INDIANAPOLIS, March 3, 2021 /PRNewswire/ -- Calumet
Specialty Products Partners, L.P. (NASDAQ: CLMT) (the
"Partnership," "Calumet," "we," "our" or "us"), a leading
independent producer of petroleum-based specialty products, today
reported results for the fourth quarter and year ended
December 31, 2020, as follows:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
millions, except per unit data)
|
Net loss
|
$
|
(82.1)
|
|
|
$
|
(38.6)
|
|
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
Net loss per
unit
|
$
|
(1.03)
|
|
|
$
|
(0.48)
|
|
|
$
|
(1.86)
|
|
|
$
|
(0.55)
|
|
Adjusted net
loss
|
$
|
(69.8)
|
|
|
$
|
(15.6)
|
|
|
$
|
(105.2)
|
|
|
$
|
(1.7)
|
|
Adjusted net loss per
unit
|
$
|
(0.89)
|
|
|
$
|
(0.20)
|
|
|
$
|
(1.34)
|
|
|
$
|
(0.02)
|
|
Adjusted
EBITDA
|
$
|
(8.6)
|
|
|
$
|
49.9
|
|
|
$
|
141.5
|
|
|
$
|
262.8
|
|
For the fourth quarter 2020, the Partnership's $82.1 million Net loss, or $1.03 of net loss
per unit, included a $7.0 million
favorable net impact related to the non-cash lower of cost or
market ("LCM") inventory adjustments and the liquidation of
last-in, first-out ("LIFO") inventory layers. Excluding the impact
of LCM, LIFO and other non-cash and non-recurring items, Adjusted
net loss and Adjusted net loss per unit were $69.8 million and $0.89 per unit, respectively. The Partnership's
$(8.6) million of Adjusted EBITDA for
the fourth quarter of 2020 excluded the favorable net impact of LCM
and the liquidation of LIFO layers.
For the full year 2020, the Partnership's $149.0 million Net loss, or $1.86 of net loss per unit, included a
$28.5 million unfavorable net
impact related to the non-cash LCM inventory adjustments and the
liquidation of LIFO inventory layers. Excluding the impact of LCM,
LIFO and other non-cash and non-recurring items, Adjusted net loss
and Adjusted net loss per unit were $105.2
million and $1.34 per unit,
respectively. The Partnership's $141.5
million of Adjusted EBITDA for the year ended December 31, 2020 excluded the unfavorable net
impact of LCM and the liquidation of LIFO layers.
Investors are advised to review the Partnership's annual report
on Form 10-K that will be filed today for further details on the
2020 results, as well as the investor relations section of the
Partnership's website where an updated investor presentation for
the fourth quarter of 2020 has been provided. For detailed
information on Adjusted net loss, Adjusted net loss per unit,
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net loss per
unit, Specialty products segment Adjusted gross profit, Fuel
products segment Adjusted gross profit (loss) and a reconciliation
of such measures to the nearest comparable U.S. GAAP measure for
the periods presented above, please see the sections of this
release entitled "Non-GAAP Financial Measures" and "Non-GAAP
Reconciliations."
Management Commentary
"In a difficult and challenging pandemic year, the team
successfully focused on execution. We were particularly pleased
that our core Specialties business had an extremely successful
2020," said Steve Mawer, our Chief
Executive Officer. "For the fourth quarter, Specialty gross profit
and Adjusted EBITDA grew by 27.6% and 43.5%, respectively,
overcoming typical seasonality. We are very proud of the hard work
and dedication exhibited by our team during an unparalleled global
health crisis."
Mawer continued, "COVID-related demand weakness presented
challenges to our Fuels business throughout the year, with our
results negatively impacted by weak refining fundamentals and the
mark-to-market of non-cash RINs costs. Despite this, the
partnership took decisive actions and delivered a record-setting
safety performance, a step change in our cost structure, and a
laser focus approach on satisfying our customers during a difficult
time. These actions combined with strong organic growth in
specialties, led by a record year in our Finished Lubes &
Chemicals business, helped Calumet generate positive free cash flow
in the most challenging of circumstances."
Mawer continued, "Looking ahead, we are encouraged by the
continued growth of our specialties business and the across the
board improvement in demand for all of our products as a result of
the economic recovery being driven by the rapid rollout of the
vaccine."
Specialty Products Segment | Results Summary
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
millions, except per barrel data)
|
Gross profit
|
$
|
88.3
|
|
|
$
|
69.2
|
|
|
$
|
329.2
|
|
|
$
|
324.8
|
|
Adjusted gross
profit
|
$
|
86.7
|
|
|
$
|
63.3
|
|
|
$
|
340.9
|
|
|
$
|
312.7
|
|
Adjusted
EBITDA
|
$
|
61.4
|
|
|
$
|
42.8
|
|
|
$
|
238.0
|
|
|
$
|
207.9
|
|
Gross profit per
barrel
|
$
|
43.69
|
|
|
$
|
33.82
|
|
|
$
|
40.23
|
|
|
$
|
35.74
|
|
Adjusted gross profit
per barrel
|
$
|
42.90
|
|
|
$
|
30.94
|
|
|
$
|
41.66
|
|
|
$
|
34.41
|
|
Adjusted EBITDA
margin
|
21.7
|
%
|
|
14.2
|
%
|
|
21.2
|
%
|
|
15.4
|
%
|
During the fourth quarter, the Specialty products segment gross
profit was $88.3 million compared to
$69.2 million in the fourth quarter
of 2019. The Specialty products segment Adjusted EBITDA of
$61.4 million improved 43.5% versus
the prior year period, while Adjusted gross profit of $86.7 million improved 37.0% compared to the
fourth quarter of 2019. Quarterly Adjusted EBITDA and gross profit
results overcame typical fourth quarter seasonality and improved on
both a year-over-year and sequential basis, led by growth in
consumer-facing markets and a normalizing industrial market. Gross
profit per barrel results of $43.69
grew 29.2% versus the prior year quarter, and Adjusted EBITDA
margins of 21.7% expanded by 750 basis points versus 14.2% in last
year's fourth quarter.
