ANDE Andersons

Michael Hoelter IR
Patrick Bowe CEO
Brian Valentine CFO
Kenneth Zaslow BMO Capital Markets
Benjamin Bienvenu Stephens Inc.
Eric Larson Seaport Global
Call transcript
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Good day, ladies and gentlemen, and welcome to The Andersons, 2021 Third Quarter Earnings Conference Call. At this time, all participant lines are in a listen-only mode. Later, we will conduct a question-and-answer and instructions will be given at that time. [Operator Instructions].

As a reminder, this conference is being recorded. Instructions]. [Operator like Hoelter, conference and Vice now host to Investor hand Mike today, President, to would over the your Relations. I Corporate Controller ahead. go Please

Michael Hoelter

Thanks, joining you third Sarah. and XXXX for quarter The Andersons Good for call. earnings everyone, morning, us thank

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

Investors company's the future If viewing SEC. views a file are forward-looking remarks the to supporting to the measures. on of the non-GAAP encourage with GAAP comparable shortly. available and in are Please of recorded disclosure information that subject These the via statement direct factors. current with and the related this of performance, review could company's as described the are respect materially constitutes conditions. your our most statements. and forward-looking and made results attention to the and factors industry reports presentation. on which statements to of Actual within slides many page financial this differ being Slide you will Reconciliations risks webcast the measures directly events, various well contain today in X financial non-GAAP to be at presentation the financial release today's and measure is will you This presentation appendix these included We prepared uncertainties. statements website are discussed to slides result disclaimers as the the on be commentary as Certain the press in forward-looking of reflect presentation webcast, sync. our This recording

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

Patrick Bowe

everyone. to results. review for call our Thank and Thank joining morning, you our quarter third you, Mike, good this morning

favorable addressing included we ag which strong performance the quarter trading have adjusted pleased to solid teams EBITDA overall an our our the well, in continued provide to exceeded extremely executed our the from and in low million, a grain operations our quarter, significant to with period these business August, margins service market an well our We markets. with recorded number hard volatility. quarter Trade strong XX-month are and elevation a $XXX especially where fundamentals, Trade all-time had note grain XXXX, markets, trailing merchandising sale labor not dynamic Group segment. have continuing that in extraordinary elevation I'm a inverse also Across the challenges third leasing results, working its Rail executing We of in regions. chain with great including stocks provided in are best our The since Along opportunities. through in Rail excited of customers of supply and record momentum. excellent third company, had company and

continuously also the Louisiana were strong basis customers. inventory. its in benefited by Our not appreciation from recent serve we impacted and were to able Idaho wheat hurricanes, locations

well. seeing very receipts than we perform return and Winter expected, storage to were continued business are wheat corn distribution the propane Our markets. wheat to harvest and income better

new centers in quarter, saw our from profit gross trading Swiss We the incremental including also profit office.

in loss Board ended the very a were ethanol and had segment improved stocks margins U.S. ethanol our Although the quarter quarter, crush low.

oil the completed improved harvest. sold and were shutdowns our basis seen started in We relief feeds corn by distillers impacted negatively in quarter increased Co-products, quarterly at call, high-protein but predicted corn last third As we the as production scheduled our values. have at plants, ethanol high we especially and we of were earnings ethanol. corn

reverse we expect in related quarter business. the included $X.X and these to also The nearly mark-to-market Plant prior line to results this million, results. majority and expectations year with losses ethanol of our quarter. products in were of for fourth XXXX seasonal Nutrient while quarterly merchandising of Third-party comparable doubled the

year-to-date fertilizer market. strong, Our numbers positioned in and ag are supply and well this limited high-priced we've been

lines costs agricultural and specialty negatively impacted product turf margins performed challenges. while business well, labor by rising and manufacturing were our Our input

Our Rail sold leasing intent the August, was Rail the and we business announced repair to business. in sell

serving these to We he's to for of focused when have finished, of for to and and quarter back volatile debt. of proceeds the I'm the well things to Brian very customers. discuss portion rest entire now past used over performance reduce on a year, be our going outlook Brian? to proud I'll the financial some and I'm our the And team the sale staying over cover executing data. Rail turn key our in markets XXXX.

