ADM Reports First Quarter Earnings of $0.69 per Share, $0.64 per Share on an Adjusted Basis

April 29, 2020

• Net earnings of $391 million

• Strong quarter-end balance sheet with cash and cash equivalents of $4.7 billion

• Playing critical role supporting global food chain and fulfilling customer needs amid pandemic

CHICAGO--(BUSINESS WIRE)--ADM (NYSE: ADM) today reported financial results for the quarter ended March 31, 2020.

“I’m extremely grateful to our 38,000 global colleagues, whose commitment, ingenuity and agility are powering ADM as we support the global food supply chain and provide nutrition around the world,” said Chairman and CEO Juan Luciano. “Our performance is a testament to the resilience of our people, the strength of our business model, and the breadth and depth of our capabilities to fulfill customer needs, even in a market environment that is changing rapidly due to the COVID-19 pandemic.

“Our first priority during this extraordinary time is supporting our colleagues, and we are focused on that every single day. We’ve put into place detailed guidelines and protocols to help protect our teams and support continuity of operations, and I’m proud that we are operating around the globe with very minimal disruptions. We’ve also taken steps to bolster our already strong balance sheet and liquidity position to further enhance our ability to run our business.

“Even amid the challenge of COVID-19, the team is doing a great job advancing our important work to make ADM a better company. From improving underperforming businesses, to driving Readiness, to harvesting our investments — particularly in Nutrition — we remain committed to delivering our strategy and focusing on the business drivers under our control. There are many unknowns, and ADM isn’t immune from some of the negative effects of this pandemic, but we are confident in the ability of our great team to shift to whatever our customers need, and continue to deliver nutrition around the globe.”

 

First Quarter 2020 Highlights

 

(Amounts in millions except per share amounts)

   

2020

 

 

 

2019

Earnings per share (as reported)

   

$

 

0.69

 

 

   

$

 

0.41

 

Adjusted earnings per share1

   

$

 

0.64

 

 

   

$

 

0.46

 

 

   

 

 

   

 

Segment operating profit

   

$

 

599

 

 

   

$

 

611

 

Adjusted segment operating profit1

   

$

 

643

 

 

   

$

 

608

 

Ag Services and Oilseeds

   

422

 

 

   

417

 

Carbohydrate Solutions

   

68

 

 

   

96

 

Nutrition

   

142

 

 

   

81

 

Other Business

   

11

 

 

   

14

 

  • EPS as reported of $0.69 includes a $0.06 per share charge related to asset impairment and restructuring charges, a $0.12 per share credit related to LIFO, and a $0.01 per share tax expense related to certain discrete items. Adjusted EPS, which excludes these items, was $0.64.1

1 Non-GAAP financial measures; see pages 5, 10, 11, 12 and 13 for explanations and reconciliations, including after-tax amounts.

Results of Operations

Ag Services & Oilseeds delivered strong results that were in line with the year-ago period.

  • Ag Services results more than doubled versus the first quarter of 2019, which was negatively impacted by high water conditions in North America. Global trade performance was driven by strong results in destination marketing and structured trade finance. Robust farmer selling in Brazil drove higher year-over-year origination volumes and margins, which were partially offset by weaker results in North America.
  • Crushing results were lower than the prior-year-period. Volumes were strong, and execution margins were solid, though below the high realized margins in the first quarter of 2019, which benefited from the short crop in Argentina. The prior-year quarter also benefited from about $75 million of positive timing impacts.
  • Refined Products and Other results were higher than the first quarter of 2019. Higher margins in both biodiesel and refined oils in North America were offset by lower biodiesel margins in EMEAI. Peanut shelling results were significantly improved versus the prior-year period.
  • Wilmar results were significantly higher year over year.

Carbohydrate Solutions results were lower than the first quarter of 2019.

  • The Starches and Sweeteners subsegment, including wet mill ethanol results, was down year over year, largely due to about $50 million in negative mark to market impacts on forward sales of corn oil, much of which could reverse over the balance of the year. Absent those impacts, results were higher due to better operating performance at the Decatur complex, strong results in wheat milling, and improved conditions in EMEAI.
  • Vantage Corn Processors results were slightly higher than the prior year. Effective risk management, combined with the lack of the severe weather impacts seen in the first quarter of 2019, helped offset weak industry ethanol margins caused by significantly decreased demand.

Nutrition results were once again substantially higher year over year.

