EX-99.1 3 ex-99pressreleaseq22018.htm EXHIBIT 99.1 Exhibit


logoa04a04.gif NEWS RELEASE

The Andersons, Inc. Reports Second Quarter Results
 

Maumee, Ohio, August 7, 2018 - The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the second quarter which ended June 30, 2018.

The Company reports net income of $21.5 million, or $0.76 per diluted share, up considerably from both the net loss of $26.7 million, or ($0.94) per diluted share, and adjusted net income of $15.3 million, or $0.54 per diluted share, reported in the prior year. Second quarter 2018 reported results include noncash pretax impairment charges totaling $6.3 million. The earnings per share impact of these charges is approximately $0.17 per diluted share.

•
Grain Group records much improved pretax income of $9.9 million, net of a $1.6 million impairment charge on a recently sold Tennessee facility, as market volatility provides better merchandising opportunities and affiliate results continue to improve.
•
Ethanol Group earns $6.1 million of pretax income on strong execution and improved DDG prices.
•
Plant Nutrient Group reports pretax income of $15.1 million on continued lower primary and specialty fertilizer margins, offset by strong performance by the lawn and contract manufacturing business.
•
Rail Group earns $0.9 million of pretax income despite a $4.7 million impairment charge on railcars intended to be scrapped, as the leasing market continues to improve and the railcar repair business rebounds.

The Company reported second quarter 2018 net income attributable to The Andersons of $21.5 million, or $0.76 per diluted share, on revenues of $911 million. This result is a significant improvement over the net loss attributable to the Company of $26.7 million, or $(0.94) per diluted share and adjusted net income attributable to the Company of $15.3 million, or $0.54 per diluted share, on revenues of $994 million recorded in the same period of 2017. The Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) was $59.7 million for the quarter, compared to $8.9 million of EBITDA and $50.9 million of adjusted EBITDA recorded in the second quarter of 2017.

Results for the quarter included pretax impairment charges of $4.7 million on idle railcars held for sale and $1.6 million on the Grain Group’s Como, Tennessee. facility in anticipation of its recent sale. The decrease in revenues year over year was primarily the result of the Company’s adoption of new revenue recognition rules at the beginning of 2018 that have changed the accounting treatment of a significant amount of Grain’s sales transactions. This change has no impact on the amount of gross profit recognized on these transactions.

“As in the first quarter, our Grain and Ethanol businesses each posted significantly better year-over-year results, but our Plant Nutrient and Rail businesses posted lower results compared to last year,” said CEO Pat Bowe.
 




“For the seventh consecutive quarter, our Grain Group recorded improved year-over-year results,” Bowe continued. “The group’s second quarter results improved by approximately $4.5 million when excluding the Tennessee asset impairment charge, and were highlighted by better results from merchandising and Lansing Trade Group. Ethanol Group results improved once again year over year due to higher volumes linked to plant optimization and improved DDG margins. The Plant Nutrient Group’s lawn and contract manufacturing business continued to grow, but that was not enough to offset the continued squeeze in margins for both primary and specialty nutrients, which suffered from continued competitive pricing pressure. The Rail Group’s results were comparable year over year notwithstanding its decision to scrap about 600 idle cars. Utilization and total cars on lease improved sequentially and year over year, signaling a continued modest market upturn.”

For purposes of better understanding ongoing results, the expanded pretax income and EBITDA disclosures in the table below adjust for amounts that are not reflective of ongoing operations. Specifically, an adjustment was made for the goodwill impairment charged in the second quarter of 2017 associated with the Plant Nutrient Group.

$ in millions
Second Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Reported Pretax Income (Loss)
$29.2
$(19.1)
$48.3
$26.9
$(24.6)
$51.5
Goodwill Impairment
—
42.0
(42.0)
—
42.0
(42.0)
Adjusted Pretax Income
$29.2
$22.9
$6.3
$26.9
$17.4
$9.5
EBITDA
$59.7
$8.9
$50.8
$87.3
$30.3
$57.0
Adjusted EBITDA
$59.7
$50.9
$8.8
$87.3
$72.3
$15.0

For the first six months of the year, the Company recorded net income of $19.8 million, or $0.70 per diluted share, compared to a net loss of $29.7 million, or ($1.05) per diluted share, and adjusted net income of $12.3 million, or $0.43 per diluted share, during the same period last year. Total EBITDA for the first half of 2018 was $87.3 million compared to first-half 2017 EBITDA of $30.3 million and adjusted EBITDA of $72.3 million.