Brian Valentine

million and now results of million. per EBITDA Adjusted trailing to quarter everyone. for an the million, Pat, continuing improved of has and The XXXX from income X net $X.X the XX% $XXX $XXX.X XX or adjusted operations quarter the business $XX.X turning $X.XX or $X.XX the the on million, to of good revenues significantly and morning, with $XX.X This was an of quarter million EBITDA million our diluted attributable $X attributable Thanks, Adjusted nearly for diluted in or per increase million. adjusted loss #X. quarter $X.XX diluted Slide $XX $X.X compared In share year-to-date net third EBITDA Each continuing loss when the compared share of continuing of operations to XXXX. XXXX million diluted per from billion our operations of third operations revenues company income third increase We're to net of company of $X.X of or $X.X of XXXX. an of share from compares continuing from net EBITDA was $X.XX to on of billion. units months on per third third XXXX, a reported Andersons quarter share

of quarter currently forecasting non-controlling to taxes We XX% between XX.X% based of attributable the each income Our year effective tax recorded rate rate the are full quarter interest. varies for tax of the rate and effective an XX%. a amount loss on effective and or at

flow debt. generated $XX.X year changes in third million full $XX.X discuss compared We quarter move Year-to-date capital exceeded Slide operations million to of liquidity working we'll cash, cash Next, cash from in XXXX. XXXX. of to already flow our X continuing and before has to

year. have are have have XX an been as reduction grain reduced. the seen prices seen high, has and have the expected borrowings at revolver. seasonal We from inventories as spring Futures in readily reduction debt down short-term balance from in a the our million of we our borrowed the our remain inventories of in somewhat, March markets levels earlier this but down marketable and as businesses, declined we a occur Typically, highest seasonal the result $XXX paid

will which spending, for We continue disciplined a $XX the take million expect to about be approach will to year. capital we

EBITDA our have have a to We long-term reduced balance by agricultural than target lower to long-term we positioned of core in year-end are since stronger X.Xx. debt debt businesses. our invest well met sheet, stated than a leverage With and of less more $XXX ratio million and

we We fourth from also $XX used million, than cash to for approximately ended of will payment, the quarter resulting tax portion with our a million $XXX asset will which be expect which is the significant sales. quarter more be typical,

businesses. million beginning third quarter million of of margins of harvest to same income compared a had on larger-than-expected related accumulate Elevation move pretax review from as the able $X.X segments, XXXX. Now period opportunities million was I adjusted profit areas were in strong. $X than were income income particularly on business to our to Storage early $XX.X record of crop includes XX% gross new each to prior of draw Trade with and returned higher Merchandising Slide wheat will have pretax the Trade bushels. for new #X. about year we

extend we chain the which the of the our Trades U.S. Southwestern acquisition of $XX.X to double growth adjusted also Capstone $XX.X quarter just addition EBITDA million, the was of the in we just help on of after feed organic ingredient supply will the for quarter dairies. quarter, nearly the third million EBITDA XXXX. mentioned, to adjusted In Commodities end closed to

million. third fall basis a the loss by This to trading and partially strong harvest. Slide XXXX reduced offset values pretax co-product by quarter compared of to quarter the were $X.X attributable third Board margins corn Ethanol third-party company to to pretax was Improving income $X.X of Moving results. X. prior million high had crush

activities As quarter. Pat from nearly mentioned, $X expect our hedge most third of fourth million, to of losses which we quarter results unrealized included the mark-to-market in reverse

call, million in third this we EBITDA for quarter quarter completed of of third million maintenance to XXXX the As the of of $XX.X the $XX.X planned last compared Ethanol our year. year. shutdowns in of have generated all

Similar to solid XXXX to to lines. the business with loss a pretax third continued pretax margins quarter of X. quarter, $X.X per loss our led million. of compared ton to third positioned Nutrient The a product well agricultural Turning demand in Plant recorded $X.X inventory in last million Slide quarter

experienced growth. XXXX. for for business quarter increase, remainder specialty thoughts labor $X.X volume I'd and to million turf to in to like a back about for by XXXX turn longer-term million some was of compared now challenged of strategy third preview material and the our EBITDA Plant and costs. Our quarter in of Nutrient's raw the inflation but Pat small $X.X the was things a

