EX-99.1 2 ex-99pressreleaseq3201.htm EXHIBIT 99.1 Exhibit


logoa04a17.gif             NEWS RELEASE
        
The Andersons, Inc. Reports Third Quarter 2019 Results
 
MAUMEE, OHIO, November 5, 2019 - The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the third quarter ended September 30, 2019.

Third Quarter Highlights:
•
Company reports a net loss of $4.2 million or $0.13 per diluted share and an adjusted net loss of $2.3 million, or $0.07 per diluted share.
•
Trade Group reports improved results, recording a pretax loss of $2.0 million and adjusted pretax income of $0.6 million, as stronger merchandising income was offset by the impact of reduced planting and a delayed harvest in the Eastern corn belt.
•
Ethanol Group records pretax income of $0.9 million in a challenging margin environment.
•
Plant Nutrient Group records a smaller pretax loss of $7.4 million due to increased field activity in the quarter.
•
Rail Group earns $3.1 million of pretax income on stable railcar leasing income.

“The Trade Group’s adjusted results were much improved year over year on stronger merchandising, though grain originations lagged due to limited farmer selling,” said President and CEO Pat Bowe. “We continue to see the benefits of our larger and more diversified Trade Group, whose results were substantially better than they would have been without the Lansing acquisition.”

“I’m also particularly pleased that our Ethanol Group remained profitable despite difficult market conditions, outpacing many in its sector,” continued Bowe. “In August, we began production at ELEMENT, our state-of-the-art biorefinery in Kansas, from which we ultimately expect industry-leading results. We also announced in October the merger of what had been four separate ethanol plant entities, three of which were jointly owned with Marathon Petroleum Corporation, into a single entity jointly owned with Marathon just after quarter-end.”
 
 
 
 
$ in millions, except per share amounts
Q3 2019
Q3 2018
Variance
YTD 2019
YTD 2018
Variance
Pretax Income (Loss) Attributable to the Company1
$(11.4)
$(3.9)
$(7.5)
$10.0
$23.4
$(13.4)
Adjusted Pretax Income (Loss)1
$(8.9)
$(0.4)
$(8.5)
$27.3
$26.9
$0.4
     Trade (Grain) Group
$0.6
$(9.9)
$10.5
$21.6
$(2.5)
$24.1
     Ethanol Group
$0.9
$10.4
$(9.5)
$6.2
$20.7
$(14.5)
     Plant Nutrient Group
$(7.4)
$(8.0)
$0.6
$4.5
$8.2
$(3.7)
     Rail Group
$3.1
$5.7
$(2.6)
$10.6
$10.6
$—
     Other
$(6.1)
$1.4
$(7.5)
$(15.6)
$(10.3)
$(5.3)
Net Income (Loss)1
$(4.2)
$(2.1)
$(2.1)
$11.7
$17.7
$(6.0)
Adjusted Net Income (Loss)1
$(2.3)
$0.5
$(2.8)
$24.7
$20.3
$4.4
EPS
$(0.13)
$(0.07)
$(0.06)
$0.35
$0.62
$(0.27)
Adjusted EPS
$(0.07)
$0.02
$(0.09)
$0.75
$0.71
$0.04
EBITDA
$40.0
$24.0
$16.0
$154.0
$111.4
$42.6
Adjusted EBITDA
$42.5
$27.5
$15.0
$171.4
$114.8
$56.6
1 Excludes income (loss) attributable to the noncontrolling interests of ($1.6) in Q3 2019, $0.2 in Q3 2018, ($2.3) for year-to-date 2019 and ($0.2) for year-to-date 2018.





Third Quarter Segment Overview

Trade Group Records Improved Year-Over-Year Results Despite Weak Origination Activity

With the closing of the Lansing acquisition effective January 1, 2019, Trade Group results now include the consolidated operating results of both Lansing and Thompsons Limited.

