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Cision Canada
04-08-2025
- Business
- Cision Canada
The Andersons, Inc. Reports Second Quarter Results and Acquires Full Ownership Interest in The Andersons Marathon Holdings LLC
MAUMEE, Ohio, Aug. 4, 2025 /CNW/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the second quarter ended June 30, 2025. Additionally, the Company announces it has acquired the full ownership interest in The Andersons Marathon Holdings LLC (TAMH). Second Quarter Highlights: Strategic Acquisition of Full Ownership Interest of TAMH: Acquired the remaining 49.9% ownership interest in TAMH from a subsidiary of Marathon Petroleum Corp. (Marathon) for $425 million, inclusive of $40 million of working capital (a net purchase price of $385 million) The transaction closed on July 31, 2025, funded with cash on hand and debt from existing credit facilities "Over the past couple of years, we have shared our intent to utilize a disciplined capital deployment approach to grow earnings through additional investment in ethanol. After evaluating several opportunities, we have acquired Marathon's ownership in TAMH, in line with our stated strategy. This transaction doubles our financial ownership in the ethanol industry, a key growth pillar within our Renewables strategy. Importantly, we currently operate the four plants with Andersons employees, thus limiting our execution risk. The acquisition is attractive from a financial perspective and we expect immediate accretion in earnings per share. These production facilities are poised to further benefit from increased support for renewable fuels," said President and CEO Bill Krueger. "Construction continues on our Houston port project, which was initiated to improve the efficiency and capacity of our grain operations and add export capacity for U.S. soybean meal, which should be supported by potential changes from the EPA's proposed renewable volume obligations (RVOs). We expect completion of this project by mid-2026. Finally, we are continuing to optimize our portfolio and improve the efficiency of our operations. Work continues on integrating the former Trade and Nutrient businesses, including the addition of Skyland Grain, LLC assets into our agribusiness portfolio. As we finish a successful wheat harvest, we are preparing our facilities for an anticipated large fall harvest. Near record corn plantings in the U.S. should provide opportunities for both our merchandising and grain asset footprint into 2026," continued Krueger. Strategic Acquisition of the Full Ownership Interest of TAMH TAMH operates four ethanol plants with total annual production capacity of 500 million gallons located in Albion, Michigan, Clymers, Indiana, Greenville, Ohio and Denison, Iowa. With this acquisition, The Andersons now owns 100% of TAMH. Upon completion of the transaction, TAMH was renamed The Andersons Renewables, LLC. "We are proud of what we built at TAMH through our partnership with Marathon and are excited to bring the business fully under The Andersons' leadership given its strong alignment with our long-term strategy. As the sole owner and operator of these assets, we will be able to streamline decision making and unlock greater efficiency," said Krueger. "We deeply appreciate our partnership with Marathon and look forward to continuing our long-standing commercial relationship. As one of the largest consumers of ethanol in the United States, Marathon remains a valued customer." The Andersons, Inc. was advised on the transaction by Goldman Sachs & Co. LLC. Cash, Liquidity, and Long-Term Debt Management "Our businesses continue to generate strong cash flows, allowing us to fund a significant portion of our growth projects internally. As such, our debt remains at a modest level and we funded this purchase with cash on hand and existing credit facilities," said Executive Vice President and CFO Brian Valentine. "As a result of this transaction, we will have unrestricted access to 100% of the cash flows from the TAMH entity, which will give us more flexibility to deploy capital across the entire enterprise. We remain below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet." Cash provided by operating activities was $299 million and $304 million in the second quarter of 2025 and 2024, respectively. Cash from operations before working capital changes in the same periods was $43 million and $89 million, respectively. Cash spent on capital projects in the quarter totaled $49 million, a $20 million increase from 2024. Second Quarter Segment Overview Nutrient Volumes and Margins Increase; Grain Markets Remain Over-Supplied Agribusiness recorded a pretax income of $19 million and adjusted pretax income attributable to the company of $17 million for the quarter, compared to pretax income of $29 million and adjusted pretax income of $33 million in the second quarter of 2024. Nutrient results improved year-over-year with increased sales volumes on customer demand for nitrogen due to the increase in planted corn acres. A surplus of grain and weak customer demand continue to exist in western markets. This has resulted in low grain prices and limited forward contracting. Both physical assets and merchandising have been impacted by these stagnant markets. An anticipated large harvest and on-farm storage limitations are expected to make large quantities of grain available at favorable values in the last half of 2025. This should provide sales and merchandising opportunities in the latter part of 2025 and into 2026. The balanced asset and merchandising portfolio enables opportunities in various market conditions, including this period of higher supply. Agribusiness's second quarter adjusted EBITDA was $46 million, compared to $56 million in 2024. Renewables with Solid Quarter on Efficient Operations The Renewables segment reported pretax income of $17 million and pretax income attributable to the company of $10 million in the second quarter. For the same period in 2024, the segment reported pretax income of $39 million and pretax income attributable to the company of $23 million. The ethanol plants continue to run efficiently, resulting in higher year-over-year yields and production. Lower board crush, higher eastern corn basis, and increased natural gas costs led to lower overall margins. Plant co-product values also declined, with corn-based feed ingredients continuing to compete against an oversupply of soybean meal. Although later than expected, an uptick in the ethanol board crush occurred in July and is expected to remain through the summer driving season. This expectation is bolstered by strong demand, including exports, and an expected reduction in corn costs post-harvest. In future quarters, results will include all the ethanol plants' earnings, including the share previously attributable to the noncontrolling interest. As the company previously consolidated the entity and managed the plants, there should be limited costs to achieve these accretive results. The regulatory environment may support new opportunities, including at our Clymers, Indiana, facility, where a Class VI well permit has been filed on our behalf with the EPA for potential carbon sequestration. Renewables had second quarter EBITDA of $30 million in 2025, compared to EBITDA of $52 million in 2024. Income