Patrick Bowe

Brian. outlook XXXX. Thanks, We in our positive remain for

historical elevation grain high, that This demand us expect trade demand into support commodity is income for merchandising to abundant U.S. grain higher will and provide an high expect XXXX. additional demand our Farmer than produced we and global is area averages. we Harvest has into draw progressing in XXXX. While seasonally slowed, world crops prices and export opportunities continues well. harvest

potential harvest. remain tight the we conditions, for projected beyond these Worldwide optimistic Given to XXXX this our segment. are in be trade supplies

harvest Some the space, reduce acquire to harvest the complementary more for a from and we not broad grains of portfolio, as storage to storage well trade see consumptive and eliminate demand. than demand but corn the XXXX of able income by projected. opportunities. returned will impact we're A strong summer merchandising as has providing continuing wheat, worldwide wheat With opportunity benefits large

and these We continue risk. we well markets, focused managing in remain on navigate to volatile

in could the prior sales. XXXX, high-margin year mind our especially soybean While included quarter we believe in fourth comparable to Trade be that some keep

stocks We despite industry Board the and has ethanol from pre-pandemic currently crush results recent to XXXX. to expect delays wet but production levels from margins quarter weather In strong new continues demand. across to the this good Air begin California harvest from application we to positive overall values. shipments California returned oil values for of are plant. is Colwich, year. and belt. first margin demand later meet are low, gasoline U.S. the Ethanol, this some increasing Resources on into our demand approval received Kansas diesel sales to corn support We've expect high our as our Co-product ethanol the drive renewable Once verified, Board corn

of period ongoing Plant segment supply. We Nutrient tight perform to our well an continue expect to in

suppliers price We our have risk. manage looks execute appropriately product in lines. managing to With committed Demand sheet, well to With metrics. in markets logistics be risk, excited and track strong improving a relationships have positions and with our all and continue and and volatile a record our prepared solid for nearby we're we're We're well for this in financial balance prepared growth. to to prospects volatility positive outlook, maintaining and about our strong are operations. strong

Now I'll to where key summarize XX, of we'll growth aspects our turn Slide strategy.

with about like this logistics our an opportunities. decision core and and to our well segments, commodity strategically bolt-on past and the a recently with here the Included companies of of areas core trading It a with completed complementary as acquisitions review fertilizer using focus Commodities such verticals in portfolio of on align grain include office. new and verticals. new deep markets. the new trading agricultural products X our we our in in to lines our our optimistic Directors. products together long-term new We're our months, growth current recently and redirecting as targeted adjacent focus include: of was shared future This our include our ag Board applying areas announced to product strategy exciting with could to Examples prospects of merchandising the of on divest trees acquisition. limited outside We're could Capstone our investment Over conclusions X illustrate consultant Rail with including as review our that and in several expertise Swiss growth also growth assets. business fixed talent core, or several geographies, trading work

solutions farmgate to other we're addition product focusing for investigating as In ag. sustainable lines, also on such opportunities and carbon adjacencies in

chains. We will feed in to in premium food continue invest products and supply

a expanding including and We surrounding evolving our rapidly organic are Biofuels supply and are for chain renewable evaluating and food fertilizer both offerings. new diesel. organic is ingredients animal in space, human consumption, pet especially

optimizing participate and our will well production agreements feedstocks. as as We through of offtake input primarily here

plants to efficiency maintain to our continue position. our in ethanol improve we'll strong in addition, In order

to expanding products and row our growers product for beyond innovative We'll M&A of strength specialty crops organic fertilizer our products. core addition developing In new traditional offering, also line and manufacturing we're within our areas for extensions crops. consider consumers of

continue core. trends ag to our These stay in discipline allocation with industry our true with align that will within maintain favorable times capital to strengths core Andersons the investing We in capabilities. evolving are exciting The and and

like on We entertain questions. your we'll to well to capitalize these I'd are hand the back positioned to Sarah, With call to and be opportunities. that, happy


[Operator Instructions].

from comes Our Capital first Ken BMO Markets. with of question the line Zaslow

Kenneth Zaslow

positive do the have. you side the that? be quarter? discuss my is, on questions question. will was first of think I And the That during quarter, transient side magnitude can of couple negative One or either the when you on a think what about Just you current

Patrick Bowe

funny, think harvest. -- belt, some Ken, and probably Good question, days a big said the were storms had week we in maybe across those or we Okay. about come we Ken. you It's I know, that delays XX worried because, ago corn as ago, rain,

we've frost, harvest week, bright for really got sunshine the is good some eastern actually belt, in this Now grain conditions. which

maybe weather days a like it it maybe concern feels have isn't XX of been big ago. as So would

the So that harvest side. have seems alleviated to on

production the I Nov picked and crush ethanol is biggest margins now pricing right think up. factor and probably Dec, in about really swing has

and a factor be big December, margins the results. quarterly stay will November can in our strong through if So

