MAUMEE, OHIO, November 7, 2023 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the third quarter ended September 30, 2023.

•Company reported net income attributable to The Andersons of $10 million, or $0.28 per diluted share and adjusted net income of $5 million, or $0.13 per diluted share

•Adjusted EBITDA was $70 million for the quarter

•Expect full year adjusted EBITDA to achieve previous expectations of $350-$375 million

•Renewables reported record Q3 pretax income of $47 million and record pretax income attributable to The Andersons of $26 million on strong operations and industry fundamentals

"Our third quarter includes record results from our Renewables team with great operating performance in our ethanol plants, a strong margin environment and good results from our renewable diesel feedstock merchandising team. We had solid core operating performance in our Trade segment which was offset by a currency loss in our international business. Lastly, our Nutrient & Industrial segment's third quarter, which is typically a loss in this seasonally slow period, had year over year improvements in both its ag and manufacturing businesses," said President and CEO Pat Bowe. "We remain confident about the balance of the year and expect to achieve our previously communicated full year adjusted EBITDA outlook of $350-$375 million."

"We continue to make good progress against our growth strategy. Our third quarter acquisition of ACJ International, a pet food ingredient supplier, contributed positively to these results. We are pleased with this complementary addition to our core grain and fertilizer verticals," continued Bowe. "We are actively pursuing opportunities for growth in our Renewables business. These opportunities include expansion of our renewable diesel feedstock merchandising business and investments to lower the carbon intensity of our ethanol plants. With our well-positioned balance sheet, we have good capacity for growth." "Our businesses continue to generate strong cash flows," said Executive Vice President and CFO Brian Valentine.

$ in millions, except per share amounts
			Q3 2023			Q3 2022			Variance			YTD 2023			YTD 2022			Variance
Pretax Income from Continuing Operations			$	38.4		$	34.7		$	3.7		$	77.8		$	163.5		$	(85.7)
Pretax Income from Continuing Operations Attributable to the Company1			17.6			27.2			(9.6)			73.7			133.7			(60.0)
Adjusted Pretax Income (Loss) from Continuing Operations Attributable to the Company1			10.1			27.2			(17.1)			90.7			134.3			(43.6)
Trade1			5.4			40.7			(35.3)			36.3			68.7			(32.4)
Renewables1			26.3			8.4			17.9			65.0			59.8			5.2
Nutrient & Industrial			(8.5)			(11.6)			3.1			23.7			37.4			(13.7)
Other1			(13.1)			(10.2)			(2.9)			(34.3)			(31.6)			(2.7)
Net Income from Continuing Operations Attributable to the Company			9.7			17.4			(7.7)			50.0			104.0			(54.0)
Adjusted Net Income from Continuing Operations Attributable to the Company1			4.6			17.4			(12.8)			63.7			105.6			(41.9)
Diluted Earnings Per Share from Continuing Operations (EPS)			0.28			0.50			(0.22)			1.46			3.02			(1.56)
Adjusted Diluted Earnings Per Share from Continuing Operations1			0.13			0.50			(0.37)			1.86			3.07			(1.21)
EBITDA from Continuing Operations1			77.8			83.0			(5.2)			210.4			307.5			(97.1)
Adjusted EBITDA from Continuing Operations1			$	70.3		$	83.0		$	(12.7)		$	270.0		$	308.2		$	(38.2)
1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

"Although we typically finance working capital with short-term borrowings, we ended the quarter with more than $400 million in cash and very little short-term debt due to strong cash flows and reduced commodity prices. We remain well below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet. We have meaningful capacity for growth and continue our disciplined approach to evaluating projects that fall within our stated strategy and meet our required financial hurdles."

The company generated $489 million and $568 million in cash from operating activities for the third quarters of 2023 and 2022, respectively, and cash from operations before working capital changes was comparable to the same period of the prior year. Included in our investing activities are several strategic growth projects along with normal spending to maintain our facilities.

The Trade segment recorded pretax income of $8 million and adjusted pretax income of $5 million for the quarter compared to pretax income of $41 million in the third quarter of 2022.

Aggregate results for most of our product lines were comparable to the strong third quarter of 2022. Our asset business benefited from another solid Louisiana harvest and strong space income after a very large soft wheat harvest. Underlying merchandising fundamentals were solid; however, earnings were negatively impacted by a $19 million pretax loss ($0.43 per share) in Egypt. While we sell in U.S. dollars, given the unusual currency liquidity issues being experienced by our customers in Egypt, we accepted a lower exchange rate for previously delivered product.

The Trade business remains focused on domestic grain flows and is less impacted by slowdowns in U.S. exports. With the large and ongoing U.S. harvest, our assets are well-positioned to accumulate, condition and store large quantities of grain. In this harvest, we expect drying income due to receipts of higher moisture corn. Trade is also receiving increased storage rates including Variable Storage Rates (VSR) in wheat. With increased domestic supply, the merchandising focus will continue to be on serving customers and opportunistic arbitrage.

