# EDGAR Filing Document

**Accession Number:** 0000821026
**File Stem:** 0000821026-23-000029
**Filing Date:** 2023-2
**Character Count:** 47330
**Document Hash:** 00dc3e935ddb7004af266b4a02b0431a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000821026-23-000029.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0000821026-23-000029

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20230214

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Andersons, Inc.
- **CENTRAL INDEX KEY:** 0000821026
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-FARM PRODUCT RAW MATERIALS [5150]
- **IRS NUMBER:** 341562374
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-20557
- **FILM NUMBER:** 23630813

**BUSINESS ADDRESS:**
- **STREET 1:** 1947 BRIARFIELD BOULEVARD
- **CITY:** MAUMEE
- **STATE:** OH
- **ZIP:** 43537
- **BUSINESS PHONE:** (419)893-5050

**MAIL ADDRESS:**
- **STREET 1:** 1947 BRIARFIELD BOULEVARD
- **CITY:** MAUMEE
- **STATE:** OH
- **ZIP:** 43537

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ANDERSONS INC
- **DATE OF NAME CHANGE:** 19960117

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ANDERSONS MANAGEMENT CORP
- **DATE OF NAME CHANGE:** 19931119

?xml version="1.0" ? ande-20230214

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________

FORM 8-K

______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 14, 2023

__________________________________________

![ande-20230214_g1.jpg](ande-20230214_g1.jpg)

The Andersons, Inc.

__________________________________________

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Ohio** | **000-20557** | **34-1562374** |
| (State of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

**1947 Briarfield Boulevard** 

**Maumee, Ohio 43537** 

(Address of principal executive offices) (Zip Code)

**(419) 893-5050** 

(Registrant's telephone number, including area code)

__________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[☐] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[☐] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[☐] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[☐] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

__________________________________________

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading Symbol** | **Name of each exchange on which registered:** |
| Common stock, $0.00 par value, $0.01 stated value | ANDE | The NASDAQ Stock Market LLC |

---

__________________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

[☐] Emerging growth company

[☐] If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

------

**Item 2.02 Results of Operations and Financial Condition.** 

The Andersons, Inc. issued a press release announcing its fourth quarter 2022 earnings. This press release is attached as exhibit 99.1 to this filing.

**Item 9.01 Financial Statements and Exhibits**

(d) Exhibits:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Fourth Quarter 2022 Earnings Release](q42022ex-99pressrelease.htm)</u> |
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K |

---

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | The Andersons, Inc. | The Andersons, Inc. |
| February 14, 2023 | *By:* | */s/ Brian A. Valentine* |
|  |  | Brian A. Valentine |
|  |  | Executive Vice President <br>and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![logoa04a26a.gif](logoa04a26a.gif) **NEWS RELEASE**

**The Andersons, Inc. Reports Strong Fourth Quarter Results; Record Full Year Earnings** 

**MAUMEE, OHIO, February 14, 2023 - The Andersons, Inc. (Nasdaq: ANDE)** announces financial results for the fourth quarter ended December 31, 2022.

**Fourth Quarter Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Company reported net income from continuing operations attributable to The Andersons of $15 million, or $0.44 per diluted share, and adjusted net income from continuing operations of $34 million, or $0.98 per diluted share** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• EBITDA from continuing operations was $79 million for the quarter, and adjusted EBITDA from continuing operations was $104 million**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Trade reported pretax income of $27 million and record adjusted pretax income of $52 million, driven by strong elevation margins and merchandising**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Renewables reported pretax income of $19 million and pretax income attributable to the company of $13 million on solid plant performance and good merchandising**

"We finished the year with strong fourth quarter results, particularly in our Trade segment. Our merchandising teams and grain assets had outstanding results from improving basis after harvest, sales into destinations experiencing crop deficits, storage income and rising propane values. With another record quarter, our Trade business is positioned to execute well in these favorable markets with continuing strong ag fundamentals," said President and CEO Pat Bowe.

