The Andersons, Inc. (NASDAQ:ANDE) Q1 2022 Earnings Conference Call May 4, 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 Ken Zaslow - Bank of Montreal Ben Klieve - Lake Street Capital Markets Eric Larson - Seaport Research Partners Operator Good morning, ladies and gentlemen, and welcome to The Andersons 2022 First Quarter Earnings Conference Call. My name is Matthe ...

The Andersons, Inc. (NASDAQ:ANDE) Q4 2021 Earnings Conference Call February 16, 2022 11:00 AM ET Company Participants Michael Hoelter - IR Patrick Bowe - CEO Brian Valentine - CFO Conference Call Participants Ben Bienvenu - Stephens Kenneth Zaslow - BMO Capital Markets Eric Larson - Seaport Global Ryan Meyers - Lake Street Capital Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate ...

The Andersons, Inc. (NASDAQ:ANDE) Q3 2021 Earnings Conference Call November 3, 2021 11:00 AM ET Company Participants Michael Hoelter - IR Patrick Bowe - CEO Brian Valentine - CFO Conference Call Participants Kenneth Zaslow - BMO Capital Markets Benjamin Bienvenu - Stephens Inc. Eric Larson - Seaport Global Operator Good day, ladies and gentlemen, and welcome to The Andersons, 2021 Third Quarter Earnings Conference Call. At this time, all participant lines are in a listen-only mode. Later, we will conduct a ...

Financial Performance Highlights - Sales and merchandising revenues increased significantly to $32737 million in Q2 2021, compared to $18902 million in Q2 2020, a rise of $13835 million[11] - Gross profit increased to $1740 million in Q2 2021, from $1063 million in Q2 2020, an increase of $677 million[11] - Income before income taxes attributable to The Andersons, Inc increased to $541 million in Q2 2021, compared to $182 million in Q2 2020, a growth of $359 million[11] - Adjusted EBITDA increased to $1181 million in Q2 2021, from $700 million in Q2 2020, an increase of $481 million[11] - Diluted earnings per share (EPS) increased to $130 in Q2 2021, from $092 in Q2 2020, an increase of $038[11] Segment Performance - Trade segment revenues increased to $22979 million in Q2 2021, compared to $13512 million in Q2 2020, a rise of $9467 million[18] - Ethanol segment revenues increased to $6165 million in Q2 2021, compared to $2237 million in Q2 2020, a rise of $3928 million[21] - Plant Nutrient segment revenues increased to $3214 million in Q2 2021, compared to $2798 million in Q2 2020, a rise of $416 million[24] - Rail segment revenues increased to $379 million in Q2 2021, compared to $354 million in Q2 2020, a rise of $25 million[27] Outlook - The company anticipates strong merchandising opportunities due to expected volatility, a large grain harvest, and high demand[29]

Financial Data and Key Metrics Changes - The company reported net income of $43.5 million or $1.30 per diluted share for Q2 2021, compared to $30.4 million or $0.92 per diluted share in Q2 2020, representing a significant year-over-year increase [8][9] - Adjusted EBITDA for Q2 2021 was $118 million, up from $70 million in Q2 2020, with trailing 12 months adjusted EBITDA exceeding $340 million [5][9] - Revenues for Q2 2021 were $3.3 billion, compared to $1.9 billion in Q2 2020, indicating strong growth [8] Business Segment Data and Key Metrics Changes - The Trade Group reported adjusted pre-tax income of $14.1 million in Q2 2021, up from $1.4 million in Q2 2020, with adjusted EBITDA nearly doubling to $32.7 million [12] - The Ethanol segment achieved pre-tax income of $23.5 million, a significant increase from $900,000 in Q2 2020, with EBITDA rising to $47.2 million from $10.3 million [13] - The Plant Nutrient business recorded pre-tax income of $24 million, up from $19.4 million in Q2 2020, with EBITDA increasing to $31.6 million [14] - The Rail business saw pre-tax earnings of $3.1 million, compared to $2.6 million in the same period last year, with EBITDA remaining stable at $15.2 million [15] Market Data and Key Metrics Changes - The company noted strong demand for U.S. crops, with expectations of high global demand continuing into 2022, supporting world grain trade and prices above historical averages [16] - Crop conditions in key draw areas are reported to be excellent, while some regions face dry conditions, impacting overall production [16][17] Company Strategy and Development Direction - The company remains focused on growth opportunities in sustainable agriculture, particularly in carbon markets and renewable diesel [54] - Management emphasized disciplined risk management and the pursuit of growth through potential mergers and acquisitions [54] - The company is optimistic about the performance of its Plant Nutrient business and expects solid fall demand due to tight supplies [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the agricultural portfolio, anticipating strong merchandising and elevation opportunities due to favorable crop conditions [16] - The company expects continued volatility in grain markets but believes experienced traders will capitalize on these conditions [22] - Management highlighted the importance of managing high corn prices and the potential impact on ethanol margins in the upcoming quarters [30][42] Other Important Information - The company generated strong cash flow from operations of $93.1 million in Q2 2021, significantly up from $61.8 million in Q2 2020 [10] - Long-term debt has been reduced by nearly $70 million since year-end, with a focus on further debt repayments [11] Q&A Session Summary Question: Outlook for Trade Business and Comparability to Last Year - Management noted strong opportunities in the Trade Group, with good crop conditions in key areas and potential for comparable or better performance in the second half of 2021 compared to 2020 [22][24] Question: Ethanol Shipment Approval Process - Management indicated that shipments to California will ramp up once the necessary approvals are received, emphasizing the importance of waiting for official approval before shipping [26][27] Question: Ethanol Market Outlook - Management expressed optimism about gasoline demand and the ethanol market, despite potential challenges from high corn prices and the impact of the delta variant on demand [30][42] Question: Crop Production and Trading Opportunities - Management highlighted the good crop conditions in their regions, which may create trading opportunities, while acknowledging challenges in other areas due to dryness [33][34] Question: Renewable Diesel Market Participation - Management discussed their involvement in the renewable diesel market, emphasizing partnerships and supply agreements with producers [39][40] Question: Cost Savings and Future Outlook - Management confirmed that cost savings initiatives have been successful, with a focus on maintaining discipline in cost management while pursuing growth opportunities [56]

