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Mar 31, 2021
Andersons Q1 2021 Earnings Report
Reported best first quarter performance since 2014, driven by strong execution and cost reduction efforts.
Key Takeaways
The Andersons, Inc. reported a strong first quarter with net income attributable to the company of $15.1 million, or $0.45 per diluted share. Adjusted EBITDA was $80.2 million, up $69.0 million year over year. The company benefited from a demand-driven agriculture rally and strong performance across its Trade, Ethanol, Plant Nutrient, and Rail segments.
Net income attributable to The Andersons was $15.1 million, or $0.45 per diluted share.
Adjusted EBITDA increased to $80.2 million, a $69.0 million increase year-over-year.
Trade, Ethanol, Plant Nutrient and Rail segments all reported pretax income.
Company reduced total long-term debt by more than $35 million.
Forward Guidance
The company expects Trade business to benefit from merchandising execution in this volatile, demand-driven market. High prices and strong elevation margins are expected to continue at least until the next harvest. Effective tax rate is expected to be approximately 29%.
Positive Outlook
- Commodity price volatility and market dislocations have created merchandising opportunities in many of the commodity supply chains that we touch in our Trade business and we expect that this will continue in the near term
- Ethanol margins have improved significantly with ethanol prices reaching levels not seen in over six years, combined with strong margins on our newer high-protein feed and other co-products
- Plant Nutrient had its best first quarter since 2008 with increased volume and strong margins that we expect will continue into the peak planting season.
- While the volume of grain in store is expected to remain at levels below recent years for some time, high prices and strong elevation margins are expected to continue at least until the next harvest.
- Expects that short-term borrowings will continue at a higher level over the next few quarters; we have strong support from our lenders and expect that our capacity will be sufficient to cover our needs.
Challenges Ahead
Historical Earnings Impact
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