Slide 1: Fourth Quarter Earnings Call
FOURTH QUARTER EARNINGS CALL February 21, 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
PAT BOWE President and Chief Executive Officer BILL KRUEGER Chief Operating Officer SPEAKERS BRIAN VALENTINE Executive Vice President and Chief Financial Officer MIKE HOELTER Vice President, Corporate Controller and Investor Relations 3
Slide 4: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS Strong results across the asset footprint through harvest; TRADE Merchandising businesses were solid Outstanding earnings on efficient operations and favorable RENEWABLES industry fundamentals; Continued growth in low CI renewable diesel feedstock volumes Improved volumes f
Slide 5: Key Financial Data – Fourth Quarter 2023
KEY FINANCIAL DATA – FOURTH QUARTER 2023 $ In millions except per share Q4 '23 Q4 '22 YTD '23 YTD '22 Sales and merchandising revenues $ 3,213 $ 4,677 $ 14,750 $ 17,325 Gross profit 218 170 745 684 Pretax income from continuing operations 92 31 170 195 Pretax income from continuing operations attrib
Slide 6: Cash and Liquidity
CASH AND LIQUIDITY Cash from Operations Before Short-term Debt vs. RMI Working Capital Changes1 (in millions) (in millions) HIGHLIGHTS Healthy operating cash flows Cash on hand at 12/31/2023 in excess of total debt Readily marketable inventories (RMI) significantly exceed short-term debt 1 Non-GAAP
Slide 7: Capital Spending and Long-Term Debt
CAPITAL SPENDING AND LONG-TERM DEBT Capital Spending1 Total Long-term Debt (in millions) (in millions) HIGHLIGHTS Capital investments include growth; expect 2024 spend of $150M - $175M Strong and flexible balance sheet Continued focus on managing long-term debt-to-EBITDA ratio below 2.5x; currently
Slide 8: Trade — Q4 '23 Highlights
TRADE — Q4 '23 HIGHLIGHTS Grain assets realized solid elevation margins and space income Merchandising income solid but below record Q4 2022 Premium ingredients performed well, including recent growth investments Unaudited in $M Q4 '23 Q4 '22 YTD '23 YTD '22 Adjusted EBITDA1 ($M) Revenues $ 2,212 $
Slide 9: Renewables — Q4 '23 Highlights
RENEWABLES — Q4 '23 HIGHLIGHTS Outstanding results with record production and improved ethanol yields Ethanol crush margins were significantly higher than prior year Continued growth in RD feedstock merchandising business Unaudited in $M Q4 '23 Q4 '22 YTD '23 YTD '22 Adjusted EBITDA1 ($M) Revenues $
Slide 10: Nutrient & Industrial — Q4 '23 Highlights
NUTRIENT & INDUSTRIAL — Q4 '23 HIGHLIGHTS Improved results in core agriculture products on higher volumes Continued weakness in demand for non-agriculture manufactured products Adjusted EBITDA1 ($M) Unaudited in $M Q4 '23 Q4 '22 YTD '23 YTD '22 Revenues $ 205 $ 255 $ 943 $ 1,099 Gross profit 26 29 1
Slide 11: Outlook
OUTLOOK Balanced product portfolio and well-positioned grain assets TRADE should support steady earnings amidst abundant grain supply Expect seasonally low ethanol crush margins in first quarter; RENEWABLES Plants are well-positioned for anticipated spring driving rebound; Focus on growth initiative
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 May 8, 2024, at 11 a.m. ET
Slide 14: Appendix
APPENDIX
Slide 15: Non-GAAP Reconciliation — Adjusted net income from continuing operations
NON-GAAP RECONCILIATION — Adjusted net income from continuing operations attributable to The Andersons, Inc. (unaudited) Three months ended December 31, Twelve months ended December 31, (in thousands, except per share data) 2023 2022 2023 2022 Net income from continuing operations $ 78,437 $ 21,170
Slide 16: Non-GAAP Reconciliation — 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 December 31, 2023 Sales and merchandising revenues $ 2,212,434 $ 795,236 $ 205,330 $ — $ 3,213,000 Gross profit 126,064 65,257 26,393 — 217,714 Oper
Slide 17: Non-GAAP Reconciliation — Year to Date Segment Data
NON-GAAP RECONCILIATION — Year to Date Segment Data (unaudited) Nutrient & (in thousands) Trade Renewables Industrial Other Total Twelve months ended December 31, 2023 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
Slide 18: Non-GAAP Reconciliation — 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 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
Slide 19: Non-GAAP Reconciliation — 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 Twelve months ended December 31, 2023 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
Slide 20: Non-GAAP Reconciliation — Cash from Operations Before Working Capital Changes
NON-GAAP RECONCILIATION — Cash from Operations Before Working Capital Changes (unaudited) Three months ended December 31, Twelve months ended December 31, (in thousands, except per share data) 2023 2022 2023 2022 Cash provided by operating activities $ 250,663 $ 440,487 $ 946,750 $ 287,117 Changes i
Slide 21: Non-GAAP Reconciliation — Adjusted EBITDA
NON-GAAP RECONCILIATION — Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2019 2020 20211 20221 2023² Net income (loss) $ 15,060 $ (14,215) $ 131,542 $ 154,954 $ 132,529 Interest expense 59,691 51,275 37,292 56,849 46,867 Tax provision 13,051 (10,259) 29,228 39,628 37,034
Slide 22: Non-GAAP Reconciliation – Trade Adjusted EBITDA
NON-GAAP RECONCILIATION – Trade Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2019 2020 2021 2022 2023 Net income (loss)1 $ (17,328) $ 24,687 $ 87,946 $ 95,225 $ 96,234 Interest expense 34,843 21,974 23,688 42,551 35,234 Depreciation & amortization 50,973 44,627 44,335
Slide 23: Non-GAAP Reconciliation – Renewables Adjusted EBITDA
NON-GAAP RECONCILIATION – Renewables Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2019 2020 2021 2022 2023 Net income (loss)1 $ 47,660 $ (47,338) $ 81,205 $ 108,221 $ 91,175 Interest expense 943 7,461 7,602 8,775 6,385 Depreciation & amortization 23,727 73,224 77,542 6
Slide 24: Non-GAAP Reconciliation – Nutrient & Industrial Adjusted EBITDA
NON-GAAP RECONCILIATION – Nutrient & Industrial Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2019 2020 2021 2022 2023 Net income1 $ 9,159 $ 16,015 $ 42,615 $ 39,162 $ 25,049 Interest expense 7,954 5,805 4,355 7,298 7,016 Depreciation & amortization 25,985 25,407 25,957