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The Andersons, Inc. Reports Fourth Quarter Results; Sets Earnings Records

MAUMEE, Ohio, Feb. 15, 2022 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter ended December 31, 2021.

Fourth Quarter Highlights:

  • Company reported net income attributable to The Andersons from continuing operations of $32.8 million, or $0.95 per diluted share, and adjusted net income from continuing operations of $39.2 million, or $1.14 per diluted share
  • Company reported its best ever fourth quarter adjusted pretax income from continuing operations
  • Trade reported pretax income of $18.3 million and adjusted pretax income of $26.9 million driven by strong asset and merchandising income
  • Renewables (formerly Ethanol) reported pretax income attributable to the company of $26.5 million, the best fourth quarter since 2013 on strong margins
  • Plant Nutrient posted a record fourth quarter with pretax income of $15.9 million
  • Adjusted EBITDA from continuing operations of $130.5 million, also a record quarter

"I'm very pleased with our performance which includes record fourth quarter results for the company and for our Plant Nutrient business. We continued to execute well throughout a good 2021 harvest, particularly in the eastern grain belt, made good operating and commercial decisions and enjoyed additional profit from growth in new markets, such as renewable diesel and supply chain extensions with our new Swiss trading office. During 2021, our teams operated safely and effectively in these strong agriculture markets leading to each of our three business segments reaching record or near-record performance in the quarter," said President and CEO Pat Bowe

"We enjoyed strong renewable fuels margins in the fourth quarter; remained focused on risk management, effective hedging and strong operational performance; and continued to see good returns from co-products, particularly distillers' corn oil," added Bowe. "We continue to diversify revenues for this group into attractive new product lines; an example of this would be renewable diesel feedstocks. You will note that we have renamed our Ethanol segment 'Renewables' to reflect its broader scope of products and services. We continue to see robust activity in our Trade business profit centers and are focused on executing well and serving customer needs in a continuing volatile commodity environment. Finally, Plant Nutrient followed up a very strong first half with a great second half, leading to a record year. Fertilizer prices and farm income both remain high; we continue to receive good support from our suppliers in this time of tight stocks and expect continued strong performance as we move into 2022." 

"We have a robust pipeline of growth projects that we are evaluating which are aligned with our strategy," stated Bowe. "Our evaluation includes both financial and business considerations and we continue to exercise discipline in our diligence processes. We are focused on organic growth projects in grain, renewables, and fertilizer as well as potential acquisitions and investments."


$ in millions, except per share amounts     





Q4 2021

Q4 2020

Variance

YTD 2021

YTD 2020

Variance

Pretax Income (Loss) Attributable
to the Company1,2

$           43.9

$           25.0

$             18.9

$          128.9

$             (5.2)

$          134.1

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

52.5

26.5

26.0

126.7

5.1

121.6

     Trade1

26.9

29.3

(2.4)

82.9

28.9

54.0

     Renewables

26.5

(3.5)

30.0

49.3

(25.4)

74.7

     Plant Nutrient

15.9

3.2

12.7

42.6

16.0

26.6

     Other1

(16.8)

(2.6)

(14.2)

(48.2)

(14.4)

(33.8)

Net Income

Attributable to the Company2

32.8

17.3

15.5

99.7

5.8

93.9

Adjusted Net Income (Loss)

Attributable to the Company1,2

39.2

18.5

20.7

98.0

(1.2)

99.2

Diluted Earnings Per Share (EPS)2

0.95

0.52

0.43

2.94

0.17

2.77

Adjusted Diluted EPS1,2

1.14

0.56

0.58

2.89

(0.04)

2.93

EBITDA1,2

121.9

70.0

51.9

355.2

159.8

195.4

Adjusted EBITDA1,2

$         130.5

$           71.5

$             59.0

$          353.0

$          170.1

$          182.9



1

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

 

Cash, Liquidity and Long-Term Debt Management

"Strong operating cash flows and disciplined capital spending decisions continued into the fourth quarter," said Executive Vice President and CFO Brian Valentine. "We are pleased with the progress we made in reducing long-term debt, which declined by more than $300 million in 2021. We have achieved our stated goal of long-term debt to EBITDA of less than 2.5 times and are well-positioned to fund good growth projects with appropriate returns."