Taxes The company recorded an income tax provision for the quarter of $8 million, resulting in an effective rate of 32% for the period. With the TAMH transaction and the elimination of a majority of our income attributable to noncontrolling interests, we now anticipate a full-year adjusted effective rate of approximately 22% - 25%. Conference Call The company will host a webcast on Tuesday, August 5, 2025, at 8:30 a.m. ET, to discuss its performance and provide its outlook for the remainder of 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 9563079). It is recommended that you call 10 minutes before the conference call begins. To access the webcast, click on the link: and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at Forward-Looking Statements This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Non-GAAP Measures This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein. Company Description The Andersons, Inc., is a North American agriculture company that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit 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) 2025 2024 2025 2024 Sales and merchandising revenues $ 3,135,869 $ 2,795,205 $ 5,794,967 $ 5,513,422 Cost of sales and merchandising revenues 2,977,453 2,619,834 5,483,679 5,209,731 Gross profit 158,416 175,371 311,288 303,691 Operating, administrative and general expenses 134,589 116,614 280,343 235,972 Interest expense, net 11,495 6,611 24,591 13,133 Other income, net 12,503 5,200 21,694 16,728 Income before income taxes 24,835 57,346 28,048 71,314 Income tax provision 8,028 4,876 5,910 6,179 Net income 16,807 52,470 22,138 65,135 Net income attributable to noncontrolling interests 8,950 16,494 13,997 23,578 Net income attributable to The Andersons, Inc. $ 7,857 $ 35,976 $ 8,141 $ 41,557 Earnings per share attributable to The Andersons, Inc. common shareholders: Basic earnings: $ 0.23 $ 1.06 $ 0.24 $ 1.22 Diluted earnings: $ 0.23 $ 1.05 $ 0.24 $ 1.21 The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) June 30, 2025 December 31, 2024 June 30, 2024 Assets Current assets: Cash and cash equivalents $ 350,970 $ 561,771 $ 530,386 Accounts receivable, net 783,892 764,550 743,550 Inventories 771,868 1,286,811 686,540 Commodity derivative assets – current 147,937 148,801 180,189 Other current assets 120,780 88,344 108,634 Total current assets 2,175,447 2,850,277 2,249,299 Property, plant and equipment, net 883,985 868,151 694,136 Other assets, net 387,059 402,886 356,378 Total assets $ 3,446,491 $ 4,121,314 $ 3,299,813 Liabilities and equity Current liabilities: Short-term debt $ 104,467 $ 166,614 $ 4,021 Trade and other payables 572,232 1,047,436 607,083 Customer prepayments and deferred revenue 73,545 194,025 124,424 Commodity derivative liabilities – current 79,253 59,766 128,847 Current maturities of long-term debt 64,210 36,139 27,671 Accrued expenses and other current liabilities 186,902 227,192 192,683 Total current liabilities 1,080,609 1,731,172 1,084,729 Long-term debt, less current maturities 578,464 608,151 549,378 Other long-term liabilities 176,908 182,155 145,444 Total liabilities 1,835,981 2,521,478 1,779,551 Total equity 1,610,510 1,599,836 1,520,262 Total liabilities and equity $ 3,446,491 $ 4,121,314 $ 3,299,813 The Andersons, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Six months ended June 30, (in thousands) 2025 2024 Operating Activities Net income $ 22,138 $ 65,135 Adjustments to reconcile net income to cash (used in) provided by operating activities: Depreciation and amortization 67,411 61,218 Other 10,311 10,821 Changes in operating assets and liabilities: Accounts receivable (23,396) 15,284 Inventories 521,356 477,723 Commodity derivatives 19,857 36,010 Other current and non-current assets (31,730) (50,587) Payables and other current and non-current liabilities (636,646) (550,797) Net cash (used in) provided by operating activities (50,699) 64,807 Investing Activities Purchases of property, plant and equipment and capitalized software (95,376) (55,389) Insurance proceeds 13,989 — Other 5,680 (2,749) Net cash used in investing activities (75,707) (58,138) Financing Activities Net payments under short-term lines of credit (64,875) (37,705) Proceeds from issuance of long-term debt 14,700 — Payments of long-term debt (16,645) (13,752) Dividends paid (13,367) (12,993) Value of shares withheld for taxes (3,931) (8,071) Distributions to noncontrolling interest owner (1,547) (47,405) Other (1,343) — Net cash used in financing activities (87,008) (119,926) Effect of exchange rates on cash and cash equivalents 2,613 (211) Decrease in cash and cash equivalents (210,801) (113,468) Cash and cash equivalents at beginning of period 561,771 643,854 Cash and cash equivalents at end of period $ 350,970 $ 530,386 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) 2025 2024 2025 2024 Net income $ 16,807 $ 52,470 $ 22,138 $ 65,135 Net income attributable to noncontrolling interests 8,950 16,494 13,997 23,578 Net income attributable to The Andersons, Inc. 7,857 35,976 8,141 41,557 Adjustments: Loss on investments 7,178 — 7,178 — Transaction related compensation 1,768 4,049 3,871 6,900 Severance expense 1,197 — 1,197 — Insured inventory and property recoveries, net (7,845) — (4,919) — Gain on sale of businesses, net (3,190) — (3,190) — Gain on deconsolidation of joint venture — — — (3,117) Income tax impact of adjustments 1 1,400 (531) 143 (252) Total adjusting items, net of tax 508 3,518 4,280 3,531 Adjusted net income attributable to The Andersons, Inc. $ 8,365 $ 39,494 $ 12,421 $ 45,088 Diluted earnings per share attributable to The Andersons, Inc. common shareholders $ 0.23 $ 1.05 $ 0.24 $ 1.21 Impact on diluted earnings per share $ 0.01 $ 0.10 $ 0.12 $ 0.10 Adjusted diluted earnings per share $ 0.24 $ 1.15 $ 0.36 $ 1.31 1 The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of 25% with the exception of the impairment of an equity method investment of $4.4 million in 2025 and certain transaction related compensation in 2024. 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 per share 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) Agribusiness Renewables Other Total Three months ended June 30, 2025 Sales and merchandising revenues $ 2,414,827 $ 721,042 $ — $ 3,135,869 Cost of sales and merchandising revenues 2,282,765 694,688 — 2,977,453 Gross profit 132,062 26,354 — 158,416 Operating, administrative and general expenses 114,012 8,951 11,626 134,589 Interest expense (income), net 11,331 725 (561) 11,495 Other income (loss), net 12,180 746 (423) 12,503 Income (loss) before income taxes 18,899 17,424 (11,488) 24,835 Income attributable to noncontrolling interests 1,171 7,779 — 8,950 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 17,728 $ 9,645 $ (11,488) $ 15,885 Adjustments to income (loss) before income taxes 2 (892) — — (892) Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 16,836 $ 9,645 $ (11,488) $ 14,993 Three months ended June 30, 2024 Sales and merchandising revenues $ 2,109,351 $ 685,854 $ — $ 2,795,205 Cost of sales and merchandising revenues 1,981,308 638,526 — 2,619,834 Gross profit 128,043 47,328 — 175,371 Operating, administrative and general expenses 97,906 8,046 10,662 116,614 Interest expense (income), net 6,098 996 (483) 6,611 Other income (loss), net 4,542 1,176 (518) 5,200 