MAUMEE, OHIO, February 14, 2023 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter ended December 31, 2022.

•Company reported net income from continuing operations attributable to The Andersons of $15 million, or $0.44 per diluted share, and adjusted net income from continuing operations of $34 million, or $0.98 per diluted share

•EBITDA from continuing operations was $79 million for the quarter, and adjusted EBITDA from continuing operations was $104 million

•Trade reported pretax income of $27 million and record adjusted pretax income of $52 million, driven by strong elevation margins and merchandising

•Renewables reported pretax income of $19 million and pretax income attributable to the company of $13 million on solid plant performance and good merchandising

"We finished the year with strong fourth quarter results, particularly in our Trade segment. Our merchandising teams and grain assets had outstanding results from improving basis after harvest, sales into destinations experiencing crop deficits, storage income and rising propane values. With another record quarter, our Trade business is positioned to execute well in these favorable markets with continuing strong ag fundamentals," said President and CEO Pat Bowe.

"We enjoyed very good results in renewable fuels on solid renewable feedstock values but didn't experience the outsized ethanol margins that occurred in the fourth quarter of 2021 due to supply chain disruptions. The ethanol crush margin outlook is currently challenged but we expect this to improve with seasonal maintenance shutdowns and increased driving demand," added Bowe. "Our Plant Nutrient segment had mixed results with good fall applications and farmer engagement on specialty liquids but more limited early orders of granular fertilizer as buyers are waiting for declining prices to stabilize. With strong farm income, this sets us up well for a higher volume spring planting season although likely at more normalized margins.

Our growth project pipeline remains robust, and we expect to close several transactions and continue making growth investments in 2023." $ in millions, except per share amounts Q4 2022 Q4 2021 Variance YTD 2022 YTD 2021 Variance Pretax Income from Continuing Operations $ 31 $ 77 $ (46) $ 195 $ 161 $ 34 Pretax Income from Continuing Operations Attributable to the Company1 25 44 (19) 159 129 30 Adjusted Pretax Income (Loss) from Continuing Operations Attributable to the Company1 50 53 (3) 184 127 57 Trade1 52 27 25 121 83 38 Renewables1 13 27 (14) 72 49 23 Plant Nutrient 2 16 (14) 39 43 (4) Other1 (16) (17) 1 (48) (48) — Net Income from Continuing Operations Attributable to the Company 15 33 (18) 119 100 19 Adjusted Net Income from Continuing Operations Attributable to the Company1 34 39 (5) 139 98 41 Diluted Earnings Per Share from Continuing Operations (EPS) 0.44 0.95 (0.51) 3.46 2.94 0.52 Adjusted Diluted Earnings Per Share from Continuing Operations1 0.98 1.14 (0.16) 4.05 2.89 1.16 EBITDA from Continuing Operations1 79 122 (43) 386 355 31 Adjusted EBITDA from Continuing Operations1 $ 104 $ 130 $ (26) $ 412 $ 353 $ 59 1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

"Strong operating cash flows continued into the fourth quarter, and we have significantly reduced short term borrowings as much of our grain acquired during harvest include extended payments to producers," said Executive Vice President and CFO Brian Valentine. "We repurchased $5 million in common shares in the quarter. With a strong balance sheet and a long-term debt to EBITDA ratio well below our target of 2.5 times, we are well-positioned to fund good growth projects with appropriate returns."

The company generated $440 million and used $170 million in cash from operating activities for the fourth quarters of 2022 and 2021, respectively, and generated $90 million and $84 million in cash from operations before working capital changes for the same periods, respectively.

Trade recorded pretax income of $27 million and adjusted pretax income of $52 million for the quarter, 50% more than pretax income of $18 million and nearly double adjusted pretax income of $27 million in the fourth quarter of the prior year.

Strong elevation margins in core grain assets and merchandising drove the significant improvement. The quarter over quarter increase reflects rising basis values, storage income, and healthy margins on shipments into grain deficit destinations. Our international merchandising business also continued to perform well in the fourth quarter.

Ag supply chain opportunities are expected to remain very strong in 2023. Continued worldwide demand coupled with supply uncertainty due to the ongoing war in Ukraine and potential weather impacts in global grain production regions, continues to keep commodity prices relatively high and provide ongoing merchandising opportunities.

An adjustment was made for an asset impairment charge of $9 million due to a reorganization of western US grain assets. Earnings were also adjusted for a $16 million charge for insured inventory that was damaged in a late December fire.

Trade’s fourth quarter adjusted EBITDA was $72 million, which is 71% higher than fourth quarter 2021 adjusted EBITDA of $42 million. Full year adjusted EBITDA increased from $151 million in 2021 to a record $199 million in 2022, primarily as a result of improved elevation margins and outstanding merchandising results.

The Renewables segment reported pretax income of $19 million and pretax income attributable to the company of $13 million in the fourth quarter compared to record pretax income of $59 million and pretax income attributable to the company of $27 million in the same period of the prior year. Ethanol board crush margins for the 2022 fourth quarter were down over $0.90/gallon from the very strong fourth quarter of 2021. Renewable diesel feedstock merchandising results improved with the volume merchandised more than double the fourth quarter of 2021.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the merchandising business. Spot ethanol crush margins have declined into 2023 and are expected to seasonally move upward with driving demand. Corn oil demand is expected to remain high and merchandising of low-carbon-intensive renewable feedstocks should remain strong as additional renewable diesel facilities begin operations driving significant growth.

Renewables recorded EBITDA of $36 million in the fourth quarter of 2022, compared to 2021 fourth quarter EBITDA of $78 million. For the full year, Renewables recorded EBITDA of $180 million in 2022, an increase of $14 million from 2021.

Plant Nutrient recorded pretax income of $2 million in the fourth quarter compared to record pretax income of $16 million in the same period of 2021. Falling fertilizer prices have likely shifted some demand from the fourth quarter of 2022 into 2023 as buyers wait for prices to moderate. Strong farmer income and lower prices are expected to drive higher volumes of agricultural fertilizers in the spring season, albeit at more normalized margins.

Plant Nutrient’s current quarter EBITDA was $11 million compared to 2021 fourth quarter EBITDA of $24 million. For the full year, Plant Nutrient recorded EBITDA of $73 million in 2022, comparable to the prior year.

The company will host a webcast on Wednesday, February 15, 2023, at 11 a.m. EST, to discuss its performance and provide its outlook for 2023. To access the call, please dial 888-317-6003 or 412-317-6061 (international toll) and use elite entry number 7095205. 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/OlgR2D825A0 and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company’s website at www.andersonsinc.com. 

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

This release contains non-GAAP financial measures. The company believes that pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations; adjusted net income from continuing operations attributable to the company; adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation, and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to net income from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.

The Andersons, Inc., having been named one of America's Greatest Workplaces for Diversity 2023 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.

Mike Hoelter    

Vice President, Corporate Controller and Investor Relations

Phone: 419-897-6715

E-mail: investorrelations@andersonsinc.com

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1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of the impairment on the equity method investment of $4.5 million for the twelve months ended December 31, 2022, which had no income tax impact.

Adjusted net income (loss) attributable to The Andersons, Inc. from continuing operations reflects reported net income (loss) available to The Andersons, Inc. common shareholders from continuing operations 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) attributable to The Andersons, Inc. from continuing operations 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.

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1 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.

2 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.

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1 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.

2 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.

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Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA 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. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure.

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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 current and non-current assets, and payables and other current and non-current liabilities; and adjusted by specific items 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.