PR Newswire
MAUMEE, Ohio
, Aug. 4, 2025 /PRNewswire/ — 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:
- Reported net income and adjusted net income attributable to The Andersons of $8 million, or $0.23 per diluted share and $0.24 per diluted share on an adjusted basis
- Adjusted EBITDA was $65 million
- Renewables reported pretax income of $17 million and pretax income attributable to The Andersons of $10 million on strong operating performance
- Agribusiness recorded a pretax income of $19 million and adjusted pretax income attributable to The Andersons of $17 million
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
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||||||
|
|
|
|
|
|
|
|
|
|
|
$ 57.3 |
$ (32.5) |
|
$ 71.3 |
$ (43.3) |
|
|
|
40.9 |
(25.0) |
|
47.7 |
(33.6) |
|
|
|
44.9 |
(29.9) |
|
51.5 |
(33.3) |
|
|
|
32.6 |
(15.8) |
|
38.0 |
(21.3) |
|
|
|
23.0 |
(13.4) |
|
37.1 |
(12.1) |
|
|
|
(10.7) |
(0.8) |
|
(23.6) |
0.1 |
|
|
|
36.0 |
(28.1) |
|
41.6 |
(33.5) |
|
|
|
39.5 |
(31.1) |
|
45.1 |
(32.7) |
|
|
|
1.05 |
(0.82) |
|
1.21 |
(0.97) |
|
|
|
1.15 |
(0.91) |
|
1.31 |
(0.95) |
|
|
|
94.2 |
(24.8) |
|
145.7 |
(25.6) |
|
|
|
$ 98.3 |
$ (33.1) |
|
$ 149.4 |
$ (27.0) |
|
|
||||||
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: https://app.webinar.net/k4oVL4Njwl0 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 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, 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 www.andersonsinc.com.
|
(unaudited) |
|||||||
|
|
|
||||||
|
(in thousands, except per share data) |
|
|
|
|
|||
|
Sales and merchandising revenues |
|
$ 2,795,205 |
|
$ 5,513,422 |
|||
|
Cost of sales and merchandising revenues |
|
2,619,834 |
|
5,209,731 |
|||
|
Gross profit |
|
175,371 |
|
303,691 |
|||
|
Operating, administrative and general expenses |
|
116,614 |
|
235,972 |
|||
|
Interest expense, net |
|
6,611 |
|
13,133 |
|||
|
Other income, net |
|
5,200 |
|
16,728 |
|||
|
Income before income taxes |
|
57,346 |
|
71,314 |
|||
|
Income tax provision |
|
4,876 |
|
6,179 |
|||
|
Net income |
|
52,470 |
|
65,135 |
|||
|
Net income attributable to noncontrolling interests |
|
16,494 |
|
23,578 |
|||
|
Net income attributable to The Andersons, Inc. |
|
$ 35,976 |
|
$ 41,557 |
|||
|
Earnings per share attributable to The Andersons, Inc. common shareholders: |
|||||||
|
Basic earnings: |
|
$ 1.06 |
|
$ 1.22 |
|||
|
Diluted earnings: |
|
$ 1.05 |
|
$ 1.21 |
|||
|
(unaudited)
|
|||||
|
(in thousands) |
|
|
|
||
|
|
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
|
$ 561,771 |
$ 530,386 |
||
|
Accounts receivable, net |
|
764,550 |
743,550 |
||
|
Inventories |
|
1,286,811 |
686,540 |
||
|
Commodity derivative assets – current |
|
148,801 |
180,189 |
||
|
Other current assets |
|
88,344 |
108,634 |
||
|
Total current assets |
|
2,850,277 |
2,249,299 |
||
|
Property, plant and equipment, net |
|
868,151 |
694,136 |
||
|
Other assets, net |
|
402,886 |
356,378 |
||
|
Total assets |
|
$ 4,121,314 |
$ 3,299,813 |
||
|
|
|||||
|
Current liabilities: |
|||||
|
Short-term debt |
|
$ 166,614 |
$ 4,021 |
||
|
Trade and other payables |
|
1,047,436 |
607,083 |
||
|
Customer prepayments and deferred revenue |
|
194,025 |
124,424 |
||
|
Commodity derivative liabilities – current |
|
59,766 |
128,847 |
||
|
Current maturities of long-term debt |
|
36,139 |
27,671 |
||
|
Accrued expenses and other current liabilities |
|
227,192 |
192,683 |
||
|
Total current liabilities |
|
1,731,172 |
1,084,729 |
||
|
Long-term debt, less current maturities |
|
608,151 |
549,378 |
||
|
Other long-term liabilities |
|
182,155 |
145,444 |
||
|
Total liabilities |
|
2,521,478 |
1,779,551 |
||
|
Total equity |
|
