Fourth Quarter Highlights:
- 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 atDecember 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
"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. |
Cash, Liquidity, and Long-Term Debt Management
"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
The company generated
For the full years of 2023 and 2022, the company generated
Fourth Quarter Segment Overview
Trade Posts Strong Fourth Quarter Driven by Grain Assets
Trade recorded pretax income of
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
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
The Renewables segment reported record pretax income of
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
Nutrient & Industrial Shows Improvement on Prior Year
Nutrient & Industrial recorded pretax income of
Nutrient & Industrial's current quarter EBITDA was
Conference Call
The company will host a webcast on
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.
Forward-Looking Statements
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
Non-GAAP Measures
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
Company Description
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.
Condensed Consolidated Statements of Operations (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||
Sales and merchandising revenues | $ 3,213,000 | $ 4,677,488 | $ 14,750,112 | $ 17,325,384 | |||
Cost of sales and merchandising revenues | 2,995,286 | 4,507,465 | 14,004,749 | 16,641,220 | |||
Gross profit | 217,714 | 170,023 | 745,363 | 684,164 | |||
Operating, administrative and general expenses | 132,712 | 127,471 | 492,260 | 457,556 | |||
Asset impairment | — | 9,000 | 87,156 | 9,000 | |||
Interest expense, net | 8,101 | 14,087 | 46,867 | 56,849 | |||
Other income, net | 14,860 | 11,638 | 50,483 | 33,823 | |||
Income before income taxes from continuing operations | 91,761 | 31,103 | 169,563 | 194,582 | |||
Income tax provision from continuing operations | 13,324 | 9,933 | 37,034 | 39,628 | |||
Net income from continuing operations | 78,437 | 21,170 | 132,529 | 154,954 | |||
Income (loss) from discontinued operations, net of income taxes | — | (6,074) | — | 12,025 | |||
Net income | 78,437 | 15,096 | 132,529 | 166,979 | |||
Net income attributable to the noncontrolling interest | 27,251 | 6,072 | 31,339 | 35,899 | |||
Net income attributable to | $ 51,186 | $ 9,024 | $ 101,190 | $ 131,080 | |||
Earnings (loss) per share attributable to | |||||||
Basic earnings (loss): | |||||||
Continuing operations | $ 1.52 | $ 0.45 | $ 3.00 | $ 3.53 | |||
Discontinued operations | — | (0.18) | — | 0.36 | |||
$ 1.52 | $ 0.27 | $ 3.00 | $ 3.89 | ||||
Diluted earnings (loss): | |||||||
Continuing operations | $ 1.49 | $ 0.44 | $ 2.94 | $ 3.46 | |||
Discontinued operations | — | (0.18) | — | 0.35 | |||
$ 1.49 | $ 0.26 | $ 2.94 | $ 3.81 |
Condensed Consolidated Balance Sheets (unaudited) | |||
(in thousands) | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 643,854 | $ 115,269 | |
Accounts receivable, net | 762,549 | 1,248,878 | |
Inventories | 1,166,700 | 1,731,725 | |
Commodity derivative assets – current | 178,083 | 295,588 | |
Other current assets | 55,777 | 74,493 | |
Total current assets | 2,806,963 | 3,465,953 | |
Other assets: | |||
127,856 | 129,342 | ||
Other intangible assets, net | 85,579 | 100,907 | |
Right of use assets, net | 54,234 | 61,890 | |
Other assets, net | 87,010 | 87,175 | |
Total other assets | 354,679 | 379,314 | |
Property, plant and equipment, net | 693,365 | 762,729 | |
Total assets | $ 3,855,007 | $ 4,607,996 | |
Liabilities and equity | |||
Current liabilities: | |||
Short-term debt | $ 43,106 | $ 272,575 | |
Trade and other payables | 1,055,473 | 1,423,633 | |
Customer prepayments and deferred revenue | 187,054 | 370,524 | |
Commodity derivative liabilities – current | 90,849 | 98,519 | |
Current maturities of long-term debt | 27,561 | 110,155 | |
Accrued expenses and other current liabilities | 232,288 | 245,916 | |
Total current liabilities | 1,636,331 | 2,521,322 | |
Long-term lease liabilities | 31,659 | 37,147 | |
Long-term debt, less current maturities | 562,960 | 492,518 | |
Deferred income taxes | 58,581 | 64,080 | |
Other long-term liabilities | 49,089 | 63,160 | |
Total liabilities | 2,338,620 | 3,178,227 | |
