Alabama
The Andersons, Inc. Reports First Quarter Results; Plant Nutrient Sets Record
MAUMEE, Ohio, May 3, 2022 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2022.
First Quarter Highlights:
- Company reported net income attributable to The Andersons from continuing operations of $6.1 million, or $0.18 per diluted share
- EBITDA from continuing operations was $55.8 million for the quarter
- Plant Nutrient reported record first quarter pretax income of $10.7 million
- Renewables had a strong quarter with pretax income of $5.5 million despite an $8.3 million mark to market loss, most of which is expected to reverse in Q2
- Trade reported pretax income of $3.7 million amid global disruption and against higher 2021 results; amassing strong grain ownership positions at low basis values
- Amended and extended credit agreement, expanding capacity and extending maturity date to 2027
"The grain markets were impacted by the extreme run-up in futures prices resulting from the war in Ukraine. This drove grain basis values sharply lower. I'm proud of the merchandising teams as they worked through this unprecedented price volatility which allowed us to take larger ownership positions at good basis values," said President and CEO Pat Bowe. "Plant Nutrient continued its strong run by setting its second consecutive quarterly earnings record. This strong performance resulted from well-positioned inventory and particularly strong specialty liquid results. In Renewables, production volume increased for both ethanol and corn oil. Renewable feedstocks and co-product merchandising were well above expectations."
"We continue to believe that we are well-positioned in all businesses for the remainder of 2022. We are closely monitoring the weather-related planting delays in both corn and soybeans. While progress is being made, we are behind the five-year national average for this date and expect planting activities to ramp up quickly as soon as fields allow it. We have an opportunity to earn good elevation margins on our grain position. Ethanol margins have strengthened as we entered the spring maintenance season along with seasonal increases in driving demand and expectations for an increased U.S. export program. Our renewable feedstock business continues to grow and we are exploring further opportunities to improve corn oil production and quality from our plants," added Bowe. "Fertilizer prices and farm income both remain very high, and while producers are feeling the impact of high input costs, commodity prices still support fertilizer application. We continue to receive good support from our suppliers in this time of tight stocks. Supply remains a factor in our industry and market prices reflect reduced global stocks for most fertilizers and grains. Our teams are executing well and remain focused on customer needs and operational excellence."
$ in millions, except per share amounts | |||
YTD 2022 | YTD 2021 | Variance | |
Pretax Income Attributable to the Company1,2 | $ 10.2 | $ 16.0 | $ (5.8) |
Adjusted Pretax Income (Loss) Attributable to the Company1,2 | 10.2 | 16.4 | (6.2) |
Trade1 | 3.7 | 14.3 | (10.6) |
Renewables | 5.5 | 2.9 | 2.6 |
Plant Nutrient | 10.7 | 8.5 | 2.2 |
Other1 | (9.8) | (9.3) | (0.5) |
Net Income Attributable to the Company2 | 6.1 | 11.6 | (5.5) |
Adjusted Net Income Attributable to the Company1,2 | 6.1 | 12.0 | (5.9) |
Diluted Earnings Per Share (EPS)2 | 0.18 | 0.35 | (0.17) |
Adjusted Diluted EPS1,2 | 0.18 | 0.36 | (0.18) |
EBITDA1,2 | 55.8 | 62.7 | (6.9) |
Adjusted EBITDA1,2 | $ 55.8 | $ 63.2 | $ (7.4) |
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. 2 Measure represents only continuing operations of the Company. | |||
First Quarter Segment Overview
Trade Results Decline on Market Disruptions; Large Ownership Position Accumulated
The Trade segment recorded pretax income of $3.7 million for the quarter compared to adjusted pretax income of $14.3 million in the first quarter of 2021. Despite strong performance in international merchandising, dramatic increases in futures prices drove quarter-over-quarter negative basis variance in domestic grain positions of nearly $5 million. Capitalizing on the high commodity prices, Trade has accumulated strong grain positions at good basis values. Additionally, good 2022 results in propane merchandising did not match last year's outsized performance during the unseasonably frigid February weather in the central U.S.
