EX-99.1 2 ex-99pressreleaseq42018.htm EXHIBIT 99.1 Exhibit


logoa04a10.gif NEWS RELEASE

The Andersons, Inc. Reports Fourth Quarter and Full-Year Results
 
Fourth Quarter Highlights
•
Company reports EPS of $0.84 and adjusted EPS of $0.92; adjusted EPS improves by 35% year over year.
•
Lansing Trade Group acquisition closed effective January 1, 2019.
•
Grain Group pretax income improves to $25.4 million on strong harvest margin environment and another strong quarter from Lansing.
•
Ethanol Group earns $5.1 million of pretax income on optimal plant efficiency.
•
Plant Nutrient Group reports pretax income of $3.8 million on improved primary nutrient margin and lower operating expenses.
•
Rail Group earns $6.7 million of pretax income on steadily rising railcar demand.

Maumee, Ohio, February 13, 2019 - The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the fourth quarter and full year ended December 31, 2018.

“We improved our fourth quarter operating performance year over year,” said Pat Bowe, President and CEO. “The Grain Group recorded better results highlighted by improvement in its base grain business and a strong finish to the year by Lansing Trade Group. We are excited about the closing of our acquisition of Lansing at the beginning of 2019. Our integration efforts are going very well, and we are committed to a thoughtful, disciplined combination of our organizations. We are more confident than ever about the strong strategic fit of the transaction.”

“In addition, our Ethanol Group performed well in a weak market environment by continuing to operate efficiently and market wisely even as margins for the quarter were lower again year over year,” continued Bowe. “The Plant Nutrient Group’s performance improved across most of its product lines except for specialty nutrients. The Rail Group’s performance was equal to last year’s results, and the group purchased more than 1,000 railcars.”
$ in millions
Fourth Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Reported Pretax Income (Loss)
$29.9
$(0.9)
$30.8
$53.2
$(20.5)
$73.7
Adjusted Pretax Income
$33.0
$27.1
$5.9
$59.7
$49.5
$10.2
Reported Net Income
$23.8
$69.7
$(45.9)
$41.5
$42.5
$(1.0)
Adjusted Net Income
$26.0
$18.9
$7.1
$46.4
$33.7
$12.7
EPS
$0.84
$2.47
$(1.63)
$1.46
$1.50
$(0.04)
Adjusted EPS
$0.92
$0.67
$0.25
$1.63
$1.19
$0.44
EBITDA
$60.2
$25.0
$35.2
$171.6
$87.4
$84.2
Adjusted EBITDA
$63.3
$53.0
$10.3
$178.1
$157.4
$20.7

The company reported fourth quarter 2018 net income attributable to The Andersons of $23.8 million, or $0.84 per diluted share, on revenues of $813 million. Adjusted net income attributable to the company for the period was $26.0 million, or $0.92 per diluted share, compared to 2017 fourth quarter net income of $69.7 million, or $2.47 per diluted share, and adjusted net income of $18.9 million, or $0.67 per diluted share, on revenues of $1.0 billion. The company’s EBITDA was $60.2 million for the fourth quarter of 2018 and $25.0 million for fourth quarter of 2017. Adjusted EBITDA was $63.3 million for the quarter compared to $53.0 million in fourth quarter 2017.

For the full year, the company reported net income attributable to The Andersons of $41.5 million, or $1.46 per diluted share, and adjusted net income attributable to The Andersons of $46.4 million, or $1.63 per diluted share. The adjusted results exclude $6.5 million in pretax charges related to the Lansing acquisition. These amounts compared to net income attributable to The Andersons of $42.5 million, or $1.50 per diluted share, and adjusted net income attributable to The Andersons of $33.7 million, or $1.19 per diluted share, in 2017. The company’s EBITDA for 2018 and 2017 was $171.6 million and $87.4 million, respectively. Adjusted EBITDA was $178.1 million for 2018 compared to $157.4 million in 2017.





