The Andersons, Inc. Reports Third Quarter Results; Best Q3 since 2014

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Nov 02,2021
The Andersons, Inc. Reports Third Quarter Results; Best Q3 since 2014

MAUMEE, Ohio, Nov. 2, 2021 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the third quarter ended September 30, 2021.

Third Quarter Highlights:

  • Company reported net income attributable to The Andersons from continuing operations of $13.9 million, or $0.41 per diluted share, and adjusted net income from continuing operations of $5.2 million, or $0.15 per diluted share
  • Adjusted EBITDA from continuing operations was $56.3 million for the quarter, an increase of $9.3 million, or 20%, year over year; trailing twelve month adjusted EBITDA from continuing operations of $294.0 million
  • Trade reported all-time record earnings with pretax income of $42.0 million and adjusted pretax income of $27.6 million on continued merchandising opportunities and strong elevation margins
  • Completed strategic sale of Rail leasing assets and used proceeds to reduce debt

"I'm pleased with our third quarter, particularly the record results of our Trade Group business. We benefited from outstanding execution by our team, strong demand, and relatively low grain stocks - including growth in new markets, such as renewable diesel and supply chain extensions with our new Swiss trading office. We continue to identify opportunities in these volatile markets and remain focused on an anticipated large 2021 harvest. Harvest in the corn belt is progressing and we are pleased that storage income has returned to the wheat and corn markets," said President and CEO Pat Bowe

"Ethanol margins have strengthened through the fall maintenance season and U.S. stocks are low at this time. We are focused on risk management and effective hedging and continue to see strong returns from co-products, particularly distillers' corn oil," added Bowe. "We anticipate strong fourth quarter margins in Ethanol. Plant Nutrient followed up a great first half with a third quarter loss, which was in line with our expectations for this seasonal business. Fertilizer prices and farm income both remain high. We continue to receive good support from our suppliers in this time of tight stocks. Our teams are executing well and remain focused on customer needs and operational excellence." 

"Lastly, I want to comment on the sale of our Rail leasing business that was announced on August 16," stated Bowe. "This strategic sale allowed us to strengthen our balance sheet and focus on investing in our core agriculture businesses. We completed the acquisition of Capstone Commodities on October 1 which helps to expand our supply chain presence to southwestern U.S. dairy customers. We continue to evaluate organic growth projects in grain, renewable fuels, and fertilizer as well as potential acquisitions and investments, with the goal of growing our ag supply chain and renewable fuels businesses while reducing our carbon footprint."

$ in millions, except per share amounts     





Q3 2021

Q3 2020

Variance

YTD 2021

YTD 2020

Variance

Pretax Income (Loss) Attributable to the Company1,2

$

17.9


$

(5.6)


$

23.5


$

85.0


$

(30.1)


$

115.1


Adjusted Pretax Income (Loss) Attributable to the Company1,2

6.3


(1.5)


7.8


74.1


(21.3)


95.4


     Trade1

27.6


6.9


20.7


56.0


(0.4)


56.4


     Ethanol

(3.6)


1.1


(4.7)


22.8


(22.0)


44.8


     Plant Nutrient

(5.8)


(5.4)


(0.4)


26.7


12.8


13.9


     Other1

(11.8)


(4.1)


(7.7)


(31.4)


(11.8)


(19.6)


Net Income (Loss) Attributable to the Company2

13.9


(1.5)


15.4


66.9


(11.5)


78.4


Adjusted Net Income (Loss) Attributable to the Company1,2

5.2


(2.9)


8.1


58.8


(19.6)


78.4


Diluted Earnings Per Share (EPS)2

0.41


(0.04)


0.45


1.99


(0.35)


2.34


Adjusted Diluted EPS1,2

0.15


(0.08)


0.23


1.75


(0.60)


2.35


EBITDA1,2

67.9


42.9


25.0


233.4


89.7


143.7


Adjusted EBITDA1,2

$

56.3


$

47.0


$

9.3


$

222.5


$

98.6


$

123.9



1 Non-GAAP financial measures; see appendix for explanations and reconciliations. 2 Measure represents only continuing operations of the Company.