Fuel Products Segment | Results Summary
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
millions, except per barrel data)
|
Gross Profit
|
$
|
(66.4)
|
|
|
$
|
21.6
|
|
|
$
|
(119.1)
|
|
|
$
|
126.9
|
|
Adjusted Gross
Profit
|
$
|
(71.8)
|
|
|
$
|
23.8
|
|
|
$
|
(102.3)
|
|
|
$
|
97.4
|
|
Adjusted
EBITDA
|
$
|
(57.9)
|
|
|
$
|
28.7
|
|
|
$
|
(30.3)
|
|
|
$
|
152.5
|
|
Gross profit per
barrel
|
$
|
(12.09)
|
|
|
$
|
3.18
|
|
|
$
|
(5.06)
|
|
|
$
|
4.35
|
|
Adjusted gross profit
per barrel
|
$
|
(13.07)
|
|
|
$
|
3.50
|
|
|
$
|
(4.35)
|
|
|
$
|
3.34
|
|
During the fourth quarter, Fuel products segment gross profit
(loss) was $(66.4) million, compared
to $21.6 million in the year-ago
period. Fuels products Adjusted gross profit (loss) and Adjusted
EBITDA of $(71.8) million and
$(57.9) million were down
significantly compared to the fourth quarter of 2019. The primary
driver of the decline stemmed from the rise in RINs costs,
which negatively impacted the fourth quarter gross profit and
Adjusted EBITDA results. Additionally, quarterly results declined
versus the prior year period due to weak refining fundamentals,
specifically the meaningful decline in crack spreads and tighter
crude differentials compared to the fourth quarter of 2019.
These headwinds were partially offset by improved fuels
product rack sales volumes into local niche markets and lower
operating costs captured through cost rationalization efforts
undertaken during the year.
Partnership Liquidity
As of December 31, 2020, the Partnership had total
liquidity of $263.8 million,
comprised of $109.4 million of cash
on hand, plus approximately $154.4
million of availability under its revolving credit facility.
The borrowing base under the revolving credit facility was
approximately $286.1 million, and the
Partnership had $23.7 million in
outstanding standby letters of credit and $108.0 million outstanding borrowings. The
Partnership believes it will continue to have sufficient liquidity
from cash on hand, cash flow from operations, borrowing capacity
and other means by which to meet its financial commitments, debt
service obligations, contingencies and anticipated capital
expenditures.
Operations Summary
The following table sets forth information about our combined
operations, excluding the results of discontinued operations.
Facility production volume differs from sales volume due to changes
in inventories and the sale of purchased fuel product blendstocks
such as ethanol and biodiesel and the resale of crude oil in our
fuel products segment.
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
bpd)
|
|
(In
bpd)
|
Total sales volume
(1)
|
81,661
|
|
|
96,032
|
|
|
86,727
|
|
|
104,734
|
|
Total feedstock runs
(2)
|
83,482
|
|
|
94,164
|
|
|
84,829
|
|
|
103,603
|
|
Facility production:
(3)
|
|
|
|
|
|
|
|
Specialty
products:
|
|
|
|
|
|
|
|
Lubricating
oils
|
11,049
|
|
|
10,420
|
|
|
10,143
|
|
|
11,506
|
|
Solvents
|
7,769
|
|
|
7,367
|
|
|
6,819
|
|
|
7,526
|
|
Waxes
|
1,510
|
|
|
1,015
|
|
|
1,318
|
|
|
1,315
|
|
Packaged and synthetic
specialty products (4)
|
1,303
|
|
|
1,163
|
|
|
1,381
|
|
|
1,540
|
|
Other
|
1,544
|
|
|
2,172
|
|
|
1,697
|
|
|
1,764
|
|
Total specialty
products
|
23,175
|
|
|
22,137
|
|
|
21,358
|
|
|
23,651
|
|
|
|
|
|
|
|
|
|
Fuel
products:
|
|
|
|
|
|
|
|
Gasoline
|
17,755
|
|
|
20,091
|
|
|
18,074
|
|
|
22,877
|
|
Diesel
|
20,758
|
|
|
25,681
|
|
|
24,054
|
|
|
28,709
|
|
Jet fuel
|
3,564
|
|
|
4,634
|
|
|
3,645
|
|
|
4,506
|
|
Asphalt, heavy fuel
oils and other
|
13,738
|
|
|
18,075
|
|
|
14,324
|
|
|
20,286
|
|
Total fuel
products
|
55,815
|
|
|
68,481
|
|
|
60,097
|
|
|
76,378
|
|
Total facility
production (3)
|
78,990
|
|
|
90,618
|
|
|
81,455
|
|
|
100,029
|
|
_____________________
|
(1)
|
Total sales volume
includes sales from the production at our facilities and certain
third-party facilities pursuant to supply and/or processing
agreements, sales of inventories and the resale of crude oil to
third-party customers. Total sales volume also includes the sale of
purchased fuel product blendstocks, such as ethanol and biodiesel,
as components of finished fuel products in our fuel products
segment sales.
|
|
|
|
The decrease in total
sales volume in 2020 compared to 2019, is due primarily to the sale
of the San Antonio refinery, the terminated third-party naphthenic
lubricating oil production arrangement, intentional Stock-Keeping
Unit ("SKU") rationalization and elimination of low margin toll
processing, and softened demand due to the COVID-19
pandemic.
|
|
|
(2)
|
Total feedstock runs
represent the barrels per day of crude oil and other feedstocks
processed at our facilities and at certain third-party facilities
pursuant to supply and/or processing agreements.
|
|
|
|
The decrease in total
feedstock runs in 2020 compared to 2019 is due primarily to the
sale of the San Antonio refinery, the terminated third-party
naphthenic lubricating oil production arrangement, terminated low
margin tolling of packaged and synthetic products, and softened
demand due to the COVID-19 pandemic.
|
|
|
(3)
|
Total facility
production represents the barrels per day of specialty products and
fuel products yielded from processing feedstocks at our facilities
and at certain third-party facilities pursuant to supply and/or
processing agreements. The difference between total facility
production and total feedstock runs is primarily a result of the
time lag between the input of feedstocks and the production of
finished products, intermediates transferred to internal sites for
further processing, and volume loss.
|
|
|
|
The changes in total
facility production in 2020 over 2019 are due primarily to the sale
of the San Antonio refinery and the operational items discussed
above.
|
|
|
(4)
|
Represents production
of finished lubricants and specialty chemicals products, including
the products from our Royal Purple, Bel-Ray and Calumet Packaging
facilities.
|
Webcast Information
A conference call is scheduled for 9:00
a.m. ET on March 3, 2021 to
discuss the financial and operational results for the fourth
quarter of 2020. Investors, analysts and members of the media
interested in listening to the live presentation are encouraged to
join a webcast of the call with accompanying presentation slides,
available on the Partnership's website at
http://www.calumetspecialty.com. Interested parties may also
participate in the call by dialing (866) 584-9671 and entering the
conference ID 7786751. A replay of the conference call will be
available a few hours after the event on the investor relations
section of the Partnership's website, under the events and
presentations section and will remain available for at least 90
days.
