SUGAR LAND, Texas, July 28, 2016 /PRNewswire/ -- CVR Partners,
LP (NYSE: UAN), a manufacturer of ammonia and urea ammonium nitrate
(UAN) solution fertilizer products, today announced a second
quarter 2016 net loss of $17.0
million, or 15 cents per fully
diluted common unit, on net sales of $119.8
million, compared to net income of $27.0 million, or 37
cents per fully diluted common unit, on net sales of
$80.8 million for the second quarter
a year earlier. Negatively impacting 2016 second quarter results
were approximately $6.6 million of
expenses associated with a major scheduled plant turnaround at the
East Dubuque fertilizer facility.
Additional items impacting 2016 second quarter results included a
$5.1 million loss on extinguishment
of debt and a net charge of $13.0
million associated with inventory valuation and deferred
revenue purchase price accounting adjustments related to CVR
Partners' acquisition of Rentech Nitrogen Partners, L.P.
Adjusted EBITDA, a non-GAAP financial measure, was $29.1 million for the second quarter of 2016,
compared to adjusted EBITDA of $36.1
million for the second quarter of 2015.
For the first six months of 2016, net income was $1.0 million, or 1
cent per fully diluted common unit, on net sales of
$192.9 million, compared to
$56.8 million of net income, or
78 cents per fully diluted common
unit, on net sales of $173.9 million
for the comparable period a year earlier. Adjusted EBITDA for the
first six months of 2016 was $57.0
million, compared to adjusted EBITDA of $74.5 million for the first six months of
2015.
CVR Partners' results for the three and six months ended
June 30, 2016, include the results of
the East Dubuque fertilizer
facility beginning April 1, 2016.
"CVR Partners' second quarter was highlighted by several key
accomplishments," said Mark Pytosh,
chief executive officer. "On April 1,
we completed the acquisition of Rentech Nitrogen Partners, which
primarily consisted of the East
Dubuque nitrogen production facility. The integration of the
East Dubuque facility with CVR
Partners has been seamless, largely due to diligent and thorough
pre-close planning.
"Our East Dubuque facility completed a full turnaround on time
and within budget during the second quarter. As part of the
turnaround we successfully installed a new ammonia converter, which
has allowed the facility to produce ammonia at rates above 1,000
tons per day — an increase of more than 75 tons per day from prior
levels," Pytosh said.
"During the quarter we also completed a $645 million bond offering, which included a
refinancing of the interim debt facilities utilized to complete the
Rentech Nitrogen acquisition and enabled us to put in place a
long-term capital structure," he continued. "With the acquisition
and refinancing behind us, we are focused on running our business
at the lowest possible cost and maximizing our marketing and
logistics' capabilities within an expanded geographic
footprint."
Consolidated Operations
For the second quarter of 2016, consolidated average realized
gate prices for UAN and ammonia were $199 per ton and $417 per ton, respectively. Average realized gate
prices for UAN and ammonia for the Coffeyville facility were $269 per ton and $546 per ton, respectively, for the same period
in 2015.
CVR Partners' fertilizer facilities produced a combined 171,500
tons of ammonia and purchased an additional 5,000 tons of ammonia
during the second quarter of 2016, of which 45,600 net tons were
available for sale while the rest was upgraded to 296,500 tons of
UAN. In the 2015 second quarter, the Coffeyville facility produced 107,100 tons of
ammonia and purchased an additional 600 tons of ammonia, of which
4,400 net tons were available for sale while the remainder was
upgraded to 253,500 tons of UAN.
Distributions
CVR Partners also announced today a second quarter 2016
distribution of 17 cents per common
unit. The distribution, as set by the board of CVR GP, LLC, the
general partner of CVR Partners, will be paid on Aug. 15, 2016, to unitholders of record on
Aug. 8, 2016.
CVR Partners' second quarter cash distribution brings the
cumulative cash distributions paid or declared for the first six
months of 2016 to 44 cents per common
unit.
CVR Partners is a variable distribution master limited
partnership. As a result, its quarterly distributions, if any, will
vary from quarter to quarter due to several factors, including, but
not limited to, its operating performance, fluctuations in the
prices received for its finished products, maintenance capital
expenditures, and cash reserves deemed necessary or appropriate by
the board of directors of its general partner.
