Sisecam Resources LP Announces Fourth Quarter and Year Ended 2021 Financial Results
Fourth Quarter and Year Ended 2021 Financial Highlights:
-
Net sales of
increased$156.0 million 50.9% over the prior-year fourth quarter; year-end net sales of increased$540.1 million 37.7% over the prior-year. -
Soda ash volume produced and sold increased
1.6% and25.6% , respectively, over the prior-year fourth quarter; year-end soda ash volume produced and sold increased19.4% and26.6% , respectively, over the prior-year. This increase was primarily attributable to the return of sales volumes to pre-COVID-19 pandemic levels. During the fourth quarter of 2020, the Partnership experienced a slight increase in sales volumes, production and pricing after the significant decline in the first half of the year primarily due to the COVID-19 and its variants (“the COVID-19“) pandemic. Fourth quarter 2020 production included building inventory for our year end exit from ANSAC, for which related international sales were recognized in the following quarter therefore a smaller variance compared to fourth quarter 2021 production versus sales for the same periods. Since the third quarter of 2021, the sales volume level returned to normalized pre-COVID-19 levels. -
Net income of
increased$23.6 million over the prior-year fourth quarter; year-end net income of$10.9 million increased$51.4 million over the prior-year. This increase was primarily attributable to the operating income increase resulting from overall sales and production volume recovery to pre-COVID-19 levels with relatively consistent selling, general and administrative expenses in the quarter ended$24.5 million December 31, 2021 compared to the quarter endedDecember 31, 2020 . -
Adjusted EBITDA of
increased$32.4 million 48.6% over the prior-year fourth quarter; year-end Adjusted EBITDA of increased$88.5 million 43.7% over the prior-year. This increase is primarily attributable to the operating income increase. -
Earnings per unit of
for the quarter increased$0.56 86.7% over the prior-year fourth quarter of ; year- end earnings per unit of$0.30 increased$1.19 105.2% over the prior-year. Net income attributable to the Partnership for the year endedDecember 31, 2021 was up due to significantly lower net income due to the COVID-19 pandemic. -
Net cash provided by operating activities of
increased 1,$25.9 million 026.1% over the prior-year fourth quarter; year-end net cash provided by operating activities of decreased$54.2 million 0.9% over the prior-year. The increase in net cash provided by operating activities in the fourth quarter is primarily due to the significantly better net income in the current fourth quarter than the same period in 2020. The slight decrease in net cash provided by operating activities for 2021 is primarily due to higher accounts receivables offset by improved net income during the year ended atDecember 31, 2021 compared to the same period of 2020 as a result of more direct international customers with longer repayment terms in 2021 compared to ANSAC in 2020. -
Working capital used by operating activities increased
from$28.0 million during the year ended$2.4 million December 31, 2020 to during the year ended$30.4 million December 31, 2021 . The increase was primarily due to higher accounts receivable balance atDecember 31, 2021 as a result of higher net sales for the three months endedDecember 31, 2021 compared to the same period endedDecember 31, 2020 . It is partly offset by the higher balances of accounts payable and accrued expenses as ofDecember 31, 2021 . -
Distributable cash flow of
increased$13.2 million 135.7% over the prior-year fourth quarter; year-end distributable cash flow of increased$29.0 million 70.6% over the prior-year. -
The distribution coverage ratio was 0.99 and N/A for the three months ended
December 31, 2021 and 2020, respectively; and 1.43 and 2.50 for the years endedDecember 31, 2021 and 2020, respectively.
