The Andersons, Inc. (ANDE) Bundle
A Brief History of The Andersons, Inc.
Company Overview
The Andersons, Inc. is a diversified company operating in the agriculture sector, primarily involved in grain merchandising, ethanol production, and nutrient supply. Established in 1947, the company has grown significantly, expanding its operations across various segments.
Financial Performance
As of September 30, 2024, The Andersons reported the following financial highlights:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Sales and Merchandising Revenues | $8,134,410,000 | $11,537,112,000 |
| Cost of Sales and Merchandising Revenues | $7,653,594,000 | $11,009,463,000 |
| Gross Profit | $480,816,000 | $527,649,000 |
| Operating, Administrative and General Expenses | $356,466,000 | $359,548,000 |
| Income Before Income Taxes | $133,507,000 | $77,802,000 |
Segment Performance
The company operates through several segments, primarily Trade, Renewables, and Nutrient & Industrial. The performance of each segment as of September 30, 2024, is summarized below:
| Segment | Sales and Merchandising Revenues | Gross Profit | Income Before Income Taxes |
|---|---|---|---|
| Trade | $5,399,315,000 | $256,706,000 | $37,615,000 |
| Renewables | $2,088,372,000 | $133,672,000 | $114,574,000 |
| Nutrient & Industrial | $646,723,000 | $90,438,000 | $15,437,000 |
Cash Flow and Investments
In the first nine months of 2024, The Andersons generated net cash provided by operating activities of $62,695,000, a significant decrease from $696,087,000 in the same period of 2023. Cash used in investing activities amounted to $90,592,000, down from $117,263,000 the previous year. The company expects to invest approximately $150 million in property, plant, and equipment in 2024.
Dividends and Shareholder Returns
For the nine months ended September 30, 2024, The Andersons paid dividends totaling $19,466,000, compared to $18,771,000 in 2023. The dividend per common share for the first three quarters of 2024 was $0.19, compared to $0.185 for the same period in 2023.
Recent Developments
On November 1, 2024, The Andersons acquired a 65% ownership interest in Skyland Grain, LLC for $85 million in cash. This acquisition is expected to enhance the company's capabilities in grain and fertilizer operations across several strategic markets.
Market Position
The Andersons, Inc. continues to adapt to market conditions, focusing on efficiency and strategic growth. The company is well-positioned in the agricultural sector, with a focus on sustainable practices and innovation.
Key Financial Metrics
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $3,388,299,000 | $3,855,007,000 |
| Total Liabilities | $1,865,291,000 | $2,338,620,000 |
| Total Equity | $1,523,008,000 | $1,516,387,000 |
As of September 30, 2024, The Andersons had cash and cash equivalents of $454,065,000, compared to $418,055,000 in 2023.
A Who Owns The Andersons, Inc. (ANDE)
Major Shareholders
As of 2024, the ownership structure of The Andersons, Inc. (ANDE) includes various institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Number of Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 3,200,000 | 9.4% |
| Institutional Investor | The Vanguard Group, Inc. | 2,900,000 | 8.5% |
| Institutional Investor | State Street Corporation | 2,500,000 | 7.4% |
| Individual Investor | Patrick E. Bowe (Executive Chairman) | 99,215 | 0.3% |
| Individual Investor | William E. Krueger (CEO) | 75,000 | 0.2% |
| Other | Noncontrolling Interests | 193,837 | 0.6% |
| Total Shares Outstanding | - | 34,083,000 | 100% |
Recent Changes in Ownership
In November 2024, The Andersons, Inc. acquired a 65% ownership interest in Skyland Grain, LLC for $85 million. This acquisition consolidates Skyland’s results in The Andersons' financial statements, enhancing its position in the grain and fertilizer markets.
Stock Performance and Market Capitalization
As of the end of September 2024, The Andersons, Inc. reported a market capitalization of approximately $1.5 billion, reflecting its stock performance and investor confidence in its growth strategies.
Dividends and Earnings
The company declared a cash dividend of $0.19 per common share, payable on October 22, 2024, demonstrating a commitment to returning value to shareholders. For the nine months ended September 30, 2024, The Andersons reported a net income of $116.6 million.
Ownership Trends and Analysis
The current ownership structure indicates a strong presence of institutional investors, which is typical for companies of this size in the agricultural sector. The involvement of key executives as shareholders also aligns management interests with those of other shareholders, potentially leading to favorable outcomes for the company's performance.
The Andersons, Inc. (ANDE) Mission Statement
Company Overview
The Andersons, Inc. operates in the agribusiness sector, focusing on grain, ethanol, and plant nutrient products. The company's mission statement emphasizes its commitment to sustainability, innovation, and customer service.
Mission Statement
The Andersons, Inc. aims to provide superior service and value to its customers while pursuing sustainable practices that benefit the environment and communities. The mission reflects a dedication to operational excellence and a focus on enhancing the agricultural supply chain.
Financial Performance Highlights (2024)
As of September 30, 2024, The Andersons reported a net income of $116.6 million for the nine months ended, compared to $54.1 million in the same period of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Income (in thousands) | $51,461 | $30,523 | $20,938 |
| Revenue (in thousands) | $2,620,988 | $2,468,465 | $152,523 |
| Gross Profit (in thousands) | $177,125 | $164,453 | $12,672 |
| Operating Income (in thousands) | $62,192 | $38,385 | $23,807 |
Key Business Segments
The Andersons operates through three main segments: Trade, Renewables, and Nutrient & Industrial. Each segment plays a crucial role in the company's overall strategy and mission.
Trade Segment
The Trade segment focuses on grain merchandising and operates terminal grain elevator facilities. As of September 30, 2024, the segment reported sales and merchandising revenues of $1.7 billion, reflecting a decrease compared to previous periods due to reduced commodity prices.
Renewables Segment
This segment produces ethanol and co-products. For the nine months ended September 30, 2024, the Renewables segment reported a gross profit of $60.4 million, a slight decrease from the previous year attributed to lower ethanol prices.
| Renewables Performance Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Ethanol Gallons Shipped (in thousands) | 212,336 | 190,368 |
| DDG Tons Shipped (in thousands) | 636 | 497 |
| Vegetable Oils Shipped (in pounds) | 415,505 | 343,619 |
Nutrient & Industrial Segment
This segment manufactures and distributes plant nutrient products. The Nutrient & Industrial segment generated sales of $128.1 million in Q3 2024, reflecting operational improvements despite challenging market conditions.
Environmental Commitment
The Andersons is committed to sustainability through innovative practices across its operations. This includes efforts to reduce carbon emissions and enhance energy efficiency in its production processes.
Market Position and Growth
As of September 30, 2024, The Andersons, Inc. had total assets of $3.39 billion, reflecting a decrease from the previous year attributed to fluctuations in commodity prices and overall market conditions.
| Balance Sheet Highlights | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets (in thousands) | $3,388,299 | $3,855,007 |
| Total Liabilities (in thousands) | $1,865,291 | $2,338,620 |
| Total Equity (in thousands) | $1,523,008 | $1,516,387 |
Conclusion
The Andersons, Inc.'s mission statement and operational performance reflect its commitment to sustainability, customer service, and financial growth. The company continues to adapt to market changes while maintaining a focus on its core values and mission.
How The Andersons, Inc. (ANDE) Works
Business Overview
The Andersons, Inc. operates in the agricultural sector, primarily engaged in grain trading, ethanol production, and the distribution of plant nutrients. The company operates through four main segments: Trade, Renewables, Nutrient & Industrial, and Other.
Financial Performance
As of September 30, 2024, The Andersons reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Sales and merchandising revenues | $2,620,988,000 | $3,635,691,000 | ($1,014,703,000) |
| Cost of sales and merchandising revenues | $2,443,863,000 | $3,477,990,000 | ($1,034,127,000) |
| Gross profit | $177,125,000 | $157,701,000 | $19,424,000 |
| Net income | $51,461,000 | $30,523,000 | $20,938,000 |
| Earnings per share (diluted) | $0.80 | $0.28 | $0.52 |
Segment Performance
The Andersons operates through various segments with distinct performance metrics:
- Trade Segment: Revenue decreased by $2,814.3 million, leading to a gross profit decline of $27.2 million.
- Renewables Segment: Reported a revenue decrease of $497.0 million, with a gross profit decline of $3.5 million due to lower ethanol prices.
- Nutrient & Industrial Segment: Revenues decreased by $91.3 million, and gross profit fell by $16.2 million.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, The Andersons reported cash flow metrics as follows:
| Cash Flow Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash provided by operating activities | $62,695 | $696,087 |
| Net cash used in investing activities | ($90,592) | ($117,263) |
| Net cash used in financing activities | ($162,595) | ($275,846) |
Balance Sheet Highlights
As of September 30, 2024, The Andersons' balance sheet reflected the following positions:
| Balance Sheet Item | Value (in thousands) |
|---|---|
| Total Assets | $3,388,299 |
| Total Liabilities | $1,865,291 |
| Total Equity | $1,523,008 |
| Working Capital | $1,153,202 |
Commodity Derivatives and Risk Management
As of September 30, 2024, The Andersons had the following positions in commodity derivatives:
| Commodity | Bushels (in thousands) | Gallons (in thousands) | Current Position |
|---|---|---|---|
| Corn | 562,754 | - | Non-exchange traded |
| Soybeans | 56,718 | - | Non-exchange traded |
| Ethanol | - | 305,865 | Non-exchange traded |
Recent Developments
In 2024, The Andersons continues to focus on enhancing operational efficiencies across all segments, particularly in the context of fluctuating commodity prices and market conditions. The company is committed to maintaining strong liquidity and capital resources to support ongoing operations and strategic initiatives.
How The Andersons, Inc. (ANDE) Makes Money
Revenue Segments
The Andersons, Inc. generates revenue through three primary segments: Trade, Renewables, and Nutrient & Industrial. As of September 30, 2024, the revenue breakdown is as follows:
| Segment | Sales and Merchandising Revenues (in thousands) | Cost of Sales (in thousands) | Gross Profit (in thousands) |
|---|---|---|---|
| Trade | $5,399,315 | $5,142,609 | $256,706 |
| Renewables | $2,088,372 | $1,954,700 | $133,672 |
| Nutrient & Industrial | $646,723 | $556,285 | $90,438 |
| Total | $8,134,410 | $7,653,594 | $480,816 |
Trade Segment
The Trade segment primarily involves the merchandising of agricultural commodities. For the nine months ended September 30, 2024, the Trade segment generated revenues of $5,399,315, a decrease from $8,213,649 in the same period of the previous year. The decrease in revenue was driven by reduced commodity prices and lower trading volumes due to geopolitical factors.
Gross profit in this segment was $256,706, down from $283,886 in the previous year, reflecting a margin compression due to the oversupply of commodities in a carry market.
Renewables Segment
The Renewables segment includes the production and sale of ethanol and renewable diesel products. For the nine months ended September 30, 2024, revenues in this segment amounted to $2,088,372, down from $2,585,396 in the previous year. The decline was attributed to lower ethanol prices, which decreased by 26% compared to the prior year.
Despite the decrease in revenue, the gross profit remained relatively stable at $133,672, compared to $137,140 in the previous year.
Nutrient & Industrial Segment
This segment focuses on the wholesale distribution of agricultural nutrients and other industrial products. For the nine months ended September 30, 2024, revenues were reported at $646,723, a decline from $738,067 in the same period of the prior year. The gross profit in this segment was $90,438, compared to $106,623 in the previous year, signifying a decrease largely due to margin compression.
Operating Expenses and Income
For the nine months ended September 30, 2024, total operating, administrative, and general expenses were $356,466, compared to $359,548 in the prior year. The net income for the period reached $116,596, a significant increase from $54,092 in the previous year.
Income Tax Provision
The income tax provision for the nine months ended September 30, 2024, was $16,911, with an effective tax rate of 12.7%. This is a notable decrease from the previous year's tax expense of $23,710, which had an effective tax rate of 30.5%.
Financial Summary
As of September 30, 2024, The Andersons, Inc. reported the following key financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Net Income | $116,596 |
| Gross Profit | $480,816 |
| Operating Expenses | $356,466 |
| Income Tax Provision | $16,911 |
| Effective Tax Rate | 12.7% |
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Resources:
- The Andersons, Inc. (ANDE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Andersons, Inc. (ANDE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Andersons, Inc. (ANDE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.