Kenneth Zaslow

and is is I to onetime that about there was that because might not Louisiana your like created things not is the were margins may way negatively plant I and -- the to -- business side, but see. of you anything of model, the mentioned that was want but Was think things storm that logistics, of was there that And but that? may like quarter. that you -- of anything think supply, don't are that a is going in the we -- flip a the not in in there storm from your minimize get Just on something there that forward, Is impacted, not nature, to sounds base is elevation higher. kind be it other have terms trying it? impacted extraordinary something

Patrick Bowe

That's a fair clarification.

which so Louisiana, assets of the note, Northeast and the at any hurricanes, the are the severe northern the of so Gulf. export to our part we're weather. important it's from damage to talking We're shippers rail domestic I'm think about not industry and Unfortunately, dodge horrible damage I feel about. storms suffered assets able in of similar domestic in not state. are from any assets in These we elevators. some storage some our colleagues

were was probably the we normally So those to this year. premiums, inverse able be, because early so capture higher than steep

off right we're I happen able in And time. will take corn that, of we come so to advantage So place, the really country, that will results right the year? to Louisiana. That's again time good next harvested in first tell. had guess, and

us. just Louisiana up year we'll So -- good knock in very a for

Kenneth Zaslow

your Can When you you where in the all you about capacity? how -- of think that And to where next is these think of that of go talk allocation, growth year quarter, there a come crushers that bolt-on, on do -- focus is next but listed and talk the about any things. like How year much feed list sort when important you could thing high-protein capital bring risk on is as if that in you're the on think you that be? you algorithm? strategy. your and you the didn't it big not you after, One going say about lot to

Patrick Bowe

was good And if a that didn't clarification, It's Ken. mistake. I Yes. that, mention a

So high-protein we at pursue still feed ethanol to plants. continue our strategy

on and projects it in very higher installed have we're our products We additional western at feed eastern working plants. our and doing Iowa, Kansas in and plants to value do well

CI and part our see reducing as optimization lowering crush that a of also well. we the forward going So margin energy and score being years overall in

So in DDGs. that We're very value-add logical years not X still at away in fashion. to pecking Like part is ethanol doing optimization a we're in projects friendly our quarter. those assets of ahead. all a I said, of big the We're to it

one the you I think Ken, of short challenge as is term, mentioned.

values So the some increase for relative protein the country complex as will products meal and crushing corn. oil feed keep across on pressure may to

a net of be for to of term. ethanol could long lots makes that bit protein improving plants, in overall overall, little returns a cost sense But complex we on general. corn So cap feel the

Kenneth Zaslow

you've And so my trading. added okay, final question the Swiss is,

probably well like you new businesses. is of couple a other as I it Can and a year, question. take for how some frame -- hard a as you businesses just added low think it trading and other

parlay right, question, I we this it's and together And expect. been hard that. is would much to that what it in know that spend And but of profits different either For it locations, you've with think added some incremental put last trading to helpful. can year, you're the going different things products again, think see, sort you you've I future? XXXX? but has so to trying the in do and we think much much and add kind that more will we way then XXXX of a return much to that you've how into this the importantly, kind the any about this of do And Just be stuff of done, that added? there a were capital, how is all associated in framework operations that, like

Patrick Bowe

Lansing in that little and past, in biggest our paid that for term. And and back this I'd bit, of the huge even history, our harder to let's go that's really XXXX country's maybe a say the portfolio. really Ken, was acquisition short broadened us dividends back the But to define

the and of integration able where we're and going with to those broaden talent really we're And being so lines. that product happy results about the

leading supply these to with Capstone in of to about The opening our extending mostly Texas what's our is some Geneva take office markets. of Southwest ingredients Africa. adding opportunities feed that's us to like So we're that to the us chain, and

XX%, So say a year, up quarter. and current Not maybe year, those to XX%. going this this well. say probably are big But next businesses I'd contribution I'd

Brian Valentine

million to 'XX kind I $XX incremental on EBITDA say Ken, probably range a those an for million basis. would reasonable for $XX of is of