The Trade Group recorded a pretax loss of $2.0 million and adjusted pretax income of $0.6 million for the quarter. The group also incurred $2.4 million of incremental depreciation and amortization expenses related to the Lansing acquisition. The former Grain Group recorded a pretax loss of $9.9 million in the third quarter of 2018.

•
Performance improved across most of the group’s operations, but especially in merchandising.
•
The newly integrated group has already identified and partially implemented changes that will result in more than $10 million in run-rate savings.
•
The group absorbed the reduction in planted acres around its Eastern Corn Belt assets by finding additional opportunities in the West.

The group’s third quarter 2019 EBITDA and adjusted EBITDA were $18.4 million and $20.9 million, respectively.

Ethanol Group Turns a Profit Despite Challenging Industry Margins

The Ethanol Group earned pretax income of $0.9 million in the third quarter compared to the $10.4 million of pretax income it earned in the same period in 2018.

•
Higher corn basis compressed margins, especially at the three eastern plants.
•
The group continues to upgrade its production technology to gain additional efficiency.
•
Third party ethanol trading again increased sales volumes and margins.

The group began producing ethanol, DDGs and corn oil from ELEMENT in August. Production continues to ramp up, with additional higher margin products being introduced in mid-2020.
  
The merger of the Albion, Clymers, Greenville and Denison plant entities into The Andersons Marathon Holdings LLC was completed on October 1. The merger will result in consolidation reporting of the group’s entire operations and a sizable one-time gain in the fourth quarter. ELEMENT remains a separate consolidated joint venture of The Andersons, Inc. with ICM, Inc.

Plant Nutrient Group Loss Narrows Year Over Year

The Plant Nutrient Group recorded a pretax loss of $7.4 million in the third quarter, a modest improvement on the pretax loss of $8.0 million in the prior year period.

•
Volumes were up, largely on primary nutrients and at the farm centers, which was reflective of the delayed planting season.
•
Margins per ton were somewhat lower due to product mix.
•
Inventory carrying costs increased year over year due to reduced spring planting.

The group’s current quarter EBITDA was $0.9 million, a $0.8 million increase over 2018 third quarter results.

The group also sold its Auburn, Michigan, farm center in early October and expects to record a small gain on the sale in the fourth quarter.





Rail Group Results Highlighted by Steady Leasing Income

The Rail Group earned third quarter pretax income of $3.1 million compared to $5.7 million in the same period of the prior year.

•
Railcar leasing income fell on continuing headwinds in the sand and ethanol markets.
•
Income from car sales was significantly lower due to fewer direct and scrap car sales and lower scrap rates.
•
Service and other pretax income fell somewhat due increased labor and benefits expenses.

The group’s third quarter 2019 EBITDA of $16.1 million was comparable to third quarter 2018 EBITDA.

Other Net Company-Level Expenses Higher Due to 2018 Nonrecurring Gains

Third quarter 2019 unallocated net company-level expenses were higher compared to adjusted third quarter 2018 results due to some nonrecurring gains recognized in 2018. Specifically, the company recorded pretax gains of $5.1 million, or $0.14 per diluted share, from several Maumee Ventures investments.

Provision for Income Taxes Includes Sizable Research and Development Tax Credits

The company’s third quarter income tax provision includes a tax benefit of approximately $3.9 million, or $0.12 per diluted share, for federal research and development income tax credits that were mostly related to the construction of the ELEMENT biorefinery.

Adjustments Related to the Lansing Acquisition

The company will finalize its purchase price allocation by year end. The Trade Group adjusted its current quarter pretax results by $2.6 million, or $0.06 per diluted share, for stock compensation expense and the company adjusted the third quarter 2018 pretax results by $3.5 million, or $0.09 per share, for expenses associated with the acquisition. As noted above, the Trade Group’s current quarter pretax results are also impacted by $2.4 million, or $0.06 per diluted share, of incremental depreciation and amortization expense.