Second Quarter Segment Overview

Grain Group Operating Income Increases Again Compared to Prior Year

The Grain Group generated pretax income of $9.9 million in the quarter. Included in those results was a $1.6 million impairment charge related to some Tennessee assets that were sold recently. Notwithstanding that charge, the group’s results were almost 40 percent better than the $6.9 million pretax income earned in the same period last year.

The table below separates the results of the base grain business from those of the group’s affiliates, which include Lansing Trade Group (LTG) and Thompsons Limited.

$ in millions
Second Quarter
Year to Date
Adjusted Pretax Income
2018
2017
Vs
2018
2017
Vs
Base Grain
$4.5
$4.1
$0.4
$2.8
$0.6
$2.2
Grain Affiliates
5.4
2.8
2.6
7.0
1.3
5.7
Total Grain Group
$9.9
$6.9
$3.0
$9.8
$1.9
$7.9
EBITDA
$17.9
$14.2
$3.7
$24.9
$16.3
$8.6





Excluding the impairment charge, the base grain business drove about 40 percent of the improvement, while affiliates accounted for the rest. Base grain pretax income after adjustment for the impairment charge improved by $1.8 million in the second quarter compared to 2017 results. The group was able to benefit from increased price volatility, which led to considerably better merchandising margins. Income from holding grain in inventory was comparable year over year.

LTG had an excellent quarter, accounting for all the year-over-year improvement by the affiliates. The improvement spanned all its businesses.

Ethanol Group Results Improve on Higher Volume and Better DDG Values

The Ethanol Group produced $6.1 million of pretax income attributable to the Company in the second quarter. These results were $1.4 million or almost 30 percent higher than the $4.7 million pretax income attributable to the Company for the same period in 2017, primarily due to higher volume and better DDG values.

$ in millions
Second Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Equity in Earnings of Affiliates
$4.3
$3.5
$0.8
$5.9
$2.9
$3.0
Consolidated Operations and Service Fees
1.7
1.1
0.6
1.7
3.5
(1.8)
Pretax Income
6.0
4.6
1.4
7.6
6.4
1.2
Attributable to Noncontrolling Interests
(0.1)
(0.1)
—
(0.4)
—
(0.4)
Ethanol Group Pretax Income Attributable to The Andersons
$6.1
$4.7
$1.4
$8.0
$6.4
$1.6

The four ethanol plants combined achieved second quarter and first half production records of more than 121 million and 238 million gallons, about 5 percent and 11 percent higher than the comparable periods, respectively. This is in part because the new Albion capacity came on line in March 2017. E85 sales continued to grow at a rapid pace.

While domestic and export demands have both been strong so far in 2018, the impact of current tariffs and the ultimate resolution of various trade disputes leave the future of margins and export business uncertain for the industry.

While Volume Was Up, Plant Nutrient Group Continued to Be Impacted by Lower Margins

The Plant Nutrient Group recorded pretax income of $15.1 million in the second quarter compared to a pretax loss of $25.8 million and adjusted pretax income of $16.2 million in the second quarter of 2017. The group’s second quarter 2018 EBITDA was $23.5 million, a $1.2 million or 5 percent decrease from adjusted 2017 second quarter results.













For purposes of better understanding ongoing results, the Company has expanded the Plant Nutrient Group’s pretax income and EBITDA disclosures in the table below to adjust for the second quarter 2017 goodwill impairment associated with the wholesale fertilizer business.

$ in millions
Second Quarter
Year to Date
 
     2018
     2017
Vs
     2018
     2017
Vs
Reported Pretax Income
$15.1
$(25.8)
$40.9
$16.2
$(19.2)
$35.4
Goodwill Impairment
—
42.0
(42.0)
—
42.0
(42.0)
Adjusted Pretax Income
$15.1
$16.2
$(1.1)
$16.2
$22.8
$(6.6)
EBITDA
$23.5
$(17.3)
$40.8
$32.8
$(2.1)
$34.9
Adjusted EBITDA
$23.5
$24.7
$(1.2)
$32.8
$39.9
$(7.1)

Sales volumes for both primary and specialty nutrients were strong for the quarter after a slow start due to adverse weather that delayed planting. However, both product segments struggled with continued margin erosion.

