The Andersons, Inc. Reports Fourth Quarter Results

MAUMEE, Ohio, Feb. 16, 2021 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter ended December 31, 2020.

The Andersons, Inc. logo. (PRNewsFoto/The Andersons, Inc.)

Fourth Quarter Highlights:

  • Company reported net income attributable to The Andersons of $16.0 million, or $0.48 per diluted share, and adjusted net income of $19.4 million, or $0.59 per diluted share.
  • Trade reported pretax income of $28.3 million and adjusted pretax income of $29.3 million on improved merchandising results.
  • Ethanol reported a pretax loss attributable to the company of $3.5 million that included a $6.6 million non-cash mark-to-market charge.
  • Plant Nutrient completed its best year since 2014 as it recorded pretax income of $3.2 million for the quarter. 
  • Adjusted EBITDA for the quarter of $85.0 million was comparable year over year despite significant pandemic impacts.

"I am very excited about the recent strong, demand-driven rally in grain and fertilizer markets and what it means for U.S. agriculture and The Andersons," said President and CEO Pat Bowe. "We have already participated in multi-year highs in grain elevation margins, and have benefited from strong export demand. Fertilizer demand was strong throughout the fourth quarter. With more planted corn acres in the forecast, it looks like strong fertilizer demand will continue."

"We improved our fourth quarter results modestly year over year, and our outlook for 2021 has improved," continued Bowe. "Our Trade income was up substantially on strong merchandising results from our diverse commodity portfolio, and Plant Nutrient's full-year results nearly doubled. Our Ethanol business benefited from the launch of our new high-protein feed products. Finally, Rail remained profitable despite weak railcar demand.

"We continue to benefit greatly from the complementary trading business we acquired in early 2019 and have since successfully integrated. We continue to focus on creating a leaner cost structure, having taken approximately $40 million of cost out of the business in the last two years. In addition to opportunities in the Trade and Plant Nutrient segments, a recovery in the ethanol and rail markets should lead to significant year-over-year increases in EBITDA. In short, we are pleased to see the strength in ag markets and look forward to better financial performance ahead."

$ in millions, except per share amounts     





Q4 2020

Q4 2019

Variance

YTD 2020

YTD 2019

Variance

Pretax Income (Loss) Attributable to
the Company1

$

24.1


$

21.4


$

2.7


$

(2.5)


$

31.4


$

(33.9)


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

28.4


23.7


4.7


10.6


51.0


(40.4)


     Trade2

29.3


17.6


11.7


28.9


37.6


(8.7)


     Ethanol1,2

(3.5)


8.1


(11.6)


(25.4)


15.9


(41.3)


     Plant Nutrient2

3.2


3.9


(0.7)


16.0


8.4


7.6


     Rail2

2.0


4.5


(2.5)


5.5


15.1


(9.6)


     Other2

(2.6)


(10.4)


7.8


(14.4)


(26.0)


11.6


Net Income Attributable to the
Company1

16.0


6.6


9.4


7.7


18.3


(10.6)


Adjusted Net Income Attributable to
the Company1,2

19.4


18.4


1.0


2.9


43.0


(40.1)


Diluted EPS

0.48


0.19


0.29


0.23


0.55


(0.32)


Adjusted Diluted EPS2

0.59


0.55


0.04


0.09


1.30


(1.21)


EBITDA2

83.5


82.2


1.3


215.4


234.0


(18.6)


Adjusted EBITDA2

$

85.0


$

84.5


$

0.5


$

225.7


$

253.6


$

(27.9)




1

Reflects amounts attributable to the company and excludes losses attributable to the noncontrolling interests of $1.3 million in Q4 2020,
$1.0 million in Q4 2019, $21.9 million for the full year 2020 and $3.2 million for the full year 2019. See appendix for non-GAAP
explanations and reconciliations.

2 

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

Cash, Liquidity and Long-Term Debt Management

"We continued to generate strong operating cash flows and remained disciplined in our capital spending during the fourth quarter," said Executive Vice President and CFO Brian Valentine. "We were well-prepared for the need for short-term working capital funding as commodity prices spiked during the quarter and into early 2021. We were pleased with the progress we made in 2020 to reduce long-term debt, which remains a priority."

The company generated $74.6 million and $73.0 million in cash from operations before working capital changes during the fourth quarters of 2020 and 2019, respectively. For the full years 2020 and 2019, the company generated $200.9 million and $192.6 million in cash from operations before working capital changes, respectively.

