PR Newswire | Nov 2, 2021 04:06PM EDT

11/02 15:05 CDT

The Andersons, Inc. Reports Third Quarter Results; Best Q3 since 2014 MAUMEE, Ohio, Nov. 2, 2021

MAUMEE, Ohio, Nov. 2, 2021 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the third quarter ended September 30, 2021.

Third Quarter Highlights:

* Company reported net income attributable to The Andersons from continuing operations of $13.9 million, or $0.41 per diluted share, and adjusted net income from continuing operations of $5.2 million, or $0.15 per diluted share * Adjusted EBITDA from continuing operations was $56.3 million for the quarter, an increase of $9.3 million, or 20%, year over year; trailing twelve month adjusted EBITDA from continuing operations of $294.0 million * Trade reported all-time record earnings with pretax income of $42.0 million and adjusted pretax income of $27.6 million on continued merchandising opportunities and strong elevation margins * Completed strategic sale of Rail leasing assets and used proceeds to reduce debt

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

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

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

$ in millions, except per share amounts

Q3 2021Q3 2020 VarianceYTD 2021YTD 2020 Variance

Pretax Income (Loss) Attributable to the Company^1,2 $17.9$(5.6)$23.5 $85.0 $(30.1)$115.1

Adjusted Pretax Income (Loss) Attributable to the Company^1,26.3 (1.5) 7.8 74.1 (21.3) 95.4

Trade^1 27.6 6.9 20.7 56.0 (0.4) 56.4

Ethanol (3.6) 1.1 (4.7) 22.8 (22.0) 44.8

Plant Nutrient (5.8) (5.4) (0.4) 26.7 12.8 13.9

Other^1 (11.8)(4.1) (7.7) (31.4) (11.8) (19.6)

Net Income (Loss) Attributable to the Company^2 13.9 (1.5) 15.4 66.9 (11.5) 78.4

Adjusted Net Income (Loss) Attributable to the Company^1,2 5.2 (2.9) 8.1 58.8 (19.6) 78.4

Diluted Earnings Per Share (EPS)^2 0.41 (0.04) 0.45 1.99 (0.35) 2.34

Adjusted Diluted EPS^1,2 0.15 (0.08) 0.23 1.75 (0.60) 2.35

EBITDA^1,2 67.9 42.9 25.0 233.4 89.7 143.7

Adjusted EBITDA^1,2 $56.3$47.0 $9.3 $222.5$98.6 $123.9

^1 Non-GAAP financial measures; see appendix for explanations andreconciliations. ^2 Measure represents only continuing operations of theCompany.

Liquidity and Cash Management

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

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

Third Quarter Segment Overview

Record Trade Results Driven by Elevation Margins and Merchandising Income Result in $20.7 Million Year-Over-Year Improvement

The Trade segment had record adjusted pretax income of $27.6 million for the quarter compared to adjusted pretax income of $6.9 million in the third quarter of 2020. The difference in reported and adjusted pretax income in both periods was attributable to stock compensation expense associated with the 2019 acquisition of Lansing Trade Group, as well as a gain on the sale of a grain asset location in 2021.

Strong elevation margins in Idaho and Louisiana grain assets led the significant quarter-over-quarter improvement. In addition, new merchandising businesses have added incremental gross profit and earnings. Good overall positioning, risk management, and execution has contributed to year-over-year improved performance.

Continued merchandising opportunities are expected throughout the fourth quarter. The harvest outlook remains strong despite delays caused by recent precipitation. A good third quarter wheat harvest accumulated more bushels than expected and an opportunity for storage income with carry in the wheat market. Relatively low stocks are expected to continue past harvest along with higher prices and strong elevation margins are expected to continue into 2022.

Trade's third quarter adjusted EBITDA was $43.9 million, nearly double the third quarter 2020 adjusted EBITDA of $22.3 million.

Ethanol Records a Pretax Loss of $3.6 Million on Higher Corn Basis; Co-Product Values and Trading Remain Strong

The Ethanol segment reported a pretax loss attributable to the company of $3.6 million in the third quarter compared to the pretax income attributable to the company of $1.1 million it realized in the same period in 2020.

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

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the trading business. Hedges on forward ethanol production are in place for a portion of expected production.