As it did in the first two quarters, the company has recast third quarter 2018 pretax income for the former Grain Group and the Ethanol Group to conform to segment reporting changes made in conjunction with the Lansing acquisition. The changes resulted in a reclassification of $1.3 million in pretax income from the Grain Group to the Ethanol Group. The company expects to make similar adjustments for the fourth quarter of 2018.
  
Conference Call

The company will host a webcast on Wednesday, November 6, 2019, at 11 a.m. Eastern Standard Time, to discuss its performance and provide its updated outlook for 2019 and its preliminary views for 2020. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 5272038). It is recommended that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: http://edge.media-server.com/mmc/p/nczp9z2e. Complete the four fields as directed and click Submit. A replay of the call can also be accessed under the heading "Investors" on the company’s website at www.andersonsinc.com.  





Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, 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, adjusted pretax income attributable to The Andersons, adjusted net income, adjusted net income per share, 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, adjusted pretax income attributable to The Andersons, adjusted net income, adjusted net income per share, EBITDA and adjusted EBITDA do not and should not be considered as alternatives to pretax income, net income or net income per share 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    
John Kraus    
Director, Investor Relations
Phone: 419-891-6544
E-mail: investorrelations@andersonsinc.com








The Andersons, Inc.
 
 
 
 
 
 
 
Condensed Consolidated Statements of Operations
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in thousands, except per share data)
2019
 
2018
 
2019
 
2018
Sales and merchandising revenues
$
1,982,755

 
$
685,579

 
$
6,284,588

 
$
2,232,720

Cost of sales and merchandising revenues
1,873,614

 
631,715

 
5,905,055

 
2,024,677

Gross profit
109,141

 
53,864

 
379,533

 
208,043

Operating, administrative and general expenses
107,118

 
65,986

 
327,385

 
190,096

Asset impairment
—

 
—

 
3,081

 
6,272

Interest expense
13,975

 
5,176

 
45,613

 
20,000

Other income:
 
 
 
 
 
 
 
Equity in earnings (loss) of affiliates
(3,728
)
 
7,225

 
(2,367
)
 
20,601

Other income, net
2,598

 
6,434

 
6,649

 
10,949

Income (loss) before income taxes
(13,082
)
 
(3,639
)
 
7,736

 
23,225

Income tax provision (benefit)
(7,212
)
 
(1,764
)
 
(1,657
)
 
5,668

Net income (loss)
(5,870
)
 
(1,875
)
 
9,393

 
17,557

Net income (loss) attributable to the noncontrolling interests
(1,633
)
 
223

 
(2,265
)
 
(175
)
Net income (loss) attributable to The Andersons, Inc.
$
(4,237
)
 
$
(2,098
)
 
$
11,658

 
$
17,732

 
 
 
 
 
 
 
 
Per common share:
 
 
 
 
 
 
 
Basic earnings (loss) attributable to The Andersons, Inc. common shareholders
$
(0.13
)
 
$
(0.07
)
 
$
0.36

 
$
0.63

Diluted earnings (loss) attributable to The Andersons, Inc. common shareholders
$
(0.13
)
 
$
(0.07
)
 
$
0.35

 
$
0.62

















The Andersons, Inc.
 
 
 
 
 
 
 
Reconciliation to Adjusted Net Income (Loss) Attributable to The Andersons, Inc.
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in thousands, except per share data)
2019
 
2018
 
2019
 
2018
Net income (loss) attributable to The Andersons, Inc.
$
(4,237
)
 
$
(2,098
)
 
$
11,658

 
$
17,732

Items impacting other income, net of tax:
 
 
 
 
 
 
 
One time acquisition costs
(17
)
 
2,597

 
5,192

 
2,597

Transaction related stock compensation
1,933

 
—

 
5,504

 
—

Asset impairment
—

 
—

 
2,311

 
—

Total adjusting items, net of tax
1,916

 
2,597

 
13,007

 
2,597

Adjusted net income (loss) attributable to The Andersons, Inc.
$
(2,321
)
 