The company spent $16.6 million net of proceeds from asset sales on capital projects during the fourth quarter and spent $86.8 million net of proceeds from asset sales for the full year 2020, well beneath its self-imposed $100 million ceiling. 

Working capital, readily marketable inventory and short-term debt each increased year over year due to the significant increase in commodity prices. While the company has been able to maintain adequate liquidity, it recently increased its short-term borrowing capacity by $250 million to further ensure adequate liquidity and accommodate further volatility and related opportunities in 2021.  

Finally, despite all the challenges it faced during 2020, the company reduced long-term debt by approximately $100 million and remains focused on additional reductions of $200 to $250 million by the end of 2023.

Fourth Quarter Segment Overview

Trade Records Higher Results Driven by Continued Strong Merchandising Income

Trade recorded pretax income of $28.3 million and adjusted pretax income of $29.3 million for the quarter, a significant improvement compared to a pretax loss of $19.9 million and adjusted pretax income of $17.6 million in the fourth quarter of 2019. The primary difference between reported and adjusted income in 2019 was attributable to approximately $40 million in asset and investment impairment charges.

Income from commodity merchandising rose by more than one-third year over year, besting an already strong performance in the fourth quarter of 2019. The performance of the segment's asset-based businesses declined, as income from both storing and handling grain decreased.

Trade's fourth quarter adjusted EBITDA was $45.8 million, up approximately 23 percent over fourth quarter 2019 adjusted EBITDA of $37.2 million. Its full year adjusted EBITDA decreased from $123.4 million in 2019 to $95.5 million in 2020, primarily as a result of fewer wheat opportunities and the remaining impact of the poor 2019 harvest in the Eastern Corn Belt.

Ethanol Results Decline on Big Decrease in Crush Margins and Large Mark-to-Market Charge

The Ethanol segment reported a pretax loss attributable to the company of $3.5 million in the fourth quarter compared to adjusted pretax income attributable to the company of $8.1 million in the same period in 2019.

Production volumes in the quarter were flat year over year. The business benefited from execution of its high-protein feed strategy as well as higher DDG and corn oil prices. The ethanol and vegetable oil trading businesses also posted comparatively better results due to improved margins and higher volumes.

Ethanol board crush margins were 25 cents lower year over year and were driven by rising corn prices that were only partially mitigated by higher ethanol prices. Strong operating performance at the plants helped offset the impact of the lower crush margins. The segment also recorded a $6.6 million non-cash, mark-to-market charge during the quarter that is expected to reverse in 2021. 

Ethanol recorded adjusted EBITDA of $16.2 million in the fourth quarter of 2020, down from 2019 fourth quarter adjusted EBITDA of $25.9 million.

Plant Nutrient Closes out Strong Year; Rail Records Modest Income

Plant Nutrient recorded adjusted pretax income of $3.2 million in the fourth quarter compared to adjusted pretax income of $3.9 million in the same period of the prior year. Tons sold were up across all major product lines, but especially in Ag Supply Chain. Margin per ton declined moderately, most notably in Engineered Granules. The business continued to benefit from disciplined working capital and expense management.

Plant Nutrient's current quarter adjusted EBITDA was $10.8 million compared to 2019 fourth quarter adjusted EBITDA of $11.5 million. For the full year, Plant Nutrient recorded adjusted EBITDA of $47.2 million in 2020 and $42.3 million in 2019 as planting and harvest conditions were much improved year over year.

Rail recorded adjusted fourth quarter pretax income of $2.0 million compared to $4.5 million of adjusted pretax income in the same period of the prior year. Lower income from railcar sales accounted for the majority of the shortfall.

Rail's fourth quarter 2020 adjusted EBITDA was $13.5 million compared to fourth quarter 2019 adjusted EBITDA of $17.6 million. Full-year 2020 EBITDA was $55.7 million, a 15 percent decrease from 2019 results, primarily due to lower leasing income.

Full-Year Provision for Income Taxes Includes CARES Act Benefits

The company's full-year income tax provision included additional CARES Act tax benefits of approximately $14.8 million, or $0.44 per diluted share. The company has excluded these benefits from its adjusted net income. At year-end, the company had received $1.7 million of an anticipated total of $39.3 million in CARES Act refunds. The company expects to receive the remaining $37.6 million in 2021, and has removed that amount from cash from operations before working capital changes.

