EX-99.1 2 q32022ex-99pressrelease.htm EX-99.1 Document
Exhibit 99.1
ande75a.jpg NEWS RELEASE

The Andersons, Inc. Reports Continued Strong Quarterly Results
MAUMEE, OHIO, November 1, 2022 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the third quarter ended September 30, 2022.

Third Quarter Highlights:

Company reported net income from continuing operations attributable to The Andersons of $17.4 million, or $0.50 per diluted share
EBITDA from continuing operations was $83.0 million for the quarter
Trade reported pretax income of $40.7 million on continuing strong execution
Renewables produced pretax income of $15.9 million and pretax income attributable to The Andersons of $8.4 million, a significant improvement year over year

"Great results in our Trade business led the way for this strong quarter. The team executed well and we had positive results from our base business as well as the new growth investments. The Renewables team also performed well in the quarter, despite declining ethanol crush margins and planned maintenance shutdowns. Within Plant Nutrient, ag businesses continued to see high margins, however, we took some write-downs in our lawn products inventory," said President and CEO Pat Bowe. "We also made progress against our growth strategy. We announced the acquisition of Bridge Agri - a pulses and pet food ingredients company headquartered in Lethbridge, Alberta. We also recently announced the acquisition of Mote Farm Service, a farm center located within our core geography. Bolt-on opportunities like these, that are well-aligned with our core grain and fertilizer verticals, remain very attractive growth opportunities for us."

"We celebrated the 75th anniversary of the company in August," continued Bowe. "In recognition of this important milestone, teams of employees have been volunteering for 75 acts of service in 2022 across our broad geographic footprint, honoring our commitment to service in the communities in which we operate."




$ in millions, except per share amounts
Q3 2022Q3 2021Variance
YTD 2022
YTD 2021
Variance
Pretax Income from Continuing Operations$34.7 $16.3 $18.4 $163.5 $84.1 $79.4 
Pretax Income from Continuing Operations Attributable to the Company1
27.2 17.9 9.3 133.7 85.0 48.7 
Adjusted Pretax Income (Loss) from Continuing Operations Attributable to the Company1
27.2 6.3 20.9 134.3 74.1 60.2 
     Trade1
40.7 27.6 13.1 68.7 56.0 12.7 
     Renewables1
8.4 (3.6)12.0 59.8 22.8 37.0 
     Plant Nutrient(11.6)(5.8)(5.8)37.4 26.7 10.7 
     Other1
(10.2)(11.8)1.6 (31.6)(31.4)(0.2)
Net Income from Continuing Operations Attributable to the Company
17.4 13.9 3.5 104.0 66.9 37.1 
Adjusted Net Income from Continuing Operations Attributable to the Company1
17.4 5.2 12.2 105.6 58.8 46.8 
Diluted Earnings Per Share from Continuing Operations (EPS)0.50 0.41 0.09 3.02 1.99 1.03 
Adjusted Diluted Earnings Per Share from Continuing Operations1
0.50 0.15 0.35 3.07 1.75 1.32 
EBITDA from Continuing Operations1
83.0 67.9 15.1 307.5 233.4 74.1 
Adjusted EBITDA from Continuing Operations1
$83.0 $56.3 $26.7 $308.2 $222.5 $85.7 
1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

Cash, Liquidity and Long-Term Debt Management

"Our businesses continue to generate strong operating cash flows and we remain disciplined in our approach to capital spending. We also began to execute share repurchases in the third quarter under our $100 million board authorization and continue to be well below our long-term debt to EBITDA target of less than 2.5 times," said Executive Vice President and CFO Brian Valentine.

The company generated $568.4 million and $364.6 million in cash from operating activities for the third quarters of 2022 and 2021, respectively, and $50.7 million and $55.6 million in cash from operations before working capital changes for the same periods, respectively. Working capital remains higher than is typical, due to business growth and high commodity prices that impact the value of inventory and accounts receivable.

