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August 2, 20220000821026false00008210262022-08-022022-08-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________
FORM 8-K
______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 2, 2022
__________________________________________
ande-20220802_g1.jpg
The Andersons, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Ohio 000-20557 34-1562374
(State of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.)
1947 Briarfield Boulevard
Maumee, Ohio 43537
(Address of principal executive offices) (Zip Code)

(419) 893-5050
(Registrant’s telephone number, including area code)
__________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[☐] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[☐] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[☐] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[☐] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
__________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:   Trading Symbol   Name of each exchange on which registered:
Common stock, $0.00 par value, $0.01 stated value   ANDE   The NASDAQ Stock Market LLC
__________________________________________
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
[☐] Emerging growth company
[☐] If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.

The Andersons, Inc. issued a press release announcing its second quarter 2022 earnings. This press release is attached as exhibit 99.1 to this filing.

Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
Exhibit No. Description
99.1
104 Inline XBRL for the cover page of this Current Report on Form 8-K



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
The Andersons, Inc.
August 2, 2022 By: /s/ Brian A. Valentine
Brian A. Valentine
Executive Vice President
and Chief Financial Officer


EX-99.1 2 q22022ex-99pressrelease.htm EX-99.1 Document
Exhibit 99.1
ande75.jpg NEWS RELEASE

The Andersons, Inc. Reports All-Time Record Quarterly Results
MAUMEE, OHIO, August 2, 2022 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the second quarter ended June 30, 2022.

Second Quarter Highlights:

•Company reported net income from continuing operations attributable to The Andersons of $80.5 million, or $2.34 per diluted share, and adjusted net income of $82.2 million or $2.39 per diluted share
•Adjusted EBITDA from continuing operations was $169.3 million for the quarter
•Trailing twelve months adjusted EBITDA is $412.0 million
•Renewables produced record pretax income attributable to The Andersons of $45.9 million
•Plant Nutrient had its second-best quarter ever, generating pretax income of $38.3 million
•Trade reported strong adjusted pretax income of $24.4 million

"I'm thrilled with the outstanding performance in this second quarter. The Renewables team nearly doubled last year's already strong performance, showing good yields and higher crush margins in our ethanol plants. Within Plant Nutrient, good inventory position management and high fertilizer prices led to higher margins and strong profitability," said President and CEO Pat Bowe. "In Trade, we entered the quarter with good basis ownership positions and as expected, we benefited from basis improvement during the quarter. In addition, we had very strong feed ingredients merchandising results in several of our locations. Global ag markets remain volatile creating opportunities and our teams continue to execute well and remain focused on customer needs and operational excellence." "Our businesses continue to generate strong operating cash flows and we remain disciplined in our approach to capital spending decisions,” said Executive Vice President and CFO Brian Valentine.



$ in millions, except per share amounts
Q2 2022 Q2 2021 Variance
YTD 2022
YTD 2021
 Variance
Pretax Income Attributable to the Company1,2
 $ 96.3  $ 51.1  $ 45.2  $ 106.5  $ 67.0  $ 39.5 
Adjusted Pretax Income (Loss) Attributable to the Company1,2
 97.0  51.4  45.6  107.2  67.8  39.4 
     Trade1
 24.4  14.1  10.3  28.0  28.4  (0.4)
     Renewables 45.9  23.5  22.4  51.4  26.5  24.9 
     Plant Nutrient 38.3  24.0  14.3  49.1  32.5  16.6 
     Other (11.6) (10.2) (1.4) (21.4) (19.6) (1.8)
Net Income Attributable to the Company2
 80.5  41.4  39.1  86.6  53.0  33.6 
Adjusted Net Income Attributable to the Company1,2
 82.2  41.6  40.6  88.2  53.6  34.6 
Diluted Earnings Per Share (EPS)2
 2.34  1.23  1.11  2.52  1.58  0.94 
Adjusted Diluted EPS1,2
 2.39  1.24  1.15  2.57  1.60  0.97 
EBITDA1,2
 168.6  102.7  65.9  224.5  165.4  59.1 
Adjusted EBITDA1,2
 $ 169.3  $ 103.0  $ 66.3  $ 225.2  $ 166.2  $ 59.0 
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. 2 Measure represents only continuing operations of the Company.

