Docoh
Loading...

ANDE Andersons

Participants
John Kraus Director of Investor Relations
Pat Bowe President and Chief Executive Officer
Brian Valentine Executive Vice President and Chief Financial Officer
Ken Zaslow Bank of Montreal
Ben Bienvenu Stephens
Eric Larson Seaport Global
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Ladies and gentlemen, thank you for standing by, and welcome to The Andersons' 2020 Second Quarter Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today, to Mr. John Kraus, Director of Investor Relations. Thank you. ahead. go Please

John Kraus

morning, for Good thank for you Thanks, Andersons' everyone, Second us The Call. Quarter joining Gilam. and XXXX Earnings

provided that presentation a today’s have will discussion. We enhance slide

many documents, factors, this factors This described in presented the webcast being forward-looking competitive in United including slides viewing If supporting webcast, call conditions and the including is via offerings. States differ of company’s shortly. made the and prospectuses slides as company’s of be sync. independent auditors will that will recorded, Certain completely today Act in with are the filings have be COVID-XX you’re which company’s those in ‘XX weather, Today’s and additional constitutes conditions, presentation recording the connection in its commentary the and andersonsinc.com, internationally, not prepared materially the statements our company’s and could our and on both information results economic publicly at statements, the the general website industries, page the actual a includes Investors the the conditions, and pandemic information, forward-looking financial in filed from discussed reviewed. result available

These be to income measures. the non-GAAP that income, by accepted attributable company as This Although contain others underlying do the to rate additional pre-tax EBITDA not alternatives taxes to net the should believes are operations, and financial presentation an about and be information income pre-tax information forward-looking and remarks comparability. upon adjusted company to accounting believes and not and company measures of company, prepared company, financial generally the statements it and effective give accurate. to income assumptions assumptions adjusted income that adjusted tax no before determined prove and as EPS, provide performance period-to-period evaluation these attributable adjusted income will adjusted considered its which net can its allowing better investors today’s reasonable, based or principles. are operating The EBITDA the attributable adjusted the diluted assurance to that

me are Chief Executive Brian Pat, prepared will President Financial and call and Officer. Officer; Brian Pat take today Bowe, our After be Chief the Vice Executive and your remarks, On with to Valentine, happy questions. I and President

rescheduled Before opening Pat want makes his Day. I inform our we’ve that to you Investor comments,

Pat, yours. it that details look format the We more We present morning Tuesday, sharing you forward in will of event a about virtual December is X, the to floor With that, with on soon. XXXX.

Pat Bowe

brought The to attributable John, you, extend to as our story posted quarter morning, shutdowns reduced The you by peak fertilizer first Thank the the the late during in and as decision solid quarter. income. We for was The the plant farm our margins largely we but were pre-tax same small efficiency continued the of significant application good volumes reach gasoline to second Plant them a earned services quarter profit the recovered affected business up both Group The joining groups normal quickly earned everyone. improvement to income center be Nutrient four pre-tax Thank positive quarter. as distribution and to company, online. Group pre-tax quarter. as positive the in Trade achieved generated back quarter. group’s still demand, spring allowed Wholesale for The call second review results a morning second substantially. retail all results. Group this our Ethanol

income the XXXX strong, business merchandising group’s significantly down assets the the While earned stayed in harvest due small to was East. by the

American repair record was lower. demand and Group’s lower to traffic softening idle. traffic and for all nearly customers' on as demand The to rates rail hold and reduction results of in were North includes grain lower ethanol a fall that carload lease to services. continue largely implications were farmers addition, Rail railcars continued X/X slightly The of In their

structure our in minutes press reviews changes second business of Brian we organization spend results, quarter Before night. and our financial a release I last want announced the discussing to couple

under serve Kroger to in leverage look Ethanol ways the will enable Proly Jim continue trading our management continue company. We the take combined combined fuel and President, to costs co-product and as has role the an & and and business, umbrella. unified lead will to to the company group. We for the as and allow end will lead risk arbitrage This combined Ethanol of food, chain on Trade other. overall one all reduce management to one change also products the from origination, base With logistics our Groups. one manage better customers, expanded across of that its group brand knowledge mind, will the business. and us Bill the within will believe for feed the we having We’ll benefit supply from risk,