Total equity | 1,516,387 | 1,429,769 | |
Total liabilities and equity | $ 3,855,007 | $ 4,607,996 |
Consolidated Statements of Cash Flows (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||
Operating Activities | |||||||
Net income from continuing operations | $ 78,437 | $ 21,170 | $ 132,529 | $ 154,954 | |||
Income (loss) from discontinued operations, net of income taxes | — | (6,074) | — | 12,025 | |||
Net income | 78,437 | 15,096 | 132,529 | 166,979 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 31,306 | 33,476 | 125,106 | 134,742 | |||
Bad debt expense, net | 5,438 | 973 | 11,519 | 6,001 | |||
Stock-based compensation expense | 3,493 | 3,495 | 12,857 | 11,192 | |||
Deferred federal income tax | 6,696 | 810 | (1,596) | (20,009) | |||
Gain on sale of business from continuing operations | — | — | (5,643) | — | |||
Asset impairment | — | 11,818 | 87,156 | 11,818 | |||
Gain on sale of business from discontinued operations | — | — | — | (27,091) | |||
Damaged inventory | — | 17,328 | — | 17,328 | |||
Other | (10,535) | 7,275 | (10,698) | 14,073 | |||
Changes in operating assets and liabilities: | |||||||
Accounts and notes receivable | 62,705 | (250,537) | 468,968 | (391,403) | |||
Inventories | (175,883) | (179,995) | 572,235 | 56,859 | |||
Commodity derivatives | 12,027 | 170,300 | 111,506 | 65,399 | |||
Other current and non-current assets | 4,481 | 8,936 | 6,529 | 10,936 | |||
Payables and other current and non-current liabilities | 232,498 | 601,512 | (563,718) | 230,293 | |||
Net cash provided by operating activities | 250,663 | 440,487 | 946,750 | 287,117 | |||
Investing Activities | |||||||
Acquisition of businesses, net of cash acquired | (313) | (20,245) | (24,698) | (20,245) | |||
Purchases of property, plant and equipment and capitalized software | (41,725) | (36,037) | (150,443) | (108,284) | |||
Proceeds from sale of assets | 424 | 497 | 3,506 | 5,307 | |||
Purchase of investments | — | — | (1,730) | (2,105) | |||
Proceeds from sale of business from continuing operations | — | — | 10,318 | 5,171 | |||
Proceeds from sale of Rail assets | — | — | 2,871 | 36,706 | |||
Proceeds from sale of business from discontinued operations | — | — | — | 56,302 | |||
Purchases of Rail assets | — | (3,994) | — | (31,458) | |||
Other | 4,998 | 3,958 | 6,297 | 5,704 | |||
Net cash used in investing activities | (36,616) | (55,821) | (153,879) | (52,902) | |||
Financing Activities | |||||||
Net (payments) receipts under short-term lines of credit | 27,456 | (382,591) | (233,696) | (21,273) | |||
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 | (6,886) | (7,460) | (49,620) | (30,045) | |||
Distributions to noncontrolling interest owner | (2,114) | (9,980) | (46,418) | (44,910) | |||
Dividends paid | (6,602) | (6,347) | (25,373) | (24,609) | |||
Common stock repurchased | — | (5,952) | (1,747) | (12,721) | |||
Other | (1) | 2,111 | (7,139) | (1,172) | |||
Net cash provided by (used in) financing activities | 11,853 | (410,219) | (263,993) | (334,730) | |||
Effect of exchange rates on cash and cash equivalents | (101) | 51 | (293) | (660) | |||
Increase (decrease) in Cash and cash equivalents | 225,799 | (25,502) | 528,585 | (101,175) | |||
Cash and cash equivalents at the beginning of the period | 418,055 | 140,771 | 115,269 | 216,444 | |||
Cash and cash equivalents at the end of the period | $ 643,854 | $ 115,269 | $ 643,854 | $ 115,269 |
Adjusted Net Income from Continuing Operations Attributable to A non-GAAP financial measure (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||
Net income from continuing operations | $ 78,437 | $ 21,170 | $ 132,529 | $ 154,954 | |||
Net income attributable to noncontrolling interests | 27,251 | 6,072 | 31,339 | 35,899 | |||
Net income from continuing operations attributable to | 51,186 | 15,098 | 101,190 | 119,055 | |||
Adjustments: | |||||||
Asset impairment including equity method investments | — | 9,000 | 45,413 | 13,455 | |||
Transaction related compensation | 3,212 | — | 7,818 | — | |||
686 | — | 686 | — | ||||
Gain on cost method investment | — | — | (4,798) | — | |||
Gain on sale of assets | — | — | (5,643) | (3,762) | |||
Gain on deconsolidation of joint venture | — | — | (6,544) | — | |||
Insured inventory expenses (recoveries) | — | 15,993 | (16,080) | 15,993 | |||