Patrick Bowe

you're think because we projects some ideas I completed like And the deals. do continue that. be kind in that's 'XX, bigger question supply growth what able to add new And is of in 'XX, capital it's Ken, out we'd asking, down are not the of those those harder numbers project to pipeline our broaden we we to discussions But have road. the are more you previous that to products. to about do that's where with had 'XX, and chains when And talked

Kenneth Zaslow

time me think Let interesting. actually it's because one it just I more phrase

in capital capital constrained you probably wherever you $XX about could, million So able to you're where only in got a put $XX environment, to million.

have keep at Is should to it? way that same and not that million greater your going that down should release million of the forward, than a don't you you $XX fair you and will to the capital way you discipline go While strategy, the deploy, poorly anything looking capital $XX capital opportunity to more actually because assuming have side. more do be

Patrick Bowe

provide making point. plans fair dry sale and improve our our and we for create with our we of assets the reviewed Rail sheet the returns, we business. of balance was very part growth think to a that Ken, were It's to I Rail higher those decision mentioned the Board behind capital strategy And Absolutely. the with can that

plan in segments. to something $XX like to one type It's the did super of million our with is grow So midsized to acquisition to range. $XXX acquisitions those Lansing. million likely probably not large kind be more continue so of in we early, They're

-- think for to are opportunities excited segments we to at be high but we're too our don't pay attractive many So with. super-hot market, opportunities. of the can quite We look that want in grow we that those those


comes Stephens. from Ben question line the next with Bienvenu Our of

Benjamin Bienvenu

Do opportunity? there's year. And But you'll I earning? or there. think the want relative in think question this to of over -- Do terms everything capital long-term the to had year as takes also little think you follow-up net quarter. do a similar continued to to you get relates you maybe you're to and delivering ask out of a a to Obviously, and puts are a earnings bit, of maybe where continuing meaningfully you kind of of is you've your number third Ken goal it EBITDA, you've that laid this higher invest potential?

sense And is. so get just trying the of to a I'm of where kind equilibrium

Patrick Bowe

think now very our to to truck a navigate the Ben, shortage overall it's activities navigate a that especially to from been and challenges. did very back. with, It's dealing the transportation hard manufacturing that's We've right with look fair to labor container say, the challenges. think in able good drivers is markets shortages a I'd comment, I and love inverse There's think, team to I in the lot everyone through I interesting and job, here of economy of all that. grain the and obstacles,

us for do better. opportunities even there's to think I

any businesses hits across big in done the negative of any haven't losses. product lines. our had to or any well board all our of important We We've

I there's XXXX historical back to like potential they do even Margins aren't were period. at through XXXX highs, better. think the in

some well we at but especially you trade highs, all-time group. trading can't say year, in So we're this our done

has fertilizer our business think upside. I more potential

opportunities in continue in related to to sustainability. their a as to incentives to have for farmers on And forward nutrients interesting grain crops. work we think lot fertilizer carbon, I and be really there's As of put going we into

food food work well transparent That higher food human ingredients. pet as to as margin consumptive supply in both continue has chain. on We opportunities,

volume even those areas lot better, potential So on can think we growth there's margin of do a and I we and businesses. more that in have

of us. think I front in So best is still the is, answer the

Brian Valentine


kind to Ben, point. and your see Pacific lot trade, offset, when puts those you and with Louisiana some in also think, takes, conditions up Northwest. a in I in mean, Idaho some think, in I opportunities I of the of

same corn think labor nutrients. higher time, ethanol costs about of some costs basis that. higher Pat input at the and in offsets talked plant I the and

none tariffs into So wouldn't have folks in the I back market. predicted think of year, coming wheat on the us whole, think the earlier I

So on some I opportunity puts I takes think the whole, and these there's continued for think from do of And growth here. offset.

