 | 76.8 | (35.9) | 47.7 | 56.1 | (8.4) |
Adjusted Pretax Income Attributable to the Company1 | 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 Company1 | 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 Operations1 | $ 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 & | 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 & | 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 & | 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 & | 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 | ||||||||
(in thousands) | September 30, | December 31, | March 31, | June 30, | |||||
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 | ||||||||
September 30, | December 31, | March 31, | June 30, | ||||||
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. |
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SOURCE The Andersons, Inc.