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| 8-K - 8-K - Andersons, Inc. | a8kq42019earningsrelea.htm |
NEWS RELEASEThe Andersons, Inc. Reports Fourth Quarter and Full-Year Results
MAUMEE, OHIO, February 12, 2020 - The Andersons, Inc. (NASDAQ: ANDE) announces financial results for the fourth quarter ended December 31, 2019.
Fourth Quarter Highlights:
• | 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. |
“The acquisition of Lansing Trade Group continues to perform well, as stronger merchandising results somewhat offset the negative consequences of fewer acres planted and a late, wet harvest in the Trade Group’s eastern footprint,” said President and CEO Pat Bowe. "I am pleased with our efforts to capture both top-line and expense synergies associated with the Lansing transaction “By the end of the year, we exceeded our original run-rate goal of $10 million in cost savings a year ahead of schedule.
"The Ethanol Group's operating results reflect the favorable impact of hedging activity and continued strong performance by the group's expanded trading team," continued Bowe. "In addition, the fourth quarter results now include the consolidated results of the Ethanol Group's operations from the merger of four separate entities to form The Andersons Marathon Holdings, LLC in early October. The impacts of these Trade and Ethanol Group transactions, along with the new ELEMENT ethanol plant, set us up well for improved company performance in 2020.”
$ 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 | ||||||
1 Reflects amounts attributable to the company and excludes income (loss) attributable to the noncontrolling interests of $(1.0) in Q4 2019, $(0.1) in Q4 2018, $(3.2) for year-to-date 2019 and $(0.3) for year-to-date 2018. See non-GAAP reconciliations in the accompanying tables.
Fourth Quarter Segment Overview
Trade Group Records Lower Adjusted Results Driven by Smaller Eastern Corn Belt Harvest
With the closing of the Lansing acquisition effective January 1, 2019, Trade Group results include the consolidated results of both Lansing and Thompsons Limited.
The Trade Group recorded a pretax loss of $19.0 million but its adjusted pretax income was $18.5 million for the quarter. The group also recorded $3.0 million of incremental depreciation and amortization expenses related to the Lansing acquisition. The former Grain Group recorded pretax income of $24.2 million in the fourth quarter of 2018.
• | 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. |
The group adjusted its reported pretax income by $37.5 million; adjustments included the following items:
• | 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’s fourth quarter adjusted EBITDA rose 24 percent to $38.1 million, while its full year adjusted EBITDA increased from $49.6 million in 2018 to $126.3 million in 2019.
Ethanol Group Remains Profitable; Merger Completed
The Ethanol Group earned pretax income and adjusted pretax income of $41.2 million and $6.2 million, respectively, attributable to the company in the fourth quarter, compared to the $6.3 million of pretax income it earned in the same period in 2018. The fourth quarter 2019 results included the consolidated results of all five ethanol plants due to The Andersons Marathon Holdings, LLC (TAMH) merger and the continued ramp-up of operations of the ELEMENT plant.
• | 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. |
The group recorded adjustments that increased reported pre-tax income by $35.0 million, including a $36.3 million gain on the remeasurement of its pre-existing investments in the Albion, Clymers and Greenville entities in conjunction with the TAMH merger. The resulting increase in fixed asset basis led to incremental depreciation of $2.5 million.
The group recorded adjusted EBITDA attributable to the company of $16.6 million in the fourth quarter of 2019 compared to 2018 fourth quarter adjusted EBITDA attributable to the company of $6.9 million. This result excludes the EBITDA allocable to the noncontrolling interests.
Plant Nutrient Group Records Comparable Year-Over-Year Results
The Plant Nutrient Group recorded pretax income of $4.6 million and adjusted pretax income of $3.9 million in the fourth quarter, compared to pretax income of $3.8 million in the prior year period.
• | 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. |
The group adjusted reported income for a $2.9 million gain on the sale of the Auburn, Michigan farm center and impairment charges of $2.2 million associated with intangible assets related to the specialty nutrients business.
The group’s current quarter adjusted EBITDA was $11.5 million, a slight decrease compared to 2018 fourth quarter EBITDA of $12.5 million. For the full year, the group recorded adjusted EBITDA of $42.3 million and $45.4 million in 2019 and 2018, respectively, in the face of significant unplanted acres in our key markets in 2019.
Rail Group Results Down on Lower Service and Other Income
The Rail Group earned fourth quarter pretax income of $4.5 million compared to $6.7 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 $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. |
The group’s fourth quarter 2019 EBITDA of $17.6 million was comparable to fourth quarter 2018 EBITDA. Full-year EBITDA was $65.7 million, an improvement of 13% over 2018 results.
Provision for Income Taxes Includes Charge Related to Lansing Acquisition, Research and Development Tax Credits
The company’s fourth quarter income tax provision included tax expense of approximately $8.0 million, or $0.24 per diluted share, related to nondeductible Canadian losses on the company's investment in Thompsons Limited. As with other transaction-related amounts, the company has excluded this charge from its adjusted net income. In addition, the company’s fourth quarter income tax provision included a tax benefit of approximately $2.7 million, or $0.08 per diluted share, for federal research and development income tax credits primarily related to the construction and ramp-up of the ELEMENT biorefinery.
Other Adjustments Related to the Lansing Acquisition
As it did in the first three quarters, the company has recast fourth quarter 2018 information 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.
Conference Call and Upcoming Investor Day
The company will host a webcast on Thursday, February 13, 2020, at 11 a.m. Eastern Standard Time, to discuss its performance and provide its updated outlook for 2020. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 7479245). 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/saat5p3z . 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.
The company will also host an investor day on Wednesday, April 1, 2020 in New York City. A webcast of the event, along with the associated presentation, will be available on the company's website.
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 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 | |||||||
The Andersons, Inc.
Reconciliation to Adjusted Net Income (unaudited)
(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 | |||||||
The Andersons, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(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 | |||
The Andersons, Inc.
Segment Data (unaudited)
(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 | ||||||||||
(a) Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.
(b) Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.
(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 | ||||||||||
(a) Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.
(b) Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.
The Andersons, Inc.
Reconciliation to EBITDA and Adjusted EBITDA
(unaudited)
(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 | ||||||||||