Forward Looking Statements



The following "Management's Discussion and Analysis of Financial Condition and
Results of Operations" contains forward-looking statements which relate to
future events or future financial performance and involve known and unknown
risks, uncertainties and other factors that may cause actual results, levels of
activity, performance or achievements to be materially different from those
expressed or implied by these forward-looking statements. Such factors include,
but are not limited to, the effects on our business from the COVID-19 pandemic
and the pace of recovery from the pandemic, economic and political conditions,
globally and in the markets we serve including the ongoing economic impacts from
the conflict in Ukraine, fluctuations in cost and availability of commodities,
weather and agricultural conditions, governmental regulations, the effectiveness
of our internal control over financial reporting and the unpredictability of
existing and possible future litigation. However, it is not possible to predict
or identify all such factors. The reader is urged to carefully consider these
risks and others, including those risk factors listed under Item 1A of the 2021
Form 10-K and under Item 1A in this report. In some cases, the reader can
identify forward-looking statements by terminology such as may, anticipates,
believes, estimates, predicts, or the negative of these terms or other
comparable terminology. These statements are only predictions. Actual events or
results may differ materially. These forward-looking statements relate only to
events as of the date on which the statements are made and the Company
undertakes no obligation, other than any imposed by law, to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. Although management believes that the expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.

Critical Accounting Policies and Estimates



Our critical accounting policies and critical accounting estimates, as described
in our 2021 Form 10-K, have not materially changed through the third quarter of
2022.

Executive Overview

Our operations are organized, managed and classified into three reportable
business segments: Trade, Renewables and Plant Nutrient. Each of these segments
is generally based on the nature of products and services offered and aligns
with the management structure. Due to the Rail segment being presented as
discontinued operations, the Company has excluded Rail from the following
discussions of financial condition and results of operations.

The agricultural commodity-based business is one in which changes in selling
prices generally move in relationship to changes in purchase prices. Therefore,
increases or decreases in prices of the agricultural commodities that the
business deals in will have a relatively equal impact on Sales and merchandising
revenues and Cost of sales and merchandising revenues and a much less
significant impact on Gross profit. As a result, changes in Sales and
merchandising revenues between periods may not necessarily be indicative of the
overall performance of the business and greater emphasis should be placed on
changes in Gross profit.

The Company has considered the potential impact that the book value of the
Company's total shareholders' equity exceeded the Company's market
capitalization during the quarter for impairment indicators. Management
ultimately concluded that an impairment triggering event had not occurred. The
Company believes that the share price is not an accurate reflection of its
current value as conditions are currently strong in the agriculture space with a
positive long-term outlook. Management believes that the market's impact on the
Company's equity value does not actually reflect the impact of these external
factors on the Company. As a result of prior period tests, reviews of current
operating results and other relevant market factors, the Company concluded that
no impairment trigger existed as of September 30, 2022.

Management reviews long-lived assets for impairment when events or changes in
circumstances indicate that the carrying value of an asset group may no longer
be recoverable. This was the case in the third quarter of 2022 for the Company's
51% owned ELEMENT plant located in Colwich, Kansas. The plant faced a
combination of high corn basis, increased natural gas prices and a rapid decline
in Low Carbon Fuel Standards credit values, that negatively impacted operations.
The adverse operating conditions led to a failure of a debt covenant during the
third quarter, as well as, a forecasted failure of another covenant within the
next 12 months. Accordingly, it was deemed that a triggering event occurred as
of September 30, 2022 related to the ELEMENT ethanol plant. Management performed
a recoverability test of the ELEMENT plant's long-lived assets as this is the
lowest level of identifiable cash flows. The key assumptions used in the
recoverability test included input costs (corn, natural gas, etc.), production
days, and co-product premiums. Each of these inputs were given probability
weightings based on
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management's assessment regarding the likelihood of the respective forecasts.
Using future forecasted cash flows, the ELEMENT asset group passed its
recoverability test on an undiscounted cash flow basis by 15% over the carrying
value of its assets. Therefore, if there are changes to key assumptions in the
analysis it is reasonably possible management's estimate that it will recover
the carrying amount of these assets could change, even in the near term.