2016 Second Quarter Earnings Conference Call
CVR Partners previously announced that it will host its 2016
second quarter Earnings Conference Call for analysts and investors
on Thursday, July 28, at 11 a.m. Eastern. The Earnings Conference Call may
also include discussion of the Partnership's developments,
forward-looking information and other material information about
business and financial matters.
The Earnings Conference Call will be broadcast live over the
Internet at https://www.webcaster4.com/Webcast/Page/1004/15904. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8029.
For those unable to listen live, the Webcast will be archived
and available for 14 days at
https://www.webcaster4.com/Webcast/Page/1004/15904. A repeat of
the conference call can be accessed by dialing (877) 660-6853,
conference ID 13639903.
This release serves as a qualified notice to nominees and
brokers as provided for under Treasury Regulation Section
1.1446-4(b). Please note that 100 percent of CVR Partners'
distributions to foreign investors are attributable to income that
is effectively connected with a United
States trade or business. Accordingly, CVR Partners'
distributions to foreign investors are subject to federal income
tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can
generally identify forward-looking statements by our use of
forward-looking terminology such as "outlook," "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intend,"
"may," "might," "plan," "potential," "predict," "seek," "should,"
or "will," or the negative thereof or other variations thereon or
comparable terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. For a discussion of risk
factors which may affect our results, please see the risk factors
and other disclosures included in our most recent Annual Report on
Form 10-K, any subsequently filed Quarterly Reports on Form
10-Q and our other SEC filings. These risks may cause our actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
these forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements
included in this press release are made only as of the date hereof.
CVR Partners disclaims any intention or obligation to update
publicly or revise its forward-looking statements, whether as a
result of new information, future events or otherwise, except to
the extent required by law.
About CVR Partners, LP
Headquartered in Sugar Land,
Texas, CVR Partners, LP is a Delaware limited partnership focused on the
production, marketing and distribution of nitrogen fertilizer
products. It primarily produces urea ammonium nitrate (UAN) and
ammonia, which are predominantly used by farmers to improve the
yield and quality of their crops. CVR Partners' Coffeyville, Kansas, nitrogen fertilizer
manufacturing facility includes a 1,300 ton-per-day ammonia unit, a
3,000 ton-per-day UAN unit and a dual-train gasifier complex having
a capacity of 89 million standard cubic feet per day of hydrogen.
CVR Partners' East Dubuque,
Illinois, nitrogen fertilizer manufacturing facility
includes a 1,025 ton-per-day ammonia unit and a 1,100 ton-per-day
UAN unit.
For further information, please contact:
Investor Contact:
Wes Harris
CVR Partners, LP
281-207-3490
InvestorRelations@CVRPartners.com
Media Relations:
Angie
Dasbach
CVR Partners, LP
281-207-3550
MediaRelations@CVRPartners.com
CVR Partners, LP
Financial and Operational Data (all information in this
release is unaudited except the balance sheet data as of
December 31, 2015). On
April 1, 2016, the Partnership
completed the previously announced transactions (the "East Dubuque
Merger"), whereby the Partnership acquired CVR Nitrogen Partners,
LP (formerly known as East Dubuque Nitrogen Partners, L.P. and also
formerly known as Rentech Nitrogen Partners, L.P.), and CVR
Nitrogen GP, LLC (formerly known as East Dubuque Nitrogen GP, LLC
and also formerly known as Rentech Nitrogen GP, LLC). Pursuant to
the East Dubuque Merger, the Partnership acquired a nitrogen
fertilizer manufacturing facility located in East Dubuque, Illinois (the "East Dubuque
Facility"). The consolidated financial statements and key operating
metrics for the three and six months ended June 30, 2016
include the results of the East Dubuque Facility beginning on
April 1, 2016, the date of the
closing of the acquisition.