  • Human Nutrition businesses, including flavors, specialty ingredients and health & wellness, delivered strong performance and growth across the broad portfolio. Increased sales revenue in North America and EMEAI flavors, continued sales growth in alternative proteins, and additional bioactives income helped drive improved results.
  • Animal Nutrition continued its growth trajectory. Improved year-over-year results were driven by a strong performance from Neovia, good volumes and margins in feed additives, and solid sales in pet care. Amino acids were negatively impacted by a year-over-year decline in the global pricing environment.

Other Business results were down year over year. Futures commission loss provisions were partially offset by improvements in captive insurance operations.

Other Items of Note

As additional information to help clarify underlying business performance, the table on page 10 includes reported earnings and EPS as well as adjusted earnings and EPS.

Segment operating profit of $599 million for the quarter includes charges related to asset impairment and restructuring activities of $44 million ($0.06 per share).

In Corporate results, interest expense was down due to lower average borrowing costs from liability management actions taken in late 2019. Unallocated corporate costs for the quarter were slightly higher year over year principally due to continued investments in IT and business transformation. Other charges increased due to a railroad maintenance expense that had an offsetting benefit in tax expense (see below), partially offset by improved foreign hedging results on intercompany funding.

Corporate results also included a LIFO credit of $91 million ($0.12 per share) due to the discontinuation of LIFO effective January 1, 2020.

The effective tax rate for the quarter was a benefit of approximately 4 percent compared to an expense of 26 percent in the prior year. The favorable 2020 tax rate was due primarily to the impact of U.S. tax credits signed into law in December. In the absence of the railway tax credits and specified items, the effective tax rate for the quarter would have been approximately 14 percent.

Note: Additional Facts and Explanations

Additional facts and explanations about Q1 results and industry environment can be found at the end of the ADM Q1 Earnings Presentation at www.adm.com/webcast.

Conference Call Information

ADM will host a webcast on April 30, 2020, at 10:00 a.m. Central Time to discuss financial results and provide a company update. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.

Forward-Looking Statements

Some of our comments and materials in this presentation constitute forward-looking statements that reflect management’s current views and estimates of future economic circumstances, industry conditions, Company performance and financial results. These statements and materials are based on many assumptions and factors that are subject to risk and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation, and you should carefully review the assumptions and factors in our SEC reports. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements as a result of new information or future events.

About ADM

At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at www.adm.com.

Financial Tables Follow

Segment Operating Profit, Adjusted Segment Operating Profit (a non-GAAP financial measure)

and Corporate Results

(unaudited)

 

 

Quarter ended

 

 

March 31

 

(In millions)

2020

2019

Change

 

 

 

 

Segment Operating Profit

$

599

 

$

611

 

$

(12

)

Specified items:

 

 

 

(Gains) losses on sales of assets and businesses

 

(12

)

12

 

Impairment and restructuring charges

44

 

9

 

35

 

Adjusted Segment Operating Profit

$

643

 

$

608

 

$

35

 

 

 

 

 

Ag Services and Oilseeds

$

422

 

$

417

 

$

5

 

Ag Services

164

 

75

 

89

 

Crushing

70

 

216

 

(146

)

Refined Products and Other

81

 

72

 

9

 

Wilmar

107

 

54

 

53

 

 

 

 

 

Carbohydrate Solutions

$

68

 

$

96

 

$

(28

)

Starches and Sweeteners

99

 

135

 

(36

)

Vantage Corn Processors

(31

)

(39

)

8

 

 

 

 

 

Nutrition

$

142

 

$

81

 

$

61

 

Human Nutrition

113

 

88

 

25

 

Animal Nutrition

29

 

(7

)

36

 

 

 

 

 

Other Business

$

11

 

$

14

 

$

(3

)

 

 

 

 

 

 

 

 

Segment Operating Profit

$

599

 

$

611

 

$

(12

)

 

 

 

 

Corporate Results

$

(224

)

$

(296

)

$

72

 

 

 

 

 

Interest expense - net

(77

)

(90

)

13

 

Unallocated corporate costs

(189

)

(183

)

(6

)

Other charges

(52

)

(6

)

(46

)

Specified items:

 

 

 

LIFO credit (charge)

91

 

(1

)

92

 

Expenses related to acquisitions

 

(14

)

14

 

Impairment, restructuring, and settlement charges

3

 

(2

)

5

 

Earnings Before Income Taxes

$

375

 

$

315

 

$

60

 

Segment operating profit is ADM’s consolidated income from operations before income tax excluding corporate items. Adjusted segment operating profit, a non-GAAP financial measure, is segment operating profit excluding specified items. Management believes that segment operating profit and adjusted segment operating profit are useful measures of ADM’s performance because they provide investors information about ADM’s business unit performance excluding corporate overhead costs as well as specified items. Segment operating profit and adjusted segment operating profit are not measures of consolidated operating results under U.S. GAAP and should not be considered alternatives to income before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under U.S. GAAP.