Third Quarter Segment Overview


Trade Generates Strong Earnings; Record Q3 Adjusted Earnings

The Trade segment recorded pretax income of $40.7 million for the quarter compared to pretax income and adjusted pretax income of $42.0 million and $27.6 million, respectively, in the third quarter of 2021. The segment benefited from strong elevation margins, particularly in early harvest geographies, and excellent merchandising results across the portfolio. In addition, well-positioned animal feed ingredients and organic food and specialty inventories generated good margins.




The majority of our assets are located in areas expected to experience above-trend yields. Continuing global supply and demand imbalances due to production shortfalls and logistical challenges are expected to keep prices relatively high and allow for continued merchandising opportunities and strong elevation margins.

Trade’s third quarter EBITDA was $60.5 million, compared to third quarter 2021 adjusted EBITDA of $43.9 million.


Renewables Generates Solid Q3 Earnings on Strong Margins; Co-Product Values Remain Strong

The Renewables segment reported pretax income of $15.9 million and pretax income attributable to the company of $8.4 million in the third quarter compared to a pretax loss of $5.2 million and a pretax loss attributable to the company of $3.6 million realized in the same period in 2021.

Nearly all of the improvement from the third quarter of 2021 resulted from better margins in our ethanol plants. This was particularly evident in our eastern plants where corn basis was lower in front of an expected good harvest. High co-product values continue to support our results. Increased corn basis in the western U.S. may negatively impact ethanol margins in that region, while our eastern corn belt production facilities are well-positioned for corn supply. Expected margin declines into the fourth quarter will negatively impact performance as compared to the fourth quarter of 2021 when industry margins were at record highs.

Renewables had record third quarter EBITDA of $34.0 million in 2022, up $14.8 million from 2021 third quarter EBITDA of $19.2 million.


Plant Nutrient Ag Businesses Solid; Challenging Quarter for Manufactured Lawn Products

The Plant Nutrient segment posted a pretax loss of $11.6 million, compared to a loss in the prior year of $5.8 million in this seasonally low third quarter. As expected, margins remain strong in our core wholesale nutrients, farm centers, and specialty liquid products. In the granular and contract manufactured products, sales volume and margin declined on lower demand, production challenges, and inventory write-downs. Good fall weather and strong farm income are expected to support fall application rates in our core ag businesses.

Plant Nutrient’s third quarter EBITDA was $(3.1) million compared to 2021 third quarter EBITDA of $1.8 million.


Income Taxes; Corporate

The company recorded income taxes from continuing operations at an effective rate of 28.3% for the quarter due to the tax treatment of non-controlling interests. We continue to anticipate a full-year effective rate of approximately 18% - 21%.


Conference Call




The company will host a webcast on Wednesday, November 2, 2022, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its outlook for the remainder of 2022 and preliminary views for 2023. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 3217229). It is recommended that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: https://app.webinar.net/Evo9LbNLqb7. Complete the six fields as directed and click "Register." A replay of the call can also be accessed under the heading "Investors" on the company’s refreshed 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, the ongoing economic impacts from the war in Ukraine, and the risk factors set forth from time to time in the company’s filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.


Non-GAAP Measures

This release contains non-GAAP financial measures. The company believes that pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations; adjusted net income from continuing operations attributable to the company; 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.


Company Description

The Andersons, Inc., celebrating 75 years of service and named to Forbes® lists of America's Best Employers for 2022 and Best Employers for Diversity 2022 as well as America's Most Trusted Companies 2022 by Newsweek®, is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and plant nutrient sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.





Investor Relations Contact    
Mike Hoelter    
Vice President, Corporate Controller and Investor Relations
Phone: 419-897-6715
E-mail: investorrelations@andersonsinc.com






