Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 09/30/2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 000-20557 THE ANDERSONS, INC. (Exact name of the registrant as specified in its charter) Ohio 34-1562374 (State of incorporation o ...

The Andersons, Inc. (NASDAQ:ANDE) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET Company Participants Mike Hoelter - VP, Corporate Controller and IR Pat Bowe - President and CEO Brian Valentine - EVP and CFO Conference Call Participants Ben Bienvenu - Stephens Brian Wright - ROTH Capital Partners Ben Klieve - Lake Street Capital Operator Good morning ladies and gentlemen, welcome to the Anderson's 2023 Second Quarter Earnings Conference Call. My name is Anthony, and I'll be your coordinator for ...

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents unaudited consolidated financial statements, detailing Q2 2023 sales, net income, and improved H1 operating cash flow [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details Q2 2023 sales and net income, with six-month results impacted by an $87.2 million asset impairment Consolidated Statements of Operations Highlights (In thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Sales and merchandising revenues** | $4,020,183 | $4,450,617 | $7,901,421 | $8,428,571 | | **Gross profit** | $221,937 | $230,841 | $369,948 | $350,376 | | **Asset impairment** | $0 | $0 | $87,156 | $0 | | **Income before income taxes** | $104,418 | $118,153 | $39,417 | $128,760 | | **Net income attributable to The Andersons, Inc.** | $55,046 | $79,805 | $40,296 | $85,307 | | **Diluted earnings per share (Continuing Ops)** | $1.61 | $2.34 | $1.18 | $2.52 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of **$3.57 billion** as of June 30, 2023, primarily reflecting reduced inventories and accounts receivable Condensed Consolidated Balance Sheet Highlights (In thousands) | Account | June 30, 2023 | Dec 31, 2022 | June 30, 2022 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $96,293 | $115,269 | $86,035 | | **Inventories** | $990,789 | $1,731,725 | $1,618,326 | | **Total current assets** | $2,537,265 | $3,465,953 | $3,572,879 | | **Total assets** | $3,570,046 | $4,607,996 | $4,737,175 | | **Short-term debt** | $102,752 | $272,575 | $1,161,428 | | **Total current liabilities** | $1,393,239 | $2,521,322 | $2,577,576 | | **Total liabilities** | $2,131,564 | $3,178,227 | $3,319,969 | | **Total equity** | $1,438,482 | $1,429,769 | $1,417,206 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to a **$207.4 million** source in H1 2023, primarily due to favorable working capital changes Cash Flow Summary (In thousands) | Activity | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $207,404 | $(721,799) | | **Net cash used in investing activities** | $(71,673) | $(30,094) | | **Net cash (used in) provided by financing activities** | $(154,987) | $622,113 | | **Decrease in cash and cash equivalents** | $(18,976) | $(130,409) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the discontinued Rail segment, an **$87.2 million** impairment, ELEMENT deconsolidation, and a post-quarter acquisition - The Rail segment's operating results are classified as discontinued operations for all periods presented following the sale of the business[22](index=22&type=chunk) - A **$87.2 million** impairment charge was recorded in Q1 2023 for the ELEMENT, LLC joint venture ethanol plant due to operational and market challenges, with **49%** attributed to noncontrolling interests[30](index=30&type=chunk) - On April 18, 2023, ELEMENT was placed into receivership, leading the company to deconsolidate the entity and recognize a net pretax gain of **$6.5 million**[34](index=34&type=chunk)[87](index=87&type=chunk)[94](index=94&type=chunk) - On July 10, 2023, the company acquired ACJ International LLC, a pet food ingredient company, for **$41.4 million**[96](index=96&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, emphasizing gross profit, and analyzes segment results, liquidity, and capital resources [Segment Performance](index=29&type=section&id=Segment%20Performance) This section analyzes Q2 2023 segment performance, noting mixed results in Trade, strong Renewables, and improved Nutrient & Industrial segments - **Trade:** Gross profit declined in Q2 despite strong merchandising, as