• | Company reports net income of $6.6 million, or $0.19 per diluted share, and adjusted net income of $18.4 million, or $0.55 per diluted share. Adjusted EBITDA rose 21 percent year over year to $76.1 million. |
• | Trade Group reports a pretax loss of $19.0 million, but adjusted pretax income of $18.5 million, as solid merchandising income was offset by the impacts of an extended, wet harvest in the Eastern Corn Belt. |
• | Ethanol Group records pretax income of $41.2 million and adjusted pretax income attributable to the company of $7.2 million, on continued solid merchandising income and appreciation on hedged positions. |
• | Plant Nutrient Group records pretax income of $4.6 million and adjusted pretax income of $3.9 million on lower operating and interest expenses. |
• | Rail Group earns $4.5 million of pretax income on increased income from car sales. |
$ in millions, except per share amounts | ||||||||||||||||||
Q4 2019 | Q4 2018 | Variance | YTD 2019 | YTD 2018 | Variance | |||||||||||||
Pretax Income1 | $ | 21.4 | $ | 30.0 | $ | (8.6 | ) | $ | 31.4 | $ | 53.4 | $ | (22.0 | ) | ||||
Adjusted Pretax Income1 | 23.7 | 33.1 | (9.4 | ) | 51.0 | 59.9 | (8.9 | ) | ||||||||||
Trade (Grain) Group | 18.5 | 24.2 | (5.7 | ) | 40.1 | 21.7 | 18.4 | |||||||||||
Ethanol Group1 | 7.2 | 6.4 | 0.8 | 13.4 | 27.1 | (13.7 | ) | |||||||||||
Plant Nutrient Group | 3.9 | 3.8 | 0.1 | 8.4 | 12.0 | (3.6 | ) | |||||||||||
Rail Group | 4.5 | 6.7 | (2.2 | ) | 15.1 | 17.4 | (2.3 | ) | ||||||||||
Other | (10.4 | ) | (8.0 | ) | (2.4 | ) | (26.0 | ) | (18.3 | ) | (7.7 | ) | ||||||
Net Income1 | 6.6 | 23.8 | (17.2 | ) | 18.3 | 41.5 | (23.2 | ) | ||||||||||
Adjusted Net Income1 | 18.4 | 26.0 | (7.6 | ) | 43.0 | 46.4 | (3.4 | ) | ||||||||||
EPS | 0.19 | 0.84 | (0.70 | ) | 0.55 | 1.46 | (0.90 | ) | ||||||||||
Adjusted EPS | 0.55 | 0.92 | (0.40 | ) | 1.30 | 1.63 | (0.30 | ) | ||||||||||
EBITDA | 82.2 | 60.1 | 22.1 | 234.0 | 171.3 | 62.7 | ||||||||||||
Adjusted EBITDA Attributable to the Company | $ | 76.1 | $ | 63.0 | $ | 13.1 | $ | 246.3 | $ | 177.2 | $ | 69.1 |
• | Portfolio breadth gained from the Lansing acquisition again proved its critical value in the face of significant Eastern Corn Belt planting and harvest challenges. |
• | Strong merchandising results and improved income from the newer western assets helped offset extremely tough conditions in the East. |
• | Robust income from propane distribution was offset by lower sand transloading income, as the frac sand industry experienced a fundamental shift to in-basin sand. |
• | Asset impairment charges of $40.4 million, including $34.8 million on certain frac sand transloading and processing assets acquired as part of the Lansing acquisition. |
• | A gain on the sale of Ontario agronomy assets of $5.7 million. |
• | The group recorded significant appreciation on its hedged positions and increased sales volumes and margins by third-party production. |
• | Crush margins were favorable early in the quarter but degraded quickly in November and December; comparatively higher corn basis continued to compress margins. |
• | The group brought more new technologies and products online at ELEMENT, including new-to-the-market cellulosic ethanol technology and new feed products. |
• | Volumes were up in primary nutrients, but down in both specialty nutrients and lawn fertilizer. |
• | Primary nutrient margin per ton was lower due to product mix. |
• | Working capital carrying costs decreased year over year due to heightened management focus. |
• | Railcar leasing income fell on continuing headwinds in the sand and ethanol markets. |
• | Income from car sales was $2.4 million for the quarter compared to $1.2 million in the fourth quarter of 2018. |
