The Andersons, Inc. Reports Second Quarter Results; Best Q2 since 2014

MAUMEE, Ohio, Aug. 3, 2021 /PRNewswire/ — The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the second quarter ended…

MAUMEE, Ohio, Aug. 3, 2021 /PRNewswire/ — The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the second quarter ended June 30, 2021.

Second Quarter Highlights:

  • Company reported net income attributable to The Andersons of $43.5 million, or $1.30 per diluted share, and adjusted net income of $43.7 million, or $1.31 per diluted share. On an adjusted basis, this was our best second quarter since 2014.
  • Adjusted EBITDA was $118.1 million for the quarter, up $48.1 million year over year and represents the highest ever quarterly EBITDA. Trailing twelve month adjusted EBITDA exceeds $342 million.
  • Trade reported pretax income of $13.8 million and adjusted pretax income of $14.1 million on strong elevation margins and merchandising results.
  • Ethanol reported pretax income attributable to The Andersons of $23.5 million on improved co-product margins and strong trading results.
  • Plant Nutrient reported pretax income of $24.0 million on stronger margins in their key application season.
  • Rail reported pretax income of $3.1 million on end-of-life railcar sales.

«I’m very pleased that each of our four businesses delivered outstanding, year-over-year improvement with good execution in volatile markets. I’m proud of our team; they anticipated market opportunities and executed well. These market conditions play into our strengths of commodity trading, logistics, and position management. We expect that North American demand will remain strong and currently anticipate large harvests in our key draw areas this fall which should drive strong performance into 2022,» said President and CEO Pat Bowe

«While ethanol margins have been volatile, risk management and effective hedging coupled with strong returns from co-products are evident in the segment’s results,» added Bowe. «Plant Nutrient followed up a very strong first quarter with a great second quarter driven by strong margins in supply-constrained markets. And while Rail continues its slow recovery, it has capitalized on record high scrap steel prices to extract value on end-of-life railcars. Lastly, I’m pleased to announce that our twelve trailing months adjusted EBITDA was greater than $342 million, well in excess of the $300 million run rate goal we established for 2021.»


$ in millions, except per share amounts     





Q2 2021

Q2 2020

Variance

YTD 2021

YTD 2020

Variance

Pretax Income (Loss) Attributable to the

Company
1

$

54.1


$

18.2


$

35.9


$

75.0


$

(20.9)


$

95.9


Adjusted Pretax Income (Loss) Attributable to the Company1

54.4


21.6


32.8


75.8


(16.2)


92.0


     Trade1

14.1


1.4


12.7


28.4


(7.2)


35.6


     Ethanol

23.5


0.9


22.6


26.5


(23.1)


49.6


     Plant Nutrient

24.0


19.4


4.6


32.5


18.2


14.3


     Rail

3.1


2.6


0.5


8.0


3.6


4.4


     Other1

(10.2)


(2.7)


(7.5)


(19.6)


(7.7)


(11.9)


Net Income (Loss) Attributable to the Company

43.5


30.4


13.1


58.6


(7.2)


65.8


Adjusted Net Income (Loss) Attributable to the Company1

43.7


29.3


14.4


59.2


(14.0)


73.2


Diluted EPS

1.30


0.92


0.38


1.74


(0.22)


1.96


Adjusted Diluted EPS1

1.31


0.88


0.43


1.76


(0.43)


2.19


EBITDA1

117.9


66.7


51.2


197.6


76.6


121.0


Adjusted EBITDA1

$

118.1


$

70.0


$

48.1


$

198.3


$

81.3


$

117.0



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

Liquidity and Cash Management

«Our improved operating performance led to strong cash flow from operations before working capital changes of $93.1 million for the second quarter and $182.0 million for the year to date,» said Executive Vice President and CFO Brian Valentine. «We were able to reduce total long-term debt by more than $69 million since the start of the year and continue to maintain discipline over capital spending. Our short-term borrowings reflect the impact of higher commodity prices on our working capital lines but have declined from $915.2 million at the close of our first quarter, which is our typical seasonal high. We continue to have strong support from our lenders and are confident that available capacity will be sufficient to cover our needs. We remain focused on overall liquidity, disciplined risk management, and expense control.»