1,599,836 |
1,520,262 |
||
|
Total liabilities and equity |
|
$ 4,121,314 |
$ 3,299,813 |
||
|
(unaudited) |
|||
|
|
|||
|
(in thousands) |
|
|
|
|
|
|||
|
Net income |
|
$ 65,135 |
|
|
Adjustments to reconcile net income to cash (used in) provided by operating activities: |
|||
|
Depreciation and amortization |
|
61,218 |
|
|
Other |
|
10,821 |
|
|
Changes in operating assets and liabilities: |
|||
|
Accounts receivable |
|
15,284 |
|
|
Inventories |
|
477,723 |
|
|
Commodity derivatives |
|
36,010 |
|
|
Other current and non-current assets |
|
(50,587) |
|
|
Payables and other current and non-current liabilities |
|
(550,797) |
|
|
Net cash (used in) provided by operating activities |
|
64,807 |
|
|
|
|||
|
Purchases of property, plant and equipment and capitalized software |
|
(55,389) |
|
|
Insurance proceeds |
|
— |
|
|
Other |
|
(2,749) |
|
|
Net cash used in investing activities |
|
(58,138) |
|
|
|
|||
|
Net payments under short-term lines of credit |
|
(37,705) |
|
|
Proceeds from issuance of long-term debt |
|
— |
|
|
Payments of long-term debt |
|
(13,752) |
|
|
Dividends paid |
|
(12,993) |
|
|
Value of shares withheld for taxes |
|
(8,071) |
|
|
Distributions to noncontrolling interest owner |
|
(47,405) |
|
|
Other |
|
— |
|
|
Net cash used in financing activities |
|
(119,926) |
|
|
Effect of exchange rates on cash and cash equivalents |
|
(211) |
|
|
Decrease in cash and cash equivalents |
|
(113,468) |
|
|
Cash and cash equivalents at beginning of period |
|
643,854 |
|
|
Cash and cash equivalents at end of period |
|
$ 530,386 |
|
|
(unaudited) |
|||||||
|
|
|
||||||
|
(in thousands, except per share data) |
|
|
|
|
|||
|
Net income |
|
$ 52,470 |
|
$ 65,135 |
|||
|
Net income attributable to noncontrolling interests |
|
16,494 |
|
23,578 |
|||
|
Net income attributable to The Andersons, Inc. |
|
35,976 |
|
41,557 |
|||
|
Adjustments: |
|||||||
|
Loss on investments |
|
— |
|
— |
|||
|
Transaction related compensation |
|
4,049 |
|
6,900 |
|||
|
Severance expense |
|
— |
|
— |
|||
|
Insured inventory and property recoveries, net |
|
— |
|
— |
|||
|
Gain on sale of businesses, net |
|
— |
|
— |
|||
|
Gain on deconsolidation of joint venture |
|
— |
|
(3,117) |
|||
|
Income tax impact of adjustments1 |
|
(531) |
|
(252) |
|||
|
Total adjusting items, net of tax |
|
3,518 |
|
3,531 |
|||
|
Adjusted net income attributable to The Andersons, Inc. |
|
$ 39,494 |
|
$ 45,088 |
|||
|
Diluted earnings per share attributable to The Andersons, Inc. common shareholders |
|
$ 1.05 |
|
$ 1.21 |
|||
|
Impact on diluted earnings per share |
|
$ 0.10 |
|
$ 0.10 |
|||
|
Adjusted diluted earnings per share |
|
$ 1.15 |
|
$ 1.31 |
|||
|
|
|
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. |
|
(unaudited)
|
|||||||
|
(in thousands) |
|
|
|
|
|||
|
|
|||||||
|
Sales and merchandising revenues |
|
|
|
|
|||
|
Cost of sales and merchandising revenues |
|
|
|
|
|||
|
Gross profit |
|
|
|
|
|||
|
Operating, administrative and general expenses |
|
|
|
|
|||
|
Interest expense (income), net |
|
|
|
|
|||
|
Other income (loss), net |
|
|
|
|
|||
|
Income (loss) before income taxes |
|
|
|
|
|||
|
Income attributable to noncontrolling interests |
|
|
|
|
|||
|
Income (loss) before income taxes attributable to The Andersons, Inc.1 |
|
|
|
|
|||
|
Adjustments to income (loss) before income taxes2 |
|
|
|
|
|||
|
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 |
|
|
|
|
|||
|
|
|||||||
|
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 taxes2 |
4,049 |
— |
— |
4,049 |
|||
|
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 |
$ 32,630 |
$ 22,968 |
$ (10,697) |
$ 44,901 |
|||
|
|
|
(unaudited)
|
|||||||
|
(in thousands) |
|
|
|
|