The Andersons, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three months ended September 30,Nine months ended September 30,
(in thousands, except per share data)2022202120222021
Sales and merchandising revenues$4,219,325 $2,998,824 $12,647,896 $8,829,348 
Cost of sales and merchandising revenues4,055,560 2,876,989 12,133,755 8,430,665 
Gross profit163,765 121,835 514,141 398,683 
Operating, administrative and general expenses115,539 110,275 330,085 312,833 
Interest expense, net14,982 8,799 42,762 28,848 
Other income, net:
Equity in earnings (losses) of affiliates, net681 (250)(5,597)2,389 
Other income, net794 13,806 27,782 24,743 
Income before income taxes from continuing operations34,719 16,317 163,479 84,134 
Income tax provision from continuing operations9,839 4,027 29,695 18,065 
Net income from continuing operations24,880 12,290 133,784 66,069 
Income from discontinued operations, net of income taxes19,392 1,846 18,099 7,453 
Net income44,272 14,136 151,883 73,522 
Net income (loss) attributable to noncontrolling interests7,524 (1,602)29,827 (822)
Net income attributable to The Andersons, Inc.$36,748 $15,738 $122,056 $74,344 
Earnings per share attributable to The Andersons, Inc. common shareholders:
Basic earnings:
Continuing operations$0.51 $0.42 $3.08 $2.01 
Discontinued operations0.57 0.06 0.54 0.22 
$1.08 $0.48 $3.62 $2.23 
Diluted earnings:
Continuing operations$0.50 $0.41 $3.02 $1.99 
Discontinued operations0.56 0.05 0.53 0.22 
$1.06 $0.46 $3.55 $2.21 







The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)September 30, 2022December 31, 2021September 30, 2021
Assets
Current assets:
  Cash and cash equivalents$140,771 $216,444 $216,874 
  Accounts receivable, net990,531 835,180 735,349 
  Inventories1,556,426 1,814,538 1,017,804 
  Commodity derivative assets – current502,097 410,813 409,647 
  Current assets held-for-sale 20,885 26,561 
  Other current assets75,402 74,468 92,159 
Total current assets3,265,227 3,372,328 2,498,394 
Other assets:
Goodwill129,342 129,342 129,342 
Other intangible assets, net99,317 117,137 118,690 
Right of use assets, net59,146 52,146 50,270 
Other assets held-for-sale 43,169 38,863 
Other assets, net99,650 69,068 74,923 
Total other assets387,455 410,862 412,088 
Property, plant and equipment, net765,939 786,029 797,660 
Total assets$4,418,621 $4,569,219 $3,708,142 
 
Liabilities and equity
Current liabilities:
  Short-term debt$652,947 $501,792 $281,199 
  Trade and other payables930,027 1,199,324 825,923 
  Customer prepayments and deferred revenue258,828 358,119 147,225 
  Commodity derivative liabilities – current137,168 128,911 78,702 
  Current maturities of long-term debt112,029 32,256 106,255 
Accrued taxes23,439 37,668 97,215 
  Current liabilities held-for-sale 13,379 13,427 
  Accrued expenses and other current liabilities206,069 192,480 173,215 
Total current liabilities2,320,507 2,463,929 1,723,161 
Long-term lease liabilities34,779 31,322 31,332 
Long-term debt, less current maturities497,988 600,487 542,821 
Deferred income taxes59,079 71,127 79,636 
Other long-term liabilities held-for-sale 16,119 13,592 
Other long-term liabilities79,727 78,531 81,587 
Total liabilities2,992,080 3,261,515 2,472,129 
Total equity 1,426,541 1,307,704 1,236,013 
Total liabilities and equity$4,418,621 $4,569,219 $3,708,142 