The decrease in revenues year over year was primarily the result of the company’s adoption of new revenue recognition rules at the beginning of 2018 that changed the accounting treatment of a significant amount of the Grain Group’s sales transactions. This change has no impact on the amount of gross profit recognized on these transactions.

For purposes of better understanding ongoing results, the company has expanded its pretax income disclosure in the table below to adjust for amounts that do not reflect ongoing operations.

$ in millions
 
Fourth Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Reported Pretax Income (Loss)
$29.9
$(0.9)
$30.8
$53.2
$(20.5)
$73.7
Goodwill Impairment1
—
17.1
(17.1)
—
59.1
(59.1)
Asset Impairment2
—
10.9
(10.9)
—
10.9
(10.9)
Acquisition Transaction Expenses
3.1
—
3.1
6.5
—
6.5
Adjusted Pretax Income
$33.0
$27.1
$5.9
$59.7
$49.5
$10.2
1 Recorded in the second and fourth quarters by the Plant Nutrient Group
2 Recorded by the Grain Group on some of its Tennessee assets

Fourth quarter and full-year 2018 results include $3.1 million and $6.5 million of expenses related to the Lansing acquisition and integration, respectively. These adjustments equate to $0.08 and $0.17 in EPS, respectively.

Fourth Quarter Segment Overview

Grain Group Rebounds from Tough Third Quarter

The Grain Group generated pretax income of $25.4 million in the fourth quarter, up $6.2 million or about 30 percent from its fourth quarter 2017 adjusted pretax income results. The group’s EBITDA in the 2018 and 2017 fourth quarters was $32.1 million and $14.3 million, respectively, and it generated adjusted EBITDA of $32.1 million and $25.2 million for the same two periods, respectively.

For purposes of better understanding ongoing results, the company has expanded the Grain Group’s pretax income disclosure in the table below to adjust for amounts that are not reflective of ongoing operations.

$ in millions
Fourth Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Reported Pretax Income (Loss)
$25.4
$8.3
$17.1
$26.7
$12.8
$13.9
Asset Impairment
—
10.9
(10.9)
—
10.9
(10.9)
Adjusted Pretax Income
$25.4
$19.2
$6.2
$26.7
$23.7
$3
EBITDA
$32.1
$14.3
$17.8
$54.6
$39.9
$14.7
Adjusted EBITDA
$32.1
$25.2
$6.9
$54.6
$50.8
$3.8
1 recorded on some of the group’s Tennessee assets sold in early 2018

The table below separates the earnings of the group’s base grain business from those of its grain affiliates. Base grain business earnings originate from grain facilities that the company operates. The grain affiliates’ earnings originate from equity method investments in Lansing Trade Group and Thompsons Limited.

$ in millions
Fourth Quarter
Year to Date
Adjusted Pretax Income
2018
2017
Vs
2018
2017
Vs
Base Grain
$22.4
$15.7
$6.7
$15.0
$8.9
$6.1
Grain Affiliates
3.0
3.5
(0.5)
11.7
3.9
7.8
Total Grain Group
$25.4
$19.2
$6.2
$26.7
$12.8
$13.9

Base grain pretax income was more than 40 percent higher in the fourth quarter compared to 2017 results. Merchandising income improved significantly. While income from corn and soybean ownership positions improved year over year from




expected basis appreciation, those improvements were offset by significantly lower income from narrowing spreads on wheat positions. Trading and risk management services income was lower as market uncertainty reduced trading opportunities.
 
The group’s affiliates recorded lower income in the quarter due to some unusual expenses. Lansing incurred expenses related to closing its sale to The Andersons and recorded an impairment charge on an investment in a small Canadian-based grain company. The company’s share of those two charges accounted for more than the small shortfall from fourth quarter 2017 pretax results.

