Q2 2021 Andersons Inc Earnings Call
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Ladies and gentlemen, thank you for standing by and welcome to the Andersons 2021 second quarter earnings Conference call. At this time, all participants are in a listen only mode.
After the Speakers' presentation there'll be a question and answer session to ask a question at that time. Please press Star then 1 when you touched on the telephone.
Today's conference call is being recorded.
I would now like to hand, the presentation of what your host Mr. Mike Holter, Vice President corporate controller and Investor Relations. Please go ahead Sir.
Thanks, Valerie good morning, everyone and thank you for joining us for the Andersons second quarter 2021 earnings call. We have provided a slide presentation that will enhance today's discussion if you're viewing this presentation via our webcast the slides and commentary will be in sync.
This webcast is being recorded and the recording and the supporting slides will be made available on the investors page of our website at Andersons, Inc. Dot com shortly.
Certain information discussed today constitutes forward looking statements that reflect the company's current views with respect to future events financial performance and industry conditions.
These forward looking statements are subject to various risks and uncertainties actual results could differ materially as a result of many factors, which are described in the company's reports on file with the SEC. We encourage you to review. These factors this presentation and today's prepared remarks contain non-GAAP financial measures.
<unk> of non-GAAP measures to the most directly comparable GAAP financial measure are included within the appendix of this presentation.
On the call with me today are Pat Bowe, President and Chief Executive Officer, and Brian Valentine Executive Vice President and.
Chief Financial Officer after our prepared remarks, we will be happy to take your questions I will now turn the call over to Pat.
Thank you, Mike and good morning, everyone.
Thank you for joining our call. This morning to review our second quarter results.
We're very pleased with our performance as the company recorded its best second quarter since 2014, and each of our 4 business segments recorded improved year over year results.
I'm also particularly pleased to note that our trailing 12 months adjusted EBITDA was greater than $340 million well in excess of the $300 million run rate goal, we established in late 2017.
I'm very proud of our Andersons team and the outstanding results. They achieved through excellent performance in merchandising manufacturing and providing extraordinary service to our customers.
The trade group had another solid quarter executing well and dynamic grain markets. We're tightening grain stocks have provided excellent merchandising and elevation opportunities.
Corn and soybean growing conditions in our key draw areas are outstanding and we anticipate good buying opportunities into harvest.
Winter wheat harvest volume was better than expected in our dry area and we're seeing some carry returned to the corn and wheat markets.
In our ethanol segment.
We recorded 1 of its best quarters ever with income generated from strong co product values and third party trading results.
Fine with the reversal of unrealized mark to market losses, resulting from our hedging programs.
The plant nutrient group also had a strong second quarter its best since 2014 as.
As anticipated margins were up in all product lines and tight supplies and strong demand.
Fertilizer prices remain high and orders for the fall are being placed.
Rail reported slightly improved second quarter results, primarily on opportunistic scrapping.
Out of favor and of economic life railcars for higher than normal scrap prices.
We continue to see benefits from cost reduction efforts that were implemented over the last several years.
Although the strong first half results has led to larger accruals for incentive compensation.
Now I'll turn things over to Brian and when he is finished I'll be back to discuss our outlook for the rest of 2021.
Thanks, Pat and good morning, everyone. We're now turning to our second quarter results on slide number 5.
In the second quarter of 2021, the company reported net income attributable to the Andersons of $43.5 million or $1.30 per diluted share.
And adjusted net income of $43.7 million or $1.31 per diluted share on.
On revenues of $3.3 billion.
This compares to net income attributable to the company of $34 million or <unk> 92 per diluted share.
And adjusted net income of $29.3 million or <unk> 88 per diluted share.
Revenues of $1.9 billion.
In the second quarter of 2020.
Operating general and administrative expenses increased $19.8 million or 22% year over year with approximately 80% of the increase relating to variable incentive compensation accruals on the strong performance to date.
Adjusted EBITDA for the second quarter of 2021 was $118 million compared to $70 million in the second quarter of 2020.
Adjusted EBITDA for the quarter was higher for trade ethanol and plant nutrient.
As Pat mentioned, we were excited to report trailing 12 months EBITDA of more than $340 million.
Our effective tax rate varies each quarter based on the amount of income or loss attributable to the noncontrolling interest.
We recorded taxes for the quarter and an effective rate of 18, 7% and are currently forecasting a full year effective tax rate of 25%.
