Document

"I'm pleased with our third quarter, particularly the record results of our Trade Group business. We benefited from outstanding execution by our team, strong demand, and relatively low grain stocks - including growth in new markets, such as renewable diesel and supply chain extensions with our new Swiss trading office. We continue to identify opportunities in these volatile markets and remain focused on an anticipated large 2021 harvest. Harvest in the corn belt is progressing and we are pleased that storage income has returned to the wheat and corn markets," said President and CEO Pat Bowe.

"Ethanol margins have strengthened through the fall maintenance season and U.S. stocks are low at this time. We are focused on risk management and effective hedging and continue to see strong returns from co-products, particularly distillers' corn oil," added Bowe. "We anticipate strong fourth quarter margins in Ethanol. Plant Nutrient followed up a great first half with a third quarter loss, which was in line with our expectations for this seasonal business. Fertilizer prices and farm income both remain high. We continue to receive good support from our suppliers in this time of tight stocks. Our teams are executing well and remain focused on customer needs and operational excellence."

"Lastly, I want to comment on the sale of our Rail leasing business that was announced on August 16," stated Bowe. "This strategic sale allowed us to strengthen our balance sheet and focus on investing in our core agriculture businesses. We completed the acquisition of Capstone Commodities on October 1 which helps to expand our supply chain presence to southwestern U.S. dairy customers. We continue to evaluate organic growth projects in grain, renewable fuels, and fertilizer as well as potential acquisitions and investments, with the goal of growing our ag supply chain and renewable fuels businesses while reducing our carbon footprint."


$ in millions, except per share amounts
	Q3 2021		Q3 2020		Variance		YTD 2021		YTD 2020		Variance
Pretax Income (Loss) Attributable to the Company1,2	$	17.9	$	(5.6)	$	23.5	$	85.0	$	(30.1)	$	115.1
Adjusted Pretax Income (Loss) Attributable to the Company1,2	6.3		(1.5)		7.8		74.1		(21.3)		95.4
Trade1	27.6		6.9		20.7		56.0		(0.4)		56.4
Ethanol	(3.6)		1.1		(4.7)		22.8		(22.0)		44.8
Plant Nutrient	(5.8)		(5.4)		(0.4)		26.7		12.8		13.9
Other1	(11.8)		(4.1)		(7.7)		(31.4)		(11.8)		(19.6)
Net Income (Loss) Attributable to the Company2	13.9		(1.5)		15.4		66.9		(11.5)		78.4
Adjusted Net Income (Loss) Attributable to the Company1,2	5.2		(2.9)		8.1		58.8		(19.6)		78.4
Diluted Earnings Per Share (EPS)2	0.41		(0.04)		0.45		1.99		(0.35)		2.34
Adjusted Diluted EPS1,2	0.15		(0.08)		0.23		1.75		(0.60)		2.35
EBITDA1,2	67.9		42.9		25.0		233.4		89.7		143.7
Adjusted EBITDA1,2	$	56.3	$	47.0	$	9.3	$	222.5	$	98.6	$	123.9

"We generated cash flow from operations before working capital changes of $55.6 million for the third quarter and $237.7 million for the year to date," said Executive Vice President and CFO Brian Valentine. "This strong cash flow, combined with proceeds from the sale of assets, has enabled us to reduce long-term debt by over $300 million since the start of the year. We remain disciplined with capital allocation while ensuring that we are adequately maintaining our physical assets. Short-term borrowings at the end of the quarter have been significantly reduced to $281.2 million from the $915.2 million balance at the close of our first quarter, which is our typical seasonal high. We are now below our key target of 2.5x long-term debt to adjusted EBITDA and have capacity available for growth in our core agricultural businesses."

Readily marketable inventories of $700 million at September 30 are a significant increase from the prior year and reflects the overall inflation in commodity prices. The company invested $19.8 million on capital projects for its continuing operations in the quarter. The company expects to invest approximately $85 million in 2021 in its continuing operations. In addition, the company received proceeds of $543 million from the sale of its Rail leasing business and other assets. A portion of these proceeds were used to retire long-term debt and reduce outstanding short-term borrowings.