For the full year, the group earned pretax income of $26.7 million compared to the pretax income of $12.8 million and adjusted pretax income of $23.7 million it earned in the same period last year. Excluding a 2017 asset impairment expense, 2018 base grain income lagged 2017 results due to less wheat income opportunity and less income from trading and risk management. Wheat margins have tightened significantly since the third quarter of 2018. On a positive note, corn and soybean basis recovered and income from food ingredients increased substantially.

Income from affiliates more than offset the shortfall in base income, improving by about $7.8 million; Lansing’s very strong year accounted for most of the improvement.  

The group generated EBITDA of $54.6 million and $39.9 million in 2018 and 2017, respectively. Adjusted EBITDA was $54.6 million and $50.8 million for the full years 2018 and 2017, respectively, increasing 7 percent year over year.

The integration of Lansing Trade Group to form the new Trade Group has gone very well in its first few weeks. The new group has already identified several million dollars of run-rate synergies. Some of these savings are being realized in early 2019 and the capture of synergies will accelerate throughout the year.
 
Ethanol Group Performs Well in Challenging Market Conditions

The Ethanol Group generated pretax income of $5.1 million attributable to The Andersons in the fourth quarter, compared to $6.4 million pretax income attributable to The Andersons for the same period in 2017. The commercial and production teams performed extremely well, hedging forward margin and running the plants efficiently, effectively, and safely in the fourth quarter.

The table below separates the results of the Ethanol Group’s unconsolidated entities of its plants in Albion, Mich.; Clymers, Ind.; and Greenville, Ohio, from the earnings of the Denison, Iowa, plant; the Colwich, Kansas, plant currently under construction; and the group’s management services income.

$ in millions
Fourth Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Equity in Earnings of Affiliates
$3.5
$5.0
$(1.5)
$14.2
$12.2
$2.0
Consolidated Operations and Service Fees
1.5
1.4
0.1
7.7
6.8
0.9
Pretax Income
5.0
6.4
(1.4)
21.9
19.0
2.9
Attributable to Noncontrolling Interests
(0.1)
—
(0.1)
(0.2)
0.1
(0.3)
Ethanol Group Pretax Income Attributable to The Andersons
$5.1
$6.4
$(1.3)
$22.1
$18.9
$3.2

Continued elevated ethanol stocks, lower oil prices and seasonally lower demand were the main contributors to the weaker margin environment. The export market remained on its record pace despite China’s continued absence. The average sales price of ethanol continued to be lower year over year.

Year-over-year results for the group improved by $3.2 million, despite a much weaker margin environment. For the year, the group earned pretax income of $22.1 million compared to $18.9 million last year.

Plant Nutrient Group Has Seasonally Strong Quarter

The Plant Nutrient Group recorded pretax income of $3.8 million in the fourth quarter compared to a pretax loss of $18.0 million and an adjusted pretax loss of $0.9 million in the fourth quarter of 2017. The group’s current quarter EBITDA and adjusted EBITDA were $12.5 million; the adjusted amount was a $5.6 million improvement over to 2017 fourth quarter results.





For purposes of better understanding ongoing results, the company has expanded the Plant Nutrient Group’s pretax income disclosure in the table below to adjust for amounts that are not reflective of ongoing operations.

$ in millions
Fourth Quarter
Year to Date
 
2018
2017
Vs
2018
2017
Vs
Reported Pretax Income (Loss)
$3.8
$(18.0)
$21.8
$12.0
$(45.1)
$57.1
Goodwill Impairment1
—
17.1
(17.1)
—
59.1
(59.1)
Adjusted Pretax Income (Loss)
$3.8
$(0.9)
$4.7
$12.0
$14.0
$(2.0)
EBITDA
$12.5
$(10.2)
$22.7
$45.4
$(12.1)
$57.5
Adjusted EBITDA
$12.5
$6.9
$5.6
$45.4
$47.0
$(1.6)
1 recorded in the second and fourth quarters on the group’s wholesale fertilizer business

Except for the specialty nutrient product lines, the group’s businesses recorded improved year-over-year operating results. A significant increase in margin per ton on somewhat lower primary nutrient volume drove wholesale fertilizer gross profit more than 30 percent higher year over year. In contrast, higher volumes only partially offset weaker margins in the specialty fertilizer product lines. The lawn business completed a record year by improving results by almost $1 million year over year. 

