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| 8-K - 8-K - Andersons, Inc. | ande-20210504.htm |
NEWS RELEASEThe Andersons, Inc. Reports First Quarter Results
MAUMEE, OHIO, May 4, 2021 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2021.
First Quarter Highlights:
•Company reported net income attributable to The Andersons of $15.1 million, or $0.45 per diluted share, and adjusted net income of $15.5 million, or $0.46 per diluted share.
•Adjusted EBITDA was $80.2 million for the quarter, up $69.0 million year over year.
•Trade reported pretax income of $13.9 million and adjusted pretax income of $14.3 million on strong merchandising results.
•Ethanol reported pretax income attributable to The Andersons of $2.9 million as ethanol prices and co-product margins improved.
•Plant Nutrient reported pretax income of $8.5 million on solid volume and margins.
•Rail reported pretax income of $4.9 million on railcar sales and credit recoveries.
"We are very pleased with the start to 2021 in this demand-driven agriculture rally. These results are our best first quarter performance since 2014 and reflect good execution coupled with the results of our multi-year cost reduction project. Commodity price volatility and market dislocations have created merchandising opportunities in many of the commodity supply chains that we touch in our Trade business and we expect that this will continue in the near term," said President and CEO Pat Bowe.
"Ethanol margins have improved significantly with ethanol prices reaching levels not seen in over six years, combined with strong margins on our newer high-protein feed and other co-products," added Bowe. "Plant Nutrient had its best first quarter since 2008 with increased volume and strong margins that we expect will continue into the peak planting season. Finally, while Rail has been slower to recover, it has also seen improved results."
| $ in millions, except per share amounts | |||||||||||
YTD 2021 | YTD 2020 | Variance | |||||||||
Pretax Income (Loss) Attributable to the Company1 | $ | 20.9 | $ | (39.1) | $ | 60.0 | |||||
Adjusted Pretax Income (Loss) Attributable to the Company1 | 21.3 | (37.8) | 59.1 | ||||||||
Trade1 | 14.3 | (8.7) | 23.0 | ||||||||
| Ethanol | 2.9 | (24.0) | 26.9 | ||||||||
| Plant Nutrient | 8.5 | (1.2) | 9.7 | ||||||||
| Rail | 4.9 | 1.0 | 3.9 | ||||||||
| Other | (9.3) | (5.0) | (4.3) | ||||||||
Net Income (Loss) Attributable to the Company | 15.1 | (37.7) | 52.8 | ||||||||
Adjusted Net Income (Loss) Attributable to the Company1 | 15.5 | (43.2) | 58.7 | ||||||||
| Diluted EPS | 0.45 | (1.15) | 1.60 | ||||||||
Adjusted Diluted EPS1 | 0.46 | (1.32) | 1.78 | ||||||||
EBITDA1 | 79.7 | 9.9 | 69.8 | ||||||||
Adjusted EBITDA1 | $ | 80.2 | $ | 11.2 | $ | 69.0 | |||||
1 Non-GAAP financial measures; see appendix for explanations and reconciliations.
Liquidity and Cash Management
"Our improved operating performance led to strong cash flow from operations before working capital changes of $89 million for the first quarter," said Executive Vice President and CFO Brian Valentine. "We were able to reduce total long-term debt by more than $35 million and maintained discipline over capital spending in the quarter. We continue to monitor the commodity price impact on our working capital lines and expect that short-term borrowings will continue at a higher level over the next few quarters; we have strong support from our lenders and expect that our capacity will be sufficient to cover our needs. We remain very focused on overall liquidity, disciplined risk management, and expense control."
The company has invested $16 million, net of proceeds from asset sales, on capital projects in the quarter. This is a reduction from 2020, primarily resulting from fewer railcar purchases, and the company expects to spend approximately $100 million in 2021.
Readily marketable inventories of $942 million at March 31, 2021, are supported by short-term borrowings of $915 million. The balance of readily marketable inventories is a significant increase from the March 31, 2020, balances. Short-term borrowings, while typically at a seasonal high in the spring, are further driven by the recent spike in commodity prices.