Next we'll move to slide 6 to discuss cash liquidity and debt.
We generated strong cash flow from operations before changes in working capital of $93.1 million during the quarter up significantly from $61.8 million in the second quarter of 2020.
Our year to date cash flows has nearly equaled our full year 2020 levels.
Higher future higher futures prices in the grain markets are the primary cause of our increase in working capital this year.
The outstanding balance at June 30 of $757 million is supported by readily marketable inventories of $612 million.
And $220 million in cash margin deposits.
Typically our highest borrowings occur in the spring as a result of our seasonal businesses.
And we've seen a reduction in our short term borrowings compared to March 31, as inventories have been reduced.
We continue to take a disciplined approach to capital spending, which we expect to be about $100 million for the full year.
We have reduced long term debt by almost $70 million since yearend.
Long term debt reduction remains a priority.
And we expect to make long term debt repayments of approximately $100 million for the full year of 2021.
Now, we'll move on to review of each of our 4 businesses beginning with the trade group on slide number 7.
Trade reported adjusted pre tax income of $14.1 million compared to pre tax income of $1.4 million in the same period of 2020.
Merchandising income was strong compared to the second quarter of 2020 due to increased market volatility across our broad portfolio.
Elevation margins from sales of inventory.
Placed and exceeded the storage income we could have earned in the quarter as markets, we're paying for grain to move to consumers and not to be held in storage.
Trades adjusted EBITDA for the quarter was $32.7 million nearly double the adjusted EBITDA of $17.5 million in the second quarter of 2020.
Moving to slide 8.
<unk> second quarter pretax income attributable to the company of $23.5 million was up dramatically from $900000 in the second quarter of 2020.
Co product values, including high protein feed distillers, corn oil and Ddg's, where again, a significant contributor to ethanol margins.
This was driven by a significant increase in the market values of these products.
Board crush margins were positive during the quarter as driving demand rebounded from a year ago.
Third party ethanol and our renewable diesel fats and oils trading results were also higher year over year.
Last our net unrealized mark to market gain of $13.5 million.
Was $4.8 million higher than the gain that we recorded in the second quarter of 2020.
Ethanol recorded EBITDA of $47.2 million in the second quarter of 2021 up.
Up significantly from $10.3 million in.
In the second quarter of last year.
Turning to slide 9.
The plant nutrient business recorded pretax income of $24 million in the second quarter, an improvement of more than $4.5 million compared to second quarter 2020 pretax income of $19.4 million.
Having well positioned inventory in a period of continued strong demand led to healthy margin per ton improvement in our AG supply chain product lines.
Volumes in our turf and specialty business increased approximately 9%.
Each of our product lines again had gross profit improvement in the quarter, although our engineered granules manufacturing lines remained challenged with labor and material cost inflation.
Plant nutrients EBITDA for the quarter was $31.6 million, an increase of $4.4 million from the second quarter of 2020.
Turning to slide 10.
The rail business recorded pre tax earnings of $3.1 million in the second quarter of 2021, compared with pretax earnings of $2.6 million for the same period last year.
The year over year change continues to reflect the opportunistic scrapping of older out of favor railcars at high scrap values.
Combined with good expense management.
As we've discussed before this industry is expected to have a slow recovery.
There are signs of improvement in rail traffic.
Lease renewal rates are still below long term averages.
Rail generated $15.2 million of EBITDA for the quarter, which was in line with the second quarter of 2020.
And with that I'd now like to turn things back to Pat for some thoughts about the remainder of the year.
Thanks, Brian.
We continue to believe that opportunities in our agricultural portfolio will remain strong.
While export demand has seasonally slowed we expect high global demand for U S crops into 2022.
This demand continues to support world grain trade and price is higher than historical averages.
Crops in our dry areas are in great shape, while some other parts of the country are seeing dry conditions.
We are optimistic about an abundant harvests will provide us additional merchandising and elevation opportunities.
Given these conditions, we remain positive in our outlook for our trade segment.
<unk> supplies are projected to be tight beyond this fall's harvest at.
In U S growing conditions are mixed.
So minimal board Kerry has returned to corn and wheat.
And we're able to acquire more of a dry winter wheat harvest than we earlier estimated.
A large 2021 harvest will reduce but not eliminate the impact of strong worldwide demand.
We see good trading opportunities in these volatile markets and remain focused on disciplined risk management.