Readily marketable inventories of $612 million and margin deposits of $220 million at June 30, 2021, are supported by short-term borrowings of $757 million. The balance of readily marketable inventories is a significant increase from the prior year and reflects the overall inflation in commodity prices.

The company invested $7.7 million, net of proceeds from asset sales, on capital projects in the quarter. This is a reduction from 2020, primarily resulting from fewer purchases and the opportunistic scrapping of railcars. The company expects to invest approximately $100 million in 2021.

Second Quarter Segment Overview

Strong Trade Results Driven by Elevation Margins and Merchandising Income Result in $12.7 Million Improvement

The Trade segment recorded improved adjusted pretax income of $14.1 million for the quarter compared to an adjusted pretax income of $1.4 million in the second quarter of 2020. The difference in reported and adjusted income in both periods was attributable to stock compensation expense associated with the 2019 acquisition of Lansing Trade Group.

Strong commodity merchandising and elevation results are driving nearly all of the year-over-year improvement. Once again, good positioning and execution within domestic and export markets has contributed to year-over-year improved performance. Operating and interest expense for the segment were up $9 million primarily due to higher incentive compensation and commodity prices; labor and benefits continue to reflect a decrease from our cost reduction projects and Lansing Trade Group integration. 

As scarcity of supply entering this fall harvest is impacting overall prices, we expect continued merchandising opportunities. Crop conditions in the majority of our draw area are excellent and we are preparing for a large harvest. With continued strong demand and limited board carry, the volume of grain in storage is expected to remain at levels below recent years, as higher prices and strong elevation margins are expected to continue into 2022.

Trade’s second quarter adjusted EBITDA was $32.7 million, nearly double the second quarter 2020 adjusted EBITDA of $17.5 million.

Ethanol Generates $23.5 Million of Pretax Income on Improved Co-Product Values and Trading; Best Second Quarter since 2014

The Ethanol segment reported pretax income attributable to the company of $23.5 million in the second quarter compared to the pretax income attributable to the company of $0.9 million it realized in the same period in 2020.

The quarter-over-quarter improvement was driven by strong co-product margins at the five ethanol plants and profitable third-party trading of ethanol, feed ingredients, and vegetable oil. The segment also recorded a non-cash mark-to-market gain of $13.5 million in 2021 compared to a gain of $8.7 million in the second quarter of 2020.  Most of this gain is a reversal of mark-to-market losses experienced in previous periods.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the trading business. Current Q3 ethanol board crush margins are positive; we will opportunistically hedge forward ethanol production when profitable in the future months as driving demand seasonally declines. 

Ethanol recorded EBITDA of $47.2 million in the second quarter of 2021, up almost $37 million from 2020 second quarter EBITDA of $10.3 million.

Plant Nutrient Continues Excellent Performance with a Great Finish to the Spring Season

The Plant Nutrient segment posted another outstanding quarter, recording pretax income of $24.0 million, which was up $4.6 million compared to pretax income of $19.4 million last year. Gross profit for the group was up $12.1 million resulting from high demand and product mix. Margin improvements were experienced across the breadth of product lines and reflect strong demand, improved grower income, and well-positioned inventory. Plant Nutrient’s EBITDA was $31.6 million compared to 2020 second quarter EBITDA of $27.2 million, a 16% increase.

Rail Benefits from High Scrap Steel Prices

Rail recorded second quarter pretax income of $3.1 million compared to $2.6 million of pretax income in the same period of the prior year. Scrap steel prices have remained high and we continue to scrap older railcars where it makes economic sense. Second quarter 2021 EBITDA was $15.2 million which was flat year-over-year.

Income Taxes; Corporate

The company has recorded income taxes at an effective rate of 18.7% for the second quarter and anticipates a full year effective rate of approximately 25%.

Increases in Corporate expense are primarily a result of increased variable incentive compensation as a product of the strong year-to-date performance. Year-over-year cost reductions, resulting from our cost savings initiatives, are reflected in our business segments.

