The Andersons, Inc. · NASDAQ:ANDE

The Andersons — Q4 2024 Earnings Presentation

25 slides from The Andersons's earnings presentation, Feb 19, 2025

  1. Slide 1: Fourth Quarter Earnings Call

    FOURTH QUARTER EARNINGS CALL February 19, 2025

  2. 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

  3. 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

  4. Slide 4: Fourth Quarter Highlights

    FOURTH QUARTER HIGHLIGHTS Strong harvest results across the eastern asset footprint; TRADE merchandising businesses were solid Earnings benefited from record production and favorable RENEWABLES corn basis; improved earnings from ethanol merchandising Improvements in manufactured products; softer NUT

  5. Slide 5: Key Financial Data – Fourth Quarter 2024

    KEY FINANCIAL DATA – FOURTH QUARTER 2024 $ In millions except per share Q4 '24 Q4 '23 YTD '24 YTD '23 Sales and merchandising revenues $ 3,123 $ 3,213 $ 11,258 $ 14,750 Gross profit 213 218 694 745 Pretax income 67 92 201 170 Pretax income attributable to ANDE1 58 65 144 138 Adjusted pretax income a

  6. 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 $560M cash on ha

  7. 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 2025 spend of $175M - $200M Strong and flexible balance sheet Continued focus on managing long-term debt-to-EBITDA ratio below 2.5x; currently

  8. Slide 8: Trade — Q4 '24 Highlights

    TRADE — Q4 '24 HIGHLIGHTS Eastern grain assets realized solid elevation margins and space income on early, robust harvest Merchandising income improved despite less volatility Completed acquisition of controlling interest in Skyland Grain, LLC Adjusted EBITDA1 ($M) Unaudited in $M Q4 '24 Q4 '23 YTD

  9. Slide 9: Renewables — Q4 '24 Highlights

    RENEWABLES — Q4 '24 HIGHLIGHTS Solid results with record production and favorable corn basis Overall ethanol and co-product values lower than prior year Improved ethanol merchandising results Unaudited in $M Q4 '24 Q4 '23 YTD '24 YTD '23 Adjusted EBITDA1 ($M) Revenues $ 714 $ 795 $ 2,802 $ 3,381 Gro

  10. Slide 10: Nutrient & Industrial — Q4 '24 Highlights

    NUTRIENT & INDUSTRIAL — Q4 '24 HIGHLIGHTS Lower volumes in core agriculture products on softer fundamentals Improved margins and volumes in manufactured products Adjusted EBITDA1 ($M) Unaudited in $M Q4 '24 Q4 '23 YTD '24 YTD '23 Revenues $ 186 $ 205 $ 833 $ 943 Gross profit 31 26 121 133 Pretax inc

  11. Slide 11: 2024 Proforma Results

    2024 PROFORMA RESULTS ORGANIZATIONAL ALIGNMENT Agribusiness will consist primarily of the Trade and Nutrient & Industrial segments Unlocking value through cross-functional collaboration, synergies, and optimization Focus on serving customers and driving growth 2024 Adjusted EBITDA1 (in millions) $36

  12. Slide 12: Outlook

    OUTLOOK AGRIBUSINESS Balanced product portfolio and well-positioned grain and agronomy assets should support steady earnings amid changing market factors Expect increase in U.S. corn acres Focused on Skyland integration and other growth investments RENEWABLES Expect seasonally low ethanol crush marg

  13. Slide 13: Q&A Session

    Q&A SESSION Q&A SESSION

  14. Slide 14: Thank you for joining us

    Thank you for joining us. Our next earnings call is scheduled for May 7, 2025, at 8:30 a.m. ET

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Non-GAAP Reconciliation — Adjusted net income attributable to The Andersons, Inc.

    NON-GAAP RECONCILIATION — Adjusted net income attributable to The Andersons, Inc. (unaudited) Three months ended December 31, Twelve months ended December 31, (in thousands, except per share data) 2024 2023 2024 2023 Net income $ 54,104 $ 78,437 $ 170,700 $ 132,529 Net income attributable to noncont

  17. Slide 17: 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, 2024 Sales and merchandising revenues $ 2,222,762 $ 713,958 $ 186,418 $ — $ 3,123,138 Gross profit 146,976 35,479 30,655 — 213,110 Oper

  18. Slide 18: 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, 2024 Sales and merchandising revenues $ 7,622,077 $ 2,802,330 $ 833,141 $ — $ 11,257,548 Gross profit 403,682 169,151 121,093 — 693,926 O

  19. Slide 19: 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, 2024 Net income (loss) $ 53,818 $ 24,921 $ 2,551 $ (27,186) $ 54,104 Interest expense (income) 8,095 649 1,857 (335) 10,2

  20. Slide 20: 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, 2024 Net income (loss) $ 91,433 $ 139,495 $ 17,988 $ (78,216) $ 170,700 Interest expense (income) 24,587 2,841 6,311 (1,979

  21. Slide 21: 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) 2024 2023 2024 2023 Cash provided by operating activities $ 268,811 $ 250,663 $ 331,506 $ 946,750 Changes in operating assets and

  22. Slide 22: Non-GAAP Reconciliation – Adjusted EBITDA

    NON-GAAP Reconciliation – Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2020 20211 20221 2023 2024 Net income (loss) $ (14,215) $ 131,542 $ 154,954 $ 132,529 $ 170,700 Interest expense 51,275 37,292 56,849 46,867 31,760 Tax provision (10,259) 29,228 39,628 37,034 30,057

  23. Slide 23: Non-GAAP Reconciliation – Trade Adjusted EBITDA

    NON-GAAP RECONCILIATION – Trade Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 24,687 $ 87,946 $ 95,225 $ 96,234 $ 91,433 Interest expense 21,974 23,688 42,551 35,234 24,587 Depreciation & amortization 44,627 44,335 35,953 36,109 40

  24. Slide 24: Non-GAAP Reconciliation – Renewables Adjusted EBITDA

    NON-GAAP RECONCILIATION – Renewables Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2020 2021 2022 2023 2023 Net income (loss)1 $ (47,338) $ 81,205 $ 108,221 $ 91,175 $ 139,495 Interest expense 7,461 7,602 8,775 6,385 2,841 Depreciation & amortization 73,224 77,542 63,45

  25. Slide 25: Non-GAAP Reconciliation – Nutrient & Industrial Adjusted EBITDA

    NON-GAAP RECONCILIATION – Nutrient & Industrial Adjusted EBITDA (unaudited) Twelve months ended December 31, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 16,015 $ 42,615 $ 39,162 $ 25,049 $ 17,988 Interest expense 5,805 4,355 7,298 7,016 6,311 Depreciation & amortization 25,407 25,957 26,63

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