The lawn and contract manufacturing business continued to be a bright spot for the group, registering results that were more than 30 percent better year over year for the second consecutive quarter.
 
Rail Group Decides to Scrap Certain Idle Railcars; Leasing Market Conditions Continue to Improve

The Rail Group earned second quarter pretax income of $0.9 million compared to $5.9 million in the same period of the prior year. The difference was attributable to the decision to scrap nearly 600 idle railcars. About 500 of those railcars were not scrapped by the end of the quarter, which triggered an impairment charge of $4.7 million. A loss of $0.5 million was recognized on the remaining railcars. The decision will generate cash and improve future operating performance by approximately $1.4 million annually.

$ in millions
Second Quarter
Year to Date
Pretax Income
     2018
     2017
Vs
2018
2017
Vs
Lease Income
$2.1
$2.9
$(0.8)
$4.2
$3.5
$0.7
Car Sales
(3.0)
1.4
(4.4)
(0.7)
5.0
(5.7)
Services and Other
1.8
1.6
0.2
1.4
3.4
(2.0)
Total Rail Group
$0.9
$5.9
$(5.0)
$4.9
$11.9
$(7.0)
EBITDA
$10.8
$13.6
$(2.8)
$24.3
$26.7
$(2.4)
   Utilization Rate
89.5%
84.4%
5.1%
88.7%
84.0%
4.7%


Base leasing operations earned $2.1 million, matching first quarter results but falling short of year-over-year results by $0.8 million due to higher maintenance expense, despite 5.1 percent higher year-over-year utilization. Utilization averaged 89.5 percent during the quarter compared to 87.9 percent sequentially and 84.4 percent during the same period last year. The average number of cars on lease rose about 3 percent year over year, while average lease rates fell slightly.

The group netted a pretax loss of $3.0 million on railcars sold, or to be sold, in the quarter compared to pretax income of $1.4 million in the second quarter of 2017. In addition to the idle railcar scrap program, the group took advantage of multi-year high scrap prices to scrap 515 additional railcars during the quarter. When the scrapping project is complete, the utilization rate should rise by approximately 2




percent excluding other factors. The group maintained the size of the fleet and reduced its average age during the quarter by buying 669 cars for $21 million.

Rail’s service and other businesses earned pretax income of $1.8 million in the quarter, somewhat better than for the same period of 2017. Repair volumes were up after a first quarter 2018 lull. The group’s repair facilities set a quarterly record for revenue and pretax income.

The group also recently announced that it has agreed to acquire a shuttered railcar facility in Danville, Illinois, with the intent to open it as a full-service railcar repair facility by year end.

Company Reduces Other Net Company-Level Expenses

Unallocated net Company-level expenses for the second quarter of 2018 fell by $1.1 million to $2.8 million. For the second quarter of 2017, the Company reported $10.6 million net expense, which included unallocated expenses of $3.9 million and a $6.7 million pretax loss from the former Retail business.

Conference Call

The Company will host a webcast on Wednesday, August 8, 2018 at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its updated outlook for 2018. To dial-in to the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 5074829). We recommend that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: http://edge.media-server.com/m6/p/6wddy3qc. Log on.
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 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 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 adjusted pretax income, EBITDA and adjusted EBITDA provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and better period-to-period comparability. Adjusted pretax income, EBITDA and adjusted EBITDA do not and should not be considered as alternatives to net income or income before income taxes as determined by generally accepted accounting principles. Reconciliations of the non-GAAP to GAAP measures may be found within the financial tables provided in the release.

Company Description

Founded in Maumee, Ohio in 1947, The Andersons is a diversified Company rooted in agriculture conducting business across North America in the grain, ethanol, plant nutrient and rail sectors. Through 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, visit The Andersons online at www.andersonsinc.com.