First Quarter Segment Overview
Trade Records $23 Million Improvement Driven by Merchandising Income
The Trade segment recorded improved adjusted pretax income of $14.3 million for the quarter compared to an adjusted pretax loss of $8.7 million in the first quarter of 2020. The difference in reported and adjusted income in both periods was attributable to stock compensation expense associated with the 2019 acquisition of Lansing Trade Group.
Strong commodity merchandising results are driving nearly all of the year over year improvement, including higher volumes in our propane business. Good positioning and execution within other domestic and export markets has also contributed to year over year improved performance. Operating expenses for the segment were down more than $11 million due to our multi-year cost reduction efforts.
The business continues to benefit from merchandising execution in this volatile, demand-driven market. While the volume of grain in store is expected to remain at levels below recent years for some time, high prices and strong elevation margins are expected to continue at least until the next harvest.
Trade’s first quarter adjusted EBITDA was $32.5 million, up significantly over first quarter 2020 adjusted EBITDA of $9.9 million.
Ethanol Improvement of nearly $27 Million on Improved Co-Product Values and Trading
The Ethanol segment reported pretax income attributable to the company of $2.9 million in the first quarter compared to the pretax loss attributable to the company of $24.0 million it realized in the same period in 2020.
The quarter over quarter improvement was driven by strong co-product margins at the five ethanol plants resulting from the overall price inflation of corn and soybean meal, improved margins for distiller's corn oil and incremental margins on merchandising of vegetable oil and ethanol trading. The segment recorded a non-cash mark-to-market charge of $1.1 million in 2021 compared to a charge of $9.6 million in the first quarter of 2020, a result of the ethanol market's reaction to the pandemic-related reductions in demand that began in March of last year.
Production volumes in the quarter were down slightly compared to 2020 and accelerated maintenance shutdowns at two plants occurred in March of 2021. Sales volumes for ethanol and corn oil are higher; driven by a larger portion of third party sales from the trading business. Ethanol board crush margins have improved significantly during the quarter as driving demand rebounds.
Ethanol recorded EBITDA of $22.0 million in the first quarter of 2021, up from 2020 first quarter EBITDA of $(17.5) million.
Plant Nutrient Best First Quarter since 2008; Rail Best Quarter since Fourth Quarter 2018
The Plant Nutrient segment posted a strong quarter, with year over year improvement of $9.7 million, recording pretax income of $8.5 million in the first quarter compared to a pretax loss of $1.2 million in the same period of the prior year. Demand was strong in the segment with an 18% increase in tons sold, in addition to stronger margins. Plant Nutrient’s current quarter EBITDA was $16.0 million compared to 2020 first quarter EBITDA of $6.9 million. Improvements were experienced across the breadth of product lines and reflect demand from favorable early spring weather, strong grower income, and well-positioned inventory.
Rail recorded first quarter pretax income of $4.9 million compared to $1.0 million of pretax income in the same period of the prior year. Its first quarter 2021 EBITDA was $17.0 million compared to its first quarter 2020 EBITDA of $14.4 million. High scrap steel prices allowed us to scrap older railcars where it made economic sense and, with credit recoveries, led to the improvement in the Leasing business.
Income Taxes; Corporate
The company has recorded income taxes at an effective rate of 30.2% and anticipates a full year effective rate of approximately 29%. This rate increase is a result of additional U.S. tax on income earned in foreign jurisdictions and non-deductible compensation expense.
Increases in Corporate expense are primarily a result of increased variable incentive compensation as a product of the strong first quarter performance. Year over year cost reductions, resulting from our cost savings initiatives, are reflected in our business segments.
Conference Call
The company will host a webcast on Wednesday, May 5, 2021, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its updated outlook for 2021. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 6648677). It is recommended that you call 10 minutes before the conference call begins.
To access the webcast, click on the link: https://edge.media-server.com/mmc/p/8d5b4ye6. Complete the four fields as directed and click "Submit." A replay of the call can also be accessed under the heading "Investors" on the company’s website at www.andersonsinc.com.