Planting for the Midwest is expected to ramp up quickly, despite a slow start. Continued merchandising opportunities and strong elevation margins are expected through the remainder of the year as global stocks are not projected to recover even with an excellent harvest. The outlook for the grain elevator assets is improved with storage income earned on wheat inventory. Expected basis appreciation into harvest will drive improved elevation margins.
Trade's first quarter EBITDA was $20.8 million, compared to first quarter 2021 adjusted EBITDA of $32.5 million on lower earnings.
Renewables Results Improve to $5.5 million on Better Crush Margins; Co-Product Values and Merchandising Remain Strong
The Renewables segment reported pretax income attributable to the company of $5.5 million in the first quarter compared to pretax income attributable to the company of $2.9 million realized in the same period in 2021.
The quarter-over-quarter improvement was driven by improved margins at all ethanol plants. Strong feed and distillers corn oil values continued. Profitable third-party trading of ethanol, DDGs, and renewable feedstocks more than doubled last year's first quarter result. Improving industry fundamentals include increased seasonal demand along with production declines during the spring maintenance season and expected increases in exports. Ethanol stocks remain high compared to last year's very low levels but board crush has improved over the last few weeks.
Renewables had record first quarter EBITDA of $24.4 million in 2022, up $2.4 million from 2021 first quarter EBITDA of $22.0 million.
Plant Nutrient Posts Record First Quarter Results; Second Consecutive Quarterly Record
The Plant Nutrient segment posted record pretax income of $10.7 million, compared to 2021's pretax income of $8.5 million. Strong margins more than offset a volume decrease for most of our agricultural fertilizers, particularly within specialty liquids low-salt starters and wholesale nutrients. With high grain prices and tight fertilizer supply, this is expected to continue into the second quarter. Plant labor and logistical challenges lowered results for our turf and specialty products. Plant Nutrient's record first quarter EBITDA was $18.8 million compared to 2021 first quarter EBITDA of $16.0 million.
Income Taxes; Corporate
The company has recorded income taxes from continuing operations at an effective rate of 38.7% for the first quarter due to the non-deductibility of mark-to-market adjustments and the tax treatment of non-controlling interests. We anticipate a full-year effective rate of approximately 22%-25%.
Conference Call
The company will host a webcast on Wednesday, May 4, 2022, at 11 a.m. Eastern Daylight Time, to discuss its performance and provide its outlook for the remainder of 2022. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 3679351). It is recommended that you call 10 minutes before the conference call begins.
To access the webcast, click on the link: https://app.webinar.net/OzegpVQ9Jr1. Complete the six fields as directed and click "Register." A replay of the call can also be accessed under the heading "Investors" on the company's refreshed website at www.andersonsinc.com.
Forward-Looking Statements
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, the COVID-19 pandemic, the ongoing economic impacts from the war in Ukraine and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company believes that adjusted pretax income (loss) from continuing operations, pretax income (loss) attributable to the company from continuing operations, adjusted pretax income (loss) attributable to the company from continuing operations, adjusted net income attributable to the company from continuing operations, adjusted diluted earnings per share from continuing operations; earnings before interest, taxes, depreciation, and amortization (or EBITDA); EBITDA from continuing operations; adjusted EBITDA; adjusted EBITDA from continuing operations; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to net income from continuing operations, pretax income from continuing operations or income (loss) before income taxes from continuing operations, diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders from continuing operations and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.
Company Description
The Andersons, Inc., celebrating 75 years of service and named to Forbes® lists of America's Best Employers for 2022 and Best Employers for Diversity 2022 as well as America's Most Trusted Companies 2022 by Newsweek®, is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and plant nutrient sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.