& we I’m under outlook this benefits realize when Groups combination, savings the Rail savings of things President of our over as of integrated. I’ll to XXXX we and the While rest he’s business become Who and oversight the Brian, two into also driver XXXX. has is these main for back finished now combination, be the discuss this was McNeely. expect drove also the combined going also to strategic Nutrient Brian? expect Rail the to to early of the company to though further units cost synergies. identify turn Group. The Cost Joe

Brian Valentine

Thanks, good morning, everyone. Pat, and

We’re was XXXX, of $XX.X net second and diluted $XX.X diluted quarter, share share revenues of reported turning evident operating $X.X six. million on attributable benefits Andersons attributable $XX.X net and $X.XX per second or million income second per to per $X.XX in our income of $X.XX administrative now the The second revenues billion. The $X.XX to or of per $XX.X quarter $X.X Group expenses year-over-year. tax offset X/X Pretax our income diluted of Group by quarter tax declined XXXX income income of initiatives general net $XX.X $XX the diluted second company second million the the quarter income second which billion. quarter of significant approximately million million reduction results slide we million as was adjusted adjusted the on and million, net by This on company the income the In were lower compared XXXX, almost Plant share of $XX to $XX.X reported In the or change the quarter of in share of of Adjusted or income cost million recorded $XX.X EBITDA with compared Trade Ethanol in offset $XX Trade of that a XXXX. of of in improvements XXXX was was for taxes, accounting lower million XX% an in second in company in the million quarter to quarter expense the of year-over-year attributable XXXX. benefit to was we by Nutrient. of and EBITDA to difference. as Adjusted

Our quarter based effective of attributable each loss interest. rate the or could tax non-controlling to on vary considerably the income amount

from share of was receive reduction and first million continued benefits the adjusted to year-to-date. lower and These capital debt beginning last As Act. than the at million time at as Long-term Long-term debt the flows year it to quarter approximately focus $X.XX strong in year. the per on decreased more management than approximately a an $XX to quarter, well and had to for the benefits Cares lower $XX $XX working remains the of per operations We generated debt Short-term as was share cash compared $X.XX impact rate and we the this million reduced of year $XXX result than spending. removes year-end priority. ago. a has capital of expect as a million

$XX.X grain group’s the corn and Group’s last than Trade appreciation Eastern substantially its each Corn as lower million, lower $XX.X capture fewer of benefits. second of $XX.X year four adjusted Trade bushels income EBITDA from million to quarter units, with in the move also legacy crop the of second group’s Group in of the of also Trade million was Group XXXX. with was was same slide second of quarter recorded $XX.X Lansing we’ll of belt. to than year-over-year seven. basis on the in the income of quarter million, and XXXX beginning XXXX. Now period results. reported adjusted of merchandising to on review par $X.X from results. on wheat Conversely, the a products substantially in compared outsized efforts to was The EBITDA income group-owned other provided pre-tax strong synergies of and Income last and XXXX Thompson’s the pre-tax adjusted businesses integration income pre-tax business from the feed $XXX,XXX, assets storage our small The the million, pre-tax commodities due The compared and grains, adjusted of quarter income the for year’s to

quarter company Margins significantly attributable income slide the eight. the of to quarter to to the to negative and compared Group XXXX. Moving economy The until recorded increased. gasoline U.S. second pre-tax the of began quarter in the reopen million part remained of second $X.X in early $XXX,XXX Ethanol demand

restart earlier, the plant. Pat until shutdowns demand and As improved enough margins explained extended each to group its spring

