Slide 1: Second Quarter Earnings Call
SECOND QUARTER EARNINGS CALL August 7, 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 Chairman 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: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Improved earnings across broad portfolio led by grain TRADE assets and premium ingredients Strong earnings on efficient operations and improved RENEWABLES year-over-year ethanol margins; Co-product values down NUTRIENT & INDUSTRIAL Year-over-year earnings reflect lower comm
Slide 5: Key Financial Data – Second Quarter 2024
KEY FINANCIAL DATA – SECOND QUARTER 2024 $ In millions except per share Q2 '24 Q2 '23 YTD '24 YTD '23 Sales and merchandising revenues $ 2,795 $ 4,020 $ 5,513 $ 7,901 Gross profit 175 222 304 370 Pretax income 57 104 71 39 Pretax income attributable to ANDE1 41 77 48 56 Adjusted pretax income 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 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
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 - $175M Strong and flexible balance sheet Continued focus on managing long-term debt-to-EBITDA ratio below 2.5x; currently 1.6x2
Slide 8: Trade — Q2 '24 Highlights
TRADE — Q2 ‘24 HIGHLIGHTS Grain assets improved with carry markets, led by wheat income opportunities Premium ingredients improved with recent acquisition and growth investments Merchandising income declined on lower prices and less volatility Adjusted EBITDA1 ($M) Unaudited in $M Q2 '24 Q2 '23 YTD
Slide 9: Renewables — Q2 '24 Highlights
RENEWABLES — Q2 ‘24 HIGHLIGHTS Record operating production and improved ethanol crush margins Higher RD feedstock merchandising volumes; Compressed margins on industry fundamentals Increased feed ingredients volumes; Reduced values from lower corn prices Unaudited in $M Q2 '24 Q2 '23 YTD '24 YTD '23
Slide 10: Nutrient & Industrial — Q2 '24 Highlights
NUTRIENT & INDUSTRIAL — Q2 ‘24 HIGHLIGHTS Year-over-year earnings reflect lower commodity prices and a late and wet spring Improved results from manufactured products with focus on operational efficiency Adjusted EBITDA1 ($M) Unaudited in $M Q2 '24 Q2 '23 YTD '24 YTD '23 Revenues $ 351 $ 446 $ 519 $
Slide 11: Outlook
OUTLOOK Balanced product portfolio and well-positioned assets should TRADE support earnings on an abundant grain supply; Wheat income opportunities expected to continue Fundamentals should continue to support solid ethanol RENEWABLES margins particularly in the east; Continue to focus on plant effic
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 November 5, 2024 at 11 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 June 30, Six months ended June 30, (in thousands, except per share data) 2024 2023 2024 2023 Net income $ 52,470 $ 82,686 $ 65,135 $ 23,569 Net income (loss) at
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 June 30, 2024 Sales and merchandising revenues $ 1,757,741 $ 686,127 $ 351,337 $ — $ 2,795,205 Gross profit 79,648 46,727 48,996 — 175,371 Operating
Slide 17: Year to Date Segment Data
NON-GAAP RECONCILIATION — Year to Date Segment Data (unaudited) NUTRIENT & (in thousands) TRADE RENEWABLES INDUSTRIAL OTHER TOTAL Six months ended June 30, 2024 Sales and merchandising revenues $ 3,651,600 $ 1,343,166 $ 518,656 $ — $ 5,513,422 Gross profit 157,930 73,297 72,464 — 303,691 Operating,
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 June 30, 2024 Net Income (loss) $ 5,424 $ 39,200 $ 23,419 $ (15,573) $ 52,470 Interest expense (income) 5,454 947 693 (483) 6,611 Tax
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 Six months ended June 30, 2024 Net income (loss) $ 11,348 $ 61,991 $ 21,569 $ (29,773) $ 65,135 Interest expense (income) 11,087 1,479 1,616 (1,049) 13,133
Slide 20: Cash from Operations Before Working Capital Changes
NON-GAAP RECONCILIATION — Cash from Operations Before Working Capital Changes (unaudited) Three months ended June 30, Six months ended June 30, (in thousands, except per share data) 2024 2023 2024 2023 Cash provided by operating activities $ 304,434 $ 540,939 $ 64,807 $ 207,404 Changes in operating
Slide 21: Trade Adjusted EBITDA
NON-GAAP RECONCILIATION — Trade Adjusted EBITDA (unaudited) Twelve months ended December 31, Six months ended June 30, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 24,687 $ 87,946 $ 95,225 $ 96,234 $ 11,348 Interest expense 21,974 23,688 42,551 35,234 11,087 Depreciation & amortization 44,6
Slide 22: Renewables Adjusted EBITDA
NON-GAAP RECONCILIATION — Renewables Adjusted EBITDA (unaudited) Twelve months ended December 31, Six months ended June 30, (in thousands) 2020 2021 2022 2023 2024 Net income (loss)1 $ (47,338) $ 81,205 $ 108,221 $ 91,175 $ 61,991 Interest expense 7,461 7,602 8,775 6,385 1,479 Depreciation & amortiz
Slide 23: Nutrient & Industrial Adjusted EBITDA
NON-GAAP RECONCILIATION — Nutrient & Industrial Adjusted EBITDA (unaudited) Twelve months ended December 31, Six months ended June 30, (in thousands) 2020 2021 2022 2023 2024 Net income1 $ 16,015 $ 42,615 $ 39,162 $ 25,049 $ 21,569 Interest expense 5,805 4,355 7,298 7,016 1,616 Depreciation & amorti