"We enjoyed very good results in renewable fuels on solid renewable feedstock values but didn't experience the outsized ethanol margins that occurred in the fourth quarter of 2021 due to supply chain disruptions. The ethanol crush margin outlook is currently challenged but we expect this to improve with seasonal maintenance shutdowns and increased driving demand," added Bowe. "Our Plant Nutrient segment had mixed results with good fall applications and farmer engagement on specialty liquids but more limited early orders of granular fertilizer as buyers are waiting for declining prices to stabilize. With strong farm income, this sets us up well for a higher volume spring planting season although likely at more normalized margins. Our growth project pipeline remains robust, and we expect to close several transactions and continue making growth investments in 2023."

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **$ in millions, except per share amounts** | **$ in millions, except per share amounts** | **$ in millions, except per share amounts** | **$ in millions, except per share amounts** | | | |
| | **Q4 2022** | **Q4 2021** | **Variance** | **YTD 2022** | **YTD 2021** | **Variance** |
| **Pretax Income from Continuing Operations** | $**31** | $77 | $(46) | $**195** | $161 | $34 |
| **Pretax Income from Continuing Operations Attributable to the Company**<sup>1</sup> | **25** | 44 | (19) | **159** | 129 | 30 |
| **Adjusted Pretax Income (Loss) from Continuing Operations Attributable to the Company**<sup>1</sup> | **50** | 53 | (3) | **184** | 127 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Trade**<sup>1</sup> | **52** | 27 | 25 | **121** | 83 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Renewables**<sup>1</sup> | **13** | 27 | (14) | **72** | 49 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Plant Nutrient** | **2** | 16 | (14) | **39** | 43 | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other**<sup>1</sup> | **(16)** | (17) | 1 | **(48)** | (48) |  |
| **Net Income from Continuing Operations Attributable to the Company** | **15** | 33 | (18) | **119** | 100 | 19 |
| **Adjusted Net Income from Continuing Operations Attributable to the Company**<sup>1</sup> | **34** | 39 | (5) | **139** | 98 | 41 |
| **Diluted Earnings Per Share from Continuing Operations (EPS)** | **0.44** | 0.95 | (0.51) | **3.46** | 2.94 | 0.52 |
| **Adjusted Diluted Earnings Per Share from Continuing Operations**<sup>1</sup> | **0.98** | 1.14 | (0.16) | **4.05** | 2.89 | 1.16 |
| **EBITDA from Continuing Operations**<sup>1</sup> | **79** | 122 | (43) | **386** | 355 | 31 |
| **Adjusted EBITDA from Continuing Operations**<sup>1</sup> | $**104** | $130 | $(26) | $**412** | $353 | $59 |

---

<sup>1</sup> Non-GAAP financial measures; see appendix for explanations and reconciliations.

**Cash, Liquidity and Long-Term Debt Management**

"Strong operating cash flows continued into the fourth quarter, and we have significantly reduced short term borrowings as much of our grain acquired during harvest include extended payments to producers," said Executive Vice President and CFO Brian Valentine. "We repurchased $5 million in common shares in the quarter. With a strong balance sheet and a long-term debt to EBITDA ratio well below our target of 2.5 times, we are well-positioned to fund good growth projects with appropriate returns."

The company generated $440 million and used $170 million in cash from operating activities for the fourth quarters of 2022 and 2021, respectively, and generated $90 million and $84 million in cash from operations before working capital changes for the same periods, respectively.

------

**<u>Fourth Quarter Segment Overview</u>**

**Trade Posts Record Fourth Quarter Driven by Grain Assets and Merchandising Performance**

Trade recorded pretax income of $27 million and adjusted pretax income of $52 million for the quarter, 50% more than pretax income of $18 million and nearly double adjusted pretax income of $27 million in the fourth quarter of the prior year.

Strong elevation margins in core grain assets and merchandising drove the significant improvement. The quarter over quarter increase reflects rising basis values, storage income, and healthy margins on shipments into grain deficit destinations. Our international merchandising business also continued to perform well in the fourth quarter.

Ag supply chain opportunities are expected to remain very strong in 2023. Continued worldwide demand coupled with supply uncertainty due to the ongoing war in Ukraine and potential weather impacts in global grain production regions, continues to keep commodity prices relatively high and provide ongoing merchandising opportunities.