Annual Shareholder Meeting
On Friday, May 7, 2021, the company will host its virtual annual shareholder meeting.
Forward-Looking Statements
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, the COVID-19 pandemic and the risk factors set forth from time to time in the company’s filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company believes that adjusted pretax income (loss), pretax income (loss) attributable to the company, adjusted pretax income (loss) attributable to the company, adjusted net income attributable to the company, adjusted diluted earnings per share, earnings before interest, taxes, depreciation and amortization (or EBITDA), adjusted EBITDA and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to net income, income (loss) before income taxes, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.
Company Description
Founded in 1947 in Maumee, Ohio, The Andersons, Inc. (Nasdaq: ANDE) is a diversified company rooted in agriculture that conducts business in the commodity trading, ethanol, plant nutrient, and rail sectors. Guided by its Statement of Principles, The Andersons strives to provide extraordinary service to its customers, help its employees improve, support its communities, and increase the value of the company. For more information, please visit www.andersonsinc.com.
Investor Relations Contact
Michael Hoelter
Vice President, Corporate Controller and Investor Relations
Phone: 419-897-6715
E-mail: investorrelations@andersonsinc.com
The Andersons, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
| Three months ended March 31, | |||||||||||
| (in thousands, except per share data) | 2021 | 2020 | |||||||||
| Sales and merchandising revenues | $ | 2,635,729 | $ | 1,853,105 | |||||||
| Cost of sales and merchandising revenues | 2,513,017 | 1,789,975 | |||||||||
| Gross profit | 122,712 | 63,130 | |||||||||
| Operating, administrative and general expenses | 99,872 | 105,060 | |||||||||
| Interest expense, net | 13,169 | 15,587 | |||||||||
| Other income, net: | |||||||||||
| Equity in earnings of affiliates, net | 1,794 | 129 | |||||||||
| Other income, net | 7,542 | 4,813 | |||||||||
| Income (loss) before income taxes | 19,007 | (52,575) | |||||||||
| Income tax provision (benefit) | 5,745 | (1,464) | |||||||||
| Net income (loss) | 13,262 | (51,111) | |||||||||
| Net loss attributable to the noncontrolling interests | (1,845) | (13,449) | |||||||||
| Net income (loss) attributable to The Andersons, Inc. | $ | 15,107 | $ | (37,662) | |||||||
| Per common share: | |||||||||||
| Basic earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 0.46 | $ | (1.15) | |||||||
| Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 0.45 | $ | (1.15) | |||||||
The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
| (in thousands) | March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||||||||||||
| Assets | |||||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 35,393 | $ | 29,123 | $ | 19,693 | |||||||||||
| Accounts receivable, net | 699,725 | 659,834 | 539,671 | ||||||||||||||
| Inventories | 1,295,061 | 1,300,693 | 1,028,076 | ||||||||||||||
| Commodity derivative assets – current | 317,939 | 320,706 | 149,070 | ||||||||||||||
| Other current assets | 88,771 | 106,053 | 85,372 | ||||||||||||||
| Total current assets | 2,436,889 | 2,416,409 | 1,821,882 | ||||||||||||||
| Other assets: | |||||||||||||||||
| Goodwill | 135,709 | 135,709 | 135,360 | ||||||||||||||
| Other intangible assets, net | 135,611 | 142,940 | 167,398 | ||||||||||||||
| Right of use assets, net | 55,802 | 56,031 | 62,182 | ||||||||||||||
| Other assets, net | 63,858 | 49,907 | 47,215 | ||||||||||||||
| Total other assets | 390,980 | 384,587 | 412,155 | ||||||||||||||
| Rail assets leased to others, net | 580,599 | 591,946 | 597,069 | ||||||||||||||
| Property, plant and equipment, net | 858,269 | 879,179 | 921,585 | ||||||||||||||
| Total assets | $ | 4,266,737 | $ | 4,272,121 | $ | 3,752,691 | |||||||||||
| Liabilities and equity | |||||||||||||||||
| Current liabilities: | |||||||||||||||||
| Short-term debt | 915,205 | 403,703 | 392,450 | ||||||||||||||
| Trade and other payables | 538,691 | 957,683 | 553,416 | ||||||||||||||
| Customer prepayments and deferred revenue | 163,935 | 180,160 | 121,148 | ||||||||||||||
| Commodity derivative liabilities – current | 91,448 | 146,990 | 90,491 | ||||||||||||||