Investor Relations Contact    
John P. Kraus    
Director, Investor Relations
Phone: 419-891-6544
E-mail: investor_relations@andersonsinc.com








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)
2018
 
2017
 
2018
 
2017
Sales and merchandising revenues
$
911,402

 
$
993,662

 
$
1,547,141

 
$
1,845,678

Cost of sales and merchandising revenues
820,928

 
905,828

 
1,392,962

 
1,681,386

Gross profit
90,474

 
87,834

 
154,179

 
164,292

 
 
 
 
 
 
 
 
Operating, administrative and general expenses
59,853

 
69,544

 
124,110

 
151,089

Asset impairment
6,272

 
—

 
6,272

 
—

Goodwill impairment
—

 
42,000

 
—

 
42,000

Interest expense
7,825

 
5,988

 
14,824

 
12,088

Other income:
 
 
 
 
 
 
 
  Equity in earnings of affiliates
9,803

 
6,385

 
13,376

 
4,507

  Other income, net
2,828

 
4,248

 
4,514

 
11,743

Income (loss) before income taxes
29,155

 
(19,065
)
 
26,863

 
(24,635
)
Income tax provision (benefit)
7,742

 
7,652

 
7,432

 
5,117

Net income (loss)
21,413

 
(26,717
)
 
19,431

 
(29,752
)
Net income (loss) attributable to the noncontrolling interests
(116
)
 
(64
)
 
(398
)
 
(10
)
Net income (loss) attributable to The Andersons, Inc.
$
21,529

 
$
(26,653
)
 
$
19,829

 
$
(29,742
)
 
 
 
 
 
 
 
 
Per common share:
 
 
 
 
 
 
 
Basic earnings (loss) attributable to The Andersons, Inc. common shareholders
$
0.76

 
$
(0.94
)
 
$
0.70

 
$
(1.05
)
Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders
$
0.76

 
$
(0.94
)
 
$
0.70

 
$
(1.05
)
Dividends paid
$
0.165

 
$
0.160

 
$
0.330

 
$
0.320









The Andersons, Inc.
Reconciliation to Adjusted Net Income (unaudited)
 
Three months ended June 30,
 
Six months ended June 30,
(in thousands, except per share data)

2018
 
2017
 
2018
 
2017
Net income (loss) attributable to The Andersons, Inc.
$
21,529

 
$
(26,653
)
 
$
19,829

 
$
(29,742
)
Items impacting other income, net of tax:
 
 
 
 
 
 
 
Goodwill impairment
—

 
42,000

 
—

 
42,000

Total adjusting items
—

 
42,000

 
—

 
42,000

Adjusted net income attributable to The Andersons, Inc.
$
21,529

 
$
15,347

 
$
19,829

 
$
12,258

 
 
 
 
 
 
 
 
Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders
$
0.76

 
$
(0.94
)
 
$
0.70

 
$
(1.05
)
 
 
 
 
 
 
 
 
Impact on diluted earnings per share
—

 
1.48

 
—

 
1.48

Adjusted diluted earnings per share
$
0.76

 
$
0.54

 
$
0.70

 
$
0.43






The Andersons, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
June 30, 2018
 
December 31, 2017
 
June 30, 2017
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
  Cash and cash equivalents
$
58,611

 
$
34,919

 
$
18,934

  Restricted cash
—

 
—

 
1,033

  Accounts receivable, net
218,476

 
183,238

 
186,331

  Inventories
495,611

 
648,703

 
463,205

  Commodity derivative assets – current
54,259

 
30,702

 
11,619

  Other current assets
42,648

 
63,790

 
59,873

  Assets held for sale
9,816

 
37,859

 
10,028

Total current assets
879,421

 
999,211

 
751,023

 
 
 
 
 
 
Other assets:
 
 
 
 
 
  Commodity derivative assets – noncurrent
1,008

 
310

 
1,191

  Other assets, net
138,201

 
131,474

 
145,283

  Equity method investments
232,159

 
223,239

 
215,794

 
371,368

 
355,023

 
362,268

Rail Group assets leased to others, net
458,424

 
423,443

 
375,092

Property, plant and equipment, net
408,575

 
384,677

 
423,042

Total assets
$
2,117,788

 
$
2,162,354

 
$
1,911,425

 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
Current liabilities:
 