The Andersons, Inc. | |||
Three months ended March 31, | |||
(in thousands, except per share data) | 2022 | 2021 | |
Sales and merchandising revenues | $ 3,977,954 | $ 2,594,719 | |
Cost of sales and merchandising revenues | 3,858,419 | 2,481,278 | |
Gross profit | 119,535 | 113,441 | |
Operating, administrative and general expenses | 101,987 | 96,998 | |
Interest expense, net | 10,859 | 9,989 | |
Other income, net: | |||
Equity in earnings (losses) of affiliates, net | (244) | 1,794 | |
Other income, net | 4,162 | 5,868 | |
Income before income taxes from continuing operations | 10,607 | 14,116 | |
Income tax provision from continuing operations | 4,103 | 4,361 | |
Net income from continuing operations | 6,504 | 9,755 | |
Income (loss) from discontinued operations, net of income taxes | (554) | 3,507 | |
Net income | 5,950 | 13,262 | |
Net income (loss) attributable to noncontrolling interests | 447 | (1,845) | |
Net income attributable to The Andersons, Inc. | $ 5,503 | $ 15,107 | |
Earnings per share attributable to The Andersons, Inc. common shareholders: | |||
Basic earnings (loss): | |||
Continuing operations | $ 0.18 | $ 0.35 | |
Discontinued operations | (0.02) | 0.11 | |
$ 0.16 | $ 0.46 | ||
Diluted earnings (loss): | |||
Continuing operations | $ 0.18 | $ 0.35 | |
Discontinued operations | (0.02) | 0.10 | |
$ 0.16 | $ 0.45 | ||
The Andersons, Inc. | |||||
(in thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 36,381 | $ 216,444 | $ 35,393 | ||
Accounts receivable, net | 1,050,259 | 835,180 | 677,118 | ||
Inventories | 1,950,303 | 1,814,538 | 1,287,637 | ||
Commodity derivative assets current | 769,916 | 410,813 | 317,939 | ||
Current assets held-for-sale | 20,255 | 20,885 | 37,136 | ||
Other current assets | 113,589 | 74,468 | 81,666 | ||
Total current assets | 3,940,703 | 3,372,328 | 2,436,889 | ||
Other assets: | |||||
Goodwill | 129,342 | 129,342 | 131,542 | ||
Other intangible assets, net | 111,055 | 117,137 | 133,198 | ||
Right of use assets, net | 51,821 | 52,146 | 34,966 | ||
Other assets held-for-sale | 45,264 | 43,169 | 629,228 | ||
Other assets, net | 92,506 | 69,068 | 60,964 | ||
Total other assets | 429,988 | 410,862 | 989,898 | ||
Property, plant and equipment, net | 772,245 | 786,029 | 839,950 | ||
Total assets | $ 5,142,936 | $ 4,569,219 | $ 4,266,737 | ||
Liabilities and equity | |||||
Current liabilities: | |||||
Short-term debt | $ 1,449,768 | $ 501,792 | $ 915,205 | ||
Trade and other payables | 741,124 | 1,199,324 | 534,660 | ||
Customer prepayments and deferred revenue | 384,723 | 358,119 | 161,696 | ||
Commodity derivative liabilities current | 216,836 | 128,911 | 91,448 | ||
Current maturities of long-term debt | 54,158 | 32,256 | 42,824 | ||
Current liabilities held-for-sale | 10,200 | 13,379 | 26,362 | ||
Accrued expenses and other current liabilities | 205,958 | 230,148 | 145,921 | ||
Total current liabilities | 3,062,767 | 2,463,929 | 1,918,116 | ||
Long-term lease liabilities | 31,419 | 31,322 | 21,210 | ||
Long-term debt, less current maturities | 571,181 | 600,487 | 877,583 | ||
Deferred income taxes | 68,437 | 71,127 | 173,481 | ||
Other long-term liabilities held-for-sale | 14,738 | 16,119 | 45,172 | ||
Other long-term liabilities | 77,173 | 78,531 | 48,624 | ||
Total liabilities | 3,825,715 | 3,261,515 | 3,084,186 | ||
Total equity | 1,317,221 | 1,307,704 | 1,182,551 | ||