Income (loss) before income taxes 28,581 39,462 (10,697) 57,346 Income attributable to noncontrolling interests — 16,494 — 16,494 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 28,581 $ 22,968 $ (10,697) $ 40,852 Adjustments to income (loss) before income taxes 2 4,049 — — 4,049 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 32,630 $ 22,968 $ (10,697) $ 44,901 1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $3.3 million difference in insured inventory and property damages in the Agribusiness segment for the three months ended June 30, 2025. The Andersons, Inc. Segment Data (unaudited) (in thousands) Agribusiness Renewables Other Total Six months ended June 30, 2025 Sales and merchandising revenues $ 4,408,114 $ 1,386,853 $ — $ 5,794,967 Cost of sales and merchandising revenues 4,157,454 1,326,225 — 5,483,679 Gross profit 250,660 60,628 — 311,288 Operating, administrative and general expenses 238,501 18,734 23,108 280,343 Interest expense (income), net 24,157 1,423 (989) 24,591 Other income (loss), net 21,221 1,834 (1,361) 21,694 Income (loss) before income taxes 9,223 42,305 (23,480) 28,048 Income (loss) attributable to noncontrolling interests (3,351) 17,348 — 13,997 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 12,574 $ 24,957 $ (23,480) $ 14,051 Adjustments to income (loss) before income taxes 2 4,137 — — 4,137 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 16,711 $ 24,957 $ (23,480) $ 18,188 Six months ended June 30, 2024 Sales and merchandising revenues $ 4,170,790 $ 1,342,632 $ — $ 5,513,422 Cost of sales and merchandising revenues 3,943,228 1,266,503 — 5,209,731 Gross profit 227,562 76,129 — 303,691 Operating, administrative and general expenses 194,827 16,823 24,322 235,972 Interest expense (income), net 12,729 1,453 (1,049) 13,133 Other income (loss), net 11,113 5,936 (321) 16,728 Income (loss) before income taxes 31,119 63,789 (23,594) 71,314 Income attributable to noncontrolling interests — 23,578 — 23,578 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 31,119 $ 40,211 $ (23,594) $ 47,736 Adjustments to income (loss) before income taxes 2 6,900 (3,117) — 3,783 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 38,019 $ 37,094 $ (23,594) $ 51,519 1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $1.7 million difference in insured inventory and property damages in the Agribusiness segment for the six months ended June 30, 2025. The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited) (in thousands) Agribusiness Renewables Other Total Three months ended June 30, 2025 Net income (loss) $ 18,899 $ 17,424 $ (19,516) $ 16,807 Interest expense (income) 11,331 725 (561) 11,495 Tax provision — — 8,028 8,028 Depreciation and amortization 20,399 12,018 654 33,071 EBITDA 50,629 30,167 (11,395) 69,401 Adjusting items impacting EBITDA: Transaction related compensation 1,768 — — 1,768 Loss on investments 7,178 — — 7,178 Insured inventory and property recoveries, net (11,162) — — (11,162) Gain on sale of businesses, net (3,190) — — (3,190) Severance expense 1,197 — — 1,197 Total adjusting items (4,209) — — (4,209) Adjusted EBITDA $ 46,420 $ 30,167 $ (11,395) $ 65,192 Three months ended June 30, 2024 Net income (loss) $ 28,581 $ 39,462 $ (15,573) $ 52,470 Interest expense (income) 6,098 996 (483) 6,611 Tax provision — — 4,876 4,876 Depreciation and amortization 17,279 11,719 1,271 30,269 EBITDA 51,958 52,177 (9,909) 94,226 Adjusting items impacting EBITDA: Transaction related compensation 4,049 — — 4,049 Total adjusting items 4,049 — — 4,049 Adjusted EBITDA $ 56,007 $ 52,177 $ (9,909) $ 98,275 Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited) (in thousands) Agribusiness Renewables Other Total Six months ended June 30, 2025 Net income (loss) $ 9,223 $ 42,305 $ (29,390) $ 22,138 Interest expense (income) 24,157 1,423 (989) 24,591 Tax provision — — 5,910 5,910 Depreciation and amortization 42,084 23,909 1,418 67,411 EBITDA 75,464 67,637 (23,051) 120,050 Adjusting items impacting EBITDA: Transaction related compensation 3,871 — — 3,871 Insured inventory and property recoveries, net (6,661) — — (6,661) Gain on sale of businesses, net (3,190) — — (3,190) Loss on investments 7,178 — — 7,178 Severance expense 1,197 — — 1,197 Total adjusting items 2,395 — — 2,395 Adjusted EBITDA $ 77,859 $ 67,637 $ (23,051) $ 122,445 Six months ended June 30, 2024 Net income (loss) $ 31,119 $ 63,789 $ (29,773) $ 65,135 Interest expense (income) 12,729 1,453 (1,049) 13,133 Tax provision — — 6,179 6,179 Depreciation and amortization 34,327 23,684 3,207 61,218 EBITDA 78,175 88,926 (21,436) 145,665 Adjusting items impacting EBITDA: Transaction related compensation 6,900 — — 6,900 Gain on deconsolidation of joint venture — (3,117) — (3,117) Total adjusting items 6,900 (3,117) — 3,783 Adjusted EBITDA $ 85,075 $ 85,809 $ (21,436) $ 149,448 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, 2025 (in thousands) September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Net income $ 51,461 $ 54,104 $ 5,331 $ 16,807 $ 127,703 Interest expense 8,361 10,266 13,096 11,495 43,218 Tax provision (benefit) 10,731 13,146 (2,118) 8,028 29,787 Depreciation and amortization 30,408 36,178 34,340 33,071 133,997 EBITDA 100,961 113,694 50,649 69,401 334,705 Adjusting items impacting EBITDA: Transaction related compensation 1,668 2,536 2,103 1,768 8,075 Insured inventory and property damage (recoveries), net (5,204) (4,446) 4,502 (11,162) (16,310) Loss on investments — 1,535 — 7,178 8,713 Severance expense — — — 1,197 1,197 Gain on sale of businesses, net — — — (3,190) (3,190) Acquisition costs — 3,193 — — 3,193 Total adjusting items (3,536) 2,818 6,605 (4,209) 1,678 Adjusted EBITDA $ 97,425 $ 116,512 $ 57,254 $ 65,192 $ 336,383 Three Months Ended, Twelve months ended June 30, 2024 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Net income $ 30,523 $ 78,437 $ 12,665 $ 52,470 $ 174,095 Interest expense 8,188 8,101 6,522 6,611 29,422 Tax provision 7,862 13,324 1,303 4,876 27,365 Depreciation and amortization 31,215 31,306 30,949 30,269 123,739 EBITDA 77,788 131,168 51,439 94,226 354,621 Adjusting items impacting EBITDA: Transaction related compensation 1,999 3,212 2,852 4,049 12,112 Gain on deconsolidation of joint venture — — (3,117) — (3,117) Goodwill impairment — 686 — — 686 Gain on sale of assets (5,643) — — — (5,643) Gain on cost method investment (4,798) — — — (4,798) Impairment on equity method investments 963 — — — 963 Total adjusting items (7,479) 3,898 (265) 4,049 203 Adjusted EBITDA $ 70,309 $ 135,066 $ 51,174 $ 98,275 $ 354,824 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) 2025 2024 2025 2024 Cash provided by (used in) operating activities $ 299,321 $ 304,434 $ (50,699) $ 64,807 Changes in operating assets and liabilities Accounts receivable 29,872 (42,441) (23,396) 15,284 Inventories 482,825 308,640 521,356 477,723 Commodity derivatives 18,781 64,508 19,857 36,010 Other current and non-current assets (23,172) (52,510) (31,730) (50,587) Payables and other current and non-current liabilities (251,871) (62,528) (636,646) (550,797) Total changes in operating assets and liabilities 256,435 215,669 (150,559) (72,367) Cash from operations before working capital changes $ 42,886 $ 88,765 $ 99,860 $ 137,174 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. SOURCE The Andersons, Inc.