The quarter-over-quarter decline was driven by higher corn basis at all five ethanol plants eroding any board crush margins. Partially offsetting the ethanol margin decline was increased high-protein feed values and continuing corn oil strength. Profitable third-party trading of ethanol, feed ingredients, and vegetable oil exceeded last year's third quarter. Stocks of ethanol are at very low levels leading to ethanol board crush margins that are positive into the first quarter and despite a projected seasonal slowdown in gasoline demand. Industry production increases are expected in response.

The Plant Nutrient segment posted a pretax loss of $5.8 million, compared to the pretax loss of $5.4 million last year. Gross profit for the group was up $1.4 million from good demand and strong margins in our agricultural product lines resulting from continued strength in both fertilizer prices and farmer income. High raw material costs and plant labor challenges lowered results for our turf and specialty products. Plant Nutrient’s EBITDA was $1.8 million compared to 2020 third quarter EBITDA of $2.2 million.

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.

This release contains non-GAAP financial measures. The company believes that adjusted pretax income (loss) from continuing operations, pretax income (loss) attributable to the company from continuing operations, adjusted pretax income (loss) attributable to the company from continuing operations, adjusted net income attributable to the company from continuing operations, adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; 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 from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations 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.


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2021		2020		2021		2020
Sales and merchandising revenues	$	2,998,824	$	1,885,586	$	8,829,348	$	5,556,317
Cost of sales and merchandising revenues	2,876,989		1,792,349		8,430,665		5,314,101
Gross profit	121,835		93,237		398,683		242,216
Operating, administrative and general expenses	110,275		92,610		312,833		277,363
Interest expense, net	8,799		6,853		28,848		25,951
Other income, net:
Equity in earnings (losses) of affiliates, net	(250)		20		2,389		228
Other income, net	13,806		3,846		24,743		10,154
Income (loss) before income taxes from continuing operations	16,317		(2,360)		84,134		(50,716)
Income tax provision (benefit) from continuing operations	4,027		(4,148)		18,065		(18,628)
Net income (loss) from continuing operations	12,290		1,788		66,069		(32,088)
Income (loss) from discontinued operations, net of income taxes	1,846		427		7,453		3,224
Net income (loss)	14,136		2,215		73,522		(28,864)
Net income (loss) attributable to noncontrolling interests	(1,602)		3,273		(822)		(20,583)
Net income (loss) attributable to The Andersons, Inc.	$	15,738	$	(1,058)	$	74,344	$	(8,281)

Earnings (loss) per share attributable to The Andersons, Inc. common shareholders:
Basic earnings (loss):
Continuing operations	$	0.42	$	(0.04)	$	2.01	$	(0.35)
Discontinued operations	0.06		0.01		0.22		0.10
	$	0.48	$	(0.03)	$	2.23	$	(0.25)
Diluted earnings (loss):
Continuing operations	$	0.41	$	(0.04)	$	1.99	$	(0.35)
Discontinued operations	0.05		0.01		0.22		0.10
	$	0.46	$	(0.03)	$	2.21	$	(0.25)


(in thousands)	September 30, 2021		December 31, 2020		September 30, 2020
Assets
Current assets:
Cash and cash equivalents	$	216,874	$	29,123	$	13,693
Accounts receivable, net	735,349		641,326		509,964
Inventories	1,017,804		1,293,066		747,588
Commodity derivative assets – current	409,647		320,706		140,065
Current assets held-for-sale	26,561		32,659		45,132
Other current assets	92,159		99,529		83,807
Total current assets	2,498,394		2,416,409		1,540,249
Other assets:
Goodwill	129,342		131,542		131,542
Other intangible assets, net	118,690		140,084		148,846
Right of use assets, net	50,270		33,387		33,547
Other assets held-for-sale	38,863		643,474		642,538
Other assets, net	74,923		46,914		44,738
Total other assets	412,088		995,401		1,001,211
Property, plant and equipment, net	797,660		860,311		870,151
Total assets	$	3,708,142	$	4,272,121	$	3,411,611