Consolidated Statements of Earnings

(unaudited)

 

 

Quarter ended

 

March 31

 

2020

 

2019

 

(in millions, except per share amounts)

 

 

 

 

Revenues

$

14,970

 

 

$

15,304

 

Cost of products sold (1)

14,019

 

 

14,376

 

Gross profit

951

 

 

928

 

Selling, general, and administrative expenses (2)

664

 

 

659

 

Asset impairment, exit, and restructuring costs (3)

41

 

 

11

 

Equity in (earnings) losses of unconsolidated affiliates

(140

)

 

(101

)

Interest income

(40

)

 

(49

)

Interest expense

83

 

 

101

 

Other (income) expense - net (4)

(32

)

 

(8

)

Earnings before income taxes

375

 

 

315

 

Income tax (benefit) expense (5)

(16

)

 

81

 

Net earnings including noncontrolling interests

391

 

 

234

 

 

 

 

 

Less: Net earnings (losses) attributable to noncontrolling interests

 

 

1

 

Net earnings attributable to ADM

$

391

 

 

$

233

 

 

 

 

 

Diluted earnings per common share

$

0.69

 

 

$

0.41

 

 

 

 

 

Average diluted shares outstanding

564

 

 

566

 

(1) Includes a charge (credit) related to changes in the Company’s LIFO reserves of $(91) million in the current quarter and $1 million in the prior quarter.

(2) Includes acquisition-related expenses of $14 million in the prior quarter.

(3) Includes net charges related to impairment of certain assets and restructuring of $41 million in the current quarter and $11 million in the prior quarter.

(4) Includes gains of $12 million related to the sale of certain assets and a step-up gain on an equity investment in the prior quarter.

(5) Includes the tax expense impact of the above specified items and tax discrete items totaling $20 million in the current quarter and the tax expense impact of the above specified items, tax discrete items, and true-up adjustments totaling $14 million in the prior quarter.

 

Summary of Financial Condition

(unaudited)

     

 

 

 

March 31,
2020

 

 

March 31,
2019

 

 

 

(in millions)

Net Investment In

 

 

 

 

 

 

Cash and cash equivalents (a)

 

 

$

4,734

 

 

 

$

926

 

Short-term marketable securities (a)

 

 

 

 

 

9

 

Operating working capital (b)

 

 

7,985

 

 

 

8,175

 

Property, plant, and equipment

 

 

9,883

 

 

 

10,299

 

Investments in and advances to affiliates

 

 

5,143

 

 

 

5,332

 

Long-term marketable securities

 

 

2

 

 

 

22

 

Goodwill and other intangibles

 

 

5,194

 

 

 

5,459

 

Other non-current assets

 

 

2,027

 

 

 

1,777

 

 

 

 

$

34,968

 

 

 

$

31,999

 

Financed By

 

 

 

 

 

 

Short-term debt (a)

 

 

$

3,382

 

 

 

$

1,595

 

Long-term debt, including current maturities (a)

 

 

9,121

 

 

 

8,289

 

Deferred liabilities

 

 

3,418

 

 

 

3,156

 

Temporary equity

 

 

71

 

 

 

49

 

Shareholders’ equity

 

 

18,976

 

 

 

18,910

 

 

 

 

$

34,968

 

 

 

$

31,999

 

(a)

Net debt is calculated as short-term debt plus long-term debt, including current maturities less cash and cash equivalents and short-term marketable securities.

(b)

Current assets (excluding cash and cash equivalents and short-term marketable securities) less current liabilities (excluding short-term debt and current maturities of long-term debt).