Gasoline demand is up dramatically from the pandemic slowdown and it's expected to continue.
Tight old crop corn supplies and plant maintenance shutdowns are expected to slow industry production through the third quarter.
The strong demand for co products continues to support our overall margin.
We continue to produce and sell our new high protein feed products from both our coal, which Kansas and our Denison, Iowa plants at good margins.
Our low Ci efficient plants are well positioned to capitalize on higher co product values and improved ethanol margins.
We are awaiting carb approval to begin shipments from our KOL, which Kansas plant to California.
We're hopeful that we will receive it by the end of the third quarter.
We expect our plant nutrient business to continue to perform well.
Without the typical summer price reset and continued tight stocks fall demand looks to be solid.
Demand for our engineered granules and specialty liquids agricultural and industrial products has also been strong we expect that to trend.
And into the next year.
U S rail carloads were up significantly from a year ago, but still lower than 2019 volumes right.
Rates for lease.
<unk> has sequentially increased but are lower than long term lease rates.
We continue to see a slow recovery in this industry.
We have and will continue to opportunistically scrap idle and out of favor railcars when it makes good economic sense to do so.
We're very positive about our position in the AG supply chain and continue to pursue exciting growth opportunities, including those in sustainable AG.
We remain committed to operating safely and efficiently.
Managing risks effectively and adding value for all of our stakeholders.
I'd like to hand, the call back to Valerie and we'll be happy to entertain your questions.
Thank you again, ladies and gentlemen, if you'd like to ask a question. Please press Star then 1 on your Touchtone telephone.
Again to ask a question. Please press Star then 1.
1 moment for our first question.
Our first question comes from Ben <unk> of Stephens.
Steven Your line is open.
Hey, good morning, everybody congrats on the quarter.
Thank you Ben.
I wanted to ask.
You gave some helpful commentary on the trade business moving forward.
Do you expect high prices and continued volatility.
You did note slightly improving carries.
Just curious if you can elaborate on that a little bit as well as if you think about.
It sounds like a pretty good outlook for the back half of 2021, how would you compare that to what we saw in the back half of 2020, just as we think about.
The comparability of the 2 periods.
But lots of good stuff to unfold there so.
We've had really good opportunities for our trade group and our merchandising team has just done an outstanding job capturing both those increased margins for each of our product lines. This is across a wide range of different products across the feed ingredient space in the U S as well as exports.
We think those margins will remain strong it's very interesting times to trade at an inverted market or a tighter F&B.
A lot of experienced traders, who know how to do just that so I think that creates a good opportunities for us.
We just put behind us the wheat harvest the soft red wheat harvest, we had a little bit more damage than what you would normally see because of late rains, but.
The volume was good and that was good for us and we were able to put some of that into the bids and so some carriers come back to the cash markets.
Soft red wheat.
And a little bit into the nearby corn markets.
Overall, I think the exciting part that we see as crop conditions that are tributary to elevators in our regions, where we have assets are all in really good shape.
As we know from the Plains has been some dryness in the Dakotas, and Minnesota and some other parts of the grain belt that may hold us back from hitting really good production, but.
But in the Indiana, Ohio, Michigan.
Illinois are good spots are really good we are underway in harvest right now in Louisiana and have a good harvest coming off there, which is the first corn kind of coming out this year, which is kind of exciting you.
You made a very good point, then, though I wanted to remind the analysts we had a really good fourth quarter last year. If you recall because of a lack of carry we shipped a extremely high amount of soybeans out in the fourth quarter. It had a really good fourth quarter. So we see we will have a peak we have a good chance of having a very comparable.
Quarter.
Our second half of the year should say second half overall to last year with potential to exceed it if things go our way, but if we had a real strong quarter that match last year, we'd be very happy with that.
Yes understandable, okay, great that's great color.
You talked about getting the carb pathway certified approved.
Approval.
Once you have that pathway.
For California.
How should we think about your ability to ramp up shipments is it just a step function change or does it does it ramp up.
Yes, I'd be curious to hear about that yes, it ramps up because.
If we ship.
Cards ahead of time expect an approval that would be very uneconomic. So we won't take any trains shipped out of Kansas to the West coast until we have approval has taken a little longer than we thought so we're a little disappointed with the process and maybe that's just classic government approval process, but we're behind where we would like to be.
But we're optimistic about having that carb approval and being able to ship as I mentioned in our comments. So we won't ship anything ahead of time.