half three of of plants all the back the included year-over-year the plants. second and at capacity difficult $X.X of earnings million the first of the consolidated had for for of comparisons ethanol in quarter expected, quarter. the quarter’s significantly. those all million second XXXX were of to By want whereas everyone more of compared includes during quarter group results of EBITDA XXXX. included Results as in remind total five the XXXX online million that results adjustments. $XX ran the approximately non-cash company the than to plants, plants the group As I reversal also The recorded the margins XX% XXXX improved production quarter, to $XX.X in the equity also mark-to-market end of attributable five quarter are

of nine. income million recorded was which second Turning slide quarter $XX.X of XX% The quarter, million. in over results Group second a improvement Plant pre-tax XXXX the Nutrient $XX.X to

in the group’s supply a the of Operating year-over-year season. reduction markets, into Other second substantially, XXXX. strong quarterly improvement. new EBITDA the recorded for second lines quarter volume $XX.X quarter sales expenses planting Nutrient marked of benefited the The fifth from we million quarter also to initiatives. from consecutive almost the expanded chain up XX% cost grew business was move Ag to the year-over-year was Plant up as million, and as group due group channels. products continued $XX.X lower

XXXX to a entirely Turning a million change to to lack remained almost Rail was of Group year. weak in income In the generating $X.X second quarter in $X.X on year-over-year lease. compared rail maintenance Leasing sales due The XXXX. quarter. market, the were XX. the pre-tax profitable last slide of impact million utilization as income unchanged to second the and current rates, results of cars income Service the of offset in from lease quarter of car partially lower that other and lower comparable was expenses of

$XX.X the and back Rail XXXX. year’s of million thoughts now, to last for this in the about turn was Pat to year recorded for thoughts with quarter, remainder which line Finally, I’d some EBITDA Group things like results. of the And about over early

Pat Bowe

Brian. to the realizing commercial benefits, excited current make combining opportunities cost help These and of progress also four ethanol and the result two. combination will reducing strategic Thanks, on us groups we savings moves should continue anticipate the by by our about into through the I’m good trade groups. that expenses. And

our customers. providing is extraordinary reduce a enable to us our achieve company positive all debt, free assets in cash most chain this planning flow crop and nimble A service like ag innovative bodes good belt for ample so and business. be now we looks harvest. Our to most and result merchandising supply That grain our devoting can plentiful friendly on setup while well storage long-term ultimate the in has work profitability of company. to the of rains followed will a vision season, to our temperatures in what North American stronger generating a the by ourselves for All focus grain

months trading balanced this We ago. value than products Supply continue well time. in producing and the set to on The normal in core five better our feel at An of seem to up pay our and plants and more results next year operating in an will gasoline can fundamentals could space with what good around higher will demand season. did have business depend Ethanol of a our a early demand Plant teams be increase online fairly crop accomplish. efficiency at business Nutrient two feed three nutrient fall business driving to for much miles. our dividends. All large we operational controlling optimistic return them. are The the we costs work efficiently, and about back We’re improving our and integrated geographies, done processing about we’re through

headwind However, the at the prices profitability outlook into could to challenged, which for a continue remains gate to be corn XXXX. farm

you American fleet XXXX. As challenged leasing repair rail business is for many changes North to idle, of see into and closely linked in services of demand continuing the With well railcars almost GDP. the know, to be X/X we

shorten terms to diligently and all finally, operating manage our lease and customer and efforts. terms health the credit And We will of continue their focused when expenses. we appropriate, for employees remain on safety are thankful and

these thankful are relationships supplier strong well our also for stays and times. and and We safe everyone in customer hope unusual

XX%, rate was for to X-X correction. Before And make said, quarter, a Brian bit I’d it like covering brief run a run the sounded percent. our was X-X I you turn Q&A, rate XX%, percent. ethanol the little it When over like to

want X-X to we that get XX% quarter. the percent clarify was just number I for that straight So

hand that’s and to our So we’ll with all completed, back it Gilam, happy I’ll questions. take operator, your to be

Operator

question ahead. [Operator Zaslow show from Instructions] comes our I Ken Please Bank from Montreal. of go first

Ken Zaslow

everyone. morning good Hey,

how you savings. Can on as the cadence as And operating put you some First were about there the that? of reorganization, to is mentioned efficiencies question, parameters thinking cost you that well that?