An adjustment was made for an asset impairment charge of $9 million due to a reorganization of western US grain assets. Earnings were also adjusted for a $16 million charge for insured inventory that was damaged in a late December fire.

Trade's fourth quarter adjusted EBITDA was $72 million, which is 71% higher than fourth quarter 2021 adjusted EBITDA of $42 million. Full year adjusted EBITDA increased from $151 million in 2021 to a record $199 million in 2022, primarily as a result of improved elevation margins and outstanding merchandising results.

**Renewables Posts Another Good Quarter** 

The Renewables segment reported pretax income of $19 million and pretax income attributable to the company of $13 million in the fourth quarter compared to record pretax income of $59 million and pretax income attributable to the company of $27 million in the same period of the prior year. Ethanol board crush margins for the 2022 fourth quarter were down over $0.90/gallon from the very strong fourth quarter of 2021. Renewable diesel feedstock merchandising results improved with the volume merchandised more than double the fourth quarter of 2021.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the merchandising business. Spot ethanol crush margins have declined into 2023 and are expected to seasonally move upward with driving demand. Corn oil demand is expected to remain high and merchandising of low-carbon-intensive renewable feedstocks should remain strong as additional renewable diesel facilities begin operations driving significant growth.

Renewables recorded EBITDA of $36 million in the fourth quarter of 2022, compared to 2021 fourth quarter EBITDA of $78 million. For the full year, Renewables recorded EBITDA of $180 million in 2022, an increase of $14 million from 2021.

------

**Plant Nutrient Declines from Record Prior Year on Lower Demand and Falling Prices** 

Plant Nutrient recorded pretax income of $2 million in the fourth quarter compared to record pretax income of $16 million in the same period of 2021. Falling fertilizer prices have likely shifted some demand from the fourth quarter of 2022 into 2023 as buyers wait for prices to moderate. Strong farmer income and lower prices are expected to drive higher volumes of agricultural fertilizers in the spring season, albeit at more normalized margins.

Plant Nutrient's current quarter EBITDA was $11 million compared to 2021 fourth quarter EBITDA of $24 million. For the full year, Plant Nutrient recorded EBITDA of $73 million in 2022, comparable to the prior year.

**Conference Call**

The company will host a webcast on Wednesday, February 15, 2023, at 11 a.m. EST, to discuss its performance and provide its outlook for 2023. To access the call, please dial 888-317-6003 or 412-317-6061 (international toll) and use elite entry number 7095205. It is recommended that you call 10 minutes before the conference call begins.

To access the webcast, click on the link: <u>https://app.webinar.net/OlgR2D825A0</u> and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at <u>www.andersonsinc.com</u>.

**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 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 pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations attributable to the company; adjusted pretax income (loss) from continuing operations; adjusted net income from continuing operations attributable to the company; 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., having been named one of America's Greatest Workplaces for Diversity 2023 by Newsweek<sup>®</sup>, 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 <u>www.andersonsinc.com</u>.

**<u>Investor Relations Contact</u>**&nbsp;&nbsp;&nbsp;&nbsp;

Mike Hoelter&nbsp;&nbsp;&nbsp;&nbsp;