The Andersons, Inc.
Consolidated Statements of Cash Flows
(unaudited)
 Nine months ended September 30,
 (in thousands)20222021
Operating Activities
Net income from continuing operations$133,784 $66,069 
Income from discontinued operations, net of income taxes18,099 7,453 
Net income151,883 73,522 
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization101,266 142,137 
Bad debt expense, net5,028 (2,182)
Equity in (earnings) losses of affiliates, net of dividends5,597 (2,389)
Gain on sale of business from continuing operations (14,619)
(Gain) loss on sale of business from discontinued operations(27,091)1,491 
Gain on sales of assets, net(8,854)(6,505)
Stock-based compensation expense7,697 6,727 
Deferred federal income tax(20,819)(93,725)
Other10,055 10,404 
Changes in operating assets and liabilities:
Accounts receivable(140,866)(89,902)
Inventories236,854 266,865 
Commodity derivatives(104,901)(158,741)
Other current and non-current assets2,000 (3,357)
Payables and other current and non-current liabilities(371,219)(10,659)
Net cash (used in) provided by operating activities(153,370)119,067 
Investing Activities
Purchases of property, plant and equipment and capitalized software(72,247)(52,730)
Proceeds from sale of assets4,810 3,999 
Purchases of investments(2,105)(5,993)
Proceeds from sale of business from continuing operations5,171 18,130 
Proceeds from sale of business from discontinued operations56,302 543,102 
Purchases of Rail assets(27,464)(6,039)
Proceeds from sale of Rail assets36,706 18,705 
Other1,746 349 
Net cash provided by investing activities2,919 519,523 
Financing Activities
Net receipts (payments) under short-term lines of credit361,318 (324,279)
Proceeds from issuance of short-term debt350,000 608,250 
Payments of short-term debt(550,000)(408,250)
Proceeds from issuance of long-term debt 186,800 
Payments of long-term debt(22,585)(485,527)
Contributions from noncontrolling interest owner2,450 4,655 
Distributions to noncontrolling interest owner(34,930)(25)
Payments of debt issuance costs(7,802)(2,059)
Dividends paid(18,262)(17,503)
Proceeds from exercises of stock options5,024 — 
Common stock repurchased(6,769)— 
Other(2,955)(12,709)
Net cash provided by (used in) financing activities75,489 (450,647)
Effect of exchange rates on cash and cash equivalents(711)(192)
Increase (decrease) in cash and cash equivalents(75,673)187,751 
Cash and cash equivalents at beginning of period216,444 29,123 
Cash and cash equivalents at end of period$140,771 $216,874 



The Andersons, Inc.
Adjusted Net Income Attributable to The Andersons, Inc.
A non-GAAP financial measure
(unaudited)
Three months ended September 30,Nine months ended September 30,
(in thousands, except per share data)2022202120222021
Net income from continuing operations$24,880 $12,290 $133,784 $66,069 
Net income (loss) attributable to noncontrolling interests7,524 (1,602)29,827 (822)
Net income from continuing operations attributable to The Andersons, Inc.17,356 13,892 103,957 66,891 
Adjustments:
Gain on sale of frac sand assets — (3,762)— 
Impairment on equity method and cost method investments 2,784 4,455 2,784 
Gain on sale of a business (14,619) (14,619)
Transaction related stock compensation 243  1,000 
Income tax impact of adjustments1
 2,898 940 2,709 
Total adjusting items, net of tax (8,694)1,633 (8,126)
Adjusted net income from continuing operations attributable to The Andersons, Inc. $17,356 $5,198 $105,590 $58,765 
Diluted earnings per share from continuing operations attributable to The Andersons, Inc. common shareholders$0.50 $0.41 $3.02 $1.99 
Impact on diluted earnings (loss) per share from continuing operations$ $(0.26)$0.05 $(0.24)
Adjusted diluted earnings per share from continuing operations$0.50 $0.15 $3.07 $1.75 
1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of the impairment on the equity method investment of $4.5 million for the nine months ended September 30, 2022, which had no income tax impact.


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 from continuing operations attributable to The Andersons, Inc. and Diluted earnings per share from continuing operations 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.




The Andersons, Inc.
Segment Data
(unaudited)
(in thousands)TradeRenewablesPlant NutrientOtherTotal
Three months ended September 30, 2022
Sales and merchandising revenues$3,240,526 $814,923 $163,876 $ $4,219,325 
Gross profit124,368 24,677 14,720  163,765 
Operating, administrative and general expenses
73,347 7,053 25,427 9,712 115,539 
Other income (loss), net(262)832 1,018 (794)794 
Income (loss) before income taxes from continuing operations40,658 15,901 (11,609)(10,231)34,719 
Income (loss) attributable to noncontrolling interests 7,524   7,524 
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)$40,658 $8,377 $(11,609)$(10,231)$27,195 
Three months ended September 30, 2021
Sales and merchandising revenues$2,242,131 $614,637 $142,056 $— $2,998,824 
Gross profit98,196 5,751 17,888 — 121,835 
Operating, administrative and general expenses67,590 10,014 22,883 9,788 110,275 
Other income (loss), net16,886 683 309 (4,072)13,806 
Income (loss) before income taxes from continuing operations41,999 (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 
(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.