The company's reported effective income tax rate continued to be substantially impacted by the income or loss earned by the noncontrolling interests, which may result in highly variable effective tax rates in future periods.

Fourth quarter and full-year 2019 income tax provisions included tax expense of approximately $8.0 million, or $0.24 per diluted share, related to nondeductible Canadian losses on the company's investment in Thompsons Limited that it excluded from its adjusted net income. In addition, the company's fourth quarter 2019 income tax provision included a tax benefit of approximately $2.7 million, or $0.08 per diluted share, for federal research and development income tax credits.

Conference Call

The company will host a webcast on Wednesday, February 17, 2021, at 11 a.m. Eastern Standard 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 9267363). 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/cintwfki. Complete the four fields as directed and click Submit. A replay of the call will be available at www.andersonsinc.com under the heading "Investors."    

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 pretax income attributable to The Andersons, adjusted pretax income attributable to the company, net income attributable to the company, adjusted net income attributable to the company, adjusted diluted earnings per share, 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 better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income, net income, net income per share 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
December 31,


Twelve months ended
December 31,

(in thousands, except per share data)

2020


2019


2020


2019

Sales and merchandising revenues

$

2,542,917



$

1,885,603



$

8,208,436



$

8,170,191


Cost of sales and merchandising revenues

2,409,226



1,747,244



7,803,514



7,652,299


Gross profit

133,691



138,359



404,922



517,892


Operating, administrative and general expenses

105,792



109,457



399,207



436,842


Asset impairment



38,131





41,212


Interest expense, net

13,292



14,078



51,275



59,691


Other income, net:








Equity in earnings (loss) of affiliates, net

410



(4,992)



638



(7,359)


Gain from remeasurement of equity method investments, net



36,287





35,214


Other income, net

7,751



12,387



20,448



20,109


Income (loss) before income taxes

22,768



20,375



(24,474)



28,111


Income tax expense (benefit)

8,119



14,708



(10,259)



13,051


Net income (loss)

14,649



5,667



(14,215)



15,060


Net loss attributable to the noncontrolling interests

(1,342)



(982)



(21,925)



(3,247)


Net income attributable to The Andersons, Inc.

$

15,991



$

6,649



$

7,710



$

18,307










Per common share:








Basic earnings attributable to The Andersons, Inc.
common shareholders

$

0.48



$

0.20



$

0.23



$

0.56


Diluted earnings attributable to The Andersons, Inc.
common shareholders

$

0.48



$

0.19



$

0.23



$

0.55


 

The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)


(in thousands)

December 31, 2020


December 31, 2019

Assets




Current assets:




  Cash, cash equivalents and restricted cash

$

29,123



$

54,895


  Accounts receivable, net

659,834



536,367


  Inventories

1,300,693



1,170,536


  Commodity derivative assets - current

320,706



107,863


  Other current assets

106,053



75,681


Total current assets

2,416,409



1,945,342


Other assets:




Goodwill

135,709



135,360


Other intangible assets, net

142,940



175,312


Right of use assets, net

56,031



76,401


Other assets, net

49,907



45,610


Total other assets

384,587



432,683


Rail assets leased to others, net

591,946



584,298


Property, plant and equipment, net

879,179



938,418


Total assets

$

4,272,121



$

3,900,741






Liabilities and equity




Current liabilities:




  Short-term debt

$

403,703



$

147,031


  Trade and other payables

957,683



873,081


  Customer prepayments and deferred revenue

180,160



133,585


  Commodity derivative liabilities – current

146,990



46,942


  Current maturities of long-term debt

75,475



62,899


  Accrued expenses and other current liabilities

167,671



176,381


Total current liabilities

1,931,682



1,439,919


Long-term lease liabilities

37,177



51,091


Long-term debt, less current maturities

916,540



1,016,248


Deferred income taxes

170,147



146,155


Other long-term liabilities

55,915



51,673


Total liabilities

3,111,461



2,705,086


Total equity

1,160,660



1,195,655


Total liabilities and equity

$

4,272,121



$

3,900,741


 

The Andersons, Inc.
Consolidated Statements of Cash Flows
(unaudited)



Three months ended
December 31,


Twelve months ended
December 31,


2020


2019


2020


2019

Operating Activities








Net income (loss)

$

14,649



$

5,667



$

(14,215)