The company generated $84.4 million and $74.6 million in cash from operations before working capital changes during the fourth quarters of 2021 and 2020, respectively. For the full years 2021 and 2020, the company generated $322.0 million and $200.9 million in cash from operations before working capital changes, respectively. In light of continuing high commodity prices, capacity in short-term funding has been maintained.

Working capital increased significantly, a result of increases in readily marketable inventory. Much of this increase is driven by increased grain on hand and continued high commodity prices.

Fourth Quarter Segment Overview

Trade Records Strong Results Driven by Grain Assets Performance

Trade recorded adjusted pretax income of $26.9 million for the quarter, a slight decline when compared to adjusted pretax income of $29.3 million in the fourth quarter of 2020. An asset impairment charge of $8.3 million for certain assets primarily relating to the remaining sand processing business was the main adjustment to pretax income in 2021.  

Strong elevation margins in core grain assets and the additional ag supply chain businesses have added incremental gross profit and earnings. The quarter over quarter decrease reflects exceptional 2020 fourth quarter results in propane and cottonseed performance that did not fully repeat as well as reduced earnings in the sand business.  

Ag supply chain opportunities are expected to remain strong into 2022. Continued demand and uncertainty about growing conditions in global grain production regions has resulted in continued high commodity prices post-harvest and can make U.S. grain production increasingly important. 

Trade's fourth quarter adjusted EBITDA was $41.9 million, compared to fourth quarter 2020 adjusted EBITDA of $45.8 million. Its full year adjusted EBITDA increased from $95.5 million in 2020 to a record $150.9 million in 2021, primarily as a result of improved full year elevation margin and merchandising improvements.

Renewables Posts Best Fourth Quarter Since 2013

The Renewables segment reported pretax income attributable to the company of $26.5 million in the fourth quarter compared to a pretax loss attributable to the company of $3.5 million in the same period in 2020. Ethanol crush margins for the 2021 fourth quarter were significantly higher than those realized in the fourth quarter of 2020 and record corn oil prices also contributed to the improved results.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the merchandising business. Hedges on forward ethanol sales are in place for a portion of expected 2022 production. More recently, spot ethanol crush margins have declined and are expected to be closer to historical averages and seasonally move with driving demand. Corn oil demand is expected to remain high and merchandising of third-party renewable feedstocks should remain strong. 

Renewables recorded EBITDA of $78.0 million in the fourth quarter of 2021, up significantly from 2020 fourth quarter EBITDA of $16.2 million.

Plant Nutrient Achieves Record Year

Plant Nutrient recorded pretax income of $15.9 million in the fourth quarter compared to pretax income of $3.2 million in the same period of 2020. Gross profit increased over $8.6 million from strong margins in agricultural and industrial product lines resulting from continued strength in both fertilizer prices and farmer income. While a smaller portion of the business, manufactured products were negatively impacted by raw material and plant labor availability as well as wage inflation. Full year pretax income of $42.6 million was also a record.

Plant Nutrient's current quarter EBITDA was $23.5 million compared to 2020 fourth quarter EBITDA of $10.8 million. For the full year, Plant Nutrient recorded EBITDA of $72.9 million in 2021, an increase of more than 50% from $47.2 million in 2020 as a result of margin expansion and strong demand. Agricultural fundamentals remain strong. Fertilizers will benefit from continuing limited supply and elevated fertilizer prices but are not expected to experience significant price increases as in 2021.

Conference Call

The company will host a webcast on Wednesday, February 16, 2022, at 11 a.m. EST, to discuss its performance and provide its outlook for 2022. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 3641509). 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/bighnf82. 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 pretax income (loss) attributable to the company from continuing operations, adjusted pretax income (loss) attributable to the company from continuing operations, adjusted net income (loss) attributable to the company from continuing operations, adjusted diluted earnings (loss) per share from continuing operations; earnings before interest, taxes, depreciation and amortization (or EBITDA); EBITDA from continuing operations; 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 (loss) from continuing operations; income (loss) before income taxes from continuing operations; Net income attributable to The Andersons, Inc.; 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

The Andersons, Inc., celebrating 75 years of service and named to Forbes® list of America's Best Employers for 2022, is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and plant nutrient sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.