agricultural inventory throughput decreased from Q2 2022[102](index=102&type=chunk) - **Renewables:** Q2 results were strong due to rallying crush margins and robust co-product values, outperforming the prior year when excluding a **$17.6 million** USDA grant and mark-to-market gains from 2022[104](index=104&type=chunk) - **Nutrient & Industrial:** Gross profit improved by **$4 million** in Q2 as higher sales volumes offset margin compression from declining market prices[108](index=108&type=chunk) [Comparison of Operating Results](index=33&type=section&id=Comparison%20of%20Operating%20Results) This section compares Q2 and H1 operating results by segment, highlighting the impact of the Renewables segment's **$87.2 million** asset impairment charge Income (Loss) Before Income Taxes by Segment (In thousands) | Segment | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Trade** | $4,990 | $23,666 | $44,354 | $27,335 | | **Renewables** | $66,604 | $67,776 | $(15,909) | $73,738 | | **Nutrient & Industrial** | $42,565 | $38,311 | $32,127 | $49,054 | | **Other** | $(9,741) | $(11,600) | $(21,155) | $(21,367) | | **Total** | **$104,418** | **$118,153** | **$39,417** | **$128,760** | - The H1 2023 Renewables segment loss was driven by an **$87.2 million** asset impairment charge related to the ELEMENT ethanol plant[132](index=132&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased to **$1.14 billion**, driven by lower commodity prices, with strong liquidity and **$1.74 billion** available for borrowing - Working capital from continuing operations increased to **$1.14 billion** at June 30, 2023, from **$984.0 million** a year earlier[139](index=139&type=chunk)[140](index=140&type=chunk) - The decrease in both current assets and current liabilities is largely attributed to the stabilization of agricultural commodity prices in 2023 compared to significant price increases in 2022[140](index=140&type=chunk)[141](index=141&type=chunk) - The company expects to invest approximately **$125 million to $150 million** in property, plant and equipment in 2023[144](index=144&type=chunk) - Total borrowing capacity was **$1.87 billion**, with **$1.74 billion** available as of June 30, 2023[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes in market risk, including commodity and interest rate risk, during the first six months of 2023 - There were no material changes in market risk, specifically commodity and interest rate risk, during the first six months of 2023[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2023[150](index=150&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the second quarter of 2023[151](index=151&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Management believes there is no reasonable possibility of a material loss from current legal proceedings beyond recorded accruals - In management's opinion, there is not a reasonable possibility of a material loss from current legal proceedings beyond what has been accrued[153](index=153&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company refers to its 2022 Form 10-K for detailed risk factors, indicating no new material risks are presented in this report - The company refers to the risk factors disclosed in its 2022 Form 10-K and does not present any new material risks in this filing[154](index=154&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **2,113** shares in Q2 2023 under its **$100 million** plan, with **$85.5 million** remaining available Share Repurchase Activity (Q2 2023) | Month | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2023 | 0 | N/A | | May 2023 | 2,113 | $35.95 | | June 2023 | 0 | N/A | | **Total** | **2,113** | **$35.95** | - As of June 30, 2023, **$85.5 million** remained available for share repurchases under the current plan, which expires in August 2024[155](index=155&type=chunk)[156](index=156&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) The company will continue annual say-on-pay votes, and a treasurer entered a Rule 10b5-1 plan to sell company stock - The company will continue to hold an annual advisory vote on named executive officer compensation[157](index=157&type=chunk) - Treasurer Brian K. Walz entered into a Rule 10b5-1 plan to sell up to **3,414** shares of common stock between August 2023 and August 2024[157](index=157&type=chunk)

