PR Newswire | Aug 3, 2021 04:06PM EDT

08/03 15:05 CDT

The Andersons, Inc. Reports Second Quarter Results; Best Q2 since 2014 MAUMEE, Ohio, Aug. 3, 2021

MAUMEE, Ohio, Aug. 3, 2021 /PRNewswire/ -- The Andersons, Inc.(Nasdaq: ANDE) announces financial results for the second quarter ended June 30, 2021.

Second Quarter Highlights:

* Company reported net income attributable to The Andersons of $43.5 million, or $1.30 per diluted share, and adjusted net income of $43.7 million, or $1.31 per diluted share. On an adjusted basis, this was our best second quarter since 2014. * Adjusted EBITDA was $118.1 million for the quarter, up $48.1 million year over year and represents the highest ever quarterly EBITDA. Trailing twelve month adjusted EBITDA exceeds $342 million. * Trade reported pretax income of $13.8 million and adjusted pretax income of $14.1 million on strong elevation margins and merchandising results. * Ethanol reported pretax income attributable to The Andersons of $23.5 million on improved co-product margins and strong trading results. * Plant Nutrient reported pretax income of $24.0 million on stronger margins in their key application season. * Rail reported pretax income of $3.1 million on end-of-life railcar sales.

"I'm very pleased that each of our four businesses delivered outstanding, year-over-year improvement with good execution in volatile markets. I'm proud of our team; they anticipated market opportunities and executed well. These market conditions play into our strengths of commodity trading, logistics, and position management. We expect that North American demand will remain strong and currently anticipate large harvests in our key draw areas this fall which should drive strong performance into 2022," said President and CEO Pat Bowe.

"While ethanol margins have been volatile, risk management and effective hedging coupled with strong returns from co-products are evident in the segment's results," added Bowe. "Plant Nutrient followed up a very strong first quarter with a great second quarter driven by strong margins in supply-constrained markets. And while Rail continues its slow recovery, it has capitalized on record high scrap steel prices to extract value on end-of-life railcars. Lastly, I'm pleased to announce that our twelve trailing months adjusted EBITDA was greater than $342 million, well in excess of the $300 million run rate goal we established for 2021."

$ in millions, except per share amounts

Q2 2021 Q2 2020VarianceYTD 2021YTD 2020 Variance

Pretax Income (Loss) Attributable to the$54.1 $18.2$35.9 $75.0 $(20.9)$95.9 Company^1

Adjusted Pretax Income (Loss) 54.4 21.6 32.8 75.8 (16.2) 92.0 Attributable to the Company^1

Trade^1 14.1 1.4 12.7 28.4 (7.2) 35.6

Ethanol 23.5 0.9 22.6 26.5 (23.1) 49.6

Plant Nutrient 24.0 19.4 4.6 32.5 18.2 14.3

Rail 3.1 2.6 0.5 8.0 3.6 4.4

Other^1 (10.2) (2.7) (7.5) (19.6) (7.7) (11.9)

Net Income (Loss) Attributable to the 43.5 30.4 13.1 58.6 (7.2) 65.8 Company

Adjusted Net Income (Loss) Attributable 43.7 29.3 14.4 59.2 (14.0) 73.2 to the Company^1

Diluted EPS 1.30 0.92 0.38 1.74 (0.22) 1.96

Adjusted Diluted EPS^1 1.31 0.88 0.43 1.76 (0.43) 2.19

EBITDA^1 117.9 66.7 51.2 197.6 76.6 121.0

Adjusted EBITDA^1 $118.1$70.0$48.1 $198.3$81.3 $117.0



^1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

Liquidity and Cash Management

"Our improved operating performance led to strong cash flow from operations before working capital changes of $93.1 million for the second quarter and $182.0 million for the year to date," said Executive Vice President and CFO Brian Valentine. "We were able to reduce total long-term debt by more than $69 million since the start of the year and continue to maintain discipline over capital spending. Our short-term borrowings reflect the impact of higher commodity prices on our working capital lines but have declined from $915.2 million at the close of our first quarter, which is our typical seasonal high. We continue to have strong support from our lenders and are confident that available capacity will be sufficient to cover our needs. We remain focused on overall liquidity, disciplined risk management, and expense control."