 
 
 
 
  Short-term debt
$
185,000

 
$
22,000

 
$
124,000

  Trade and other payables
282,221

 
503,571

 
267,194

  Customer prepayments and deferred revenue
16,103

 
59,710

 
15,113

  Commodity derivative liabilities – current
85,160

 
29,651

 
18,104

  Accrued expenses and other current liabilities
74,512

 
69,579

 
69,256

  Current maturities of long-term debt
13,700

 
54,205

 
62,482

Total current liabilities
656,696

 
738,716

 
556,149

 
 
 
 
 
 
Other long-term liabilities
30,325

 
33,129

 
34,441

Commodity derivative liabilities – noncurrent
3,202

 
825

 
334

Employee benefit plan obligations
26,131

 
26,716

 
36,837

Long-term debt, less current maturities
435,580

 
418,339

 
354,066

Deferred income taxes
118,864

 
121,730

 
181,806

Total liabilities
1,270,798

 
1,339,455

 
1,163,633

Total equity
846,990

 
822,899

 
747,792

Total liabilities and equity
$
2,117,788

 
$
2,162,354

 
$
1,911,425







The Andersons, Inc.
Segment Data (unaudited)
(in thousands)
Grain
 
Ethanol
 
Plant Nutrient
 
Rail
 
Other
 
Total
Three months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
365,920

 
$
200,938

 
$
303,106

 
$
41,438

 
$
—

 
$
911,402

Gross profit
34,707

 
5,042

 
37,167

 
13,558

 
—

 
90,474

Equity in earnings of affiliates
5,510

 
4,293

 
—

 
—

 
—

 
9,803

Other income, net
727

 
45

 
622

 
675

 
759

 
2,828

Income (loss) before income taxes
9,877

 
6,009

 
15,124

 
944

 
(2,799
)
 
29,155

Income (loss) attributable to the noncontrolling interests
—

 
(116
)
 
—

 
—

 
—

 
(116
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
9,877

 
$
6,125

 
$
15,124

 
$
944

 
$
(2,799
)
 
$
29,271

Three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
488,447

 
$
187,831

 
$
264,736

 
$
38,149

 
$
14,499

 
$
993,662

Gross profit
30,447

 
3,320

 
39,934

 
12,699

 
1,434

 
87,834

Equity in earnings of affiliates
2,903

 
3,482

 
—

 
—

 
—

 
6,385

Other income, net
1,861

 
15

 
636

 
492

 
1,244

 
4,248

Income (loss) before income taxes
6,929

 
4,596

 
(25,825
)
 
5,860

 
(10,625
)
 
(19,065
)
Income (loss) attributable to the noncontrolling interest
—

 
(64
)
 
—

 
—

 
—

 
(64
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
6,929

 
$
4,660

 
$
(25,825
)
 
$
5,860

 
$
(10,625
)
 
$
(19,001
)
Six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
642,772

 
$
373,776

 
$
438,723

 
$
91,870

 
$
—

 
$
1,547,141

Gross profit
60,757

 
7,908

 
59,404

 
26,110

 
—

 
$
154,179

Equity in earnings of affiliates
7,497

 
5,879

 
—

 
—

 
—

 
$
13,376

Other income, net
1,573

 
138

 
1,274

 
691

 
838

 
$
4,514

Income (loss) before income taxes
9,847

 
7,566

 
16,215

 
4,913

 
(11,678
)
 
$
26,863

Income (loss) attributable to the noncontrolling interests
—

 
(398
)
 
—

 
—

 
—

 
$
(398
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
9,847

 
$
7,964

 
$
16,215

 
$
4,913

 
$
(11,678
)
 
$
27,261

Six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
966,975

 
$
341,984

 
$
411,323

 
$
78,539

 
$
46,857

 
$
1,845,678

Gross profit
54,096

 
8,860

 
65,742

 
25,007

 
10,587

 
164,292

Equity in earnings of affiliates
1,558

 
2,949

 
—

 
—

 
—

 
4,507

Other income, net
2,507

 
22

 
6,200

 
1,571

 
2,229

 
12,529

Income (loss) before income taxes
1,856

 
6,366

 
(19,154
)
 
11,938

 
(25,641
)
 
(24,635
)
Income (loss) attributable to the noncontrolling interest
—

 
(10
)
 
—

 
—

 
—

 
(10
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
1,856

 
$
6,376

 
$
(19,154
)
 
$
11,938

 
$
(25,641
)
 
$
(24,625
)
(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.