Income tax impact of adjustments1 | (520) | (6,248) | (3,775) | (5,308) | |||
Total adjusting items, net of tax | 3,378 | 18,745 | 17,077 | 20,378 | |||
Adjusted net income from continuing operations attributable to | $ 54,564 | $ 33,843 | $ 118,267 | $ 139,433 | |||
Diluted earnings per share attributable to common shareholders from continuing operations | $ 1.49 | $ 0.44 | $ 2.94 | $ 3.46 | |||
Impact on diluted earnings per share from continuing operations | $ 0.10 | $ 0.54 | $ 0.50 | $ 0.59 | |||
Adjusted diluted earnings per share attributable to common shareholders from continuing operations | $ 1.59 | $ 0.98 | $ 3.44 | $ 4.05 |
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 |
Segment Data (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Three months ended | |||||||||
Sales and merchandising revenues | $ 2,212,434 | $ 795,236 | $ 205,330 | $ — | $ 3,213,000 | ||||
Gross profit | 126,064 | 65,257 | 26,393 | — | 217,714 | ||||
Operating, administrative and general expenses | 88,097 | 7,933 | 24,091 | 12,591 | 132,712 | ||||
Other income (loss), net | 11,839 | 3,401 | 439 | (819) | 14,860 | ||||
Income (loss) before income taxes from continuing operations | 43,807 | 59,988 | 1,374 | (13,408) | 91,761 | ||||
Income attributable to the noncontrolling interests | — | 27,251 | — | — | 27,251 | ||||
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 43,807 | $ 32,737 | $ 1,374 | $ (13,408) | $ 64,510 | ||||
Adjustments to income (loss) before income taxes from continuing operations2 | 3,212 | — | 686 | — | 3,898 | ||||
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 47,019 | $ 32,737 | $ 2,060 | $ (13,408) | $ 68,408 | ||||
Three months ended | |||||||||
Sales and merchandising revenues | $ 3,624,563 | $ 797,818 | $ 255,107 | $ — | $ 4,677,488 | ||||
Gross profit | 113,726 | 27,239 | 29,058 | — | 170,023 | ||||
Operating, administrative and general expenses | 77,725 | 7,197 | 25,660 | 16,889 | 127,471 | ||||
Other income (loss), net | 10,513 | 981 | 313 | (169) | 11,638 | ||||
Income (loss) before income taxes from continuing operations | 27,232 | 18,582 | 1,717 | (16,428) | 31,103 | ||||
Income attributable to the noncontrolling interests | — | 6,072 | — | — | 6,072 | ||||
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 27,232 | $ 12,510 | $ 1,717 | $ (16,428) | $ 25,031 | ||||
Adjustments to income (loss) before income taxes from continuing operations2 | 24,993 | — | — | — | 24,993 | ||||
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 52,225 | $ 12,510 | $ 1,717 | $ (16,428) | $ 50,024 |
1 Income (loss) from continuing operations before income taxes attributable to |
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. |
Segment Data (continued) (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Twelve months ended | |||||||||
Sales and merchandising revenues | $ 10,426,083 | $ 3,380,632 | $ 943,397 | $ — | $ 14,750,112 | ||||
Gross profit | 409,950 | 202,397 | 133,016 | — | 745,363 | ||||
Operating, administrative and general expenses | 308,470 | 32,737 | 103,342 | 47,711 | 492,260 | ||||
Other income, net | 29,988 | 15,056 | 2,391 | 3,048 | 50,483 | ||||
Income (loss) before income taxes from continuing operations | 96,234 | 91,175 | 25,049 | (42,895) | 169,563 | ||||
Income attributable to the noncontrolling interests | — | 31,339 | — | — | 31,339 | ||||
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 96,234 | $ 59,836 | $ 25,049 | $ (42,895) | $ 138,224 | ||||
Adjustments to income (loss) before income taxes from continuing operations2 | (12,942) | 37,906 | 686 | (4,798) | 20,852 | ||||
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 83,292 | $ 97,742 | $ 25,735 | $ (47,693) | $ 159,076 | ||||
Twelve months ended | |||||||||
Sales and merchandising revenues | $ 13,047,537 | $ 3,178,539 | $ 1,099,308 | $ — | $ 17,325,384 | ||||
Gross profit | 407,707 | 126,995 | 149,462 | — | 684,164 | ||||
Operating, administrative and general expenses | 273,592 | 30,730 | 106,003 | 47,231 | 457,556 | ||||
Other income (loss), net | 12,661 | 20,731 | 3,001 | (2,570) | 33,823 | ||||
Income (loss) before income taxes from continuing operations | 95,225 | 108,221 | 39,162 | (48,026) | 194,582 | ||||
Income attributable to the noncontrolling interests | — | 35,899 | — | — | 35,899 | ||||