About the Partnership
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a
master limited partnership and a leading independent producer of
high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and
other feedstocks into customized lubricating oils, solvents and
waxes used in consumer, industrial and automotive products;
produces fuel products including gasoline, diesel and jet fuel.
Calumet is based in Indianapolis,
Indiana, and operates nine manufacturing facilities located
in northwest Louisiana, northern
Montana, western Pennsylvania, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release, may
constitute "forward-looking statements." The words "may,"
"believe," "expect," "anticipate," "estimate," "continue," "plan,"
"intend," "foresee," "should," "would," "could" or other similar
expressions are intended to identify forward-looking statements,
which are generally not historical in nature. The statements
discussed in this press release that are not purely historical data
are forward-looking statements, including, but not limited to, the
statements regarding (i) the effect, impact, potential duration or
other implications of the ongoing novel coronavirus ("COVID-19")
pandemic and global crude oil production levels on our business and
operations, (ii) the demand for refined petroleum products in
markets we serve, (iii) our expectation regarding our business
outlook and cash flows, (iv) our expectation regarding anticipated
capital expenditures and strategic initiatives, and (v) our ability
to meet our financial commitments, debt service obligations, debt
instrument covenants, contingencies and anticipated capital
expenditures. These forward-looking statements are based on our
current expectations and beliefs concerning future developments and
their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. All comments concerning our expectations
for future sales and operating results are based on our forecasts
for our existing operations and do not include the potential impact
of any future acquisition or disposition transactions. Our
forward-looking statements involve significant risks and
uncertainties (some of which are beyond our control) and
assumptions that could cause our actual results to differ
materially from our historical experience and our present
expectations or projections. Known material factors that could
cause actual results to differ materially from those in the
forward-looking statements include: the overall demand for
specialty hydrocarbon products, fuels and other refined products;
the level of foreign and domestic production of crude oil and
refined products; our ability to produce specialty products and
fuels products that meet our customers' unique and precise
specifications; the impact of fluctuations and rapid increases or
decreases in crude oil and crack spread prices, including the
resulting impact on our liquidity; the results of our hedging and
other risk management activities; our ability to comply with
financial covenants contained in our debt instruments; the
availability of, and our ability to consummate, acquisition or
combination opportunities and the impact of any completed
acquisitions; labor relations; our access to capital to fund
expansions, acquisitions and our working capital needs and our
ability to obtain debt or equity financing on satisfactory terms;
successful integration and future performance of acquired assets,
businesses or third-party product supply and processing
relationships; our ability to timely and effectively integrate the
operations of acquired businesses or assets, particularly those in
new geographic areas or in new lines of business; environmental
liabilities or events that are not covered by an indemnity,
insurance or existing reserves; maintenance of our credit ratings
and ability to receive open credit lines from our suppliers; demand
for various grades of crude oil and resulting changes in pricing
conditions; fluctuations in refinery capacity; our ability to
access sufficient crude oil supply through long-term or
month-to-month evergreen contracts and on the spot market; the
effects of competition; continued creditworthiness of, and
performance by, counterparties; the impact of current and future
laws, rulings and governmental regulations, including guidance
related to the Dodd-Frank Wall Street Reform and Consumer
Protection Act; the costs of complying with the Renewable Fuel
Standard, including the prices paid for RINs; shortages or cost
increases of power supplies, natural gas, materials or labor;
hurricane or other weather interference with business operations;
our ability to access the debt and equity markets; accidents or
other unscheduled shutdowns; and general economic, market or
business conditions.
For additional information regarding known material factors that
could cause our actual results to differ from our projected
results, please see our filings with the Securities and Exchange
Commission ("SEC"), including our latest Annual Report on Form 10-K
and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update or revise
any forward-looking statements after the date they are made,
whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
Our management uses certain non-GAAP performance measures to
analyze operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our financial information presented in accordance
with GAAP. These financial and operational non-GAAP measures are
important factors in assessing our operating results and
profitability and include performance and liquidity measures along
with certain key operating metrics.
During the first quarter of 2020, we changed how we calculate
Adjusted EBITDA, which is used by management for evaluating
performance, allocating resources and managing our business. The
revised calculation of Adjusted EBITDA now excludes the impact of
LCM inventory adjustments and the liquidation of inventory layers
calculated using the last-in, first-out ("LIFO") method, which were
previously included. This revised calculation better reflects the
performance of our business segments including cash flows. Adjusted
EBITDA has been revised for all periods presented to consistently
reflect this change. We previously also presented Adjusted EBITDA
(excluding LCM/LIFO), which is consistent with our revised
definition of Adjusted EBITDA.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss)
plus interest expense (including amortization of debt issuance
costs), income taxes and depreciation and amortization.
Adjusted EBITDA: We define Adjusted EBITDA for any period as:
EBITDA adjusted for (a) impairment; (b) unrealized gains and
losses from mark to market accounting for hedging activities;
(c) realized gains and losses under derivative instruments
excluded from the determination of net income (loss);
(d) non-cash equity-based compensation expense and other
non-cash items (excluding items such as accruals of cash expenses
in a future period or amortization of a prepaid cash expense) that
were deducted in computing net income (loss); (e) debt
refinancing fees, premiums and penalties; (f) any net gain or loss
realized in connection with an asset sale that was deducted in
computing net income (loss); (g) LCM inventory adjustments; (h) the
impact of liquidation of inventory layers calculated using the LIFO
method; and (i) all extraordinary, unusual or non-recurring
items of gain or loss, or revenue or expense.
Distributable Cash Flow: We define Distributable Cash Flow for
any period as Adjusted EBITDA less replacement and environmental
capital expenditures, turnaround costs, cash interest expense
(consolidated interest expense less non-cash interest expense),
gain (loss) from unconsolidated affiliates, net of cash
distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any
period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss)
for any period as: net income (loss) adjusted for (a) impairment;
(b) unrealized losses from mark-to-market accounting for
hedging activities; (c) realized gains and losses under
derivative instruments excluded from the determination of net
income (loss); (d) non-cash equity-based compensation expense
and other non-cash items (excluding items such as accruals of cash
expenses in a future period or amortization of a prepaid cash
expense) that were deducted in computing net income (loss);
(e) debt refinancing fees, premiums and penalties; (f) any net
gain or loss realized in connection with an asset sale that was
deducted in computing net income (loss); (g) all
extraordinary, unusual or non-recurring items of gain or loss, or
revenue or expense; (h) LCM inventory adjustments; and (i) the
impact of liquidation of inventory layers calculated using the LIFO
method.
