Andersons : 2021 First Quarter Earnings Call

First Quarter Earnings Call

May 5, 2021

1

Safe Harbor and Non-GAAP Financial Measures

Certain information discussed today constitutes forward-looking statements. Actual results could differ materially from those presented in the forward looking statements as a result of many factors including general economic conditions, weather, competitive conditions in the company's industries, both in the U.S. and internationally, the COVID-19 pandemic, and additional factors that are described in the company's publicly-filed documents, including its '34 Act filings and the prospectuses prepared in connection with the company's offerings.

Today's call includes financial information which the company's independent auditors have not completely reviewed. 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 assurances that these assumptions will prove to be accurate.

This presentation and today's prepared remarks contain non-GAAP financial measures. The company believes that adjusted pretax income (loss), pretax income (loss) attributable to the company, adjusted pretax income (loss) attributable to the company, adjusted net income attributable to the company, adjusted diluted earnings per share (or adjusted EPS), earnings before interest, taxes, depreciation and amortization (or EBITDA), adjusted EBITDA and cash from operations before changes in working capital provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance or liquidity, and better period-to-period comparability. These measures do not and should not be considered as alternatives to net income, income (loss) before income taxes, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders or 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 the financial tables in the appendix.

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Speakers

Pat Bowe

President and Chief Executive Officer

Brian Valentine

Executive Vice President and Chief Financial Officer

Mike Hoelter

Vice President, Corporate Controller and Investor Relations

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First Quarter Highlights

Strong merchandising results driven by increased demand and market volatility; Cost reductions benefited results

Rebounding margins led to higher ethanol results; Strong high-protein feed and other co-product values more than offset rising corn input costs

Best first quarter since 2008, driven by early spring demand and well-positioned inventory; Continued demand for specialty and turf products

Improved results supported by higher scrap prices and credit recoveries

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Key Financial Data - First Quarter 2021

$ In millions except per share and ratio data

YTD '21	YTD '20	VPY

Sales and merchandising revenues	$2,635.7	$1,853.1	$782.6
Gross profit	122.7	63.1	59.6
Operating, administrative and general expenses	99.9	105.1	(5.2)
Income (loss) before income taxes attributable to The Andersons, Inc.*	20.9	(39.1)	60.0
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.*	21.3	(37.8)	59.1
Net income (loss) attributable to The Andersons, Inc.	15.1	(37.7)	52.8
Adjusted net income (loss) attributable to The Andersons, Inc.*	15.5	(43.2)	58.7
Diluted earnings (loss) per share (EPS)	0.45	(1.15)	1.60
Adjusted EPS*	0.46	(1.32)	1.78
Depreciation and amortization	47.5	46.9	0.6
EBITDA*	79.7	9.9	69.8
Adjusted EBITDA*	80.2	11.2	69.0
Effective tax rate	30.2%	2.8%	27.4%

* Non-GAAP financial measure; see appendix for reconciliations.

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