The Andersons, Inc.
Reconciliation to EBITDA and Adjusted EBITDA (unaudited)
(in thousands)
 Grain
 
 Ethanol
 
 Plant Nutrient
 
 Rail
 
 Other
 
 Total
Three months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
9,877

 
$
6,009

 
$
15,124

 
$
944

 
$
(2,799
)
 
$
29,155

Income (loss) attributable to the noncontrolling interest
—

 
(116
)
 
—

 
—

 
—

 
(116
)
Income (loss) before income taxes attributable to The Andersons, Inc.
9,877

—

6,125

 
15,124

 
944

 
(2,799
)
 
29,271

Interest expense
3,930

 
(271
)
 
1,642

 
2,718

 
(194
)
 
7,825

Depreciation and amortization
4,126

 
1,517

 
6,769

 
7,119

 
3,022

 
22,553

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
17,933

 
$
7,371

 
$
23,535

 
$
10,781

 
$
29

 
$
59,649

Three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
6,929

 
$
4,596

 
$
(25,825
)
 
$
5,860

 
$
(10,625
)
 
$
(19,065
)
Income (loss) attributable to the noncontrolling interests
—

 
(64
)
 
—

 
—

 
—

 
(64
)
Income (loss) before income taxes attributable to The Andersons, Inc.
6,929

 
4,660

 
(25,825
)
 
5,860

 
(10,625
)
 
(19,001
)
Interest expense
2,328

 
(22
)
 
1,815

 
1,936

 
(69
)
 
5,988

Depreciation and amortization
4,948

 
1,484

 
6,758

 
5,808

 
2,877

 
21,875

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
14,205

 
$
6,122

 
$
(17,252
)
 
$
13,604

 
$
(7,817
)
 
$
8,862

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment
—

 
—

 
42,000

 
—

 
—

 
42,000

Total adjusting items
—

 
—

 
42,000

 
—

 
—

 
42,000

Adjusted EBITDA
$
14,205

 
$
6,122

 
$
24,748

 
$
13,604

 
$
(7,817
)
 
$
50,862

Six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
9,847

 
$
7,566

 
$
16,215

 
$
4,913

 
$
(11,678
)
 
$
26,863

Income (loss) attributable to the noncontrolling interests
—

 
(398
)
 
—

 
—

 
—

 
(398
)
Income (loss) before income taxes attributable to The Andersons, Inc.
9,847

 
7,964

 
16,215

 
4,913

 
(11,678
)
 
27,261

Interest expense
6,889

 
(311
)
 
3,082

 
5,086

 
78

 
14,824

Depreciation and amortization
8,143

 
3,026

 
13,497

 
14,288

 
6,278

 
45,232

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
24,879

 
$
10,679

 
$
32,794

 
$
24,287

 
$
(5,322
)
 
$
87,317

Six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
1,856

 
$
6,366

 
$
(19,154
)
 
$
11,938

 
$
(25,641
)
 
$
(24,635
)
Income (loss) attributable to the noncontrolling interests
—

 
(10
)
 
—

 
—

 
—

 
(10
)
Income (loss) before income taxes attributable to The Andersons, Inc.
1,856

 
6,376

 
(19,154
)
 
11,938

 
(25,641
)
 
(24,625
)
Interest expense
5,023

 
(25
)
 
3,455

 
3,745

 
(110
)
 
12,088

Depreciation and amortization
9,402

 
2,985

 
13,623

 
10,989

 
5,879

 
42,878

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
16,281

 
$
9,336

 
$
(2,076
)
 
$
26,672

 
$
(19,872
)
 
$
30,341

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment
—

 
—

 
42,000

 
—

 
—

 
42,000

Total adjusting items
—

 
—

 
42,000

 
—

 
—

 
42,000

Adjusted EBITDA
$
16,281

 
$
9,336

 
$
39,924

 
$
26,672

 
$
(19,872
)
 
$
72,341