Readily marketable inventories of $612 million and margin deposits of $220 million at June 30, 2021, are supported by short-term borrowings of $757 million. The balance of readily marketable inventories is a significant increase from the prior year and reflects the overall inflation in commodity prices.

The company invested $7.7 million, net of proceeds from asset sales, on capital projects in the quarter. This is a reduction from 2020, primarily resulting from fewer purchases and the opportunistic scrapping of railcars. The company expects to invest approximately $100 million in 2021.

Second Quarter Segment Overview

Strong Trade Results Driven by Elevation Margins and Merchandising Income Result in $12.7 Million Improvement

The Trade segment recorded improved adjusted pretax income of $14.1 million for the quarter compared to an adjusted pretax income of $1.4 million in the second quarter of 2020. The difference in reported and adjusted income in both periods was attributable to stock compensation expense associated with the 2019 acquisition of Lansing Trade Group.

Strong commodity merchandising and elevation results are driving nearly all of the year-over-year improvement. Once again, good positioning and execution within domestic and export markets has contributed to year-over-year improved performance. Operating and interest expense for the segment were up $9 million primarily due to higher incentive compensation and commodity prices; labor and benefits continue to reflect a decrease from our cost reduction projects and Lansing Trade Group integration.

As scarcity of supply entering this fall harvest is impacting overall prices, we expect continued merchandising opportunities. Crop conditions in the majority of our draw area are excellent and we are preparing for a large harvest. With continued strong demand and limited board carry, the volume of grain in storage is expected to remain at levels below recent years, as higher prices and strong elevation margins are expected to continue into 2022.

Trade's second quarter adjusted EBITDA was $32.7 million, nearly double the second quarter 2020 adjusted EBITDA of $17.5 million.

Ethanol Generates $23.5 Million of Pretax Income on Improved Co-Product Values and Trading; Best Second Quarter since 2014

The Ethanol segment reported pretax income attributable to the company of $23.5 million in the second quarter compared to the pretax income attributable to the company of $0.9 million it realized in the same period in 2020.

The quarter-over-quarter improvement was driven by strong co-product margins at the five ethanol plants and profitable third-party trading of ethanol, feed ingredients, and vegetable oil. The segment also recorded a non-cash mark-to-market gain of $13.5 million in 2021 compared to a gain of $8.7 million in the second quarter of 2020. Most of this gain is a reversal of mark-to-market losses experienced in previous periods.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the trading business. Current Q3 ethanol board crush margins are positive; we will opportunistically hedge forward ethanol production when profitable in the future months as driving demand seasonally declines.

Ethanol recorded EBITDA of $47.2 million in the second quarter of 2021, up almost $37 million from 2020 second quarter EBITDA of $10.3 million.

Plant Nutrient Continues Excellent Performance with a Great Finish to the Spring Season

The Plant Nutrient segment posted another outstanding quarter, recording pretax income of $24.0 million, which was up $4.6 million compared to pretax income of $19.4 million last year. Gross profit for the group was up $12.1 million resulting from high demand and product mix. Margin improvements were experienced across the breadth of product lines and reflect strong demand, improved grower income, and well-positioned inventory. Plant Nutrient's EBITDA was $31.6 million compared to 2020 second quarter EBITDA of $27.2 million, a 16% increase.

Rail Benefits from High Scrap Steel Prices

Rail recorded second quarter pretax income of $3.1 million compared to $2.6 million of pretax income in the same period of the prior year. Scrap steel prices have remained high and we continue to scrap older railcars where it makes economic sense. Second quarter 2021 EBITDA was $15.2 million which was flat year-over-year.

Income Taxes; Corporate

The company has recorded income taxes at an effective rate of 18.7% for the second quarter and anticipates a full year effective rate of approximately 25%.

Increases in Corporate expense are primarily a result of increased variable incentive compensation as a product of the strong year-to-date performance. Year-over-year cost reductions, resulting from our cost savings initiatives, are reflected in our business segments.

Conference Call

The company will host a webcast on Wednesday, August 4, 2021, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its updated outlook for 2021. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 4071499). It is recommended that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: https://edge.media-server.com/mmc/p/wsnkx8qk. Complete the four fields as directed and click "Submit." A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com.

Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, 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.

Non-GAAP Measures

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

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.

The Andersons, Inc. Condensed Consolidated Statements of Operations (unaudited)



Three months ended June Six months ended June 30, 30,

(in thousands, except per share data) 2021 2020 2021 2020

Sales and merchandising revenues $3,273,726$1,890,180$5,909,455$3,743,286

Cost of sales and merchandising revenues 3,099,682 1,783,914 5,612,699 3,573,890

Gross profit 174,044 106,266 296,756 169,396

Operating, administrative and general expenses 109,976 90,136 209,848 195,196

Interest expense, net 13,454 11,827 26,623 27,414

Other income, net:

Equity in earnings of affiliates, net 845 79 2,639 209

Other income, net 5,307 3,450 12,849 8,263

Income (loss) before income taxes 56,766 7,832 75,773 (44,742)

Income tax provision (benefit) 10,642 (12,200) 16,387 (13,664)

Net income (loss) 46,124 20,032 59,386 (31,078)

Net income (loss) attributable to noncontrolling interests 2,625 (10,407) 780 (23,856)

Net income (loss) attributable to The Andersons, Inc. $43,499 $30,439 $58,606 $(7,222)



Per common share:

Basic earnings (loss) attributable to The Andersons, Inc. common $1.31 $0.92 $1.76 $(0.22) shareholders

Diluted earnings (loss) attributable to The Andersons, Inc. common$1.30 $0.92 $1.74 $(0.22) shareholders

The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited)



(in thousands) June 30, December 31, June 30, 2021 2020 2020

Assets

Current assets:

Cash and cash equivalents $27,538 $29,123 $30,011

Accounts receivable, net 721,575 659,834 537,011

Inventories 912,299 1,300,693 616,323

Commodity derivative assets - current 507,148 320,706 112,089

Other current assets 65,740 106,053 102,755

Total current assets 2,234,300 2,416,409 1,398,189

Other assets:

Goodwill 135,709 135,709 135,709

Other intangible assets, net 127,756 142,940 160,180

Right of use assets, net 61,299 56,031 62,838

Other assets, net 73,678 49,907 48,235

Total other assets 398,442 384,587 406,962

Rail assets leased to others, net 574,585 591,946 592,821

Property, plant and equipment, net 841,762 879,179 906,017

Total assets $4,049,089$4,272,121 $3,303,989



Liabilities and equity

Current liabilities:

Short-term debt $757,271 $403,703 $96,071

Trade and other payables 547,169 957,683 503,892

Customer prepayments and deferred revenue 58,155 180,160 45,734

Commodity derivative liabilities - current 90,366 146,990 65,186

Current maturities of long-term debt 56,582 75,475 68,477

Accrued expenses and other current liabilities181,015 167,671 147,422

Total current liabilities 1,690,558 1,931,682 926,782

Long-term lease liabilities 41,852 37,177 41,061

Long-term debt, less current maturities 866,454 916,540 975,973

Deferred income taxes 173,212 170,147 162,475

Other long-term liabilities 52,049 55,915 65,615

Total liabilities 2,824,125 3,111,461 2,171,906

Total equity 1,224,964 1,160,660 1,132,083

Total liabilities and equity $4,049,089$4,272,121 $3,303,989

The Andersons, Inc. Consolidated Statements of Cash Flows (unaudited)



Six months ended June 30,

2021 2020

Operating Activities

Net income (loss) $59,386 $(31,078)

Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities:

Depreciation and amortization 95,154 93,898

Bad debt (recovery) expense, net (1,156) 6,290

Equity in earnings of affiliates, net of dividends (2,639) (209)

Gain on sales of Rail assets and related leases, net (4,987) (569)

(Gain) loss on sales of assets, net (1,266) 341

Stock-based compensation expense 4,112 5,016

Deferred federal income tax 170 21,761

Inventory write down 2,599 10,922

Other 2,971 2,797

Changes in operating assets and liabilities:

Accounts receivable (58,338) (9,181)