Globe and Mail
06-05-2025
- Business
- Globe and Mail
The Andersons, Inc. Reports First Quarter Results
MAUMEE, Ohio , /CNW/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2025. First Quarter Highlights: "We had mixed results in a turbulent first quarter. The Renewables segment performed well and our ethanol plants had strong operating efficiency and financial results. Coupled with the performance of our ethanol and renewable diesel feedstock merchandising, the segment produced one of its best first quarters. In Agribusiness, we faced challenging markets as global trade uncertainties disrupted typical grain flows and caused many of our commercial customers to focus on just-in-time purchasing. Our agronomy team is off to a good start with product well-positioned for the upcoming planting season," said President and CEO Bill Krueger . "As planting progresses, we see ample second quarter opportunities for our agronomy teams with the expected increase in corn acres this year. Strong system-wide corn and wheat production should provide a good environment for storage and handling in our assets later in the year. We also expect continued demand for our ethanol products, both domestic and export, as we enter the spring maintenance and driving season. We remain pleased with our overall asset and merchandising footprint. With the combination of the former Trade and Nutrient businesses, we are reviewing the portfolio to find synergies and process improvements." "We continue to pursue growth opportunities. Our longer lead time capital projects in Agribusiness are progressing well and are expected to be completed by mid-2026," continued Krueger. "Our Renewables projects are focused on improving efficiency, co-product yields and lowering the carbon intensity of our high-performing ethanol plants." $ in millions, except per share amounts Q1 2025 Q1 2024 Variance Pretax Income $ 3.2 $ 14.0 $ (10.8) Pretax Income (Loss) Attributable to the Company 1 (1.8) 6.9 (8.7) Adjusted Pretax Income (Loss) Attributable to the Company 1 3.2 6.6 (3.4) Agribusiness 1 (0.1) 5.4 (5.5) Renewables 1 15.3 14.1 1.2 Other (12.0) (12.9) 0.9 Net Income Attributable to the Company 0.3 5.6 (5.3) Adjusted Net Income Attributable to the Company 1 4.1 5.6 (1.5) Diluted Earnings Per Share ("EPS") 0.01 0.16 (0.15) Adjusted EPS 1 0.12 0.16 (0.04) EBITDA 1 50.6 51.4 (0.8) Adjusted EBITDA 1 $ 57.3 $ 51.2 $ 6.1 1 Non-GAAP financial measures; see appendix for explanations and reconciliations. Cash, Liquidity, and Long-Term Debt Management "Our businesses continue to generate strong cash flows, although working capital needs in the first quarter typically require significant funding leading to a use of cash from operations. However, our debt remains at a modest level," said Executive Vice President and CFO Brian Valentine . "We remain well below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet. For 2025, we anticipate increased spending on growth projects for previously announced long-term opportunities." The company used cash from operating activities of $350 million and $240 million in the first quarter of 2025 and 2024, respectively. Cash from operations before working capital changes in the same periods was $57 million and $48 million , respectively. Cash spent on capital projects in the quarter totaled $47 million , a $20 million increase from 2024. First Quarter Segment Overview Agribusiness Challenged in Changing Markets Agribusiness recorded a pretax loss of $10 million and breakeven adjusted pretax income attributable to the company for the quarter compared to pretax income of $3 million and adjusted pretax income of $5 million in the first quarter of 2024. Results from our ag supply chain businesses were lower with limited trade flows due to market uncertainty. Assets were significantly impacted as basis levels were challenged in our western locations, including those recently acquired as part of the Skyland Grain, LLC investment. The nutrient business showed year-over-year improvement with good fertilizer volume and positioning in advance of an expected increase in corn acres. The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to navigate challenging market conditions. Sizeable corn planting intentions are favorable, allowing for higher nutrient volumes as well as providing opportunities for storage and handling at harvest. In addition, lower corn stocks entering the year should allow for merchandising opportunities and good early harvest margins in the last half of 2025. Agribusiness's first quarter adjusted EBITDA was $31 million , compared to $29 million in 2024. Renewables has Strong Quarter on Efficient Operations and Favorable Ethanol Margins The Renewables segment reported pretax income of $25 million and pretax income attributable to the company of $15 million in the first quarter. For the same period in 2024, the segment reported pretax income of $24 million and adjusted pretax income attributable to the company of $14 million . Results from the ethanol production facilities improved year-over-year on efficient operations and higher yields, also benefiting from better year-over-year board crush margins. Plant co-product values were lower, with corn-based feed ingredients competing against an oversupply of alternative protein sources. Ethanol demand is expected to strengthen into the summer with some concerns about cost of inputs. Values of feed ingredient co-products are expected to remain challenged. Renewables had first quarter EBITDA of $37 million in 2025, compared to adjusted EBITDA of $34 million in 2024. Income Taxes The company recorded an income tax benefit for the quarter of $2.1 million , resulting in an effective rate of (66)% for the period. This rate was impacted by a discrete adjustment for a decrease in unrecognized tax benefits related to prior period tax positions. We anticipate a full-year adjusted effective rate of approximately 18% - 22%. Conference Call The company will host a webcast on Wednesday, May 7, 2025 , at 8:30 a.m. ET , to discuss its performance and provide its outlook for the remainder of 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 2480571). It is recommended that you call 10 minutes before the conference call begins. To access the webcast, click on the link: and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at Forward-Looking Statements This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Non-GAAP Measures This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein. Company Description The Andersons, Inc., is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Assets Current assets: Cash and cash equivalents $ 219,219 $ 561,771 $ 283,902 Accounts receivable, net 812,482 764,550 701,706 Inventories 1,249,047 1,286,811 994,543 Commodity derivative assets – current 155,028 148,801 178,623 Other current assets 92,968 88,344 55,134 Total current assets 2,528,744 2,850,277 2,213,908 Property, plant and equipment, net 860,246 868,151 689,113 Other assets, net 408,692 402,886 358,052 Total assets $ 3,797,682 $ 4,121,314 $ 3,261,073 Liabilities and equity Current liabilities: Short-term debt $ 222,691 $ 166,614 $ 10,148 Trade and other payables 661,202 1,047,436 625,836 Customer prepayments and deferred revenue 223,702 194,025 174,651 Commodity derivative liabilities – current 69,648 59,766 67,079 Current