Benjamin Bienvenu

expecting be on level great. future this pipeline capex you the a think a CapEx reasonable That's Sticking of million said organic you're to in you about of the I $XX you, topic think bit growth? Brian, as little more of next growth. year. year ahead Should we expect that of thinking and What's investing about? than inorganic both

Brian Valentine

would to is where allocated I perspective I'd estimate growth I million so say would that probably $XXX million would the be it range capital probably I $XXX high-level at frame to is rest the half from it. go and point. say, being of put sort this probably in where would maintenance I of a of would that

Patrick Bowe

And I our CapEx our think times, during that it's a COVID everything, tighter during we belts. tightened and good clarification

in in coming Now front upkeep the busy our we going in shipshape for with But where important we very of have assets. years be to really significant our some assets stressed includes improve And good our very to think capital and that's become also can us they'll some then grain volumes. projects as make to fertilizer plan we more they're spend do as assets we sure on to have and that us. opportunities

Benjamin Bienvenu

these pipeline now That's fully prepared acquisitions the You've makes of Andersons great. and you feel pursue primed a is like of there. Lansing, If few about is bolted-on bandwidth pursue future organizational opportunities? the That to you, sense. think Do opportunities to digested what The the company opportunities? these of you and ahead I go growth growth here

the the -- You've go What growth? bandwidth pursue company business obviously you to of the excess have you. divestiture do bandwidth you pursue to gotten that? is and behind the out Are Rail of

Patrick Bowe

broadened We to merchandising moved acquisition pretty trading development. would bench oil the of that become we really business. participate business into like really I a a renewable how people We've you ago think Lansing. said, in a supply. we on a veg desk in our be have diesel capabilities with, An strong player important year and example

I is that A exciting into apply lot all the think industry the learning about the lots opportunities. applying of in that's everyone part the customers. talent opportunities there's from is to emerging space ability the part way sustainability up to in have resources news we end and The of farmgate, to.

we the do So have need we against I it. these to think to and what now growth talent have we opportunities, new execute capabilities

them. So and opportunities to simple position When about in opportunities front growth of very have get at resources additional within good assets, have we that bring execute probably and on the I our growth think a those is, in strategies. we're answer some to against some we assets time. the into of we But excited the team

Benjamin Bienvenu

and the of rest luck year. the best with Congrats


next question from with comes Seaport Eric Larson of Global. line Our the

Eric Larson

in is question really operations current first specific. My

I going mean, wheat. the can forward. through And have Minneapolis attractive appreciation played of could idea So decent pushed on the to prices in of basis basis, give realized? your what $XX inventories appreciation you have timing appreciation be you've your and I are what exchange. had in And those gains more spring numbers. important, knew got some contribution an basis wheat some of And inventory maybe that us I'm you what some quarter curious third even

Patrick Bowe

point. fair that's Yes,

all to eastern were of are the they Carries wheat about crop, from most overall. were our red soft full You probably spring. and about are wheat. tie XX% talking -- soft red the market wheat remember inventories that in We storage

been enjoy of years. able couple to We good red thing. wheat the a soft So last that's hadn't carry

That's charges buy a than carrying we little return originally more in we some were why was program. seeing to So to had what bit excited our wheat good.

think about question appreciation, storage. market the like Basis into we now. right very specific I our for complex that's So wheat Toledo a putting

think position time. a we about of really be Idaho, we the was A over quality, soft for those was right wheat, quality are in right? about hard will had I Idaho year. a lot wheat it's situation good our of or a think having like to values and lot weak both this talked wheat I going valuable That us. have -- white wheat blending west lot the So value in

old-fashioned So overall. our I I earnings quiet. very gets market, business kind Eric, about storage, think overlooked is kind it's now, from and point, your which upside seems in a back. have interesting in wheat Right to And some on of sometimes which wheat come quality of blending the we think capability is grain

Eric Larson

even Yes. year. wheat talking And you small tight numbers I really had last real this grains shortages carryover. mean, in and west the we're on of

So I suspect for positive that be going will a forward you. that

Patrick Bowe

You grain. mentioned small

participate we in pulses. market oat us, for as the well So as

were crops up the those and in So high in Canada hurt plains.

So well trading and merchandising interesting done it's an small grains. been in we've opportunity,

Eric Larson

Are are to demand enough what just all we of your Pat, oats going thoughts year, out curiosity, on next the for have that?