In addition to improving gross profit, the group reduced expenses by about 12 percent year over year.

For the full year, the group generated pretax income of $12.0 million. This result compares favorably to a pretax loss of $45.1 million and adjusted pretax income of $14.0 million in 2017, which included a $4.7 million gain on the sale of the Florida farm centers. Wholesale fertilizer volumes were up slightly, but margins were moderately lower, especially in the specialty nutrient product line. Full-year 2018 adjusted EBITDA was $45.4 million compared to $47.0 million for 2017. Excluding the $4.7 million Florida farm centers gain, full-year adjusted EBITDA increased by 7 percent.

Rail Group Pretax Income Reflects Lower Lease Income and Car Sale Income

The Rail Group earned fourth quarter pretax income of $6.7 million, on par with its results for the same period of the prior year. The group’s fourth quarter 2018 EBITDA was $17.9 million compared to $14.3 million in the comparable 2017 period.

$ in millions
Fourth Quarter
Year to Date
Pretax Income
2018
2017
Vs
2018
2017
Vs
Lease Income
$1.4
$1.9
$(0.5)
$8.1
$8.9
$(0.8)
Car Sales
1.2
3.3
(2.1)
2.4
11.0
(8.6)
Services and Other
4.1
1.5
2.6
6.9
4.9
2.0
Total Rail Group
$6.7
$6.7
$—
$17.4
$24.8
$(7.4)
EBITDA
$17.9
$14.3
$3.6
$57.9
$54.9
$3.0
   Cars on Lease (Hundreds)
21.4
20.0
1.4
20.8
19.8
1.0
   Utilization Rate
94.3%
86.2%
8.1%
90.9%
85.0%
5.9%

Leasing operations earned $1.4 million in the fourth quarter, down $1.1 million sequentially and $0.5 million year over year. Utilization averaged 94.3 percent during the quarter compared to 92.0 percent sequentially and 86.2 percent during the same period last year. The average number of cars on lease rose about 7 percent year over year. Average lease rates and maintenance expenses were flat year over year. Depreciation and interest expenses were up, primarily due to a higher asset base.

The group earned $1.2 million of pretax income on railcar sales in the quarter compared to $3.3 million in the fourth quarter of 2017. The group scrapped more than 300 cars and sold fewer cars outright than in the same 2017 period.

Rail’s service and other pretax income was $4.1 million in the quarter compared to $1.5 million during the same period of 2017. Current quarter results included $2.4 million in income from the sale of 50 barges. Repair sales were higher year over year, and margins were flat.

For the full year, the Rail Group earned pretax income of $17.4 million compared to $24.8 million in 2017. EBITDA was $57.9 million for full-year 2018 compared to $54.9 million for 2017, up 5 percent year over year. The year-over-year decrease in pretax income primarily reflects the costs to scrap long-idled railcars in the second quarter and lower lease rates as leases




expiring at peak rates were renewed at substantially lower lease rates. The railcar market and demand for railcars continued its steady improvement and absolute lease rates improved for most car types.

Other Net Company-Level Expenses Include Lansing Acquisition Expenses

Fourth quarter 2018 unallocated net company-level expenses of $11.1 million were considerably higher than the $4.4 million of net expenses recorded during the fourth quarter of 2017. Current quarter results included $3.1 million, or $0.08 per share, in expenses associated with acquiring and integrating Lansing Trade Group. Fourth quarter 2017 results also included a $2.9 million gain from the sale of former retail store property.
 