 

 

The Andersons, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

 



Three months ended
December 31,


Twelve months ended
December 31,

(in thousands, except per share data)

2021


2020


2021


2020

Sales and merchandising revenues

$ 3,782,702


$ 2,508,303


$  12,612,050


$ 8,064,620

Cost of sales and merchandising revenues

3,588,688


2,384,322


12,019,353


7,698,423

Gross profit

194,014


123,981


592,697


366,197

Operating, administrative and general expenses

110,919


100,332


423,752


377,695

Asset impairment

8,321



8,321


Interest expense, net

8,444


7,833


37,292


33,784

Other income:








Equity in earnings of affiliates, net

2,453


410


4,842


638

Other income, net

7,853


7,409


32,596


17,563

Income (loss) before income taxes from continuing operations

76,636


23,635


160,770


(27,081)

Income tax provision (benefit) from continuing operations

11,163


7,718


29,228


(10,910)

Net income (loss) from continuing operations

65,473


15,917


131,542


(16,171)

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

(3,129)


(1,268)


4,324


1,956

Net income (loss)

62,344


14,649


135,866


(14,215)

Net income (loss) attributable to the noncontrolling interest

32,702


(1,342)


31,880


(21,925)

Net income attributable to The Andersons, Inc.

$      29,642


$      15,991


$    103,986


$         7,710









Earnings (loss) per share attributable to

The Andersons, Inc. common shareholders:








Basic earnings (loss):








Continuing operations

$           0.98


$           0.52


$           2.99


$           0.17

Discontinued operations

(0.09)


(0.04)


0.13


0.06


$           0.89


$           0.48


$           3.12


$           0.23

Diluted earnings (loss):








Continuing operations

$           0.95


$           0.52


$           2.94


$           0.17

Discontinued operations

(0.09)


(0.04)


0.13


0.06


$           0.86


$           0.48


$           3.07


$           0.23

 

 

The Andersons, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

 


(in thousands)

December 31, 2021


December 31, 2020

Assets




Current assets:




Cash and cash equivalents

$                    216,444


$                      29,123

Accounts receivable, net

835,180


641,326

Inventories

1,814,538


1,293,066

Commodity derivative assets – current

410,813


320,706

Current assets held-for-sale

20,885


32,659

Other current assets

74,468


99,529

Total current assets

3,372,328


2,416,409

Other assets:




Goodwill

129,342


131,542

Other intangible assets, net

117,137


140,084

Right of use assets, net

52,146


33,387

Other assets held-for-sale

43,169


643,474

Other assets, net

69,068


46,914

Total other assets

410,862


995,401

Property, plant and equipment, net

786,029


860,311

Total assets

$                 4,569,219


$                 4,272,121





Liabilities and equity




Current liabilities:




Short-term debt

$                    501,792


$                    403,703

Trade and other payables

1,199,324


954,809

Customer prepayments and deferred revenue

358,119


178,226

Commodity derivative liabilities – current

128,911


146,990

Current maturities of long-term debt

32,256


69,366

Current liabilities held-for-sale

13,379


25,277

Accrued expenses and other current liabilities

230,148


153,311

Total current liabilities

2,463,929


1,931,682

Long-term lease liabilities

31,322


19,835

Long-term debt, less current maturities

600,487


886,453

Deferred income taxes

71,127


170,147

Other long-term liabilities held-for-sale

16,119


48,096

Other long-term liabilities

78,531


55,248

Total liabilities

3,261,515


3,111,461

Total equity

1,307,704


1,160,660

Total liabilities and equity

$                 4,569,219


$                 4,272,121

 

 

The Andersons, Inc.

Consolidated Statements of Cash Flows

(unaudited)

 



Three months ended

December 31,


Twelve months ended
December 31,

(In thousands)

2021


2020


2021


2020

Operating Activities








Net income (loss) from continuing operations

$          65,473


$          15,917


$        131,542


$         (16,171)

Income from discontinued operations, net of income taxes

(3,129)


(1,268)


4,324


1,956

Net income (loss)

62,344


14,649


135,866


(14,215)

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








Depreciation and amortization

36,797


47,471


178,934


188,638

Bad debt expense, net

2,419


(1,007)


237


7,042

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

(2,453)


(410)


(4,842)


(638)

Gain on sales of assets, net

321


351


(6,184)


(686)

Stock-based compensation expense

4,311


2,441


11,038


10,183

Deferred federal income tax

(10,893)


4,469


(104,618)