Financial Performance - The Company reported total sales and merchandising revenues of $3,273.726 million for the three months ended June 30, 2021, compared to $2,297.869 million in the same period of the previous year, reflecting a significant increase [109]. - The gross profit for the Company was $174.044 million for the three months ended June 30, 2021, compared to $77.831 million in the same period of 2020, indicating a substantial improvement in profitability [109]. - Total sales and merchandising revenues for the six months ended June 30, 2021, reached $5,909,455 thousand, compared to $5,612,699 thousand in the same period last year [119]. - Gross profit for the six months ended June 30, 2021, was $296,756 thousand, an increase from the previous year's $169,396 thousand [120]. - Sales and merchandising revenues for the Trade Group increased by $946.7 million, resulting in a net gross profit impact of $18.4 million due to improved merchandising results and increased commodity prices [112]. - Ethanol Group's sales and merchandising revenues rose by $392.8 million, leading to a gross profit increase of $37.3 million, primarily driven by improved ethanol margins and higher coproduct sales [114]. - Plant Nutrient Group's sales and merchandising revenues increased by $41.6 million, resulting in a gross profit increase of $12.1 million, supported by higher spring demand and strong grower income [115]. Operational Efficiency - Average utilization rates in the Rail segment increased from 88.3% in Q2 2020 to 89.7% in Q2 2021, indicating improved operational efficiency [106]. - Ethanol Group operating results increased by $49.6 million year-over-year, with sales and merchandising revenues up by $522.7 million, leading to a gross profit increase of $75.2 million [123]. - Plant Nutrient Group operating results rose by $14.3 million, with sales and merchandising revenues increasing by $85.9 million, resulting in a gross profit increase of $24.1 million [124]. - Rail Group operating results increased by $4.3 million, with sales and merchandising revenues up by $6.4 million, although gross profit decreased by $0.5 million due to increased cost of sales [125]. Inventory and Demand - Agricultural inventories on hand at June 30, 2021, were 85.8 million bushels, up from 74.4 million bushels at June 30, 2020, showing a year-over-year increase of approximately 18.6% [98]. - The Ethanol Group shipped 186,396 thousand gallons in the second quarter of 2021, a 56% increase from 119,528 thousand gallons in the same period of 2020 [102]. - The Company anticipates continued merchandising opportunities into harvest due to supply scarcity impacting overall prices, with expectations of high prices and strong elevation margins continuing into 2022 [98]. - The Ethanol Group experienced improved crush margins and overall ethanol demand, reflecting a recovery from the previous year's COVID-19 impact [99]. - The Plant Nutrient Group expects continued higher fertilizer prices and strong demand into the fall application season, driven by favorable weather and strong grower income [101]. - The Company has maintained a positive long-term outlook for agricultural commodities, driven by market volatility from supply scarcity and strong demand [96]. Expenses and Liabilities - Operating, administrative, and general expenses increased by $6.5 million, mainly due to higher incentive compensation costs from improved operating results [113]. - Interest expense rose by $2.4 million due to higher group borrowings on the Company's short-term line of credit compared to the prior year [113]. - Current liabilities increased by $763.8 million, primarily due to higher short-term debt and trade payables, reflecting rising agricultural commodity prices [129]. - The company recorded an income tax expense of $10.6 million for the three months ended June 30, 2021, with an effective tax rate of 18.7% [118]. - The company recorded an income tax expense of $16.4 million for the six months ended June 30, 2021, with an effective tax rate of 21.6%, compared to a tax benefit of $13.7 million and a rate of 30.5% in the prior year [127]. Cash Flow and Investments - Net cash used in operating activities was $245.5 million for the first six months of 2021, compared to cash provided of $145.5 million in the same period of 2020 [131]. - Financing activities provided cash of $267.6 million for the six months ended June 30, 2021, largely due to increased short-term borrowings to meet working capital needs [133]. - The company expects to invest approximately $100 million in property, plant, and equipment in 2021, with about 60% allocated for maintaining facilities [132]. - The company paid $11.7 million in dividends in the first six months of 2021, slightly up from $11.5 million in the prior year, maintaining a dividend of $0.175 per common share [134].