Conference Call

The company will host a webcast on Wednesday, August 4, 2021, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its updated outlook for 2021. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 4071499). 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/wsnkx8qk. 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), pretax income (loss) attributable to the company, adjusted pretax income (loss) attributable to the company, 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 net income, pretax income or income (loss) before income taxes, 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

Founded in 1947 in Maumee, Ohio, The Andersons, Inc. (Nasdaq: ANDE) is a diversified company rooted in agriculture that conducts business in the commodity trading, ethanol, plant nutrient, and rail 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 June 30,


Six months ended June 30,

(in thousands, except per share data)

2021


2020


2021


2020

Sales and merchandising revenues

$

3,273,726



$

1,890,180



$

5,909,455



$

3,743,286


Cost of sales and merchandising revenues

3,099,682



1,783,914



5,612,699



3,573,890


Gross profit

174,044



106,266



296,756



169,396


Operating, administrative and general expenses

109,976



90,136



209,848



195,196


Interest expense, net

13,454



11,827



26,623



27,414


Other income, net:








Equity in earnings of affiliates, net

845



79



2,639



209


Other income, net

5,307



3,450



12,849



8,263


Income (loss) before income taxes

56,766



7,832



75,773



(44,742)


Income tax provision (benefit)

10,642



(12,200)



16,387



(13,664)


Net income (loss)

46,124



20,032



59,386



(31,078)


Net income (loss) attributable to noncontrolling interests

2,625



(10,407)



780



(23,856)


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

$

43,499



$

30,439



$

58,606



$

(7,222)










Per common share:








Basic earnings (loss) attributable to The Andersons, Inc. common

shareholders

$

1.31



$

0.92



$

1.76



$

(0.22)


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

$

1.30



$

0.92



$

1.74



$

(0.22)


 

The Andersons, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


(in thousands)

June 30, 2021


December 31, 2020


June 30, 2020

Assets






Current assets:






  Cash and cash equivalents

$

27,538



$

29,123



$

30,011


  Accounts receivable, net

721,575



659,834



537,011


  Inventories

912,299



1,300,693



616,323


  Commodity derivative assets – current

507,148



320,706



112,089


  Other current assets

65,740



106,053



102,755


Total current assets

2,234,300



2,416,409



1,398,189


Other assets:






Goodwill

135,709



135,709



135,709


Other intangible assets, net

127,756



142,940



160,180


Right of use assets, net

61,299



56,031



62,838


Other assets, net

73,678



49,907



48,235


Total other assets

398,442



384,587



406,962


Rail assets leased to others, net

574,585



591,946



592,821


Property, plant and equipment, net

841,762



879,179



906,017


Total assets

$

4,049,089



$

4,272,121



$

3,303,989








Liabilities and equity






Current liabilities:






  Short-term debt

$

757,271



$

403,703



$

96,071


  Trade and other payables

547,169



957,683



503,892


  Customer prepayments and deferred revenue

58,155



180,160



45,734


  Commodity derivative liabilities – current

90,366



146,990



65,186


  Current maturities of long-term debt

56,582



75,475



68,477


  Accrued expenses and other current liabilities

181,015



167,671



147,422


Total current liabilities

1,690,558



1,931,682



926,782


Long-term lease liabilities

41,852



37,177



41,061


Long-term debt, less current maturities

866,454



916,540



975,973


Deferred income taxes

173,212



170,147



162,475


Other long-term liabilities

52,049



55,915



65,615


Total liabilities

2,824,125



3,111,461



2,171,906


Total equity

1,224,964



1,160,660



1,132,083


Total liabilities and equity

$

4,049,089



$

4,272,121



$

3,303,989


 

The Andersons, Inc.

Consolidated Statements of Cash Flows

(unaudited)



Six months ended June 30,


2021


2020

Operating Activities




Net income (loss)

$

59,386



$

(31,078)


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




Depreciation and amortization

95,154



93,898


Bad debt (recovery) expense, net

(1,156)



6,290


Equity in earnings of affiliates, net of dividends

(2,639)



(209)


Gain on sales of Rail assets and related leases, net

(4,987)



(569)


(Gain) loss on sales of assets, net

(1,266)



341


Stock-based compensation expense

4,112



5,016


Deferred federal income tax

170



21,761


Inventory write down

2,599



10,922


Other

2,971



2,797


Changes in operating assets and liabilities:




Accounts receivable

(58,338)



(9,181)


Inventories

390,506



536,951


Commodity derivatives

(250,691)



14,980


Other assets

35,568



(24,784)


Payables and other accrued expenses

(516,883)



(481,624)


Net cash (used in) provided by operating activities

(245,494)



145,511


Investing Activities




Purchases of Rail assets

(4,751)



(24,649)


Proceeds from sale of Rail assets

15,616



4,637


Purchases of property, plant and equipment and capitalized software

(34,264)



(44,644)


Proceeds from sale of assets

3,794



1,503


Purchase of investments

(4,701)



(2,849)


Other

832




Net cash used in investing activities

(23,474)



(66,002)


Financing Activities




Net borrowings (payments) under lines of credit

(258,157)



(47,564)


Proceeds from issuance of short-term debt

608,250




Proceeds from issuance of long-term debt

108,300



165,975


Payments of long-term debt

(177,586)



(203,835)


Contributions from noncontrolling interest owner

2,940



4,409


Distributions to noncontrolling interest owner

(25)



(10,298)


Payments of debt issuance costs

(2,059)



(250)


Dividends paid

(11,677)



(11,469)


Other

(2,436)



(2,036)


Net cash provided by (used in) financing activities

267,550



(105,068)


Effect of exchange rates on cash and cash equivalents

(167)



675


Decrease in cash and cash equivalents

(1,585)



(24,884)






Cash and cash equivalents at beginning of period

29,123



54,895


Cash and cash equivalents at end of period

$

27,538



$

30,011


 

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)

2021


2020


2021


2020

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

$

43,499



$

30,439



$

58,606



$

(7,222)


Items impacting other income, net of tax:








Transaction related stock compensation

274



1,017



757



2,348


Severance costs



2,341





2,341


Income tax impact of adjustments (a)

(68)



(4,541)



(189)



(11,451)


Total adjusting items, net of tax

206



(1,183)



568



(6,762)


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

$

43,705



$

29,256



$

59,174



$

(13,984)










Diluted earnings (loss) attributable to The Andersons, Inc. common

shareholders

$

1.30



$

0.92



$

1.74



$

(0.22)










Impact on diluted earnings (loss) per share

$

0.01



$

(0.04)



$

0.02



$

(0.21)


Adjusted diluted earnings (loss) per share

$

1.31



$

0.88



$

1.76



$

(0.43)



(a) Prior year income tax adjustments include $(3.7) million and $(10.3) million due to CARES Act benefits for the quarter ended June 30, 2020 and year to date June 30, 2020, 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


Ethanol


Plant Nutrient


Rail


Other


Total

Three months ended June 30, 2021












Sales and merchandising revenues

$

2,297,869



$

616,527



$

321,409



$

37,921



$



$

3,273,726


Gross profit

77,831



34,716



50,860



10,637





174,044


Operating, administrative and general expenses

61,514



6,577



26,568



4,416



10,901



109,976


Other income, net

4,067



38



849



237



116



5,307


Income (loss) before income taxes

13,777



26,156



23,995



3,064



(10,226)



56,766


Income attributable to the noncontrolling interests



2,625









2,625


Income (loss) before income taxes attributable to

The Andersons, Inc. (a)

$

13,777



$

23,531



$

23,995



$

3,064



$

(10,226)



$

54,141


Adjustments to income (loss) before income taxes (b)

274











274


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

$

14,051



$

23,531



$

23,995



$

3,064



$

(10,226)



$

54,415














Three months ended June 30, 2020












Sales and merchandising revenues

$

1,351,168



$

223,745



$

279,825



$

35,442



$



$

1,890,180


Gross profit

59,382



(2,599)



38,765



10,718





106,266


Operating, administrative and general expenses

54,998



5,506



18,281



5,184



6,167



90,136


Other income, net

986



466



386



905



707



3,450


Income (loss) before income taxes

393



(9,539)



19,407



2,606



(5,035)



7,832


Loss attributable to the noncontrolling interests



(10,407)









(10,407)


Income (loss) before income taxes attributable to

The Andersons, Inc. (a)

$

393



$

868



$

19,407



$

2,606



$

(5,035)



$

18,239


Adjustments to income (loss) before income taxes (b)

1,017









2,341



3,358


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

$

1,410



$

868



$

19,407



$

2,606



$

(2,694)



$

21,597


(a) 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.