Full year unallocated net company-level expenses were $24.8 million, down $7.2 million from 2017 levels. The former amount included $6.5 million, or $0.17 per share, in Lansing acquisition expenses. The 2017 amount included a $7.3 million pretax loss from the closing of the company’s former retail business.

Conference Call

The company will host a webcast on Thursday, February 14, 2019, at 11 a.m. Eastern Standard Time to discuss its performance and provide an updated outlook for 2019. To access the call, please dial 866-439-8514 or 678-509-7568 (participant passcode is 5476505). We recommend that you call 10 minutes before the conference call begins.

To access the webcast, visit https://edge.media-server.com/m6/p/xcio56qn. Complete the four fields as directed and click submit. A replay of the call can also be accessed under the heading "Investors" on the company website at www.andersonsinc.com.

Forward-Looking Statements

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition and the risk factors set forth from time to time in the company’s filings with the Securities and Exchange Commission. Although the Company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

Non-GAAP Measures

This release contains non-GAAP financial measures. The company believes adjusted pretax income, adjusted net income, EBITDA and adjusted EBITDA provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and better period-to-period comparability. Adjusted pretax income, adjusted net income, EBITDA and adjusted EBITDA do not and should not be considered as alternatives to net income or income before income taxes as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within the financial tables provided in the release.

Company Description

Founded in 1947 in Maumee, Ohio, The Andersons, Inc. (Nasdaq: ANDE) is a diversified company rooted in agriculture. The company’s nearly 2,400 employees conduct business from more than 130 locations in the commodity trading, ethanol, plant nutrient and rail sectors. Guided by its Statement of Principles, The Andersons strives to provide extraordinary service to its customers, help its employees improve, support its communities and increase the value of the company. For more information, please visit www.andersonsinc.com.


Investor Relations Contact    
John Kraus    
Director, Investor Relations
Phone: 419-891-6544
E-mail: investorrelations@andersonsinc.com







The Andersons, Inc.
Condensed Consolidated Statements of Operations (unaudited)
 
Three months ended December 31,
 
Twelve months ended December 31,
(in thousands, except per share data)
2018
 
2017
 
2018
 
2017
Sales and merchandising revenues
$
812,662

 
$
1,004,072

 
$
3,045,382

 
$
3,686,345

Cost of sales and merchandising revenues
718,700

 
919,236

 
2,743,377

 
3,367,546

Gross profit
93,962

 
84,836

 
302,005

 
318,799

Operating, administrative and general expenses
67,776

 
67,750

 
257,872

 
286,993

Asset impairment
—

 
10,913

 
6,272

 
10,913

Goodwill impairment
—

 
17,081

 
—

 
59,081

Interest expense
7,848

 
4,095

 
27,848

 
21,567

Other income:
 
 
 
 
 
 
 
  Equity in earnings of affiliates
6,540

 
8,630

 
27,141

 
16,723

  Other income, net
5,053

 
5,479

 
16,002

 
22,507

Income (loss) before income taxes
29,931

 
894

 
53,156

 
(20,525
)
Income tax provision (benefit)
6,263

 
(70,639
)
 
11,931

 
(63,134
)
Net income (loss)
23,668

 
69,745

 
41,225

 
42,609

  Net income (loss) attributable to the noncontrolling interests
(85
)
 
25

 
(259
)
 
98

Net income (loss) attributable to The Andersons, Inc.
$
23,753

 
$
69,720

 
$
41,484

 
$
42,511

 
 
 
 
 
 
 
 
Per common share:
 
 
 
 
 
 
 
Basic earnings attributable to The Andersons, Inc. common shareholders
$
0.84

 
$
2.48

 
$
1.47

 
$
1.51

Diluted earnings attributable to The Andersons, Inc. common shareholders
$
0.84

 
$
2.47

 
$
1.46

 
$
1.50

Dividends paid
$
0.170

 
$
0.165

 
$
0.665

 
$
0.645









The Andersons, Inc.
Reconciliation to Adjusted Net Income (unaudited)
(in thousands, except per share data)
Three months ended December 31,
 