Oğuz Erkan, CEO, commented: “I want to first commend our team for another outstanding year of safe operations. We continued to add to our exemplary safety record in 2021, collecting multiple awards that included IMA-North America’s safest large mine. Moreover, we did a tremendous job navigating COVID-19 in 2021. An unwavering commitment to COVID-19 safety protocols allowed us to avoid operational disruptions and to maintain full production rates, with 2.7 million tons produced in 2021 increasing
“In a year that began with a challenging market backdrop, we are excited to report a strong finish to 2021 and the start of a new strategic partnership. As previously announced, on
“Turning to our financial performance, the theme was steady improvement in 2021. International pricing increases were moderated during the first half of the year due to a slower pace of reopening in many Asian economies that kept inventories elevated. However, in the second half of the year, demand resurgence led to tighter supply, driving substantial improvements in international pricing levels. The impact of this upward trend was especially pronounced in our average pricing for the fourth quarter, achieving a sequential
“The surge in export pricing translated into the best quarterly earnings since 2019. Record volumes of 743 thousand tons sold in Q4 2021 resulted in net sales of
“We are also excited to pass along these profits to our unitholders in the form of a
“We continue to reduce our leverage, which was below 1.5x at year-end, back to pre-pandemic levels as we achieve higher adjusted EBITDA and strong cash flows. We completed the refinancing of our credit facility late last year, in addition to closing a
“Lastly, I’d like to thank our employees for their commitment to our success in 2021 as well as to the ongoing vision for our growth, as we welcome in a new era for
Financial Highlights |
Three Months Ended
|
Year Ended
|
|||||||||||||||
(Dollars in millions, except per unit amounts) |
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
% Change |
||||||
Soda ash volume produced (millions of short tons) |
|
0.697 |
|
|
0.686 |
|
1.6 |
% |
|
|
2.721 |
|
|
2.279 |
|
19.4 |
% |
Soda ash volume sold (millions of short tons) |
|
0.743 |
|
|
0.592 |
|
25.6 |
% |
|
|
2.814 |
|
|
2.222 |
|
26.6 |
% |
Net sales |
$ |
156.0 |
|
$ |
103.4 |
|
50.9 |
% |
|
$ |
540.1 |
|
$ |
392.2 |
|
37.7 |
% |
Net income |
$ |
23.6 |
|
$ |
12.7 |
|
85.8 |
% |
|
$ |
51.4 |
|
$ |
26.9 |
|
91.1 |
% |
Net income attributable to |
$ |
11.7 |
|
$ |
6.0 |
|
95.0 |
% |
|
$ |
24.4 |
|
$ |
11.7 |
|
108.5 |
% |
Earnings per Common Unit |
$ |
0.56 |
|
$ |
0.30 |
|
86.7 |
% |
|
$ |
1.19 |
|
$ |
0.58 |
|
105.2 |
% |
Adjusted EBITDA(1) |
$ |
32.4 |
|
$ |
21.8 |
|
48.6 |
% |
|
$ |
88.5 |
|
$ |
61.6 |
|
43.7 |
% |
Adjusted EBITDA attributable to |
$ |
16.2 |
|
$ |
10.6 |
|
52.8 |
% |
|
$ |
43.9 |
|
$ |
30.1 |
|
45.8 |
% |
Net cash provided by operating activities |
$ |
25.9 |
|
$ |
2.3 |
|
1,026.1 |
% |
|
$ |
54.2 |
|
$ |
54.7 |
|
(0.9 |
)% |
Distributable cash flow attributable to |
$ |
13.2 |
|
$ |
5.6 |
|
135.7 |
% |
|
$ |
29.0 |
|
$ |
17.0 |
|
70.6 |
% |
Distribution coverage ratio (1) |
|
0.99 |
|
|
N/A |
|
N/A |
|
|
|
1.43 |
|
|
2.50 |
|
(42.8 |
) % |
(1) See non-GAAP reconciliations |
Three Months Ended
The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.