The Andersons, Inc. (NASDAQ:ANDE) Q1 2023 Results Conference Call May 3, 2023 11:00 AM ET Company Participants Mike Hoelter - Vice President, Corporate Controller and Investor Relations Pat Bowe - President and Chief Executive Officer Brian Valentine - Executive Vice President and Chief Financial Officer Conference Call Participants Ben Bienvenu - Stephens Ben Klieve - Lake Street Capital Markets Eric Larson - Seaport Research Partners Operator Good morning, and welcome to the Andersons 2023 First Quarter E ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 03/31/2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 000-20557 THE ANDERSONS, INC. (Exact name of the registrant as specified in its charter) Ohio 34-1562374 (State of incorporation o ...

Financial Performance - The Trade segment achieved sales and merchandising revenues of $13,047.5 million in 2022, up from $9,304.4 million in 2021, marking a significant increase of approximately 40%[101] - The Renewables segment reported sales of $3,178.5 million in 2022, compared to $2,440.8 million in 2021, reflecting a growth of about 30%[102] - The Plant Nutrient segment's operating results decreased slightly in 2022, with sales of $1,099.3 million compared to $866.9 million in 2021, indicating a growth of approximately 27% despite a decline in volumes[101] - Total sales and merchandising revenues for 2022 reached $17,325.4 million, a 37% increase from $12,612.1 million in 2021[158] - Gross profit for 2022 was $684.2 million, up from $592.7 million in 2021, reflecting a 15.4% increase[158] - Net income attributable to The Andersons, Inc. for 2022 was $131.1 million, compared to $104.0 million in 2021, representing a 26.3% increase[158] - Earnings per share attributable to common shareholders for continuing operations was $3.53 in 2022, up from $2.99 in 2021, a 17.9% increase[158] - Comprehensive income attributable to The Andersons, Inc. for 2022 was $150.4 million, an increase from $117.3 million in 2021[161] Expenses and Liabilities - Operating, administrative, and general expenses rose by $22.7 million, primarily due to $18.1 million in higher labor and benefits costs[105] - Interest expense increased by $18.9 million, attributed to rising interest rates and higher borrowings related to new merchandising locations[105] - Current liabilities from continuing operations increased by $70.8 million, primarily due to increases in current maturities of long-term debt[115] - The company had outstanding long-term debt of $541.4 million (recourse) and $64.2 million (non-recourse) with $46.3 million and $63.8 million payable within 12 months respectively[125] - Future interest payments associated with recourse long-term debt total $165.6 million, with $28.1 million payable within 12 months[126] - The company had fixed operating lease payment obligations of $67.5 million, with $28.1 million payable within 12 months[127] Cash Flow and Investments - Net cash provided by operating activities was $287.1 million in 2022, compared to cash used of $51.1 million in 2021[119] - Capital expenditures for 2022 totaled $108.3 million, with expectations to invest approximately $125 to $150 million in 2023[120] - The company paid $24.6 million in dividends in 2022, an increase from $23.7 million in 2021, with a declared cash dividend of $0.185 per common share for January 2023[122] - Total current assets increased to $3,465,953 in 2022, up from $3,372,328 in 2021, reflecting a growth of 2.8%[163] - Total liabilities decreased to $3,178,227 in 2022, down 2.5% from $3,261,515 in 2021[163] - Total shareholders' equity increased to $1,429,769 in 2022, up from $1,307,704 in 2021, representing a growth of 9.3%[163] Inventory and Asset Management - Agricultural inventories on hand were 129.7 million bushels as of December 31, 2022, down from 187.0 million bushels in 2021, indicating a decrease of approximately 30.6%[92] - The Company reported a total inventory of $1,731.7 million as of December 31, 2022, down from $1,814.5 million in 2021, reflecting a decrease of approximately 4.5%[206] - The Company incurred inventory damage charges of $17.3 million in 2022, with $16.2 million related to a fire at a Michigan grain asset[207] - The Company recorded depreciation expense on property, plant, and equipment amounting to $110.6 million for the year ended December 31, 2022[209] - The Company recorded impairment charges of $9.0 million for property, plant, and equipment in December 2022 related to a Nebraska grain asset[210] Taxation and Compliance - The effective tax rate for 2022 was approximately 20.3%, compared to 18.2% in 2021[260] - The company recognized a federal income tax provision of $25,376 in 2022, up from $19,646 in 2021[260] - Unrecognized tax benefits as of December 31, 2022, totaled $79.2 million, including $60.3 million associated with federal and state R&D credits[269] - The company has $47.3 million of state net operating loss carryforwards beginning to expire in 2023[265] - The gross unrecognized tax benefits may change within the next twelve months by a range of $18.6 million to $40.7 million due to ongoing tax examinations[268] Risk Management - The company has established controls to manage and limit risk exposure related to commodity prices through daily reviews of position limits[139] - The company utilizes interest rate swaps to manage its mix of fixed and variable interest rate debt, effectively limiting interest rate volatility[145] - The company is a significant consumer of short-term debt, with a capacity of approximately $2.0 billion, and is exposed to interest rate increases impacting profitability[145] Segment Performance - The Trade business segment includes commodity merchandising and terminal grain elevator operations, contributing significantly to overall revenue[285] - The Renewables business segment produced and sold ethanol and co-products, indicating a focus on sustainable energy solutions[285] - The Plant Nutrient business segment manufactures and distributes agricultural inputs, highlighting the company's commitment to agricultural support[285]

The Andersons, Inc. (NASDAQ:ANDE) Q4 2022 Earnings Conference Call February 15, 2023 11:00 AM ET Company Participants Mike Hoelter - Vice President, Corporate Controller and Investor Relations Pat Bowe - President and Chief Executive Officer Brian Valentine - Executive Vice President and Chief Financial Officer Conference Call Participants Ben Bienvenu - Stephens Inc Eric Larson - Seaport Research Partners Operator Good morning. And welcome to The Andersons Fourth Quarter 2022 Earnings Conference Call. [Ope ...

The Andersons, Inc. (NASDAQ:ANDE) Q3 2022 Earnings Conference Call November 2, 2022 11:00 AM ET Company Participants Mike Hoelter - VP, Corporate Controller & IR Pat Bowe - President & CEO Brian Valentine - EVP & CFO Conference Call Participants Ben Bienvenu - Stephens Inc. Ben Klieve - Lake Street Capital Markets Ken Zaslow - BMO Eric Larson - Seaport Research Partners Operator Good morning, ladies and gentlemen. And welcome to the Andersons 2022 Third Quarter Earnings Conference Call. My name is Joe, and ...

The Andersons, Inc. (NASDAQ:ANDE) Q2 2022 Earnings Conference Call August 3, 2022 11:00 AM ET Company Participants Mike Hoelter - VP, Corporate Controller & IR Pat Bowe - President & CEO Brian Valentine - EVP & CFO Conference Call Participants Ken Zaslow - BMO Ben Klieve - Lake Street Capital Markets Eric Larson - Seaport Research Partners Operator Good morning, and welcome to The Andersons 2022 Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] ...