|||
|
|
|||||||
|
Sales and merchandising revenues |
|
|
|
|
|||
|
Cost of sales and merchandising revenues |
|
|
|
|
|||
|
Gross profit |
|
|
|
|
|||
|
Operating, administrative and general expenses |
|
|
|
|
|||
|
Interest expense (income), net |
|
|
|
|
|||
|
Other income (loss), net |
|
|
|
|
|||
|
Income (loss) before income taxes |
|
|
|
|
|||
|
Income (loss) attributable to noncontrolling interests |
|
|
|
|
|||
|
Income (loss) before income taxes attributable to The Andersons, Inc.1 |
|
|
|
|
|||
|
Adjustments to income (loss) before income taxes2 |
|
|
|
|
|||
|
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 |
|
|
|
|
|||
|
|
|||||||
|
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 taxes2 |
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 |
|||
|
|
|
(unaudited)
|
|||||||
|
(in thousands) |
|
|
|
|
|||
|
|
|||||||
|
Net income (loss) |
|
|
|
|
|||
|
Interest expense (income) |
|
|
|
|
|||
|
Tax provision |
|
|
|
|
|||
|
Depreciation and amortization |
|
|
|
|
|||
|
EBITDA |
|
|
|
|
|||
|
Adjusting items impacting EBITDA: |
|||||||
|
Transaction related compensation |
|
|
|
|
|||
|
Loss on investments |
|
|
|
|
|||
|
Insured inventory and property recoveries, net |
|
|
|
|
|||
|
Gain on sale of businesses, net |
|
|
|
|
|||
|
Severance expense |
|
|
|
|
|||
|
Total adjusting items |
|
|
|
|
|||
|
Adjusted EBITDA |
|
|
|
|
|||
|
|
|||||||
|
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. |
|
(unaudited)
|
|||||||
|
(in thousands) |
|
|
|
|
|||
|
|
|||||||
|
Net income (loss) |
|
|
|
|
|||
|
Interest expense (income) |
|
|
|
|
|||
|
Tax provision |
|
|
|
|
|||
|
Depreciation and amortization |
|
|
|
|
|||
|
EBITDA |
|
|
|
|
|||
|
Adjusting items impacting EBITDA: |
|||||||
|
Transaction related compensation |
|
|
|
|
|||
|
Insured inventory and property recoveries, net |
|
|
|
|
|||
|
Gain on sale of businesses, net |
|
|
|
|
|||
|
Loss on investments |
|
|
|
|
|||
|
Severance expense |
|
|
|
|
|||
|
Total adjusting items |
|
|
|
|
|||
|
Adjusted EBITDA |
|
|
|
|
|||
|
|
|||||||
|
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 |
|||
|
(unaudited) |
|||||||||
|
|
|
||||||||
|
(in thousands) |
|
|
|
|
|||||
|
Net income |
|
|
|
|
|
||||
|
Interest expense |
|
|
|
|
|
||||
|
Tax provision (benefit) |
|
|
|
|
|
||||
|
Depreciation and amortization |
|
|
|
|
|
||||
|
EBITDA |
|
|
|
|
|
||||
|
Adjusting items impacting EBITDA: |
|||||||||
|
Transaction related compensation |
|
|
|
|
|
||||
|
Insured inventory and property damage (recoveries), net |
|
|
|
|
|
||||
|
Loss on investments |
|
|
|
|
|
||||
|
Severance expense |
|
|
|
|
|
||||
|
Gain on sale of businesses, net |
|
|
|
|
|
||||
|
Acquisition costs |
|
|
|
|
|
||||
|
Total adjusting items |
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
|
|
|
|
||||
|
|
|
||||||||
|
|
|
|
|
||||||
|
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 |
||||
|
(unaudited) |
|||||||
|
|
|
||||||
|
(in thousands) |
|
|
|
|
|||
|
Cash provided by (used in) operating activities |
|
$ 304,434 |
|
$ 64,807 |
|||
|
Changes in operating assets and liabilities |
|||||||
|
Accounts receivable |
|
(42,441) |
|
15,284 |
|||
|
Inventories |
|
308,640 |
|
477,723 |
|||
|
Commodity derivatives |
|
64,508 |
|
36,010 |
|||
|
Other current and non-current assets |
|
(52,510) |
|
(50,587) |
|||
|
Payables and other current and non-current liabilities |
|
(62,528) |
|
(550,797) |
|||
|
Total changes in operating assets and liabilities |
|
215,669 |
|
(72,367) |
|||
|
Cash from operations before working capital changes |
|
$ 88,765 |
|
$ 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. |
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SOURCE The Andersons, Inc.