Trade



The Trade segment's third quarter operating results improved from the prior year
as the segment benefited from strong elevation margins at our grain assets. In
addition, well-positioned feed ingredients inventory generated good margins.

Agricultural inventories on hand were 103.1 million and 84.1 million bushels at
September 30, 2022 and September 30, 2021, respectively. These bushels consist
of inventory held at company-owned or leased facilities, transload inventory,
in-transit inventory, and third-party held inventory. Total Trade storage space
capacity at company-owned or leased facilities, including temporary pile
storage, was approximately 185 million bushels at September 30, 2022, which was
comparable to the prior year.

The majority of our assets are located in areas expected to experience
above-trend yields. Continuing global supply and demand imbalances within the
market from production shortfalls and logistical challenges are expected to keep
prices historically high and should allow for continued merchandising
opportunities and strong elevation margins through the end of the year.

Renewables

The Renewables segment's third quarter operating results increased from the prior year due to continued strength in co-product values and higher production margins in our ethanol plants. This was particularly evident in our eastern plants where corn basis was lower in anticipation of a strong harvest. The renewable diesel feedstock merchandising business also contributed to results.

Higher corn costs for ethanol production in the western U.S. may negatively impact ethanol production in that region, while our eastern corn belt production facilities are well-positioned for an affordable corn supply in the near future.

Ethanol and related co-products volumes for the three and nine months ended September 30, 2022 and 2021 were as follows:



                                                               Three months ended September 30,                             Nine months ended September 30,
(in thousands)                                               2022                              2021                      2022                              2021
Ethanol (gallons shipped)                                   184,845                             184,655                 576,392                             538,955
E-85 (gallons shipped)                                       11,624                              12,977                  28,938                              32,781
Corn oil (pounds shipped)                                   141,313                              79,756                 373,858                             188,974
DDG (tons shipped)*                                             386                                 570                   1,336                               1,544

* DDG tons shipped converts wet tons to a dry ton equivalent amount.

Plant Nutrient



The Plant Nutrient segment's third quarter operating results decreased from the
prior period. Ag Supply Chain and Specialty Liquids product lines continued to
see strong margins on well-positioned inventory, which more than offset a
decline in volumes. The Engineered Granules business recorded some inventory
write-offs on lawn products, which negatively impacted our performance. While we
have seen base nutrient prices level off in the third quarter, continued strong
global demand, a tight supply and high farmer income should continue to support
the fundamentals of this business.

Storage capacity at our Ag Supply Chain and Specialty Liquids facilities,
including leased storage, was approximately 448 thousand tons for dry nutrients
and approximately 511 thousand tons for liquid nutrients at September 30, 2022,
which is similar to the prior year.


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Tons of product sold for the three and nine months ended September 30, 2022 and
2021 were as follows:

                                                    Three months ended September 30,                           Nine months ended September 30,
(in thousands)                                    2022                              2021                     2022                              2021
Ag Supply Chain                                      191                                253                     840                              1,261
Specialty Liquids                                     70                                 71                     261                                304
Engineered Granules                                   51                                 60                     278                                383
Total tons                                           312                                384                   1,379                              1,948



In the table above, Ag Supply Chain represents facilities principally engaged in
the wholesale distribution and retail sale and application of primary
agricultural nutrients such as bulk nitrogen, phosphorus, and
potassium. Specialty Liquid locations produce and sell a variety of low-salt
liquid starter fertilizers, micronutrients for agricultural use, and specialty
products for use in various industrial processes. Engineered Granules include a
variety of corncob-based products and facilities that primarily manufacture
granulated dry products for use in specialty turf and agricultural applications.

Other

Our "Other" activities include corporate income and expense and cost for functions that provide support and services to the operating segments. The results include expenses and benefits not allocated to the operating segments and other elimination and consolidation adjustments.

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Operating Results

The following discussion focuses on the operating results as shown in the Condensed Consolidated Statements of Operations and includes a separate discussion by segment. Additional segment information is included herein in Note 12, Segment Information.