$
499

 
$
24,665

 
$
20,329

 
 
 
 
 
 
 
 
Diluted earnings attributable to The Andersons, Inc. common shareholders
$
(0.13
)
 
$
(0.07
)
 
$
0.35

 
$
0.62

 
 
 
 
 
 
 
 
Impact on diluted earnings per share
0.06

 
0.09

 
0.40

 
0.09

Adjusted diluted earnings (loss) per share
$
(0.07
)
 
$
0.02

 
$
0.75

 
$
0.71








The Andersons, Inc.
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
September 30, 2019
 
December 31, 2018
 
September 30, 2018
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash, cash equivalents and restricted cash
$
21,299

 
$
22,593

 
$
16,820

Accounts receivable, net
523,110

 
207,285

 
206,380

Inventories
741,086

 
690,804

 
490,331

Commodity derivative assets – current
120,510

 
51,421

 
76,861

Other current assets
82,197

 
50,703

 
58,374

Assets held for sale
573

 
392

 
29,527

Total current assets
1,488,775

 
1,023,198

 
878,293

Other assets:
 
 
 
 
 
Commodity derivative assets – noncurrent
1,943

 
480

 
766

Other assets, net
336,471

 
127,503

 
132,928

Right of use asset, net
70,773

 
—

 
—

Equity method investments
117,348

 
242,326

 
240,350

Total Other Assets
526,535

 
370,309

 
374,044

Rail Group assets leased to others, net
565,746

 
521,785

 
464,776

Property, plant and equipment, net
703,396

 
476,711

 
434,505

Total assets
$
3,284,452

 
$
2,392,003

 
$
2,151,618

 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Short-term debt
$
138,249

 
$
205,000

 
$
132,000

Trade and other payables
594,708

 
462,535

 
344,406

Customer prepayments and deferred revenue
35,274

 
32,533

 
38,242

Commodity derivative liabilities – current
67,606

 
32,647

 
91,403

Accrued expenses and other current liabilities
162,749

 
79,046

 
68,925

Current maturities of long-term debt
66,899

 
21,589

 
15,677

Total current liabilities
1,065,485

 
833,350

 
690,653

 
 
 
 
 
 
Right of use liability
47,299

 
—

 
—

Other long-term liabilities
40,927

 
32,184

 
30,615

Commodity derivative liabilities – noncurrent
1,960

 
889

 
2,548

Employee benefit plan obligations
21,311

 
22,542

 
25,356

Long-term debt, less current maturities
968,117

 
496,187

 
437,280

Deferred income taxes
128,003

 
130,087

 
122,523

Total liabilities
2,273,102

 
1,515,239

 
1,308,975

Total equity
1,011,350

 
876,764

 
842,643

Total liabilities and equity
$
3,284,452

 
$
2,392,003

 
$
2,151,618







The Andersons, Inc.
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to EBITDA and Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Trade
 
Ethanol
 
Plant Nutrient
 
Rail
 
Other
 
Total
Three months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(2,001
)
 
$
(684
)
 
$
(7,440
)
 
$
3,137

 
$
(6,094
)
 
$
(13,082
)
Income (loss) attributable to the noncontrolling interests
—

 
(1,633
)
 
—

 
—

 
—

 
(1,633
)
Income (loss) before income taxes attributable to The Andersons, Inc.
(2,001
)
 
949

 
(7,440
)
 
3,137

 
(6,094
)
 
(11,449
)
Interest expense
7,868

 
210

 
1,831

 
4,211

 
(145
)
 
13,975

Depreciation and amortization
12,487

 
6,907

 
6,485

 
8,713

 
2,849

 
37,441

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
18,354

 
$
8,066

 
$
876

 
$
16,061

 
$
(3,390
)
 
$
39,967

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
—

One time acquisition costs
(23
)
 