| Current maturities of long-term debt | 49,937 | 75,475 | 80,758 | ||||||||||||||
| Accrued expenses and other current liabilities | 158,900 | 167,671 | 147,225 | ||||||||||||||
| Total current liabilities | 1,918,116 | 1,931,682 | 1,385,488 | ||||||||||||||
| Long-term lease liabilities | 37,246 | 37,177 | 43,308 | ||||||||||||||
| Long-term debt, less current maturities | 906,720 | 916,540 | 987,526 | ||||||||||||||
| Deferred income taxes | 173,481 | 170,147 | 156,804 | ||||||||||||||
| Other long-term liabilities | 48,623 | 55,915 | 65,703 | ||||||||||||||
| Total liabilities | 3,084,186 | 3,111,461 | 2,638,829 | ||||||||||||||
| Total equity | 1,182,551 | 1,160,660 | 1,113,862 | ||||||||||||||
| Total liabilities and equity | $ | 4,266,737 | $ | 4,272,121 | $ | 3,752,691 | |||||||||||
The Andersons, Inc.
Consolidated Statements of Cash Flows
(unaudited)
| Three months ended March 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Operating Activities | |||||||||||
| Net income (loss) | $ | 13,262 | $ | (51,111) | |||||||
| Adjustments to reconcile net income (loss) to cash used in operating activities: | |||||||||||
| Depreciation and amortization | 47,504 | 46,898 | |||||||||
| Bad debt (recovery) expense, net | (1,686) | 4,310 | |||||||||
| Equity in earnings of affiliates, net of dividends | (1,794) | (129) | |||||||||
| Gain on sales of Rail assets and related leases, net | (2,635) | (645) | |||||||||
| Stock-based compensation expense | 1,990 | 2,880 | |||||||||
| Deferred federal income tax | (2) | 16,474 | |||||||||
| Inventory write down | 2,479 | 10,571 | |||||||||
| Other | 2,100 | 4,001 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (33,476) | (11,737) | |||||||||
| Inventories | 5,007 | 122,323 | |||||||||
| Commodity derivatives | (53,295) | 1,231 | |||||||||
| Other assets | 16,740 | (10,887) | |||||||||
| Payables and other accrued expenses | (441,921) | (362,609) | |||||||||
| Net cash used in operating activities | (445,727) | (228,430) | |||||||||
| Investing Activities | |||||||||||
| Purchases of Rail assets | (2,611) | (13,270) | |||||||||
| Proceeds from sale of Rail assets | 5,383 | 2,405 | |||||||||
| Purchases of property, plant and equipment and capitalized software | (16,919) | (19,307) | |||||||||
| Proceeds from sale of assets | 385 | 36 | |||||||||
| Purchase of investments | (2,800) | (280) | |||||||||
| Other | 832 | — | |||||||||
| Net cash used in investing activities | (15,730) | (30,416) | |||||||||
| Financing Activities | |||||||||||
| Net change in short-term borrowings | 510,160 | 251,712 | |||||||||
| Proceeds from issuance of long-term debt | 89,700 | 90,736 | |||||||||
| Payments of long-term debt | (125,884) | (104,913) | |||||||||
| Contributions from noncontrolling interest owner | 1,960 | 3,307 | |||||||||
| Distributions to noncontrolling interest owner | — | (10,298) | |||||||||
| Payments of debt issuance costs | (1,225) | (250) | |||||||||
| Dividends paid | (5,839) | (5,723) | |||||||||
| Other | (1,110) | (994) | |||||||||
| Net cash provided by financing activities | 467,762 | 223,577 | |||||||||
| Effect of exchange rates on cash and cash equivalents | (35) | 67 | |||||||||
| Increase (decrease) in cash and cash equivalents | 6,270 | (35,202) | |||||||||
| Cash and cash equivalents at beginning of period | 29,123 | 54,895 | |||||||||
| Cash and cash equivalents at end of period | $ | 35,393 | $ | 19,693 | |||||||
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) | 2021 | 2020 | |||||||||
| Net income (loss) attributable to The Andersons, Inc. | $ | 15,107 | $ | (37,662) | |||||||
| Items impacting other income, net of tax: | |||||||||||
| Transaction related stock compensation | 483 | 1,331 | |||||||||
| Income tax impact of adjustments (a) | (121) | (6,910) | |||||||||
| Total adjusting items, net of tax | 362 | (5,579) | |||||||||
| Adjusted net income (loss) attributable to The Andersons, Inc. | $ | 15,469 | $ | (43,241) | |||||||
| Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders | $ | 0.45 | $ | (1.15) | |||||||
| Impact on diluted earnings (loss) per share | $ | 0.01 | $ | (0.17) | |||||||
| Adjusted diluted earnings (loss) per share | $ | 0.46 | $ | (1.32) | |||||||
(a) Prior year income tax adjustments include $(6.6) million due to CARES Act benefits.