Ethanol recorded EBITDA of $19.2 million in the third quarter of 2021, down $5.2 million from 2020 third quarter EBITDA of $24.4 million.

Plant Nutrient Results Nominally Lower than 2020

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

Income Taxes; Corporate

The company has recorded income taxes from continuing operations at an effective rate of 24.7% for the third quarter and anticipates a full year effective rate of approximately 22%-25%.

Increases in corporate expense are due to variable incentive compensation and stranded costs from the sale of our Rail leasing business.

Conference Call

The company will host a webcast on Wednesday, November 3, 2021, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its updated outlook for 2021 and preliminary views for 2022. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 5175137). 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/k9hpyhef. 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) from continuing operations, pretax income (loss) attributable to the company from continuing operations, adjusted pretax income (loss) attributable to the company from continuing operations, adjusted net income attributable to the company from continuing operations, adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to net income from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.

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 merchandising, biofuels, and plant nutrient 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 Nine months ended September 30, September 30,

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

Sales and merchandising revenues $2,998,824$1,885,586$8,829,348$5,556,317

Cost of sales and merchandising revenues 2,876,989 1,792,349 8,430,665 5,314,101

Gross profit 121,835 93,237 398,683 242,216

Operating, administrative and general expenses 110,275 92,610 312,833 277,363

Interest expense, net 8,799 6,853 28,848 25,951

Other income, net:

Equity in earnings (losses) of affiliates, net (250) 20 2,389 228

Other income, net 13,806 3,846 24,743 10,154

Income (loss) before income taxes from continuing operations 16,317 (2,360) 84,134 (50,716)

Income tax provision (benefit) from continuing operations 4,027 (4,148) 18,065 (18,628)

Net income (loss) from continuing operations 12,290 1,788 66,069 (32,088)

Income (loss) from discontinued operations, net of income taxes1,846 427 7,453 3,224

Net income (loss) 14,136 2,215 73,522 (28,864)

Net income (loss) attributable to noncontrolling interests (1,602) 3,273 (822) (20,583)

Net income (loss) attributable to The Andersons, Inc. $15,738 $(1,058) $74,344 $(8,281)



Earnings (loss) per share attributable to The Andersons, Inc. common shareholders:

Basic earnings (loss):

Continuing operations $0.42 $(0.04) $2.01 $(0.35)

Discontinued operations 0.06 0.01 0.22 0.10

$0.48 $(0.03) $2.23 $(0.25)

Diluted earnings (loss):

Continuing operations $0.41 $(0.04) $1.99 $(0.35)

Discontinued operations 0.05 0.01 0.22 0.10

$0.46 $(0.03) $2.21 $(0.25)

The Andersons, Inc.

Condensed Consolidated Balance Sheets

(unaudited)



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

Assets

Current assets:

Cash and cash equivalents $ 216,874 $29,123 $ 13,693

Accounts receivable, net 735,349 641,326 509,964

Inventories 1,017,804 1,293,066 747,588

Commodity derivative assets - current 409,647 320,706 140,065

Current assets held-for-sale 26,561 32,659 45,132

Other current assets 92,159 99,529 83,807

Total current assets 2,498,394 2,416,409 1,540,249

Other assets:

Goodwill 129,342 131,542 131,542

Other intangible assets, net 118,690 140,084 148,846

Right of use assets, net 50,270 33,387 33,547

Other assets held-for-sale 38,863 643,474 642,538

Other assets, net 74,923 46,914 44,738

Total other assets 412,088 995,401 1,001,211

Property, plant and equipment, net 797,660 860,311 870,151

Total assets $ 3,708,142$4,272,121$ 3,411,611



Liabilities and equity

Current liabilities:

Short-term debt $ 281,199 $403,703 $ 100,405

Trade and other payables 825,923 954,809 635,206

Customer prepayments and deferred revenue 147,225 178,226 47,906

Commodity derivative liabilities - current 78,702 146,990 79,159

Current maturities of long-term debt 106,255 69,366 62,499

Accrued taxes 97,215 17,465 15,178

Current liabilities held-for-sale 13,427 25,277 27,996

Accrued expenses and other current liabilities173,215 135,846 128,187

Total current liabilities 1,723,161 1,931,682 1,096,536

Long-term lease liabilities 31,332 19,835 19,216

Long-term debt, less current maturities 542,821 886,453 717,198

Deferred income taxes 79,636 170,147 163,454

Other long-term liabilities held-for-sale 13,592 48,096 221,334

Other long-term liabilities 81,587 55,248 56,646

Total liabilities 2,472,129 3,111,461 2,274,384

Total equity 1,236,013 1,160,660 1,137,227

Total liabilities and equity $ 3,708,142$4,272,121$ 3,411,611

The Andersons, Inc.