$

15,060


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








Depreciation and amortization

47,471



47,770



188,638



146,166


Bad debt expense

(1,007)



392



7,042



4,007


Equity in (earnings) losses of affiliates, net of dividends

(410)



4,777



(638)



7,671


Loss (gain) on sales of assets, net

825



(7,164)



(37)



(7,063)


Gains on sales of Rail assets and related leases, net

(474)



(2,607)



(649)



(4,122)


Stock based compensation expense

2,441



4,592



10,183



16,229


Deferred income tax

4,469



16,785



26,386



5,114


Inventory write-down

743





11,676




Asset impairment



38,131





41,212


Gain from remeasurement of equity method investments, net



(35,214)





(35,214)


Other

5,931



(97)



10,072



3,540


Changes in operating assets and liabilities:








Accounts receivable

(126,550)



(3,392)



(128,502)



1,487


Inventories

(539,761)



(407,198)



(139,499)



(1,578)


Commodity derivatives

(112,596)



(8,228)



(115,170)



21,714


Other assets

(18,865)



11,715



(53,208)



30,497


Payables and other accrued expenses

452,911



363,008



123,489



103,842


Net cash provided by (used in) operating activities

(270,223)



28,937



(74,432)



348,562


Investing Activities








Acquisition of businesses, net of cash acquired



47,042





(102,580)


Purchases of Rail assets

(1,481)



(36,813)



(27,739)



(105,254)


Proceeds from sale of Rail assets

2,303



8,908



10,077



18,090


Purchases of property, plant and equipment and capitalized software

(17,733)



(39,872)



(77,147)



(165,223)


Proceeds from sale of assets and businesses

524



29,766



11,112



30,617


Purchase of investments

(210)





(3,059)



(1,490)


Other



808





808


Net cash (used in) provided by investing activities

(16,597)



9,839



(86,756)



(325,032)


Financing Activities








Net change in short-term borrowings

299,154



7,638



254,971



(278,824)


Proceeds from issuance of long-term debt

258,000



110,896



471,906



922,594


Payments of long-term debt

(249,017)



(114,597)



(559,711)



(608,483)


Proceeds from noncontrolling interest owner

2,082





8,575



4,714


Distributions to noncontrolling interest owner





(10,322)




Payments of debt issuance costs

(648)



(912)



(898)



(6,561)


Dividends paid

(5,770)



(5,547)



(23,004)



(22,118)


Other

(1,078)



(1,028)



(5,221)



(2,615)


Net cash (used in) provided by financing activities

302,723



(3,550)



136,296



8,707


Effect of exchange rates on cash, cash equivalents and restricted cash

(473)



(1,630)



(880)



65


Increase (decrease) in cash, cash equivalents and restricted cash

15,430



33,596



(25,772)



32,302


Cash, cash equivalents and restricted cash at beginning of period

13,693



21,299



54,895



22,593


Cash, cash equivalents and restricted cash at end of period

$

29,123



$

54,895



$

29,123



$

54,895


 

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)

2020


2019


2020


2019

Net income attributable to The Andersons, Inc.

$

15,991



$

6,649



$

7,710



$

18,307


Items impacting other income, net of tax:








Transaction related stock compensation

946



1,998



4,206



9,337


Severance costs

528





6,091




Termination of interest rate derivatives and debt fees

2,849





2,849




One time acquisition costs



2,158





8,007


Asset impairment including equity method investments



43,097





46,178


Gain from remeasurement of equity method investments, net



(36,287)





(35,214)


Gain on sales of assets



(8,646)





(8,646)


Income tax impact of adjustments (a)

(962)



9,386



(17,924)



5,051


Total adjusting items, net of tax

3,361



11,706



(4,778)



24,713


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

$

19,352



$

18,355



$

2,932



$

43,020










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

$

0.48



$

0.19



$

0.23



$

0.55










Impact on diluted earnings (loss) per share

$

0.11



$

0.36



$

(0.14)



$

0.75


Adjusted diluted earnings (loss) per share

$

0.59



$

0.55



$

0.09



$

1.30




(a)

Income tax adjustments include $(14.8) million due to CARES Act benefits and certain discrete items in 2020 year to date. Quarter to date income
tax adjustments due to CARES Act benefits were de minimus.