Summary of Cash Flows

(unaudited)

   

 

 

 

Three months ended

 

 

 

March 31

 

 

 

2020

 

 

2019

 

 

 

(in millions)

Operating Activities

 

 

 

 

 

 

Net earnings

 

 

$

 

391

 

 

 

$

 

234

 

Depreciation and amortization

 

 

245

 

 

 

245

 

Asset impairment charges

 

 

44

 

 

 

9

 

Losses (gains) on sales of assets

 

 

 

 

 

(15

)

Other - net

 

 

159

 

 

 

(7

)

Change in deferred consideration in securitized receivables(a)

 

 

(2,045

)

 

 

(1,778

)

Other changes in operating assets and liabilities

 

 

551

 

 

 

(723

)

Total Operating Activities

 

 

(655

)

 

 

(2,035

)

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(194

)

 

 

(198

)

Net assets of businesses acquired

 

 

(8

)

 

 

(1,876

)

Proceeds from sale of business/assets

 

 

7

 

 

 

18

 

Investments in retained interest in securitized receivables(a)

 

 

(1,271

)

 

 

(1,313

)

Proceeds from retained interest in securitized receivables(a)

 

 

3,316

 

 

 

3,091

 

Marketable securities - net

 

 

5

 

 

 

50

 

Investments in and advances to affiliates

 

 

(3

)

 

 

(9

)

Other investing activities

 

 

1

 

 

 

(34

)

Total Investing Activities

 

 

1,853

 

 

 

(271

)

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

Long-term debt borrowings

 

 

1,481

 

 

 

 

Long-term debt payments

 

 

(1

)

 

 

(4

)

Net borrowings (payments) under lines of credit

 

 

2,188

 

 

 

1,309

 

Share repurchases

 

 

(112

)

 

 

 

Cash dividends

 

 

(203

)

 

 

(198

)

Other

 

 

(11

)

 

 

(42

)

Total Financing Activities

 

 

3,342

 

 

 

1,065

 

 

 

 

 

 

 

 

Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents

 

 

4,540

 

 

 

(1,241

)

Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period

 

 

2,990

 

 

 

3,843

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period

 

 

$

 

7,530

 

 

 

$

 

2,602

 

(a) Cash flows related to the Company’s retained interest in securitized receivables as required by ASU 2016-15 which took effect January 1, 2018.

Segment Operating Analysis

(unaudited)

       

 

 

     

Quarter ended

 

 

     

March 31

 

 

     

2020

 

2019

 

 

     

(in ‘000s metric tons)

Processed volumes (by commodity)

 

     

 

 

 

Oilseeds

 

     

9,163

 

 

9,167

 

Corn

 

     

5,534

 

 

5,132

 

Total processed volumes

 

     

14,697

 

 

14,299

 

 

 

     

 

 

 

 

 

     

 

 

 

 

 

     

Quarter ended

 

 

     

March 31

 

 

     

2020

 

2019

 

 

     

(in millions)

Revenues

 

     

 

 

 

Ag Services and Oilseeds

 

     

$

 

11,079

 

 

$

 

11,538

 

Carbohydrate Solutions

 

     

2,316

 

 

2,403

 

Nutrition

 

     

1,471

 

 

1,282

 

Other Business

 

     

104

 

 

81

 

Total revenues

 

     

$

 

14,970

 

 

$

 

15,304

 

Adjusted Earnings Per Share

A non-GAAP financial measure

(unaudited)

     

 

   

Quarter ended March 31

 

   

2020

 

2019

 

   

In millions

 

Per share

 

In millions

 

Per share

Net earnings and fully diluted EPS

   

$

391

 

 

$

0.69

 

 

$

233

 

 

$

0.41

 

Adjustments:

   

 

 

 

 

 

 

 

LIFO charge (credit) (a)

   

(69

)

 

(0.12

)

 

1

 

 

 

Losses (gains) on sales of assets and businesses (b)

   

 

 

 

 

(9

)

 

(0.02

)

Asset impairment and restructuring charges (c)

   

32

 

 

0.06

 

 

10

 

 

0.02

 

Expenses related to acquisitions (d)

   

 

 

 

 

9

 

 

0.02

 

Tax adjustment (e)

   

7

 

 

0.01

 

 

17

 

 

0.03

 

Sub-total adjustments

   

(30

)

 

(0.05

)

 

28

 

 

0.05

 

Adjusted net earnings and adjusted EPS

   

$

361

 

 

$

0.64

 

 

$

261

 

 

$

0.46

 

 

   

 

 

 

 

 

 

 

(a)

Current quarter changes in the Company’s LIFO reserves of $(91) million pretax ($69 million after tax), tax effected using the Company’s U.S. income tax rate.  Prior quarter changes in the Company’s LIFO reserves of $1 million pretax ($1 million after tax), tax effected using the Company’s U.S. income tax rate.

(b)

Prior quarter gains of $12 million pretax ($9 million after tax) related to the sale of certain assets and a step-up gain on an equity investment, tax effected using the Company’s U.S. income tax rate.