Adjusted net income (loss) per unit: We define Adjusted net
income (loss) per unit for any period as Adjusted net income (loss)
divided by average limited partner units basic and diluted.
Specialty products segment Adjusted gross profit: We define
Specialty products segment Adjusted gross profit for any period as
Specialty products segment gross profit excluding the impact of LCM
inventory adjustments and the impact of liquidation of inventory
layers calculated using the LIFO method.
Fuel products segment Adjusted gross profit (loss): We define
Fuel products segment Adjusted gross profit (loss) for any period
as Fuel products segment gross profit (loss) excluding the impact
of LCM inventory adjustments and the impact of liquidation of
inventory layers calculated using the LIFO method.
Further, management and various investors use the ratio of Net
debt (defined as total debt less cash) to Adjusted EBITDA, or "net
debt leverage," as a measure of our financial strength and ability
to incur incremental indebtedness when making key investment
decisions and evaluating us against peers. The metric "total debt
less cash" includes borrowed long-term debt, letters of credit, and
finance lease obligations, less cash.
The definition of Adjusted EBITDA that is presented in this
press release is similar to the calculation of (i) "Consolidated
Cash Flow" contained in the indentures governing our 7.625% senior
notes due January 15, 2022, that were
issued in November 2013 (the "2022
Notes"), our 7.75% senior notes due April
15, 2023, that were issued in March
2015 (the "2023 Notes"), our 9.25% senior secured first lien
notes due July 15, 2024, that were
issued in August 2020 (the "2024
Secured Notes"), and our 11.00% senior notes due April 15, 2025, that were issued in October 2019 (the "2025 Notes") and (ii)
"Consolidated EBITDA" contained in the credit agreement governing
our revolving credit facility. We are required to report
Consolidated Cash Flow to the holders of our 2022 Notes, 2023
Notes, 2024 Secured Notes, and 2025 Notes and Consolidated EBITDA
to the lenders under our revolving credit facility, and these
measures are used by them to determine our compliance with certain
covenants governing those debt instruments. Please see our filings
with the SEC, including our most recent Annual Report on Form 10-K
and Current Reports on Form 8-K, for additional details regarding
the covenants governing our debt instruments.
These non-GAAP measures are used as supplemental financial
measures by our management and by external users of our financial
statements such as investors, commercial banks, research analysts
and others, to assess:
- the financial performance of our assets without regard to
financing methods, capital structure or historical cost basis;
- the ability of our assets to generate cash sufficient to pay
interest costs and support our indebtedness;
- our operating performance and return on capital as compared to
those of other companies in our industry, without regard to
financing or capital structure;
- the viability of acquisitions and capital expenditure projects
and the overall rates of return on alternative investment
opportunities; and
- our operating performance excluding the non-cash impact of LCM
and LIFO inventory adjustments.
We believe that these non-GAAP measures are useful to analysts
and investors, as they exclude transactions not related to our core
cash operating activities and provide metrics to analyze our
ability to pay distributions and interest costs. We believe that
excluding these transactions allows investors to meaningfully
analyze trends and performance of our core cash operations.
EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net
income (loss), Adjusted net income (loss) per unit, and segment
Adjusted gross profit (loss) should not be considered alternatives
to Net income (loss), Operating income (loss), Net cash provided by
(used in) operating activities, gross profit (loss) or any other
measure of financial performance presented in accordance with GAAP.
In evaluating our performance as measured by EBITDA, Adjusted
EBITDA, Distributable Cash Flow, Adjusted net income (loss),
Adjusted net income (loss) per unit, and segment Adjusted gross
profit (loss) management recognizes and considers the limitations
of these measurements. EBITDA and Adjusted EBITDA do not reflect
our obligations for the payment of income taxes, interest expense
or other obligations such as capital expenditures. Accordingly,
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net
income (loss), Adjusted net income (loss) per unit, and segment
Adjusted gross profit (loss) are only a few of several measurements
that management utilizes. Moreover, our EBITDA, Adjusted EBITDA,
Distributable Cash Flow, Adjusted net income (loss), Adjusted net
income (loss) per unit and segment Adjusted gross profit (loss) may
not be comparable to similarly titled measures of another company
because all companies may not calculate EBITDA, Adjusted EBITDA,
Distributable Cash Flow, Adjusted net income (loss), Adjusted net
income (loss) per unit and segment Adjusted gross profit (loss) in
the same manner. Please see the section of this release entitled
"Non-GAAP Reconciliations" for tables that present reconciliations
of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted
net income (loss) to Net income (loss), our most directly
comparable GAAP financial performance measure; Distributable Cash
Flow to net cash provided by (used in) operating activities, our
most directly comparable GAAP liquidity measure, for each of the
periods indicated; and segment Adjusted gross profit (loss) to
segment gross profit (loss), our most directly comparable GAAP
financial performance measure.