We will we will ship promptly industrial build will take a little time to build up shipments as we get started.
Okay, Great last 1 from me just on ethanol. So curious to hear your thoughts on kind of the export environment.
Your views there.
As well as just.
Kind of your outlook for SMB I know, we got a little bit better stock number today production. It seems like it had been easing off for the last few weeks.
I know.
Maybe it's.
Maybe to come this commentary is reactive I'd be curious to get kind of your perspective from a proactive view on how you see the market moving forward.
Yes, I think youre right on top of it so stocks were out just before the call started and we're a little bit softer in demand was a little better. So I think we're going to finish up from her summer driving season strongly.
I think a big question, probably would have to be what the implications of.
The Delta Varian and Covid will be towards any restrained returned to work type programs, but in general we've been optimistic about what the gasoline demand looks like exports I'd say, probably we're probably flat back to 19 levels. So that will be steady, but we don't see any big pickups right now that were aware.
<unk>.
Even though that U S ethanol is fairly priced.
So we're kind of excited about what the outlook is for ethanol I think a big challenge maybe for some players in the industry is really just the price and availability of corn, where they're really tight inverse right now and some will be taking their normal seasonal spring shutdowns.
And so we're kind of I think it will remain tight and we think spring shutdowns I'm, sorry fall second round shutdowns, but I think we're going to stay pretty pretty tight SMB through the finish of the year. So we're feeling pretty good about the way things look today and how ethanol is shaping up.
Okay great.
Congrats again and good luck with the back half.
Thank you.
Thank you. Our next question comes from Ken Zaslow of Bank of Montreal. Your line is open.
Hey, good morning, guys.
Hey, good morning, Ken.
Just a couple of questions 1 is.
The crops that are around you guys actually.
Again, as you said coming up better than the rest of the.
Corn crop.
What's the incremental opportunity does that bring to you given that youll have decline it will be tight.
We will create a greener thesis or opportunity by having it in a higher usually not usually a couple of years back it was India.
Now it seems like you guys are getting the benefit so how does that play out over the next.
The crop season, how does that work.
Yes, that's.
Good points and you remember 2019, when the eastern belt was extremely wet and how that really kind of hurt us with a total production. The big thing is really about total production is having those bushels available.
Mike right now, even though wheat quality probably wasn't as good as we would have liked to seen with some late rains, causing some sprouting wheat production was good. So volume was good and we're seeing that across our scales here. The last few weeks the same can be true for fall harvest.
It looks good across the majority of the Midwest and yields for corn should be strong. So we're feeling just more volume is always good and that made also keep some some pressure on the basis, we like to see those opt.
<unk> opportunities with some parts of the country will not be as good in this we may have some disruption.
We will have different pockets of the country that will be short relative to others. So that creates some good domestic trading opportunities. So I think that will continue and be good for us and.
And good for the industry, it's tough on those parts of the country, where they've been excessively dry and just won't have that same type of production.
Okay, and then on the ethanol side 2 questions here I'll start with 1 and how much how much. It was your yield on corn oil and were you able to I'm assuming generate.
A good percentage of your margin structure from corn oil is that how to think about it if I take corn oil out I'm, assuming your margin would have been vastly different but I'm assuming.
Can you frame that for us.
Yes, so as you see it.
Corn oil has moved from <unk>.
<unk> down <unk> 15 cents per pound up to the $50 to 60 cents per pound. So were squeezing every ounce we can out of out of Cornell.
There are some potential potential for some new technologies, we have not fully deployed a brand new extensive oil extraction technology yet.
But we are using our conventional technologies get as high as yield as possible, which we are achieving and where we've set up a virtual trading desk over a year ago, and so that vigital trading desk handles not only the desio from our plants from other plants as well as training white grease fats and soybean.
<unk> and other products, so we've become a pretty significant supplier for the renewable diesel market and we see that.
Green diesel feedstock to be a big business for us.
While were not core as a crusher of being oil.
Or a processor of beef to produce tallo, we do see ourselves as a merchant fed can originate.
Raw materials and work on supply agreements with several renewable diesel players and we have several of those in place now so the exciting thing for US overall has been the emergence of this new renewable diesel market and where we can fit within that so I think it's broader than just desio, we have to look at the entire.
Our <unk> complex.
And have you thought about participating in the renewable diesel margin with corn oil and share being able to get a share of that.