Liabilities and equity
Current liabilities:
Short-term debt	$	281,199	$	403,703	$	100,405
Trade and other payables	825,923		954,809		635,206
Customer prepayments and deferred revenue	147,225		178,226		47,906
Commodity derivative liabilities – current	78,702		146,990		79,159
Current maturities of long-term debt	106,255		69,366		62,499
Accrued taxes	97,215		17,465		15,178
Current liabilities held-for-sale	13,427		25,277		27,996
Accrued expenses and other current liabilities	173,215		135,846		128,187
Total current liabilities	1,723,161		1,931,682		1,096,536
Long-term lease liabilities	31,332		19,835		19,216
Long-term debt, less current maturities	542,821		886,453		717,198
Deferred income taxes	79,636		170,147		163,454
Other long-term liabilities held-for-sale	13,592		48,096		221,334
Other long-term liabilities	81,587		55,248		56,646
Total liabilities	2,472,129		3,111,461		2,274,384
Total equity	1,236,013		1,160,660		1,137,227
Total liabilities and equity	$	3,708,142	$	4,272,121	$	3,411,611


	Nine months ended September 30,
(in thousands)	2021		2020
Operating Activities
Net income (loss) from continuing operations	$	66,069	$	(32,088)
Income from discontinued operations, net of income taxes	7,453		3,224
Net income (loss)	73,522		(28,864)
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities:
Depreciation and amortization	142,137		141,167
Bad debt (recovery) expense, net	(2,182)		8,049
Equity in earnings of affiliates, net of dividends	(2,389)		(228)
Gain on sale of business from continuing operations	(14,619)		—
Loss on sale of business from discontinued operations	1,491		—
Gain on sales of assets, net	(6,505)		(1,037)
Stock-based compensation expense	6,727		7,742
Deferred federal income tax	(93,725)		21,917
Inventory write down	3,399		10,933
Other	7,005		4,141
Changes in operating assets and liabilities:
Accounts receivable	(89,902)		(1,952)
Inventories	266,865		400,262
Commodity derivatives	(158,741)		(2,574)
Other assets	(3,357)		(34,343)
Payables and other accrued expenses	(10,659)		(329,422)
Net cash provided by operating activities	119,067		195,791
Investing Activities
Purchases of property, plant and equipment and capitalized software	(52,730)		(59,414)
Proceeds from sale of assets	3,999		8,121
Purchases of investments	(5,993)		(2,849)
Proceeds from sale of business from continuing operations	18,130		2,467
Proceeds from sale of business from discontinued operations	543,102		—
Purchases of Rail assets	(6,039)		(26,258)
Proceeds from sale of Rail assets	18,705		7,774
Other	349		—
Net cash provided by (used in) investing activities	519,523		(70,159)
Financing Activities
Net payments under lines of credit	(324,279)		(44,183)
Proceeds from issuance of short-term debt	608,250		—
Payments of short-term debt	(408,250)		—
Proceeds from issuance of long-term debt	186,800		213,906
Payments of long-term debt	(485,527)		(310,694)
Contributions from noncontrolling interest owner	4,655		6,493
Distributions to noncontrolling interest owner	(25)		(10,322)
Payments of debt issuance costs	(2,059)		(250)
Dividends paid	(17,503)		(17,234)
Other	(12,709)		(4,143)
Net cash used in financing activities	(450,647)		(166,427)
Effect of exchange rates on cash and cash equivalents	(192)		(407)
Increase (decrease) in cash and cash equivalents	187,751		(41,202)
Cash and cash equivalents at beginning of period	29,123		54,895
Cash and cash equivalents at end of period	$	216,874	$	13,693


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2021		2020		2021		2020
Net income (loss) from continuing operations	$	12,290	$	1,788	$	66,069	$	(32,088)
Net income (loss) attributable to noncontrolling interests	(1,602)		3,273		(822)		(20,583)
Net income (loss) from continuing operations attributable to The Andersons, Inc.	13,892		(1,485)		66,891		(11,505)
Items impacting other income, net of tax:

Transaction related stock compensation	243		912		1,000		3,260
Gain on sale of a business	(14,619)		—		(14,619)		—
Loss on cost method investment	2,784		—		2,784		—
Severance costs	—		3,222		—		5,563
Income tax impact of adjustments (a)	2,898		(5,511)		2,709		(16,962)
Total adjusting items, net of tax	(8,694)		(1,377)		(8,126)		(8,139)
Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc.	$	5,198	$	(2,862)	$	58,765	$	(19,644)

Diluted earnings (loss) from continuing operations attributable to The Andersons, Inc. common shareholders	$	0.41	$	(0.04)	$	1.99	$	(0.35)

Impact on diluted earnings (loss) per share from continuing operations	$	(0.26)	$	(0.04)	$	(0.24)	$	(0.25)
Adjusted diluted earnings (loss) from continuing operations per share	$	0.15	$	(0.08)	$	1.75	$	(0.60)

Adjusted net income (loss) from continuing operations attributable to the Andersons, Inc. reflects reported net income (loss) from continuing operations available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) from continuing operations 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) from continuing operations attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) from continuing operations 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) from continuing operations per share amount for each specified item.


(in thousands)	Trade		Ethanol		Plant Nutrient		Other		Total
Three months ended September 30, 2021
Sales and merchandising revenues	$	2,242,131	$	614,637	$	142,056	$	—	$	2,998,824
Gross profit	98,196		5,751		17,888		—		121,835
Operating, administrative and general expenses	67,590		10,014		22,883		9,788		110,275
Other income (loss), net	16,886		683		309		(4,072)		13,806
Income (loss) before income taxes from continuing operations	41,999		(5,238)		(5,832)		(14,612)		16,317
Income (loss) attributable to noncontrolling interests	—		(1,602)		—		—		(1,602)
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	41,999	$	(3,636)	$	(5,832)	$	(14,612)	$	17,919
Adjustments to income (loss) before income taxes from continuing operations (b)	(14,376)		—		—		2,784		(11,592)
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	27,623	$	(3,636)	$	(5,832)	$	(11,828)	$	6,327

Three months ended September 30, 2020
Sales and merchandising revenues	$	1,432,922	$	349,957	$	102,707	$	—	$	1,885,586
Gross profit	65,572		11,169		16,496		—		93,237
Operating, administrative and general expenses	58,385		5,650		21,175		7,400		92,610
Other income (loss), net	3,114		553		579		(400)		3,846
Income (loss) before income taxes from continuing operations	5,941		4,421		(5,387)		(7,335)		(2,360)
Income (loss) attributable to noncontrolling interests	—		3,273		—		—		3,273
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	5,941	$	1,148	$	(5,387)	$	(7,335)	$	(5,633)
Adjustments to income (loss) before income taxes from continuing operations (b)	912		—		—		3,222		4,134
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	6,853	$	1,148	$	(5,387)	$	(4,113)	$	(1,499)
(a) Income (loss) from continuing operations 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) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.



(in thousands)	Trade		Ethanol		Plant Nutrient		Other		Total
Nine months ended September 30, 2021
Sales and merchandising revenues	$	6,522,508	$	1,674,123	$	632,717	$	—	$	8,829,348
Gross profit	248,584		48,950		101,149		—		398,683
Operating, administrative and general expenses	186,035		23,247		72,850		30,701		312,833
Other income (loss), net	24,439		2,048		1,745		(3,489)		24,743
Income (loss) before income taxes from continuing operations	69,631		21,999		26,686		(34,182)		84,134
Income (loss) attributable to noncontrolling interests	—		(822)		—		—		(822)
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	69,631	$	22,821	$	26,686	$	(34,182)	$	84,956
Adjustments to income (loss) before income taxes from continuing operations (b)	(13,619)		—		—		2,784		(10,835)
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	56,012	$	22,821	$	26,686	$	(31,398)	$	74,121