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In millions,
except unit and per unit data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
|
|
|
Sales
|
$
|
553.9
|
|
|
$
|
774.8
|
|
|
$
|
2,268.2
|
|
|
$
|
3,452.6
|
|
Cost of
sales
|
532.0
|
|
|
684.0
|
|
|
2,058.1
|
|
|
3,000.9
|
|
Gross
profit
|
21.9
|
|
|
90.8
|
|
|
210.1
|
|
|
451.7
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Selling
|
10.7
|
|
|
12.9
|
|
|
47.8
|
|
|
53.1
|
|
General and
administrative
|
14.4
|
|
|
31.2
|
|
|
91.1
|
|
|
136.7
|
|
Transportation
|
27.3
|
|
|
27.0
|
|
|
111.0
|
|
|
122.9
|
|
Taxes other than
income taxes
|
3.6
|
|
|
5.0
|
|
|
9.8
|
|
|
20.5
|
|
Loss on impairment and
disposal of assets
|
0.1
|
|
|
5.9
|
|
|
6.8
|
|
|
37.0
|
|
(Gain) loss on the
sale of business, net
|
(1.0)
|
|
|
8.7
|
|
|
(1.0)
|
|
|
8.7
|
|
Other operating
(income) expense
|
6.8
|
|
|
(4.3)
|
|
|
16.5
|
|
|
(3.5)
|
|
Operating income
(loss)
|
(40.0)
|
|
|
4.4
|
|
|
(71.9)
|
|
|
76.3
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(32.7)
|
|
|
(35.4)
|
|
|
(125.9)
|
|
|
(134.6)
|
|
Debt extinguishment
costs
|
—
|
|
|
(2.9)
|
|
|
—
|
|
|
(2.2)
|
|
Gain (loss) on
derivative instruments
|
(5.3)
|
|
|
(5.4)
|
|
|
52.4
|
|
|
9.0
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Gain on sale of
unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
Other income
(expense)
|
(3.8)
|
|
|
0.5
|
|
|
(2.5)
|
|
|
3.4
|
|
Total other
expense
|
(41.8)
|
|
|
(43.2)
|
|
|
(76.0)
|
|
|
(119.4)
|
|
Net loss before
income taxes
|
(81.8)
|
|
|
(38.8)
|
|
|
(147.9)
|
|
|
(43.1)
|
|
Income tax expense
(benefit)
|
0.3
|
|
|
(0.2)
|
|
|
1.1
|
|
|
0.5
|
|
Net loss
|
$
|
(82.1)
|
|
|
$
|
(38.6)
|
|
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
Allocation of net
loss:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(82.1)
|
|
|
$
|
(38.6)
|
|
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
Less:
|
|
|
|
|
|
|
|
General partner's
interest in net loss
|
(1.7)
|
|
|
(0.8)
|
|
|
(3.0)
|
|
|
(0.9)
|
|
Net loss available to
limited partners
|
$
|
(80.4)
|
|
|
$
|
(37.8)
|
|
|
$
|
(146.0)
|
|
|
$
|
(42.7)
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
78,429,721
|
|
|
78,332,671
|
|
|
78,369,091
|
|
|
78,212,136
|
|
Limited partners'
interest basic and diluted net loss per unit:
|
|
|
|
|
|
|
|
Limited partners'
interest
|
$
|
(1.03)
|
|
|
$
|
(0.48)
|
|
|
$
|
(1.86)
|
|
|
$
|
(0.55)
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
CONSOLIDATED
BALANCE SHEETS
|
(In
millions)
|
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
109.4
|
|
|
$
|
19.1
|
|
Accounts receivable,
net
|
|
|
|
Trade, less allowance
for credit losses of $0.8 million and $0.9 million,
respectively
|
152.4
|
|
|
175.0
|
|
Other
|
8.0
|
|
|
13.5
|
|
|
160.4
|
|
|
188.5
|
|
Inventories
|
254.9
|
|
|
292.6
|
|
Derivative
assets
|
—
|
|
|
0.9
|
|
Prepaid expenses and
other current assets
|
10.2
|
|
|
11.0
|
|
Total current
assets
|
534.9
|
|
|
512.1
|
|
Property, plant and
equipment, net
|
919.8
|
|
|
973.5
|
|
Goodwill
|
173.0
|
|
|
171.4
|
|
Other intangible
assets, net
|
57.6
|
|
|
71.2
|
|
Operating lease
right-of-use assets
|
85.8
|
|
|
93.1
|
|
Other noncurrent
assets, net
|
37.2
|
|
|
36.5
|
|
Total
assets
|
$
|
1,808.3
|
|
|
$
|
1,857.8
|
|
LIABILITIES AND
PARTNERS' CAPITAL (DEFICIT)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
179.3
|
|
|
$
|
230.2
|
|
Accrued interest
payable
|
31.7
|
|
|
32.0
|
|
Accrued salaries,
wages and benefits
|
27.6
|
|
|
35.7
|
|
Other taxes
payable
|
9.5
|
|
|
11.8
|
|
Obligations under
inventory financing agreements
|
98.8
|
|
|
134.3
|
|
Other current
liabilities
|
152.0
|
|
|
58.6
|
|
Current portion of
operating lease liabilities
|
41.4
|
|
|
60.6
|
|
Current portion of
long-term debt
|
2.9
|
|
|
1.8
|
|
Derivative
liabilities
|
1.3
|
|
|
—
|
|
Total current
liabilities
|
544.5
|
|
|
565.0
|
|
Pension and
postretirement benefit obligations
|
9.3
|
|
|
7.9
|
|
Other long-term
liabilities
|
18.9
|
|
|
20.8
|
|
Long-term operating
lease liabilities
|
44.8
|
|
|
33.0
|
|
Long-term debt, less
current portion
|
1,319.4
|
|
|
1,209.5
|
|
Total
liabilities
|
1,936.9
|
|
|
1,836.2
|
|
Commitments and
contingencies
|
|
|
|
Partners' capital
(deficit):
|
|
|
|
Limited partners'
interest
|
(125.3)
|
|
|
20.2
|
|
General partners'
interest
|
9.0
|
|
|
12.0
|
|
Accumulated other
comprehensive loss
|
(12.3)
|
|
|
(10.6)
|
|
Total partners'
capital (deficit)
|
(128.6)
|
|
|
21.6
|
|
Total liabilities and
partners' capital (deficit)
|
$
|
1,808.3
|
|
|
$
|
1,857.8
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
millions)
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
Net loss
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
105.1