—

 
—

 
—

 
—

 
(23
)
Transaction related stock compensation
2,577

 
—

 
—

 
—

 
—

 
2,577

Asset impairment
—

 
—

 
—

 
—

 
—

 
—

Total adjusting items
2,554

 
—

 
—

 
—

 
—

 
2,554

Adjusted EBITDA
$
20,908

 
$
8,066

 
$
876

 
$
16,061

 
$
(3,390
)
 
$
42,521

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(9,914
)
 
$
10,576

 
$
(7,976
)
 
$
5,732

 
$
(2,057
)
 
$
(3,639
)
Income (loss) attributable to the noncontrolling interests
—

 
223

 
—

 
—

 
—

 
223

Income (loss) before income taxes attributable to The Andersons, Inc.
(9,914
)
 
10,353

 
(7,976
)
 
5,732

 
(2,057
)
 
(3,862
)
Interest expense
2,126

 
(784
)
 
1,315

 
2,602

 
(83
)
 
5,176

Depreciation and amortization
4,118

 
1,533

 
6,761

 
7,385

 
2,931

 
22,728

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
(3,670
)
 
$
11,102

 
$
100

 
$
15,719

 
$
791

 
$
24,042

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
One time acquisition costs
—

 
—

 
—

 
—

 
3,463

 
3,463

Transaction related stock compensation
—

 
—

 
—

 
—

 
—

 
—

Asset impairment
—

 
—

 
—

 
—

 
—

 
—

Total adjusting items
—

 
—

 
—

 
—

 
3,463

 
3,463

Adjusted EBITDA
$
(3,670
)
 
$
11,102

 
$
100

 
$
15,719

 
$
4,254

 
$
27,505






Nine months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
4,268

 
$
3,904

 
$
4,534

 
$
10,629

 
$
(15,599
)
 
$
7,736

Income (loss) attributable to the noncontrolling interests
—

 
(2,265
)
 
—

 
—

 
—

 
(2,265
)
Income (loss) before income taxes attributable to The Andersons, Inc.
4,268

 
6,169

 
4,534

 
10,629

 
(15,599
)
 
10,001

Interest expense
29,027

 
(1,520
)
 
6,478

 
12,071

 
(443
)
 
45,613

Depreciation and amortization
37,523

 
7,094

 
19,778

 
25,377

 
8,624

 
98,396

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
70,818

 
$
11,743

 
$
30,790

 
$
48,077

 
$
(7,418
)
 
$
154,010

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
One time acquisition costs
6,922

 
—

 
—

 
—

 
—

 
6,922

Transaction related stock compensation
7,339

 
—

 
—

 
—

 
—

 
7,339

Asset impairment
3,081

 
—

 
—

 
—

 
—

 
3,081

Total adjusting items
17,342

 
—

 
—

 
—

 
—

 
17,342

Adjusted EBITDA
$
88,160

 
$
11,743

 
$
30,790

 
$
48,077

 
$
(7,418
)
 
$
171,352

 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(2,453
)
 
$
20,528

 
$
8,239

 
$
10,645

 
$
(13,734
)
 
$
23,225

Income (loss) attributable to the noncontrolling interests
—

 
(175
)
 
—

 
—

 
—

 
(175
)
Income (loss) before income taxes attributable to The Andersons, Inc.
(2,453
)
 
20,703

 
8,239

 
10,645

 
(13,734
)
 
23,400

Interest expense
9,018

 
(1,098
)
 
4,397

 
7,688

 
(5
)
 
20,000

Depreciation and amortization
12,261

 
4,559

 
20,257

 
21,673

 
9,210

 
67,960

Earnings before interest, taxes, depreciation and amortization (EBITDA)
$
18,826

 
$
24,164

 
$
32,893

 
$
40,006

 
$
(4,529
)
 
$
111,360

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
One time acquisition costs
—