Consolidated Statements of Cash Flows

(unaudited)



Nine months ended September 30,

(in thousands) 2021 2020

Operating Activities

Net income (loss) from continuing operations $ 66,069 $ (32,088)

Income from discontinued operations, net of income taxes 7,453 3,224

Net income (loss) 73,522 (28,864)

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

Depreciation and amortization 142,137 141,167

Bad debt (recovery) expense, net (2,182) 8,049

Equity in earnings of affiliates, net of dividends (2,389) (228)

Gain on sale of business from continuing operations (14,619) -

Loss on sale of business from discontinued operations 1,491 -

Gain on sales of assets, net (6,505) (1,037)

Stock-based compensation expense 6,727 7,742

Deferred federal income tax (93,725) 21,917

Inventory write down 3,399 10,933

Other 7,005 4,141

Changes in operating assets and liabilities:

Accounts receivable (89,902) (1,952)

Inventories 266,865 400,262

Commodity derivatives (158,741) (2,574)

Other assets (3,357) (34,343)

Payables and other accrued expenses (10,659) (329,422)

Net cash provided by operating activities 119,067 195,791

Investing Activities

Purchases of property, plant and equipment and capitalized software(52,730) (59,414)

Proceeds from sale of assets 3,999 8,121

Purchases of investments (5,993) (2,849)

Proceeds from sale of business from continuing operations 18,130 2,467

Proceeds from sale of business from discontinued operations 543,102 -

Purchases of Rail assets (6,039) (26,258)

Proceeds from sale of Rail assets 18,705 7,774

Other 349 -

Net cash provided by (used in) investing activities 519,523 (70,159)

Financing Activities

Net payments under lines of credit (324,279) (44,183)

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

Payments of short-term debt (408,250) -

Proceeds from issuance of long-term debt 186,800 213,906

Payments of long-term debt (485,527) (310,694)

Contributions from noncontrolling interest owner 4,655 6,493

Distributions to noncontrolling interest owner (25) (10,322)

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

Dividends paid (17,503) (17,234)

Other (12,709) (4,143)

Net cash used in financing activities (450,647) (166,427)

Effect of exchange rates on cash and cash equivalents (192) (407)

Increase (decrease) in cash and cash equivalents 187,751 (41,202)

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

Cash and cash equivalents at end of period $ 216,874 $ 13,693

The Andersons, Inc.

Adjusted Net Income Attributable to The Andersons, Inc.

A non-GAAP financial measure

(unaudited)



Three months ended Nine months ended September 30, September 30,

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

Net income (loss) from continuing operations $12,290$1,788 $66,069$(32,088)

Net income (loss) attributable to noncontrolling interests (1,602) 3,273 (822) (20,583)

Net income (loss) from continuing operations attributable to The Andersons, 13,892 (1,485) 66,891 (11,505) Inc.

Items impacting other income, net of tax:

Transaction related stock compensation 243 912 1,000 3,260

Gain on sale of a business (14,619)- (14,619)-

Loss on cost method investment 2,784 - 2,784 -

Severance costs - 3,222 - 5,563

Income tax impact of adjustments (a) 2,898 (5,511) 2,709 (16,962)

Total adjusting items, net of tax (8,694) (1,377) (8,126) (8,139)

Adjusted net income (loss) from continuing operations attributable to The $5,198 $(2,862)$58,765$(19,644)Andersons, Inc.



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



Impact on diluted earnings (loss) per share from continuing operations $(0.26)$(0.04) $(0.24)$(0.25)

Adjusted diluted earnings (loss) from continuing operations per share $0.15 $(0.08) $1.75 $(0.60)

(a) Prior year income tax adjustments include $(4.5) million and $(14.8)million due to CARES Act benefits for the quarter and year ended September 30,2020, respectively.