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 95,225 | $ 72,322 | $ 39,162 | $ (48,026) | $ 158,683 | ||||
Adjustments to income (loss) before income taxes from continuing operations2 | 25,686 | — | — | — | 25,686 | ||||
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.1 | $ 120,911 | $ 72,322 | $ 39,162 | $ (48,026) | $ 184,369 |
1 Income (loss) from continuing operations before income taxes attributable to |
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 |
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited) | |||||||||
Continuing Operations | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Three months ended | |||||||||
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 | ||||
— | — | 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 | |||||||||
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 |
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. |
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited) | |||||||||
(in thousands) | Trade | Renewables | Nutrient & | Other | Total | ||||
Twelve months ended | |||||||||
Net income (loss)1 | $ 96,234 | $ 91,175 | $ 25,049 | $ (79,929) | $ 132,529 | ||||
Interest expense (income) | 35,234 | 6,385 | 7,016 | (1,768) | 46,867 | ||||
Tax provision | — | — | — | 37,034 | 37,034 | ||||
Depreciation and amortization | 36,109 | 51,408 | 29,268 | 8,321 | 125,106 | ||||
EBITDA1 | 167,577 | 148,968 | 61,333 | (36,342) | 341,536 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 7,818 | — | — | — | 7,818 | ||||
Asset impairment including equity method investment | 963 | 87,156 | — | — | 88,119 | ||||
Gain on sale of assets | (5,643) | — | — | — | (5,643) | ||||
Insured inventory recoveries | (16,080) | — | — | — | (16,080) | ||||
Gain on deconsolidation of joint venture | — | (6,544) | — | — | (6,544) | ||||
— | — | 686 | — | 686 | |||||
Gain on cost method investment | — | — | — | (4,798) | (4,798) | ||||
Total adjusting items | (12,942) | 80,612 | 686 | (4,798) | 63,558 | ||||
Adjusted EBITDA1 | $ 154,635 | $ 229,580 | $ 62,019 | $ (41,140) | $ 405,094 | ||||
Twelve months ended | |||||||||
Net income (loss) from continuing operations | $ 95,225 | $ 108,221 | $ 39,162 | $ (87,654) | $ 154,954 | ||||
Interest expense (income) | 42,551 | 8,775 | 7,298 | (1,775) | 56,849 | ||||
Tax provision | — | — | — | 39,628 | 39,628 | ||||
Depreciation and amortization | 35,953 | 63,458 | 26,634 | 8,697 | 134,742 | ||||
EBITDA from continuing operations | 173,729 | 180,454 | 73,094 | (41,104) | 386,173 | ||||
Adjusting items impacting EBITDA: | |||||||||
Gain on sale of assets | (3,762) | — | — | — | (3,762) | ||||
Asset impairment including equity method investments | 13,455 | — | — | — | 13,455 | ||||
Insured inventory expenses | 15,993 | — | — | — | 15,993 | ||||
Total adjusting items | 25,686 | — | — | — | 25,686 | ||||
Adjusted EBITDA from continuing operations | $ 199,415 | $ 180,454 | $ 73,094 | $ (41,104) | $ 411,859 |
1 Amounts for the twelve months ended |
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. |
Cash from Operations Before Working Capital Changes A non-GAAP financial measure (unaudited) | |||||||
Three months ended | Twelve months ended | ||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||
Cash provided by operating activities | $ 250,663 | $ 440,487 | $ 946,750 | $ 287,117 | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | 62,705 | (250,537) | 468,968 | (391,403) | |||
Inventories | (175,883) | (179,995) | 572,235 | 56,859 | |||
Commodity derivatives | 12,027 | 170,300 | 111,506 | 65,399 | |||
Other current and non-current assets | 4,481 | 8,936 | 6,529 | 10,936 | |||
Payables and other current and non-current liabilities | 232,498 | 601,512 | (563,718) | 230,293 | |||
Total changes in operating assets and liabilities | 135,828 | 350,216 | 595,520 | (27,916) | |||
Adjusting items impacting cash from operations before working capital changes: | |||||||
Less: Insured inventory recoveries | — | — | (16,080) | — | |||
Less: Unrealized foreign currency losses on receivables | 7,270 | — | (4,818) | — | |||
Cash from operations before working capital changes | $ 122,105 | $ 90,271 | $ 330,332 | $ 315,033 |
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. |
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