Inventories 390,506 536,951

Commodity derivatives (250,691)14,980

Other assets 35,568 (24,784)

Payables and other accrued expenses (516,883)(481,624)

Net cash (used in) provided by operating activities (245,494)145,511

Investing Activities

Purchases of Rail assets (4,751) (24,649)

Proceeds from sale of Rail assets 15,616 4,637

Purchases of property, plant and equipment and (34,264) (44,644) capitalized software

Proceeds from sale of assets 3,794 1,503

Purchase of investments (4,701) (2,849)

Other 832 -

Net cash used in investing activities (23,474) (66,002)

Financing Activities

Net borrowings (payments) under lines of credit (258,157)(47,564)

Proceeds from issuance of short-term debt 608,250 -

Proceeds from issuance of long-term debt 108,300 165,975

Payments of long-term debt (177,586)(203,835)

Contributions from noncontrolling interest owner 2,940 4,409

Distributions to noncontrolling interest owner (25) (10,298)

Payments of debt issuance costs (2,059) (250)

Dividends paid (11,677) (11,469)

Other (2,436) (2,036)

Net cash provided by (used in) financing activities 267,550 (105,068)

Effect of exchange rates on cash and cash equivalents(167) 675

Decrease in cash and cash equivalents (1,585) (24,884)



Cash and cash equivalents at beginning of period 29,123 54,895

Cash and cash equivalents at end of period $27,538 $30,011

The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited)



Three months ended Six months ended June June 30, 30,

(in thousands, except per share data) 2021 2020 2021 2020

Net income (loss) attributable to The Andersons, Inc. $43,499$30,439$58,606$(7,222)

Items impacting other income, net of tax:

Transaction related stock compensation 274 1,017 757 2,348

Severance costs - 2,341 - 2,341

Income tax impact of adjustments (a) (68) (4,541) (189) (11,451)

Total adjusting items, net of tax 206 (1,183) 568 (6,762)

Adjusted net income (loss) attributable to The Andersons, Inc. $43,705$29,256$59,174$(13,984)



Diluted earnings (loss) attributable to The Andersons, Inc. common$1.30 $0.92 $1.74 $(0.22) shareholders



Impact on diluted earnings (loss) per share $0.01 $(0.04)$0.02 $(0.21)

Adjusted diluted earnings (loss) per share $1.31 $0.88 $1.76 $(0.43)



(a) Prior year income tax adjustments include $(3.7) million and $(10.3) million due to CARES Act benefits for the quarter ended June 30, 2020 and year to date June 30, 2020, respectively.





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





The Andersons, Inc. Segment Data (unaudited)



(in thousands) Trade Ethanol Plant NutrientRail Other Total

Three months ended June 30, 2021

Sales and merchandising revenues $2,297,869$616,527 $ 321,409 $37,921$- $3,273,726

Gross profit 77,831 34,716 50,860 10,637 - 174,044

Operating, administrative and general expenses 61,514 6,577 26,568 4,416 10,901 109,976

Other income, net 4,067 38 849 237 116 5,307

Income (loss) before income taxes 13,777 26,156 23,995 3,064 (10,226) 56,766

Income attributable to the noncontrolling interests - 2,625 - - - 2,625

Income (loss) before income taxes attributable to $13,777 $23,531 $ 23,995 $3,064 $(10,226)$54,141 The Andersons, Inc. (a)

Adjustments to income (loss) before income taxes (b)274 - - - - 274

Adjusted income (loss) before income taxes $14,051 $23,531 $ 23,995 $3,064 $(10,226)$54,415 attributable to The Andersons, Inc. (a)



Three months ended June 30, 2020

Sales and merchandising revenues $1,351,168$223,745 $ 279,825 $35,442$- $1,890,180

Gross profit 59,382 (2,599) 38,765 10,718 - 106,266

Operating, administrative and general expenses 54,998 5,506 18,281 5,184 6,167 90,136

Other income, net 986 466 386 905 707 3,450

Income (loss) before income taxes 393 (9,539) 19,407 2,606 (5,035) 7,832

Loss attributable to the noncontrolling interests - (10,407) - - - (10,407)

Income (loss) before income taxes attributable to $393 $868 $ 19,407 $2,606 $(5,035) $18,239 The Andersons, Inc. (a)