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Three Months
Ended
June 30,
|
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Six Months
Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
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(in millions,
except unit data)
|
Consolidated
Statements of Operations Data:
|
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|
|
|
|
|
|
|
|
Net sales
(1)
|
|
$
|
119.8
|
|
|
$
|
80.8
|
|
|
$
|
192.9
|
|
|
$
|
173.9
|
|
Cost of product sold
- Affiliates (2)
|
|
0.5
|
|
|
2.2
|
|
|
1.4
|
|
|
4.0
|
|
Cost of product sold
- Third parties (2)
|
|
35.5
|
|
|
13.2
|
|
|
51.0
|
|
|
37.2
|
|
Direct operating
expenses - Affiliates (2)
|
|
1.2
|
|
|
1.2
|
|
|
2.1
|
|
|
2.2
|
|
Direct operating
expenses - Third parties (2)
|
|
53.0
|
|
|
23.9
|
|
|
75.8
|
|
|
47.4
|
|
Selling, general and
administrative expenses - Affiliates (2) (3)
|
|
3.9
|
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|
3.4
|
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|
7.4
|
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|
6.6
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|
Selling, general and
administrative expenses - Third parties (2) (3)
|
|
4.4
|
|
|
1.2
|
|
|
7.3
|
|
|
2.5
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Depreciation and
amortization
|
|
17.6
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|
|
7.0
|
|
|
24.5
|
|
|
13.8
|
|
Operating
income
|
|
3.7
|
|
|
28.7
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|
|
23.4
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|
60.2
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Interest expense and
other financing costs
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|
(15.5)
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|
(1.7)
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|
(17.2)
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|
(3.4)
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Interest
income
|
|
—
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|
|
—
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|
|
—
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|
—
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Loss on
extinguishment of debt
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(5.1)
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|
—
|
|
|
(5.1)
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|
|
—
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|
Other income
(expense), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income (loss) before
income tax expense
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|
(16.9)
|
|
|
27.0
|
|
|
1.1
|
|
|
56.8
|
|
Income tax
expense
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net income
(loss)
|
|
$
|
(17.0)
|
|
|
$
|
27.0
|
|
|
$
|
1.0
|
|
|
$
|
56.8
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common unit - basic
|
|
$
|
(0.15)
|
|
|
$
|
0.37
|
|
|
$
|
0.01
|
|
|
$
|
0.78
|
|
Net income (loss) per
common unit - diluted
|
|
$
|
(0.15)
|
|
|
$
|
0.37
|
|
|
$
|
0.01
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
|
$
|
29.1
|
|
|
$
|
36.1
|
|
|
$
|
57.0
|
|
|
$
|
74.5
|
|
Available cash for
distribution*
|
|
$
|
19.7
|
|
|
$
|
28.4
|
|
|
$
|
50.4
|
|
|
$
|
61.0
|
|
|
|
|
|
|
|
|
|
|
Weighted average,
number of common units outstanding (in thousands):
|
|
|
|
|
|
|
|
|
Basic
|
|
113,283
|
|
|
73,123
|
|
|
93,206
|
|
|
73,123
|
|
Diluted
|
|
113,283
|
|
|
73,131
|
|
|
93,206
|
|
|
73,131
|
|
________________________________
|
* See "Use of
Non-GAAP Financial Measures" below.
|
(1) Below are the
components of net sales:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Reconciliation to net
sales:
|
|
|
|
|
|
|
|
|
Sales net at
gate
|
|
$
|
103.3
|
|
|
$
|
70.5
|
|
|
$
|
168.1
|
|
|
$
|
149.7
|
|
Freight in
revenue
|
|
8.7
|
|
|
7.8
|
|
|
15.6
|
|
|
14.8
|
|
Hydrogen
revenue
|
|
0.5
|
|
|
2.0
|
|
|
1.6
|
|
|
8.5
|
|
Other, including the
impact of purchase accounting
|
|
7.3
|
|
|
0.5
|
|
|
7.6
|
|
|
0.9
|
|
Total net
sales
|
|
$
|
119.8
|
|
|
$
|
80.8
|
|
|
$
|
192.9
|
|
|
$
|
173.9
|
|
|
|
(2)
|
Cost of product sold,
direct operating expenses and selling, general and administrative
expenses are all reflected exclusive of depreciation and
amortization.
|
(3)
|
The Partnership
incurred legal and other professional fees and other merger related
expenses that are referred to herein as expenses associated with
the East Dubuque Merger. The Partnership incurred approximately
$1.2 million and $2.5 million of expenses associated with the East
Dubuque Merger, which are included in selling, general and
administrative expenses for the three and six months ended
June 30, 2016, respectively.