Liquidity and Cash Management

"We generated cash flow from operations before working capital changes of $55.6 million for the third quarter and $237.7 million for the year to date," said Executive Vice President and CFO Brian Valentine. "This strong cash flow, combined with proceeds from the sale of assets, has enabled us to reduce long-term debt by over $300 million since the start of the year. We remain disciplined with capital allocation while ensuring that we are adequately maintaining our physical assets. Short-term borrowings at the end of the quarter have been significantly reduced to $281.2 million from the $915.2 million balance at the close of our first quarter, which is our typical seasonal high. We are now below our key target of 2.5x long-term debt to adjusted EBITDA and have capacity available for growth in our core agricultural businesses."

Readily marketable inventories of $700 million at September 30 are a significant increase from the prior year and reflects the overall inflation in commodity prices. The company invested $19.8 million on capital projects for its continuing operations in the quarter. The company expects to invest approximately $85 million in 2021 in its continuing operations.  In addition, the company received proceeds of $543 million from the sale of its Rail leasing business and other assets. A portion of these proceeds were used to retire long-term debt and reduce outstanding short-term borrowings.

Third Quarter Segment Overview

Record Trade Results Driven by Elevation Margins and Merchandising Income Result in $20.7 Million Year-Over-Year Improvement

The Trade segment had record adjusted pretax income of $27.6 million for the quarter compared to adjusted pretax income of $6.9 million in the third quarter of 2020. The difference in reported and adjusted pretax income in both periods was attributable to stock compensation expense associated with the 2019 acquisition of Lansing Trade Group, as well as a gain on the sale of a grain asset location in 2021.

Strong elevation margins in Idaho and Louisiana grain assets led the significant quarter-over-quarter improvement. In addition, new merchandising businesses have added incremental gross profit and earnings. Good overall positioning, risk management, and execution has contributed to year-over-year improved performance.

Continued merchandising opportunities are expected throughout the fourth quarter. The harvest outlook remains strong despite delays caused by recent precipitation. A good third quarter wheat harvest accumulated more bushels than expected and an opportunity for storage income with carry in the wheat market. Relatively low stocks are expected to continue past harvest along with higher prices and strong elevation margins are expected to continue into 2022.

Trade's third quarter adjusted EBITDA was $43.9 million, nearly double the third quarter 2020 adjusted EBITDA of $22.3 million.

Ethanol Records a Pretax Loss of $3.6 Million on Higher Corn Basis; Co-Product Values and Trading Remain Strong

The Ethanol segment reported a pretax loss attributable to the company of $3.6 million in the third quarter compared to the pretax income attributable to the company of $1.1 million it realized in the same period in 2020.

The quarter-over-quarter decline was driven by higher corn basis at all five ethanol plants eroding any board crush margins. Partially offsetting the ethanol margin decline was increased high-protein feed values and continuing corn oil strength. Profitable third-party trading of ethanol, feed ingredients, and vegetable oil exceeded last year's third quarter. Stocks of ethanol are at very low levels leading to ethanol board crush margins that are positive into the first quarter and despite a projected seasonal slowdown in gasoline demand. Industry production increases are expected in response.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the trading business. Hedges on forward ethanol production are in place for a portion of expected production.  

Ethanol recorded EBITDA of $19.2 million in the third quarter of 2021, down $5.2 million from 2020 third quarter EBITDA of $24.4 million.

Plant Nutrient Results Nominally Lower than 2020

The Plant Nutrient segment posted a pretax loss of $5.8 million, compared to the pretax loss of $5.4 million last year. Gross profit for the group was up $1.4 million from good demand and strong margins in our agricultural product lines resulting from continued strength in both fertilizer prices and farmer income. High raw material costs and plant labor challenges lowered results for our turf and specialty products. Plant Nutrient's EBITDA was $1.8 million compared to 2020 third quarter EBITDA of $2.2 million.