Twelve months ended December 31,
 
2018
 
2017
 
2018
 
2017
Net income (loss) attributable to The Andersons, Inc.
$
23,753

 
$
69,720

 
$
41,484

 
$
42,511

Items impacting other income, net of tax:
 
 
 
 
 
 
 
Goodwill impairment
—

 
16,607

 
—

 
58,607

Asset impairment
—

 
6,766

 
—

 
6,766

Tax reform impact
—

 
(74,227
)
 
—

 
(74,227
)
Acquisition costs
2,291

 
—

 
4,889

 
—

Total adjusting items
2,291


(50,854
)

4,889


(8,854
)
Adjusted net income attributable to The Andersons, Inc.
$
26,044

 
$
18,866

 
$
46,373

 
$
33,657

 
 
 
 
 
 
 
 
Diluted earnings attributable to The Andersons, Inc. common shareholders
$
0.84

 
$
2.47

 
$
1.46

 
$
1.5

 
 
 
 
 
 
 
 
Impact on diluted earnings per share
0.08

 
(1.8
)
 
0.17

 
(0.31
)
Adjusted diluted earnings per share
$
0.92

 
$
0.67


$
1.63


$
1.19






The Andersons, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
December 31, 2018
 
December 31, 2017
Assets
 
 
 
Current assets:
 
 
 
  Cash and cash equivalents
$
22,593

 
$
34,919

  Accounts receivable, net
207,285

 
183,238

  Inventories
690,804

 
648,703

  Commodity derivative assets - current
51,421

 
30,702

  Other current assets
50,703

 
63,790

  Assets held for sale
392

 
37,859

Total current assets
1,023,198

 
999,211

 
 
 
 
Other assets:
 
 
 
  Commodity derivative assets - noncurrent
480

 
310

  Other assets, net
127,503

 
131,474

  Equity method investments
242,326

 
223,239

 
370,309

 
355,023

Rail Group assets leased to others, net
521,785

 
423,443

Property, plant and equipment, net
476,711

 
384,677

Total assets
$
2,392,003

 
$
2,162,354

 
 
 
 
Liabilities and equity
 
 
 
Current liabilities:
 
 
 
  Short-term debt
$
205,000

 
$
22,000

  Trade and other payables
462,535

 
503,571

  Customer prepayments and deferred revenue
32,533

 
59,710

  Commodity derivative liabilities – current
32,647

 
29,651

  Accrued expenses and other current liabilities
79,046

 
69,579

  Current maturities of long-term debt
21,589

 
54,205

Total current liabilities
833,350

 
738,716

 
 
 
 
Other long-term liabilities
32,184

 
33,129

Commodity derivative liabilities – noncurrent
889

 
825

Employee benefit plan obligations
22,542

 
26,716

Long-term debt, less current maturities
496,187

 
418,339

Deferred income taxes
130,087

 
121,730

Total liabilities
1,515,239

 
1,339,455

Total equity
876,764

 
822,899

Total liabilities and equity
$
2,392,003

 
$
2,162,354







The Andersons, Inc.
Segment Data (unaudited)
 
Grain
 
Ethanol
 
Plant Nutrient
 
Rail
 
Other
 
Total
Three months ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
450,777

 
$
175,065

 
$
147,625

 
$
39,195

 
$
—

 
$
812,662

Gross profit
52,485

 
3,537

 
23,955

 
13,985

 
—

 
93,962

Equity in earnings of affiliates
3,023

 
3,517

 
—

 
—

 
—

 
6,540

Other income, net
761

 
492

 
595

 
2,605

 
600

 
5,053

Income (loss) before income taxes
25,448

 
5,009

 
3,791

 
6,734

 
(11,051
)
 
29,931

Income (loss) attributable to the noncontrolling interests
—

 
(85
)
 