The Renewables segment reported record pretax income of $47 million and pretax income attributable to the company of $26 million in the third quarter. For the same period in 2022, the segment reported pretax income of $16 million and pretax income attributable to the company of $8 million.

Ethanol crush margins were outstanding throughout the quarter, and the current margin outlook remains strong. Production facilities operated efficiently in the quarter with improved ethanol yield and lower operating costs than the comparable quarter in 2022. Results from the merchandising businesses, including renewable diesel feedstocks, exceeded our third quarter 2022 results by nearly $5 million. The three large eastern plants completed their semi-annual maintenance shutdowns in the third quarter and the western plant completed shortly thereafter. Board crush values remain historically high into the fourth quarter.

The Nutrient & Industrial segment posted a pretax loss of $8 million, compared to a 2022 third quarter pretax loss of $12 million. During this seasonally slow period, volumes were down 6% with an overall increase in margins. Gross profit improved by $4 million and reflects these higher margins partially offset by the volume decline. The Sioux City specialty liquid plant was impacted by a rail service interruption which had an impact on volumes for approximately one month. Outlook for the fourth quarter remains solid.

The company recorded income tax expense at an effective rate of 20% for the quarter due to the tax treatment of non-controlling interests. We anticipate a full-year adjusted effective rate of approximately 21% - 24%.

The company will host a webcast on Wednesday, November 8, 2023, at 11 a.m. Eastern Time, to discuss its performance and provide its outlook for the remainder of 2023. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 5878900). 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/RLX7mgJ2YKE 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, geopolitical risk, 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 pretax income from continuing operations or income (loss) before income taxes from continuing operations, net income 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., named to Forbes list of America's Best Small Companies for 2023 and 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 nutrient and industrial 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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			Nine months ended September 30,
(in thousands)			2023						2022
Operating Activities
Net income from continuing operations			$	54,092					$	133,784
Income from discontinued operations, net of income taxes			—						18,099
Net income			54,092						151,883
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization			93,800						101,266
Gain on sale of business from discontinued operations			—						(27,091)
Asset impairment			87,156						—
Other			1,347						(1,296)
Changes in operating assets and liabilities:
Accounts receivable			406,263						(140,866)
Inventories			748,118						236,854
Commodity derivatives			99,479						(104,901)
Other current and non-current assets			2,048						2,000
Payables and other current and non-current liabilities			(796,216)						(371,219)
Net cash provided by (used in) operating activities			696,087						(153,370)
Investing Activities
Acquisition of businesses, net of cash acquired			(24,385)						—
Purchases of property, plant and equipment and capitalized software			(108,718)						(72,247)
Proceeds from sale of assets			3,082						4,810
Proceeds from sale of business from continuing operations			10,318						5,171
Proceeds from sale of business from discontinued operations			—						56,302
Purchases of Rail assets			—						(27,464)
Proceeds from sale of Rail assets			2,871						36,706
Other			(431)						(359)
Net cash (used in) provided by investing activities			(117,263)						2,919
Financing Activities
Net receipts (payments) under short-term lines of credit			(261,152)						361,318
Proceeds from issuance of short-term debt			—						350,000
Payments of short-term debt			—						(550,000)
Proceeds from issuance of long-term debt			100,000						—
Payments of long-term debt			(42,734)						(22,585)
Contributions from noncontrolling interest owner			—						2,450
Distributions to noncontrolling interest owner			(44,304)						(34,930)
Payments of debt issuance costs			(769)						(7,802)
Dividends paid			(18,771)						(18,262)
Proceeds from exercises of stock options			—						5,024
Common stock repurchased			(1,747)						(6,769)
Value of shares withheld for taxes			(6,627)						(3,349)
Other			258						394
Net cash (used in) provided by financing activities			(275,846)						75,489
Effect of exchange rates on cash and cash equivalents			(192)						(711)
Increase (decrease) in cash and cash equivalents			302,786						(75,673)
Cash and cash equivalents at beginning of period			115,269						216,444
Cash and cash equivalents at end of period			$	418,055					$	140,771

(unaudited)

1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of certain transaction related compensation and impairments of equity method investments in both 2023 and 2022, respectively.

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 from continuing operations attributable to The Andersons, Inc. and Diluted earnings per share from continuing operations 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 Amounts for the three months ended September 30, 2023, contain no activity from discontinued operations. As such, references to EBITDA and EBITDA from continuing operations, as well as, Adjusted EBITDA and Adjusted EBITDA from continuing operations will yield the same results for the three months ended September 30, 2023.

(unaudited)

1 Amounts for the nine months ended September 30, 2023, contain no activity from discontinued operations. As such, references to EBITDA and EBITDA from continuing operations, as well as, Adjusted EBITDA and Adjusted EBITDA from continuing operations will yield the same results for the nine months ended September 30, 2023.

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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 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.