Nine months ended September 30, 2020
Sales and merchandising revenues	$	4,162,130	$	886,742	$	507,445	$	—	$	5,556,317
Gross profit	187,420		(20,829)		75,625		—		242,216
Operating, administrative and general expenses	181,539		17,271		59,197		19,356		277,363
Other income (loss), net	6,865		1,465		935		889		10,154
Income (loss) before income taxes from continuing operations	(3,650)		(42,543)		12,828		(17,351)		(50,716)
Income (loss) attributable to noncontrolling interests	—		(20,583)		—		—		(20,583)
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	(3,650)	$	(21,960)	$	12,828	$	(17,351)	$	(30,133)
Adjustments to income (loss) before income taxes from continuing operations (b)	3,260		—		—		5,563		8,823
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)	$	(390)	$	(21,960)	$	12,828	$	(11,788)	$	(21,310)
(a) Income (loss) from continuing operations 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) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.


	Continuing Operations										Discontinued Operations		Total Company
(in thousands)	Trade		Ethanol		Plant Nutrient		Other		Total		Rail
Three months ended September 30, 2021
Net income (loss)	$	41,999	$	(5,238)	$	(5,832)	$	(18,639)	$	12,290	$	1,846	$	14,136
Interest expense (income)	5,243		1,658		1,146		752		8,799		2,139		10,938
Tax provision (benefit)	—		—		—		4,027		4,027		(2,777)		1,250
Depreciation and amortization	11,037		22,811		6,508		2,455		42,811		4,172		46,983
EBITDA	58,279		19,231		1,822		(11,405)		67,927		5,380		73,307
Adjusting items impacting EBITDA:

Transaction related stock compensation	243		—		—		—		243		—		243
Gain on sale of a business	(14,619)		—		—		—		(14,619)		—		(14,619)
Loss on cost method investment	—		—		—		2,784		2,784		—		2,784

Total adjusting items	(14,376)		—		—		2,784		(11,592)		—		(11,592)
Adjusted EBITDA	$	43,903	$	19,231	$	1,822	$	(8,621)	$	56,335	$	5,380	$	61,715

Three months ended September 30, 2020
Net income (loss)	$	5,941	$	4,421	$	(5,387)	$	(3,187)	$	1,788	$	427	$	2,215
Interest expense (income)	4,380		1,651		1,287		(465)		6,853		3,716		10,569
Tax provision (benefit)	—		—		—		(4,148)		(4,148)		(566)		(4,714)
Depreciation and amortization	11,079		18,282		6,316		2,710		38,387		8,882		47,269
EBITDA	21,400		24,354		2,216		(5,090)		42,880		12,459		55,339
Adjusting items impacting EBITDA:

Transaction related stock compensation	912		—		—		—		912		—		912


Severance costs	—		—		—		3,222		3,222		—		3,222
Total adjusting items	912		—		—		3,222		4,134		—		4,134
Adjusted EBITDA	$	22,312	$	24,354	$	2,216	$	(1,868)	$	47,014	$	12,459	$	59,473


	Continuing Operations										Discontinued Operations		Total Company
(in thousands)	Trade		Ethanol		Plant Nutrient		Other		Total		Rail
Nine months ended September 30, 2021
Net income (loss)	$	69,631	$	21,999	$	26,686	$	(52,247)	$	66,069	$	7,453	$	73,522
Interest expense (income)	19,746		5,752		3,358		(8)		28,848		8,714		37,562
Tax provision (benefit)	—		—		—		18,065		18,065		(428)		17,637
Depreciation and amortization	33,317		60,608		19,345		7,107		120,377		21,760		142,137
EBITDA	122,694		88,359		49,389		(27,083)		233,359		37,499		270,858
Adjusting items impacting EBITDA:

Transaction related stock compensation	1,000		—		—		—		1,000		—		1,000
Gain on sale of a business	(14,619)		—		—		—		(14,619)		—		(14,619)
Loss on cost method investment	—		—		—		2,784		2,784		—		2,784

Total adjusting items	(13,619)		—		—		2,784		(10,835)		—		(10,835)
Adjusted EBITDA	$	109,075	$	88,359	$	49,389	$	(24,299)	$	222,524	$	37,499	$	260,023

