The Andersons(ANDE) - 2024 Q4 - Annual Report

Financial Performance - The company reported total sales and merchandising revenues of $11,257.5 million for the year ended December 31, 2024, down from$14,750.1 million in 2023 [126]. - Sales and merchandising revenues decreased to $11,257,548 in 2024 from$14,750,112 in 2023, representing a decline of approximately 23.8% [190]. - Gross profit for 2024 was $693,926, a slight decrease from$745,363 in 2023, indicating a gross margin of 6.2% [190]. - Net income from continuing operations increased to $170,700 in 2024, up from$132,529 in 2023, reflecting a growth of approximately 28.8% [190]. - Earnings per share attributable to The Andersons, Inc. common shareholders increased to $3.35 in 2024 from$3.00 in 2023, marking an increase of 11.7% [190]. - The company reported a comprehensive income of $160,420 in 2024, compared to$134,910 in 2023, reflecting an increase of about 19% [193]. - Net income for the year ended December 31, 2024, was $170.7 million, an increase from$132.5 million in 2023, representing a growth of approximately 28.8% [201]. Segment Performance - The Trade segment's sales and merchandising revenues decreased by $2,804 million, while cost of sales decreased by$2,797.7 million, resulting in a slight gross profit decrease of 6.3 million [128]. - The Renewables segment shipped 793,554 thousand gallons of ethanol in 2024, an increase from 774,550 thousand gallons in 2023, and E-85 shipments rose to 47,073 thousand gallons from 42,270 thousand gallons [117]. - The Nutrient & Industrial segment's total tons sold decreased to 1,865 thousand tons in 2024 from 1,938 thousand tons in 2023, with Ag Supply Chain sales down to 1,288 thousand tons from 1,376 thousand tons [121]. - Renewables segment operating results increased by 48.3 million from the prior year, but gross profit decreased by $33.2 million due to a$578.3 million drop in sales and merchandising revenues attributed to a 22% decline in ethanol prices [131][134]. - Nutrient & Industrial segment results decreased by $7.1 million, with sales and merchandising revenues down$110.3 million and gross profit down $11.9 million, primarily due to a 5$833,141 thousand for 2024, a decrease of 11.7% from $943,397 thousand in 2023 [281]. Cash Flow and Assets - Net cash provided by operating activities was$331.5 million in 2024, a significant decrease from $946.8 million in 2023, largely due to favorable changes in operating assets and liabilities in the prior year [145]. - Total current assets increased by$43.3 million to $2,850.3 million, while current liabilities rose by$94.8 million to $1,731.2 million, resulting in a working capital decrease of$51.5 million [142][143]. - The Company retained $561.8 million in cash on hand as of December 31, 2024, reflecting strong cash generation from core businesses despite a decrease in operating cash flow [145]. - Total assets rose to$4,121,314 in 2024, compared to $3,855,007 in 2023, representing an increase of approximately 6.9$561,771 in 2024 from $643,854 in 2023, a decline of about 12.7$201.7 million of accounts receivable in 2024, compared to $311.6 million in 2023, indicating a decrease of about 35.4$646.8 million as of December 31, 2024, with future interest payments totaling $162.2 million [155][156]. - Total liabilities increased to$2,521,478 in 2024 from $2,338,620 in 2023, an increase of approximately 7.8$635,387 thousand as of December 31, 2024, compared to $585,137 thousand in 2023 [174]. - The Company had a total short-term borrowing capacity of$2,161.7 million as of December 31, 2024, with $1,991.3 million available for borrowing [255]. - The Company’s long-term debt maturities include$36.1 million due in 2025 and $194.9 million due in 2029 [261]. Expenses and Costs - Operating, administrative, and general expenses increased by$7.9 million compared to the prior year, primarily due to $12.8 million in additional costs related to the Skyland acquisition [129]. - Interest expense decreased by$10.6 million due to reduced short-term borrowings resulting from lower commodity prices [130]. - Total interest paid decreased to $31.1 million in 2024 from$47.0 million in 2023, marking a decline of approximately 33.5% [256]. - The effective tax rate for 2024 was 15.0%, down from 21.8% in 2023 [289]. - The company reported net income taxes paid of $31.5 million in 2024, compared to$45.7 million in 2023 [289]. Inventory and Capital Expenditures - Agricultural inventories on hand increased to 174.2 million bushels as of December 31, 2024, compared to 127.6 million bushels in the previous year, with total storage capacity rising to approximately 291 million bushels [114]. - Capital expenditures for 2024 totaled $149.2 million, with expectations to invest approximately$175 million to $200 million in property, plant, and equipment in 2025 [148]. - As of December 31, 2024, total inventories increased to$1,286.8 million from $1,166.7 million in 2023, representing a growth of approximately 10.3$0.195 per common share for January 2025, compared to $0.185 per share in January 2023 [151]. - The company declared dividends of$0.765 per common share in 2024, totaling $26.1 million, compared to$25.2 million in 2023 [201]. Risk Management - The Company uses forward purchase and sale contracts and derivatives to manage commodity inventories, with fair value adjustments recorded as part of cost of sales [164]. - The Company enters into currency exchange contracts to mitigate risks from foreign currency fluctuations, primarily involving the Euro, British pound, and other currencies [173]. - The Company has established "unhedged" position limits to mitigate price risk associated with commodity contracts and inventories [214]. Other Comprehensive Income - The total Accumulated Other Comprehensive Income (AOCI) ending balance decreased to $12.585 million in 2024 from$22.865 million in 2023, reflecting a significant loss in currency translation adjustments [302]. - The company reported a net loss of $10.888 million in other comprehensive income before reclassifications for currency translation adjustments in 2024, compared to a gain of$5.622 million in 2023 [302].