The Andersons(ANDE) - 2024 Q1 - Quarterly Results

Financial Performance - The Andersons reported a net income of $6 million, or $0.16 per diluted share, for Q1 2024, compared to a net loss of $14.8 million in Q1 2023[3]. - EBITDA for the quarter was $51 million, a significant increase from a loss of $16.2 million in the same quarter last year[3]. - Net income for the three months ended March 31, 2024, was $12,665, a significant improvement from a net loss of $59,117 in the same period last year[20]. - Adjusted net income attributable to The Andersons, Inc. for the three months ended March 31, 2024, was $5,595, compared to $6,796 in the same period last year, a decrease of approximately 17.6%[22]. - Net income for the three months ended March 31, 2024, was $12,665,000, a significant decrease from a net loss of $59,117,000 in the same period last year[25]. - EBITDA for the same period was $51,439,000, compared to a negative EBITDA of $16,156,000 in the prior year, indicating a strong recovery[25]. - Adjusted EBITDA for the three months ended March 31, 2024, was $51,174,000, reflecting a substantial improvement from $55,278,000 in the same period last year[25]. Segment Performance - The Renewables segment achieved a pretax income of $23 million, up from a pretax loss of $83 million in Q1 2023, with adjusted EBITDA of $32 million compared to $22 million last year[9][10]. - The Trade segment recorded adjusted pretax income of $9 million, down from $24 million in Q1 2023, with adjusted EBITDA decreasing to $24 million from $44 million[6][8]. - Nutrient & Industrial reported a pretax loss of $2 million, an improvement from a loss of $10 million in Q1 2023, with EBITDA rising to $7 million from a loss of $1 million[11]. Revenue and Sales - Total sales and merchandising revenues for Q1 2024 were $2.72 billion, a decrease from $3.88 billion in Q1 2023, with gross profit of $128.3 million compared to $148.0 million last year[17]. - Total sales and merchandising revenues for the three months ended March 31, 2024, were $2,718,217, compared to $3,881,238 for the same period in 2023, reflecting a decrease of approximately 30%[23]. - Gross profit for the three months ended March 31, 2024, was $128,320, down from $148,011 in the prior year, indicating a decline of about 13.3%[23]. Cash Flow and Liquidity - Cash from operating activities was $240 million in Q1 2024, down from $334 million in Q1 2023, while cash spent on capital projects increased slightly to $27 million[5]. - The company maintains a strong cash position of $283.9 million and an undrawn $1.5 billion credit facility, well below its long-term debt to EBITDA target of less than 2.5 times[5]. - Cash and cash equivalents at the end of the period were $283,902, a significant increase from $70,853 at the end of the same period last year[20]. - Net cash used in operating activities for the three months ended March 31, 2024, was $(239,627), an improvement from $(333,535) in the same period last year[20]. - Cash from operations before working capital changes improved to $48,409,000 in Q1 2024 from $40,639,000 in Q1 2023, indicating better operational efficiency[30]. Tax and Liabilities - The effective income tax rate for the quarter was 9%, with an anticipated full-year adjusted effective rate of approximately 18% - 22%[12]. - Total current liabilities as of the latest reporting period were $1,083,284, down from $1,636,331 in the previous year, a reduction of approximately 33.7%[19]. - Total liabilities amounted to $1,785,423, compared to $2,338,620 in the prior year, reflecting a decrease of about 23.6%[19]. Cost Management - Interest expense decreased to $6,522,000 in Q1 2024 from $16,625,000 in Q1 2023, showing improved financial management[25]. - Interest expense for the trailing twelve months was $36,764,000, down from $62,615,000 the previous year, reflecting improved cost management[27]. - The company reported total adjusting items impacting EBITDA of $(265,000) for Q1 2024, compared to $71,434,000 in Q1 2023, indicating a reduction in one-time costs[25]. - Depreciation and amortization expenses were $30,949,000 for the three months ended March 31, 2024, slightly lower than $32,220,000 in the same period last year[25]. Strategic Initiatives - The company is pursuing growth opportunities in Renewables, including capital projects to lower carbon intensity and partnerships for sourcing lower-carbon commodities[3]. - The company experienced a significant reduction in insured inventory recoveries, impacting the financials positively in the current quarter[28].