Adjusted net income (loss) attributable to the Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item.
The Andersons, Inc.
Segment Data
(unaudited)
| (in thousands) | Trade | Ethanol | Plant Nutrient | Rail | Other | Total | |||||||||||||||||||||||||||||
| Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
| Sales and merchandising revenues | $ | 1,982,508 | $ | 442,959 | $ | 169,252 | $ | 41,010 | $ | — | $ | 2,635,729 | |||||||||||||||||||||||
| Gross profit | 72,557 | 8,483 | 32,401 | 9,271 | — | 122,712 | |||||||||||||||||||||||||||||
| Operating, administrative and general expenses | 56,931 | 6,656 | 23,399 | 2,874 | 10,012 | 99,872 | |||||||||||||||||||||||||||||
| Other income (loss), net | 3,486 | 1,327 | 587 | 1,674 | 468 | 7,542 | |||||||||||||||||||||||||||||
| Income (loss) before income taxes | 13,855 | 1,081 | 8,523 | 4,891 | (9,343) | 19,007 | |||||||||||||||||||||||||||||
| Loss attributable to the noncontrolling interests | — | (1,845) | — | — | — | (1,845) | |||||||||||||||||||||||||||||
| Income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 13,855 | $ | 2,926 | $ | 8,523 | $ | 4,891 | $ | (9,343) | $ | 20,852 | |||||||||||||||||||||||
| Adjustments to income (loss) before income taxes (b) | 483 | — | — | — | — | 483 | |||||||||||||||||||||||||||||
| Adjusted income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 14,338 | $ | 2,926 | $ | 8,523 | $ | 4,891 | $ | (9,343) | $ | 21,335 | |||||||||||||||||||||||
| Three months ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
| Sales and merchandising revenues | $ | 1,378,040 | $ | 313,039 | $ | 124,913 | $ | 37,113 | $ | — | $ | 1,853,105 | |||||||||||||||||||||||
| Gross profit | 62,466 | (29,399) | 20,364 | 9,699 | — | 63,130 | |||||||||||||||||||||||||||||
| Operating, administrative and general expenses | 68,155 | 6,115 | 19,741 | 5,259 | 5,790 | 105,060 | |||||||||||||||||||||||||||||
| Other income (loss), net | 2,765 | 446 | (30) | 1,050 | 582 | 4,813 | |||||||||||||||||||||||||||||
| Income (loss) before income taxes | (9,983) | (37,425) | (1,192) | 1,007 | (4,982) | (52,575) | |||||||||||||||||||||||||||||
| Loss attributable to the noncontrolling interests | — | (13,449) | — | — | — | (13,449) | |||||||||||||||||||||||||||||
| Income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | (9,983) | $ | (23,976) | $ | (1,192) | $ | 1,007 | $ | (4,982) | $ | (39,126) | |||||||||||||||||||||||
| Adjustments to income (loss) before income taxes (b) | 1,331 | — | — | — | — | 1,331 | |||||||||||||||||||||||||||||
| Adjusted income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | (8,652) | $ | (23,976) | $ | (1,192) | $ | 1,007 | $ | (4,982) | $ | (37,795) | |||||||||||||||||||||||
| (a) Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. (b) Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. | |||||||||||||||||||||||||||||||||||
The Andersons, Inc.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