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|
As of
June 30,
2016
|
|
As of
December 31,
2015
|
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|
(audited)
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(in millions)
|
Balance Sheet
Data:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
76.3
|
|
|
$
|
50.0
|
|
Working
capital
|
|
97.8
|
|
|
72.7
|
|
Total
assets
|
|
1,352.6
|
|
|
536.3
|
|
Total debt, including
current portion
|
|
625.3
|
|
|
124.8
|
|
Total partners'
capital
|
|
672.1
|
|
|
385.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
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|
(in millions)
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
$
|
5.5
|
|
|
$
|
30.6
|
|
|
$
|
29.1
|
|
|
$
|
56.0
|
|
Investing
activities
|
|
(74.0)
|
|
|
(3.4)
|
|
|
(75.7)
|
|
|
(6.0)
|
|
Financing
activities
|
|
92.8
|
|
|
(32.9)
|
|
|
72.9
|
|
|
(62.9)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
24.3
|
|
|
$
|
(5.7)
|
|
|
$
|
26.3
|
|
|
$
|
(12.9)
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
for property, plant and equipment:
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures
|
|
$
|
4.1
|
|
|
$
|
2.2
|
|
|
$
|
4.9
|
|
|
$
|
3.6
|
|
Growth capital
expenditures
|
|
6.0
|
|
|
1.2
|
|
|
7.0
|
|
|
2.4
|
|
Total capital
expenditures
|
|
$
|
10.1
|
|
|
$
|
3.4
|
|
|
$
|
11.9
|
|
|
$
|
6.0
|
|
Operating Data
The following tables set forth information about our
consolidated operations and our nitrogen fertilizer manufacturing
facility located in Coffeyville,
Kansas (the "Coffeyville Facility") and the East Dubuque
Facility.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Key Operating
Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated sales
(thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
|
73.6
|
|
|
6.3
|
|
|
98.0
|
|
|
19.1
|
|
UAN
|
|
339.4
|
|
|
249.8
|
|
|
606.4
|
|
|
524.3
|
|
|
|
|
|
|
|
|
|
|
Consolidated product
pricing at gate (dollars per ton) (1):
|
|
|
|
|
|
|
|
|
Ammonia
|
|
$
|
417
|
|
|
$
|
546
|
|
|
$
|
405
|
|
|
$
|
551
|
|
UAN
|
|
$
|
199
|
|
|
$
|
269
|
|
|
$
|
204
|
|
|
$
|
265
|
|
|
|
|
|
|
|
|
|
|
Consolidated
production volume (thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia (gross
produced) (2)
|
|
171.5
|
|
|
107.1
|
|
|
285.1
|
|
|
203.0
|
|
Ammonia (net available
for sale) (2) (3)
|
|
45.6
|
|
|
4.4
|
|
|
60.7
|
|
|
19.1
|
|
UAN
|
|
296.5
|
|
|
253.5
|
|
|
544.7
|
|
|
505.6
|
|
|
|
|
|
|
|
|
|
|
Feedstock:
|
|
|
|
|
|
|
|
|
Petroleum coke used
in production (thousand tons)
|
|
130.6
|
|
|
128.2
|
|
|
257.5
|
|
|
253.1
|
|
Petroleum coke used
in production (dollars per ton)
|
|
$
|
12
|
|
|
$
|
25
|
|
|
$
|
15
|
|
|
$
|
27
|
|
Natural gas used in
production (MMBtu) (4)
|
|
1,396.1
|
|
|
—
|
|
|
1,396.1
|
|
|
—
|
|
Natural gas used in
production (dollars per MMBtu) (4)
|
|
$
|
2.41
|
|
|
$
|
—
|
|
|
$
|
2.41
|
|
|
$
|
—
|
|
Natural gas in cost
of product sold (MMBtu) (4)
|
|
1,063.0
|
|
|
—
|
|
|
1,063.0
|
|
|
—
|
|
Natural gas in cost
of product sold (dollars per MMBtu) (4)
|
|
$
|
2.33
|
|
|
$
|
—
|
|
|
$
|
2.33
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Coffeyville Facility
on-stream factors (5):
|
|
|
|
|
|
|
|
|
Gasification
|
|
98.0
|
%
|
|
100.0
|
%
|
|
97.8
|
%
|
|
99.7
|
%
|
Ammonia
|
|
96.6
|
%
|
|
99.3
|
%
|
|
96.9
|
%
|
|
96.9
|
%
|
UAN
|
|
93.7
|
%
|
|
96.6
|
%
|
|
92.5
|
%
|
|
97.2
|
%
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility
on-stream factors (5):
|
|
|
|
|
|
|
|
|
Ammonia
|
|
68.6
|
%
|
|
—
|
%
|
|
68.6
|
%
|
|
—
|
%
|
UAN
|
|
69.1
|
%
|
|
—
|
%
|
|
69.1
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
Ammonia - Southern
Plains (dollars per ton)
|
|
$
|
419
|
|
|
$
|
546
|
|
|
$
|
397
|
|
|
$
|
550
|
|
Ammonia - Corn belt
(dollars per ton)
|
|
$
|
489
|
|
|
$
|
601
|
|
|
$
|
465
|
|
|
$
|
604
|
|
UAN - Corn belt
(dollars per ton)
|
|
$
|
239
|
|
|
$
|
305
|
|
|
$
|
234
|
|
|
$
|
309
|
|
Natural gas NYMEX