|
|
Three Months Ended
|
|
Percent
|
||||||
Net sales (Dollars in millions): |
|
2021 |
|
2020 |
|
|||||
Domestic |
|
$ |
68.9 |
|
|
$ |
55.7 |
|
|
|
International |
|
|
87.1 |
|
|
|
47.7 |
|
|
|
Total net sales |
|
$ |
156.0 |
|
|
$ |
103.4 |
|
|
|
Sales volumes (thousands of short tons): |
|
|
|
|
|
|
||||
Domestic |
|
|
319.0 |
|
|
|
264.7 |
|
|
|
International |
|
|
423.9 |
|
|
|
326.8 |
|
|
|
Total soda ash volume sold |
|
|
742.9 |
|
|
|
591.5 |
|
|
|
Average sales price (per short ton): |
|
|
|
|
|
|
||||
Domestic |
|
$ |
215.99 |
|
|
$ |
210.43 |
|
|
|
International |
|
$ |
205.47 |
|
|
$ |
145.96 |
|
|
|
Average |
|
$ |
209.99 |
|
|
$ |
174.81 |
|
|
|
Percent of net sales: |
|
|
|
|
|
|
||||
Domestic sales |
|
|
44.2 |
% |
|
|
53.9 |
% |
|
(18.0)% |
International sales |
|
|
55.8 |
% |
|
|
46.1 |
% |
|
|
Total percent of net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
Percent of soda ash volume sold: |
|
|
|
|
|
|
||||
Domestic volume |
|
|
42.9 |
% |
|
|
44.8 |
% |
|
(4.2)% |
International volume |
|
|
57.1 |
% |
|
|
55.2 |
% |
|
|
Total percent of soda ash volume sold |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
Consolidated Results
Net sales. Net sales increased by
Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense and freight costs, increased to
Net income. As a result of the foregoing, net income increased by
Year Ended
The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.
|
|
Year Ended
|
|
Percent Increase/(Decrease) |
||||||
Net sales (Dollars in millions, except average sales price): |
|
2021 |
|
2020 |
|
|||||
Domestic |
|
$ |
276.8 |
|
|
$ |
208.8 |
|
|
|
International |
|
|
263.3 |
|
|
|
183.4 |
|
|
|
Total net sales |
|
$ |
540.1 |
|
|
$ |
392.2 |
|
|
|
Sales volumes (thousands of short tons): |
|
|
|
|
|
|
||||
Domestic |
|
|
1,300.6 |
|
|
|
940.9 |
|
|
|
International |
|
|
1,512.9 |
|
|
|
1,281.0 |
|
|
|
Total soda ash volume sold |
|
|
2,813.5 |
|
|
|
2,221.9 |
|
|
|
Average sales price (per short ton): |
|
|
|
|
|
|
||||
Domestic |
|
$ |
212.82 |
|
|
$ |
221.92 |
|
|
(4.1)% |
International |
|
$ |
174.04 |
|
|
$ |
143.17 |
|
|
|
Average |
|
$ |
191.97 |
|
|
$ |
176.52 |
|
|
|
Percent of net sales: |
|
|
|
|
|
|
||||
Domestic sales |
|
|
51.2 |
% |
|
|
53.2 |
% |
|
(3.8)% |
International sales |
|
|
48.8 |
% |
|
|
46.8 |
% |
|
|
Total percent of net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
Percent of soda ash volume sold: |
|
|
|
|
|
|
||||
Domestic volume |
|
|
46.2 |
% |
|
|
42.3 |
% |
|
|
International volume |
|
|
53.8 |
% |
|
|
57.7 |
% |
|
(6.8)% |
Total percent of soda ash volume sold |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
Consolidated Results
Net sales. Net sales increased by
Cost of products sold. Cost of products sold, including depreciation, depletion and amortization expense and freight costs, increased by
Selling, general and administrative expenses. Our selling, general and administrative expenses increased
Operating income. Operating income increased by
Net income. As a result of the foregoing, net income increased by
CAPEX AND
The following table summarizes our capital expenditures, on an accrual basis, ore grade and ore to ash ratio:
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
(Dollars in millions) |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Capital Expenditures |
|
|
|
|
|
|
|
||||||||
Maintenance |
$ |
6.2 |
|
|
$ |
6.2 |
|
|
$ |
27.0 |
|
|
$ |
22.9 |
|
Expansion |
|
0.2 |
|
|
|
0.2 |
|
|
|
0.8 |
|
|
|
14.5 |
|
Total |
$ |
6.4 |
|
|
$ |
6.4 |
|
|
$ |
27.8 |
|
|
$ |
37.4 |
|
Operating and Other Data: |
|
|
|
|
|
|
|
||||||||
Ore grade(1) |
|
86.5 |
% |
|
|
85.7 |
% |
|
|
86.3 |
% |
|
|
86.6 |
% |
Ore to ash ratio(2) |
1.54: 1.0 |
|
1.56: 1.0 |
|
1.56: 1.0 |
|
1.60: 1.0 |
(1) |
Ore grade is the percentage of raw trona ore that is recoverable as soda ash free of impurities. A higher ore grade will produce more soda ash than a lower ore grade. |
|
(2) |
Ore to ash ratio expresses the number of short tons of trona ore needed to produce one short ton of soda ash and includes our deca rehydration recovery process. In general, a lower ore to ash ratio results in lower costs and improved efficiency. |
During the year ended
FINANCIAL POSITION AND LIQUIDITY
As of
CASH FLOWS AND QUARTERLY CASH DISTRIBUTION
Cash Flows
Operating Activities
Cash provided by operating activities decreased to
-
an increase of
91.1% of net income of during the year ended$51.4 million December 31, 2021 , compared to during the year ended$26.9 million December 31, 2020 , and -
an increase of
in working capital used by operating activities from$28.0 million during the year ended$2.4 million December 31, 2020 to year ended$30.4 million December 31, 2021 . The increase was primarily due to higher accounts receivable balance atDecember 31, 2021 as a result of higher net sales for the three months endedDecember 31, 2021 compared to the same period endedDecember 31, 2020 . It is partly offset by the higher balances of accounts payable and accrued expenses as ofDecember 31, 2021 .