Pat Bowe

glad I’m that you Ken, Yes, up. brought

the right savings been in Ethanol out felt working two looking combination achieve back And to of on programs we synergies, our of office lean back the front We cost doing for us the office, the which and into well help that groups and combination trading with at byproducts of end aligning could more that on of way we’re G&A we’ve a couple G&A us now. the origination especially So Grain to see we’re when help & Grain. strategic here our years. reductions four of

of happens benefits & So that combining by Grain but same I we think quite does, Ethanol that that the of more combination business. two. have strategic back the in benefits & amount those don’t there’s PN some side Rail see do that office

Brian Valentine

Ken, And this is Brian.

we of $XX As additional savings into million it annually. characterize would I probably about an XXXX, get as

in XXXX, a million. achieve stuff minimal kind of and a partial that being it only year, XXXX, to about I $XX of cost impact, some think probably make but we’ll

Ken Zaslow

know that? or of but they as they do start Perfect. start margins you to to is there just And kind from it’s then thinking can begin widen. domino more elevation talk you an issue, a of second? How a much benefit about about the as that that how to effect export keep And guys enjoy I a that you for

Pat Bowe

Yes.

hit Ethern in in It’s Ken, been coming will be XXXX coming crop know, sledding as head. on tough continue right on. farmers to the tough right quarter bad our here, you year a You assets, the with now third that that off

backs market, export As season good very you and in big export have Jan that the margins for going us. mentioned, a and through up right Oct for are we’re to margins into

off one, export I quarter back and the fourth robust will solid demand. very big of think the a crop coming a a be So

So general. you’ll think, good numbers fourth I in the in see some quarter, industry,

Ken Zaslow

past you I basis, it’s where XXXX, But XXXX. And of the now have kind the have do early XXXX know stuff. about to kind and past little like don’t a you I crop, I it’s you different you in what’s if I But have us it’s you XXXX. all in different year the still is have and think of is XXXX, know a kind the in a it’s a think behind some know bit, do as of, work on

potential? frame normal or Rail, really your to it framing but normal, I’m it that? makes of some long-term is it’s like the come target that things are actually actually a just give seems not earnings feasible be growth to you year, COVID-XX exception of relatively that? It kind to working. seems With just It parameters And things like how are overestimating, maybe developing. but Can to

Pat Bowe

No.

it I you framed just think right.

the look storage well Margins acquisition. that improving. a lot. year XXXX all this during general. feeling to crop, performing product So business, been quite the we’re be going with a to Grain we that’s Coming optimistic like time. off the with a acquired in We about tough lines help Lansing more robust in They’ve

miles and shaping related Ethanol, How to driving a back and to thus, good much margins Ethanol. lot lot If and margins economy very is needs the said, XXXX year. XXXX. question ethanol. for on could COVID the be you a The a into But will gasoline overall and come in we supply year, had like be, in that post-election demand up and demand nice real depends positive, manage with So next turnaround will be XXXX we in normal, quarter to going solid all coming margins look back. what a for COVID. keep this second in ultimate a like and

a We’ve Plant there. has probably what with uncertainty be excited holds about in sluggish Ethanol so in in the Nutrients, rates So we’re business, with Rail many made of next lot to and PN bit improvements our parked. a little going cars it. more sluggy is year

So in But optimistic we stay going rail. soft overall, think more rates in are about pretty XXXX, general. to we’re