(dollars per MMBtu)
|
|
$
|
2.25
|
|
|
$
|
2.74
|
|
|
$
|
2.12
|
|
|
$
|
2.77
|
|
______________________________
|
|
(1)
|
Product pricing at
gate represents net sales less freight revenue divided by product
sales volume in tons and is shown in order to provide a pricing
measure that is comparable across the fertilizer
industry.
|
|
|
(2)
|
Gross tons produced
for ammonia represent total ammonia produced, including ammonia
produced that was upgraded into other fertilizer products. Net tons
available for sale represent ammonia available for sale that was
not upgraded into other fertilizer products.
|
|
|
(3)
|
In addition to the
produced ammonia, the Partnership acquired approximately 5.0
thousand tons and 0.6 thousand tons of ammonia during the three
months ended June 30, 2016 and 2015, respectively. The
Partnership acquired approximately 8.0 thousand tons and 21.8
thousand tons of ammonia during the six months ended June 30,
2016 and 2015, respectively.
|
|
|
(4)
|
The cost per MMBtu
excludes derivative activity, when applicable. The impact of
natural gas derivative activity during the three and six months
ended June 30, 2016 and 2015 was not material.
|
|
|
(5)
|
On-stream factor is
the total number of hours operated divided by the total number of
hours in the reporting period and is included as a measure of
operating efficiency.
|
Excluding the impact of the full facility turnaround at the East
Dubuque Facility, the on-stream factors for the East Dubuque
Facility would have been 100.0% for ammonia and 99.6% for UAN for
the three months ended June 30, 2016.
Use of Non-GAAP Financial Measures
To supplement our actual results calculated in accordance with
GAAP for the applicable periods, the Partnership also uses the
non-GAAP financial measures noted above, which are reconciled to
our GAAP based results below. These non-GAAP financial measures
should not be considered as an alternative to GAAP results.
EBITDA is defined as net income (loss) before (i) interest
(income) expense, (ii) income tax expense and (iii) depreciation
and amortization expense.
Adjusted EBITDA is defined as EBITDA further adjusted for the
impact of non-cash share-based compensation, and, when applicable,
major scheduled turnaround expenses, loss on extinguishment of
debt, loss on disposition of assets and expenses associated with
the East Dubuque Merger.
We present EBITDA because we believe it allows users of our
financial statements, such as investors and analysts, to assess our
financial performance without regard to financing methods, capital
structure or historical cost basis. We present Adjusted EBITDA
because we have found it helpful to consider an operating measure
that excludes amounts, such as major scheduled turnaround expenses,
loss on extinguishment of debt, loss on disposition of assets,
expenses associated with the East Dubuque Merger, and business
interruption insurance proceeds, relating to transactions not
reflective of our core operations. When applicable, each of these
expenses is discussed in the Management's Discussion and Analysis
of Financial Condition and Results of Operations section of our SEC
reports, so that investors have complete information about
expenses. In addition, we believe that it is useful to exclude from
Adjusted EBITDA non-cash share-based compensation, although it is a
recurring cost incurred in the ordinary course of business. In our
view, non-cash share-based compensation, which also is presented in
our financial statements and discussed in the Management's
Discussion and Analysis of Financial Condition and Results of
Operations, reflects a non-cash cost which may obscure, for a given
period, trends in the underlying business, due to the timing and
nature of the equity awards. We also present Adjusted EBITDA
because it is the starting point used by the board of directors of
our general partner when calculating our available cash for
distribution.