Income Taxes; Corporate

The company has recorded income taxes from continuing operations at an effective rate of 24.7% for the third quarter and anticipates a full year effective rate of approximately 22%-25%.

Increases in corporate expense are due to variable incentive compensation and stranded costs from the sale of our Rail leasing business. 

Conference Call

The company will host a webcast on Wednesday, November 3, 2021, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its updated outlook for 2021 and preliminary views for 2022. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 5175137). It is recommended that you call 10 minutes before the conference call begins. 

To access the webcast, click on the link: https://edge.media-server.com/mmc/p/k9hpyhef. Complete the four fields as directed and click "Submit." A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com

Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, the COVID-19 pandemic, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

Non-GAAP Measures

This release contains non-GAAP financial measures. The company believes that adjusted pretax income (loss) from continuing operations, pretax income (loss) attributable to the company from continuing operations, adjusted pretax income (loss) attributable to the company from continuing operations, adjusted net income attributable to the company from continuing operations, adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; 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 net income from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations 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

Founded in 1947 in Maumee, Ohio, The Andersons, Inc. (Nasdaq: ANDE) is a diversified company rooted in agriculture that conducts business in the commodity merchandising, biofuels, and plant nutrient sectors. Guided by its Statement of Principles, The Andersons strives to provide extraordinary service to its customers, help its employees improve, support its communities, and increase the value of the company. For more information, please visit www.andersonsinc.com.

 

The Andersons, Inc.

Condensed Consolidated Statements of Operations

(unaudited)



Three months ended
September 30,


Nine months ended
September 30,

(in thousands, except per share data)

2021


2020


2021


2020

Sales and merchandising revenues

$

2,998,824



$

1,885,586



$

8,829,348



$

5,556,317


Cost of sales and merchandising revenues

2,876,989



1,792,349



8,430,665



5,314,101


Gross profit

121,835



93,237



398,683



242,216


Operating, administrative and general expenses

110,275



92,610



312,833



277,363


Interest expense, net

8,799



6,853



28,848



25,951


Other income, net:








Equity in earnings (losses) of affiliates, net

(250)



20



2,389



228


Other income, net

13,806



3,846



24,743



10,154


Income (loss) before income taxes from continuing operations

16,317



(2,360)



84,134



(50,716)


Income tax provision (benefit) from continuing operations

4,027



(4,148)



18,065



(18,628)


Net income (loss) from continuing operations

12,290



1,788



66,069



(32,088)


Income (loss) from discontinued operations, net of income taxes

1,846



427



7,453



3,224


Net income (loss)

14,136



2,215



73,522



(28,864)


Net income (loss) attributable to noncontrolling interests

(1,602)



3,273



(822)



(20,583)


Net income (loss) attributable to The Andersons, Inc.

$

15,738



$

(1,058)



$

74,344



$

(8,281)










Earnings (loss) per share attributable to The Andersons, Inc. 

common shareholders:








Basic earnings (loss):








Continuing operations

$

0.42



$

(0.04)



$

2.01



$

(0.35)


Discontinued operations

0.06



0.01



0.22



0.10



$

0.48



$

(0.03)



$

2.23



$

(0.25)


Diluted earnings (loss):








Continuing operations

$

0.41



$

(0.04)



$

1.99



$

(0.35)


Discontinued operations

0.05



0.01



0.22



0.10



$

0.46



$

(0.03)



$

2.21



$

(0.25)


 

The Andersons, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


(in thousands)

September 30,
2021


December 31,
2020


September 30,
2020

Assets






Current assets:






  Cash and cash equivalents

$

216,874



$

29,123



$

13,693


  Accounts receivable, net

735,349



641,326



509,964


  Inventories

1,017,804



1,293,066



747,588


  Commodity derivative assets – current

409,647



320,706



140,065


  Current assets held-for-sale

26,561



32,659



45,132


  Other current assets

92,159



99,529



83,807


Total current assets

2,498,394



2,416,409



1,540,249


Other assets:






Goodwill

129,342



131,542



131,542


Other intangible assets, net

118,690



140,084



148,846


Right of use assets, net

50,270



33,387



33,547


Other assets held-for-sale

38,863



643,474



642,538


Other assets, net

74,923



46,914



44,738


Total other assets

412,088



995,401



1,001,211


Property, plant and equipment, net

797,660



860,311



870,151


Total assets

$

3,708,142



$

4,272,121



$

3,411,611








Liabilities and equity






Current liabilities:






  Short-term debt

$

281,199



$

403,703



$

100,405


  Trade and other payables

825,923



954,809



635,206


  Customer prepayments and deferred revenue

147,225



178,226



47,906


  Commodity derivative liabilities – current

78,702



146,990



79,159


  Current maturities of long-term debt

106,255



69,366



62,499


  Accrued taxes

97,215



17,465



15,178


  Current liabilities held-for-sale

13,427



25,277



27,996


  Accrued expenses and other current liabilities

173,215



135,846



128,187


Total current liabilities

1,723,161



1,931,682



1,096,536


Long-term lease liabilities

31,332



19,835



19,216


Long-term debt, less current maturities

542,821



886,453



717,198


Deferred income taxes

79,636



170,147



163,454


Other long-term liabilities held-for-sale

13,592



48,096



221,334


Other long-term liabilities

81,587



55,248



56,646


Total liabilities

2,472,129



3,111,461



2,274,384


Total equity

1,236,013



1,160,660



1,137,227


Total liabilities and equity

$

3,708,142



$

4,272,121



$

3,411,611


 

The Andersons, Inc.

Consolidated Statements of Cash Flows

(unaudited)



Nine months ended September 30,

 (in thousands)

2021


2020

Operating Activities




Net income (loss) from continuing operations

$

66,069



$

(32,088)


Income from discontinued operations, net of income taxes

7,453



3,224


Net income (loss)

73,522



(28,864)


Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities:




Depreciation and amortization

142,137



141,167


Bad debt (recovery) expense, net

(2,182)



8,049


Equity in earnings of affiliates, net of dividends

(2,389)



(228)


Gain on sale of business from continuing operations

(14,619)




Loss on sale of business from discontinued operations

1,491




Gain on sales of assets, net

(6,505)



(1,037)


Stock-based compensation expense

6,727



7,742


Deferred federal income tax

(93,725)



21,917


Inventory write down

3,399



10,933


Other

7,005



4,141


Changes in operating assets and liabilities:




Accounts receivable

(89,902)



(1,952)


Inventories

266,865



400,262


Commodity derivatives

(158,741)



(2,574)


Other assets

(3,357)



(34,343)


Payables and other accrued expenses

(10,659)



(329,422)


Net cash provided by operating activities

119,067



195,791


Investing Activities




Purchases of property, plant and equipment and capitalized software

(52,730)



(59,414)


Proceeds from sale of assets

3,999



8,121


Purchases of investments

(5,993)



(2,849)


Proceeds from sale of business from continuing operations

18,130



2,467


Proceeds from sale of business from discontinued operations

543,102




Purchases of Rail assets

(6,039)



(26,258)


Proceeds from sale of Rail assets

18,705



7,774


Other

349




Net cash provided by (used in) investing activities

519,523



(70,159)


Financing Activities




Net payments under lines of credit

(324,279)



(44,183)


Proceeds from issuance of short-term debt

608,250




Payments of short-term debt

(408,250)




Proceeds from issuance of long-term debt

186,800



213,906


Payments of long-term debt

(485,527)



(310,694)


Contributions from noncontrolling interest owner

4,655



6,493


Distributions to noncontrolling interest owner

(25)



(10,322)


Payments of debt issuance costs

(2,059)



(250)


Dividends paid

(17,503)



(17,234)


Other

(12,709)



(4,143)


Net cash used in financing activities

(450,647)



(166,427)


Effect of exchange rates on cash and cash equivalents

(192)



(407)


Increase (decrease) in cash and cash equivalents

187,751



(41,202)


Cash and cash equivalents at beginning of period

29,123



54,895


Cash and cash equivalents at end of period

$

216,874



$

13,693


 

The Andersons, Inc.