Cash, Liquidity and Long-Term Debt Management

“We are well below our goal of long-term debt to EBITDA of less than 2.5 times, ending the quarter at 1.5 times, and are well-positioned to fund strategic growth projects with appropriate returns."

The company generated $134.6 million and $93.1 million in cash from operations before working capital changes during the second quarters of 2022 and 2021, respectively. Working capital remains high, primarily due to high commodity prices that impact the value of inventory and accounts receivable.

Second Quarter Segment Overview


Trade Results Improve Significantly; Year-to-Date Results Comparable to 2021

The Trade segment recorded pretax income and adjusted pretax income of $23.7 million and $24.4 million, respectively, for the quarter compared to adjusted pretax income of $14.1 million in the second quarter of 2021. With some reduction in commodity prices from Q1 highs, the segment benefited from basis appreciation and good selling margins for many of its products.

Despite initial delays in planting, crops in key draw areas are better than current USDA national ratings for corn and soybeans. Wheat ownership in our grain elevator assets is again earning space income. Continued merchandising opportunities and strong elevation margins are also expected to continue as global stocks are not projected to recover quickly from the recent global supply disruptions.

Trade’s second quarter adjusted EBITDA was $46.6 million, compared to second quarter 2021 adjusted EBITDA of $32.7 million.




Renewables Generates Record Q2 Earnings of $45.9 million on Strong Margins; Co-Product Values and Merchandising Remain Strong

The Renewables segment reported pretax income attributable to the company of $45.9 million in the second quarter compared to pretax income attributable to the company of $23.5 million realized in the same period in 2021. Included in pretax income attributable to The Andersons is $8.9 million of USDA Biofuels Producer COVID relief funds. Also included in pretax income in the quarter is $24.4 million of positive mark-to-market impact, nearly $18 million of which are reversals of prior mark-to-market losses. This compared to positive mark-to-market impacts of $13.5 million in the second quarter of 2021.

The operating improvement was driven by strong overall production margins. Seasonal demand has been impacted by high gasoline prices, but higher exports have firmed ethanol prices. High corn costs for ethanol production in the western U.S. may negatively impact ethanol production there, while our eastern corn belt production facilities are well-positioned for corn supply.

Renewables had record second quarter EBITDA of $85.7 million in 2022, up $38.5 million from 2021 second quarter EBITDA of $47.2 million.


Plant Nutrient Posts Strong Second Quarter Results

The Plant Nutrient segment posted pretax income of $38.3 million, compared to 2021's pretax income of $24.0 million. As expected, well-positioned inventory and an overall favorable spring planting season led to strong margins that more than offset a volume decrease for our agricultural fertilizers, particularly within our wholesale nutrients, farm centers, and specialty liquids low-salt starters products.

Plant Nutrient’s second quarter EBITDA was $46.8 million compared to 2021 second quarter EBITDA of $31.6 million.


Income Taxes; Corporate

The company recorded income taxes from continuing operations at an effective rate of 13.3% for the quarter due to the tax treatment of derivatives, hedging activities, and non-controlling interests. We now anticipate a full-year effective rate of approximately 18%-21%.


Conference Call

The company will host a webcast on Wednesday, August 3, 2022, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its outlook for the remainder of 2022. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 4313758). It is recommended that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: https://app.webinar.net/NKr9d6xjJv0. Complete the six fields as directed and click "Register." A replay of the call can also be accessed under the heading "Investors" on the company’s refreshed website at www.andersonsinc.com.  




Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, the COVID-19 pandemic, the ongoing economic impacts from the war in Ukraine, and the risk factors set forth from time to time in the company’s filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

Non-GAAP Measures

This release contains non-GAAP financial measures. The company believes that 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

