NASDAQ$ANDE

Andersons Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss due to the COVID-19 pandemic's negative impact, particularly on the Ethanol and Trade Groups, though the Plant Nutrient Group showed resilience.

The Andersons, Inc. reported a net loss of $37.7 million for the first quarter of 2020, primarily due to the impact of the COVID-19 pandemic on ethanol and corn demand. The Plant Nutrient Group showed improved year-over-year results, while the company focused on cost controls and cash management.

  • The company reported a net loss attributable to The Andersons of $37.7 million, or $1.15 per diluted share.
  • Adjusted EBITDA declined to $14.7 million for the quarter.
  • Ethanol and corn demand were sharply lower in March, reflecting reduced vehicle travel.
  • Plant Nutrient Group improved year-over-year results by $2.7 million.

Headline financials

Total Revenue

$1.85B

Previous: $1.98B-6.3%
EPS (adj)

-$1.32

Previous: -$0.16-725.0%
Adjusted EBITDA

$14.7M

Previous: $41.8M-64.8%
Capital Expenditures

-$19.3M

Previous: -$44.7M+56.8%
Free Cash Flow

-$57M

Previous: -$58.7M+3.0%
Net Income

-$37.7M

Previous: -$14M-169.1%
Operating Income

-$41.9M

Previous: -$3.69M-1037.9%
Gross Profit

$63.1M

Previous: $110M-42.4%
Cash & Equivalents

$19.7M

Previous: $30M-34.3%
Total Assets

$3.75B

Previous: $3.66B+2.5%
Stock-Based Comp

$2.88M

Previous: $4.8M-40.0%

Revenue & EPS history

Andersons · Revenue · Quarterly

$1.85B

Q1 2020-6.3%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Andersons · $868M total across 1 segment · Q3 2023

  • Renewables
    $868M+6.5%

Forward guidance

The company is targeting at least $20 million in additional expense reductions in 2020 and expects to spend approximately $100 million on capital projects.

Tailwinds

  • Ample liquidity to withstand a protracted downturn.
  • Targeting at least $20 million in additional expense reductions in 2020.
  • The group expects continued pressure on the profitability of its Eastern assets until the 2020 corn crop is harvested.
  • Margins are beginning to improve and present opportunities for its highly efficient plants.
  • The group's near-term outlook is positive, as weather has been favorable for planting and a large corn crop is anticipated.

Headwinds

  • COVID-19 pandemic had a profound negative impact on operating results.
  • Stay-at-home orders reduced vehicle miles traveled, which in turn dramatically reduced demand for gasoline, ethanol and corn.
  • The group expects continued pressure on the profitability of its Eastern assets until the 2020 corn crop is harvested.
  • COVID-19 pandemic has driven railcar loadings 11 percent lower year over year.
  • The group is feeling cautious about the 2021 crop year if demand for corn and beans does not improve.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.6%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.6%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.3%

Q4 2024

Best reaction

-25.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.2%-9.7%-8.2%
Q4 2025-3.6%-3.8%-0.9%
Q3 2025+4.6%+9.9%+7.8%
Q1 2025-10.1%+2.8%-0.8%
Q4 2024+17.3%+10.1%+3.8%
Q3 2024-4.0%+8.3%+3.9%
Q2 2024-0.3%-0.6%+3.7%
Q1 2024-9.0%-5.5%-10.6%
Q4 2023+3.7%-2.7%+4.0%
Q3 2023-13.5%-7.8%-2.5%
Q2 2023+2.2%+8.6%+5.2%
Q1 2023-10.9%-16.2%-12.0%
Q4 2022+13.7%+17.9%+3.5%
Q3 2022+3.6%+6.0%+5.1%
Q2 2022+14.1%+5.4%+3.3%
Q1 2022-25.7%-24.7%-25.0%
Q4 2021+2.8%+0.9%+16.2%
Q3 2021+0.8%+7.3%-2.1%
Q2 2021+1.1%+5.3%+14.7%
Q1 2021-1.9%+2.5%+9.2%
Q4 2020+2.2%-4.6%+6.4%
Q3 2020-16.7%-18.8%+3.3%
Q2 2020+11.7%+17.2%+23.2%
Q1 2020-15.7%-6.9%-9.3%
Q4 2019-11.8%-14.4%-29.6%
Q3 2019+10.6%+9.2%+24.3%
Q2 2019+3.1%+3.6%-9.3%
Q1 2019-10.6%-9.5%-16.0%
Q4 2018+8.1%+4.6%-0.5%
Q3 2018-11.1%-10.0%-13.2%
Q2 2018+14.6%+13.9%+14.6%
Q1 2018-5.3%-5.4%+0.9%
Q4 2017+15.0%+15.0%+13.3%
Q3 2017-6.7%-16.9%-14.1%
Q2 2017-0.7%-4.8%-7.0%
Q1 2017-9.0%-10.4%-1.6%
Q4 2016+5.8%+6.1%+4.0%
Q3 2016-4.1%-8.0%+8.1%
Q2 2016+1.1%+4.4%+6.7%
Q1 2016-11.3%
Q4 2015-14.3%
Q3 2015-8.5%
Q2 2015+7.5%
Q1 2015-2.8%
Q4 2014-10.3%
Q3 2014-18.3%
Q2 2014+6.9%
Q1 2014-15.1%
Q4 2013-7.9%
Q3 2013-0.3%
Q2 2013+3.7%
Q1 2013-3.5%
Q4 2012-0.8%
Q3 2012+4.6%
Q2 2012+0.6%
Q1 2012-2.8%
Q4 2011-5.5%
Q3 2011+7.6%
Q2 2011+4.3%
Q1 2011+1.5%
Q4 2010-1.4%
Q1 2010-1.4%
Q4 2008-1.4%
Q3 2010-1.8%
Q3 2009-1.8%
Q2 2009+2.9%
Q2 2010+2.9%
Q4 2009+2.9%

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