Comparison of the three months ended September 30, 2022 with the three months ended September 30, 2021 including a reconciliation of GAAP to non-GAAP measures:


                                                                               Three months ended September 30, 2022
(in thousands)                                      Trade             Renewables           Plant Nutrient            Other               Total
Sales and merchandising revenues                $ 3,240,526          $  

814,923 $ 163,876 $ - $ 4,219,325 Cost of sales and merchandising revenues 3,116,158

             790,246                  149,156                  -            4,055,560
Gross profit                                        124,368              24,677                   14,720                  -              163,765
Operating, administrative and general expenses       73,347               7,053                   25,427              9,712              115,539

Interest expense (income), net                       10,782               2,555                    1,920               (275)              14,982
Equity in earnings (losses) of affiliates, net          681                   -                        -                  -                  681
Other income (expense), net                            (262)                832                    1,018               (794)                 794
Income (loss) before income taxes from
continuing operations                           $    40,658          $   

15,901 $ (11,609) $ (10,231) $ 34,719 Income (loss) before income taxes attributable to the noncontrolling interests

                           -               7,524                        -                  -                7,524
Non-GAAP Income (loss) before income taxes
attributable to the Company from continuing
operations                                      $    40,658          $    8,377          $       (11,609)         $ (10,231)         $    27,195



                                                                               Three months ended September 30, 2021
(in thousands)                                      Trade             Renewables           Plant Nutrient            Other               Total
Sales and merchandising revenues                $ 2,242,131          $  

614,637 $ 142,056 $ - $ 2,998,824 Cost of sales and merchandising revenues 2,143,935

             608,886                  124,168                  -            2,876,989
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

Interest expense (income), net                        5,243               1,658                    1,146                752                8,799
Equity in earnings (losses) of affiliates, net         (250)                  -                        -                  -                 (250)
Other income (expense), 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) before income taxes attributable to the noncontrolling interests

                           -              (1,602)                       -                  -               (1,602)
Non-GAAP Income (loss) before income taxes
attributable to the Company from continuing
operations                                      $    41,999          $   (3,636)         $        (5,832)         $ (14,612)         $    17,919




The Company uses Income (loss) before income taxes attributable to the Company
from continuing operations, a non-GAAP financial measure as defined by the
Securities and Exchange Commission, to evaluate the Company's financial
performance. This performance measure is not defined by accounting principles
generally accepted in the United States and should be considered in addition to,
and not in lieu of, GAAP financial measures. Management believes that Income
(loss) before income taxes attributable to the Company from continuing
operations is a useful measure of the Company's performance because it provides
investors additional information about the Company's operations allowing
evaluation of underlying business performance and period-to-period
comparability. This measure is not intended to replace or be an alternative to
Income (loss) before income taxes from continuing operations, the most directly
comparable amounts reported under GAAP.



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Trade

While operating results for the Trade segment were consistent year over year,
prior year results include a large one-time gain from the sale of a grain asset
that did not reoccur. Sales and merchandising revenues increased by $998.4
million and cost of sales and merchandising revenues increased by $972.2 million
for a favorable net gross profit impact of $26.2 million. The increase to sales
and merchandising revenues and cost of sales and merchandising revenues is
mainly a result of new merchandising locations opened in the second half of 2021
as these new locations are responsible for approximately 65% of the increase
from the prior year. The remainder of the increase from the prior year was a
result of increased commodity prices and volumes in the existing business. The
increase in gross profit was mainly a result of improved margins as they
accounted for approximately 80% of the improvement with increases in volumes
responsible for the remainder of the increase from the prior year. The improved
margins were driven by strong elevation margins, particularly in our early
harvest geographies with the volume increases from our new merchandising
locations opened in the second half of 2021.

Operating, administrative and general expenses increased by $5.8 million. The
increase from the prior year is primarily related to wage inflation from a
strong labor market as it resulted in an increase of approximately $4.0 million.
The new merchandising locations caused an additional $1.4 million of expense in
the third quarter of 2022.

Interest expense increased by $5.5 million due to higher borrowings with the
addition of our new merchandising locations and increased commodity prices that
are reflected in the short-term debt within the Company's Condensed Consolidated
Balance Sheets along with rising interest rates on the Company's short-term line
of credit compared to the prior year.