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


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





The Andersons, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three months ended June 30, Six months ended June 30,
(in thousands, except per share data) 2022 2021 2022 2021
Sales and merchandising revenues $ 4,450,617  $ 3,235,805  $ 8,428,571  $ 5,830,524 
Cost of sales and merchandising revenues 4,219,776  3,072,398  8,078,195  5,553,676 
Gross profit 230,841  163,407  350,376  276,848 
Operating, administrative and general expenses 112,559  105,560  214,546  202,558 
Interest expense, net 16,921  10,060  27,780  20,049 
Other income, net:
Equity in earnings (losses) of affiliates, net (6,034) 845  (6,278) 2,639 
Other income, net 22,826  5,070  26,988  10,938 
Income before income taxes from continuing operations 118,153  53,702  128,760  67,818 
Income tax provision from continuing operations 15,753  9,677  19,856  14,038 
Net income from continuing operations 102,400  44,025  108,904  53,780 
Income (loss) from discontinued operations, net of income taxes (739) 2,099  (1,294) 5,606 
Net income 101,661  46,124  107,610  59,386 
Net income attributable to noncontrolling interests 21,856  2,625  22,303  780 
Net income attributable to The Andersons, Inc. $ 79,805  $ 43,499  $ 85,307  $ 58,606 
Earnings per share attributable to The Andersons, Inc. common shareholders:
Basic earnings (loss):
Continuing operations $ 2.38  $ 1.25  $ 2.56  $ 1.60 
Discontinued operations (0.02) 0.06  (0.04) 0.17 
$ 2.36  $ 1.31  $ 2.52  $ 1.77 
Diluted earnings (loss):
Continuing operations $ 2.34  $ 1.23  $ 2.52  $ 1.58 
Discontinued operations (0.02) 0.07  (0.04) 0.17 
$ 2.32  $ 1.30  $ 2.48  $ 1.75 






The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands) June 30, 2022 December 31, 2021 June 30, 2021
Assets
Current assets:
  Cash and cash equivalents $ 86,035  $ 216,444  $ 27,538 
  Accounts receivable, net 1,141,167  835,180  702,869 
  Inventories 1,618,326  1,814,538  904,924 
  Commodity derivative assets – current 638,357  410,813  507,148 
  Current assets held-for-sale 18,627  20,885  28,555 
  Other current assets 70,367  74,468  63,266 
Total current assets 3,572,879  3,372,328  2,234,300 
Other assets:
Goodwill 129,342  129,342  131,542 
Other intangible assets, net 105,222  117,137  125,731 
Right of use assets, net 50,233  52,146  42,330 
Other assets held-for-sale 24,298  43,169  620,745 
Other assets, net 91,758  69,068  70,879 
Total other assets 400,853  410,862  991,227 
Property, plant and equipment, net 763,443  786,029  823,563 
Total assets $ 4,737,175  $ 4,569,219  $ 4,049,090 
 
Liabilities and equity
Current liabilities:
  Short-term debt $ 1,161,428  $ 501,792  $ 757,271 
  Trade and other payables 772,996  1,199,324  543,503 
  Customer prepayments and deferred revenue 184,154  358,119  55,943 
  Commodity derivative liabilities – current 185,903  128,911  90,366 
  Current maturities of long-term debt 53,951  32,256  50,069 
  Current liabilities held-for-sale 7,314  13,379  25,185 
  Accrued expenses and other current liabilities 211,830  230,148  168,221 
Total current liabilities 2,577,576  2,463,929  1,690,558 
Long-term lease liabilities 28,929  31,322  27,134 
Long-term debt, less current maturities 563,447  600,487  837,609 
Deferred income taxes 63,383  71,127  173,212 
Other long-term liabilities held-for-sale 3,113  16,119  43,993 
Other long-term liabilities 83,521  78,531  51,620 
Total liabilities 3,319,969  3,261,515  2,824,126 
Total equity 1,417,206  1,307,704  1,224,964 
Total liabilities and equity $ 4,737,175  $ 4,569,219  $ 4,049,090 