Adjusted Net Income Attributable to The Andersons, Inc.

A non-GAAP financial measure

(unaudited)



Three months ended
September 30,


Nine months ended
September 30,

(in thousands, except per share data)

2021


2020


2021


2020

Net income (loss) from continuing operations

$

12,290



$

1,788



$

66,069



$

(32,088)


Net income (loss) attributable to noncontrolling interests

(1,602)



3,273



(822)



(20,583)


Net income (loss) from continuing operations attributable to The Andersons, Inc.

13,892



(1,485)



66,891



(11,505)


Items impacting other income, net of tax:








Transaction related stock compensation

243



912



1,000



3,260


Gain on sale of a business

(14,619)





(14,619)




Loss on cost method investment

2,784





2,784




Severance costs



3,222





5,563


Income tax impact of adjustments (a)

2,898



(5,511)



2,709



(16,962)


Total adjusting items, net of tax

(8,694)



(1,377)



(8,126)



(8,139)


Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. 

$

5,198



$

(2,862)



$

58,765



$

(19,644)










Diluted earnings (loss) from continuing operations attributable to The Andersons, Inc. common shareholders

$

0.41



$

(0.04)



$

1.99



$

(0.35)










Impact on diluted earnings (loss) per share from continuing operations

$

(0.26)



$

(0.04)



$

(0.24)



$

(0.25)


Adjusted diluted earnings (loss) from continuing operations per share

$

0.15



$

(0.08)



$

1.75



$

(0.60)


(a) Prior year income tax adjustments include $(4.5) million and $(14.8) million due to CARES Act benefits for the quarter and year ended September 30, 2020, respectively.


Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. reflects reported net income (loss) from continuing operations available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) from continuing operations 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) from continuing operations attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) from continuing operations 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) from continuing operations per share amount for each specified item.

 

The Andersons, Inc.

Segment Data

(unaudited)


(in thousands)

Trade


Ethanol


Plant
Nutrient


Other


Total

Three months ended September 30, 2021










Sales and merchandising revenues

$

2,242,131



$

614,637



$

142,056



$



$

2,998,824


Gross profit

98,196



5,751



17,888





121,835


Operating, administrative and general expenses

67,590



10,014



22,883



9,788



110,275


Other income (loss), net

16,886



683



309



(4,072)



13,806


Income (loss) before income taxes from continuing operations

41,999



(5,238)



(5,832)



(14,612)



16,317


Income (loss) attributable to noncontrolling interests



(1,602)







(1,602)


Income (loss) before income taxes from continuing operations attributable to
The Andersons, Inc. (a)

$

41,999



$

(3,636)



$

(5,832)



$

(14,612)



$

17,919


Adjustments to income (loss) before income taxes from continuing operations (b)

(14,376)







2,784



(11,592)


Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)

$

27,623



$

(3,636)



$

(5,832)



$

(11,828)



$

6,327












Three months ended September 30, 2020










Sales and merchandising revenues

$

1,432,922



$

349,957



$

102,707



$



$

1,885,586


Gross profit

65,572



11,169



16,496





93,237


Operating, administrative and general expenses

58,385



5,650



21,175



7,400



92,610


Other income (loss), net

3,114



553



579



(400)



3,846


Income (loss) before income taxes from continuing operations

5,941



4,421



(5,387)



(7,335)



(2,360)


Income (loss) attributable to noncontrolling interests



3,273







3,273


Income (loss) before income taxes from continuing operations attributable to
The Andersons, Inc. (a)

$

5,941



$

1,148



$

(5,387)



$

(7,335)



$

(5,633)


Adjustments to income (loss) before income taxes from continuing operations (b)

912







3,222



4,134


Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)

$

6,853



$

1,148



$

(5,387)



$

(4,113)



$

(1,499)


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

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

 

The Andersons, Inc.