EBITDA and Adjusted EBITDA are not recognized terms under GAAP
and should not be substituted for net income (loss) or cash flows
from operations. Management believes that EBITDA and Adjusted
EBITDA enable investors and analysts to better understand our
ability to make distributions to common unitholders, help investors
and analysts evaluate our ongoing operating results and allow for
greater transparency in reviewing our overall financial,
operational and economic performance by allowing investors to
evaluate the same information used by management. EBITDA and
Adjusted EBITDA presented by other companies may not be comparable
to our presentation, since each company may define these terms
differently.
A reconciliation of consolidated Net Income (Loss) to
consolidated EBITDA and consolidated Adjusted EBITDA is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Net income
(loss)
|
|
$
|
(17.0)
|
|
|
$
|
27.0
|
|
|
$
|
1.0
|
|
|
$
|
56.8
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
|
15.5
|
|
|
1.7
|
|
|
17.2
|
|
|
3.4
|
|
Depreciation and
amortization
|
|
17.6
|
|
|
7.0
|
|
|
24.5
|
|
|
13.8
|
|
Income tax
expense
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
EBITDA
|
|
$
|
16.2
|
|
|
$
|
35.7
|
|
|
$
|
42.8
|
|
|
$
|
74.0
|
|
Add:
|
|
|
|
|
|
|
|
|
Major scheduled
turnaround expenses
|
|
6.6
|
|
|
0.4
|
|
|
6.6
|
|
|
0.4
|
|
Share-based
compensation, non-cash
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Loss on
extinguishment of debt
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Expenses associated
with the East Dubuque Merger
|
|
1.2
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
29.1
|
|
|
$
|
36.1
|
|
|
$
|
57.0
|
|
|
$
|
74.5
|
|
Available cash for distribution is not a recognized term under
GAAP. Available cash for distribution should not be considered in
isolation or as an alternative to net income (loss) or operating
income, or any other measure of financial performance or operating
performance. In addition, available cash for distribution is not
presented as, and should not be considered, an alternative to cash
flows from operations or as a measure of liquidity. Available cash
for distribution as reported by the Partnership may not be
comparable to similarly titled measures of other entities, thereby
limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash
needed for (i) net cash interest expense (excluding
capitalized interest) and debt service and other contractual
obligations; (ii) maintenance capital expenditures; and
(iii) to the extent applicable, major scheduled turnaround
expenses, reserves for future operating or capital needs that the
board of directors of the general partner deemed necessary or
appropriate, and expenses associated with the East Dubuque Merger,
if any. Available cash for distribution may be increased by the
release of previously established cash reserves, if any, at the
discretion of the board of directors of our general partner, and
available cash is increased by the business interruption insurance
proceeds and the impact of purchase accounting. Actual
distributions are set by the board of directors of our general
partner. The board of directors of our general partner may modify
our cash distribution policy at any time, and our partnership
agreement does not require us to make distributions at all.
A reconciliation of consolidated Adjusted EBITDA to Available
cash for distribution is as follows:
|
|
|
Three Months
Ended
June 30, 2016
|
|
|
|
(in millions,
except units and per unit data)
|
Adjusted
EBITDA
|
$
|
29.1
|
Adjustments:
|
|
Less:
|
|
Net cash interest
expense (excluding capitalized interest) and debt
service
|
(14.5)
|
Maintenance capital
expenditures
|
(4.1)
|
Major scheduled
turnaround expenses
|
(6.6)
|
Expenses associated
with the East Dubuque Merger
|
(1.2)
|
Add:
|
|
Insurance recovery -
business interruption
|
4.0
|
Impact of purchase
accounting (1)
|
13.0
|
Available cash for
distribution
|
$
|
19.7
|
Available cash for
distribution, per common unit
|
$
|
0.17
|
Common units
outstanding (in thousands)
|
113,283
|
________________________________
|
(1) The impact of
purchase accounting includes an inventory fair value adjustment of
$18.3 million and a deferred revenue fair value adjustment of $5.3
million.
|
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SOURCE CVR Partners, LP