• | Service and other pretax income fell by $3.1 million to $1.0 million; however, 2018 results included income of $2.4 million on the sale of several barges. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Sales and merchandising revenues | $ | 1,885,603 | $ | 812,662 | $ | 8,170,191 | $ | 3,045,382 | |||||||
Cost of sales and merchandising revenues | 1,747,244 | 718,700 | 7,652,299 | 2,743,377 | |||||||||||
Gross profit | 138,359 | 93,962 | 517,892 | 302,005 | |||||||||||
Operating, administrative and general expenses | 109,457 | 67,776 | 436,842 | 257,872 | |||||||||||
Asset impairment | 38,131 | — | 41,212 | 6,272 | |||||||||||
Interest expense | 14,078 | 7,848 | 59,691 | 27,848 | |||||||||||
Other income: | |||||||||||||||
Equity in earnings (losses) of affiliates | (4,992 | ) | 6,540 | (7,359 | ) | 27,141 | |||||||||
Net gain from remeasurement of equity method investments | 36,287 | — | 35,214 | — | |||||||||||
Other income, net | 12,387 | 5,053 | 20,109 | 16,002 | |||||||||||
Income before income taxes | 20,375 | 29,931 | 28,111 | 53,156 | |||||||||||
Income tax provision | 14,708 | 6,263 | 13,051 | 11,931 | |||||||||||
Net income | 5,667 | 23,668 | 15,060 | 41,225 | |||||||||||
Net income (loss) attributable to the noncontrolling interests | (982 | ) | (85 | ) | (3,247 | ) | (259 | ) | |||||||
Net income attributable to The Andersons, Inc. | $ | 6,649 | $ | 23,753 | $ | 18,307 | $ | 41,484 | |||||||
Per common share: | |||||||||||||||
Basic earnings attributable to The Andersons, Inc. common shareholders | $ | 0.20 | $ | 0.84 | $ | 0.56 | $ | 1.47 | |||||||
Diluted earnings attributable to The Andersons, Inc. common shareholders | $ | 0.19 | $ | 0.84 | $ | 0.55 | $ | 1.46 |
(in thousands, except per share data) | Three months ended December 31, | Twelve months ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to The Andersons, Inc. | $ | 6,649 | $ | 23,752 | $ | 18,307 | $ | 41,484 | |||||||
Items adjusted for certain gains and charges: | |||||||||||||||
Acquisition costs | 2,158 | 3,051 | 8,007 | 6,514 | |||||||||||
Transaction related stock compensation | 1,998 | — | 9,337 | — | |||||||||||
Asset impairment | 43,097 | — | 46,178 | — | |||||||||||
(Gain) loss from remeasurement of equity method investments | (36,287 | ) | — | (35,214 | ) | — | |||||||||
(Gain) loss on sales of assets | (8,646 | ) | — | (8,646 | ) | — | |||||||||
Income tax impact of adjustments | 9,386 | (762 | ) | 5,051 | (1,628 | ) | |||||||||
Total adjustments | 11,706 | 2,289 | 24,713 | 4,886 | |||||||||||
Adjusted net income attributable to The Andersons, Inc. | $ | 18,355 | $ | 26,041 | $ | 43,020 | $ | 46,370 | |||||||
Diluted earnings attributable to The Andersons, Inc. common shareholders | $ | 0.19 | $ | 0.84 | $ | 0.55 | $ | 1.46 | |||||||
Impact on diluted earnings per share | 0.36 | 0.08 | 0.75 | 0.17 | |||||||||||
Adjusted diluted earnings per share | $ | 0.55 | $ | 0.92 | $ | 1.30 | $ | 1.63 |
(in thousands) | 2019 | 2018 | |||||
Assets | |||||||
Current assets: | |||||||
Cash, cash equivalents and restricted cash | $ | 54,895 | $ | 22,593 | |||
Accounts receivable, net | 536,367 | 207,285 | |||||
Inventories | 1,170,536 | 690,804 | |||||
Commodity derivative assets - current | 107,863 | 51,421 | |||||
Other current assets | 92,280 | 51,095 | |||||
Total current assets | 1,961,941 | 1,023,198 | |||||
Other assets: | |||||||
Commodity derivative assets – noncurrent | 949 | 480 | |||||
Goodwill | 137,781 | 6,024 | |||||
Other intangible assets, net | 175,312 | 99,138 | |||||
Right of use assets, net | 76,401 | — | |||||
Equity method investments | 23,857 | 242,326 | |||||
Other assets, net | 20,803 | 22,341 | |||||