26,386

Inventory write down


743


3,399


11,676

Gain on sale of business from continuing operations



(14,619)


Loss on sale of business from discontinued operations



1,491


Asset impairment

8,947



8,947


Other

141


5,931


7,146


10,072

Changes in operating assets and liabilities:








Accounts receivable

(94,100)


(126,550)


(184,002)


(128,502)

Inventories

(794,938)


(539,761)


(528,073)


(139,499)

Commodity derivatives

51,553


(112,596)


(107,188)


(115,170)

Other current and non-current assets

(113,046)


(18,865)


(116,403)


(53,208)

Payables and other current and non-current liabilities

678,480


452,911


667,821


123,489

Net cash used in operating activities

(170,117)


(270,223)


(51,050)


(74,432)

Investing Activities








Acquisition of businesses, net of cash acquired

(11,425)



(11,425)


Purchases of property, plant and equipment and capitalized software

(23,036)


(17,733)


(75,766)


(77,147)

Proceeds from sale of assets

509


2,991


4,508


11,112

Purchase of investments

(250)


(210)


(6,243)


(3,059)

Proceeds from sale of business from continuing operations


(2,467)


18,130


Proceeds from sale of business from discontinued operations



543,102


Purchases of Rail assets


(1,481)


(6,039)


(27,739)

Proceeds from sale of Rail assets

445


2,303


19,150


10,077

Other

1,482



1,831


Net cash provided by (used in) investing activities

(32,275)


(16,597)


487,248


(86,756)

Financing Activities








Net receipts (payments) under lines of credit

218,384


299,154


(105,895)


254,971

Proceeds from issuance of short-term debt



608,250


Payments of short-term debt



(408,250)


Proceeds from issuance of long-term debt

16,200


258,000


203,000


471,906

Payments of long-term debt

(33,234)


(249,017)


(530,733)


(559,711)

Contributions from noncontrolling interest owner


2,083


4,655


8,576

Distributions to noncontrolling interest owner



(25)


(10,322)

Payments of debt issuance costs

(633)


(648)


(2,692)


(898)

Dividends paid

(6,243)


(5,770)


(23,746)


(23,004)

Proceeds from exercises of stock options

6,667



6,667


Other

737


(1,079)



(5,222)

Net cash (used in) provided by financing activities

201,878


302,723


(248,769)


136,296

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

84


(473)


(108)


(880)

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

(430)


15,430


187,321


(25,772)

Cash, cash equivalents and restricted cash at beginning of year

216,874


13,693


29,123


54,895

Cash, cash equivalents and restricted cash at end of year

$        216,444


$          29,123


$        216,444


$          29,123

 

 

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)

2021


2020


2021


2020

Net income (loss) from continuing operations

$       65,473


$       15,917


$     131,542


$     (16,171)

Net income (loss) attributable to noncontrolling interests

32,702


(1,342)


31,880


(21,925)

Net income (loss) from continuing operations

attributable to The Andersons, Inc.

32,771


17,259


99,662


5,754

Items impacting other income, net of tax:








Transaction related stock compensation

274


946


1,274


4,206

Asset impairment

8,321



8,321


Loss on cost method investment



2,784


Gain on sale of a business



(14,619)


Severance costs


528



6,091

Income tax impact of adjustments (a)

(2,148)


(250)


561


(17,212)

Total adjusting items, net of tax

6,447


1,224


(1,679)


(6,915)

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

$       39,218


$       18,483


$       97,983


$        (1,161)









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

$           0.95


$           0.52


$           2.94


$           0.17









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

$           0.19


$           0.04


$          (0.05)


$          (0.21)

Adjusted diluted earnings (loss) per share attributable to The
Andersons, Inc. common shareholders from continuing operations

$           1.14


$           0.56


$           2.89


$          (0.04)



(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 in 2020 due to CARES Act benefits were de minimis.


Adjusted net income (loss) attributable to The Andersons, Inc. from continuing operations reflects reported net income (loss) available to The Andersons, Inc.
common shareholders from continuing operations 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) attributable to The Andersons, Inc. from continuing operations 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.

