07/27/2021 | Press release | Distributed by Public on 07/27/2021 05:04
CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM) today reported financial results for the quarter ended June 30, 2021.
'It was yet another excellent quarter for ADM, as our team delivered record earnings, with strong year-over-year profit growth across all three business units,' said Chairman and CEO Juan Luciano.
'This is a very different ADM than even a few short years ago, and our transformation is far from over. Our productivity efforts are powering our execution, and - combined with our unparalleled global footprint and strong risk management - supported outstanding results in both Ag Services & Oilseeds and Carbohydrate Solutions. And we're driving innovation, which helped support record top-line and bottom-line results in Nutrition; in fact, we are now raising our expectations of full-year profit growth for Nutrition to 20 percent.
'We're excited about our growth trajectory as we continue to expand our participation in large and fast-growing categories, from alternative proteins to renewable green diesel to plant-based biosolutions, with all of our strategic efforts underpinned by our unique opportunity to use ADM's integrated value chain to advance decarbonization of the food and agriculture industries. Given our great start to the year and our expectation of continued momentum in the second half, we are confident in delivering very strong full-year earnings, and we remain well-positioned for robust, sustained growth in the years to come.'
Second Quarter 2021 Highlights
(Amounts in millions except per share amounts) |
2021 |
2020 |
|||||
Earnings per share (as reported) |
$ |
1.26 |
$ |
0.84 |
|||
Adjusted earnings per share1 |
$ |
1.33 |
$ |
0.85 |
|||
Segment operating profit |
$ |
1,145 |
$ |
813 |
|||
Adjusted segment operating profit1 |
$ |
1,160 |
$ |
804 |
|||
Ag Services and Oilseeds |
570 |
413 |
|||||
Carbohydrate Solutions |
383 |
195 |
|||||
Nutrition |
201 |
158 |
|||||
Other Business |
6 |
38 |
1 Non-GAAP financial measures; see pages 5, 10, 11 and 12 for explanations and reconciliations, including after-tax amounts.
Quarterly Results of Operations
Ag Services & Oilseeds delivered operating profits almost 40 percent higher than the previous year's quarter.
Carbohydrate Solutions results were almost double those of the prior-year period.
Nutrition delivered a record Q2, with 15 percent revenue growth and 27 percent higher year-over-year profits.
Other Business results were substantially lower than the prior-year period, driven primarily by captive insurance underwriting losses, most of which were offset by corresponding recoveries in other business segments.
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 $1.1 billion for the quarter includes charges related to asset impairment and restructuring of $37 million ($0.05 per share) and gains on sales of assets of $22 million ($0.03 per share).
In Corporate results, interest expense decreased from the prior year on lower interest rates and the favorable liability management actions taken in the prior year. Unallocated corporate costs were higher year over year due primarily to higher performance-related compensation accruals, higher IT operating and project-related costs, and transfers of costs from business segments into the centralized centers of excellence in supply chain and operations. Other income increased due primarily to a mark-to-market investment gain in the ADM Ventures portfolio. Corporate results also included a non-cash pension settlement charge of $82 million ($0.11 per share) and a gain related to the mark-to-market adjustment on the Wilmar exchangeable bond of $30 million ($0.06 per share).
The effective tax rate for the quarter was approximately 14 percent.
Note: Additional Facts and Explanations
Additional facts and explanations about results and industry environment can be found at the end of the ADM Q2 Earnings Presentation at www.adm.com/webcast.