The Andersons, Inc.
Consolidated Statements of Cash Flows
(unaudited)
  Six months ended June 30,
 (in thousands) 2022 2021
Operating Activities
Net income from continuing operations $ 108,904  $ 53,780 
Income (loss) from discontinued operations, net of income taxes (1,294) 5,606 
Net income 107,610  59,386 
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization 67,945  95,154 
Bad debt expense, net 3,069  (1,156)
Equity in (earnings) losses of affiliates, net of dividends 6,278  (2,639)
Gain on sales of assets, net (10,305) (6,253)
Stock-based compensation expense 4,708  4,112 
Deferred federal income tax (13,755) 170 
Other 8,549  5,570 
Changes in operating assets and liabilities:
Accounts receivable (289,196) (58,338)
Inventories 186,685  390,506 
Commodity derivatives (189,090) (250,691)
Other current and non-current assets 5,106  35,568 
Payables and other current and non-current liabilities (609,403) (516,883)
Net cash used in operating activities (721,799) (245,494)
Investing Activities
Purchases of property, plant and equipment and capitalized software (43,472) (34,264)
Proceeds from sale of assets 4,672  3,794 
Purchases of investments (2,105) (4,701)
Purchases of Rail assets (27,276) (4,751)
Proceeds from sale of Rail assets 36,341  15,616 
Other 1,746  832 
Net cash used in investing activities (30,094) (23,474)
Financing Activities
Net receipts (payments) under short-term lines of credit 862,698  (258,157)
Proceeds from issuance of short-term debt 350,000  608,250 
Payments of short-term debt (550,000) — 
Proceeds from issuance of long-term debt —  108,300 
Payments of long-term debt (15,077) (177,586)
Contributions from noncontrolling interest owner 2,450  2,940 
Distributions to noncontrolling interest owner (9,980) (25)
Payments of debt issuance costs (7,802) (2,059)
Dividends paid (12,245) (11,677)
Proceeds from exercises of stock options 5,024  — 
Other (2,955) (2,436)
Net cash provided by financing activities 622,113  267,550 
Effect of exchange rates on cash and cash equivalents (629) (167)
Decrease in cash and cash equivalents (130,409) (1,585)
Cash and cash equivalents at beginning of period 216,444  29,123 
Cash and cash equivalents at end of period $ 86,035  $ 27,538 


The Andersons, Inc.
Adjusted Net Income Attributable to The Andersons, Inc.
A non-GAAP financial measure
(unaudited)
Three months ended June 30, Six months ended June 30,
(in thousands, except per share data) 2022 2021 2022 2021
Net income from continuing operations $ 102,400  $ 44,025  $ 108,904  $ 53,780 
Net income attributable to noncontrolling interests 21,856  2,625  22,303  780 
Net income from continuing operations attributable to The Andersons, Inc. 80,544  41,400  86,601  53,000 
Adjustments:
Gain on sale of frac sand assets (3,762) —  (3,762) — 
Impairment on equity method investment 4,455  —  4,455  — 
Transaction related stock compensation —  274  —  757 
Income tax impact of adjustments 940  (68) 940  (189)
Total adjusting items, net of tax 1,633  206  1,633  568 
Adjusted net income from continuing operations attributable to The Andersons, Inc. $ 82,177  $ 41,606  $ 88,234  $ 53,568 
Diluted earnings per share from continuing operations attributable to The Andersons, Inc. common shareholders $ 2.34  $ 1.23  $ 2.52  $ 1.58 
Impact on diluted earnings per share from continuing operations $ 0.05  $ 0.01  $ 0.05  $ 0.02 
Adjusted diluted earnings per share from continuing operations $ 2.39  $ 1.24  $ 2.57  $ 1.60 


Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. reflects reported net income (loss) from continuing operations available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) from continuing operations per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) from continuing operations per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) from continuing operations per share amount for each specified item.



The Andersons, Inc.
Segment Data
(unaudited)
(in thousands) Trade Renewables Plant Nutrient Other Total
Three months ended June 30, 2022
Sales and merchandising revenues $ 3,097,767  $ 882,567  $ 470,283  $ —  $ 4,450,617 
Gross profit 101,994  59,888  68,959  —  230,841 
Operating, administrative and general expenses
 62,977  8,590  29,591  11,401  112,559 
Other income (loss), net 3,983  18,490  866  (513) 22,826 
Income (loss) before income taxes from continuing operations 23,666  67,776  38,311  (11,600) 118,153 
Income (loss) attributable to noncontrolling interests —  21,856  —  —  21,856 
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 23,666  $ 45,920  $ 38,311  $ (11,600) $ 96,297 
Adjustments to income (loss) before income taxes from continuing operations (b) 693  —  —  —  693 
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 24,359  $ 45,920  $ 38,311  $ (11,600) $ 96,990 
Three months ended June 30, 2021
Sales and merchandising revenues $ 2,297,869  $ 616,527  $ 321,409  $ —  $ 3,235,805 
Gross profit 77,831  34,716  50,860  —  163,407 
Operating, administrative and general expenses 61,514  6,577  26,568  10,901  105,560 
Other income (loss), net 4,067  38  849  116  5,070 
Income (loss) before income taxes from continuing operations 13,777  26,156  23,995  (10,226) 53,702 
Income (loss) attributable to noncontrolling interests —  2,625  —  —  2,625 
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 13,777  $ 23,531  $ 23,995  $ (10,226) $ 51,077 
Adjustments to income (loss) before income taxes from continuing operations (b) 274  —  —  —  274 
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 14,051  $ 23,531  $ 23,995  $ (10,226) $ 51,351 
(a) Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.
(b) Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.