(b) 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.

























(in thousands)

Trade


Ethanol


Plant Nutrient


Rail


Other


Total

Six months ended June 30, 2021












Sales and merchandising revenues

$

4,280,377



$

1,059,486



$

490,661



$

78,931



$



$

5,909,455


Gross profit

150,388



43,199



83,261



19,908





296,756


Operating, administrative and general expenses

118,445



13,233



49,967



7,290



20,913



209,848


Other income, net

7,553



1,365



1,436



1,911



584



12,849


Income (loss) before income taxes

27,632



27,237



32,518



7,955



(19,569)



75,773


Income attributable to the noncontrolling interests



780









780


Income (loss) before income taxes attributable to

The Andersons, Inc. (a)

$

27,632



$

26,457



$

32,518



$

7,955



$

(19,569)



$

74,993


Adjustments to income (loss) before income taxes (b)

757











757


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

$

28,389



$

26,457



$

32,518



$

7,955



$

(19,569)



$

75,750














Six months ended June 30, 2020












Sales and merchandising revenues

$

2,729,209



$

536,784



$

404,738



$

72,555



$



$

3,743,286


Gross profit

121,848



(31,998)



59,129



20,417





169,396


Operating, administrative and general expenses

123,153



11,621



38,022



10,443



11,957



195,196


Other income, net

3,750



912



356



1,955



1,290



8,263


Income (loss) before income taxes

(9,591)



(46,964)



18,215



3,613



(10,015)



(44,742)


Loss attributable to the noncontrolling interests



(23,856)









(23,856)


Income (loss) before income taxes attributable to

The Andersons, Inc. (a)

$

(9,591)



$

(23,108)



$

18,215



$

3,613



$

(10,015)



$

(20,886)


Adjustments to income (loss) before income taxes (b)

2,348









2,341



4,689


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

$

(7,243)



$

(23,108)



$

18,215



$

3,613



$

(7,674)



$

(16,197)


(a) 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.

(b) 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.

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

A non-GAAP financial measure

(unaudited)


(in thousands)

Trade


 Ethanol


 Plant Nutrient


 Rail


 Other


 Total

Three months ended June 30, 2021












Net income (loss)

$

13,777



$

26,156



$

23,995



$

3,064



$

(20,868)



$

46,124


Interest expense (income)

7,452



2,021



1,146



3,394



(559)



13,454


Tax provision (benefit)









10,642



10,642


Depreciation and amortization

11,155



18,983



6,456



8,701



2,355



47,650


EBITDA

32,384



47,160



31,597



15,159



(8,430)



117,870


Adjusting items impacting EBITDA:












Transaction related stock compensation

274











274


Total adjusting items

274











274


Adjusted EBITDA

$

32,658



$

47,160



$

31,597



$

15,159



$

(8,430)



$

118,144














Three months ended June 30, 2020












Net income (loss)

$

393



$

(9,539)



$

19,407



$

2,606



$

7,165



$

20,032


Interest expense (income)

5,056



1,900



1,463



3,833



(425)



11,827


Tax provision (benefit)









(12,200)



(12,200)


Depreciation and amortization

11,055



17,952



6,364



8,869



2,757



46,997


EBITDA

16,504



10,313



27,234



15,308



(2,703)



66,656


Adjusting items impacting EBITDA:












Transaction related stock compensation

1,017











1,017


Severance Costs









2,341



2,341


Total adjusting items

1,017









2,341



3,358


Adjusted EBITDA

$

17,521



$

10,313



$

27,234



$

15,308



$

(362)



$

70,014















(in thousands)

Trade


 Ethanol


 Plant Nutrient


 Rail


 Other


 Total

Six months ended June 30, 2021












Net income (loss)

$

27,632



$

27,237



$

32,518



$

7,955



$

(35,956)



$

59,386


Interest expense (income)

14,503



4,094



2,212



6,574



(760)



26,623


Tax provision (benefit)