Patrick Bowe

So tight a be to it'll market. be tight. It's going

our So it's commodity to provide opportunities, tighter merchandising some interesting it's markets going of but one trading year. this

Eric Larson

it. Got


I'm contribution Pat, then forward #X, of is, pretty So of can very what EBITDA. characterize but and if that your far confidence normalized you a your that, on, ethanol. don't moving guidance? is about your I over you the well provided market, in ethanol kind And I EBITDA next what you're would to even curious couple years, specific can guidance some think express average And below related still we know on from

the really ethanol question. tough that's could be normalize years? of couple But an as going what from -- next could what we contribution EBITDA can you expect you a if over forward ethanol market, an what annual -- So the

Patrick Bowe

Well, handful questions you of a of on us. laid couple

The and year beginning. companies grow. look of targets like we months forward complex diesel able for has We very ag at a against things So markets providing I our put renewable and ago few opportunities our EBITDA in are talked to be sustainability, a opportunity I'll big a the entire ago, now change OC to made outlook to confident start difference. of -- our feel the at that impacting the about

and period have years business the we and a business I So think X we than fertilizer did for new X grain ago.

things to the in market with unique market as positioned RINs we farmers, opportunities and our ethanol supply complicated we so the that's end helps understanding think we're fit these I business working And working thing that space opportunities. as a strength, that into landscape And the managing environmental how that have with customers, from with in navigate working growth. is chains, for regulations, well that for it government and new relates coming us works I think

food more So areas world. just we're probably the crops the growth. specialty about for and new as exports pet around for food Domestic but and kind importantly, consumptive of areas, of specialty back human as those food seed grains have products fundamentals, to well excited

organics. do a our is businesses bolt-ons, some that that example of like product A grow. we to things new So have lot through and upside good expansions, can core project lines,

So opportunity organic an is attractive business fertilizer us. for

to gives these So we ideas, able things they're know that me are they're way how confidence do. against crazy it. And out, be that we'll to more execute

Brian question, second add you The anything? to want did

Brian Valentine

strategy corporate through just Eric, review pretty to to a year. -- this that we mentioned went that, Pat detailed add through went we

add really have really a advantages. energy can And are competitive so teams a believe we be and have key able of our and lot where value focus lot we to I on successful of that and areas think

I in that The that overpaying. not make think there they when markets we modeling continue include are we're sure robust, approach you and forward, going going out know. think some M&A. the We're to to be pretty been have do numbers our as some of about our and disciplined

look -- to to we're those And it so certainly be that opportunities. going linear, some won't of continue then but might to

Patrick Bowe

think The for factors pinpoint very on it's I've said, if XX because and the now. understood have at looked ethanol. involved numbers ethanol many forecast it's And you factors. abundant average, I corn exact again, in to I hard It's second for you difficult we been plants around so question, But just to -- as Eric, very underlying years almost today is in crop. an it, ethanol,

general. We high feed value by have corn added values driven supporting have oil good, DDGs in diesel, we very products values renewable and for

global higher the gasoline commodity for prices market which is which a energy ethanol. prices, of supports in have We sectors, good

is clean at energy the carbon that very a new COX and just have about focused reductions. We it Summit, administration on and recently talking

near to can lot very in So that be things there's ethanol a term. of favorable the

being little be the as a this through for we after those think gasoline get to quite opportunities bit I come period. So year demand profitable COVID back to depressed ethanol whole

up favor lot short are the of ethanol things So lining on of there's term. that a

that pike. heard developments and about the aviation down You also fuel recent sustainable about potentially coming

it's term, that negative lot than good. the So probably checks things longer-term challenge. on exciting could of right? there's a shaping near about side. Long-term, the macro on up quite be And question But penetration, more And could support ethanol positive side the term. ethanol near is e-vehicle that's the more

Eric Larson

Yes. No, would I Okay. agree.

your -- Rail now, sale view so balance you program. it's an buyback? bigger execute your right improvement. balance that you you'd With bit lot, have little So growth point require now not a a you're available conservative that and that some opportunities do from But think strategic also cetera. announced an incredible on et a would share you more helped growth right to could $XXX sheet sheet Or both repurchase capital, opportunistic share alternatives your million you of Obviously, simultaneously? maybe is the your

Patrick Bowe

question. Good

that's comes I as keen deploy the excited right we to currently it company, more it's for simple and to think when just growth, grow repurchase, about focus we're our that opportunities share as now. capital really to see


I remarks. to back [Operator now are turn call Instructions]. closing There questions. further for Hoelter no Mike will the

Michael Hoelter

joining Thanks, morning. Sarah. We want all to thank us you this for

results. XX:XX for AM XXXX, Time, at scheduled earnings Our Eastern is we next conference quarter our review February fourth XX, will when Wednesday, call

The and always, speaking you look forward we with again As interest soon. Andersons, for your thank you in to


participation. call. Ladies you concludes Thank conference your this for and gentlemen, today's

You now disconnect. may