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
December 31,
|
|
Twelve months
ended
December 31,
|
|
(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
December 31,
|
|
Twelve months
ended
December 31,
|
|
(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
December 31,
|
|
Twelve months
ended
December 31,
|
|
(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 &
Industrial
|
|
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 &
Industrial
|
|
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 &
Industrial
|
|
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 &
Industrial
|
|
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
December 31,
|
|
Twelve months
ended
December 31,
|
|
(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.