Conference Call Information
ADM will host a webcast on July 27, 2021, at 8 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
Source: Corporate Release
Segment Operating Profit, Adjusted Segment Operating Profit (a non-GAAP financial measure) and Corporate Results (unaudited) |
|||||||||||||||||||
Quarter ended |
Six months ended |
||||||||||||||||||
June 30 |
June 30 |
||||||||||||||||||
(In millions) |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
|||||||||||||
Segment Operating Profit |
$ |
1,145 |
$ |
813 |
$ |
332 |
$ |
2,250 |
$ |
1,412 |
$ |
838 |
|||||||
Specified items: |
|||||||||||||||||||
(Gains) losses on sales of assets and businesses |
(22) |
(23) |
1 |
(22) |
(23) |
1 |
|||||||||||||
Impairment, restructuring, and settlement charges |
37 |
14 |
23 |
131 |
58 |
73 |
|||||||||||||
Adjusted Segment Operating Profit |
$ |
1,160 |
$ |
804 |
$ |
356 |
$ |
2,359 |
$ |
1,447 |
$ |
912 |
|||||||
Ag Services and Oilseeds |
$ |
570 |
$ |
413 |
$ |
157 |
$ |
1,347 |
$ |
835 |
$ |
512 |
|||||||
Ag Services |
190 |
171 |
19 |
399 |
335 |
64 |
|||||||||||||
Crushing |
150 |
113 |
37 |
532 |
183 |
349 |
|||||||||||||
Refined Products and Other |
130 |
78 |
52 |
231 |
159 |
72 |
|||||||||||||
Wilmar |
100 |
51 |
49 |
185 |
158 |
27 |
|||||||||||||
Carbohydrate Solutions |
$ |
383 |
$ |
195 |
$ |
188 |
$ |
642 |
$ |
263 |
$ |
379 |
|||||||
Starches and Sweeteners |
306 |
177 |
129 |
528 |
276 |
252 |
|||||||||||||
Vantage Corn Processors |
77 |
18 |
59 |
114 |
(13) |
127 |
|||||||||||||
Nutrition |
$ |
201 |
$ |
158 |
$ |
43 |
$ |
355 |
$ |
300 |
$ |
55 |
|||||||
Human Nutrition |
162 |
131 |
31 |
290 |
244 |
46 |
|||||||||||||
Animal Nutrition |
39 |
27 |
12 |
65 |
56 |
9 |
|||||||||||||
Other Business |
$ |
6 |
$ |
38 |
$ |
(32) |
$ |
15 |
$ |
49 |
$ |
(34) |
|||||||
Segment Operating Profit |
$ |
1,145 |
$ |
813 |
$ |
332 |
$ |
2,250 |
$ |
1,412 |
$ |
838 |
|||||||
Corporate Results |
$ |
(320) |
$ |
(261) |
$ |
(59) |
$ |
(601) |
$ |
(485) |
$ |
(116) |
|||||||
Interest expense - net |
(70) |
(86) |
16 |
(134) |
(163) |
29 |
|||||||||||||
Unallocated corporate costs |
(248) |
(194) |
(54) |
(450) |
(383) |
(67) |
|||||||||||||
Other |
49 |
35 |
14 |
59 |
(17) |
76 |
|||||||||||||
Specified items: |
|||||||||||||||||||
LIFO credit (charge) |
- |
- |
- |
- |
91 |
(91) |
|||||||||||||
Gain (loss) on debt extinguishment |
- |
(14) |
14 |
- |
(14) |
14 |
|||||||||||||
Gain on debt conversion option |
30 |
- |
30 |
10 |
- |
10 |
|||||||||||||
Impairment, restructuring, and settlement charges |
(81) |
(2) |
(79) |
(86) |
1 |
(87) |
|||||||||||||
Earnings Before Income Taxes |
$ |
825 |
$ |
552 |
$ |
273 |
$ |
1,649 |
$ |
927 |
$ |
722 |
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 |
Six months ended |
||||||||||||||
June 30 |
June 30 |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
(in millions, except per share amounts) |
|||||||||||||||
Revenues |
$ |
22,926 |
$ |
16,281 |
$ |
41,819 |
$ |
31,251 |
|||||||
Cost of products sold (1) |
21,463 |
15,173 |
38,808 |
29,192 |
|||||||||||
Gross profit |
1,463 |
1,108 |
3,011 |
2,059 |
|||||||||||
Selling, general, and administrative expenses (2) |
739 |
638 |
1,488 |
1,302 |
|||||||||||
Asset impairment, exit, and restructuring costs (3) |
23 |
16 |
82 |
57 |
|||||||||||
Equity in (earnings) losses of unconsolidated affiliates |
(163) |
(103) |
(288) |
(243) |
|||||||||||
Investment income |
(50) |
(26) |
(63) |
(74) |
|||||||||||
Interest expense (4) |
40 |
87 |
127 |
170 |
|||||||||||
Other (income) expense - net (5,6,7) |
49 |
(56) |
16 |
(80) |
|||||||||||
Earnings before income taxes |
825 |
552 |
1,649 |
927 |
|||||||||||
Income tax expense (8) |
113 |
80 |
244 |
64 |
|||||||||||
Net earnings including noncontrolling interests |
712 |
472 |
1,405 |
863 |
|||||||||||
Less: Net earnings (losses) attributable to noncontrolling interests |
- |
3 |
4 |
3 |
|||||||||||
Net earnings attributable to ADM |
$ |
712 |
$ |
469 |
$ |
1,401 |
$ |
860 |
|||||||