Sure.
More likely use net sales in the open market, how do you or how do you think that youre going to be able to leverage the opportunity.
Well, that's the exciting part right now there's a lot of discussions going on both on the supply side, where we're working with others, who have the raw materials and we're also working with the.
Renewable diesel producers as well as you know we have a partnership with marathon petroleum in our ethanol space and they are a player in the renewable diesel. So we have a good relationship with them and we've had lots of discussions with others that are now 1 of them are new participants in this industry right. So a lot of this is new to everybody.
All of us in the AG side are very excited about it and it's going to create some partnerships and opportunities with supply agreements or equity participations. So we're kind of in the middle of all that right now with nothing to announce but lots of good discussions going on with people within both industries.
Okay and then my last question is on ethanol outlook.
Some of your peers.
Maybe the next quarter will be soft in the fourth quarter will be better.
Do you guys see anything.
About that and how do you see that playing out and again I would assume into 2022 you think.
The ethanol drag in 2021 will be over and you'll be in a better situation in 2022, just kind of figure out what your thoughts are on ethanol shortened.
And I'll leave it there. Thank you agree agree with those comments I think that the challenge for most players in the industry is just the high corn basis and high corn prices in the third quarter. So third quarter will have lesser margin opportunities in the fourth quarter.
Soybean oil as soybean meal I'm, sorry has come down a little bit. If you wanted to say the feed market values have softened from where they were still don't have international DDG exports. So DDG markets have been a little bit muted. So the margins are not as good as in the third quarter as we think we will see in the fourth quarter.
That remains to be seen but we are optimistic about fourth quarter and into 'twenty..2 so I am not for sure Ken Youre going to ask me about the $300 million EBITDA because.
But have you anymore.
Okay.
Just wanted to get credit for hitting the trailing 12 months $3.44. So were you reminded us of that quite often so I'm excited that we're able to do that.
It should be and I think nothing away from you and anything you've done an excellent job and I would never say that you've been on our calls.
I happen to agree that you have done a great job. Thank.
Thank you.
Thank you.
Next question comes from Eric last net Seaport Research your line is open.
Thank you.
Good morning, everyone.
Eric.
So my first question is as you enter the third quarter, what is your MTM derivative balance.
It's actually Eric it's kind of more or less a wash, it's probably plus or -1% to $2 million of gain sitting on the balance sheet, but it's more or less a wash as we sit today. So to your point about the question you probably asked last time, where at year end a lot of that stuff is.
<unk> had predicted reversed itself.
Good day is about the earthquake.
Because of our.
Our mark to market positions on our on our ethanol crush we had some earlier big losses, we took as hedge losses and where are we.
Got that back in the quarter and in spades.
As Brian mentioned, we don't have much right now now that could however, the quarter ends in the third and fourth those numbers can can shift quite a bit just on the ending markets. Because we have so much volatility, but it's just nice to see that MTM come back to us and have that book. So that's felt really nice.
Yes.
Really was.
Figured that that would probably happen because the grain price volatility.
If you want to call it the grain VIX in the second quarter was probably.
The most volatile grain because I've seen in quite some time, maybe 10 years that was pretty amazing. So I figure that you've probably got the benefit of those.
Our growth Mtm's reversing themselves so.
When you look at.
To the.
Prior question I believe it was Ben.
Talking about the second half.
Clearly understand probably the difficult comp you have been trading.
You did lose a good chunk from money in ethanol in the fourth quarter ethanol isn't a strong fourth quarter, it's more on the kind of the seasonal downswing, but.
You are also going to have probably relatively.
Kate corn supply hit we're going to have a good crop this year, but we will not going to it's not going to be something to that.
Flow to cover off the ball and that's going to encourage a lot of planting next year and farmers should realize a lot in the fall I mean so.
You might be up against some difficult comps in trading and maybe.
But it doesn't seem like it's a stretch for your other your other areas.
That a fair observation.
I think it's really fair and I'll, let Brian chime in here.
I think the.
The number we don't know for sure it will be with ethanol finishes backed we started talked about driving demand and how that looks we're optimistic and feel good about it. So that's a number that could lap it'd be much better than last year trade adjusted as I reminded Ben we had a really good bean.
Elevation period in the fourth quarter last year.
