Andersons, Inc. Achieves Historic Fourth Quarter Performance

Financial Performance Announcement for Q4, 2023: Andersons, Inc.

In a recent disclosure of financial results for the quarter ending December 31, 2023, Andersons, Inc. showcased remarkable achievements:

Key Highlights from Q4:

  • The company reported a net income from continuing operations attributable to The Andersons of $51 million, equivalent to $1.49 per diluted share. On an adjusted basis, this amounted to $55 million, or $1.59 per diluted share.
  • EBITDA stood at $131 million for the quarter, with adjusted EBITDA reaching $135 million.
  • Trade segment reported pretax income of $44 million and adjusted pretax income of $47 million.
  • Renewables segment achieved a record pretax income of $60 million and pretax income attributable to the company of $33 million.
  • The company maintained a strong balance sheet, resulting in a cash balance of $644 million as of December 31, 2023.

President and CEO Pat Bowe expressed satisfaction with the results, particularly highlighting the excellent performance of the Renewables segment, which saw record ethanol production and strong corn-to-ethanol yields across its four ethanol plants. He also noted positive outcomes in the Trade segment, particularly in eastern grain assets, and expressed optimism regarding growth opportunities in the Renewables space.

Cash, Liquidity, and Long-Term Debt Management:

Brian Valentine, Executive Vice President and CFO, emphasized the company’s strong operating cash flows throughout the quarter, resulting in a significant cash position and minimal short-term borrowings. Notably, the company’s long-term debt to adjusted EBITDA ratio of 1.5 times remained well below the target of 2.5 times, indicating a solid financial position.

Segment Overview for Q4:

Trade Segment:

  • The Trade segment reported strong fourth-quarter performance driven by elevated margins in core grain assets and solid merchandising results.
  • Despite some challenges in certain regions, the segment’s premium ingredients business experienced significant improvements, driven by recent acquisitions and growth capital investments.
  • Trade’s fourth-quarter adjusted EBITDA was $62 million, compared to $72 million in the same period of 2022.

Renewables Segment:

  • The Renewables segment achieved another outstanding quarter, with record pretax income driven by favorable ethanol board crush margins and increased production across ethanol plants.
  • Fourth-quarter EBITDA for Renewables reached $73 million, compared to $36 million in Q4 2022.

Nutrient & Industrial Segment:

  • Nutrient & Industrial segment showed improvement compared to the prior year, primarily due to higher volumes in core agriculture products.
  • However, adjusted results included expenses related to a growth project that did not materialize.
  • EBITDA for Nutrient & Industrial was $10 million in Q4 2023, comparable to the same period in 2022.

Overall, despite challenges and shifts in commodity markets, Andersons, Inc. remains optimistic about its future growth prospects across its various segments, supported by a strong balance sheet and strategic investments.

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