Vice President, Corporate Controller and Investor Relations

Phone: 419-897-6715

E-mail: <u>investorrelations@andersonsinc.com</u>

------

 **The Andersons, Inc.**

**Condensed Consolidated Statements of Operations** 

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| (in thousands, except per share data) | **2022** | **2021** | **2022** | **2021** |
| Sales and merchandising revenues | $**4677488** | $3782702 | $**17325384** | $12612050 |
| Cost of sales and merchandising revenues | **4507465** | 3588688 | **16641220** | 12019353 |
| Gross profit | **170023** | 194014 | **684164** | 592697 |
| Operating, administrative and general expenses | **136471** | 119240 | **466556** | 432073 |
| Interest expense, net | **14087** | 8444 | **56849** | 37292 |
| Other income, net | **11638** | 10306 | **33823** | 37438 |
| Income before income taxes from continuing operations | **31103** | 76636 | **194582** | 160770 |
| Income tax provision from continuing operations | **9933** | 11163 | **39628** | 29228 |
| Net income from continuing operations | **21170** | 65473 | **154954** | 131542 |
| Income (loss) from discontinued operations, net of income taxes | **(6074)** | (3129) | **12025** | 4324 |
| Net income | **15096** | 62344 | **166979** | 135866 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the noncontrolling interest | **6072** | 32702 | **35899** | 31880 |
| Net income attributable to The Andersons, Inc. | $**9024** | $29642 | $**131080** | $103986 |
| Earnings (loss) per share attributable to <br>The Andersons, Inc. common shareholders: |  |  |  |  |
| &nbsp;&nbsp;Basic earnings (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**0.45** | $0.98 | $**3.53** | $2.99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | **(0.18)** | (0.09) | **0.36** | 0.13 |
|  | $**0.27** | $0.89 | $**3.89** | $3.12 |
| &nbsp;&nbsp;Diluted earnings (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations | $**0.44** | $0.95 | $**3.46** | $2.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations | **(0.18)** | (0.09) | **0.35** | 0.13 |
|  | $**0.26** | $0.86 | $**3.81** | $3.07 |

---

------

**The Andersons, Inc.**

**Condensed Consolidated Balance Sheets** 

(unaudited)

---

| | | |
|:---|:---|:---|
| (in thousands) | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $**115269** | $216444 |
| &nbsp;&nbsp;Accounts receivable, net | **1248878** | 835180 |
| &nbsp;&nbsp;Inventories | **1731725** | 1814538 |
| &nbsp;&nbsp;Commodity derivative assets – current | **295588** | 410813 |
| &nbsp;&nbsp;Current assets held-for-sale | **2871** | 20885 |
| &nbsp;&nbsp;Other current assets | **71622** | 74468 |
| Total current assets | **3465953** | 3372328 |
| Other assets: |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | **129342** | 129342 |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | **100907** | 117137 |
| &nbsp;&nbsp;&nbsp;Right of use assets, net | **61890** | 52146 |
| &nbsp;&nbsp;&nbsp;Other assets held-for-sale | **—** | 43169 |
| &nbsp;&nbsp;&nbsp;Other assets, net | **87175** | 69068 |
| Total other assets | **379314** | 410862 |
| Property, plant and equipment, net | **762729** | 786029 |
| Total assets | $**4607996** | $4569219 |
| **Liabilities and equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Short-term debt | $**272575** | $501792 |
| &nbsp;&nbsp;Trade and other payables | **1423633** | 1199324 |
| &nbsp;&nbsp;Customer prepayments and deferred revenue | **370524** | 358119 |
| &nbsp;&nbsp;Commodity derivative liabilities – current | **98519** | 128911 |
| &nbsp;&nbsp;Current maturities of long-term debt | **110155** | 32256 |
| &nbsp;&nbsp;Current liabilities held-for-sale | **—** | 13379 |
| &nbsp;&nbsp;Accrued expenses and other current liabilities | **245916** | 230148 |
| Total current liabilities | **2521322** | 2463929 |
| Long-term lease liabilities | **37147** | 31322 |
| Long-term debt, less current maturities | **492518** | 600487 |
| Deferred income taxes | **64080** | 71127 |
| Other long-term liabilities held-for-sale | **—** | 16119 |
| Other long-term liabilities | **63160** | 78531 |
| Total liabilities | **3178227** | 3261515 |
| Total equity | **1429769** | 1307704 |
| Total liabilities and equity | $**4607996** | $4569219 |