Ken Zaslow

sales just the has driving you again, used extent is actually which recovered? chart. my and demand. the to final Because, And are ethanol sales car recreational off frame rental Can car the question on

supermarkets, that it is maybe as at more So driving much long frame up And Can all? there. but driving I’ll making distances. not leave to that for the you people

Pat Bowe

Yes.

or X% of a second of that’s that’s demand people mid-XXs you up a the commuting said, right? it, you say vacation let’s or mean, trips movement call to, to think instead devastating, the was gasoline if want X% and in quarter, previous been gasoline every the from big making, thing of day. helped. earlier to just of casual a year’s a in or shift, I that’s return We XX% you’d So came low like see driving it call come is to trip something back that I work

help I to remains make But second gasoline demand the that’s commuting think you here kind to people getting will a the little happened last going to That driving, that. every more up be day, of as driving COVID wave with has still the and difference work a in seen to month. recreational picked big bit of mentioned, forward. return of kind

is pretty the So balance improve. margins and hope right the and just can continue maybe that and now, we good, industry, in there’s

Ken Zaslow

I you, guys. appreciate. Thank

Operator

question next ahead. Our Stephens. Bienvenu Ben Please comes from from go

Ben Bienvenu

is from questions, provide additional Continuing overstate can think business, the one you’ve the better mean, don’t to really linger that about on frame should since income. us going setups be then to XXXX storage recovery, are Ken’s Ken’s crop the put relates favorably thread if us for upside it The the setup the goalpost for side Pat, Andersons. of to but could if does things? seem I this been into and like be the is crop would color with as group looks trade shaping framing it, I help want on downside the it nicely I or kind up helpful. of at what size you It up? of the And to the variability Any you to and ELEMENT’s help as point, and the us

Pat Bowe

Sure.

have struggling important still from third to quarter, that last the just we what’s assets that it’s to Eastern we’re going think crop year. didn’t because with I note

years, large in that’s marketplace you here remember, and now. and might wide the making charges wheat. in not carries for in wheat very us, Ken benefit I As previous carrying us from follows know wheat We

part in years. the storage prices. the income, a has some and corn have. settled So to we’ve When off sorry, back pretty saw the But saw with one grain market wheat up Farmers two, we’ll reluctant rallied of and been we bit selling. about don’t which $X a missing government earned $X to we had that low That’s corn now we we little last little bit a down. report, $X.XX, three get seller well be bean

shut around extent, they’re on this farmers but to and I right $X.XX low think now, off with come some need beans their crop. kind bigger to of $X.XXs selling market a to going we’re to have fall

We’ve exports. Milo sold excited about Chinese beans. We’re and the recently

really on I coming outlook of months Oct-Jan is a export demand back that has demand really side, It’s of a results our but the going corn grain in storage. little the be online note So back return We consumer had in some of feed good with bit. into demand got businesses. window, looks at earlier, the the recent some interesting good. plants mentioned the retail as high is soft, the And food-grade to to ethanol restaurant

bit shift. that So it’s of a is kind And for Grain. outlook different little of a

we we’re of optimistic, new in crops fourth So in SND XXXX. going as general, especially quarter kind with into starting balance the as coming

Ben Bienvenu

Fair Okay. enough.

I unwind level On the might missed guys the back And we progress fall, about then might guys us through did what help see or industry S&D, on as seeing mark-to-market you is reasonable are summer and think business, the what into you’re our kind what the the this, expect get XQ? we the thinking? and of there bearings you to in of not with about that but Ethanol unwinding? think have of talk restraint Did you you if end and might

Brian Valentine

Pat, I’ll of this the Brian. a comment half the roughly did first second little Ben, quarter. And see of back SND. Yes, in is the then the some mark-to-market bit we about come quarter maybe

Pat Bowe

Yes.