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.
Adjusted Earnings Before Taxes, Interest, and Depreciation and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)


(in thousands)

Trade


 Ethanol


 Plant
Nutrient


 Rail


 Other


 Total

Three months ended December 31, 2020












Net income (loss)

$

28,337



$

(4,795)



$

3,187



$

(867)



$

(11,213)



$

14,649


Interest expense (income)

5,350



1,553



1,270



5,459



(340)



13,292


Tax provision









8,119



8,119


Depreciation and amortization

11,149



19,438



6,386



8,903



1,595



47,471


EBITDA

44,836



16,196



10,843



13,495



(1,839)



83,531


Adjusting items impacting EBITDA:












Transaction related stock compensation

946











946


Severance Costs









528



528


Total adjusting items

946









528



1,474


Adjusted EBITDA

$

45,782



$

16,196



$

10,843



$

13,495



$

(1,311)



$

85,005














Three months ended December 31, 2019












Net income (loss)

$

(19,938)



$

42,098



$

4,625



$

4,461



$

(25,579)



$

5,667


Interest expense (income)

6,103



2,175



1,476



4,415



(91)



14,078


Tax provision









14,708



14,708


Depreciation and amortization

13,450



16,633



6,207



8,745



2,735



47,770


EBITDA

(385)



60,906



12,308



17,621



(8,227)



82,223


Adjusting items impacting EBITDA:












Acquisition costs

833



1,325









2,158


Transaction related stock compensation

1,998











1,998


Asset impairments including equity method investments

40,420





2,175





502



43,097


Gain from remeasurement of equity method investments, net



(36,287)









(36,287)


Gain on sales of assets

(5,702)





(2,944)







(8,646)


Total adjusting items

37,549



(34,962)



(769)





502



2,320


Adjusted EBITDA

$

37,164



$

25,944



$

11,539



$

17,621



$

(7,725)



$

84,543


 

























(in thousands)

Trade


 Ethanol


 Plant
Nutrient


 Rail


 Other


 Total

Twelve months ended December 31, 2020












Net income (loss)

$

24,687



$

(47,338)



$

16,015



$

2,607



$

(10,186)



$

(14,215)


Interest expense (income)

21,974



7,461



5,805



17,491



(1,456)



51,275


Tax benefit









(10,259)



(10,259)


Depreciation and amortization

44,627



73,224



25,407



35,573



9,807



188,638


EBITDA

91,288



33,347



47,227



55,671



(12,094)



215,439


Adjusting items impacting EBITDA:












Transaction related stock compensation

4,206











4,206


Severance Costs









6,091



6,091


Total adjusting items

4,206









6,091



10,297


Adjusted EBITDA

$

95,494



$

33,347



$

47,227



$

55,671



$

(6,003)



$

225,736














Twelve months ended December 31, 2019












Net income (loss)

$

(17,328)



$

47,660



$

9,159



$

15,090



$

(39,521)



$

15,060


Interest expense (income)

34,843



943



7,954



16,486



(535)



59,691


Tax provision









13,051



13,051


Depreciation and amortization

50,973



23,727



25,985



34,122



11,359



146,166


EBITDA

68,488



72,330



43,098



65,698



(15,646)



233,968


Adjusting items impacting EBITDA:












Acquisition costs

6,682



1,325









8,007


Transaction related stock compensation

9,337











9,337


Asset impairments including equity method investments

43,501





2,175





502



46,178


Gain from remeasurement of equity method investments, net

1,073



(36,287)









(35,214)


Gain on sales of assets

(5,702)





(2,944)







(8,646)


Total adjusting items

54,891



(34,962)



(769)





502



19,662


Adjusted EBITDA

$

123,379



$

37,368



$

42,329



$

65,698



$

(15,144)



$

253,630



Adjusted EBITDA is defined as earnings before taxes, interest, 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.
Segment Data (unaudited)


(in thousands)

Trade


Ethanol


Plant
Nutrient


Rail


Other


Total

Three months ended December 31, 2020












Sales and merchandising revenues

$

1,979,272



$

373,517



$

155,514



$

34,614



$



$

2,542,917


Gross profit

90,796



2,562



30,623



9,710





133,691


Equity in earnings of affiliates, net

410











410


Other income, net

5,089



1,330



339



342



651



7,751


Income (loss) before income taxes

28,337



(4,795)



3,187



(867)



(3,094)



22,768


Loss attributable to the noncontrolling interests



(1,342)