Other income, net decreased by $17.1 million from the same quarter of 2021. The
decrease was primarily attributable to the sale of a grain asset in Champaign,
Illinois in which the Company recorded a $14.6 million gain in the prior year
that did not reoccur in 2022.

Renewables



Operating results for the Renewables segment increased by $12.0 million from the
same period last year. Sales and merchandising revenues increased by $200.3
million and cost of sales and merchandising revenues increased by $181.4 million
compared to prior year results. As a result, gross profit increased by $18.9
million compared to 2021 results. The vast majority of the increase to sales and
merchandising revenues and cost of sales and merchandising revenues is the
result of increased ethanol and corn commodity prices as ethanol volumes sold
were consistent between the current year and prior year. The increase to gross
profit in the current period results reflect a $15.1 million margin improvement
at the ethanol plants, primarily from lower corn basis in our eastern footprint.

Operating, administrative and general expenses decreased by $3.0 million from
the prior year. The prior year contained $3.7 million worth of accelerated
depreciation expense associated with experimental technology at the Company's
ethanol plants that did not reoccur in the third quarter of 2022.

Plant Nutrient



Operating results for the Plant Nutrient segment declined by $5.8 million
compared to the same period in the prior year. Sales and merchandising revenues
increased by $21.8 million and cost of sales and merchandising revenues
increased by $25.0 million resulting in an $3.2 million decrease in gross
profit. The increase in sales and merchandising revenues and cost of sales and
merchandising revenues was due to fertilizer prices increasing approximately 45%
from the prior year. This increase in fertilizer prices from the prior year was
partially offset by a decrease in demand as volumes sold decreased by
approximately 20% in the third quarter of 2022. The decrease in gross profit was
mainly driven by a $3.9 million impact from associated inventory write-downs in
the Engineered Granules business.

Operating, administrative and general expenses increased by $2.5 million from
the prior year. Most of this increase is due to inflationary pressures, with
labor costs being the single biggest driver.

Interest expense increased by $0.8 million due to higher net working capital usage from higher commodity prices along with rising interest rates.

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Other



Results for the quarter improved by $4.4 million compared to the same period in
the prior year. The improvement in results was primarily driven by a
$2.8 million loss on a cost method investment and approximately $1.0 million of
stranded costs from the Rail Leasing sale in the prior year.

Income Taxes



For the three months ended September 30, 2022, the Company recorded income tax
expense from continuing operations of $9.8 million. The Company's effective tax
rate was 28.3% on income before taxes from continuing operations of $34.7
million. The difference between the 28.3% effective tax rate and the U.S.
federal statutory tax rate of 21% is primarily attributable to the tax impact of
non-controlling interest and state and local income taxes.

For the three months ended September 30, 2021, the Company recorded income tax
expense from continuing operations of $4.0 million. The Company's effective tax
rate was 24.7% on income from continuing operations of $16.3 million. The
effective tax rate differs from the U.S. federal statutory tax rate of 21.0% due
to the tax impact of certain discrete derivatives and hedging activities, state
and local taxes, and nondeductible compensation offset by the tax impact of
non-controlling interest.


Comparison of the nine months ended September 30, 2022 with the nine months ended September 30, 2021 including a reconciliation of GAAP to non-GAAP measures:


                                                                                Nine months ended September 30, 2022
(in thousands)                                      Trade              Renewables           Plant Nutrient            Other                Total
Sales and merchandising revenues                $ 9,422,974          $ 

2,380,721 $ 844,201 $ - $ 12,647,896 Cost of sales and merchandising revenues 9,128,993

            2,280,965                  723,797                  -            12,133,755
Gross profit                                        293,981               99,756                  120,404                  -               514,141
Operating, administrative and general expenses      195,867               23,533                   80,343             30,342               330,085

Interest expense (income), net                       32,269                6,334                    5,304             (1,145)               42,762
Equity in earnings (losses) of affiliates, net       (5,597)                   -                        -                  -                (5,597)
Other income (expense), net                           7,745               19,750                    2,688             (2,401)               27,782
Income (loss) before income taxes from
continuing operations                           $    67,993          $    

89,639 $ 37,445 $ (31,598) $ 163,479 Income (loss) before income taxes attributable to the noncontrolling interests