Adjusted net income (loss) from continuing operations attributable to TheAndersons, Inc. reflects reported net income (loss) from continuing operationsavailable to The Andersons, Inc. common shareholders after the removal ofspecified items described above. Adjusted diluted earnings (loss) fromcontinuing operations per share reflects the fully diluted EPS of TheAndersons, Inc. after removal of the effect on EPS as reported of specifieditems described above. Management believes that Adjusted net income (loss) fromcontinuing operations attributable to The Andersons, Inc. and Adjusted dilutedearnings (loss) from continuing operations per share are useful measures of TheAndersons, Inc. performance as they provide investors additional informationabout the operations of the company allowing better evaluation of underlyingbusiness performance and better comparability to previous periods. Thesenon-GAAP financial measures are not intended to replace or be alternatives toNet income attributable to The Andersons, Inc. and Diluted earningsattributable to The Andersons, Inc. common shareholders as reported, the mostdirectly comparable GAAP financial measures, or any other measures of operatingresults under GAAP. Earnings amounts described above have been divided by thecompany's average number of diluted shares outstanding for each respectiveperiod in order to arrive at an adjusted diluted earnings (loss) fromcontinuing operations per share amount for each specified item.

The Andersons, Inc.

Segment Data

(unaudited)



(in thousands) Trade Ethanol Plant Other Total Nutrient

Three months ended September 30, 2021

Sales and merchandising revenues $2,242,131$614,637$142,056$- $2,998,824

Gross profit 98,196 5,751 17,888 - 121,835

Operating, administrative and general expenses 67,590 10,014 22,883 9,788 110,275

Other income (loss), net 16,886 683 309 (4,072) 13,806

Income (loss) before income taxes from continuing operations 41,999 (5,238) (5,832) (14,612) 16,317

Income (loss) attributable to noncontrolling interests - (1,602) - - (1,602)

Income (loss) before income taxes from continuing operations attributable to $41,999 $(3,636)$(5,832)$(14,612)$17,919 The Andersons, Inc. (a)

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 $27,623 $(3,636)$(5,832)$(11,828)$6,327 attributable to The Andersons, Inc. (a)



Three months ended September 30, 2020

Sales and merchandising revenues $1,432,922$349,957$102,707$- $1,885,586

Gross profit 65,572 11,169 16,496 - 93,237

Operating, administrative and general expenses 58,385 5,650 21,175 7,400 92,610

Other income (loss), net 3,114 553 579 (400) 3,846

Income (loss) before income taxes from continuing operations 5,941 4,421 (5,387) (7,335) (2,360)

Income (loss) attributable to noncontrolling interests - 3,273 - - 3,273

Income (loss) before income taxes from continuing operations attributable to $5,941 $1,148 $(5,387)$(7,335) $(5,633) The Andersons, Inc. (a)

Adjustments to income (loss) before income taxes from continuing operations (b) 912 - - 3,222 4,134

Adjusted income (loss) before income taxes from continuing operations $6,853 $1,148 $(5,387)$(4,113) $(1,499) attributable to The Andersons, Inc. (a)

(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 andlong-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 taxescan be found in the Reconciliation to EBITDA and Adjusted EBITDA table.

The Andersons, Inc.

Segment Data (continued)

(unaudited)





(in thousands) Trade Ethanol Plant Other Total Nutrient

Nine months ended September 30, 2021

Sales and merchandising revenues $6,522,508$1,674,123$632,717$- $8,829,348

Gross profit 248,584 48,950 101,149 - 398,683

Operating, administrative and general expenses 186,035 23,247 72,850 30,701 312,833

Other income (loss), net 24,439 2,048 1,745 (3,489) 24,743

Income (loss) before income taxes from continuing operations 69,631 21,999 26,686 (34,182) 84,134

Income (loss) attributable to noncontrolling interests - (822) - - (822)

Income (loss) before income taxes from continuing operations attributable to $69,631 $22,821 $26,686 $(34,182)$84,956 The Andersons, Inc. (a)

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 $56,012 $22,821 $26,686 $(31,398)$74,121 attributable to The Andersons, Inc. (a)