|
|
|
110.1
|
|
Amortization of
turnaround costs
|
14.6
|
|
|
19.3
|
|
Non-cash interest
expense
|
6.0
|
|
|
6.1
|
|
Debt extinguishment
costs
|
—
|
|
|
2.2
|
|
Unrealized (gain) loss
on derivative instruments
|
(2.8)
|
|
|
26.1
|
|
Loss on impairment and
disposal of assets
|
6.8
|
|
|
37.0
|
|
Operating lease
expense
|
56.7
|
|
|
78.2
|
|
Operating lease
payments
|
(56.8)
|
|
|
(78.2)
|
|
Equity based
compensation
|
5.5
|
|
|
5.9
|
|
Lower of cost or
market inventory adjustment
|
24.0
|
|
|
(35.6)
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
(3.8)
|
|
Gain on sale of
unconsolidated affiliates
|
—
|
|
|
(1.2)
|
|
(Gain) loss on sale of
business, net
|
(1.0)
|
|
|
8.7
|
|
Other non-cash
activities
|
(1.0)
|
|
|
(0.4)
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
25.5
|
|
|
(37.0)
|
|
Inventories
|
14.0
|
|
|
16.3
|
|
Prepaid expenses and
other current assets
|
0.6
|
|
|
4.5
|
|
Derivative
activity
|
—
|
|
|
(0.3)
|
|
Turnaround
costs
|
(23.4)
|
|
|
(17.8)
|
|
Other
assets
|
—
|
|
|
(0.1)
|
|
Accounts
payable
|
(38.1)
|
|
|
71.3
|
|
Accrued interest
payable
|
(1.0)
|
|
|
1.5
|
|
Accrued salaries,
wages and benefits
|
(12.5)
|
|
|
5.3
|
|
Other taxes
payable
|
(2.3)
|
|
|
2.5
|
|
Other
liabilities
|
91.9
|
|
|
14.8
|
|
Pension and
postretirement benefit obligations
|
—
|
|
|
0.1
|
|
Net cash provided by
operating activities
|
$
|
62.8
|
|
|
$
|
191.9
|
|
Investing
activities
|
|
|
|
Additions to property,
plant and equipment
|
(44.0)
|
|
|
(54.9)
|
|
Acquisition of
businesses, net of cash acquired
|
(3.3)
|
|
|
—
|
|
Proceeds from sale of
unconsolidated affiliates
|
—
|
|
|
5.0
|
|
Proceeds from sale of
property, plant and equipment
|
0.1
|
|
|
3.7
|
|
Proceeds from sale of
business, net
|
—
|
|
|
55.1
|
|
Net cash provided by
discontinued operations
|
0.9
|
|
|
5.6
|
|
Net cash provided by
(used in) investing activities
|
$
|
(46.3)
|
|
|
$
|
14.5
|
|
Financing
activities
|
|
|
|
Proceeds from
borrowings — revolving credit facility
|
1,130.7
|
|
|
508.5
|
|
Repayments of
borrowings — revolving credit facility
|
(1,022.7)
|
|
|
(508.5)
|
|
Proceeds from
borrowings — senior notes
|
—
|
|
|
550.0
|
|
Repayments of
borrowings — senior notes
|
—
|
|
|
(898.5)
|
|
Payments on finance
lease obligations
|
(0.5)
|
|
|
(0.9)
|
|
Proceeds from
inventory financing agreements
|
756.1
|
|
|
1,076.5
|
|
Payments on inventory
financing agreements
|
(786.0)
|
|
|
(1,057.3)
|
|
Proceeds from other
financing activities
|
31.4
|
|
|
—
|
|
Payments on other
financing obligations
|
(33.4)
|
|
|
(1.9)
|
|
Debt issuance
costs
|
(1.8)
|
|
|
(11.0)
|
|
Contributions from
Calumet GP, LLC
|
—
|
|
|
0.1
|
|
Net cash provided by
(used in) financing activities
|
$
|
73.8
|
|
|
$
|
(343.0)
|
|
Net increase
(decrease) in cash and cash equivalents
|
90.3
|
|
|
(136.6)
|
|
Cash and cash
equivalents at beginning of period
|
19.1
|
|
|
155.7
|
|
Cash and cash
equivalents at end of period
|
$
|
109.4
|
|
|
$
|
19.1
|
|
Supplemental
disclosure of non-cash investing activities
|
|
|
|
Non-cash property,
plant and equipment additions
|
$
|
4.6
|
|
|
$
|
11.8
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
NON-GAAP
RECONCILIATION OF NET LOSS TO
|
EBITDA, ADJUSTED
EBITDA AND DISTRIBUTABLE CASH FLOW
|
(In
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net loss to EBITDA, Adjusted EBITDA and Distributable Cash
Flow:
|
(Unaudited)
|
Net loss
|
$
|
(82.1)
|
|
|
$
|
(38.6)
|
|
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
Add:
|
|
|
|
|
|
|
|
Interest
expense
|
32.7
|
|
|
35.4
|
|
|
125.9
|
|
|
134.6
|
|
Depreciation and
amortization
|
26.3
|
|
|
27.5
|
|
|
105.1
|
|
|
110.1
|
|
Income tax (benefit)
expense
|
0.3
|
|
|
(0.2)
|
|
|
1.1
|
|
|
0.5
|
|
EBITDA
|
$
|
(22.8)
|
|
|
$
|
24.1
|
|
|
$
|
83.1
|
|
|
$
|
201.6
|
|
Add:
|
|
|
|
|
|
|
|
LCM / LIFO (gain)
loss
|
$
|
(7.0)
|
|
|
$
|
(3.9)
|
|
|
$
|
28.5
|
|
|
$
|
(41.8)
|
|
Unrealized (gain) loss
on derivative instruments
|
18.4
|
|
|
5.9
|
|
|
(2.8)
|
|
|
26.1
|
|
Debt extinguishment
costs
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.2
|
|
Amortization of
turnaround costs
|
1.9
|
|
|
2.8
|
|
|
14.6
|
|
|
19.3
|
|
Loss on impairment and
disposal of assets
|
0.1
|
|
|
5.9
|
|
|
6.8
|
|
|
37.0
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
(Gain) loss on sale of
business, net
|
(1.0)
|
|
|
8.7
|
|
|
(1.0)
|
|
|
8.7
|
|
Other non-recurring
(income) expenses
|
(1.9)
|
|
|
2.2
|
|
|
2.4
|
|
|
3.5
|
|
Equity based
compensation and other items
|
3.7
|
|
|
1.3
|
|
|
9.9
|
|
|
7.4
|
|
Adjusted
EBITDA
|
$
|
(8.6)
|
|
|
$
|
49.9
|
|
|
$
|
141.5
|
|
|
$
|
262.8
|
|
Less:
|
|
|
|
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
$
|
14.2
|
|
|
$
|
23.0
|
|
|
$
|
31.8
|
|
|
$
|
50.0