                           -               29,827                        -                  -                29,827
Non-GAAP Income (loss) before income taxes
attributable to the Company from continuing
operations                                      $    67,993          $    59,812          $        37,445          $ (31,598)         $    133,652


                                                                                Nine months ended September 30, 2021
(in thousands)                                      Trade              Renewables           Plant Nutrient            Other               Total
Sales and merchandising revenues                $ 6,522,508          $ 

1,674,123 $ 632,717 $ - $ 8,829,348 Cost of sales and merchandising revenues 6,273,924

            1,625,173                  531,568                  -            8,430,665
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

Interest expense (income), net                       19,746                5,752                    3,358                 (8)              28,848
Equity in earnings (losses) of affiliates, net        2,389                    -                        -                  -                2,389
Other income (expense), 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) before income taxes attributable to the noncontrolling interests

                           -                 (822)                       -                  -                 (822)
Non-GAAP Income (loss) before income taxes
attributable to the Company from continuing
operations                                      $    69,631          $    22,821          $        26,686          $ (34,182)         $    84,956




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Trade



While operating results for the Trade segment were consistent year over year,
prior year results include a large one-time gain from the sale of a grain asset
that did not reoccur. Sales and merchandising revenues increased by $2,900.5
million and cost of sales and merchandising revenues increased by $2,855.1
million for an increased gross profit impact of $45.4 million. The increase to
sales and merchandising revenues and cost of sales and merchandising revenues is
mainly a result of new merchandising locations opened in the second half of 2021
as these new locations are responsible for approximately 60% of the increase
from the prior year with the remainder of the increase a result of increased
commodity prices and volumes in the existing business. The $45.4 million
increase in gross profit was an even split between increases in both margins and
volumes. The improved margins were driven by strong elevation margins and
well-positioned animal feed ingredients and organic food and specialty
inventories with the volume increases from our new merchandising locations
opened in the second half of 2021.

Operating, administrative and general expenses increased by $9.8 million. The
increase from the prior year is primarily related to approximately $12.2 million
of higher labor and benefits costs, with about half from business growth and
half from wage inflation.

Interest expense increased by $12.5 million due to higher borrowings with the
addition of our new merchandising locations and increased commodity prices that
are reflected in the short-term debt within the Company's Condensed Consolidated
Balance Sheets along with rising interest rates on the Company's short-term line
of credit compared to the prior year.

Equity in earnings of affiliates decreased by $8.0 million mainly due to the
results of one of the Company's equity method investments being $8.4 million
more favorable in the prior year. Included in this decrease was an impairment of
$4.5 million in 2022.

Other income, net decreased by $16.7 million from the same period of 2021. The
decrease was primarily attributable to the sale of a grain asset in Champaign,
Illinois in which the Company recorded a $14.6 million gain in the prior year
that did not reoccur in 2022.

Renewables



Operating results for Renewables increased by $37.0 million from the same period
last year. Sales and merchandising revenues increased by $706.6 million and cost
of sales and merchandising revenues increased by $655.8 million compared to
prior year. As a result, gross profit increased by $50.8 million compared to
prior year. The vast majority of the increase to sales and merchandising
revenues and cost of sales and merchandising revenues is the result of increased
ethanol and corn commodity prices as ethanol volumes sold were consistent
between the current year and prior year. An improvement of gross profit from the
ethanol plants of $41.6 million with favorable realized crush margins and higher
corn oil volumes being the main drivers of the increase from the prior year.
Also contributing to the increased gross profit was an improvement of unrealized
mark-to-market adjustments of approximately $5.8 million from the prior year.

Other income increased by $17.7 million and almost all of the increase from the
prior year was a result of $17.6 million in proceeds received as a part of the
USDA Biofuel Producer Relief Program that was enacted as a part of the CARES
Act, of which approximately $8.8 million of these proceeds were attributable to
the noncontrolling interest.