(1,342)


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

$

28,337



$

(3,453)



$

3,187



$

(867)



$

(3,094)



$

24,110


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

946







2,849



528



4,323


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

$

29,283



$

(3,453)



$

3,187



$

1,982



$

(2,566)



$

28,433














Three months ended December 31, 2019












Sales and merchandising revenues

$

1,391,151



$

312,860



$

138,182



$

43,410



$



$

1,885,603


Gross profit

87,652



12,594



23,521



14,592





138,359


Equity in losses of affiliates, net

(4,992)











(4,992)


Other income, net (c)

8,365



36,503



3,256



191



359



48,674


Income (loss) before income taxes

(19,938)



42,098



4,625



4,461



(10,871)



20,375


Loss attributable to the noncontrolling interests



(982)









(982)


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

$

(19,938)



$

43,080



$

4,625



$

4,461



$

(10,871)



$

21,357


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

37,549



(34,962)



(769)





502



2,320


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

$

17,611



$

8,118



$

3,856



$

4,461



$

(10,369)



$

23,677




(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. 2020 adjustment to the Rail segment relates to the termination of interest rate derivatives
and debt fees which were recorded in Interest expense, net and can be found in the reconciliation to adjusted net income table.

(c) 

Gain from remeasurement of equity method investment within the Ethanol segment is included in Other income, net for the three months ended
December 31, 2019.

 

























(in thousands)

Trade


Ethanol


Plant
Nutrient


Rail


Other


Total

Twelve months ended December 31, 2020












Sales and merchandising revenues

$

6,141,402



$

1,260,259



$

662,959



$

143,816



$



$

8,208,436


Gross profit

278,216



(18,267)



106,248



38,725





404,922


Equity in earnings of affiliates, net

638











638


Other income, net

11,954



2,795



1,274



2,885



1,540



20,448


Income (loss) before income taxes

24,687



(47,338)



16,015



2,607



(20,445)



(24,474)


Loss attributable to the noncontrolling interests



(21,925)









(21,925)


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

$

24,687



$

(25,413)



$

16,015



$

2,607



$

(20,445)



$

(2,549)


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

4,206







2,849



6,091



13,146


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

$

28,893



$

(25,413)



$

16,015



$

5,456



$

(14,354)



$

10,597














Twelve months ended December 31, 2019












Sales and merchandising revenues

$

6,144,526



$

1,211,997



$

646,730



$

166,938



$



$

8,170,191


Gross profit

329,096



32,567



99,104



57,125





517,892


Equity in losses of affiliates, net

(6,835)



(524)









(7,359)


Other income, net (c) 

10,070



37,199



4,903



1,583



1,568



55,323


Income (loss) before income taxes

(17,328)



47,660



9,159



15,090



(26,470)



28,111


Loss attributable to the noncontrolling interests



(3,247)









(3,247)


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

$

(17,328)



$

50,907



$

9,159



$

15,090



$

(26,470)



$

31,358


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

54,891



(34,962)



(769)





502



19,662


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

$

37,563



$

15,945



$

8,390



$

15,090



$

(25,968)



$

51,020


(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. 2020 adjustment to the Rail segment relates to the termination of interest rate derivatives and
debt fees which were recorded in Interest expense, net and can be found in the reconciliation to adjusted net income table.

(c)

Gains and losses from remeasurements of equity method investments within the Ethanol and Trade segments are included in Other income, net for
the twelve months ended December 31, 2019.

 

The 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, except per share data)

2020


2019


2020


2019

Cash provided by (used in) operating activities

$

(270,223)



$

28,937



$

(74,432)



$

348,562


Changes in operating assets and liabilities








Accounts receivable

(126,550)



(3,392)



(128,502)



1,487


Inventories

(539,761)



(407,198)



(139,499)



(1,578)


Commodity derivatives

(112,596)



(8,228)



(115,170)



21,714


Other assets

(18,865)



11,715



(53,208)



30,497


Payables and accrued expenses

452,911



363,008



123,489



103,842


Total changes in operating assets and liabilities

(344,861)



(44,095)



(312,890)



155,962


Less: changes in CARES Act tax refund receivable





(37,564)




Cash from operations before working capital changes

$

74,638



$

73,032



$

200,894



$

192,600



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.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/the-andersons-inc-reports-fourth-quarter-results-301229313.html

SOURCE The Andersons, Inc.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.