Adjustments to income (loss) before income taxes (b)1,017 - - - 2,341 3,358

Adjusted income (loss) before income taxes $1,410 $868 $ 19,407 $2,606 $(2,694) $21,597 attributable to The Andersons, Inc. (a)

(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 NutrientRail Other Total

Six months ended June 30, 2021

Sales and merchandising revenues $4,280,377$1,059,486$ 490,661 $78,931$- $5,909,455

Gross profit 150,388 43,199 83,261 19,908 - 296,756

Operating, administrative and general expenses 118,445 13,233 49,967 7,290 20,913 209,848

Other income, net 7,553 1,365 1,436 1,911 584 12,849

Income (loss) before income taxes 27,632 27,237 32,518 7,955 (19,569) 75,773

Income attributable to the noncontrolling interests - 780 - - - 780

Income (loss) before income taxes attributable to $27,632 $26,457 $ 32,518 $7,955 $(19,569)$74,993 The Andersons, Inc. (a)

Adjustments to income (loss) before income taxes (b)757 - - - - 757

Adjusted income (loss) before income taxes $28,389 $26,457 $ 32,518 $7,955 $(19,569)$75,750 attributable to The Andersons, Inc. (a)



Six months ended June 30, 2020

Sales and merchandising revenues $2,729,209$536,784 $ 404,738 $72,555$- $3,743,286

Gross profit 121,848 (31,998) 59,129 20,417 - 169,396

Operating, administrative and general expenses 123,153 11,621 38,022 10,443 11,957 195,196

Other income, net 3,750 912 356 1,955 1,290 8,263

Income (loss) before income taxes (9,591) (46,964) 18,215 3,613 (10,015) (44,742)

Loss attributable to the noncontrolling interests - (23,856) - - - (23,856)

Income (loss) before income taxes attributable to $(9,591) $(23,108) $ 18,215 $3,613 $(10,015)$(20,886) The Andersons, Inc. (a)

Adjustments to income (loss) before income taxes (b)2,348 - - - 2,341 4,689

Adjusted income (loss) before income taxes $(7,243) $(23,108) $ 18,215 $3,613 $(7,674) $(16,197) attributable to The Andersons, Inc. (a)

(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. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) A non-GAAP financial measure (unaudited)



(in thousands) Trade Ethanol Plant Rail Other Total Nutrient

Three months ended June 30, 2021

Net income (loss) $13,777 $26,156 $23,995 $3,064 $(20,868)$46,124

Interest expense (income) 7,452 2,021 1,146 3,394 (559) 13,454

Tax provision (benefit) - - - - 10,642 10,642

Depreciation and amortization 11,155 18,983 6,456 8,701 2,355 47,650

EBITDA 32,384 47,160 31,597 15,159 (8,430) 117,870

Adjusting items impacting EBITDA:

Transaction related stock compensation274 - - - - 274

Total adjusting items 274 - - - - 274

Adjusted EBITDA $32,658 $47,160 $31,597 $15,159$(8,430) $118,144



Three months ended June 30, 2020

Net income (loss) $393 $(9,539) $19,407 $2,606 $7,165 $20,032

Interest expense (income) 5,056 1,900 1,463 3,833 (425) 11,827

Tax provision (benefit) - - - - (12,200) (12,200)

Depreciation and amortization 11,055 17,952 6,364 8,869 2,757 46,997

EBITDA 16,504 10,313 27,234 15,308 (2,703) 66,656

Adjusting items impacting EBITDA:

Transaction related stock compensation1,017 - - - - 1,017

Severance Costs - - - - 2,341 2,341

Total adjusting items 1,017 - - - 2,341 3,358

Adjusted EBITDA $17,521 $10,313 $27,234 $15,308$(362) $70,014





(in thousands) Trade Ethanol Plant Rail Other Total Nutrient

Six months ended June 30, 2021

Net income (loss) $27,632 $27,237 $32,518 $7,955 $(35,956)$59,386

Interest expense (income) 14,503 4,094 2,212 6,574 (760) 26,623

Tax provision (benefit) - - - - 16,387 16,387

Depreciation and amortization 22,280 37,797 12,837 17,588 4,652 95,154

EBITDA 64,415 69,128 47,567 32,117 (15,677) 197,550

Adjusting items impacting EBITDA:

Transaction related stock compensation757 - - - - 757

Total adjusting items 757 - - - - 757

Adjusted EBITDA $65,172 $69,128 $47,567 $32,117$(15,677)$198,307



Six months ended June 30, 2020

Net income (loss) $(9,591)$(46,964)$18,215 $3,613 $3,649 $(31,078)

Interest expense (income) 12,245 4,257 3,248 8,316 (652) 27,414

Tax provision (benefit) - - - - (13,664) (13,664)

Depreciation and amortization 22,399 35,504 12,705 17,788 5,502 93,898

EBITDA 25,053 (7,203) 34,168 29,717 (5,165) 76,570

Adjusting items impacting EBITDA:

Transaction related stock compensation2,348 - - - - 2,348

Severance Costs - - - - 2,341 2,341

Total adjusting items 2,348 - - - 2,341 4,689

Adjusted EBITDA $27,401 $(7,203) $34,168 $29,717$(2,824) $81,259

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



Three Months Ended, Twelve months ended(in thousands) September December March 31, June 30, June 30, 2021 30, 2020 31, 2020 2021 2021

Net income (loss) $2,215 $14,649 $13,262 $46,124 $ 76,250

Interest expense (income) 10,569 13,292 13,169 13,454 50,484

Tax provision (benefit) (4,714) 8,119 5,745 10,642 19,792

Depreciation and amortization 47,269 47,471 47,504 47,650 189,894

EBITDA 55,339 83,531 79,680 117,870 336,420

Adjusting items impacting EBITDA:

Transaction related stock compensation912 946 483 274 2,615

Severance Costs 3,222 528 - - 3,750

Total adjusting items 4,134 1,474 483 274 6,365

Adjusted EBITDA $59,473 $85,005 $80,163 $118,144$ 342,785



Three Months Ended, Twelve months ended September December March 31, June 30, June 30, 2020 30, 2019 31, 2019 2020 2020

Net income (loss) $(5,870) $5,667 $(51,111)$20,032 $ (31,282)

Interest expense (income) 13,975 14,078 15,587 11,827 55,467

Tax provision (benefit) (7,212) 14,708 (1,464) (12,200) (6,168)

Depreciation and amortization 34,250 47,770 46,898 46,997 175,915

EBITDA 35,143 82,223 9,910 66,656 193,932

Adjusting items impacting EBITDA:

Acquisition costs (23) 2,158 - - 2,135

Transaction related stock compensation2,577 1,998 1,331 1,017 6,923

Asset impairments including equity - 43,097 - - 43,097 method investments

Loss from remeasurement of equity - (36,287) - - (36,287) method investment

Severance Costs - - - 2,341 2,341

Gain on sales of assets - (8,646) - - (8,646)

Total adjusting items 2,554 2,320 1,331 3,358 9,563

Adjusted EBITDA $37,697 $84,543 $11,241 $70,014 $ 203,495



The Andersons, Inc. Cash from Operations Before Working Capital Changes A non-GAAP financial measure (unaudited)



Three months ended June 30,Six months ended June 30,

(in thousands, except per share data) 2021 2020 2021 2020

Cash provided by (used in) operating activities $ 200,233 $373,941 $ (245,494)$ 145,511

Changes in operating assets and liabilities

Accounts receivable (24,862) 2,556 (58,338) (9,181)

Inventories 385,499 414,628 390,506 536,951

Commodity derivatives (197,396) 13,749 (250,691) 14,980

Other assets 18,828 (13,897) 35,568 (24,784)

Payables and other accrued expenses (74,962) (119,015) (516,883) (481,624)

Total changes in operating assets and liabilities 107,107 298,021 (399,838) 36,342

Less: changes in CARES Act tax refund receivable - (14,147) 27,697 (35,694)

Cash from operations before working capital changes$ 93,126 $61,773 $ 182,041 $ 73,475





Cash from operations before working capital changes is defined as cash providedby (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.

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SOURCE The Andersons, Inc.