Investing Activities
We used cash flows of
Financing Activities
Cash used in financing activities was
Quarterly Distribution
On
Change in Control Transaction
On
In connection with the CoC Transaction, management is evaluating whether and when to pursue a potential new
COVID-19
COVID-19, including the Omicron variant, continues to cause certain disruptions to the economy throughout the world, including
Our Response to COVID-19
We continue to closely monitor the impact of the COVID-19 pandemic and all governmental actions in response thereto on all aspects of our business, including how it impacts our customers, employees, supply chain, distribution network, and cash flows. As COVID-19 vaccines become broadly available, we have encouraged employees to get vaccinated. We continue to use guidance from local health organizations, including the
The Impact of COVID-19
As the impact of COVID-19 evolved, we saw continued recovery in both domestic and international business in 2021. The soda ash volume sold in the first, second, third, and fourth quarters for 2021 increased
For the year ended
ABOUT
NATURE OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Statements other than statements of historical facts included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements include all statements that are not historical facts and in some cases may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “seek,” “anticipate,” “estimate,” “predict,” “forecast,” “project,” “potential,” “continue,” “may,” “will,” “could,” “should” or the negative of these terms or similar expressions. Such statements are based only on the Partnership’s current beliefs, expectations and assumptions regarding the future of the Partnership’s business, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Partnership’s control. The Partnership’s actual results and financial condition may differ materially from those implied or expressed by these forward-looking statements. Consequently, you are cautioned not to place undue reliance on any forward-looking statement because no forward-looking statement can be guaranteed. Factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include: changes in general economic conditions, changes in the Partnership’s relationships with its customers, the domestic and international demand for soda ash and the opportunities for the Partnership to increase its volume sold, the development of glass and glass making product alternatives, changes in soda ash prices, operating hazards, unplanned maintenance outages at the Partnership’s production facility, construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, the effects of government regulation, tax position, and other risks incidental to the mining and processing of trona ore, and shipment of soda ash, the impact of a cybersecurity event, the impact of our exit from ANSAC effective as of
Supplemental Information
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
(In millions, except per unit data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net sales: |
|
|
|
|
|
|
|
||||||||
Sales—affiliates |
$ |
— |
|
|
$ |
47.7 |
|
|
$ |
— |
|
|
$ |
177.9 |
|
Sales—others |
|
156.0 |
|
|
|
55.7 |
|
|
|
540.1 |
|
|
|
214.3 |
|
Net sales |
$ |
156.0 |
|
|
$ |
103.4 |
|
|
$ |
540.1 |
|
|
$ |
392.2 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of products sold (excludes depreciation, depletion and amortization expense set forth separately below) |
|
118.0 |