---

------

**The Andersons, Inc.**

**Consolidated Statements of Cash Flows** 

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| (in thousands) | **2022** | **2021** | **2022** | **2021** |
| **Operating Activities** |  |  |  |  |
| Net income from continuing operations | $**21170** | $65473 | $**154954** | $131542 |
| Income from discontinued operations, net of income taxes | **(6074)** | (3129) | **12025** | 4324 |
| Net income | **15096** | 62344 | **166979** | 135866 |
| Adjustments to reconcile net income to cash provided by (used in) operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **33476** | 36797 | **134742** | 178934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense, net | **973** | 2419 | **6001** | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in losses (earnings) of affiliates, net of dividends | **74** | (2453) | **5671** | (4842) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on sales of assets, net | **1706** | 321 | **(7148)** | (6184) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | **3495** | 4311 | **11192** | 11038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred federal income tax | **810** | (10893) | **(20009)** | (104618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of business from continuing operations | **—** |  | **—** | (14619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of business from discontinued operations | **—** |  | **(27091)** | 1491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | **11818** | 8947 | **11818** | 8947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Damaged inventory | **17328** |  | **17328** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **5495** | 141 | **15550** | 10545 |
| Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts and notes receivable | **(250537)** | (94100) | **(391403)** | (184002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(179995)** | (794938) | **56859** | (528073) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | **170300** | 51553 | **65399** | (107188) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current assets | **8936** | (113046) | **10936** | (116403) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables and other current and non-current liabilities | **601512** | 678480 | **230293** | 667821 |
| Net cash provided by (used in) operating activities | **440487** | (170117) | **287117** | (51050) |
| **Investing Activities** |  |  |  |  |
| Acquisition of businesses, net of cash acquired | **(20245)** | (11425) | **(20245)** | (11425) |
| Purchases of property, plant and equipment and capitalized software | **(36037)** | (23036) | **(108284)** | (75766) |
| Proceeds from sale of assets | **497** | 509 | **5307** | 4508 |
| Purchase of investments | **—** | (250) | **(2105)** | (6243) |
| Proceeds from sale of business from continuing operations | **—** |  | **5171** | 18130 |
| Proceeds from sale of business from discontinued operations | **—** |  | **56302** | 543102 |
| Purchases of Rail assets | **(3994)** |  | **(31458)** | (6039) |
| Proceeds from sale of Rail assets | **—** | 445 | **36706** | 19150 |
| Other | **3958** | 1482 | **5704** | 1831 |
| Net cash (used in) provided by investing activities | **(55821)** | (32275) | **(52902)** | 487248 |
| **Financing Activities** |  |  |  |  |
| Net receipts (payments) under short-term lines of credit | **(382591)** | 218384 | **(21273)** | (105895) |
| Proceeds from issuance of short-term debt | **—** |  | **350000** | 608250 |
| Payments of short-term debt | **—** |  | **(550000)** | (408250) |
| Proceeds from issuance of long-term debt | **—** | 16200 | **—** | 203000 |
| Payments of long-term debt | **(7460)** | (45206) | **(30045)** | (530733) |
| Contributions from noncontrolling interest owner | **2450** |  | **4900** | 4655 |
| Distributions to noncontrolling interest owner | **(9980)** |  | **(44910)** | (25) |
| Payments of debt issuance costs | **(306)** | (633) | **(8108)** | (2692) |
| Dividends paid | **(6347)** | (6243) | **(24609)** | (23746) |
| Proceeds from exercises of stock options | **—** | 6667 | **5024** | 6667 |
| Common stock repurchased | **(5952)** |  | **(12721)** |  |
| Other | **(33)** | 12709 | **(2988)** |  |
| Net cash (used in) provided by financing activities | **(410219)** | 201878 | **(334730)** | (248769) |
| Effect of exchange rates on cash and cash equivalents | **51** | 84 | **(660)** | (108) |
| (Decrease) increase in cash and cash equivalents | **(25502)** | (430) | **(101175)** | 187321 |
| Cash and cash equivalents at beginning of year | **140771** | 216874 | **216444** | 29123 |
| Cash and cash equivalents at end of year | $**115269** | $216444 | $**115269** | $216444 |

