The Andersons, Inc. · NASDAQ:ANDE
The Andersons — Q3 2024 Earnings Presentation
23 slides from The Andersons's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter Earnings Call
THIRD QUARTER EARNINGS CALL November 5, 2024
Slide 2: Safe Harbor and Non-GAAP Financial Measures
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, weather, and regulatory condit
Slide 3: Speakers
BILL KRUEGER President and Chief Executive Officer SPEAKERS BRIAN VALENTINE Executive Vice President and Chief Financial Officer MIKE HOELTER Vice President, Corporate Controller and Investor Relations 3
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Resilient earnings through shifting ag cycles led by TRADE grain assets Record Q3 earnings on efficient operations and improved RENEWABLES year-over-year ethanol margins NUTRIENT & INDUSTRIAL Improved operations and volume in manufactured products 4
Slide 5: Key Financial Data – Third Quarter 2024
KEY FINANCIAL DATA – THIRD QUARTER 2024 $ In millions except per share Q3 '24 Q3 '23 YTD '24 YTD '23 Sales and merchandising revenues $ 2,621 $ 3,636 $ 8,134 $ 11,537 Gross profit 177 158 481 528 Pretax income 62 38 134 78 Pretax income attributable to ANDE1 38 18 86 74 Adjusted pretax income attrib
Slide 6: Cash and Liquidity Highlights
CASH AND LIQUIDITY Cash from Operations Before Short-term Debt vs. RMI Working Capital Changes1 (in millions) (in millions) HIGHLIGHTS Consistent and strong operating cash flows in changing markets Readily marketable inventories (RMI) continue to significantly exceed short-term debt Minimal short-te
Slide 7: Capital Spending and Long-term Debt Highlights
CAPITAL SPENDING AND LONG-TERM DEBT Capital Spending1 Long-term Debt (in millions) (in millions) HIGHLIGHTS Capital investments include growth; expect total spend of approximately $150M, dependent on project timing Strong and flexible balance sheet Continued focus on managing long-term debt-to-EBITD
Slide 8: Trade — Q3 '24 Highlights
TRADE — Q3 ‘24 HIGHLIGHTS Grain assets realized strong elevation margins and space income Specialty ingredients continued to benefit from recent growth investments Merchandising profitable despite lower prices and less volatility; Prior year includes fx loss Unaudited in $M Q3 '24 Q3 '23 YTD '24 YTD
Slide 9: Renewables — Q3 '24 Highlights
RENEWABLES — Q3 ‘24 HIGHLIGHTS Record Q3 earnings on efficient operations and improved ethanol margins Higher RD feedstock merchandising volumes; Compressed margins on industry fundamentals Increased feed ingredients volumes; Reduced values from lower corn prices Unaudited in $M Q3 '24 Q3 '23 YTD '2
Slide 10: Nutrient & Industrial — Q3 '24 Highlights
NUTRIENT & INDUSTRIAL — Q3 ‘24 HIGHLIGHTS Solid margins in agricultural products but down from record prior years Improved results from manufactured products with focus on operational efficiency Adjusted EBITDA1 ($M) Unaudited in $M Q3 '24 Q3 '23 YTD '24 YTD '23 Revenues $ 128 $ 129 $ 647 $ 738 Gros
Slide 11: Outlook
OUTLOOK Balanced product portfolio and well-positioned assets should TRADE support earnings on a robust and early harvest Low corn basis and export demand should continue to RENEWABLES support ethanol margins; Continued focus on plant efficiency and lowering carbon-intensity High yields and an early
Slide 12: Q&A Session
Q&A SESSION Q&A SESSION
Slide 13: Thank you for joining us
Thank you for joining us. Our next earnings call is scheduled for February 19, 2025 at 8:30 a.m. ET
Slide 14: Appendix
APPENDIX
Slide 15: Adjusted net income attributable to The Andersons, Inc.
NON-GAAP RECONCILIATION — Adjusted net income from continuing operations attributable to The Andersons, Inc. (unaudited) Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2024 2023 2024 2023 Net income $ 51,461 $ 30,523 $ 116,596 $ 54,092 Net inco
Slide 16: Quarter to Date Segment Data
NON-GAAP RECONCILIATION — Quarter to Date Segment Data (unaudited) NUTRIENT & (in thousands) TRADE RENEWABLES INDUSTRIAL OTHER TOTAL Three months ended September 30, 2024 Sales and merchandising revenues $ 1,747,715 $ 745,206 $ 128,067 $ — $ 2,620,988 Gross profit 98,776 60,375 17,974 — 177,125 Oper
Slide 17: Year to Date Segment Data
NON-GAAP RECONCILIATION — Year to Date Segment Data (unaudited) NUTRIENT & (in thousands) TRADE RENEWABLES INDUSTRIAL OTHER TOTAL Nine months ended September 30, 2024 Sales and merchandising revenues $ 5,399,315 $ 2,088,372 $ 646,723 $ — $ 8,134,410 Gross profit 256,706 133,672 90,438 — 480,816 Oper
Slide 18: Quarter to Date EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION — Quarter to Date EBITDA and Adjusted EBITDA (unaudited) NUTRIENT & (in thousands) TRADE RENEWABLES INDUSTRIAL OTHER TOTAL Three months ended September 30, 2024 Net Income (loss) $ 26,266 $ 52,583 $ (6,132) $ (21,256) $ 51,461 Interest expense (income) 5,405 713 2,838 (595) 8
Slide 19: Year to Date EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION — Year to Date EBITDA and Adjusted EBITDA (unaudited) NUTRIENT & (in thousands) TRADE RENEWABLES INDUSTRIAL OTHER TOTAL Nine months ended September 30, 2024 Net income (loss) $ 37,615 $ 114,574 $ 15,437 $ (51,030) $ 116,596 Interest expense (income) 16,492 2,192 4,454 (1,644)
Slide 20: Cash from Operations Before Working Capital Changes
NON-GAAP RECONCILIATION — Cash from Operations Before Working Capital Changes (unaudited) Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2024 2023 2024 2023 Cash (used in) provided by operating activities $ (2,112) $ 488,683 $ 62,695 $ 696,087
Slide 21: Trade Adjusted EBITDA
NON-GAAP RECONCILIATION — Trade Adjusted EBITDA (unaudited) Twelve months ended December 31, Nine months ended September 30, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 24,687 $ 87,946 $ 95,225 $ 96,234 $ 37,615 Interest expense 21,974 23,688 42,551 35,234 16,492 Depreciation & amortizatio
Slide 22: Renewables Adjusted EBITDA
NON-GAAP RECONCILIATION — Renewables Adjusted EBITDA (unaudited) Twelve months ended December 31, Nine months ended September 30, (in thousands) 2020 2021 2022 2023 2024 Net income (loss)1 $ (47,338) $ 81,205 $ 108,221 $ 91,175 $ 114,574 Interest expense 7,461 7,602 8,775 6,385 2,192 Depreciation &
Slide 23: Nutrient & Industrial Adjusted EBITDA
NON-GAAP RECONCILIATION — Nutrient & Industrial Adjusted EBITDA (unaudited) Twelve months ended December 31, Nine months ended September 30, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 16,015 $ 42,615 $ 39,162 $ 25,049 $ 15,437 Interest expense 5,805 4,355 7,298 7,016 4,454 Depreciation &