|
|
|
76.2 |
|
|
|
428.5 |
|
|
|
309.3 |
|
Depreciation, depletion and amortization expense |
|
7.8 |
|
|
|
8.0 |
|
|
|
31.6 |
|
|
|
28.8 |
|
Selling, general and administrative expenses—affiliates |
|
4.2 |
|
|
|
4.5 |
|
|
|
17.2 |
|
|
|
17.5 |
|
Selling, general and administrative expenses—others |
|
1.4 |
|
|
|
0.7 |
|
|
|
6.3 |
|
|
|
4.2 |
|
Total operating costs and expenses |
|
131.4 |
|
|
|
89.4 |
|
|
|
483.6 |
|
|
|
359.8 |
|
Operating income |
|
24.6 |
|
|
|
14.0 |
|
|
|
56.5 |
|
|
|
32.4 |
|
Other income (expenses): |
|
|
|
|
|
|
|
||||||||
Interest income |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Interest expense |
|
(0.9 |
) |
|
|
(1.3 |
) |
|
|
(5.0 |
) |
|
|
(5.3 |
) |
Other, net |
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.3 |
) |
Total other expense, net |
|
(1.0 |
) |
|
|
(1.3 |
) |
|
|
(5.1 |
) |
|
|
(5.5 |
) |
Net income |
$ |
23.6 |
|
|
$ |
12.7 |
|
|
$ |
51.4 |
|
|
$ |
26.9 |
|
Net income attributable to non-controlling interest |
|
11.9 |
|
|
|
6.7 |
|
|
|
27.0 |
|
|
|
15.2 |
|
Net income attributable to |
$ |
11.7 |
|
|
$ |
6.0 |
|
|
$ |
24.4 |
|
|
$ |
11.7 |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Income/(loss) on derivative financial instruments |
|
(9.3 |
) |
|
|
0.3 |
|
|
|
5.9 |
|
|
|
5.9 |
|
Comprehensive income |
|
14.3 |
|
|
|
13.0 |
|
|
|
57.3 |
|
|
|
32.8 |
|
Comprehensive income attributable to non-controlling interest |
|
7.4 |
|
|
|
6.9 |
|
|
|
29.9 |
|
|
|
18.1 |
|
Comprehensive income attributable to |
$ |
6.9 |
|
|
$ |
6.1 |
|
|
$ |
27.4 |
|
|
$ |
14.7 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit: |
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit (basic) |
$ |
0.56 |
|
|
$ |
0.30 |
|
|
$ |
1.19 |
|
|
$ |
0.58 |
|
Net income per limited partner unit (diluted) |
$ |
0.56 |
|
|
$ |
0.30 |
|
|
$ |
1.19 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
||||||||
Limited partner units outstanding: |
|
|
|
|
|
|
|
||||||||
Weighted average limited partner units outstanding (basic) |
|
19.8 |
|
|
|
19.7 |
|
|
|
19.8 |
|
|
|
19.7 |
|
Weighted average limited partner units outstanding (diluted) |
|
19.8 |
|
|
|
19.8 |
|
|
|
19.8 |
|
|
|
19.8 |
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited) |
|||||
|
As of |
||||
(In millions) |
|
|
|
||
|
|
|
|
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
2.7 |
|
$ |
0.5 |
Accounts receivable—affiliates |
|
49.3 |
|
|
86.5 |
Accounts receivable, net |
|
116.9 |
|
|
40.6 |
Inventory |
|
30.1 |
|
|
33.5 |
Other current assets |
|
9.0 |
|
|
4.1 |
Total current assets |
|
208.0 |
|
|
165.2 |
Property, plant and equipment, net |
|
304.2 |
|
|
307.4 |
Other non-current assets |
|
31.1 |
|
|
25.4 |
Total assets |
$ |
543.3 |
|
$ |
498.0 |
LIABILITIES AND EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
8.6 |
|
$ |
3.0 |
Accounts payable |
|
21.9 |
|
|
16.4 |
Due to affiliates |
|
2.3 |
|
|
2.9 |
Accrued expenses |
|
41.0 |
|
|
33.6 |
Total current liabilities |
|
73.8 |
|
|
55.9 |
Long-term debt |
|
115.0 |
|
|
128.1 |
Other non-current liabilities |
|
9.8 |
|
|
8.7 |
Total liabilities |
|
198.6 |
|
|
192.7 |
|
|
|
|
||
Equity: |
|
|
|
||
Common unitholders - |
|
187.4 |
|
|
170.0 |
General partner unitholders - |
|
4.6 |
|
|
4.2 |
Accumulated other comprehensive loss |
|
3.0 |
|
|
— |
Partners’ capital attributable to |
|
195.0 |
|
|
174.2 |
Non-controlling interest |
|
149.7 |
|
|
131.1 |
Total equity |
|
344.7 |
|
|
305.3 |
Total liabilities and partners’ equity |