The Andersons, Inc.
Segment Data (continued)
(unaudited)
(in thousands) Trade Renewables Plant Nutrient Other Total
Six months ended June 30, 2022
Sales and merchandising revenues $ 6,182,448  $ 1,565,798  $ 680,325  $ —  $ 8,428,571 
Gross profit 169,613  75,079  105,684  —  350,376 
Operating, administrative and general expenses 122,520  16,480  54,916  20,630  214,546 
Other income (loss), net 8,007  18,918  1,670  (1,607) 26,988 
Income (loss) before income taxes from continuing operations 27,335  73,738  49,054  (21,367) 128,760 
Income (loss) attributable to noncontrolling interests —  22,303  —  —  22,303 
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 27,335  $ 51,435  $ 49,054  $ (21,367) $ 106,457 
Adjustments to income (loss) before income taxes from continuing operations (b) 693  —  —  —  693 
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 28,028  $ 51,435  $ 49,054  $ (21,367) $ 107,150 
Six months ended June 30, 2021
Sales and merchandising revenues $ 4,280,377  $ 1,059,486  $ 490,661  $ —  $ 5,830,524 
Gross profit 150,388  43,199  83,261  —  276,848 
Operating, administrative and general expenses 118,445  13,233  49,967  20,913  202,558 
Other income (loss), net 7,553  1,365  1,436  584  10,938 
Income (loss) before income taxes from continuing operations 27,632  27,237  32,518  (19,569) 67,818 
Income (loss) attributable to noncontrolling interests —  780  —  —  780 
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 27,632  $ 26,457  $ 32,518  $ (19,569) $ 67,038 
Adjustments to income (loss) before income taxes from continuing operations (b) 757  —  —  —  757 
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) $ 28,389  $ 26,457  $ 32,518  $ (19,569) $ 67,795 
(a) Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.
(b) Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table.




The Andersons, Inc.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
Continuing Operations Discontinued Operations Total Company
(in thousands) Trade Renewables  Plant Nutrient  Other  Total Rail
Three months ended June 30, 2022
Net income (loss) $ 23,666  $ 67,776  $ 38,311  $ (27,353) $ 102,400  $ (739) $ 101,661 
Interest expense (income) 13,300  2,012  1,923  (314) 16,921  —  16,921 
Tax provision —  —  —  15,753  15,753  2,051  17,804 
Depreciation and amortization 8,914  15,875  6,595  2,183  33,567  —  33,567 
EBITDA 45,880  85,663  46,829  (9,731) 168,641  1,312  169,953 
Adjusting items impacting EBITDA:
Gain on sale of frac sand assets (3,762) —  —  —  (3,762) —  (3,762)
Impairment on equity method investment 4,455  —  —  —  4,455  —  4,455 
Total adjusting items 693  —  —  —  693  —  693 
Adjusted EBITDA $ 46,573  $ 85,663  $ 46,829  $ (9,731) $ 169,334  $ 1,312  $ 170,646 
Three months ended June 30, 2021
Net income (loss) $ 13,777  $ 26,156  $ 23,995  $ (19,903) $ 44,025  $ 2,099  $ 46,124 
Interest expense (income) 7,452  2,021  1,146  (559) 10,060  3,394  13,454 
Tax provision —  —  —  9,677  9,677  965  10,642 
Depreciation and amortization 11,155  18,983  6,456  2,355  38,949  8,701  47,650 
EBITDA 32,384  47,160  31,597  (8,430) 102,711  15,159  117,870 
Adjusting items impacting EBITDA:
Transaction related stock compensation 274  —  —  —  274  —  274 
Total adjusting items 274  —  —  —  274  —  274 
Adjusted EBITDA $ 32,658  $ 47,160  $ 31,597  $ (8,430) $ 102,985  $ 15,159  $ 118,144 