Plant Nutrient

Operating results for the Plant Nutrient segment increased by $10.8 million
compared to the same period in the prior year. Sales and merchandising revenues
increased $211.5 million and cost of sales and merchandising revenues increased
by $192.2 million resulting in increased gross profit of $19.3 million. The
increase in sales and merchandising revenues and cost of sales and merchandising
revenues was due to fertilizer prices more than doubling from the prior year.
This increase in fertilizer prices from the same period of prior year was
partially offset by a decrease in demand as volumes sold decreased by
approximately 30%. Gross profit improved year-over-year due to increased margins
on well-positioned inventory from the prior year representing a $46.2 million
difference that was partially offset by a $27.3 million decrease in sales
volumes. Ag Supply Chain led the way in 2022 with a $16.2 million increase in
gross profit as a result of strong margins from well-positioned inventory in a
tight supply market.

Operating, administrative and general expenses increased by $7.5 million from
the prior year. Most of this increase is due to inflationary pressures, with
labor costs being the single biggest driver.

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Interest expense increased by $1.9 million due to higher net working capital
usage from higher commodity prices along with the rising interest rates.

Other

Results improved by $2.6 million from the same period last year. The improvement in results was primarily driven by a $2.8 million loss on a cost method investment in the prior year that did not reoccur.

Income Taxes



For the nine months ended September 30, 2022, the Company recorded income
tax expense from continuing operations of $29.7 million. The Company's effective
tax rate was 18.2% on income before taxes from continuing operations of $163.5
million. The difference between the 18.2% effective tax rate and the U.S.
federal statutory tax rate of 21% is primarily attributable to the tax impact of
non-controlling interest as well as certain discrete derivatives and hedging
activities offset by state and local income taxes and nondeductible
compensation.

For the nine months ended September 30, 2021, the Company recorded income tax
expense from continuing operations of $18.1 million. The Company's effective tax
rate was 21.5% on income from continuing operations of $84.1 million. The
effective tax rate differs from the U.S. federal statutory tax rate of 21% due
to the tax impact of state and local taxes and nondeductible compensation offset
by non-controlling interest and certain discrete derivatives and hedging
activities.


Liquidity and Capital Resources

Working Capital



At September 30, 2022, the Company had working capital from continuing
operations of $944.7 million, an increase of $182.6 million from the prior year.
This increase was attributable to changes in the following components of current
assets from continuing operations and current liabilities from continuing
operations:

                                                       September 30,         September 30,
(in thousands)                                             2022                  2021               Variance
Current Assets from Continuing Operations:
Cash and cash equivalents                             $    140,771          $    216,874          $ (76,103)
Accounts receivable, net                                   990,531               735,349            255,182
Inventories                                              1,556,426             1,017,804            538,622
Commodity derivative assets - current                      502,097               409,647             92,450
Other current assets                                        75,402                92,159            (16,757)
Total current assets from continuing operations       $  3,265,227          $  2,471,833          $ 793,394
Current Liabilities from Continuing Operations:
Short-term debt                                            652,947               281,199            371,748
Trade and other payables                                   930,027               825,923            104,104
Customer prepayments and deferred revenue                  258,828               147,225            111,603
Commodity derivative liabilities - current                 137,168                78,702             58,466
Current maturities of long-term debt                       112,029               106,255              5,774
Accrued taxes                                               23,439                97,215            (73,776)
Accrued expenses and other current liabilities             206,069               173,215             32,854

Total current liabilities from continuing operations $ 2,320,507 $ 1,709,734 $ 610,773 Working Capital from Continuing Operations

$    944,720

$ 762,099 $ 182,621





Current assets from continuing operations as of September 30, 2022 increased
$793.4 million in comparison to those as of September 30, 2021. This increase
was noted mainly in accounts receivable, inventories and current commodity
derivative assets. The increases in those accounts can largely be attributed to
the significant increases in the prices of agricultural commodities, including
fertilizer, that the Company transacts in the ordinary course of business from
the same period of the
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prior year. The Company also opened new merchandising offices in the second half
of the prior year which is contributing to the increase in working capital as
there is a substantial volume of commodities held in that business in 2022.


Current liabilities from continuing operations increased $610.8 million across
all financial statement line items when compared to the prior year. The increase
was driven by short-term debt, trade and other payables, customer prepayments
and deferred revenue, and current commodity derivative liabilities. These
accounts were driven higher from the prior year as a result of higher working
capital needs from the significant increase in agricultural commodity prices and
the opening of the new merchandising offices in the second half of prior year.