—

 
—

 
—

 
(85
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
25,448

 
$
5,094

 
$
3,791

 
$
6,734

 
$
(11,051
)
 
$
30,016

Three months ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
641,876

 
$
174,548

 
$
136,881

 
$
50,491

 
$
276

 
$
1,004,072

Gross profit
44,976

 
4,609

 
21,554

 
14,030

 
(333
)
 
84,836

Equity in earnings of affiliates
3,645

 
4,985

 
—

 
—

 
—

 
8,630

Other income, net
612

 
20

 
514

 
368

 
3,965

 
5,479

Income (loss) before income taxes
8,347

 
6,429

 
(18,047
)
 
6,733

 
(4,356
)
 
(894
)
Income (loss) attributable to the noncontrolling interest
—

 
25

 
—

 
—

 
—

 
25

Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
8,347

 
$
6,404

 
$
(18,047
)
 
$
6,733

 
$
(4,356
)
 
$
(919
)
Twelve months ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
1,436,979

 
$
743,690

 
$
690,536

 
$
174,177

 
$
—

 
$
3,045,382

Gross profit
129,854

 
18,405

 
98,901

 
54,845

 
—

 
302,005

Equity in earnings of affiliates
12,932

 
14,209

 
—

 
—

 
—

 
27,141

Other income, net
2,959

 
650

 
2,495

 
3,516

 
6,382

 
16,002

Income (loss) before income taxes
26,676

 
21,856

 
12,030

 
17,379

 
(24,785
)
 
53,156

Income (loss) attributable to the noncontrolling interests
—

 
(259
)
 
—

 
—

 
—

 
(259
)
Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
26,676

 
$
22,115

 
$
12,030

 
$
17,379

 
$
(24,785
)
 
$
53,415

Twelve months ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Revenues from external customers
$
2,106,464

 
$
708,063

 
$
651,824

 
$
172,123

 
$
47,871

 
$
3,686,345

Gross profit
131,388

 
19,857

 
104,645

 
52,459

 
10,450

 
318,799

Equity in earnings of affiliates
4,509

 
12,214

 
—

 
—

 
—

 
16,723

Other income, net
3,658

 
54

 
5,092

 
2,632

 
11,071

 
22,507

Income (loss) before income taxes
12,844

 
18,976

 
(45,121
)
 
24,798

 
(32,022
)
 
(20,525
)
Income (loss) attributable to the noncontrolling interest
—

 
98

 
—

 
—

 
—

 
98

Income (loss) before income taxes attributable to The Andersons, Inc. (a)
$
12,844

 
$
18,878

 
$
(45,121
)
 
$
24,798

 
$
(32,022
)
 
$
(20,623
)
(a) Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income.




The Andersons, Inc.
Reconciliation to EBITDA and Adjusted EBITDA
(unaudited)
(in thousands)
 Grain
 
 Ethanol
 
 Plant Nutrient
 
 Rail
 
 Other
 
 Total
Three months ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
25,448

 
$
5,009

 
$
3,791

 
$
6,734

 
$
(11,051
)
 
$
29,931

Income (loss) attributable to the noncontrolling interests
—

 
(85
)
 
—

 
—

 
—

 
(85
)
Income (loss) before income taxes attributable to The Andersons, Inc.
25,448

 
5,094

 
3,791

 
6,734

 
(11,051
)
 
30,016

Interest expense
2,828

 
(793
)
 
2,102

 
3,689

 
22

 
7,848

Depreciation and amortization
3,801

 
1,577

 
6,613

 
7,492

 
2,855

 
22,338

Earnings before interest, taxes, depreciation and amortization (EBITDA)
32,077

 
5,878

 
12,506

 
17,915

 
(8,174
)
 
60,202

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
—

 
—

 
—

 
—

 
3,054

 
3,054

Total adjusting items
—

 
—


—


—


3,054

 
3,054

Adjusted EBITDA
$
32,077

 
$
5,878

 
$
12,506

 
$
17,915

 
$
(5,120
)
 