Nine months ended September 30, 2020

Sales and merchandising revenues $4,162,130$886,742 $507,445$- $5,556,317

Gross profit 187,420 (20,829) 75,625 - 242,216

Operating, administrative and general expenses 181,539 17,271 59,197 19,356 277,363

Other income (loss), net 6,865 1,465 935 889 10,154

Income (loss) before income taxes from continuing operations (3,650) (42,543) 12,828 (17,351) (50,716)

Income (loss) attributable to noncontrolling interests - (20,583) - - (20,583)

Income (loss) before income taxes from continuing operations attributable to $(3,650) $(21,960) $12,828 $(17,351)$(30,133) The Andersons, Inc. (a)

Adjustments to income (loss) before income taxes from continuing operations (b) 3,260 - - 5,563 8,823

Adjusted income (loss) before income taxes from continuing operations $(390) $(21,960) $12,828 $(11,788)$(21,310) attributable to The Andersons, Inc. (a)

(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 andlong-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 taxescan 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 Operations Discontinued Operations Total Company (in thousands) Trade Ethanol Plant Other Total Rail Nutrient

Three months ended September 30, 2021

Net income (loss) $41,999 $(5,238) $(5,832)$(18,639)$12,290 $1,846 $14,136

Interest expense (income) 5,243 1,658 1,146 752 8,799 2,139 10,938

Tax provision (benefit) - - - 4,027 4,027 (2,777) 1,250

Depreciation and amortization 11,037 22,811 6,508 2,455 42,811 4,172 46,983

EBITDA 58,279 19,231 1,822 (11,405) 67,927 5,380 73,307

Adjusting items impacting EBITDA:

Transaction related stock compensation243 - - - 243 - 243

Gain on sale of a business (14,619) - - - (14,619) - (14,619)

Loss on cost method investment - - - 2,784 2,784 - 2,784

Total adjusting items (14,376) - - 2,784 (11,592) - (11,592)

Adjusted EBITDA $43,903 $19,231 $1,822 $(8,621) $56,335 $5,380 $61,715



Three months ended September 30, 2020

Net income (loss) $5,941 $4,421 $(5,387)$(3,187) $1,788 $427 $2,215

Interest expense (income) 4,380 1,651 1,287 (465) 6,853 3,716 10,569

Tax provision (benefit) - - - (4,148) (4,148) (566) (4,714)

Depreciation and amortization 11,079 18,282 6,316 2,710 38,387 8,882 47,269

EBITDA 21,400 24,354 2,216 (5,090) 42,880 12,459 55,339

Adjusting items impacting EBITDA:

Transaction related stock compensation912 - - - 912 - 912

Severance Costs - - - 3,222 3,222 - 3,222

Total adjusting items 912 - - 3,222 4,134 - 4,134

Adjusted EBITDA $22,312 $24,354 $2,216 $(1,868) $47,014 $12,459 $59,473





Continuing Operations Discontinued Operations Total Company (in thousands) Trade Ethanol Plant Other Total Rail Nutrient

Nine months ended September 30, 2021

Net income (loss) $69,631 $21,999 $26,686 $(52,247)$66,069 $7,453 $73,522

Interest expense (income) 19,746 5,752 3,358 (8) 28,848 8,714 37,562

Tax provision (benefit) - - - 18,065 18,065 (428) 17,637

Depreciation and amortization 33,317 60,608 19,345 7,107 120,377 21,760 142,137

EBITDA 122,694 88,359 49,389 (27,083) 233,359 37,499 270,858

Adjusting items impacting EBITDA:

Transaction related stock compensation1,000 - - - 1,000 - 1,000

Gain on sale of a business (14,619) - - - (14,619) - (14,619)

Loss on cost method investment - - - 2,784 2,784 - 2,784

Total adjusting items (13,619) - - 2,784 (10,835) - (10,835)

Adjusted EBITDA $109,075$88,359 $49,389 $(24,299)$222,524 $37,499 $260,023



Nine months ended September 30, 2020

Net income (loss) $(3,650)$(42,543)$12,828 $1,277 $(32,088)$3,224 $(28,864)

Interest expense (income) 16,624 5,908 4,535 (1,116) 25,951 12,032 37,983

Tax provision (benefit) - - - (18,628) (18,628) 250 (18,378)

Depreciation and amortization 33,478 53,786 19,021 8,212 114,497 26,670 141,167

EBITDA 46,452 17,151 36,384 (10,255) 89,732 42,176 131,908

Adjusting items impacting EBITDA:

Transaction related stock compensation3,260 - - - 3,260 - 3,260

Severance Costs - - - 5,563 5,563 - 5,563

Total adjusting items 3,260 - - 5,563 8,823 - 8,823

Adjusted EBITDA $49,712 $17,151 $36,384 $(4,692) $98,555 $42,176 $140,731

The Andersons, Inc.