Total Other Assets | 435,103 | 370,309 | |||||
Rail Group assets leased to others, net | 584,298 | 521,785 | |||||
Property, plant and equipment, net | 938,418 | 476,711 | |||||
Total assets | $ | 3,919,760 | $ | 2,392,003 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 147,031 | $ | 205,000 | |||
Trade and other payables | 873,081 | 462,535 | |||||
Customer prepayments and deferred revenue | 133,585 | 32,533 | |||||
Commodity derivative liabilities – current | 46,942 | 32,647 | |||||
Accrued expenses and other current liabilities | 190,637 | 79,046 | |||||
Current maturities of long-term debt | 62,899 | 21,589 | |||||
Total current liabilities | 1,454,175 | 833,350 | |||||
Long-term lease liabilities | 51,091 | — | |||||
Commodity derivative liabilities – noncurrent | 505 | 889 | |||||
Employee benefit plan obligations | 25,359 | 22,542 | |||||
Long-term debt, less current maturities | 1,016,248 | 496,187 | |||||
Deferred income taxes | 149,389 | 130,087 | |||||
Other long-term liabilities | 22,176 | 32,184 | |||||
Total liabilities | 2,718,943 | 1,515,239 | |||||
Total equity | 1,200,817 | 876,764 | |||||
Total liabilities and equity | $ | 3,919,760 | $ | 2,392,003 |
(in thousands) | Trade | Ethanol | Plant Nutrient | Rail | Other | Total | |||||||||||||||||
Three months ended December 31, 2019 | |||||||||||||||||||||||
Revenues from external customers | $ | 1,443,261 | $ | 260,750 | $ | 138,182 | $ | 43,410 | $ | — | $ | 1,885,603 | |||||||||||
Gross profit | 88,638 | 11,608 | 23,521 | 14,592 | — | 138,359 | |||||||||||||||||
Equity in earnings of affiliates | (4,992 | ) | — | — | — | — | (4,992 | ) | |||||||||||||||
Other income, net | 8,364 | 36,504 | 3,256 | 191 | 359 | 48,674 | |||||||||||||||||
Income (loss) before income taxes | (19,048 | ) | 41,208 | 4,625 | 4,461 | (10,871 | ) | 20,375 | |||||||||||||||
Income (loss) attributable to the noncontrolling interests | — | (982 | ) | — | — | — | (982 | ) | |||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | (19,048 | ) | 42,190 | 4,625 | 4,461 | (10,871 | ) | 21,357 | |||||||||||||||
Adjustments to income (loss) before income taxes (b) | 37,549 | (34,962 | ) | (769 | ) | — | 502 | 2,320 | |||||||||||||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 18,501 | $ | 7,228 | $ | 3,856 | $ | 4,461 | $ | (10,369 | ) | $ | 23,677 | ||||||||||
Three months ended December 31, 2018 | |||||||||||||||||||||||
Revenues from external customers | $ | 449,923 | $ | 175,919 | $ | 147,625 | $ | 39,195 | $ | — | $ | 812,662 | |||||||||||
Gross profit | 51,636 | 4,386 | 23,955 | 13,985 | — | 93,962 | |||||||||||||||||
Equity in earnings of affiliates | 3,023 | 3,517 | — | — | — | 6,540 | |||||||||||||||||
Other income, net | 228 | 1,025 | 595 | 2,605 | 600 | 5,053 | |||||||||||||||||
Income (loss) before income taxes | 24,168 | 6,289 | 3,791 | 6,734 | (11,051 | ) | 29,931 | ||||||||||||||||
Income (loss) attributable to the noncontrolling interests | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | 24,168 | 6,374 | 3,791 | 6,734 | (11,051 | ) | 30,016 | ||||||||||||||||
Adjustments to income (loss) before income taxes (b) | — | — | — | — | 3,051 | 3,051 | |||||||||||||||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 24,168 | $ | 6,374 | $ | 3,791 | $ | 6,734 | $ | (8,000 | ) | $ | 33,067 |
(in thousands) | Trade | Ethanol | Plant Nutrient | Rail | Other | Total | |||||||||||||||||
Twelve months ended December 31, 2019 | |||||||||||||||||||||||
Revenues from external customers | $ | 6,387,744 | $ | 968,779 | $ | 646,730 | $ | 166,938 | $ | — | $ | 8,170,191 | |||||||||||
Gross profit | 335,225 | 26,438 | 99,104 | 57,125 | — | 517,892 | |||||||||||||||||