Total liabilities and equity | $ 5,142,936 | $ 4,569,219 | $ 4,266,737 | ||
The Andersons, Inc. | |||
Three months ended March 31, | |||
(in thousands) | 2022 | 2021 | |
Operating Activities | |||
Net income from continuing operations | $ 6,504 | $ 9,755 | |
Income (loss) from discontinued operations, net of income taxes | (554) | 3,507 | |
Net income | 5,950 | 13,262 | |
Adjustments to reconcile net income to cash used in operating activities: | |||
Depreciation and amortization | 34,377 | 47,504 | |
Bad debt expense, net | 1,255 | (1,686) | |
Equity in (earnings) losses of affiliates, net of dividends | 244 | (1,794) | |
Gain on sales of assets, net | (81) | (2,635) | |
Stock-based compensation expense | 1,818 | 1,990 | |
Deferred federal income tax | (6,947) | (2) | |
Other | 2,885 | 4,579 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (215,012) | (33,476) | |
Inventories | (136,820) | 5,007 | |
Commodity derivatives | (277,761) | (53,295) | |
Other current and non-current assets | (38,810) | 16,740 | |
Payables and other current and non-current liabilities | (446,096) | (441,921) | |
Net cash used in operating activities | (1,074,998) | (445,727) | |
Investing Activities | |||
Purchases of property, plant and equipment and capitalized software | (20,722) | (16,919) | |
Proceeds from sale of assets | 72 | 385 | |
Purchases of investments | (1,333) | (2,800) | |
Purchases of Rail assets | (3,186) | (2,611) | |
Proceeds from sale of Rail assets | 248 | 5,383 | |
Other | | 832 | |
Net cash used in investing activities | (24,921) | (15,730) | |
Financing Activities | |||
Net receipts under short-term lines of credit | 796,209 | 260,160 | |
Proceeds from issuance of short-term debt | 350,000 | 250,000 | |
Payments of short-term debt | (200,000) | | |
Proceeds from issuance of long-term debt | | 89,700 | |
Payments of long-term debt | (7,566) | (125,884) | |
Contributions from noncontrolling interest owner | 2,450 | 1,960 | |
Distributions to noncontrolling interest owner | (9,980) | | |
Payments of debt issuance costs | (7,310) | (1,225) | |
Dividends paid | (6,144) | (5,839) | |
Proceeds from exercises of stock options | 5,024 | | |
Other | (2,926) | (1,110) | |
Net cash provided by financing activities | 919,757 | 467,762 | |
Effect of exchange rates on cash and cash equivalents | 99 | (35) | |
Increase (decrease) in cash and cash equivalents | (180,063) | 6,270 | |
Cash and cash equivalents at beginning of period | 216,444 | 29,123 | |
Cash and cash equivalents at end of period | $ 36,381 | $ 35,393 | |
The Andersons, Inc. | ||||
Three months ended March 31, | ||||
(in thousands, except per share data) | 2022 | 2021 | ||
Net income from continuing operations | $ 6,504 | $ 9,755 | ||
Net income (loss) attributable to noncontrolling interests | 447 | (1,845) | ||
Net income from continuing operations attributable to The Andersons, Inc. | 6,057 | 11,600 | ||
Adjustments: | ||||
Transaction related stock compensation | | 483 | ||
Income tax impact of adjustments | | (121) | ||
Total adjusting items, net of tax | | 362 | ||
Adjusted net income from continuing operations attributable to The Andersons, Inc. | $ 6,057 | $ 11,962 | ||
Diluted earnings from continuing operations attributable to The Andersons, Inc. common shareholders | $ 0.18 | $ 0.35 | ||
Impact on diluted earnings per share from continuing operations | $ | $ 0.01 | ||