Diluted earnings per common share |
$ |
1.26 |
$ |
0.84 |
$ |
2.48 |
$ |
1.53 |
|||||||
Average diluted shares outstanding |
566 |
562 |
565 |
563 |
|||||||||||
(1) Includes a charge related to an inventory writedown of $13 million in the current quarter and YTD, and a credit related to changes in the Company's LIFO reserves of $91 million in the prior YTD. |
(2) Includes a charge related to a legal settlement of $38 million in the current YTD. |
(3) Includes charges related to impairment of certain assets and restructuring of $23 million and $82 million in the current quarter and YTD, respectively, and $16 million and $57 million in the prior quarter and YTD, respectively. |
(4) Includes gains related to the mark-to-market adjustment of the conversion option of the exchangeable bond issued in August 2020 of $30 million and $10 million in the current quarter and YTD, respectively. |
(5) Includes gains related to the sale of certain assets of $22 million in the current quarter and YTD, and $23 million in the prior quarter and YTD. Also includes early debt repayment expenses of $14 million in the prior quarter and YTD. |
(6) Includes exit costs of $2 million in the current YTD. |
(7) Includes a settlement charge related to pension liabilities of $82 million in the current quarter and YTD. |
(8) Includes the tax benefit impact of the above specified items and tax discrete items totaling $(24) million and $(49) million in the current quarter and YTD, respectively, and the tax expense (benefit) impact of the above specified items and certain discrete items totaling $(1) million and $19 million in the prior quarter and YTD, respectively. |
Summary of Financial Condition (unaudited) |
||||||||
June 30, |
June 30, |
|||||||
(in millions) |
||||||||
Net Investment In |
||||||||
Cash and cash equivalents (a) |
$ |
869 |
$ |
1,203 |
||||
Operating working capital (b) |
11,628 |
8,540 |
||||||
Property, plant, and equipment |
9,873 |
9,833 |
||||||
Investments in and advances to affiliates |
5,113 |
5,239 |
||||||
Goodwill and other intangibles |
5,266 |
5,212 |
||||||
Other non-current assets |
2,202 |
2,046 |
||||||
$ |
34,951 |
$ |
32,073 |
|||||
Financed By |
||||||||
Short-term debt (a) |
$ |
1,289 |
$ |
531 |
||||
Long-term debt, including current maturities (a) |
8,432 |
8,642 |
||||||
Deferred liabilities |
3,556 |
3,504 |
||||||
Temporary equity |
71 |
85 |
||||||
Shareholders' equity |
21,603 |
19,311 |
||||||
$ |
34,951 |
$ |
32,073 |
(a) |
Net debt is calculated as short-term debt plus long-term debt (including current maturities) less cash and cash equivalents. |
(b) |
Current assets (excluding cash and cash equivalents) less current liabilities (excluding short-term debt and current maturities of long-term debt). |
Summary of Cash Flows (unaudited) |
||||||||
Six months ended |
||||||||
June 30 |
||||||||
2021 |
2020 |
|||||||
(in millions) |
||||||||
Operating Activities |
||||||||
Net earnings |
$ |
1,405 |
$ |
863 |
||||
Depreciation and amortization |
492 |
489 |
||||||
Asset impairment charges |
54 |
47 |
||||||
(Gains) losses on sales/revaluation of assets |
(79) |
(64) |
||||||
Other - net |
330 |
276 |
||||||
Change in deferred consideration in securitized receivables(a) |
- |
(2,456) |
||||||
Other changes in operating assets and liabilities |
805 |
409 |
||||||
Total Operating Activities |
3,007 |
(436) |
||||||
Investing Activities |
||||||||
Purchases of property, plant and equipment |
(427) |
(360) |
||||||
Net assets of businesses acquired |
(5) |
(3) |
||||||
Proceeds from sale of business/assets |
58 |
91 |
||||||
Investments in retained interest in securitized receivables(a) |
- |
(2,121) |
||||||
Proceeds from retained interest in securitized receivables(a) |
- |
4,577 |
||||||
Marketable securities - net |
1 |
(3) |
||||||
Investments in and advances to affiliates |
(8) |
(5) |
||||||
Other investing activities |
(13) |
(3) |
||||||
Total Investing Activities |
(394) |
2,173 |
||||||
Financing Activities |
||||||||