Nine months ended September 30, 2020
Net income (loss)	$	(3,650)	$	(42,543)	$	12,828	$	1,277	$	(32,088)	$	3,224	$	(28,864)
Interest expense (income)	16,624		5,908		4,535		(1,116)		25,951		12,032		37,983
Tax provision (benefit)	—		—		—		(18,628)		(18,628)		250		(18,378)
Depreciation and amortization	33,478		53,786		19,021		8,212		114,497		26,670		141,167
EBITDA	46,452		17,151		36,384		(10,255)		89,732		42,176		131,908
Adjusting items impacting EBITDA:

Transaction related stock compensation	3,260		—		—		—		3,260		—		3,260


Severance costs	—		—		—		5,563		5,563		—		5,563
Total adjusting items	3,260		—		—		5,563		8,823		—		8,823
Adjusted EBITDA	$	49,712	$	17,151	$	36,384	$	(4,692)	$	98,555	$	42,176	$	140,731


	Three Months Ended,								Twelve months ended September 30, 2021
(in thousands)	December 31, 2020		March 31, 2021		June 30, 2021		September 30, 2021
Net income (loss) from continuing operations	$	15,917	$	9,755	$	44,024	$	12,290	$	81,986
Interest expense (income)	7,833		9,989		10,060		8,799		36,681
Tax provision (benefit)	7,718		4,361		9,677		4,027		25,783
Depreciation and amortization	38,568		38,617		38,949		42,811		158,945
EBITDA	70,036		62,722		102,710		67,927		303,395
Adjusting items impacting EBITDA:

Transaction related stock compensation	946		483		274		243		1,946
Gain on sale of a business	—		—		—		(14,619)		(14,619)
Loss from cost method investment	—		—		—		2,784		2,784
Severance costs	528		—		—		—		528
Total adjusting items	1,474		483		274		(11,592)		(9,361)
Adjusted EBITDA	$	71,510	$	63,205	$	102,984	$	56,335	$	294,034

	Three Months Ended,								Twelve months ended September 30, 2020
	December 31, 2019		March 31, 2020		June 30, 2020		September 30, 2020
Net income (loss) from continuing operations	$	1,206	$	(44,166)	$	10,290	$	1,788	$	(30,882)
Interest expense (income)	9,663		11,104		7,994		6,853		35,614
Tax provision (benefit)	13,593		(9,416)		(5,064)		(4,148)		(5,035)
Depreciation and amortization	39,025		37,982		38,128		38,387		153,522
EBITDA	63,487		(4,496)		51,348		42,880		153,219
Adjusting items impacting EBITDA:
Transaction related stock compensation	1,998		1,331		1,017		912		5,258
Acquisition costs	2,158		—		—		—		2,158
Asset impairments including equity method investments	43,097		—		—		—		43,097
Loss from remeasurement of equity method investment	(36,287)		—		—		—		(36,287)
Gain on sales of assets	(8,646)		—		—		—		(8,646)
Severance costs	—		—		2,341		3,222		5,563
Total adjusting items	2,320		1,331		3,358		4,134		11,143
Adjusted EBITDA	$	65,807	$	(3,165)	$	54,706	$	47,014	$	164,362


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2021		2020		2021		2020
Cash provided by (used in) operating activities	$	364,561	$	50,280	$	119,067	$	195,791
Changes in operating assets and liabilities
Accounts receivable	(31,564)		7,229		(89,902)		(1,952)
Inventories	(123,641)		(136,689)		266,865		400,262
Commodity derivatives	91,950		(17,554)		(158,741)		(2,574)
Other assets	(38,925)		(9,559)		(3,357)		(34,343)
Payables and other accrued expenses	506,224		152,202		(10,659)		(329,422)
Total changes in operating assets and liabilities	404,044		(4,371)		4,206		31,971
Adjusting items impacting cash from operations before working capital changes:
Changes in CARES Act tax refund receivable	—		(1,870)		27,697		(37,564)
Changes in deferred income taxes as a result of the Rail leasing sale	95,097		—		95,097		—
Cash from operations before working capital changes	$	55,614	$	52,781	$	237,655	$	126,256

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.