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

A non-GAAP financial measure

(unaudited)

 


Continuing Operations


Discontinued
Operations


Total
Company

(in thousands)

Trade


Renewables


 Plant
Nutrient


 Other


 Total


Rail


Three months ended December 31, 2021














Net income (loss)

$ 18,315


$       59,206


$  15,929


$ (27,977)


$  65,473


$            (3,129)


$    62,344

Interest expense (income)

3,942


1,850


997


1,655


8,444


69


8,513

Tax provision (benefit)




11,163


11,163


3,759


14,922

Depreciation and amortization

11,018


16,934


6,612


2,233


36,797



36,797

EBITDA

33,275


77,990


23,538


(12,926)


121,877


699


122,576

Adjusting items impacting EBITDA:














Transaction related stock compensation

274





274



274

Asset impairments

8,321





8,321



8,321

Total adjusting items

8,595





8,595



8,595

Adjusted EBITDA

$ 41,870


$       77,990


$  23,538


$ (12,926)


$  130,472


$                699


$  131,171















Three months ended December 31, 2020














Net income (loss)

$ 28,337


$        (4,795)


$    3,187


$ (10,812)


$  15,917


$            (1,268)


$    14,649

Interest expense (income)

5,350


1,553


1,270


(340)


7,833


5,459


13,292

Tax provision (benefit)




7,718


7,718


401


8,119

Depreciation and amortization

11,149


19,438


6,386


1,595


38,568


8,903


47,471

EBITDA

44,836


16,196


10,843


(1,839)


70,036


13,495


83,531

Adjusting items impacting EBITDA:














Transaction related stock compensation

946





946



946

Severance costs




528


528



528

Total adjusting items

946




528


1,474



1,474

Adjusted EBITDA

$ 45,782


$       16,196


$  10,843


$  (1,311)


$  71,510


$           13,495


$    85,005

 


Continuing Operations


Discontinued
Operations


Total
Company

(in thousands)

Trade


Renewables


 Plant
Nutrient


 Other


 Total


Rail


Twelve months ended December 31, 2021














Net income (loss)

$  87,946


$       81,205


$  42,615


$ (80,224)


$  131,542


$           4,324


$  135,866

Interest expense (income)

23,688


7,602


4,355


1,647


37,292


8,783


46,075

Tax provision (benefit)




29,228


29,228


3,331


32,559

Depreciation and amortization

44,335


77,542


25,957


9,340


157,174


21,760


178,934

EBITDA

155,969


166,349


72,927


(40,009)


355,236


38,198


393,434

Adjusting items impacting EBITDA:














Transaction related stock compensation

1,274





1,274



1,274

Asset impairments

8,321





8,321



8,321

Loss on cost method investment




2,784


2,784



2,784

Gain on sale of a business

(14,619)





(14,619)



(14,619)

Total adjusting items

(5,024)




2,784


(2,240)



(2,240)

Adjusted EBITDA

$  150,945


$     166,349


$  72,927


$ (37,225)


$  352,996


$         38,198


$  391,194















Twelve months ended December 31, 2020














Net income (loss)

$  24,687


$      (47,338)


$  16,015


$  (9,535)


$ (16,171)


$           1,956


$   (14,215)

Interest expense (income)

21,974


7,461


5,805


(1,456)


33,784


17,491


51,275

Tax provision (benefit)




(10,910)


(10,910)


651


(10,259)

Depreciation and amortization

44,627


73,224


25,407


9,807


153,065


35,573


188,638

EBITDA

91,288


33,347


47,227


(12,094)


159,768


55,671


215,439

Adjusting items impacting EBITDA:














Transaction related stock compensation

4,206





4,206



4,206

Severance costs




6,091


6,091



6,091

Total adjusting items

4,206




6,091


10,297



10,297

Adjusted EBITDA

$  95,494


$       33,347


$  47,227


$  (6,003)


$  170,065


$         55,671


$  225,736

 

Adjusted EBITDA is defined as earnings before interest, taxes, and depreciation and amortization, adjusted for specified items. The company calculates
adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to
net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional
information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods.
Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable
GAAP financial measure.


 

 

The Andersons, Inc.