Long-term debt borrowings |
595 |
1,478 |
||||||
Long-term debt payments |
(2) |
(525) |
||||||
Net borrowings (payments) under lines of credit |
(752) |
(667) |
||||||
Share repurchases |
- |
(112) |
||||||
Cash dividends |
(417) |
(405) |
||||||
Other |
- |
3 |
||||||
Total Financing Activities |
(576) |
(228) |
||||||
Increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents |
2,037 |
1,509 |
||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period |
4,646 |
2,990 |
||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period |
$ |
6,683 |
$ |
4,499 |
(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 |
Six months ended |
||||||||||||||
June 30 |
June 30 |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
(in '000s metric tons) |
|||||||||||||||
Processed volumes (by commodity) |
|||||||||||||||
Oilseeds |
8,778 |
9,103 |
17,738 |
18,266 |
|||||||||||
Corn |
5,042 |
4,099 |
8,692 |
9,633 |
|||||||||||
Total processed volumes |
13,820 |
13,202 |
26,430 |
27,899 |
|||||||||||
Quarter ended |
Six months ended |
||||||||||||||
June 30 |
June 30 |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||
(in millions) |
|||||||||||||||
Revenues |
|||||||||||||||
Ag Services and Oilseeds |
$ |
18,271 |
$ |
12,741 |
$ |
33,278 |
$ |
23,820 |
|||||||
Carbohydrate Solutions |
2,820 |
2,014 |
5,043 |
4,330 |
|||||||||||
Nutrition |
1,733 |
1,437 |
3,296 |
2,908 |
|||||||||||
Other Business |
102 |
89 |
202 |
193 |
|||||||||||
Total revenues |
$ |
22,926 |
$ |
16,281 |
$ |
41,819 |
$ |
31,251 |
Adjusted Earnings Per Share A non-GAAP financial measure (unaudited) |
|||||||||||||||||||||||||
Quarter ended June 30 |
Six months ended June 30 |
||||||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
||||||||||||||||||||||
In millions |
Per share |
In millions |
Per share |
In millions |
Per share |
In millions |
Per share |
||||||||||||||||||
Net earnings and fully diluted EPS |
$ |
712 |
$ |
1.26 |
$ |
469 |
$ |
0.84 |
$ |
1,401 |
$ |
2.48 |
$ |
860 |
$ |
1.53 |
|||||||||
Adjustments: |
|||||||||||||||||||||||||
LIFO charge (credit) (a) |
- |
- |
- |
- |
- |
- |
(69) |
(0.12) |
|||||||||||||||||
Losses (gains) on sales of assets and businesses (b) |
(17) |
(0.03) |
(18) |
(0.03) |
(17) |
(0.03) |
(18) |
(0.03) |
|||||||||||||||||
Impairment, restructuring, and settlement charges (c) |
90 |
0.16 |
12 |
0.02 |
164 |
0.29 |
44 |
0.08 |
|||||||||||||||||
Loss (gain) on debt extinguishment (d) |
- |
- |
11 |
0.02 |
- |
- |
11 |
0.02 |
|||||||||||||||||
Gain on debt conversion option (e) |
(30) |
(0.06) |
- |
- |
(10) |
(0.02) |
- |
- |
|||||||||||||||||
Tax adjustment (f) |
(1) |
- |
1 |
- |
(1) |
- |
8 |
0.01 |
|||||||||||||||||
Sub-total adjustments |
42 |
0.07 |
6 |
0.01 |
136 |
0.24 |
(24) |
(0.04) |
|||||||||||||||||
Adjusted net earnings and adjusted EPS |
$ |
754 |
$ |
1.33 |
$ |
475 |
$ |
0.85 |
$ |
1,537 |
$ |
2.72 |
$ |
836 |
$ |
1.49 |
|||||||||
(a) |
Prior YTD 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. |
(b) |
Current quarter and YTD gain of $22 million pretax ($17 million after tax) related to the sale of certain assets, tax effected using the Company's U.S. income tax rate. Prior quarter and YTD gain of $23 million pretax ($18 million after tax) related to the sale of certain assets, tax effected using the applicable tax rates. |
(c) |
Current quarter and YTD charges of $118 million and $217 million pretax, respectively, ($90 million and $164 million after tax, respectively) related to the impairment of certain assets, restructuring, and legal and pension settlements, tax effected using the applicable tax rates. Prior quarter and YTD charges of $16 million and $57 million pretax, respectively ($12 million and $44 million after tax, respectively), related to the impairment of certain assets and restructuring, tax effected using the applicable tax rates. |
(d) |
Prior quarter and YTD early debt repayment expenses of $14 million pretax ($11 million after tax) related to the make-whole call provisions on a bond, tax effected using the Company's U.S. income tax rate. |