(c)

Current quarter net charges of $41 million pretax ($32 million after tax) related to the impairment of certain assets and restructuring, tax effected using the applicable rates.  Prior quarter charges of $11 million pretax ($10 million after tax) related to the impairment of certain assets and restructuring, tax effected using the applicable tax rates.

(d)

Prior quarter acquisition expenses of $14 million pretax ($9 million after tax) consisted of expenses primarily related to the Neovia acquisition.

(e)

Tax adjustment totaling $7 million in the current quarter due to certain discrete items and $17 million in the prior quarter due to certain discrete items and true-up adjustments.

Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described above. Adjusted EPS reflects ADM’s fully diluted EPS after removal of the effect on EPS as reported of specified items as more fully described above. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS 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 diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item.

Adjusted Return on Invested Capital

A non-GAAP financial measure

(unaudited)

 

Adjusted ROIC Earnings (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Four Quarters

 

 

Quarter Ended

 

Ended

 

 

June 30, 2019

 

Sep. 30, 2019

 

Dec 31, 2019

 

Mar. 31, 2020

 

Mar. 31, 2020

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to ADM

 

$

235

 

 

$

407

 

 

$

504

 

 

$

391

 

 

$

1,537

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Interest expense

 

109

 

 

97

 

 

95

 

 

83

 

 

384

 

LIFO

 

25

 

 

(16

)

 

27

 

 

(91

)

 

(55

)

Other adjustments

 

119

 

 

48

 

 

253

 

 

48

 

 

468

 

Total adjustments

 

253

 

 

129

 

 

375

 

 

40

 

 

797

 

Tax on adjustments

 

(65

)

 

(32

)

 

(8

)

 

(7

)

 

(112

)

Net adjustments

 

188

 

 

97

 

 

367

 

 

33

 

 

685

 

Total Adjusted ROIC Earnings

 

$

423

 

 

$

504

 

 

$

871

 

 

$

424

 

 

$

2,222

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Invested Capital (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Trailing Four

 

 

June 30, 2019

 

Sep. 30, 2019

 

Dec 31, 2019

 

Mar. 31, 2020

 

Quarter Average

 

 

 

 

 

 

 

 

 

 

 

Equity (1)

 

$

18,955

 

 

$

18,873

 

 

$

19,208

 

 

$

18,952

 

 

$

18,997

 

+ Interest-bearing liabilities (2)

 

9,417

 

 

8,891

 

 

8,891

 

 

12,512

 

 

9,928

 

+ LIFO adjustment (net of tax)

 

61

 

 

49

 

 

69

 

 

 

 

45

 

Other adjustments

 

86

 

 

36

 

 

274

 

 

39

 

 

109

 

Total Adjusted Invested Capital

 

$

28,519

 

 

$

27,849

 

 

$

28,442

 

 

$

31,503

 

 

$

29,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Return on Invested Capital

 

 

 

 

 

 

 

7.6

%

(1) Excludes noncontrolling interests
(2) Includes short-term debt, current maturities of long-term debt, finance lease obligations, and long-term debt

Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital. Adjusted ROIC earnings is ADM’s net earnings adjusted for the after tax effects of interest expense, changes in the LIFO reserve and other specified items. Adjusted invested capital is the sum of ADM’s equity (excluding noncontrolling interests) and interest-bearing liabilities adjusted for the after tax effect of the LIFO reserve, and other specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM’s returns excluding the impacts of LIFO inventory reserves and other specified items and increases period-to-period comparability of underlying business performance. Management uses Adjusted ROIC to measure ADM’s performance by comparing Adjusted ROIC to its weighted average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP financial measures and are not intended to replace or be alternatives to GAAP financial measures.

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

A non-GAAP financial measure

(unaudited)

 

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the trailing four quarters ended March 31, 2020.

 

 

 

 

 

 

 

 

 

 

 

Four Quarters

 

 

Quarter Ended

 

Ended

 

 

June 30, 2019

 

Sep. 30, 2019

 

Dec 31, 2019

 

Mar. 31, 2020

 

Mar. 31, 2020

 

 

 

 

 

 

(in millions)

 

 

 

 

Earnings before income taxes

 

$

274

 

 

$

503

 

 

$

496

 

 

$

375

 

 

$

1,648

 

Interest expense

 

109

 

 

97

 

 

95

 

 

83

 

 

384

 

Depreciation and amortization

 

248

 

 

249

 

 

251

 

 

245

 

 

993

 

LIFO charge (credit)

 

25

 

 

(16

)

 

27

 

 

(91

)

 