$
63,256

 
 
 
 
 
 
 
 
 
 
 
 
Three months ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
8,347

 
$
6,429

 
$
(18,047
)
 
$
6,733

 
$
(4,356
)
 
$
(894
)
Income (loss) attributable to the noncontrolling interests
—

 
25

 
—

 
—

 
—

 
25

Income (loss) before income taxes attributable to The Andersons, Inc.
8,347

 
6,404

 
(18,047
)
 
6,733

 
(4,356
)
 
(919
)
Interest expense
1,399

 
(15
)
 
1,404

 
1,536

 
(229
)
 
4,095

Depreciation and amortization
4,537

 
1,504

 
6,405

 
6,011

 
3,409

 
21,866

Earnings before interest, taxes, depreciation and amortization (EBITDA)
14,283

 
7,893

 
(10,238
)
 
14,280

 
(1,176
)
 
25,042

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
      Goodwill impairment
—

 
—

 
17,081

 
—

 
—

 
17,081

      Asset impairment
10,913

 
—

 
—

 
—

 
—

 
10,913

Total adjusting items
10,913

 
—

 
17,081

 
—

 
—

 
27,994

Adjusted EBITDA
$
25,196

 
$
7,893

 
$
6,843

 
$
14,280

 
$
(1,176
)
 
$
53,036





(in thousands)
 Grain
 
 Ethanol
 
 Plant Nutrient
 
 Rail
 
 Other
 
 Total
Twelve months ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
26,676

 
$
21,856

 
$
12,030

 
$
17,379

 
$
(24,785
)
 
$
53,156

Income (loss) attributable to the noncontrolling interests
—

 
(259
)
 
—

 
—

 
—

 
(259
)
Income (loss) before income taxes attributable to The Andersons, Inc.
26,676

 
22,115

 
12,030

 
17,379

 
(24,785
)
 
53,415

Interest expense
11,843

 
(1,888
)
 
6,499

 
11,377

 
17

 
27,848

Depreciation and amortization
16,062

 
6,136

 
26,871

 
29,164

 
12,064

 
90,297

Earnings before interest, taxes, depreciation and amortization (EBITDA)
54,581

 
26,363

 
45,400

 
57,920

 
(12,704
)
 
171,560

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
—

 
—

 
—

 
—

 
6,518

 
6,518

Total adjusting items
—

 
—

 
—

 
—

 
6,518

 
6,518

Adjusted EBITDA
$
54,581

 
$
26,363

 
$
45,400

 
$
57,920

 
$
(6,186
)
 
$
178,078

Twelve months ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
12,844

 
$
18,976

 
$
(45,121
)
 
$
24,798

 
$
(32,022
)
 
$
(20,525
)
Income (loss) attributable to the noncontrolling interests
—

 
98

 
—

 
—

 
—

 
98

Income (loss) before income taxes attributable to The Andersons, Inc.
12,844

 
18,878

 
(45,121
)
 
24,798

 
(32,022
)
 
(20,623
)
Interest expense
8,320

 
(67
)
 
6,420

 
7,023

 
(129
)
 
21,567

Depreciation and amortization
18,757

 
5,970

 
26,628

 
23,081

 
11,976

 
86,412

Earnings before interest, taxes, depreciation and amortization (EBITDA)
39,921

 
24,781

 
(12,073
)
 
54,902

 
(20,175
)
 
87,356

Adjusting items impacting EBITDA:
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment
—

 
—

 
59,081

 
—

 
—

 
59,081

Asset impairment
10,913

 
—

 
—

 
—

 
—

 
10,913

Total adjusting items
10,913

 
—

 
59,081

 
—

 
—

 
69,994

Adjusted EBITDA
$
50,834

 
$
24,781

 
$
47,008

 
$
54,902

 
$
(20,175
)
 
$
157,350