| (in thousands) | Trade | Ethanol | Plant Nutrient | Rail | Other | Total | |||||||||||||||||||||||||||||
| Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 13,855 | $ | 1,081 | $ | 8,523 | $ | 4,891 | $ | (15,088) | $ | 13,262 | |||||||||||||||||||||||
| Interest expense (income) | 7,051 | 2,073 | 1,066 | 3,180 | (201) | 13,169 | |||||||||||||||||||||||||||||
| Tax provision (benefit) | — | — | — | — | 5,745 | 5,745 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 11,125 | 18,814 | 6,381 | 8,887 | 2,297 | 47,504 | |||||||||||||||||||||||||||||
| EBITDA | 32,031 | 21,968 | 15,970 | 16,958 | (7,247) | 79,680 | |||||||||||||||||||||||||||||
| Adjusting items impacting EBITDA: | |||||||||||||||||||||||||||||||||||
| Transaction related stock compensation | 483 | — | — | — | — | 483 | |||||||||||||||||||||||||||||
| Total adjusting items | 483 | — | — | — | — | 483 | |||||||||||||||||||||||||||||
| Adjusted EBITDA attributable to The Andersons, Inc. | $ | 32,514 | $ | 21,968 | $ | 15,970 | $ | 16,958 | $ | (7,247) | $ | 80,163 | |||||||||||||||||||||||
| Three months ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (9,983) | $ | (37,425) | $ | (1,192) | $ | 1,007 | $ | (3,518) | $ | (51,111) | |||||||||||||||||||||||
| Interest expense (income) | 7,188 | 2,357 | 1,785 | 4,483 | (226) | 15,587 | |||||||||||||||||||||||||||||
| Tax provision (benefit) | — | — | — | — | (1,464) | (1,464) | |||||||||||||||||||||||||||||
| Depreciation and amortization | 11,344 | 17,551 | 6,341 | 8,919 | 2,743 | 46,898 | |||||||||||||||||||||||||||||
| EBITDA | 8,549 | (17,517) | 6,934 | 14,409 | (2,465) | 9,910 | |||||||||||||||||||||||||||||
| Adjusting items impacting EBITDA: | |||||||||||||||||||||||||||||||||||
| Transaction related stock compensation | 1,331 | — | — | — | — | 1,331 | |||||||||||||||||||||||||||||
| Total adjusting items | 1,331 | — | — | — | — | 1,331 | |||||||||||||||||||||||||||||
| Adjusted EBITDA attributable to The Andersons, Inc. | $ | 9,880 | $ | (17,517) | $ | 6,934 | $ | 14,409 | $ | (2,465) | $ | 11,241 | |||||||||||||||||||||||
The Andersons, Inc.
Cash from Operations Before Working Capital Changes
A non-GAAP financial measure
(unaudited)
| Three months ended March 31, | |||||||||||
| (in thousands, except per share data) | 2021 | 2020 | |||||||||
| Cash provided by (used in) operating activities | $ | (445,727) | $ | (228,430) | |||||||
| Changes in operating assets and liabilities | |||||||||||
| Accounts receivable | (33,476) | (11,737) | |||||||||
| Inventories | 5,007 | 122,323 | |||||||||
| Commodity derivatives | (53,295) | 1,231 | |||||||||
| Other assets | 16,740 | (10,887) | |||||||||
| Payables and other accrued expenses | (441,921) | (362,609) | |||||||||
| Total changes in operating assets and liabilities | (506,945) | (261,679) | |||||||||
| Less: changes in CARES Act tax refund receivable | 27,697 | (21,547) | |||||||||
| Cash from operations before working capital changes | $ | 88,915 | $ | 11,702 | |||||||
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.