Segment Data (continued)

(unaudited)












(in thousands)

Trade


Ethanol


Plant
Nutrient


Other


Total

Nine months ended September 30, 2021










Sales and merchandising revenues

$

6,522,508



$

1,674,123



$

632,717



$



$

8,829,348


Gross profit

248,584



48,950



101,149





398,683


Operating, administrative and general expenses

186,035



23,247



72,850



30,701



312,833


Other income (loss), net

24,439



2,048



1,745



(3,489)



24,743


Income (loss) before income taxes from continuing operations

69,631



21,999



26,686



(34,182)



84,134


Income (loss) attributable to noncontrolling interests



(822)







(822)


Income (loss) before income taxes from continuing operations attributable to
The Andersons, Inc. (a)

$

69,631



$

22,821



$

26,686



$

(34,182)



$

84,956


Adjustments to income (loss) before income taxes from continuing operations (b)

(13,619)







2,784



(10,835)


Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)

$

56,012



$

22,821



$

26,686



$

(31,398)



$

74,121












Nine months ended September 30, 2020










Sales and merchandising revenues

$

4,162,130



$

886,742



$

507,445



$



$

5,556,317


Gross profit

187,420



(20,829)



75,625





242,216


Operating, administrative and general expenses

181,539



17,271



59,197



19,356



277,363


Other income (loss), net

6,865



1,465



935



889



10,154


Income (loss) before income taxes from continuing operations

(3,650)



(42,543)



12,828



(17,351)



(50,716)


Income (loss) attributable to noncontrolling interests



(20,583)







(20,583)


Income (loss) before income taxes from continuing operations attributable to
The Andersons, Inc. (a)

$

(3,650)



$

(21,960)



$

12,828



$

(17,351)



$

(30,133)


Adjustments to income (loss) before income taxes from continuing operations (b)

3,260







5,563



8,823


Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)

$

(390)



$

(21,960)



$

12,828



$

(11,788)



$

(21,310)


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

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

 

The Andersons, Inc.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

A non-GAAP financial measure

(unaudited)



Continuing Operations


Discontinued
Operations


Total
Company

(in thousands)

Trade


 Ethanol


 Plant
Nutrient


 Other


 Total


Rail


Three months ended September 30, 2021














Net income (loss)

$

41,999



$

(5,238)



$

(5,832)



$

(18,639)



$

12,290



$

1,846



$

14,136


Interest expense (income)

5,243



1,658



1,146



752



8,799



2,139



10,938


Tax provision (benefit)







4,027



4,027



(2,777)



1,250


Depreciation and amortization

11,037



22,811



6,508



2,455



42,811



4,172



46,983


EBITDA

58,279



19,231



1,822



(11,405)



67,927



5,380



73,307


Adjusting items impacting EBITDA:














Transaction related stock compensation

243









243





243


Gain on sale of a business

(14,619)









(14,619)





(14,619)


Loss on cost method investment







2,784



2,784





2,784


Total adjusting items

(14,376)







2,784



(11,592)





(11,592)


Adjusted EBITDA

$

43,903



$

19,231



$

1,822



$

(8,621)



$

56,335



$

5,380



$

61,715
















Three months ended September 30, 2020














Net income (loss)

$

5,941



$

4,421



$

(5,387)



$

(3,187)



$

1,788



$

427



$

2,215


Interest expense (income)

4,380



1,651



1,287



(465)



6,853



3,716



10,569


Tax provision (benefit)







(4,148)



(4,148)



(566)



(4,714)


Depreciation and amortization

11,079



18,282



6,316



2,710



38,387



8,882



47,269


EBITDA

21,400



24,354



2,216



(5,090)



42,880



12,459



55,339


Adjusting items impacting EBITDA:














Transaction related stock compensation

912









912





912


Severance Costs







3,222



3,222





3,222


Total adjusting items

912







3,222



4,134





4,134


Adjusted EBITDA

$

22,312



$

24,354



$

2,216



$

(1,868)



$

47,014



$

12,459



$

59,473


















Continuing Operations


Discontinued
Operations


Total
Company

(in thousands)