(e) |
Current quarter and YTD gain on debt conversion option of $30 million and $10 million pretax, respectively, ($30 million and $10 million after tax, respectively), related to the mark-to-market adjustment of the conversion option of the exchangeable bonds issued in August 2020, tax effected using the applicable tax rate. |
(f) |
Tax adjustment due to certain discrete items totaling $1 million in the current quarter and YTD and $1 million and $8 million in the prior quarter and YTD, respectively. |
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 |
||||||||||||||||||
Sep. 30, 2020 |
Dec. 31, 2020 |
Mar. 31, 2021 |
June 30, 2021 |
June 30, 2021 |
|||||||||||||||
Net earnings attributable to ADM |
$ |
225 |
$ |
687 |
$ |
689 |
$ |
712 |
$ |
2,313 |
|||||||||
Adjustments: |
|||||||||||||||||||
Interest expense |
100 |
69 |
87 |
40 |
296 |
||||||||||||||
Other adjustments |
355 |
1 |
99 |
95 |
550 |
||||||||||||||
Total adjustments |
455 |
70 |
186 |
135 |
846 |
||||||||||||||
Tax on adjustments |
(120) |
(22) |
(45) |
(32) |
(219) |
||||||||||||||
Net adjustments |
335 |
48 |
141 |
103 |
627 |
||||||||||||||
Total Adjusted ROIC Earnings |
$ |
560 |
$ |
735 |
$ |
830 |
$ |
815 |
$ |
2,940 |
|||||||||
Adjusted Invested Capital (in millions) |
|||||||||||||||||||
Quarter Ended |
Trailing Four |
||||||||||||||||||
Sep. 30, 2020 |
Dec. 31, 2020 |
Mar. 31, 2021 |
June 30, 2021 |
Quarter Average |
|||||||||||||||
Equity (1) |
$ |
19,322 |
$ |
20,000 |
$ |
20,841 |
$ |
21,582 |
$ |
20,436 |
|||||||||
+ Interest-bearing liabilities (2) |
8,141 |
9,937 |
11,208 |
9,729 |
9,754 |
||||||||||||||
Other adjustments |
259 |
(5) |
74 |
72 |
100 |
||||||||||||||
Total Adjusted Invested Capital |
$ |
27,722 |
$ |
29,932 |
$ |
32,123 |
$ |
31,383 |
$ |
30,290 |
|||||||||
Adjusted Return on Invested Capital |
9.7 |
% |
(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 and 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 specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM's returns excluding the impacts of 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 June 30, 2021. |
|||||||||||||||||||
Four Quarters |
|||||||||||||||||||
Quarter Ended |
Ended |
||||||||||||||||||
Sep. 30, 2020 |
Dec. 31, 2020 |
Mar. 31, 2021 |
June 30, 2021 |
June 30, 2021 |
|||||||||||||||
(in millions) |
|||||||||||||||||||
Earnings before income taxes |
$ |
200 |
$ |
756 |
$ |
824 |
$ |
825 |
$ |
2,605 |
|||||||||
Interest expense |
100 |
69 |
87 |
40 |
296 |
||||||||||||||
Depreciation and amortization |
238 |
249 |
249 |
243 |
979 |
||||||||||||||
Losses (gains) on sales of assets and businesses |
(57) |
(10) |
- |
(22) |
(89) |
||||||||||||||
Asset impairment, exit, restructuring, and settlement charges |
8 |
27 |
99 |
118 |
252 |
||||||||||||||
Railroad maintenance expense |
28 |
37 |
- |
3 |
68 |
||||||||||||||
Loss (gain) on debt extinguishment |
396 |
(1) |
- |
- |
395 |
||||||||||||||
Expenses related to acquisitions |
- |
4 |
- |
- |
4 |
||||||||||||||
Adjusted EBITDA |
$ |
913 |
$ |
1,131 |
$ |
1,259 |
$ |
1,207 |
$ |
4,510 |
Four Quarters |
|||||||||||||||||||
Quarter Ended |
Ended |
||||||||||||||||||
Sep. 30, 2020 |
Dec. 31, 2020 |
Mar. 31, 2021 |
June 30, 2021 |
June 30, 2021 |
|||||||||||||||
(in millions) |
|||||||||||||||||||
Ag Services and Oilseeds |
$ |
527 |
$ |
926 |
$ |
871 |
$ |
661 |
$ |
2,985 |
|||||||||
Carbohydrate Solutions |
323 |
284 |
342 |
467 |
1,416 |
||||||||||||||
Nutrition |
201 |
185 |
209 |
253 |
848 |
||||||||||||||
Other Business |
21 |
(14) |
11 |
7 |
25 |
||||||||||||||
Corporate |
(159) |
(250) |
(174) |
(181) |
(764) |
||||||||||||||
Adjusted EBITDA |
$ |
913 |
$ |
1,131 |
$ |
1,259 |
$ |
1,207 |
$ |
4,510 |
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.
View source version on businesswire.com : https://www.businesswire.com/news/home/20210727005560/en/
Media Relations
Jackie Anderson
312-634-8484
Investor Relations
Vikram Luthar
312-634-8119
Source: ADM