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 Renewables Plant Nutrient Other Total Rail
Six months ended June 30, 2022
Net income (loss) $ 27,335  $ 73,738  $ 49,054  $ (41,223) $ 108,904  $ (1,294) $ 107,610 
Interest expense (income) 21,487  3,779  3,384  (870) 27,780  —  27,780 
Tax provision —  —  —  19,856  19,856  3,344  23,200 
Depreciation and amortization 17,888  32,514  13,174  4,368  67,944  —  67,944 
EBITDA 66,710  110,031  65,612  (17,869) 224,484  2,050  226,534 
Adjusting items impacting EBITDA:
Gain on sale of frac sand assets (3,762) —  —  —  (3,762) —  (3,762)
Impairment on equity method investment 4,455  —  —  —  4,455  —  4,455 
Total adjusting items 693  —  —  —  693  —  693 
Adjusted EBITDA $ 67,403  $ 110,031  $ 65,612  $ (17,869) $ 225,177  $ 2,050  $ 227,227 
Six months ended June 30, 2021
Net income (loss) $ 27,632  $ 27,237  $ 32,518  $ (33,607) $ 53,780  $ 5,606  $ 59,386 
Interest expense (income) 14,503  4,094  2,212  (760) 20,049  6,574  26,623 
Tax provision —  —  —  14,038  14,038  2,349  16,387 
Depreciation and amortization 22,280  37,797  12,837  4,652  77,566  17,588  95,154 
EBITDA 64,415  69,128  47,567  (15,677) 165,433  32,117  197,550 
Adjusting items impacting EBITDA:
Transaction related stock compensation 757  —  —  —  757  —  757 
Total adjusting items 757  —  —  —  757  —  757 
Adjusted EBITDA $ 65,172  $ 69,128  $ 47,567  $ (15,677) $ 166,190  $ 32,117  $ 198,307 




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

Three Months Ended,
 Twelve months ended June 30, 2022
(in thousands) September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022
Net income from continuing operations $ 12,290  $ 65,473  $ 6,504  $ 102,400  $ 186,667 
Interest expense 8,799  8,444  10,859  16,921  45,023 
Tax provision 4,027  11,163  4,103  15,753  35,046 
Depreciation and amortization 42,811  36,797  34,377  33,567  147,552 
EBITDA 67,927  121,877  55,843  168,641  414,288 
Adjusting items impacting EBITDA:
Transaction related stock compensation 243  274  —  —  517 
Gain on sale of a business (14,619) —  —  —  (14,619)
Loss from cost method investment 2,784  —  —  —  2,784 
Asset impairment including equity method investments —  8,321  —  4,455  12,776 
Gain on sale of frac sand assets —  —  —  (3,762) (3,762)
Total adjusting items (11,592) 8,595  —  693  (2,304)
Adjusted EBITDA $ 56,335  $ 130,472  $ 55,843  $ 169,334  $ 411,984 
Three Months Ended,
Twelve months ended June 30, 2021
September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021
Net income from continuing operations $ 1,788  $ 15,917  $ 9,755  $ 44,025  $ 71,485 
Interest expense 6,853  7,833  9,989  10,060  34,735 
Tax provision (benefit) (4,148) 7,718  4,361  9,677  17,608 
Depreciation and amortization 38,387  38,568  38,617  38,949  154,521 
EBITDA 42,880  70,036  62,722  102,711  278,349 
Adjusting items impacting EBITDA:
Transaction related stock compensation 912  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 $ 47,014  $ 71,510  $ 63,205  $ 102,985  $ 284,714 




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) 2022 2021 2022 2021
Cash used in operating activities $ 353,199  $ 200,233  $ (721,799) $ (245,494)
Changes in operating assets and liabilities
Accounts receivable (74,184) (24,862) (289,196) (58,338)
Inventories 323,505  385,499  186,685  390,506 
Commodity derivatives 88,671  (197,396) (189,090) (250,691)
Other current and non-current assets 43,916  18,828  5,106  35,568 
Payables and other current and non-current liabilities (163,307) (74,962) (609,403) (516,883)
Total changes in operating assets and liabilities 218,601  107,107  (895,898) (399,838)
Adjusting items impacting cash from operations before working capital changes:
Changes in CARES Act tax refund receivable —  —  —  27,697 
Cash from operations before working capital changes $ 134,598  $ 93,126  $ 174,099  $ 182,041 


Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company’s performance as it provides investors additional information about the company’s operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.