Equity in earnings of affiliates | (6,835 | ) | (524 | ) | — | — | — | (7,359 | ) | ||||||||||||||
Other income, net | 10,070 | 37,199 | 4,903 | 1,583 | 1,568 | 55,323 | |||||||||||||||||
Income (loss) before income taxes | (14,780 | ) | 45,112 | 9,159 | 15,090 | (26,470 | ) | 28,111 | |||||||||||||||
Income (loss) attributable to the noncontrolling interests | — | (3,247 | ) | — | — | — | (3,247 | ) | |||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | (14,780 | ) | 48,359 | 9,159 | 15,090 | (26,470 | ) | 31,358 | |||||||||||||||
Adjustments to income (loss) before income taxes (b) | 54,891 | (34,962 | ) | (769 | ) | — | 502 | 19,662 | |||||||||||||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 40,111 | $ | 13,397 | $ | 8,390 | $ | 15,090 | $ | (25,968 | ) | $ | 51,020 | ||||||||||
Twelve months ended December 31, 2018 | |||||||||||||||||||||||
Revenues from external customers | $ | 1,433,660 | $ | 747,009 | $ | 690,536 | $ | 174,177 | $ | — | $ | 3,045,382 | |||||||||||
Gross profit | 126,539 | 21,720 | 98,901 | 54,845 | — | 302,005 | |||||||||||||||||
Equity in earnings of affiliates | 12,932 | 14,209 | — | — | — | 27,141 | |||||||||||||||||
Other income, net | 843 | 2,766 | 2,495 | 3,516 | 6,382 | 16,002 | |||||||||||||||||
Income (loss) before income taxes | 21,715 | 26,817 | 12,030 | 17,379 | (24,785 | ) | 53,156 | ||||||||||||||||
Income (loss) attributable to the noncontrolling interests | — | (259 | ) | — | — | — | (259 | ) | |||||||||||||||
Income (loss) before income taxes attributable to The Andersons, Inc. (a) | 21,715 | 27,076 | 12,030 | 17,379 | (24,785 | ) | 53,415 | ||||||||||||||||
Adjustments to income (loss) before income taxes (b) | — | — | — | — | 6,514 | 6,514 | |||||||||||||||||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc. (a) | $ | 21,715 | $ | 27,076 | $ | 12,030 | $ | 17,379 | $ | (18,271 | ) | $ | 59,929 |
(in thousands) | Trade | Ethanol | Plant Nutrient | Rail | Other | Total | |||||||||||||||||
Three months ended December 31, 2019 | |||||||||||||||||||||||
Net income (loss) | $ | (19,048 | ) | $ | 41,208 | $ | 4,625 | $ | 4,461 | $ | (25,579 | ) | $ | 5,667 | |||||||||
Interest expense | 6,175 | 2,104 | 1,476 | 4,415 | (92 | ) | 14,078 | ||||||||||||||||
Tax provision | — | — | — | — | 14,708 | 14,708 | |||||||||||||||||
Depreciation and amortization | 13,450 | 16,633 | 6,207 | 8,745 | 2,735 | 47,770 | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 577 | 59,945 | 12,308 | 17,621 | (8,228 | ) | 82,223 | ||||||||||||||||
EBITDA attributable to non-controlling interests | — | (8,405 | ) | — | — | — | (8,405 | ) | |||||||||||||||
EBITDA attributable to The Andersons, Inc. | 577 | 51,540 | 12,308 | 17,621 | (8,228 | ) | 73,818 | ||||||||||||||||
Adjusting items impacting EBITDA: | |||||||||||||||||||||||
Acquisition costs | 833 | 1,325 | — | — | — | 2,158 | |||||||||||||||||
Transaction related stock compensation | 1,998 | — | — | — | — | 1,998 | |||||||||||||||||
Asset impairment including equity method investments | 40,420 | — | 2,175 | — | 502 | 43,097 | |||||||||||||||||
(Gain) loss on pre-existing equity method investment | — | (36,287 | ) | — | — | — | (36,287 | ) | |||||||||||||||
(Gain) loss on sales of assets | (5,702 | ) | — | (2,944 | ) | — | — | (8,646 | ) | ||||||||||||||
Total adjusting items | 37,549 | (34,962 | ) | (769 | ) | — | 502 | 2,320 | |||||||||||||||
Adjusted EBITDA attributable to The Andersons, Inc. | $ | 38,126 | $ | 16,578 | $ | 11,539 | $ | 17,621 | $ | (7,726 | ) | $ | 76,138 | ||||||||||
Three months ended December 31, 2018 | |||||||||||||||||||||||
Net income (loss) | $ | 24,168 | $ | 6,289 | $ | 3,791 | $ | 6,734 | $ | (17,314 | ) | $ | 23,668 | ||||||||||