16,387



16,387


Depreciation and amortization

22,280



37,797



12,837



17,588



4,652



95,154


EBITDA

64,415



69,128



47,567



32,117



(15,677)



197,550


Adjusting items impacting EBITDA:












Transaction related stock compensation

757











757


Total adjusting items

757











757


Adjusted EBITDA

$

65,172



$

69,128



$

47,567



$

32,117



$

(15,677)



$

198,307














Six months ended June 30, 2020












Net income (loss)

$

(9,591)



$

(46,964)



$

18,215



$

3,613



$

3,649



$

(31,078)


Interest expense (income)

12,245



4,257



3,248



8,316



(652)



27,414


Tax provision (benefit)









(13,664)



(13,664)


Depreciation and amortization

22,399



35,504



12,705



17,788



5,502



93,898


EBITDA

25,053



(7,203)



34,168



29,717



(5,165)



76,570


Adjusting items impacting EBITDA:












Transaction related stock compensation

2,348











2,348


Severance Costs









2,341



2,341


Total adjusting items

2,348









2,341



4,689


Adjusted EBITDA

$

27,401



$

(7,203)



$

34,168



$

29,717



$

(2,824)



$

81,259


 

The Andersons, Inc.

Trailing Twelve Months of EBITDA and Adjusted EBITDA

A non-GAAP financial measure

(unaudited)



Three Months Ended,


 Twelve months ended

June 30, 2021

(in thousands)

 September 30, 2020


December 31, 2020


March 31, 2021


June 30, 2021


Net income (loss)

$

2,215



$

14,649



$

13,262



$

46,124



$

76,250


Interest expense (income)

10,569



13,292



13,169



13,454



50,484


Tax provision (benefit)

(4,714)



8,119



5,745



10,642



19,792


Depreciation and amortization

47,269



47,471



47,504



47,650



189,894


EBITDA

55,339



83,531



79,680



117,870



336,420


Adjusting items impacting EBITDA:










Transaction related stock compensation

912



946



483



274



2,615


Severance Costs

3,222



528







3,750


Total adjusting items

4,134



1,474



483



274



6,365


Adjusted EBITDA

$

59,473



$

85,005



$

80,163



$

118,144



$

342,785













Three Months Ended,


Twelve months ended

June 30, 2020


September 30, 2019


December 31, 2019


March 31, 2020


June 30, 2020


Net income (loss)

$

(5,870)



$

5,667



$

(51,111)



$

20,032



$

(31,282)


Interest expense (income)

13,975



14,078



15,587



11,827



55,467


Tax provision (benefit)

(7,212)



14,708



(1,464)



(12,200)



(6,168)


Depreciation and amortization

34,250



47,770



46,898



46,997



175,915


EBITDA

35,143



82,223



9,910



66,656



193,932


Adjusting items impacting EBITDA:










Acquisition costs

(23)



2,158







2,135


Transaction related stock compensation

2,577



1,998



1,331



1,017



6,923


Asset impairments including equity method investments



43,097







43,097


Loss from remeasurement of equity method investment



(36,287)







(36,287)


Severance Costs







2,341



2,341


      Gain on sales of assets



(8,646)







(8,646)


Total adjusting items

2,554



2,320



1,331



3,358



9,563


Adjusted EBITDA

$

37,697



$

84,543



$

11,241



$

70,014



$

203,495













 

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, except per share data)

2021


2020


2021


2020

Cash provided by (used in) operating activities

$

200,233



$

373,941



$

(245,494)



$

145,511


Changes in operating assets and liabilities








Accounts receivable

(24,862)



2,556



(58,338)



(9,181)


Inventories

385,499



414,628



390,506



536,951


Commodity derivatives

(197,396)



13,749



(250,691)



14,980


Other assets

18,828



(13,897)



35,568



(24,784)


Payables and other accrued expenses

(74,962)



(119,015)



(516,883)



(481,624)


Total changes in operating assets and liabilities

107,107



298,021



(399,838)



36,342


Less: changes in CARES Act tax refund receivable



(14,147)



27,697



(35,694)


Cash from operations before working capital changes

$

93,126



$

61,773



$

182,041



$

73,475




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.