Adjusted diluted earnings from continuing operations per share | $ 0.18 | $ 0.36 | ||
Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. reflects reported net income (loss) from continuing operations available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) from continuing operations per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) from continuing operations attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) from continuing operations per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) from continuing operations per share amount for each specified item. |
The Andersons, Inc. | |||||||||
(in thousands) | Trade | Renewables | Plant | Other | Total | ||||
Three months ended March 31, 2022 | |||||||||
Sales and merchandising revenues | $ 3,084,681 | $ 683,231 | $ 210,042 | $ | $ 3,977,954 | ||||
Gross profit | 67,619 | 15,191 | 36,725 | | 119,535 | ||||
Operating, administrative and general expenses | 59,543 | 7,890 | 25,325 | 9,229 | 101,987 | ||||
Other income (loss), net | 4,024 | 428 | 804 | (1,094) | 4,162 | ||||
Income (loss) before income taxes from continuing operations | 3,669 | 5,962 | 10,743 | (9,767) | 10,607 | ||||
Income (loss) attributable to noncontrolling interests | | 447 | | | 447 | ||||
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) | $ 3,669 | $ 5,515 | $ 10,743 | $ (9,767) | $ 10,160 | ||||
Three months ended March 31, 2021 | |||||||||
Sales and merchandising revenues | $ 1,982,508 | $ 442,959 | $ 169,252 | $ | $ 2,594,719 | ||||
Gross profit | 72,557 | 8,483 | 32,401 | | 113,441 | ||||
Operating, administrative and general expenses | 56,931 | 6,656 | 23,399 | 10,012 | 96,998 | ||||
Other income (loss), net | 3,486 | 1,327 | 587 | 468 | 5,868 | ||||
Income (loss) before income taxes from continuing operations | 13,855 | 1,081 | 8,523 | (9,343) | 14,116 | ||||
Income (loss) attributable to noncontrolling interests | | (1,845) | | | (1,845) | ||||
Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) | $ 13,855 | $ 2,926 | $ 8,523 | $ (9,343) | $ 15,961 | ||||
Adjustments to income (loss) before income taxes from continuing operations (b) | 483 | | | | 483 | ||||
Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc. (a) | $ 14,338 | $ 2,926 | $ 8,523 | $ (9,343) | $ 16,444 | ||||
(a) Income (loss) from continuing operations before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. (b) Additional information on the individual adjustments that are included in the adjustments to income (loss) from continuing operations before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. |
The Andersons, Inc. | |||||||||||||
Continuing Operations | Discontinued | Total | |||||||||||
(in thousands) | Trade | Renewables | Plant | Other | Total | Rail | |||||||
Three months ended March 31, 2022 | |||||||||||||
Net income (loss) | $ 3,669 | $ 5,962 | $ 10,743 | $ (13,870) | $ 6,504 | $ (554) | $ 5,950 | ||||||
Interest expense (income) | 8,187 | 1,767 | 1,461 | (556) | 10,859 | | 10,859 | ||||||
Tax provision | | | | 4,103 | 4,103 | 1,292 | 5,395 | ||||||
Depreciation and amortization | 8,974 | 16,639 | 6,579 | 2,185 | 34,377 | | 34,377 | ||||||
EBITDA | $ 20,830 | $ 24,368 | $ 18,783 | $ (8,138) | $ 55,843 | $ 738 | $ 56,581 | ||||||
Three months ended March 31, 2021 | |||||||||||||
Net income (loss) | $ 13,855 | $ 1,081 | $ 8,523 | $ (13,704) | $ 9,755 | $ 3,507 | $ 13,262 | ||||||