$ |
543.3 |
|
$ |
498.0 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|||||||
|
Year Ended |
||||||
(In millions) |
2021 |
|
2020 |
||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
51.4 |
|
|
$ |
26.9 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization expense |
|
32.2 |
|
|
|
29.2 |
|
Equity-based compensation expense |
|
0.5 |
|
|
|
0.7 |
|
Other non-cash items |
|
0.5 |
|
|
|
0.3 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase)/decrease in: |
|
|
|
||||
Accounts receivable, net |
|
(34.3 |
) |
|
|
(4.6 |
) |
Accounts receivable - affiliates |
|
(4.7 |
) |
|
|
8.5 |
|
Inventory |
|
0.3 |
|
|
|
(9.8 |
) |
Other current and other non-current assets |
|
(1.8 |
) |
|
|
(0.5 |
) |
Increase/(decrease) in: |
|
|
|
||||
Accounts payable |
|
5.0 |
|
|
|
2.2 |
|
Due to affiliates |
|
(0.5 |
) |
|
|
(0.1 |
) |
Accrued expenses and other liabilities |
|
5.6 |
|
|
|
1.9 |
|
Net cash provided by operating activities |
|
54.2 |
|
|
|
54.7 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(25.7 |
) |
|
|
(42.2 |
) |
Insurance proceeds |
|
0.8 |
|
|
|
— |
|
Net cash used in investing activities |
|
(24.9 |
) |
|
|
(42.2 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings on Revolving Credit Facilities |
|
84.5 |
|
|
|
212.5 |
|
Borrowings on Equipment Financing Arrangements |
|
29.0 |
|
|
|
30.0 |
|
Repayments on Revolving Credit Facilities |
|
(118.0 |
) |
|
|
(238.5 |
) |
Repayments on Equipment Financing Arrangements |
|
(3.0 |
) |
|
|
(2.2 |
) |
Debt issuance costs |
|
(1.4 |
) |
|
|
(0.6 |
) |
Common units surrendered for taxes |
|
(0.1 |
) |
|
|
(0.2 |
) |
Distributions to common unitholders |
|
(6.7 |
) |
|
|
(13.4 |
) |
Distributions to general partner |
|
(0.1 |
) |
|
|
(0.3 |
) |
Distributions to non-controlling interest |
|
(11.3 |
) |
|
|
(14.2 |
) |
Net cash used in financing activities |
|
(27.1 |
) |
|
|
(26.9 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
2.2 |
|
|
|
(14.4 |
) |
Cash and cash equivalents at beginning of period |
|
0.5 |
|
|
|
14.9 |
|
Cash and cash equivalents at end of period |
$ |
2.7 |
|
|
$ |
0.5 |
|
Supplemental disclosure of cash flow information: |
|
|
|
||||
Interest paid during the period |
$ |
4.6 |
|
|
$ |
5.1 |
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
||||
Accrued capital expenditures |
$ |
4.1 |
|
|
$ |
2.0 |
|
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles in
- Adjusted EBITDA;
- Distributable cash flow; and
- Distribution coverage ratio.
We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax, depreciation, depletion and amortization, equity-based compensation expense and certain other expenses that are non-cash charges or that we consider not to be indicative of ongoing operations. Distributable cash flow is defined as Adjusted EBITDA less net cash paid for interest, maintenance capital expenditures and income taxes, each as attributable to
Adjusted EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess the Partnership’s operating performance and liquidity. Adjusted EBITDA may provide an operating performance comparison to other publicly traded partnerships in our industry, without regard to historical cost basis or financing methods. Adjusted EBITDA may also be used to assess the Partnership’s liquidity including such things as the ability of our assets to generate sufficient cash flows to make distributions to our unitholders and our ability to incur and service debt and fund capital expenditures.