The Andersons, Inc.
Segment Data (continued)
(unaudited)
(in thousands)TradeRenewablesPlant NutrientOtherTotal
Nine months ended September 30, 2022
Sales and merchandising revenues$9,422,974 $2,380,721 $844,201 $ $12,647,896 
Gross profit293,981 99,756 120,404  514,141 
Operating, administrative and general expenses195,867 23,533 80,343 30,342 330,085 
Other income (loss), net7,745 19,750 2,688 (2,401)27,782 
Income (loss) before income taxes from continuing operations67,993 89,639 37,445 (31,598)163,479 
Income (loss) attributable to noncontrolling interests 29,827   29,827 
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)$67,993 $59,812 $37,445 $(31,598)$133,652 
Adjustments to income (loss) before income taxes from continuing operations (b)693    693 
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a)$68,686 $59,812 $37,445 $(31,598)$134,345 
Nine months ended September 30, 2021
Sales and merchandising revenues$6,522,508 $1,674,123 $632,717 $— $8,829,348 
Gross profit248,584 48,950 101,149 — 398,683 
Operating, administrative and general expenses186,035 23,247 72,850 30,701 312,833 
Other income (loss), net24,439 2,048 1,745 (3,489)24,743 
Income (loss) before income taxes from continuing operations69,631 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 
(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.





The Andersons, Inc.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
Continuing OperationsDiscontinued OperationsTotal Company
(in thousands)TradeRenewables Plant Nutrient Other TotalRail
Three months ended September 30, 2022
Net income (loss)$40,658 $15,901 $(11,609)$(20,070)$24,880 $19,392 $44,272 
Interest expense (income)10,782 2,555 1,920 (275)14,982  14,982 
Tax provision   9,839 9,839 5,826 15,665 
Depreciation and amortization9,011 15,501 6,626 2,184 33,322  33,322 
EBITDA$60,451 $33,957 $(3,063)$(8,322)$83,023 $25,218 $108,241 
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 amortization11,037 22,811 6,508 2,455 42,811 4,172 46,983 
EBITDA58,279 19,231 1,822 (11,405)67,927 5,380 73,307 
Adjusting items impacting EBITDA:
Gain on sale of a business(14,619)— — — (14,619)— (14,619)
Transaction related stock compensation243 — — — 243 — 243 
Impairment on equity method and cost method investments— — — 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 




The Andersons, Inc.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
Continuing OperationsDiscontinued OperationsTotal Company
(in thousands)TradeRenewablesPlant NutrientOtherTotalRail
Nine months ended September 30, 2022
Net income (loss)$67,993 $89,639 $37,445 $(61,293)$133,784 $18,099 $151,883 
Interest expense (income)32,269 6,334 5,304 (1,145)42,762  42,762 
Tax provision   29,695 29,695 9,169 38,864 
Depreciation and amortization26,899 48,015 19,800 6,552 101,266  101,266 
EBITDA127,161 143,988 62,549 (26,191)307,507 27,268 334,775 
Adjusting items impacting EBITDA:
Gain on sale of frac sand assets(3,762)   (3,762) (3,762)
Impairment on equity method and cost method investments4,455    4,455  4,455 
Total adjusting items693    693  693 
Adjusted EBITDA$127,854 $143,988 $62,549 $(26,191)$308,200 $27,268 $335,468 
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 amortization33,317 60,608 19,345 7,107 120,377 21,760 142,137 
EBITDA122,694 88,359 49,389 (27,083)233,359 37,499 270,858 
Adjusting items impacting EBITDA:
Gain on sale of a business(14,619)— — — (14,619)— (14,619)
Transaction related stock compensation1,000 — — — 1,000 — 1,000 
Impairment on equity method and cost method investments— — — 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 