|
|
Cash interest expense
(2)
|
31.5
|
|
|
34.2
|
|
|
119.9
|
|
|
128.5
|
|
Turnaround
costs
|
3.7
|
|
|
1.0
|
|
|
23.4
|
|
|
17.8
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Income tax (benefit)
expense
|
0.3
|
|
|
(0.2)
|
|
|
1.1
|
|
|
0.5
|
|
Distributable Cash
Flow
|
$
|
(58.3)
|
|
|
$
|
(8.1)
|
|
|
$
|
(34.7)
|
|
|
$
|
62.2
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
NON-GAAP
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED
EBITDA
|
AND EBITDA TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
(In
millions)
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
Reconciliation of
Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash
provided by operating activities:
|
(Unaudited)
|
Distributable Cash
Flow
|
$
|
(34.7)
|
|
|
$
|
62.2
|
|
Add:
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
31.8
|
|
|
50.0
|
|
Cash interest expense
(2)
|
119.9
|
|
|
128.5
|
|
Turnaround
costs
|
23.4
|
|
|
17.8
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
3.8
|
|
Income tax
expense
|
1.1
|
|
|
0.5
|
|
Adjusted
EBITDA
|
$
|
141.5
|
|
|
$
|
262.8
|
|
Less:
|
|
|
|
LCM / LIFO (gain)
loss
|
$
|
28.5
|
|
|
$
|
(41.8)
|
|
Unrealized (gain) loss
on derivative instruments
|
(2.8)
|
|
|
26.1
|
|
Debt extinguishment
costs
|
—
|
|
|
2.2
|
|
Amortization of
turnaround costs
|
14.6
|
|
|
19.3
|
|
Loss on impairment and
disposal of assets
|
6.8
|
|
|
37.0
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
(1.2)
|
|
(Gain) loss on the
sale of business, net
|
(1.0)
|
|
|
8.7
|
|
Other non-recurring
expenses
|
2.4
|
|
|
3.5
|
|
Equity based
compensation and other items
|
9.9
|
|
|
7.4
|
|
EBITDA
|
$
|
83.1
|
|
|
$
|
201.6
|
|
Add:
|
|
|
|
Unrealized (gain) loss
on derivative instruments
|
(2.8)
|
|
|
26.1
|
|
Cash interest expense
(2)
|
(119.9)
|
|
|
(128.5)
|
|
(Gain) loss on the
sale of business, net
|
(1.0)
|
|
|
8.7
|
|
Other non-recurring
expenses
|
2.4
|
|
|
3.5
|
|
Loss on impairment and
disposal of assets
|
6.8
|
|
|
37.0
|
|
Lower of cost or
market inventory adjustment
|
24.0
|
|
|
(35.6)
|
|
Equity-based
compensation
|
5.5
|
|
|
5.9
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
(3.8)
|
|
Gain on sale of
unconsolidated affiliates
|
—
|
|
|
(1.2)
|
|
Amortization of
turnaround costs
|
14.6
|
|
|
19.3
|
|
Income tax
expense
|
(1.1)
|
|
|
(0.5)
|
|
Debt extinguishment
costs
|
—
|
|
|
2.2
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
25.5
|
|
|
(37.0)
|
|
Inventories
|
14.0
|
|
|
16.3
|
|
Other current
assets
|
0.6
|
|
|
4.5
|
|
Turnaround
costs
|
(23.4)
|
|
|
(17.8)
|
|
Derivative
activity
|
—
|
|
|
(0.3)
|
|
Other
assets
|
—
|
|
|
(0.1)
|
|
Accounts
payable
|
(38.1)
|
|
|
71.3
|
|
Accrued interest
payable
|
(1.0)
|
|
|
1.5
|
|
Other
liabilities
|
77.1
|
|
|
22.6
|
|
Other
|
(3.5)
|
|
|
(3.8)
|
|
Net cash provided by
operating activities
|
$
|
62.8
|
|
|
$
|
191.9
|
|
_________________
|
(1)
|
Replacement capital
expenditures are defined as those capital expenditures which do not
increase operating capacity or reduce operating costs and exclude
turnaround costs. Environmental capital expenditures include asset
additions to meet or exceed environmental and operating
regulations.
|
|
|
(2)
|
Represents
consolidated interest expense less non-cash interest
expense.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
NON-GAAP
RECONCILIATION OF
|
SEGMENT ADJUSTED
EBITDA TO NET LOSS
|
(In
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Segment Adjusted EBITDA to Net loss:
|
(Unaudited)
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Corporate Adjusted
EBITDA
|
$
|
(12.1)
|
|
|
$
|
(21.6)
|
|
|
$
|
(66.2)
|
|
|
$
|
(97.6)
|
|
Specialty products
Adjusted EBITDA
|
61.4
|
|
|
42.8
|
|
|
238.0
|
|
|
207.9
|
|
Fuel products
Adjusted EBITDA
|
(57.9)
|
|
|
28.7
|
|
|
(30.3)
|
|
|
152.5
|
|
Total Adjusted
EBITDA
|
$
|
(8.6)
|
|
|
$
|
49.9
|
|
|
$
|
141.5
|
|
|
$
|
262.8
|
|
Less:
|
|
|
|
|
|
|
|
LCM / LIFO (gain)
loss
|
$
|
(7.0)
|
|
|
$
|
(3.9)
|
|
|
$
|
28.5
|
|
|
$
|
(41.8)
|
|
Unrealized (gain)
loss on derivative instruments
|
18.4
|
|
|
5.9
|
|
|
(2.8)
|
|
|
26.1
|
|
Debt extinguishment
costs
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.2
|
|
Amortization of
turnaround costs
|
1.9
|
|
|
2.8
|
|
|
14.6
|
|
|
19.3
|
|
Loss on impairment
and disposal of assets
|
0.1
|
|
|
5.9
|
|
|
6.8
|
|
|
37.0
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
(Gain) loss on sale
of business, net
|
(1.0)
|
|
|
8.7
|
|
|
(1.0)
|
|
|
8.7
|
|
Other non-recurring
(income) expenses
|
(1.9)
|
|
|
2.2
|
|
|
2.4
|
|
|
3.5
|
|
Equity based
compensation and other items
|
3.7
|
|
|
1.3
|
|
|
9.9
|
|
|
7.4
|
|
EBITDA
|
$
|
(22.8)
|
|
|
$
|
24.1
|
|
|
$
|
83.1
|
|
|
$
|
201.6
|
|
Less:
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
32.7
|
|
|
$
|
35.4
|
|
|
$
|
125.9
|
|
|
$
|
134.6
|
|
Depreciation and
amortization
|
26.3
|
|
|
27.5
|
|
|
105.1
|
|
|
110.1
|
|
Income tax (benefit)
expense
|
0.3
|
|
|
(0.2)
|
|
|
1.1
|
|
|
0.5
|
|
Net loss
|
$
|
(82.1)
|
|
|
$
|
(38.6)
|
|
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
NON-GAAP
RECONCILIATION OF
|
SEGMENT METRICS
EXCLUDING LCM/LIFO
|
(In millions,
except per barrel data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Segment Metrics Excluding LCM/LIFO:
|
(Unaudited)
|
Specialty products
segment gross profit
|
$
|
88.3
|
|
|
$
|
69.2
|
|
|
$
|
329.2
|
|
|
$
|
324.8
|
|
LCM inventory
adjustments
|
(5.5)
|
|
|
(2.2)
|
|
|
7.8
|
|
|
(9.3)
|
|
LIFO inventory layer
adjustments
|
3.9
|
|
|
(3.7)
|
|
|
3.9
|
|
|
(2.8)
|
|
Specialty products
segment Adjusted gross profit
|
$
|
86.7
|
|
|
$
|
63.3
|
|
|
$
|
340.9
|
|
|
$
|
312.7
|
|
|
|
|
|
|
|
|
|
Fuel products segment
gross profit (loss)
|
$
|
(66.4)
|
|
|
$
|
21.6
|
|
|
$
|
(119.1)
|
|
|
$
|
126.9
|
|
LCM inventory
adjustments
|
(6.0)
|
|
|
5.4
|
|
|
16.2
|
|
|
(26.3)
|
|
LIFO inventory layer
adjustments
|
0.6
|
|
|
(3.2)
|
|
|
0.6
|
|
|
(3.2)
|
|
Fuel products segment
Adjusted gross profit (loss)
|
$
|
(71.8)
|
|
|
$
|
23.8
|
|
|
$
|
(102.3)
|
|
|
$
|
97.4
|
|
|
|
|
|
|
|
|
|
Reported Specialty
products segment gross profit per barrel
|
$
|
43.69
|
|
|
$
|
33.82
|
|
|
$
|
40.23
|
|
|
$
|
35.74
|
|
LCM/LIFO inventory
adjustments per barrel
|
(0.79)
|
|
|
(2.88)
|
|
|
1.43
|
|
|
(1.33)
|
|
Specialty products
segment Adjusted gross profit per barrel
|
$
|
42.90
|
|
|
$
|
30.94
|
|
|
$
|
41.66
|
|
|
$
|
34.41
|
|
|
|
|
|
|
|
|
|
Reported Fuel
products segment gross profit (loss) per barrel
|
$
|
(12.09)
|
|
|
$
|
3.18
|
|
|
$
|
(5.06)
|
|
|
$
|
4.35
|
|
LCM/LIFO inventory
adjustments per barrel
|
(0.98)
|
|
|
0.32
|
|
|
0.71
|
|
|
(1.01)
|
|
Fuel products segment
Adjusted gross (loss) profit per barrel
|
$
|
(13.07)
|
|
|
$
|
3.50
|
|
|
$
|
(4.35)
|
|
|
$
|
3.34
|
|
|
|
|
|
|
|
|
|
Specialty products
segment Adjusted EBITDA
|
$
|
61.4
|
|
|
$
|
42.8
|
|
|
$
|
238.0
|
|
|
$
|
207.9
|
|
Specialty products
segment sales
|
$
|
283.4
|
|
|
$
|
301.7
|
|
|
$
|
1,124.3
|
|
|
$
|
1,354.1
|
|
Specialty products
segment Adjusted EBITDA margin
|
21.7
|
%
|
|
14.2
|
%
|
|
21.2
|
%
|
|
15.4
|
%
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
NON-GAAP
RECONCILIATION OF
|
NET LOSS TO
ADJUSTED NET LOSS
|
(In
millions)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net Loss to Adjusted Net Loss
|
(Unaudited)
|
Net loss
|
$
|
(82.1)
|
|
|
$
|
(38.6)
|
|
|
$
|
(149.0)
|
|
|
$
|
(43.6)
|
|
Add:
|
|
|
|
|
|
|
|
LCM inventory (gain)
loss adjustments
|
(11.5)
|
|
|
3.0
|
|
|
24.0
|
|
|
(35.8)
|
|
LIFO inventory layer
(gain) loss adjustments
|
4.5
|
|
|
(6.9)
|
|
|
4.5
|
|
|
(6.0)
|
|
Unrealized (gain) loss
on derivative instruments
|
18.4
|
|
|
5.9
|
|
|
(2.8)
|
|
|
26.1
|
|
Loss from debt
extinguishment
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.2
|
|
Loss on impairment and
disposal of assets
|
0.1
|
|
|
5.9
|
|
|
6.8
|
|
|
37.0
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
(Gain) loss on sale of
business, net
|
(1.0)
|
|
|
8.7
|
|
|
(1.0)
|
|
|
8.7
|
|
Other non-recurring
(income) expenses
|
(1.9)
|
|
|
2.2
|
|
|
2.4
|
|
|
3.5
|
|
Equity based
compensation and other items
|
3.7
|
|
|
1.3
|
|
|
9.9
|
|
|
7.4
|
|
Adjusted net
loss
|
$
|
(69.8)
|
|
|
$
|
(15.6)
|
|
|
$
|
(105.2)
|
|
|
$
|
(1.7)
|
|
|
|
|
|
|
|
|
|
Adjusted net loss per
unit
|
$
|
(0.89)
|
|
|
$
|
(0.20)
|
|
|
$
|
(1.34)
|
|
|
$
|
(0.02)
|
|
|
|
|
|
|
|
|
|
Average limited
partner units - basic and diluted
|
78,429,721
|
|
|
78,332,671
|
|
|
78,369,091
|
|
|
78,212,136
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
NET DEBT / LTM ADJUSTED EBITDA
|
(Dollars in
millions)
|
|
|
December
31,
|
|
2020
|
|
2019
|
Reconciliation of
Net Debt / LTM Adjusted EBITDA
|
(Unaudited)
|
Revolving Credit
Facility
|
$
|
108.0
|
|
|
$
|
—
|
|
7.625% Senior Notes
due 2022
|
150.0
|
|
|
350.0
|
|
7.75% Senior Notes
due 2023
|
325.0
|
|
|
325.0
|
|
9.25% Senior Secured
First Lien Notes due 2024
|
200.0
|
|
|
—
|
|
11.00% Senior Notes
due 2025
|
550.0
|
|
|
550.0
|
|
Finance
Leases
|
3.7
|
|
|
2.7
|
|
Other
|
2.3
|
|
|
3.8
|
|
Total Debt
|
$
|
1,339.0
|
|
|
$
|
1,231.5
|
|
|
|
|
|
Less Cash
|
$
|
109.4
|
|
|
$
|
19.1
|
|
Net Debt
|
$
|
1,229.6
|
|
|
$
|
1,212.4
|
|
|
|
|
|
LTM Adjusted
EBITDA
|
$
|
141.5
|
|
|
$
|
262.8
|
|
|
|
|
|
Net Debt / LTM
Adjusted EBITDA
|
8.7
|
x
|
|
4.6
|
x
|
View original
content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-fourth-quarter-and-year-end-2020-results-301239299.html
SOURCE Calumet Specialty Products Partners, L.P.