Distributable cash flow and distribution coverage ratio are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess the Partnership’s liquidity, including:
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders and
- our ability to incur and service debt and fund capital expenditures.
We believe that the presentation of Adjusted EBITDA provides useful information to our investors in assessing our financial conditions, results of operations and liquidity. Distributable cash flow and distribution coverage ratio provide useful information to investors in assessing our liquidity. The GAAP measures most directly comparable to Adjusted EBITDA is net income and net cash provided by operating activities. The GAAP measure most directly comparable to distributable cash flow and distribution coverage ratio is net cash provided by operating activities. Our non-GAAP financial measures of Adjusted EBITDA, distributable cash flow and distribution coverage ratio should not be considered as alternatives to GAAP net income, operating income, net cash provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities. Investors should not consider Adjusted EBITDA, distributable cash flow and distribution coverage ratio in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA, distributable cash flow and distribution coverage ratio may be defined differently by other companies, including those in our industry, our definition of Adjusted EBITDA, distributable cash flow and distribution coverage ratio may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
The table below presents a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and distributable cash flow to the GAAP financial measures of net income and net cash provided by operating activities:
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
(Dollars in millions, except per unit data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Reconciliation of Net income to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
23.6 |
|
|
$ |
12.7 |
|
|
$ |
51.4 |
|
|
$ |
26.9 |
|
Add backs: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization expense |
|
7.8 |
|
|
|
8.0 |
|
|
|
31.6 |
|
|
|
28.8 |
|
Interest expense, net |
|
0.9 |
|
|
|
1.3 |
|
|
|
5.0 |
|
|
|
5.2 |
|
Equity-based compensation expense, net of forfeitures |
|
0.1 |
|
|
|
(0.2 |
) |
|
|
0.5 |
|
|
|
0.7 |
|
Adjusted EBITDA |
$ |
32.4 |
|
|
$ |
21.8 |
|
|
$ |
88.5 |
|
|
$ |
61.6 |
|
Less: Adjusted EBITDA attributable to non-controlling interest |
|
16.2 |
|
|
|
11.2 |
|
|
|
44.6 |
|
|
|
31.5 |
|
Adjusted EBITDA attributable to |
$ |
16.2 |
|
|
$ |
10.6 |
|
|
$ |
43.9 |
|
|
$ |
30.1 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of distributable cash flow to Adjusted EBITDA attributable to |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA attributable to |
$ |
16.2 |
|
|
$ |
10.6 |
|
|
$ |
43.9 |
|
|
$ |
30.1 |
|
Less: Cash interest expense, net attributable to |
|
0.5 |
|
|
|
0.7 |
|
|
|
2.3 |
|
|
|
1.4 |
|
Less: Maintenance capital expenditures attributable to |
|
2.5 |
|
|
|
4.3 |
|
|
|
12.6 |
|
|
|
11.7 |
|
Distributable cash flow attributable to |
$ |
13.2 |
|
|
$ |
5.6 |
|
|
$ |
29.0 |
|
|
$ |
17.0 |
|
|
|
|
|
|
|
|
|
||||||||
Cash distribution declared per unit |
$ |
0.650 |
|
|
$ |
— |
|
|
$ |
0.990 |
|
|
$ |
0.340 |
|
Total distributions to limited partner unitholders and general partner |
$ |
13.4 |
|
|
$ |
— |
|
|
$ |
20.3 |
|
|
$ |
6.8 |
|
Distribution coverage ratio (a) |
|
0.99 |
|
|
|
N/A |
|
|
|