---

------

**The Andersons, Inc.**

**Adjusted Net Income Attributable to The Andersons, Inc.**

**A non-GAAP financial measure**

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| (in thousands, except per share data) | **2022** | **2021** | **2022** | **2021** |
| Net income from continuing operations | $**21170** | $65473 | $**154954** | $131542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interests | **6072** | 32702 | **35899** | 31880 |
| Net income from continuing operations attributable to The Andersons, Inc. | **15098** | 32771 | **119055** | 99662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory damage | **15993** |  | **15993** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | **9000** | 8321 | **9000** | 8321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment on equity method and cost method investments | **—** |  | **4455** | 2784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of frac sand assets | **—** |  | **(3762)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction related stock compensation | **—** | 274 | **—** | 1274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of a business | **—** |  | **—** | (14619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax impact of adjustments<sup>1</sup> | **(6248)** | (2148) | **(5308)** | 561 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items, net of tax | **18745** | 6447 | **20378** | (1679) |
| Adjusted net income from continuing operations <br>attributable to The Andersons, Inc. | $**33843** | $39218 | $**139433** | $97983 |
| Diluted earnings per share attributable to The Andersons, Inc. common shareholders from continuing operations | $**0.44** | $0.95 | $**3.46** | $2.94 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impact on diluted earnings (loss) per share <br>from continuing operations | $**0.54** | $0.19 | $**0.59** | $(0.05) |
| Adjusted diluted earnings per share attributable to The Andersons, Inc. common shareholders from continuing operations | $**0.98** | $1.14 | $**4.05** | $2.89 |

---

<sup>1</sup> The income tax impact of adjustments is taken at the statutory tax rate of 25% with the exception of the impairment on the equity method investment of $4.5 million for the twelve months ended December 31, 2022, which had no income tax impact.

Adjusted net income (loss) attributable to The Andersons, Inc. from continuing operations reflects reported net income (loss) available to The Andersons, Inc. common shareholders from continuing operations 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) attributable to The Andersons, Inc. from continuing operations 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.**

**Segment Data** 

(unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | **Trade** | **Renewables** | **Plant Nutrient** | **Other** | **Total** |
| **Three months ended December 31, 2022** |  |  |  |  |  |
| Sales and merchandising revenues | $**3624563** | $**797818** | $**255107** | $**—** | $**4677488** |
| Gross profit | **113726** | **27239** | **29058** | **—** | **170023** |
| Operating, administrative and general expenses | **86725** | **7197** | **25660** | **16889** | **136471** |
| Other income (loss), net | **10513** | **981** | **313** | **(169)** | **11638** |
| Income (loss) before income taxes from continuing operations | **27232** | **18582** | **1717** | **(16428)** | **31103** |
| Income attributable to the noncontrolling interests | **—** | **6072** | **—** | **—** | **6072** |
| Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $**27232** | $**12510** | $**1717** | $**(16428)** | $**25031** |
| Adjustments to income (loss) before income taxes from continuing operations<sup>2</sup> | **24993** | **—** | **—** | **—** | **24993** |
| Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $**52225** | $**12510** | $**1717** | $**(16428)** | $**50024** |
| **Three months ended December 31, 2021** |  |  |  |  |  |
| Sales and merchandising revenues | $2781849 | $766675 | $234178 | $— | $3782702 |
| Gross profit | 87098 | 67676 | 39240 |  | 194014 |
| Operating, administrative and general expenses | 73891 | 7772 | 22697 | 14880 | 119240 |
| Other income (loss), net | 9050 | 1152 | 383 | (279) | 10306 |
| Income (loss) before income taxes from continuing operations | 18315 | 59206 | 15929 | (16814) | 76636 |
| Income attributable to the noncontrolling interests |  | 32702 |  |  | 32702 |
| Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $18315 | $26504 | $15929 | $(16814) | $43934 |
| Adjustments to income (loss) before income taxes from continuing operations<sup>2</sup> | 8595 |  |  |  | 8595 |
| Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $26910 | $26504 | $15929 | $(16814) | $52529 |

---

<sup>1</sup> 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.