Trailing Twelve Months of EBITDA and Adjusted EBITDA

A non-GAAP financial measure

(unaudited)



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

Net income (loss) from continuing operations $15,917 $9,755 $44,024 $12,290 $81,986

Interest expense (income) 7,833 9,989 10,060 8,799 36,681

Tax provision (benefit) 7,718 4,361 9,677 4,027 25,783

Depreciation and amortization 38,568 38,617 38,949 42,811 158,945

EBITDA 70,036 62,722 102,710 67,927 303,395

Adjusting items impacting EBITDA:

Transaction related stock compensation 946 483 274 243 1,946

Gain on sale of a business - - - (14,619) (14,619)

Loss from cost method investment - - - 2,784 2,784

Severance Costs 528 - - - 528

Total adjusting items 1,474 483 274 (11,592) (9,361)

Adjusted EBITDA $71,510 $63,205 $102,984$56,335 $294,034



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

Net income (loss) from continuing operations $1,206 $(44,166)$10,290 $1,788 $(30,882)

Interest expense (income) 9,663 11,104 7,994 6,853 35,614

Tax provision (benefit) 13,593 (9,416) (5,064) (4,148) (5,035)

Depreciation and amortization 39,025 37,982 38,128 38,387 153,522

EBITDA 63,487 (4,496) 51,348 42,880 153,219

Adjusting items impacting EBITDA:

Transaction related stock compensation 1,998 1,331 1,017 912 5,258

Acquisition costs 2,158 - - - 2,158

Asset impairments including equity method investments43,097 - - - 43,097

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

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

Severance Costs - - 2,341 3,222 5,563

Total adjusting items 2,320 1,331 3,358 4,134 11,143

Adjusted EBITDA $65,807 $(3,165) $54,706 $47,014 $164,362

The Andersons, Inc.

Cash from Operations Before Working Capital Changes

A non-GAAP financial measure

(unaudited)



Three months ended Nine months ended September 30, September 30,

(in thousands) 2021 2020 2021 2020

Cash provided by (used in) operating activities $364,561$ 50,280$119,067$195,791

Changes in operating assets and liabilities

Accounts receivable (31,564) 7,229 (89,902) (1,952)

Inventories (123,641)(136,689)266,865 400,262

Commodity derivatives 91,950 (17,554) (158,741)(2,574)

Other assets (38,925) (9,559) (3,357) (34,343)

Payables and other accrued expenses 506,224 152,202 (10,659) (329,422)

Total changes in operating assets and liabilities 404,044 (4,371) 4,206 31,971

Adjusting items impacting cash from operations before working capital changes:

Changes in CARES Act tax refund receivable - (1,870) 27,697 (37,564)

Changes in deferred income taxes as a result of the Rail leasing sale 95,097 - 95,097 -

Cash from operations before working capital changes $55,614 $ 52,781$237,655$126,256

Cash from operations before working capital changes is defined as cash providedby (used in) operating activities before the impact of changes in workingcapital within the statement of cash flows. The Company calculates cash fromoperations by eliminating the effect of changes in accounts receivable,inventories, commodity derivatives, other assets, and payables and accruedexpenses from the cash provided by (used in) operating activities. Managementbelieves that cash from operations before working capital changes is a usefulmeasure of the company's performance as it provides investors additionalinformation about the company's operations allowing better evaluation ofunderlying business performance and improved comparability to prior periods.Cash from operations before working capital changes is a non-GAAP financialmeasure and is not intended to replace or be an alternative to cash provided by(used in) operating activities, the most directly comparable GAAP financialmeasure.

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SOURCE The Andersons, Inc.