Interest expense | 2,827 | (792 | ) | 2,102 | 3,689 | 22 | 7,848 | ||||||||||||||||
Tax provision | — | — | — | — | 6,263 | 6,263 | |||||||||||||||||
Depreciation and amortization | 3,801 | 1,577 | 6,614 | 7,491 | 2,854 | 22,337 | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 30,796 | 7,074 | 12,507 | 17,914 | (8,175 | ) | 60,116 | ||||||||||||||||
EBITDA attributable to non-controlling interests | — | (145 | ) | — | — | — | (145 | ) | |||||||||||||||
EBITDA attributable to The Andersons, Inc. | 30,796 | 6,929 | 12,507 | 17,914 | (8,175 | ) | 59,971 | ||||||||||||||||
Adjusting items impacting EBITDA: | |||||||||||||||||||||||
Acquisition costs | — | — | — | — | 3,051 | 3,051 | |||||||||||||||||
Total adjusting items | — | — | — | — | 3,051 | 3,051 | |||||||||||||||||
Adjusted EBITDA attributable to The Andersons, Inc. | $ | 30,796 | $ | 6,929 | $ | 12,507 | $ | 17,914 | $ | (5,124 | ) | $ | 63,022 |
(in thousands) | Trade | Ethanol | Plant Nutrient | Rail | Other | Total | |||||||||||||||||
Twelve months ended December 31, 2019 | |||||||||||||||||||||||
Net income (loss) | $ | (14,780 | ) | $ | 45,112 | $ | 9,159 | $ | 15,090 | $ | (39,521 | ) | $ | 15,060 | |||||||||
Interest expense | 35,202 | 584 | 7,954 | 16,486 | (535 | ) | 59,691 | ||||||||||||||||
Tax provision | — | — | — | — | 13,051 | 13,051 | |||||||||||||||||
Depreciation and amortization | 50,973 | 23,727 | 25,985 | 34,122 | 11,359 | 146,166 | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 71,395 | 69,423 | 43,098 | 65,698 | (15,646 | ) | 233,968 | ||||||||||||||||
EBITDA attributable to non-controlling interests | — | (7,360 | ) | — | — | — | (7,360 | ) | |||||||||||||||
EBITDA attributable to The Andersons, Inc. | 71,395 | 62,063 | 43,098 | 65,698 | (15,646 | ) | 226,608 | ||||||||||||||||
Adjusting items impacting EBITDA: | |||||||||||||||||||||||
Acquisition costs | 6,682 | 1,325 | — | — | — | 8,007 | |||||||||||||||||
Transaction related stock compensation | 9,337 | — | — | — | — | 9,337 | |||||||||||||||||
Asset impairment including equity method investments | 43,501 | — | 2,175 | — | 502 | 46,178 | |||||||||||||||||
(Gain) loss on pre-existing equity method investment | 1,073 | (36,287 | ) | — | — | — | (35,214 | ) | |||||||||||||||
(Gain) loss on sales of assets | (5,702 | ) | — | (2,944 | ) | — | — | (8,646 | ) | ||||||||||||||
Total adjusting items | 54,891 | (34,962 | ) | (769 | ) | — | 502 | 19,662 | |||||||||||||||
Adjusted EBITDA attributable to The Andersons, Inc. | $ | 126,286 | $ | 27,101 | $ | 42,329 | $ | 65,698 | $ | (15,144 | ) | $ | 246,270 | ||||||||||
Twelve months ended December 31, 2018 | |||||||||||||||||||||||
Net income (loss) | $ | 21,715 | $ | 26,817 | $ | 12,030 | $ | 17,379 | $ | (36,716 | ) | $ | 41,225 | ||||||||||
Interest expense | 11,845 | (1,890 | ) | 6,499 | 11,377 | 17 | 27,848 | ||||||||||||||||
Tax provision | — | — | — | — | 11,931 | 11,931 | |||||||||||||||||
Depreciation and amortization | 16,062 | 6,136 | 26,871 | 29,164 | 12,064 | 90,297 | |||||||||||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) | 49,622 | 31,063 | 45,400 | 57,920 | (12,704 | ) | 171,301 | ||||||||||||||||
EBITDA attributable to non-controlling interests | — | (657 | ) | — | — | — | (657 | ) | |||||||||||||||
EBITDA attributable to The Andersons, Inc. | 49,622 | 30,406 | 45,400 | 57,920 | (12,704 | ) | 170,644 | ||||||||||||||||
Adjusting items impacting EBITDA: | — | ||||||||||||||||||||||
Acquisition costs | — | — | — | — | 6,514 | 6,514 | |||||||||||||||||
Total adjusting items | — | — | — | — | 6,514 | 6,514 | |||||||||||||||||
Adjusted EBITDA attributable to The Andersons, Inc. | $ | 49,622 | $ | 30,406 | $ | 45,400 | $ | 57,920 | $ | (6,190 | ) | $ | 177,158 |