return. the highly So got at facilities. The down. that work ourselves, spring had news quarter. our was did took pretty most we shutdowns up the much all we our really plants second a tuned, well when then plants to We from was they When whipsaw of and came we first good coming scheduled of

for in middle the of right down. to need we our ELEMENT, start-up new shut plant, the of when was challenges One

expanding encouraging we ethanol. products plant, plants the as plan mentioned our to but So in for the we running timing well. it’s new and We feed have which two us of is running, for feed, that for up wasn’t ideal outlook making our earlier, now and Kansas high-protein

little is right in good question a asked is demand have with production and one, The Ken. as balance ethanol with SND talked in this sign. some a good a we at time, in about macro down that we there assets you now that’s So holding

haven’t exports, a been it’s big had We boom relatively in stable.

have in maybe capacity an little bit year. through and as a the are reasonable should in trying We back So margins put corn in new well ethanol without high few But efficient. continue more several appreciate and in she of lot little sound prices, our that general, the investments. They’re as technology the which built. see increase industry. thing. some a right is hope of help a goes. times to last new years exports, now, going steady come highly We to arrogant, a demand, we’ll We’ve of really increase the balance said driving And online. a then in we’ve plants bit That’s good in can that, can scale. They’re it’s

think we industry. in the we’re top the running of decile So

make running, and at be during be should margins running high-efficiency and that So this we plants should period.

So pretty we about that. feel comfortable

Ben Bienvenu

of best and thanks Okay, luck.

Operator

you. Thank

comes Eric ahead. Larson question next go Please from Our from Seaport Global.

Eric Larson

questions to Two ethanol. related

light So in and if seems switch. a like much of per that in, It or is Is ethanol could like it’s off it you of are and the the proposals front the right funding in? on And gallon is government in new out how this Senate now? get? House

Sometimes sometimes it’s it’s in, out.

new curious I’d funding here program with for potential maybe for on we in some sit of the the the your where U.S. industry So funding be thoughts ethanol help

Pat Bowe

Right.

answer the don’t sure. question, first know we for is, the For

you And said, us, first with back a all, what just now us. of in have I Eric. Eric, you to company. covering to different was glad So welcome coverage

support they’re Ernie? remember exact On the now. kind ethanol bill, funding, some of of in COVID can’t the it name title I new getting the the the bill. calling government

John Kraus

Heroes.

Pat Bowe

in So ethanol Heroes the farm state you been House industry suffered. not included of really a Heels. some to that That have would be when that the the have discussion like some into would past, for be It’s had ethanol will in that and whether clear know the Senate there’s encouraging of the both bills industry. period lot supported good be that Oh, been and of names the senators, still.

discussed it’s both now. being So sides right on

answer path for that’s So sure. simple clear to but we that’s something say going to happen a for not It’s know is, don’t proposed, been sure. that,

Eric Larson

Have that gallon thank back. rates any you potential been that benefit me an unknown? they and could Or back get basis? of is well. as you Have welcoming still rates any a by be the a range for way, It’s on pleasure there to of mentioned

Pat Bowe

Yes, it’s still unknown. over I all an cover map. the

So that. too to early it’s on comment

Eric Larson

gains if they came a Okay. the margins, more half back your only kind had of in even of question this here. came it all A ethanol of second your sanitizers touting if lot like like out really looks late folks of higher in Have you have stuff. MTM pretty half for Then other you been some around. profitable quarter good one it of quarter, alcohol of the high-grade and value-add the mean, participated about I to looked competitors be your kind stuff?

you you are them? getting Or producing are of benefits from you any products? those did So types

Pat Bowe

Yes. Good question.

almost grades for grade does the So four different motor really we run the There’s ethanol fuel the market. fuel fuel-grade ethanol everyone plants industry. of with as in

is grade, for for and sanitation USP is is grade allows purposes. Then U.S. there’s FCC, which the one grain Second higher potable a Pharmacopeia which spirits, highest then food or which food-grade codecs. grade neutral some and alcohol. And does chemical called one under

the fuel are market grade. gasoline We in with the

depend to to want could something people with quality, want that product can at food-grade good could have It’s in looking it space. But if but decision the high-end We a put the high-quality options they quality really interesting had thing. be good be of poor made there, in that. have the to that. ethanol some exploring or should time, a a players that’s major industry, right do been this wouldn’t we haven’t been interest. very really do at that grain not note discussions of that’s just neutral and spirits these We potentially We that There on. do has out quality having

point, we’re this just at something exploring. So it’s

Eric Larson

Okay.