maturities of long-term debt 62,675 36,139 27,617 Accrued expenses and other current liabilities 194,390 227,192 177,953 Total current liabilities 1,434,308 1,731,172 1,083,284 Long-term debt, less current maturities 588,087 608,151 556,174 Other long-term liabilities 180,853 182,155 145,965 Total liabilities 2,203,248 2,521,478 1,785,423 Total equity 1,594,434 1,599,836 1,475,650 Total liabilities and equity $ 3,797,682 $ 4,121,314 $ 3,261,073 The Andersons, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Three months ended March 31, (in thousands) 2025 2024 Operating Activities Net income $ 5,331 $ 12,665 Adjustments to reconcile net income to cash used in operating activities: Depreciation and amortization 34,340 30,949 Other 17,303 4,795 Changes in operating assets and liabilities: Accounts receivable (53,268) 57,725 Inventories 38,531 169,083 Commodity derivatives 1,076 (28,498) Other current and non-current assets (8,558) 1,923 Payables and other current and non-current liabilities (384,775) (488,269) Net cash used in operating activities (350,020) (239,627) Investing Activities Purchases of property, plant and equipment and capitalized software (46,548) (26,775) Other 2,717 4,723 Net cash used in investing activities (43,831) (22,052) Financing Activities Net proceeds (payments) under short-term lines of credit 56,044 (31,913) Proceeds from issuance of long-term debt 14,700 — Payments of long-term debt (8,416) (6,870) Dividends paid (6,693) (6,516) Value of shares withheld for taxes (3,837) (8,071) Distributions to noncontrolling interest owner — (44,910) Other (1,353) — Net cash provided by (used in) financing activities 50,445 (98,280) Effect of exchange rates on cash and cash equivalents 854 7 Decrease in cash and cash equivalents (342,552) (359,952) Cash and cash equivalents at beginning of period 561,771 643,854 Cash and cash equivalents at end of period $ 219,219 $ 283,902 The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited) Three months ended March 31, (in thousands, except per share data) 2025 2024 Net income $ 5,331 $ 12,665 Net income attributable to noncontrolling interests 5,047 7,084 Net income attributable to The Andersons, Inc. 284 5,581 Adjustments: Transaction related compensation 2,103 2,852 Insured inventory and property damage 2,926 — Gain on deconsolidation of joint venture — (3,117) Income tax impact of adjustments 1 (1,257) 279 Total adjusting items, net of tax 3,772 14 Adjusted net income attributable to The Andersons, Inc. $ 4,056 $ 5,595 Diluted earnings per share attributable to The Andersons, Inc. common shareholders $ 0.01 $ 0.16 Impact on diluted earnings per share $ 0.11 $ — Adjusted diluted earnings per share $ 0.12 $ 0.16 1 The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of 25% with the exception of certain transaction related compensation in 2024. 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 per share 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) Agribusiness Renewables Other Total Three months ended March 31, 2025 Sales and merchandising revenues $ 1,993,287 $ 665,811 $ — $ 2,659,098 Gross profit 118,598 34,274 — 152,872 Operating, administrative and general expenses 124,489 9,783 11,482 145,754 Other income (loss), net 9,041 1,088 (938) 9,191 Income (loss) before income taxes (9,676) 24,881 (11,992) 3,213 Income (loss) attributable to noncontrolling interests (4,522) 9,569 — 5,047 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ (5,154) $ 15,312 $ (11,992) $ (1,834) Adjustments to income (loss) before income taxes 2 5,029 — — 5,029 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ (125) $ 15,312 $ (11,992) $ 3,195 Three months ended March 31, 2024 Sales and merchandising revenues $ 2,061,439 $ 656,778 $ — $ 2,718,217 Gross profit 99,519 28,801 — 128,320 Operating, administrative and general expenses 96,921 8,777 13,660 119,358 Other income, net 6,571 4,760 197 11,528 Income (loss) before income taxes 2,538 24,327 (12,897) 13,968 Income attributable to noncontrolling interests — 7,084 — 7,084 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 2,538 $ 17,243 $ (12,897) $ 6,884 Adjustments to income (loss) before income taxes 2 2,852 (3,117) — (265) Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 5,390 $ 14,126 $ (12,897) $ 6,619 1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $1.6 million difference in insured inventory and property damages in the Agribusiness segment for the three months ended March 31, 2025. The Andersons, Inc. A non-GAAP financial measure (unaudited) (in thousands) Agribusiness Renewables Other Total Three months ended March 31, 2025 Net income (loss) $ (9,676) $ 24,881 $ (9,874) $ 5,331 Interest expense (income) 12,826 698 (428) 13,096 Tax provision (benefit) — — (2,118) (2,118) Depreciation and amortization 21,685 11,891 764 34,340 EBITDA 24,835 37,470 (11,656) 50,649 Adjusting items impacting EBITDA: Transaction related compensation 2,103 — — 2,103 Insured inventory and property damage 4,502 — — 4,502 Total adjusting items 6,605 — — 6,605 Adjusted EBITDA $ 31,440 $ 37,470 $ (11,656) $ 57,254 Three months ended March 31, 2024 Net income (loss) $ 2,538 $ 24,327 $ (14,200) $ 12,665 Interest expense (income) 6,631 457 (566) 6,522 Tax provision — — 1,303 1,303 Depreciation and amortization 17,048 11,965 1,936 30,949 EBITDA 26,217 36,749 (11,527) 51,439 Adjusting items impacting EBITDA: Transaction related compensation 2,852 — — 2,852 Gain on deconsolidation of joint venture — (3,117) — (3,117) Total adjusting items 2,852 (3,117) — (265) Adjusted EBITDA $ 29,069 $ 33,632 $ (11,527) $ 51,174 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. Three Months Ended, Twelve months ended March 31, 2025 (in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Net income $ 52,470 $ 51,461 $ 54,104 $ 5,331 $ 163,366 Interest expense 6,611 8,361 10,266 13,096 38,334 Tax provision (benefit) 4,876 10,731 13,146 (2,118) 26,635 Depreciation and amortization 30,269 30,408 36,178 34,340 131,195 EBITDA 94,226 100,961 113,694 50,649 359,530 Adjusting items impacting EBITDA: Transaction related compensation 4,049 1,668 2,536 2,103 10,356 Insured inventory and property damage (recoveries) — (5,204) (4,446) 4,502 (5,148) Acquisition costs — — 3,193 — 3,193 Loss on cost method investment — — 1,535 — 1,535 Total adjusting items 4,049 (3,536) 2,818 6,605 9,936 Adjusted EBITDA $ 98,275 $ 97,425 $ 116,512 $ 57,254 $ 369,466 Three Months Ended, Twelve months ended March 31, 2024 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income $ 82,686 $ 30,523 $ 78,437 $ 12,665 $ 204,311 Interest expense 13,953 8,188 8,101 6,522 36,764 Tax provision 21,732 7,862 13,324 1,303 44,221 Depreciation and amortization 30,365 31,215 31,306 30,949 123,835 EBITDA 148,736 77,788 131,168 51,439 409,131 Adjusting items impacting EBITDA: Transaction related compensation 939 1,999 3,212 2,852 9,002 Gain on deconsolidation of joint venture (6,544) — — (3,117) (9,661) Goodwill impairment — — 686 — 686 Gain on sale of assets — (5,643) — — (5,643) Gain on cost method investment — (4,798) — — (4,798) Impairment on equity method investments — 963 — — 963 Insured inventory expenses 1,310 — — — 1,310 Total adjusting items (4,295) (7,479) 3,898 (265) (8,141) Adjusted EBITDA $ 144,441 $ 70,309 $ 135,066 $ 51,174 $ 400,990 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.