 
—

 
—

 
—

 
3,463

 
3,463

Transaction related stock compensation
—

 
—

 
—

 
—

 
—

 
—

Asset impairment
—

 
—

 
—

 
—

 
—

 
—

Total adjusting items
—

 
—

 
—

 
—

 
3,463

 
3,463

Adjusted EBITDA
$
18,826

 
$
24,164

 
$
32,893

 
$
40,006

 
$
(1,066
)
 
$
114,823








 
The Andersons, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
Segment Data
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Trade
 
Ethanol
 
Plant Nutrient
 
Rail
 
Other
 
Total
 
Three months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
1,580,157

 
$
254,055

 
$
109,446

 
$
39,097

 
$
—

 
$
1,982,755

 
Gross profit
74,752

 
6,710

 
15,851

 
11,828

 
—

 
109,141

 
Equity in earnings (losses) of affiliates
(98
)
 
(3,630
)
 
—

 
—

 
—

 
(3,728
)
 
Other income (expense), net
876

 
417

 
510

 
854

 
(59
)
 
2,598

 
Income (loss) before income taxes
(2,001
)
 
(684
)
 
(7,440
)
 
3,137

 
(6,094
)
 
(13,082
)
 
Income (loss) attributable to the noncontrolling interests
—

 
(1,633
)
 
—

 
—

 
—

 
(1,633
)
 
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
(2,001
)
 
$
949

 
$
(7,440
)
 
$
3,137

 
$
(6,094
)
 
$
(11,449
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
342,610

 
$
195,669

 
$
104,188

 
$
43,112

 
$
—

 
$
685,579

 
Gross profit
15,791

 
7,781

 
15,542

 
14,750

 
—

 
53,864

 
Equity in earnings of affiliates
2,412

 
4,813

 
—

 
—

 
—

 
7,225

 
Other income, net
92

 
553

 
626

 
220

 
4,943

 
6,434

 
Income (loss) before income taxes
(9,914
)
 
10,576

 
(7,976
)
 
5,732

 
(2,057
)
 
(3,639
)
 
Income (loss) attributable to the noncontrolling interests
—

 
223

 
—

 
—

 
—

 
223

 
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
(9,914
)
 
$
10,353

 
$
(7,976
)
 
$
5,732

 
$
(2,057
)
 
$
(3,862
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
4,944,483

 
$
708,029

 
$
508,548

 
$
123,528

 
$
—

 
$
6,284,588

 
Gross profit
246,587

 
14,830

 
75,583

 
42,533

 
—

 
379,533

 
Equity in earnings (losses) of affiliates
(1,843
)
 
(524
)
 
—

 
—

 
—

 
(2,367
)
 
Other income, net
1,706

 
695

 
1,647

 
1,392

 
1,209

 
6,649

 
Income (loss) before income taxes
4,268

 
3,904

 
4,534

 
10,629

 
(15,599
)
 
7,736

 
Income (loss) attributable to the noncontrolling interests
—

 
(2,265
)
 
—

 
—

 
—

 
(2,265
)
 
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
4,268

 
$
6,169

 
$
4,534

 
$
10,629

 
$
(15,599
)
 
$
10,001

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
983,737

 
$
571,090

 
$
542,911

 
$
134,982

 
$
—

 
$
2,232,720

 
Gross profit
74,903

 
17,334

 
74,946

 
40,860

 
—

 
208,043

 
Equity in earnings of affiliates
9,909

 
10,692

 
—

 
—

 
—

 
20,601

 
Other income, net
615

 
1,741

 
1,900

 
911

 
5,782

 
10,949

 
Income (loss) before income taxes
(2,453
)
 
20,528

 
8,239

 
10,645

 
(13,734
)
 
23,225

 
Income (loss) attributable to the noncontrolling interest
—

 
(175
)
 
—

 
—

 
—

 
(175
)
 
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
(2,453
)
 
$
20,703

 
$
8,239

 
$
10,645

 
$
(13,734
)
 
$
23,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Income (loss) before income taxes attributable to The Andersons, Inc. for each Group 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 (loss).