Sources and Uses of Cash
                                                                             Nine Months Ended
                                                                     September 30,        September 30,
(in thousands)                                                            2022                2021
Net cash (used in) provided by operating activities                  $  (153,370)         $  119,067
Net cash provided by investing activities                                  2,919             519,523
Net cash provided by (used in) financing activities                       75,489            (450,647)



Operating Activities

Our operating activities used cash of $153.4 million and provided cash of $119.1
million in the first nine months of 2022 and 2021, respectively. The increase in
cash used was primarily due to the increased working capital needs, as discussed
above, driven by significant increases in agricultural commodity prices and the
new merchandising locations that were opened in the second half of 2021. When
the changes in operating assets and liabilities are removed, cash provided by
operating activities was slightly lower than prior year due to the timing of tax
refunds and credits in the first quarter of 2021.

Investing Activities



Investing activities provided cash of $2.9 million through the first nine months
of 2022 compared to cash provided of $519.5 million in the prior period. The
decrease from the prior period was a result of the sale of the Rail Leasing
business that provided cash of $543 million in the prior year which was
partially offset by $56 million in proceeds associated to the sale of the Rail
Repair business in the current year. The Company has now sold substantially all
of the remaining pieces of its legacy Rail segment.

Purchases of property, plant and equipment were approximately $20 million higher than the prior year and we expect to invest approximately $100 million in property, plant and equipment in 2022 related to continuing operations.

Financing Activities



Financing activities provided cash of $75.5 million and used cash of $450.6
million for the nine months ended September 30, 2022 and 2021, respectively.
This increase from the prior year was due to the significant increase in
agricultural commodity prices from the prior period and the related need for
short-term borrowings. The Company's short-term debt balance of $652.9 million
is highly correlated to the balance of readily marketable inventories of
$1,167.0 million as of September 30, 2022.

The Company is party to borrowing arrangements with a syndicate of banks that
provide a total of $1,978.6 million in borrowing capacity. Of the total
capacity, $328.6 million is non-recourse to the Company. As of September 30,
2022, the Company had $1,302.6 million available for borrowing with $230.4
million of that total being non-recourse to the Company.

The Company paid $18.3 million in dividends in the first nine months of 2022
compared to $17.5 million in the prior period. The Company paid dividends of
$0.180 and $0.175 per common share in January, April and September of 2022 and
2021, respectively. On August 19, 2022, the Company declared a cash dividend of
$0.180 per common share payable on October 21, 2022 to shareholders of record on
October 3, 2022.

Certain of our long-term borrowings include covenants that, among other things,
impose minimum levels of working capital and a minimum ratio of owner's equity.
The Company has concluded that in relation to the $65.2 million non-recourse
credit agreement associated with the ELEMENT operations, it was out of
compliance regarding the minimum working capital covenant as of August 31, 2022,
and is virtually certain to be out of compliance for an owner's equity ratio
covenant within the next 12 months. As these covenants have yet to be cured or
waived, the Company classified the total $65.2 million of non-recourse debt
under the ELEMENT credit agreement as a current maturity of long-term debt as of
September 30, 2022. The Company is in compliance with all other covenants as of
September 30, 2022. In addition, certain of our long-term borrowings
                  The Andersons, Inc. | Q3 2022 Form 10-Q | 34
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are collateralized by first mortgages on various facilities. Our non-recourse
long-term debt is collateralized by ethanol plant assets.

Because the Company is a significant borrower of short-term debt in peak seasons
and the majority of this is variable rate debt, increases in interest rates
could have a significant impact on our profitability. In addition, periods of
high grain prices and/or unfavorable market conditions could require us to make
additional margin deposits on our exchange traded futures contracts. Conversely,
in periods of declining prices, the Company could receive a return of cash.

Management believes our sources of liquidity will be adequate to fund our operations, capital expenditures and service our indebtedness.

At September 30, 2022, the Company had standby letters of credit outstanding of $3.4 million.

The Andersons, Inc. | Q3 2022 Form 10-Q | 35

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