Globe and Mail
18-02-2025
- Business
- Globe and Mail
The Andersons, Inc. Reports Fourth Quarter and Full Year Results
MAUMEE, Ohio , /CNW/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter ended December 31, 2024 . Financial Highlights: Full year net income attributable to The Andersons of $114 million , or $3.32 per diluted share, and $117 million , or $3.40 per diluted share, on an adjusted basis Fourth quarter net income attributable to The Andersons of $45 million , or $1.31 per diluted share, and $47 million , or $1.36 per diluted share, on an adjusted basis Adjusted EBITDA of $363 million for the year, and $117 million for the fourth quarter Trade reported record fourth quarter pretax income of $54 million on solid operations Renewables reported pretax income of $25 million and pretax income attributable to the company of $16 million on efficient plant performance and solid merchandising Strong balance sheet; healthy cash flows result in a cash balance of $562 million "Trade had an excellent fourth quarter, with an early harvest, where we were able to accumulate higher-than-normal quality grain at good basis values. We also saw some improved merchandising opportunities and good results in our premium ingredients business. We are integrating Skyland Grain, LLC locations into our trade flows and this report includes two months of results from that recent investment. Renewables also had a very solid quarter but could not duplicate 2023 despite record ethanol production due to lower ethanol prices and co-product values. In Nutrient & Industrial, we had year-over-year improvement led by our manufactured product lines that helped offset soft ag supply chain results due to limited farmer engagement," said President and CEO Bill Krueger . "In these changing ag markets, I'm proud of our team." "Looking forward, we see continued regulatory and geopolitical uncertainties coupled with potentially challenging agricultural economics. We also see signs of opportunity. We currently expect a significant increase in planted corn acres and continuing strong ethanol exports. Our mix of North American agribusiness and ethanol production assets along with our strength in merchandising, positions us well to withstand downward pressures from these market shifts," added Krueger. "In addition to the recent Skyland Grain investment, we are making progress on several longer-term capital investments that will enhance future results. We also continue to actively pursue growth in the Renewables space, both by lowering the carbon intensity of our ethanol plants as well as evaluating expansion and acquisition opportunities. In December, we announced some changes to improve the alignment of our commercial teams to serve our customers even better, gain operational efficiencies, and continue to drive growth. We are excited about the new Agribusiness and Renewables teams and are working hard to achieve our growth strategy." $ in millions, except per share amounts Q4 2024 Q4 2023 Variance YTD 2024 YTD 2023 Variance Pretax Income $ 67.3 $ 91.8 $ (24.5) $ 200.8 $ 169.6 $ 31.2 Pretax Income Attributable to the Company 1 58.2 64.5 (6.3) 144.1 138.2 5.9 Adjusted Pretax Income (Loss) Attributable to the Company 1 60.6 68.4 (7.8) 146.7 159.1 (12.4) Trade 1 53.6 47.0 6.6 94.6 83.3 11.3 Renewables 1 16.0 32.7 (16.7) 79.8 97.7 (17.9) Nutrient & Industrial 1 3.5 2.1 1.4 18.9 25.7 (6.8) Other 1 (12.5) (13.4) 0.9 (46.6) (47.7) 1.1 Net Income Attributable to the Company 45.1 51.2 (6.1) 114.0 101.2 12.8 Adjusted Net Income Attributable to the Company 1 46.9 54.6 (7.7) 116.7 118.3 (1.6) Diluted Earnings Per Share (EPS) 1.31 1.49 (0.18) 3.32 2.94 0.38 Adjusted EPS 1 1.36 1.59 (0.23) 3.40 3.44 (0.04) EBITDA 1 113.7 131.2 (17.5) 360.3 341.5 18.8 Adjusted EBITDA 1 $ 116.5 $ 135.1 $ (18.6) $ 363.4 $ 405.1 $ (41.7) 1 Non-GAAP financial measures; see appendix for explanations and reconciliations. Cash, Liquidity, and Long-Term Debt Management "Our businesses continued to generate solid operating cash flows into the fourth quarter. Our cash flows and lower commodity prices resulted in a cash position of more than $560 million at the end of the year. In addition, our debt remains at a modest level, inclusive of debt acquired as part of the Skyland Grain investment," said Executive Vice President and CFO Brian Valentine . "Our long-term debt to adjusted EBITDA ratio of 1.8 times is still well below our stated target of 2.5 times. We were pleased to be able to deploy more capital during the quarter and anticipate increased spending on some of the previously announced growth projects in 2025." The company generated $269 million and $251 million in cash from operating activities for the fourth quarters of 2024 and 2023, respectively, and generated $100 million and $122 million in cash from operations before working capital changes for the same periods, respectively. For the full years of 2024 and 2023, the company generated $332 million and $947 million in cash from operating activities, respectively. Cash from operations before working capital changes for the same years was $323 million and $330 million even with the changing ag markets. Fourth Quarter Segment Overview Trade Posts Record Fourth Quarter Driven by Solid Operations Trade recorded pretax income and adjusted pretax income attributable to the company of $54 million for the quarter, compared to pretax income of $44 million and adjusted pretax income of $47 million in the fourth quarter of the prior year. Solid elevation margins and space income in core grain assets on an early and robust harvest drove results. The merchandising businesses realized improvements over the prior year, despite limited volatility in the grain markets. The premium ingredients business had another consistent and profitable quarter. The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to benefit from large crops and carry markets, as well as tight, demand-driven markets. With a lower-than-expected corn carryout at the end of the year, an inverse has returned to the corn markets, which could result in an increase in corn acres planted and increased volatility in 2025. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments. Trade's fourth quarter adjusted EBITDA was $76 million , compared to fourth quarter 2023 adjusted EBITDA of $62 million . For the full year, adjusted EBITDA was $161 million in 2024, compared to $155 million in 2023. Renewables Reports Solid Quarter on Efficient Operations The Renewables segment reported pretax income of $25 million and pretax income attributable to the company of $16 million in the fourth quarter compared to pretax income of $60 million and pretax income attributable to the company of $33 million in the fourth quarter of 2023. Fourth quarter results were down from a prior year record, as ethanol board crush margins were down $0.16 /gallon and co-product values traded lower on reduced corn prices and weaker corn oil values. Partially offsetting these headwinds, the four ethanol plants continued to run efficiently, with record fourth quarter production, and reduced input cost, including lower corn basis of $0.09 /gallon year-over-year. Third-party ethanol merchandising also saw improved profitability