(55

)

Gains (Losses) on sales of assets and businesses

 

 

 

 

 

101

 

 

 

 

101

 

Asset impairment, restructuring, & settlement charges

 

138

 

 

53

 

 

103

 

 

41

 

 

335

 

Railroad maintenance expense

 

 

 

 

 

51

 

 

73

 

 

124

 

Expenses related to acquisitions

 

 

 

 

 

3

 

 

 

 

3

 

Adjusted EBITDA

 

$

794

 

 

$

886

 

 

$

1,127

 

 

$

726

 

 

$

3,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Four Quarters

 

 

Quarter Ended

 

Ended

 

 

June 30, 2019

 

Sep. 30, 2019

 

Dec 31, 2019

 

Mar. 31, 2020

 

Mar. 31, 2020

 

 

 

 

 

 

(in millions)

 

 

 

 

Ag Services and Oilseeds

 

$

457

 

 

$

511

 

 

$

833

 

 

$

514

 

 

$

2,315

 

Carbohydrate Solutions

 

274

 

 

264

 

 

258

 

 

148

 

 

944

 

Nutrition

 

173

 

 

175

 

 

160

 

 

199

 

 

707

 

Other Business

 

18

 

 

55

 

 

20

 

 

15

 

 

108

 

Corporate

 

(128

)

 

(119

)

 

(144

)

 

(150

)

 

(541

)

Adjusted EBITDA

 

$

794

 

 

$

886

 

 

$

1,127

 

 

$

726

 

 

$

3,533

 

Adjusted EBITDA is defined as earnings before taxes, interest, 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 and depreciation and amortization to earnings before income taxes. Management believes that adjusted EBITDA is a useful measure of the Company’s performance because it provides investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to earnings before income taxes, the most directly comparable GAAP financial measure.

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

A non-GAAP financial measure

(unaudited)

 

The tables below provide a reconciliation of earnings before income taxes to adjusted EBITDA and adjusted EBITDA by segment for the trailing four quarters ended March 31, 2019.

 

 

 

 

 

 

 

 

 

 

Four Quarters

 

Quarter Ended

 

Ended

 

June 30, 2018

 

Sep. 30, 2018

 

Dec 31, 2018

 

Mar. 31, 2019

 

Mar. 31, 2019

 

 

 

 

 

(in millions)

 

 

 

 

Earnings before income taxes

$

652

 

 

$

632

 

 

$

312

 

 

$

315

 

 

$

1,911

 

Interest expense

89

 

 

87

 

 

97

 

 

101

 

 

374

 

Depreciation and amortization

239

 

 

232

 

 

235

 

 

245

 

 

951

 

LIFO charge (credit)

(13

)

 

7

 

 

(4

)

 

1

 

 

(9

)

Gains (Losses) on sales of assets and businesses

 

 

(21

)

 

8

 

 

(12

)

 

(25

)

Asset impairment, restructuring, & settlement charges

24

 

 

2

 

 

250

 

 

11

 

 

287

 

Expenses related to acquisitions

 

 

(4

)

 

12

 

 

14

 

 

22

 

Adjusted EBITDA

$

991

 

 

$

935

 

 

$

910

 

 

$

675

 

 

$

3,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Four Quarters

 

Quarter Ended

 

Ended

 

June 30, 2018

 

Sep. 30, 2018

 

Dec 31, 2018

 

Mar. 31, 2019

 

Mar. 31, 2019

 

 

 

 

 

(in millions)

 

 

 

 

Ag Services and Oilseeds

$

633

 

 

$

580

 

 

$

711

 

 

$

510

 

 

$

2,434

 

Carbohydrate Solutions

333

 

 

364

 

 

281

 

 

178

 

 

1,156

 

Nutrition

151

 

 

103

 

 

99

 

 

134

 

 

487

 

Other Business

39

 

 

37

 

 

(3

)

 

24

 

 

97

 

Corporate

(165

)

 

(149

)

 

(178

)

 

(171

)

 

(663

)

Adjusted EBITDA

$

991

 

 

$

935

 

 

$

910

 

 

$

675

 

 

$

3,511

 

Adjusted EBITDA is defined as earnings before taxes, interest, 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 and depreciation and amortization to earnings before income taxes. Management believes that adjusted EBITDA is a useful measure of the Company’s performance because it provides investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to earnings before income taxes, the most directly comparable GAAP financial measure.

Media Relations
Jackie Anderson
312-634-8484

Investor Relations
Victoria de la Huerga
312-634-8457