1.43 |
|
|
|
2.50 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net cash from operating activities to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
25.9 |
|
|
$ |
2.3 |
|
|
$ |
54.2 |
|
|
$ |
54.7 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Amortization of long-term loan financing |
|
(0.2 |
) |
|
|
(0.3 |
) |
|
|
(0.6 |
) |
|
|
(0.4 |
) |
Net change in working capital |
|
6.0 |
|
|
|
18.6 |
|
|
|
30.4 |
|
|
|
2.4 |
|
Interest expense, net |
|
0.9 |
|
|
|
1.3 |
|
|
|
5.0 |
|
|
|
5.2 |
|
Other non-cash items |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
(0.3 |
) |
Adjusted EBITDA |
$ |
32.4 |
|
|
$ |
21.8 |
|
|
$ |
88.5 |
|
|
$ |
61.6 |
|
Less: Adjusted EBITDA attributable to non-controlling interest |
|
16.2 |
|
|
|
11.2 |
|
|
|
44.6 |
|
|
|
31.5 |
|
Adjusted EBITDA attributable to |
$ |
16.2 |
|
|
$ |
10.6 |
|
|
$ |
43.9 |
|
|
$ |
30.1 |
|
Less: Cash interest expense, net attributable to |
|
0.5 |
|
|
|
0.7 |
|
|
|
2.3 |
|
|
|
1.4 |
|
Less: Maintenance capital expenditures attributable to |
|
2.5 |
|
|
|
4.3 |
|
|
|
12.6 |
|
|
|
11.7 |
|
Distributable cash flow attributable to |
$ |
13.2 |
|
|
$ |
5.6 |
|
|
$ |
29.0 |
|
|
$ |
17.0 |
|
(a) |
Distribution coverage ratio is calculated as distributable cash flow attributable to |
The following table presents a reconciliation of the non-GAAP financial measures of Adjusted EBITDA to GAAP financial measure of net income for the periods presented:
(Dollars in millions, except per unit data) |
|
Cumulative
|
|
Q4-2021 |
|
Q3-2021 |
|
Q2-2021 |
|
Q1-2021 |
|
Q4-2020 |
|||||||
Reconciliation of Net income to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income |
|
$ |
51.4 |
|
$ |
23.6 |
|
$ |
15.4 |
|
$ |
6.8 |
|
$ |
5.6 |
|
$ |
12.7 |
|
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Depreciation, depletion and amortization expense |
|
|
31.6 |
|
|
7.8 |
|
|
7.4 |
|
|
7.7 |
|
|
8.7 |
|
|
8.0 |
|
Interest expense, net |
|
|
5.0 |
|
|
0.9 |
|
|
1.3 |
|
|
1.5 |
|
|
1.3 |
|
|
1.3 |
|
Equity-based compensation (benefit) expense, net of forfeitures |
|
|
0.5 |
|
|
0.1 |
|
|
— |
|
|
0.3 |
|
|
0.1 |
|
|
(0.2 |
) |
Adjusted EBITDA |
|
|
88.5 |
|
|
32.4 |
|
|
24.1 |
|
|
16.3 |
|
|
15.7 |
|
|
21.8 |
|
Less: Adjusted EBITDA attributable to non-controlling interest |
|
|
44.6 |
|
|
16.2 |
|
|
12.1 |
|
|
8.3 |
|
|
8.0 |
|
|
11.2 |
|
Adjusted EBITDA attributable to |
|
$ |
43.9 |
|
$ |
16.2 |
|
$ |
12.0 |
|
$ |
8.0 |
|
$ |
7.7 |
|
$ |
10.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA attributable to |
|
$ |
43.9 |
|
$ |
16.2 |
|
$ |
12.0 |
|
$ |
8.0 |
|
$ |
7.7 |
|
$ |
10.6 |
|
Less: Cash interest expense, net attributable to |
|
|
2.3 |
|
|
0.5 |
|
|
0.6 |
|
|
0.7 |
|
|
0.5 |
|
|
0.7 |
|
Less: Maintenance capital expenditures attributable to |
|
|
12.6 |
|
|
2.5 |
|
|
3.2 |
|
|
4.4 |
|
|
2.5 |
|
|
4.3 |
|
Distributable cash flow attributable to |
|
$ |
29.0 |
|
$ |
13.2 |
|
$ |
8.2 |
|
$ |
2.9 |
|
$ |
4.7 |
|
$ |
5.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash distribution declared per unit |
|
$ |
0.990 |
|
$ |
0.650 |
|
$ |
0.340 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Total distributions to unitholders and general partner |
|
$ |
20.3 |
|
$ |
13.4 |
|
$ |
6.9 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Distribution coverage ratio |
|
|
1.43 |
|
|
0.99 |
|
|
1.19 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220313005055/en/
Investor Relations
Chief Financial Officer
(770) 375-2321
atohma@ciner.us.com
Source: