Andersons, Inc. (ANDE) 10-Q Quarterly Report August 2019


•	Trade Group reports pretax income of $23.7 million and adjusted pretax income of $27.0 million on strong corn and wheat basis appreciation and cash trading.


•	Ethanol Group records pretax income of $2.6 million in a challenging margin environment.


•	Plant Nutrient Group records pretax income of $15.9 million despite significantly lower primary and specialty nutrient sales volumes.


•	Rail Group earns $3.2 million of pretax income on steady railcar leasing income.

“Extremely wet weather in many of our core grain origination markets benefited our Trade Group but hurt both our Ethanol and Plant Nutrient Groups during the quarter. The resulting market conditions illustrated perfectly the value of the more diversified, newly integrated portfolio we now operate in our Trade Group,” said President and CEO Pat Bowe. “We were able to capitalize on merchandising opportunities caused by grain and feed ingredient price volatility. However, we’re concerned about the implications of a smaller corn crop on the utilization of our eastern grain assets for the remainder of this year and into 2020.”




$ in millions, except per share amounts	Q2 2019	Q2 2018	Variance	YTD 2019	YTD 2018	Variance
Pretax Income (Loss) Attributable to the Company¹	$40.9	$29.3	$11.6	$21.5	$27.3	$(5.8)
Adjusted Pretax Income (Loss)¹	$44.1	$29.3	$14.8	$36.3	$27.3	$9.0
Trade (Grain) Group	$27.0	$8.7	$18.3	$21.1	$7.5	$13.6
Ethanol Group	$2.6	$7.3	$(4.7)	$5.2	$10.4	$(5.2)
Plant Nutrient Group	$15.9	$15.1	$0.8	$12.0	$16.2	$(4.2)
Rail Group	$3.2	$0.9	$2.3	$7.5	$4.9	$2.6
Other	$(4.6)	$(2.8)	$(1.8)	$(9.5)	$(11.7)	$2.2
Net Income (Loss)¹	$29.9	$21.5	$8.4	$15.9	$19.8	$(3.9)
Adjusted Net Income (Loss)¹	$32.3	$21.5	$10.8	$27.0	$19.8	$7.2
Diluted EPS	$0.91	$0.76	$0.15	$0.48	$0.70	$(0.22)
Adjusted Diluted EPS	$0.98	$0.76	$0.22	$0.82	$0.70	$0.12
EBITDA	$85.4	$59.7	$25.7	$114.0	$87.3	$26.7
Adjusted EBITDA	$88.6	$59.7	$28.9	$128.9	$87.3	$41.6

¹ Excludes net income (loss) attributable to the noncontrolling interests of ($0.5) in Q2 2019, ($0.1) in Q2 2018, ($0.6) for year-to-date 2019 and ($0.4) for year-to-date 2018.

“The Trade Group’s adjusted results were strong, as basis appreciation and good merchandising results helped offset weakness in the food and specialty ingredients units,” Bowe continued. “The Ethanol Group remained profitable in a considerably compressed margin environment. As expected, the Plant Nutrient Group’s results were hurt by substantially lower primary and specialty nutrient volumes due to the wet spring, but margins were stronger, resulting in improved year-over-year pretax income. The Rail Group performed well, primarily due to solid leasing results.”

The following information was filed by Andersons, Inc. (ANDE) on Tuesday, August 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/821026/000082102619000054/ande2019063010-q.htm

View differences made from one quarter to another to evaluate Andersons, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Andersons, Inc..

Continue

Assess how Andersons, Inc.'s management team is paid from their Annual Proxy

Andersons, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Revenue

Financial

M & A

Other

Filter Subcategory:

All

Product

Expense

Earnings

Income

Dividend

Other

Inside Andersons, Inc.'s 10-Q Quarterly Report:

Revenue - Product Highlight
Therefore, increases or decreases in prices of the agricultural commodities that the business deals in will have a relatively equal impact on sales and cost of sales and a much less significant impact on gross profit.

Financial - Expense Highlight
Other Operating, administrative and general expenses decreased $1.4 million due to severance and other IT implementation costs reflected in 2018 which did not recur in 2019.
Financial - Expense Highlight
The prior period results also include an impairment charge on idle fleet assets Interest expense increased $1.5 million due to higher debt balances and rising interest rates.
Financial - Expense Highlight
Included in the increased expenses are several purchase accounting related items, such as, $4.8 million of stock-based compensation expense, $4.8 million of incremental depreciation and amortization expense and $1.2 million of other transaction-related costs.
Revenue - Product Highlight
The following table describes our Rail Group asset positions at June 30, 2019: Method of Control Financial Statement Units Owned - railcars available for sale On balance sheet - current 289 Owned - railcar assets leased to others On balance sheet - non-current 21,363 Railcars leased from financial intermediaries Off balance sheet 2,101 Railcars in non-recourse arrangements Off balance sheet 170 Total Railcars 23,923 Locomotive assets leased to others On balance sheet - non-current 24 Locomotives leased from financial intermediaries Off balance sheet 4 Total Locomotives 28 Barge assets leased from financial intermediaries Off balance sheet 15 Total Barges 15 In addition, we manage 1,027 railcars for third party customers or owners for which we receive a fee.
Other - Other
Conversely, in periods of declining...Read more
Financial - Expense
Operating, administrative and general expenses...Read more
Financial - Expense
Operating, administrative and general expenses...Read more
Financial - Expense
Included in the increased expenses...Read more
Financial - Earnings
Gross profit decreased by $1.6...Read more
Financial - Expense
Interest expense increased $2.8 million...Read more
Other - Other
Forward Looking Statements The following...Read more
Financial - Expense
Cost of sales and merchandising...Read more
Financial - Expense
Operating, administrative and general expenses...Read more
Revenue - Product
Consistent with the higher sales...Read more
M & A - Other
Cash used for the acquisition...Read more
Financial - Expense
Interest expense increased $6.3 million...Read more
Other - Other
The increase in cash used...Read more
Financial - Earnings
The Ethanol Group expects the...Read more
Financial - Income
Income Taxes For the three...Read more
Financial - Income
Income Taxes For the six...Read more
Other - Other
Trade Group The Trade Group's...Read more
Revenue - Product
This increase was driven by...Read more
Financial - Expense
Other Operating, administrative and general...Read more
Financial - Expense
Operating, administrative and general expenses...Read more
Financial - Expense
Interest expense increased $14.3 million...Read more
Financial - Expense
Interest expense decreased $0.6 million...Read more
Financial - Expense
Interest expense decreased $1.4 million...Read more
Financial - Shares
Equity in earnings of affiliates...Read more
Financial - Shares
Equity in earnings of affiliates...Read more
Revenue - Product
Lower average sales prices from...Read more
Financial - Income
Other income, net includes a...Read more
Financial - Income
The decrease in effective tax...Read more
Financial - Expense
Operating, administrative and general expenses...Read more
Financial - Expense
Operating, administrative and general expenses...Read more
Financial - Earnings
The gross profit increase was...Read more
M & A - Other
This increase was related to...Read more
Revenue - Product
Sales and merchandising revenues increased...Read more
Financial - Earnings
As a result, gross profit...Read more
Financial - Earnings
As a result, gross profit...Read more
Financial - Income
In 2018, the Company recorded...Read more
Financial - Income
In 2018, the Company recorded...Read more
Financial - Dividend
On May 10, 2019 we...Read more
Financial - Earnings
Ethanol Group The Ethanol Group's...Read more
Other - Other
See also the discussion below...Read more
Other - Other
Total Trade storage capacity, including...Read more
Other - Other
Additionally, the Company focused on...Read more
Revenue - Product
Storage capacity at our wholesale...Read more
Financial - Expense
The results include expenses and...Read more
Financial - Expense
Cost of sales and merchandising...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Andersons, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 10.2: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 95: Exhibit 95

Ticker: ANDE
CIK: 821026
Form Type: 10-Q Quarterly Report
Accession Number: 0000821026-19-000054
Submitted to the SEC: Thu Aug 08 2019 1:29:47 PM EST
Accepted by the SEC: Thu Aug 08 2019
Period: Sunday, June 30, 2019
Industry: Wholesale Farm Product Raw Materials