Trade


Ethanol


Plant
Nutrient


Other


Total


Rail


Nine months ended September 30, 2021














Net income (loss)

$

69,631



$

21,999



$

26,686



$

(52,247)



$

66,069



$

7,453



$

73,522


Interest expense (income)

19,746



5,752



3,358



(8)



28,848



8,714



37,562


Tax provision (benefit)







18,065



18,065



(428)



17,637


Depreciation and amortization

33,317



60,608



19,345



7,107



120,377



21,760



142,137


EBITDA

122,694



88,359



49,389



(27,083)



233,359



37,499



270,858


Adjusting items impacting EBITDA:














Transaction related stock compensation

1,000









1,000





1,000


Gain on sale of a business

(14,619)









(14,619)





(14,619)


Loss on cost method investment







2,784



2,784





2,784


Total adjusting items

(13,619)







2,784



(10,835)





(10,835)


Adjusted EBITDA

$

109,075



$

88,359



$

49,389



$

(24,299)



$

222,524



$

37,499



$

260,023
















Nine months ended September 30, 2020














Net income (loss)

$

(3,650)



$

(42,543)



$

12,828



$

1,277



$

(32,088)



$

3,224



$

(28,864)


Interest expense (income)

16,624



5,908



4,535



(1,116)



25,951



12,032



37,983


Tax provision (benefit)







(18,628)



(18,628)



250



(18,378)


Depreciation and amortization

33,478



53,786



19,021



8,212



114,497



26,670



141,167


EBITDA

46,452



17,151



36,384



(10,255)



89,732



42,176



131,908


Adjusting items impacting EBITDA:














Transaction related stock compensation

3,260









3,260





3,260


Severance Costs







5,563



5,563





5,563


Total adjusting items

3,260







5,563



8,823





8,823


Adjusted EBITDA

$

49,712



$

17,151



$

36,384



$

(4,692)



$

98,555



$

42,176



$

140,731


 

The Andersons, Inc.

Trailing Twelve Months of EBITDA and Adjusted EBITDA

A non-GAAP financial measure

(unaudited)



Three Months Ended,


 Twelve months
ended September 30,
2021

(in thousands)

December 31,
2020


March 31,
2021


June 30,
2021


September 30,
2021


Net income (loss) from continuing operations

$

15,917



$

9,755



$

44,024



$

12,290



$

81,986


Interest expense (income)

7,833



9,989



10,060



8,799



36,681


Tax provision (benefit)

7,718



4,361



9,677



4,027



25,783


Depreciation and amortization

38,568



38,617



38,949



42,811



158,945


EBITDA

70,036



62,722



102,710



67,927



303,395


Adjusting items impacting EBITDA:










Transaction related stock compensation

946



483



274



243



1,946


Gain on sale of a business







(14,619)



(14,619)


Loss from cost method investment







2,784



2,784


Severance Costs

528









528


Total adjusting items

1,474



483



274



(11,592)



(9,361)


Adjusted EBITDA

$

71,510



$

63,205



$

102,984



$

56,335



$

294,034













Three Months Ended,


Twelve months
ended September 30,
2020


December 31,
2019


March 31,
2020


June 30,
2020


September 30,
2020


Net income (loss) from continuing operations

$

1,206



$

(44,166)



$

10,290



$

1,788



$

(30,882)


Interest expense (income)

9,663



11,104



7,994



6,853



35,614


Tax provision (benefit)

13,593



(9,416)



(5,064)



(4,148)



(5,035)


Depreciation and amortization

39,025



37,982



38,128



38,387



153,522


EBITDA

63,487



(4,496)



51,348



42,880



153,219


Adjusting items impacting EBITDA:










Transaction related stock compensation

1,998



1,331



1,017



912



5,258


Acquisition costs

2,158









2,158


Asset impairments including equity method investments

43,097









43,097


Loss from remeasurement of equity method investment

(36,287)









(36,287)


      Gain on sales of assets

(8,646)









(8,646)


Severance Costs