MAUMEE, OHIO, February 20, 2024 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter ended December 31, 2023.

•Company reported net income from continuing operations attributable to The Andersons of $51 million, or $1.49 per diluted share, and $55 million, or $1.59 per diluted share, on an adjusted basis

•EBITDA was $131 million for the quarter, and adjusted EBITDA was $135 million

•Trade reported pretax income of $44 million and adjusted pretax income of $47 million

•Renewables reported record pretax income of $60 million and pretax income attributable to the company of $33 million on efficient plant performance and good merchandising results

•Strong balance sheet; healthy cash flows result in a cash balance of $644 million at December 31, 2023

"Renewables had an excellent fourth quarter with record ethanol production and strong corn to ethanol yields at our four ethanol plants. We continued to have great operating performance and also benefited from strong board crush margins. In Trade, our eastern grain assets had good results from improving basis after a later harvest coupled with income from drying wet corn. In Nutrient & Industrial, we had a mixed quarter with year-over-year improvement from our ag supply chain product lines," said President and CEO Pat Bowe. "With these results, we are reporting a 30% year-over-year improvement in adjusted EBITDA for the quarter, leading to a full year adjusted EBITDA of $405 million, just behind last year's record of $412 million, and well above our previously disclosed range of $350-$375 million."

"Looking forward, we acknowledge a shift in fundamentals of the commodity markets with increased global stocks. Our mix of North American storage and ethanol production assets and combined with strength in merchandising positions us well to benefit from these market shifts," added Bowe. "We have seen good results from our recent investments in ingredients supplied for pet and human consumption. We are actively pursuing opportunities for growth in the Renewables space, including carbon reduction plans and increased renewable diesel feedstock merchandising.

Across our businesses, we have a robust pipeline of opportunities that include both investment in our facilities and M&A with a strong balance sheet to support this growth." $ in millions, except per share amounts Q4 2023 Q4 2022 Variance YTD 2023 YTD 2022 Variance Pretax Income from Continuing Operations $ 91.8 $ 31.1 $ 60.7 $ 169.6 $ 194.6 $ (25.0) Pretax Income from Continuing Operations Attributable to the Company1 64.5 25.0 39.5 138.2 158.7 (20.5) Adjusted Pretax Income (Loss) from Continuing Operations Attributable to the Company1 68.4 50.0 18.4 159.1 184.4 (25.3) Trade1 47.0 52.2 (5.2) 83.3 120.9 (37.6) Renewables1 32.7 12.5 20.2 97.7 72.3 25.4 Nutrient & Industrial1 2.1 1.7 0.4 25.7 39.2 (13.5) Other1 (13.4) (16.4) 3.0 (47.7) (48.0) 0.3 Net Income from Continuing Operations Attributable to the Company 51.2 15.1 36.1 101.2 119.1 (17.9) Adjusted Net Income from Continuing Operations Attributable to the Company1 54.6 33.8 20.8 118.3 139.4 (21.1) Diluted Earnings Per Share from Continuing Operations (EPS) 1.49 0.44 1.05 2.94 3.46 (0.52) Adjusted Diluted Earnings Per Share from Continuing Operations1 1.59 0.98 0.61 3.44 4.05 (0.61) EBITDA from Continuing Operations1 131.2 78.7 52.5 341.5 386.2 (44.7) Adjusted EBITDA from Continuing Operations1 $ 135.1 $ 103.7 $ 31.4 $ 405.1 $ 411.9 $ (6.8) 1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

"Strong operating cash flows continued into the fourth quarter. Our significant cash position and minimal short-term borrowings resulted in cash in excess of total debt at year end," said Executive Vice President and CFO Brian Valentine. "Our long-term debt to adjusted EBITDA ratio of 1.5 times is well below our stated target of 2.5 times. With a strong balance sheet, we are well-positioned to fund good growth projects with appropriate returns."

The company generated $251 million and $440 million in cash from operating activities for the fourth quarters of 2023 and 2022, respectively, and generated $122 million and $90 million in cash from operations before working capital changes for the same periods, respectively.

For the full years of 2023 and 2022, the company generated $947 million and $287 million in cash from operating activities, respectively. Cash from operations before working capital changes for the same years was $330 million and $315 million, leading to a December 31, 2023, cash balance of $644 million.

Trade recorded pretax income of $44 million and adjusted pretax income of $47 million for the quarter, compared to pretax income of $27 million and record adjusted pretax income of $52 million in the fourth quarter of the prior year.

Strong elevation margins in core grain assets through harvest drove the results with strong basis appreciation and drying income from a wet corn crop. The merchandising businesses realized solid results but down from last year, primarily on weakness in the Middle East and North Africa region. Our premium ingredients business experienced significant improvements from the prior year, as recent acquisitions and other growth capital investments provided strong returns.