in 2024. While spot ethanol crush margins are generally seasonally soft in the first quarter, a portion of first quarter volumes have been hedged at favorable levels. While there remains regulatory uncertainty, elevated export demand, upcoming planned maintenance in the industry, and the spring driving rebound should all support improved plant economics. Co-product values may also see improvement as there has been a recent rebound in corn values. Renewables recorded EBITDA of $40 million in the fourth quarter of 2024, compared to 2023 fourth quarter EBITDA of $73 million . For the full year, adjusted EBITDA was $189 million in 2024, compared to $230 million 2023. Nutrient & Industrial Shows Improvement on Prior Year Nutrient & Industrial recorded pretax income and pretax income attributable to the company of $3 million in the fourth quarter, an improvement from the prior year. The increased results are primarily due to improvements in manufactured products and one-time prior year expenses that did not repeat. Core agriculture product lines were down year-over-year on softer industry fundamentals. With high yields during harvest pulling more nutrients from the soil and an expected increase in corn acres planted, there may be an opportunity for increased volume in 2025. Nutrient & Industrial's current quarter EBITDA was $13 million , compared to adjusted EBITDA of $11 million in 2023. For the full year, Nutrient & Industrial recorded EBITDA of $57 million in 2024, compared to adjusted EBITDA of $62 million in 2023. Income Taxes The company recorded income tax expense at an effective rate of 20% for the fourth quarter and 15% for the year. This rate was impacted by the tax treatment of noncontrolling interests and federal tax credits; a significant portion are biofuel tax credits related to the production of cellulosic ethanol. Conference Call The company will host a webcast on Wednesday, February 19, 2025 , at 8:30 a.m. ET , to discuss its performance and provide its outlook for 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (international toll) and use elite entry number: 3381023. It is recommended that you call 10 minutes before the conference call begins. To access the webcast, click on the link: and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at Forward-Looking Statements This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Non-GAAP Measures This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein. Company Description The Andersons, Inc., named in 2024 as one of The Americas' Fastest Growing Companies by the Financial Times and one of America's Climate Leaders by USA Today, is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) December 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 561,771 $ 643,854 Accounts receivable, net 764,550 762,549 Inventories 1,286,811 1,166,700 Commodity derivative assets – current 148,801 178,083 Other current assets 88,344 55,777 Total current assets 2,850,277 2,806,963 Other assets: Goodwill 127,856 127,856 Other intangible assets, net 69,345 85,579 Right of use assets, net 104,630 54,234 Other assets, net 101,055 87,010 Total other assets 402,886 354,679 Property, plant and equipment, net 868,151 693,365 Total assets $ 4,121,314 $ 3,855,007 Liabilities and equity Current liabilities: Short-term debt $ 166,614 $ 43,106 Trade and other payables 1,047,436 1,055,473 Customer prepayments and deferred revenue 194,025 187,054 Commodity derivative liabilities – current 59,766 90,849 Current maturities of long-term debt 36,139 27,561 Accrued expenses and other current liabilities 227,192 232,288 Total current liabilities 1,731,172 1,636,331 Long-term lease liabilities 65,312 31,659 Long-term debt, less current maturities 608,151 562,960 Deferred income taxes 55,005 58,581 Other long-term liabilities 61,838 49,089 Total liabilities 2,521,478 2,338,620 Total equity 1,599,836 1,516,387 Total liabilities and equity $ 4,121,314 $ 3,855,007 The Andersons, Inc. Consolidated Statements of Cash Flows (unaudited) Three months ended December 31, Twelve months ended December 31, (in thousands) 2024 2023 2024 2023 Operating Activities Net income $ 54,104 $ 78,437 $ 170,700 $ 132,529 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 36,178 31,306 127,804 125,106 Bad debt expense, net 6,138 5,438 17,637 11,519 Stock-based compensation expense 3,611 3,493 13,629 12,857 Asset impairment — — — 87,156 Deferred federal income tax (1,997) 6,696 (2,911) (1,596) Other 1,862 (10,535) (3,595) (16,341) Changes in operating assets and liabilities, net of assets acquired and liabilities assumed: Accounts and notes receivable 32,279 62,705 35,777 468,968 Inventories (191,041) (175,883) 87,906 572,235 Commodity derivatives (34,322) 12,027 15,005 111,506 Other current and non-current assets 31,326 4,481 (28,050) 6,529 Payables and other current and non-current liabilities 330,673 232,498 (102,396) (563,718) Net cash provided by operating activities 268,811 250,663 331,506 946,750 Investing Activities Acquisition of businesses, net of cash acquired (19,611) (313) (29,172) (24,698) Purchases of property, plant and equipment and capitalized software (55,957) (41,725) (149,187) (150,443) Property insurance proceeds 2,918 4,999 12,137 7,499 Proceeds from sale of business — — — 10,318 Proceeds from sale of Rail assets — — — 2,871 Other 168 423 3,148 574 Net cash used in investing activities (72,482) (36,616) (163,074) (153,879) Financing Activities Net (payments) receipts under short-term lines of credit (64,897) 27,456 (91,951) (233,696) Proceeds from issuance of long-term debt 67,000 — 67,000 100,000 Payments of long-term debt (62,940) (6,886) (83,589) (49,620) Distributions to noncontrolling interest owner (14,970) (2,114) (102,295) (46,418) Dividends paid (6,807) (6,602) (26,273) (25,373) Common stock repurchased (2,295) — (2,295) (1,747) Payments of debt issuance costs (2,851) — (2,851) — Value of shares withheld for taxes (4) (3) (8,105) (6,630) Other — 2 — (509) Net cash provided by (used in) financing activities (87,764) 11,853 (250,359) (263,993) Effect of exchange rates on cash and cash equivalents (859) (101) (156) (293) Increase (decrease) in Cash and cash equivalents 107,706 225,799 (82,083) 528,585 Cash and cash equivalents at the beginning of the period 454,065 418,055 643,854 115,269 Cash and cash equivalents at the end of the period $ 561,771 $ 643,854 $ 561,771 $ 643,854 The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited) Three months ended December 31, Twelve months ended December 31, (in thousands, except per share data) 2024 2023 2024 2023 Net income $ 54,104 $ 78,437 $ 170,700 $ 132,529 Net income attributable to noncontrolling interests 9,014 27,251 56,688 31,339 Net income attributable to The Andersons, Inc. 45,090 51,186 114,012 101,190 Adjustments: Transaction related compensation 2,536 3,212 11,104 7,818 Insurance recoveries (4,446) — (9,650) (16,080) Gain on deconsolidation of joint venture — — (3,117) (6,544) Acquisition costs 2,738 — 2,738 — (Gain) loss on cost method investment 1,535 — 1,535 (4,798) Asset impairment — — — 45,413 Gain on sale of assets — — — (5,643) Goodwill impairment — 686 — 686 Income tax impact of adjustments 1 (590) (520) 42 (3,775) Total adjusting items, net of tax 1,773 3,378 2,652 17,077 Adjusted net income attributable to The Andersons, Inc. $ 46,863 $ 54,564 $ 116,664 $ 118,267 Diluted earnings per share attributable to The Andersons, Inc. common shareholders $ 1.31 $ 1.49 $ 3.32 $ 2.94 Impact on diluted earnings per share $ 0.05 $ 0.10 $ 0.08 $ 0.50 Adjusted diluted earnings per share attributable to The Andersons, Inc. common shareholders $ 1.36 $ 1.59 $ 3.40 $ 3.44 1 The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of 25% with the exception of certain transaction related compensation, certain acquisition costs, and goodwill impairments in both 2024 and 2023, respectively. Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item. The Andersons, Inc. Segment Data (unaudited) (in thousands) Trade Renewables Nutrient & Industrial Other Total Three months ended December 31, 2024 Sales and merchandising revenues $ 2,222,762 $ 713,958 $ 186,418 $ — $ 3,123,138 Gross profit 146,976 35,479 30,655 — 213,110 Operating, administrative and general expenses 95,504 10,901 27,811 12,938 147,154 Other income (loss), net 10,441 992 1,564 (1,437) 11,560 Income (loss) before income taxes 53,818 24,921 2,551 (14,040) 67,250 Income (loss) attributable to noncontrolling interests 1,018 8,941 (945) — 9,014 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 52,800 $ 15,980 $ 3,496 $ (14,040) $ 58,236 Adjustments to income (loss) before income taxes 2 828 — — 1,535 2,363 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 53,628 $ 15,980 $ 3,496 $ (12,505) $ 60,599 Three months ended December 31, 2023 Sales and merchandising revenues $ 2,212,434 $ 795,236 $ 205,330 $ — $ 3,213,000 Gross profit 126,064 65,257 26,393 — 217,714 Operating, administrative and general expenses 88,097 7,933 24,091 12,591 132,712 Other income (loss), net 11,839 3,401 439 (819) 14,860 Income (loss) before income taxes 43,807 59,988 1,374 (13,408) 91,761 Income attributable to noncontrolling interests — 27,251 — — 27,251 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 43,807 $ 32,737 $ 1,374 $ (13,408) $ 64,510 Adjustments to income (loss) before income taxes 2 3,212 — 686 — 3,898 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 47,019 $ 32,737 $ 2,060 $ (13,408) $ 68,408 1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $0.5 million difference in acquisition costs in the Trade segment for the three months ended December 31, 2024. The Andersons, Inc. (unaudited) (in thousands) Trade Renewables Nutrient & Industrial Other Total Twelve months ended December 31, 2024 Sales and merchandising revenues $ 7,622,077 $ 2,802,330 $ 833,141 $ — $ 11,257,548 Gross profit 403,682 169,151 121,093 — 693,926 Operating, administrative and general expenses 316,390 35,493 103,238 48,499 503,620 Other income (loss), net 28,728 8,678 6,444 (1,639) 42,211 Income (loss) before income taxes 91,433 139,495 17,988 (48,159) 200,757 Income (loss) attributable to noncontrolling interests 1,018 56,615 (945) — 56,688 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 90,415 $ 82,880 $ 18,933 $ (48,159) $ 144,069 Adjustments to income (loss) before income taxes 2 4,192 (3,117) — 1,535 2,610 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 94,607 $ 79,763 $ 18,933 $ (46,624) $ 146,679 Twelve months ended December 31, 2023 Sales and merchandising revenues $ 10,426,083 $ 3,380,632 $ 943,397 $ — $ 14,750,112 Gross profit 409,950 202,397 133,016 — 745,363 Operating, administrative and general expenses 308,470 32,737 103,342 47,711 492,260 Other income, net 29,988 15,056 2,391 3,048 50,483 Income (loss) before income taxes 96,234 91,175 25,049 (42,895) 169,563 Income attributable to noncontrolling interests — 31,339 — — 31,339 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 96,234 $ 59,836 $ 25,049 $ (42,895) $ 138,224 Adjustments to income (loss) before income taxes 2 (12,942) 37,906 686 (4,798) 20,852 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 83,292 $ 97,742 $ 25,735 $ (47,693) $ 159,076 1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $0.5 million difference in acquisition costs in the Trade segment for the year ended December 31, 2024, and a $42.7 million difference in asset impairment expense in the Renewables segment for the year ended December 31, 2023. (in thousands) Trade Renewables Nutrient & Industrial Other Total Three months ended December 31, 2024 Net income (loss) $ 53,818 $ 24,921 $ 2,551 $ (27,186) $ 54,104 Interest expense (income) 8,095 649 1,857 (335) 10,266 Tax provision — — — 13,146 13,146 Depreciation and amortization 12,559 14,079 8,585 955 36,178 EBITDA 74,472 39,649 12,993 (13,420) 113,694 Adjusting items impacting EBITDA: Acquisition costs 3,193 — — — 3,193 Transaction related compensation 2,536 — — — 2,536 Insurance recoveries (4,446) — — — (4,446) Loss on cost method investment — — — 1,535 1,535 Total adjusting items 1,283 — — 1,535 2,818 Adjusted EBITDA $ 75,755 $ 39,649 $ 12,993 $ (11,885) $ 116,512 Three months ended December 31, 2023 Net income (loss) $ 43,807 $ 59,988 $ 1,374 $ (26,732) $ 78,437 Interest expense (income) 5,999 737 1,367 (2) 8,101 Tax provision — — — 13,324 13,324 Depreciation and amortization 9,450 12,184 7,750 1,922 31,306 EBITDA 59,256 72,909 10,491 (11,488) 131,168 Adjusting items impacting EBITDA: Transaction related compensation 3,212 — — — 3,212 Goodwill impairment — — 686 — 686 Total adjusting items 3,212 — 686 — 3,898 Adjusted EBITDA $ 62,468 $ 72,909 $ 11,177 $ (11,488) $ 135,066 Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. (in thousands) Trade Renewables Nutrient & Industrial Other Total Twelve months ended December 31, 2024 Net income (loss) $ 91,433 $ 139,495 $ 17,988 $ (78,216) $ 170,700 Interest expense (income) 24,587 2,841 6,311 (1,979) 31,760 Tax provision — — — 30,057 30,057 Depreciation and amortization 40,505 49,705 32,488 5,106 127,804 EBITDA 156,525 192,041 56,787 (45,032) 360,321 Adjusting items impacting EBITDA: Transaction related compensation 11,104 — — — 11,104 Insurance recoveries (9,650) — — — (9,650) Acquisition costs 3,193 — — — 3,193 Gain on deconsolidation of joint venture — (3,117) — — (3,117) Loss on cost method investment — — — 1,535 1,535 Total adjusting items 4,647 (3,117) — 1,535 3,065 Adjusted EBITDA $ 161,172 $ 188,924 $ 56,787 $ (43,497) $ 363,386 Twelve months ended December 31, 2023 Net income (loss) $ 96,234 $ 91,175 $ 25,049 $ (79,929) $ 132,529 Interest expense (income) 35,234 6,385 7,016 (1,768) 46,867 Tax provision — — — 37,034 37,034 Depreciation and amortization 36,109 51,408 29,268 8,321 125,106 EBITDA 167,577 148,968 61,333 (36,342) 341,536 Adjusting items impacting EBITDA: Insurance recoveries (16,080) — — — (16,080) Gain on sale of assets (5,643) — — — (5,643) Transaction related compensation 7,818 — — — 7,818 Asset impairment including equity method investments 963 87,156 — — 88,119 Gain on deconsolidation of joint venture — (6,544) — — (6,544) Goodwill impairment — — 686 — 686 Gain on cost method investment — — — (4,798) (4,798) Total adjusting items (12,942) 80,612 686 (4,798) 63,558 Adjusted EBITDA $ 154,635 $ 229,580 $ 62,019 $ (41,140) $ 405,094 Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. 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.
