On November 7, 2023, Andersons Inc (ANDE, Financial) disclosed its financial outcomes for the third quarter, revealing a net income of $10 million, or $0.28 per diluted share. Despite facing challenges, including a significant currency loss in its international business, the company's Renewables segment posted a record Q3 pretax income of $47 million, contributing to an overall adjusted EBITDA of $70 million for the quarter.
Financial Highlights and Segment Performance
Andersons Inc (ANDE, Financial) experienced a year-over-year decrease in net income from continuing operations attributable to the company, dropping from $17.4 million in Q3 2022 to $9.7 million in Q3 2023. Adjusted net income also saw a decline, falling to $4.6 million from $17.4 million in the previous year. The diluted EPS from continuing operations decreased from $0.50 in Q3 2022 to $0.28 in Q3 2023.
The Renewables segment was a standout performer, with a significant increase in pretax income attributable to the company, rising from $8.4 million in Q3 2022 to $26.3 million in Q3 2023. This was attributed to excellent operating performance in ethanol plants and favorable industry fundamentals. The Trade segment, however, faced a substantial pretax loss in Egypt, which impacted earnings negatively by $19 million.
Balance Sheet and Cash Flow
Andersons Inc (ANDE, Financial) ended the quarter with a strong balance sheet, boasting over $400 million in cash and minimal short-term debt. The company's long-term debt to EBITDA ratio remains well below the target of less than 2.5 times, indicating a solid financial position with significant capacity for growth.
Cash from operating activities for the third quarter amounted to $489 million, a decrease from $568 million in the same period last year. Despite this, cash from operations before working capital changes was comparable year-over-year.
Outlook and Strategic Growth
President and CEO Pat Bowe expressed confidence in the company's direction, stating,
We remain confident about the balance of the year and expect to achieve our previously communicated full year adjusted EBITDA outlook of $350-$375 million."The company's recent acquisition of ACJ International, a pet food ingredient supplier, has already contributed positively to the results.
Andersons Inc (ANDE, Financial) is actively pursuing growth opportunities, particularly in the Renewables business, with plans to expand its renewable diesel feedstock merchandising business and invest in lowering the carbon intensity of its ethanol plants.
Conference Call and Investor Relations
The company will host a webcast to discuss its performance and provide an outlook for the remainder of 2023. Investors and interested parties can access the call or the webcast through the company's website or by dialing in directly.
For further details and to review the full financial statements, readers are encouraged to visit the Andersons Inc (ANDE, Financial) website or consult the earnings release in its entirety.
Andersons Inc (ANDE, Financial) continues to navigate a complex market environment, leveraging its strong Renewables segment performance to offset challenges in other areas. With a robust balance sheet and strategic growth initiatives underway, the company aims to maintain its momentum heading into the final quarter of the year.
Explore the complete 8-K earnings release (here) from Andersons Inc for further details.