Segment Data

(unaudited)

 


(in thousands)

Trade


Renewables


Plant
Nutrient


Other


Total

Three months ended December 31, 2021










Sales and merchandising revenues

$  2,781,849


$     766,675


$     234,178


$              —


$  3,782,702

Gross profit

87,098


67,676


39,240



194,014

Operating, administrative and general expenses

65,570


7,772


22,697


14,880


110,919

Other income (expense), net

6,597


1,152


383


(279)


7,853

Income (loss) before income taxes from continuing operations

18,315


59,206


15,929


(16,814)


76,636

Income attributable to the noncontrolling interests


32,702




32,702

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

$       18,315


$       26,504


$       15,929


$     (16,814)


$       43,934

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

8,595





8,595

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

$       26,910


$       26,504


$       15,929


$     (16,814)


$       52,529











Three months ended December 31, 2020










Sales and merchandising revenues

$  1,979,272


$     373,517


$     155,514


$              —


$  2,508,303

Gross profit

90,796


2,562


30,623



123,981

Operating, administrative and general expenses

62,608


7,134


26,505


4,085


100,332

Other income, net

5,089


1,330


339


651


7,409

Income (loss) before income taxes from continuing operations

28,337


(4,795)


3,187


(3,094)


23,635

Loss attributable to the noncontrolling interests


(1,342)




(1,342)

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

$       28,337


$        (3,453)


$         3,187


$       (3,094)


$       24,977

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

946




528


1,474

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

$       29,283


$        (3,453)


$         3,187


$       (2,566)


$       26,451



(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.

 












(in thousands)

Trade


Renewables


Plant
Nutrient


Other


Total

Twelve months ended December 31, 2021










Sales and merchandising revenues

$  9,304,357


$  2,440,798


$     866,895


$              —


$  12,612,050

Gross profit

335,682


116,626


140,389



592,697

Operating, administrative and general expenses

251,605


31,019


95,547


45,581


423,752

Other income (loss), net

31,036


3,200


2,128


(3,768)


32,596

Income (loss) before income taxes from continuing operations

87,946


81,205


42,615


(50,996)


160,770

Income attributable to the noncontrolling interests


31,880




31,880

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

$       87,946


$       49,325


$       42,615


$     (50,996)


$     128,890

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

(5,024)




2,784


(2,240)

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

$       82,922


$       49,325


$       42,615


$     (48,212)


$     126,650











Twelve months ended December 31, 2020










Sales and merchandising revenues

$  6,141,402


$  1,260,259


$     662,959


$              —


$  8,064,620

Gross profit (loss)

278,216


(18,267)


106,248



366,197

Operating, administrative and general expenses

244,147


24,405


85,702


23,441


377,695

Other income, net

11,954


2,795


1,274


1,540


17,563

Income (loss) before income taxes from continuing operations

24,687


(47,338)


16,015


(20,445)


(27,081)

Loss attributable to the noncontrolling interests


(21,925)




(21,925)

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

$       24,687


$      (25,413)


$       16,015


$     (20,445)


$       (5,156)

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

4,206




6,091


10,297

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

$       28,893


$      (25,413)


$       16,015


$     (14,354)


$         5,141



(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.

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)

2021


2020


2021


2020

Cash used in operating activities

$   (170,117)


$   (270,223)


$     (51,050)


$     (74,432)

Changes in operating assets and liabilities








Accounts receivable

(94,100)


(126,550)


(184,002)


(128,502)

Inventories

(794,938)


(539,761)


(528,073)


(139,499)

Commodity derivatives

51,553


(112,596)


(107,188)


(115,170)

Other current and non-current assets

(113,046)


(18,865)


(116,403)


(53,208)

Payables and other current and non-current liabilities

678,480


452,911


667,821


123,489

Total changes in operating assets and liabilities

(272,051)


(344,861)


(267,845)


(312,890)

Adjusting items impacting cash from operations before
working capital changes:








Changes in CARES Act tax refund receivable



27,697


(37,564)

Changes in deferred income taxes as a result of the
Rail leasing sale

(95,097)




Taxes paid as a result of the Rail leasing sale

77,537



77,537


Cash from operations before working capital changes

$       84,374


$       74,638


$     322,029


$     200,894

 

Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working
capital within the statement of cash flows. The company calculates cash from operations by eliminating the effect of changes in accounts receivable,
inventories, commodity derivatives, other current and non-current assets, and payables and other current and non-current liabilities; and adjusted by specific
items from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful
measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying
business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and
is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.

 

SOURCE The Andersons, Inc.

For further information: Investor Relations, Mike Hoelter, Vice President, Corporate Controller and Investor Relations, Phone: 419-897-6715, E-mail: investorrelations@andersonsinc.com