<sup>2</sup> 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.**

**Segment Data (continued)**

(unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in thousands) | **Trade** | **Renewables** | **Plant Nutrient** | **Other** | **Total** |
| **Twelve months ended December 31, 2022** |  |  |  |  |  |
| Sales and merchandising revenues | $**13047537** | $**3178539** | $**1099308** | $**—** | $**17325384** |
| Gross profit | **407707** | **126995** | **149462** | **—** | **684164** |
| Operating, administrative and general expenses | **282592** | **30730** | **106003** | **47231** | **466556** |
| Other income (loss), net | **12661** | **20731** | **3001** | **(2570)** | **33823** |
| Income (loss) before income taxes from continuing operations | **95225** | **108221** | **39162** | **(48026)** | **194582** |
| Income attributable to the noncontrolling interests | **—** | **35899** | **—** | **—** | **35899** |
| Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $**95225** | $**72322** | $**39162** | $**(48026)** | $**158683** |
| Adjustments to income (loss) before income taxes from continuing operations<sup>2</sup> | **25686** | **—** | **—** | **—** | **25686** |
| Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $**120911** | $**72322** | $**39162** | $**(48026)** | $**184369** |
| **Twelve months ended December 31, 2021** |  |  |  |  |  |
| Sales and merchandising revenues | $9304357 | $2440798 | $866895 | $— | $12612050 |
| Gross profit | 335682 | 116626 | 140389 |  | 592697 |
| Operating, administrative and general expenses | 259926 | 31019 | 95547 | 45581 | 432073 |
| Other income (loss), net | 35878 | 3200 | 2128 | (3768) | 37438 |
| Income (loss) before income taxes from continuing operations | 87946 | 81205 | 42615 | (50996) | 160770 |
| Income attributable to the noncontrolling interests |  | 31880 |  |  | 31880 |
| Income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $87946 | $49325 | $42615 | $(50996) | $128890 |
| Adjustments to income (loss) before income taxes from continuing operations<sup>2</sup> | (5024) |  |  | 2784 | (2240) |
| Adjusted income (loss) before income taxes from continuing operations attributable to The Andersons, Inc.<sup>1</sup> | $82922 | $49325 | $42615 | $(48212) | $126650 |

---

<sup>1</sup> 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.

<sup>2</sup> 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.**

**Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)**

**A non-GAAP financial measure**

(unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Continuing Operations** | **Continuing Operations** | **Continuing Operations** | **Continuing Operations** | **Continuing Operations** | **Discontinued Operations** | **Total Company** |
| (in thousands) | **Trade** | **Renewables** | **Plant Nutrient** | **Other** | **Total** | **Rail** | **Total Company** |
| **Three months ended December 31, 2022** |  |  |  |  |  |  |  |
| Net income (loss) | $**27232** | $**18582** | $**1717** | $**(26361)** | $**21170** | $**(6074)** | $**15096** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense (income) | **10282** | **2441** | **1994** | **(630)** | **14087** | **—** | **14087** |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax provision | **—** | **—** | **—** | **9933** | **9933** | **3943** | **13876** |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **9054** | **15443** | **6834** | **2145** | **33476** | **—** | **33476** |
| EBITDA | **46568** | **36466** | **10545** | **(14913)** | **78666** | **(2131)** | **76535** |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusting items impacting EBITDA: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | **9000** | **—** | **—** | **—** | **9000** | **—** | **9000** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory damage | **15993** | **—** | **—** | **—** | **15993** | **—** | **15993** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | **24993** | **—** | **—** | **—** | **24993** | **—** | **24993** |
| Adjusted EBITDA | $**71561** | $**36466** | $**10545** | $**(14913)** | $**103659** | $**(2131)** | $**101528** |
| **Three months ended December 31, 2021** |  |  |  |  |  |  |  |
| Net income (loss) | $18315 | $59206 | $15929 | $(27977) | $65473 | $(3129) | $62344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 3942 | 1850 | 997 | 1655 | 8444 | 69 | 8513 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax provision |  |  |  | 11163 | 11163 | 3759 | 14922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 11018 | 16934 | 6612 | 2233 | 36797 |  | 36797 |
| EBITDA | 33275 | 77990 | 23538 | (12926) | 121877 | 699 | 122576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusting items impacting EBITDA: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction related stock compensation | 274 |  |  |  | 274 |  | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | 8321 |  |  |  | 8321 |  | 8321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | 8595 |  |  |  | 8595 |  | 8595 |
| Adjusted EBITDA | $41870 | $77990 | $23538 | $(12926) | $130472 | $699 | $131171 |

---

------

**The Andersons, Inc.**

**Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)**

**A non-GAAP financial measure**

(unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Continuing Operations** | **Continuing Operations** | **Continuing Operations** | **Continuing Operations** | **Continuing Operations** | **Discontinued Operations** | **Total Company** |
| (in thousands) | **Trade** | **Renewables** | **Plant Nutrient** | **Other** | **Total** | **Rail** | **Total Company** |
| **Twelve months ended December 31, 2022** |  |  |  |  |  |  |  |
| Net income (loss) | $**95225** | $**108221** | $**39162** | $**(87654)** | $**154954** | $**12025** | $**166979** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense (income) | **42551** | **8775** | **7298** | **(1775)** | **56849** | **—** | **56849** |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax provision | **—** | **—** | **—** | **39628** | **39628** | **13112** | **52740** |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **35953** | **63458** | **26634** | **8697** | **134742** | **—** | **134742** |
| EBITDA | **173729** | **180454** | **73094** | **(41104)** | **386173** | **25137** | **411310** |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusting items impacting EBITDA: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of frac sand assets | **(3762)** | **—** | **—** | **—** | **(3762)** | **—** | **(3762)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | **9000** | **—** | **—** | **—** | **9000** | **—** | **9000** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment on equity method and cost method investments | **4455** | **—** | **—** | **—** | **4455** | **—** | **4455** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory damage | **15993** |  | **—** | **—** | **15993** | **—** | **15993** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | **25686** | **—** | **—** | **—** | **25686** | **—** | **25686** |
| Adjusted EBITDA | $**199415** | $**180454** | $**73094** | $**(41104)** | $**411859** | $**25137** | $**436996** |
| **Twelve months ended December 31, 2021** |  |  |  |  |  |  |  |
| Net income (loss) | $87946 | $81205 | $42615 | $(80224) | $131542 | $4324 | $135866 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 23688 | 7602 | 4355 | 1647 | 37292 | 8783 | 46075 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax provision |  |  |  | 29228 | 29228 | 3331 | 32559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 44335 | 77542 | 25957 | 9340 | 157174 | 21760 | 178934 |
| EBITDA | 155969 | 166349 | 72927 | (40009) | 355236 | 38198 | 393434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusting items impacting EBITDA: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction related stock compensation | 1274 |  |  |  | 1274 |  | 1274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | 8321 |  |  |  | 8321 |  | 8321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment on equity method and cost method investments |  |  |  | 2784 | 2784 |  | 2784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of a business | (14619) |  |  |  | (14619) |  | (14619) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjusting items | (5024) |  |  | 2784 | (2240) |  | (2240) |
| Adjusted EBITDA | $150945 | $166349 | $72927 | $(37225) | $352996 | $38198 | $391194 |

---

Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA 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. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure.

------

**The Andersons, Inc.**

**Cash from Operations Before Working Capital Changes**

**A non-GAAP financial measure**

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| (in thousands) | **2022** | **2021** | **2022** | **2021** |
| Cash provided by (used in) operating activities | $**440487** | $(170117) | $**287117** | $(51050) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **(250537)** | (94100) | **(391403)** | (184002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **(179995)** | (794938) | **56859** | (528073) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives | **170300** | 51553 | **65399** | (107188) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current assets | **8936** | (113046) | **10936** | (116403) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables and other current and non-current liabilities | **601512** | 678480 | **230293** | 667821 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total changes in operating assets and liabilities | **350216** | (272051) | **(27916)** | (267845) |
| &nbsp;&nbsp;Adjusting items impacting cash from operations before <br>working capital changes: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in CARES Act tax refund receivable | **—** |  | **—** | 27697 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in deferred income taxes as a result of the <br>Rail leasing sale | **—** | (95097) | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid as a result of the Rail leasing sale | **—** | 77537 | **—** | 77537 |
| Cash from operations before working capital changes | $**90271** | $84374 | $**315033** | $322029 |

---

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 current and non-current assets, and payables and other current and non-current liabilities; and adjusted by specific items 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.

<br>