Ag fundamentals are shifting due to increased global supply. Our mix of assets and merchandising businesses provide a solid foundation for us to benefit from large crops and carry markets. With lower commodity prices, domestic producers are hesitant to forward sell, but our assets are well-positioned for the grains to flow in due course. With continuing global unrest, volatility exists in key international shipping lanes which could provide ongoing merchandising opportunities.

Trade’s fourth quarter adjusted EBITDA was $62 million, compared to fourth quarter 2022 adjusted EBITDA of $72 million. Full year adjusted EBITDA decreased from a record $199 million in 2022 to $155 million in 2023.

The Renewables segment reported record pretax income of $60 million and pretax income attributable to the company of $33 million in the fourth quarter compared to pretax income of $19 million and pretax income attributable to the company of $13 million in the fourth quarter of 2022. Fourth quarter ethanol board crush margins were up $0.20/gallon and natural gas prices were down when compared to the same quarter in 2022. Our four ethanol plants had record production in the fourth quarter, further capitalizing on the favorable margin environment. Renewable diesel feedstock merchandising results also grew on increased sales volumes and a further diversified product portfolio.

While spot ethanol crush margins have softened into 2024, the first quarter generally experiences seasonally weak margins. Upcoming planned maintenance in the industry and the spring driving rebound should support improved plant economics; however, co-product values are facing headwinds as weaker corn prices are expected to compress feed values.

Renewables recorded EBITDA of $73 million in the fourth quarter of 2023, compared to 2022 fourth quarter EBITDA of $36 million. For the full year, adjusted EBITDA of $230 million in 2023, was a record and an increase of almost $50 million from 2022.

Nutrient & Industrial recorded pretax income of $1 million and adjusted pretax income of $2 million in the fourth quarter, a slight improvement to the prior year, on an adjusted basis. The increased results are primarily due to higher volumes in our core agriculture products. Adjusted results include $2 million of expense related to a standstill payment for a growth project that did not come to fruition. We remain optimistic for a good spring application season as nutrient prices have stabilized, and farm economics should still incentivize application of crop inputs.

Nutrient & Industrial’s current quarter EBITDA was $10 million and adjusted EBITDA was $11 million, comparable to 2022 fourth quarter EBITDA. For the full year, Nutrient & Industrial recorded EBITDA of $61 million and adjusted EBITDA of $62 million in 2023, down from EBITDA of $73 million in 2022.

The company will host a webcast on Wednesday, February 21, 2024, at 11 a.m. ET, to discuss its performance and provide its outlook for 2024. To access the call, please dial 888-317-6003 or 412-317-6061 (international toll) and use elite entry number 7643632. 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/2KMLrbDgaWV 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 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. is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and nutrient & 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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1 The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of certain transaction related compensation, goodwill impairments, and impairments of equity method investments in both 2023 and 2022, respectively.

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. All adjustments are consistent with the EBITDA reconciliation with the exception of a $42.7 million difference in the Renewables segment which represents the asset impairment expense attributable to the non-controlling interest that is already represented in Income attributable to the noncontrolling interest within the reconciliation above.

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			Continuing Operations
(in thousands)			Trade						Renewables						Nutrient & Industrial						Other						Total
Three months ended December 31, 2023
Net income (loss)1			$	43,807					$	59,988					$	1,374					$	(26,732)					$	78,437
Interest expense (income)			5,999						737						1,367						(2)						8,101
Tax provision			—						—						—						13,324						13,324
Depreciation and amortization			9,450						12,184						7,750						1,922						31,306
EBITDA1			59,256						72,909						10,491						(11,488)						131,168
Adjusting items impacting EBITDA:
Transaction related compensation			3,212						—						—						—						3,212
Goodwill impairment			—						—						686						—						686
Total adjusting items			3,212						—						686						—						3,898
Adjusted EBITDA1			$	62,468					$	72,909					$	11,177					$	(11,488)					$	135,066
Three months ended December 31, 2022
Net income (loss) from continuing operations			$	27,232					$	18,582					$	1,717					$	(26,361)					$	21,170
Interest expense (income)			10,282						2,441						1,994						(630)						14,087
Tax provision			—						—						—						9,933						9,933
Depreciation and amortization			9,054						15,443						6,834						2,145						33,476
EBITDA from continuing operations			46,568						36,466						10,545						(14,913)						78,666
Adjusting items impacting EBITDA:
Asset impairment			9,000						—						—						—						9,000
Insured inventory expenses			15,993						—						—						—						15,993
Total adjusting items			24,993						—						—						—						24,993
Adjusted EBITDA from continuing operations			$	71,561					$	36,466					$	10,545					$	(14,913)					$	103,659

1 Amounts for the three months ended December 31, 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 December 31, 2023.

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1 Amounts for the twelve months ended December 31, 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 twelve months ended December 31, 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 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.