Whether that will repeat itself that kind of remains to be seen but we are going to have a good crop. We are gonna have tight supplies. We do have higher margins. So we feel good about it but let's say, we're going to blow it out of the water and beat last year's by huge number that in grain and trading that would be hard.
Peter and I'm sure you can give me a hard time, Eric because I was probably a little more conservative and you're pushing us on that fertilizer number and we had a really good 1 and fertilizer.
Prices are stable as you said, we didn't get a reset into.
Into the fourth quarter.
Half of the year, so we're pretty feeling good about it and should see good fall applications.
<unk> been wet as you know.
And so there could be some good side dress applications coming on the beams.
In a lot of our dry areas. So we're optimistic about fall pm and <unk>.
Paul ethanol, but.
I just have to execute against it.
Okay, and then just a final comment kind of on the fourth quarter.
We've seen the sharp inverse in the futures curve flatten itself out.
Flattened itself quite a bit faster than I would've thought I guess that might be that maybe talks about how much of the weather premium we had a net market in old crop maybe in.
In May and early June, but I did I really haven't put any.
Storage income into my migraine number for the fourth quarter, because I just didn't think a lot of that would be available.
Should we be a little bit more optimistic on on some storage income for fourth quarter.
Yes, a little bit like I said.
Wheat storage, we are getting a little bit of a carry their grain a little bit cash carry in the nearby but I don't think those are going to be big numbers.
The most important thing will just be to have a big crop and maybe see some reaction with weaker premiums at harvest time and a good trade flow. That's the biggest thing if we get a little bit carry that will just be cherry on the top but I.
We're not counting on that to happen and it's it's likely not going to be big we expect right now.
Okay. So.
My Middle name is Ken So I'm going to ask the next question so what about $300 million of adjusted EBITDA for 'twenty 2.
Better.
For 'twenty 2.
$300 million or better.
Yes, yes.
Gradually we feel I would say we feel we feel good right. We just fit our trailing 12 months of north of $3.40.
As Pat said, we feel good about the back half of this year and hopefully momentum continues with.
Good good demand and good overall fundamentals and hopefully our team continues to execute really well I think the good news.
Eric is the cost savings and productivity initiatives that we put in place. The last 3 years have paid off and that's really making a big difference for us.
And now our focus is really on growth. So we mentioned in our 2 to 3 year outlook that we would have some bolt on either product or technology expansions at our facilities or as well as some M&A.
Working on several things in that area. We're excited about growth in AG, we're particularly excited about just call. It sustainable AG in general a lot of opportunities in carbon and what's happening at the firm level and as well as what's happening with the renewable diesel level. So if you look up and down across the chain we feel.
Very well positioned with our fertilizer business, our grain business and our biofuels business to participate.
And a lot of these renewable AG type opportunities. So this de carbonization of the U S. Economy, I think is really starting to penetrate AG now and there's probably no..1 is well placed to the andersons to capitalize on that so that's what makes us excited about the future.
Got it well. Thank you Pat I will definitely follow up with you about the carb markets on a follow up but the final question I have probably that goes to Brian here.
And you mentioned net Pat and this is clearly obviously in your numbers, but the $40 million I believe its cumulative of about $40 million of cost saves over the last 3 or 4 years and I believe you had said that about.
$25 million was going to be sustainable I might be wrong in those numbers could you quickly and how much of that have you accomplished can you quickly give us an update on.
On what you feel youre to cost sales have come down and European already.
Yes, if we look Eric if we think about total reductions relative to 2019.
Approximately $35 million to $40 million, and probably about $10 million compared to 2020.
As we mentioned a lot of that and what Youre seeing in the P&L is being offset by higher incentive comp accruals. This year, but we feel good about those have been executed and are in place and.
We're making sure that we remain disciplined in our cost management and everything along the way.
Okay. Good thanks, guys and congrats on a great quarter again.
Thank you.
Thank you again, ladies and gentlemen, if you'd like to ask a question. Please press Star then 1 on your Touchtone telephone.
1 moment please.
I'm showing no further questions at this time I'd like to turn the call back over to Mr. Walter for any closing remarks.
Thanks, Valerie we want to thank you all for joining US. This morning, Our next earnings conference call scheduled for Wednesday November 3.2021 at 11, a M. Eastern daylight time, when we will review our third quarter results.
As always thank you for your interest in the Andersons and we look forward to speaking with you again soon.
Ladies and gentlemen, this does conclude today's conference. Thank you all participating you may all disconnect have a great day.
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