The Andersons, Inc. · NASDAQ:ANDE
The Andersons — Q1 2024 Earnings Presentation
21 slides from The Andersons's earnings presentation, May 8, 2024
Slide 1: First Quarter Earnings Call
FIRST QUARTER EARNINGS CALL May 8, 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 SPEAKERS Chief Operating Officer BRIAN VALENTINE Executive Vice President and Chief Financial Officer MIKE HOELTER Vice President, Corporate Controller and Investor Relations 3
Slide 4: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Merchandising business solid but does not match TRADE outsized Q1 2023; Premium ingredients growth investments accretive Strong earnings on efficient operations and improved RENEWABLES year-over-year ethanol margins NUTRIENT & INDUSTRIAL Significant year-over-year improvemen
Slide 5: Key Financial Data – First Quarter 2024
KEY FINANCIAL DATA – FIRST QUARTER 2024 $ In millions except per share YTD '24 YTD '23 Sales and merchandising revenues $ 2,718 $ 3,881 Gross profit 128 148 Pretax income (loss) 14 (65) Pretax income (loss) attributable to ANDE1 7 (21) Adjusted pretax income attributable to ANDE1 7 8 Net income (los
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 Consistent and strong operating cash flows in changing markets Readily marketable inventories (RMI) continue to significantly exceed short-term debt Lower short-term
Slide 7: Capital Spending and Long-Term Debt
CAPITAL SPENDING AND LONG-TERM DEBT Capital Spending1 Long-term Debt (in millions) (in millions) HIGHLIGHTS Capital investments include growth; expect total spend of $150M - $175M Strong and flexible balance sheet Continued focus on managing long-term debt-to-EBITDA ratio below 2.5x; currently below
Slide 8: Trade — Q1 '24 Highlights
TRADE — Q1 ‘24 HIGHLIGHTS Merchandising income solid but below strong Q1 2023 on lower prices and less volatility Grain assets realized solid elevation margins; Producers still hesitant to forward sell Premium ingredients improved with recent acquisition and growth investments Unaudited in $M YTD '2
Slide 9: Renewables — Q1 '24 Highlights
RENEWABLES — Q1 ‘24 HIGHLIGHTS Strong results with record production and improved ethanol crush margins RD feedstock merchandising volumes grow; Compressed margins on industry fundamentals Increased feed ingredients volumes; Reduced value from lower corn prices Unaudited in $M YTD '24 YTD '23 Adjust
Slide 10: Nutrient & Industrial — Q1 '24 Highlights
NUTRIENT & INDUSTRIAL — Q1 ‘24 HIGHLIGHTS Improved margins and volumes in ag supply chain products Higher volumes in specialty liquids and manufactured products Adjusted EBITDA1 ($M) Unaudited in $M YTD '24 YTD '23 Revenues $ 167 $ 164 Gross profit 23 15 Pretax loss (2) (10) EBITDA1 7 (1) 1 Non-GAAP
Slide 11: Outlook
OUTLOOK Balanced product portfolio and well-positioned grain assets TRADE should support earnings amidst abundant grain supply; Wheat income opportunities expected to return Fundamentals should continue to support solid ethanol RENEWABLES margins particularly in the east; Continued focus on growth i
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 August 7, 2024 at 11 a.m. ET
Slide 14: Appendix
APPENDIX
Slide 15: Non-GAAP Reconciliation — Adjusted net income attributable to The Andersons
NON-GAAP RECONCILIATION — Adjusted net income from continuing operations attributable to The Andersons, Inc. (unaudited) Three months ended March 31, (in thousands, except per share data) 2024 2023 Net income (loss) $ 12,665 $ (59,117) Net income (loss) attributable to noncontrolling interests 7,084
Slide 16: 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 Three months ended March 31, 2024 Sales and merchandising revenues $ 1,893,859 $ 657,039 $ 167,319 $ — $ 2,718,217 Gross profit 78,282 26,570 23,468 — 128,320 Operating,
Slide 17: 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 Three months ended March 31, 2024 Net income (loss) $ 5,924 $ 22,791 $ (1,850) $ (14,200) $ 12,665 Interest expense (income) 5,633 532 923 (566) 6,522 Tax p
Slide 18: Non-GAAP Reconciliation — Cash from Operations Before Working Capital Changes
NON-GAAP RECONCILIATION — Cash from Operations Before Working Capital Changes (unaudited) Three months ended March 31, (in thousands, except per share data) 2024 2023 Cash used in operating activities $ (239,627) $ (333,535) Changes in operating assets and liabilities Accounts receivable 57,725 125,
Slide 19: Non-GAAP Reconciliation – Trade Adjusted EBITDA
NON-GAAP RECONCILIATION – Trade Adjusted EBITDA (unaudited) Three months ended Twelve months ended December 31, March 31, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 24,687 $ 87,946 $ 95,225 $ 96,234 $ 5,924 Interest expense 21,974 23,688 42,551 35,234 5,633 Depreciation & amortization 44,
Slide 20: Non-GAAP Reconciliation – Renewables Adjusted EBITDA
NON-GAAP RECONCILIATION – Renewables Adjusted EBITDA (unaudited) Three months ended Twelve months ended December 31, March 31, (in thousands) 2020 2021 2022 2023 2024 Net income (loss)1 $ (47,338) $ 81,205 $ 108,221 $ 91,175 $ 22,791 Interest expense 7,461 7,602 8,775 6,385 532 Depreciation & amorti
Slide 21: Non-GAAP Reconciliation – Nutrient & Industrial Adjusted EBITDA
NON-GAAP RECONCILIATION – Nutrient & Industrial Adjusted EBITDA (unaudited) Three months ended Twelve months ended December 31, March 31, (in thousands) 2020 2021 2022 2023 2024 Net (loss) income1 $ 16,015 $ 42,615 $ 39,162 $ 25,049 $ (1,850) Interest expense 5,805 4,355 7,298 7,016 923 Depreciation