The Andersons, Inc.
Trailing Twelve Months of EBITDA and Adjusted EBITDA from Continuing Operations
A non-GAAP financial measure
(unaudited)

Three Months Ended,
 Twelve months ended September 30, 2022
(in thousands)December 31, 2021March 31, 2022June 30, 2022September 30, 2022
Net income from continuing operations$65,473 $6,504 $102,400 $24,880 $199,257 
Interest expense8,444 10,859 16,921 14,982 51,206 
Tax provision11,163 4,103 15,753 9,839 40,858 
Depreciation and amortization36,797 34,377 33,567 33,322 138,063 
EBITDA from continuing operations121,877 55,843 168,641 83,023 429,384 
Adjusting items impacting EBITDA from continuing operations:
Transaction related stock compensation274    274 
Asset impairment including equity method investments8,321  4,455  12,776 
Gain on sale of frac sand assets  (3,762) (3,762)
Total adjusting items8,595  693  9,288 
Adjusted EBITDA from continuing operations$130,472 $55,843 $169,334 $83,023 $438,672 
Three Months Ended,
Twelve months ended September 30, 2021
December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Net income from continuing operations$15,917 $9,755 $44,024 $12,290 $81,986 
Interest expense7,833 9,989 10,060 8,799 36,681 
Tax provision (benefit)7,718 4,361 9,677 4,027 25,783 
Depreciation and amortization38,568 38,617 38,949 42,811 158,945 
EBITDA from continuing operations70,036 62,722 102,710 67,927 303,395 
Adjusting items impacting EBITDA from continuing operations:
Transaction related stock compensation946 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 costs528 — — — 528 
Total adjusting items1,474 483 274 (11,592)(9,361)
Adjusted EBITDA from continuing operations$71,510 $63,205 $102,984 $56,335 $294,034 





The Andersons, Inc.
Cash from Operations Before Working Capital Changes
A non-GAAP financial measure
(unaudited)
Three months ended September 30,Nine months ended September 30,
(in thousands)2022202120222021
Cash provided by (used in) operating activities$568,429 $364,561 $(153,370)$119,067 
Changes in operating assets and liabilities
Accounts receivable148,330 (31,564)(140,866)(89,902)
Inventories50,169 (123,641)236,854 266,865 
Commodity derivatives84,189 91,950 (104,901)(158,741)
Other current and non-current assets(3,106)(38,925)2,000 (3,357)
Payables and other current and non-current liabilities238,184 506,224 (371,219)(10,659)
Total changes in operating assets and liabilities517,766 404,044 (378,132)4,206 
Adjusting items impacting cash from operations before working capital changes:
Changes in CARES Act tax refund receivable1
 —  27,697 
Changes in deferred income taxes as a result of the Rail leasing sale2
 95,097  95,097 
Cash from operations before working capital changes$50,663 $55,614 $224,762 $237,655 
1 In 2020, the Company recorded a tax receivable of $37.6 million related to the CARES Act within working capital, with a corresponding impact to deferred taxes and net income. The purpose for presenting this significant unusual item as an adjustment to cash from operations before working capital changes was to show the tax refund in the year that the cash was received. As the working capital accounts are excluded in the cash from operations before working capital changes calculation, the impact of the CARES Act to deferred taxes and net income would have made it appear that cash of $37.6 million was received in 2020 when it was still to be collected. In view of that, we removed the $37.6 million CARES Act tax refund receivable from our 2020 non-GAAP total and included $27.7 million of cash tax refunds in 2021, the year the cash was received. The remaining $9.9 million of the CARES Act tax receivable remains outstanding as of September 30, 2022.
2 As a result of the Rail Leasing sale in the third quarter of the prior year, the Company reclassified a large portion of its deferred tax balance related to the accelerated depreciation of railcar assets to a tax payable. As the tax payable account resides within the "Payables and other current and non-current liabilities" it is removed in the Cash from operations before working capital calculation. Therefore, the change in the deferred balance related to the Rail Leasing sale must also be removed from the calculation to normalize the metric.


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.