Interest expense (income) | 7,051 | 2,073 | 1,066 | (201) | 9,989 | 3,180 | 13,169 | ||||||
Tax provision | | | | 4,361 | 4,361 | 1,384 | 5,745 | ||||||
Depreciation and amortization | 11,125 | 18,814 | 6,381 | 2,297 | 38,617 | 8,887 | 47,504 | ||||||
EBITDA | 32,031 | 21,968 | 15,970 | (7,247) | 62,722 | 16,958 | 79,680 | ||||||
Adjusting items impacting EBITDA: | |||||||||||||
Transaction related stock compensation | 483 | | | | 483 | | 483 | ||||||
Total adjusting items | 483 | | | | 483 | | 483 | ||||||
Adjusted EBITDA | $ 32,514 | $ 21,968 | $ 15,970 | $ (7,247) | $ 63,205 | $ 16,958 | $ 80,163 | ||||||
The Andersons, Inc. | |||||||||
Three Months Ended, | Twelve months | ||||||||
(in thousands) | June 30, | September 30, | December 31, | March 31, | ended March 31, | ||||
Net income from continuing operations | $ 44,024 | $ 12,290 | $ 65,473 | $ 6,504 | $ 128,291 | ||||
Interest expense | 10,060 | 8,799 | 8,444 | 10,859 | 38,162 | ||||
Tax provision | 9,677 | 4,027 | 11,163 | 4,103 | 28,970 | ||||
Depreciation and amortization | 38,949 | 42,811 | 36,797 | 34,377 | 152,934 | ||||
EBITDA | 102,710 | 67,927 | 121,877 | 55,843 | 348,357 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related stock compensation | 274 | 243 | 274 | | 791 | ||||
Gain on sale of a business | | (14,619) | | | (14,619) | ||||
Loss from cost method investment | | 2,784 | | | 2,784 | ||||
Asset impairments | | | 8,321 | | 8,321 | ||||
Total adjusting items | 274 | (11,592) | 8,595 | | (2,723) | ||||
Adjusted EBITDA | $ 102,984 | $ 56,335 | $ 130,472 | $ 55,843 | $ 345,634 | ||||
Three Months Ended, | Twelve months | ||||||||
June 30, | September 30, | December 31, | March 31, | ended March 31, | |||||
Net income from continuing operations | $ 10,290 | $ 1,788 | $ 15,917 | $ 9,755 | $ 37,750 | ||||
Interest expense | 7,994 | 6,853 | 7,833 | 9,989 | 32,669 | ||||
Tax provision (benefit) | (5,064) | (4,148) | 7,718 | 4,361 | 2,867 | ||||
Depreciation and amortization | 38,128 | 38,387 | 38,568 | 38,617 | 153,700 | ||||
EBITDA | 51,348 | 42,880 | 70,036 | 62,722 | 226,986 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related stock compensation | 1,017 | 912 | 946 | 483 | 3,358 | ||||
Severance costs | 2,341 | 3,222 | 528 | | 6,091 | ||||
Total adjusting items | 3,358 | 4,134 | 1,474 | 483 | 9,449 | ||||
Adjusted EBITDA | $ 54,706 | $ 47,014 | $ 71,510 | $ 63,205 | $ 236,435 | ||||
The Andersons, Inc. | |||
Three months ended | |||
(in thousands) | 2022 | 2021 | |
Cash used in operating activities | $ (1,074,998) | $ (445,727) | |
Changes in operating assets and liabilities | |||
Accounts receivable | (215,012) | (33,476) | |
Inventories | (136,820) | 5,007 | |
Commodity derivatives | (277,761) | (53,295) | |
Other current and non-current assets | (38,810) | 16,740 | |
Payables and other current and non-current liabilities | (446,096) | (441,921) | |
Total changes in operating assets and liabilities | (1,114,499) | (506,945) | |
Adjusting items impacting cash from operations before working capital changes: | |||
Changes in CARES Act tax refund receivable | | 27,697 | |
Cash from operations before working capital changes | $ 39,501 | $ 88,915 | |
Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. |
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SOURCE The Andersons, Inc.