margins Nutrient. probably strong. and quarter? index increase to Plant profits. I good had It you Or were the break year-over-year a able that? on Sounds And out kind margins some But did did and good. of follow-up anticipating components pressure you still pressure. And then really one that. deliver obviously, what quarter, in under good a Were under volumes the affordability on you pretty really in the really pre-tax how quick you looks second been had hold like dollar

Pat Bowe

Yes. a It’s question. fair

driven more the a had we a push on acres mainly for by good So big year to season, Spring corn.

held, under didn’t much Margins it’s It’s specialties, that given know, So had decent as or was tough, the haven��t down quarter. go as margins. increases our wholesale during tough volume really corn the because a this margin prices time. Eric, in farmer, up they at you though, we segment still on up well, distribution the

So challenges care parts just I’d it’s the margins to tougher, did was sort working harder to as while those stuff our COVID. export with other of gardens, their the market interesting In products are with ports that the time of well we lawn specialty widen. with are and and lawns get say of home during business, on people

course, courses professional So was demand for domestic were up. products those shipments we golf down. golf make of But

in the of it’s So specialty our of seasons kind two tale businesses.

on across board. all the across back cost that efficiencies, general, fertilizer better. a the the better and of of the business aspects of board, A were price lot on in of backs the So not increase productivity

lower and our was So stable, I’d relatively costs. good volume that is pricing say and

Eric Larson

Good. it helpful, just question. I Pat. finish And here. efforts other reorganization And your applaud That’s very one with I’ll then

Ethanol to benefit this there’s simplifying origination obviously, sense. so merging cross me, model beneficial. is & already. The a that issues your makes lot you of think, be you little There’s can really cross alluded a I strategic together to benefit going of Grain

think to the be benefit alluded maybe can you really with So kind thinking benefits could be rail And of as more there. out Any I as with potentially any see helpful. SG&A you on the strategic that us, could would you an share nutrient thoughts that benefit. what well? as consolidation expense loud, But that

Pat Bowe

Sure. Sure.

could allow felt us back synergies. company. we I were we that years, do of cost over across combination on we’re more the As And couple trying been have the to with to G&A that office reduction last mentioned the tackle working this

we’ve run mentioned, next $XX reduction Brian on targeted rate for a year. As million

cost Ethanol. business. first a got some achieve was they natural The originally the fit were etc, have year that’s We this it’s Grain into & when severance, of with But Ethanol It to Andersons happening. together

we So DDG’s of, a origination, you on mentioned, lot like etc. grain benefits strategic see

Rail of benefits really office two case the much. that’s On see going different & to where a that PN, back move, it’s And cost we think they’re really and the there. savings don’t markets we’re overlap

Eric Larson

it Okay, I’ll perfect. Thank you on. all. pass

Operator

to like for queue Kraus? show further over remarks. call Mr. you. Director Kraus, no turn Investor in I’d time. Thank this Relations I of to the questions John closing back the at Mr.

John Kraus

on to Thanks, information again want joining available are supporting all Gilam. you of this that We additional presentation morning. for us want to website I mention the andersonsinc.com. page slides also Investors this at thank and with our

us hope Our again earnings scheduled XX:XX at X, Until Eastern November well. then, third results. we XXXX at review you join next a.m. when Time, call can is be XXXX, We time. quarter this will our for Wednesday,

Operator

gentlemen, today’s this conference call. participating. for Ladies Thank you and concludes

disconnect. You may now