Financial Data and Key Metrics Changes - The company reported net income of $15.1 million or $0.45 per diluted share for Q1 2021, a significant recovery from a net loss of $37.7 million or $1.15 per diluted share in Q1 2020 [10] - Adjusted EBITDA for Q1 2021 was $80.2 million, compared to $11.2 million in Q1 2020, indicating strong performance across all business segments [10] - Revenues increased to $2.6 billion in Q1 2021 from $1.9 billion in Q1 2020, reflecting a year-over-year growth of approximately 37% [10] Business Line Data and Key Metrics Changes - The trade segment reported adjusted pretax income of $14.3 million in Q1 2021, compared to an adjusted pretax loss of $8.7 million in Q1 2020, driven by strong merchandising results [13] - The ethanol segment achieved pre-tax income of $2.9 million in Q1 2021, a significant improvement from the loss in the same period last year, with EBITDA rising to $22 million from a loss of $17.5 million [14][16] - The plant nutrient business recorded pre-tax income of $8.5 million, its best first quarter since 2008, with EBITDA increasing to $16 million, up over $9 million from the previous year [16] - The rail business reported pre-tax earnings of $4.9 million, up from $1 million in Q1 2020, with EBITDA increasing to $17 million from $14.4 million [17] Market Data and Key Metrics Changes - The company noted robust export demand, particularly from China, with USDA projecting record imports of feed grains [18] - The current market volatility is seen as providing significant opportunities, particularly in the ag sector, with tight supplies expected to persist into the fall harvest [19] Company Strategy and Development Direction - The company is optimistic about its prospects for 2021, particularly in the ag sector, and plans to capitalize on improving margins in its ethanol and plant nutrient businesses [20][21] - The focus remains on managing risks while taking advantage of market opportunities, particularly in grain merchandising and ethanol production [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the recovery in gasoline demand and the potential for continued strength in ethanol margins [20] - The outlook for the plant nutrient business is positive, with expectations of strong performance continuing through the spring fertilizer application season [21] - Management highlighted the importance of monitoring planting progress and growing conditions as key factors influencing future performance [19][55] Other Important Information - The company generated cash flow from operations before changes in working capital of $89 million during the quarter, a significant increase from $12 million in Q1 2020 [11] - Total long-term debt was reduced by $35 million since year-end, with a focus on further debt repayments in 2021 [12] Q&A Session Summary Question: Ethanol recovery outlook - Management expects a slow build in ethanol demand recovery, influenced by market conditions and driving demand [24][25] Question: Corn oil impact on ethanol margins - A $0.10 increase in corn oil prices adds approximately $13 million to the bottom line, indicating significant sensitivity [26][27] Question: Sustainability of plant nutrient business - Management believes the strong performance in the plant nutrient business is sustainable due to robust demand and improved farmer income [32][34] Question: Rail business lease rates improvement - Lease rates are expected to improve slowly, with a recovery dependent on broader economic conditions [56] Question: Crop demand and supply setup - Management highlighted tight crop conditions and strong farmer selling, with expectations for a solid planting season [52][73]

The Andersons, Inc. (NASDAQ:ANDE) Q4 2020 Earnings Conference Call February 17, 2021 11:00 AM ET Company Participants John Kraus - Director of IR Pat Bowe - President, CEO & Director Brian Valentine - Executive VP & CFO Conference Call Participants Ben Bienvenu - Stephens Inc Ken Zaslow - Bank of Montreal Eric Larson - Seaport Global Ben Klieve - National Securities Operator Ladies and gentlemen, thank you for standing by, and welcome to The Andersons 2020 Fourth Quarter Earnings Conference Call. [Operator ...