INDIANAPOLIS, Aug. 6, 2020
/PRNewswire/ -- Calumet Specialty Products Partners, L.P.
(NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"),
a leading independent producer of specialty hydrocarbon and fuel
products, today reported results for the second quarter ended
June 30, 2020, as follows:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
millions, except per unit data)
|
Net income
(loss)
|
$
|
3.6
|
|
|
$
|
(16.8)
|
|
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
Net income (loss) per
unit
|
$
|
0.05
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.13)
|
|
|
$
|
—
|
|
Adjusted net income
(loss)
|
$
|
(19.6)
|
|
|
$
|
11.0
|
|
|
$
|
2.8
|
|
|
$
|
5.5
|
|
Adjusted net income
(loss) per unit
|
$
|
(0.25)
|
|
|
$
|
0.14
|
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
Adjusted
EBITDA
|
$
|
41.0
|
|
|
$
|
77.0
|
|
|
$
|
124.7
|
|
|
$
|
136.7
|
|
The Partnership's $3.6 million of Net income and
$0.05 Net income per unit for the
second quarter 2020 included a $32.1 million favorable
net impact related to the non-cash lower of cost or market ("LCM")
inventory adjustments, a $0.7 million
non-cash loss on impairment and disposal of assets and a
$1.2 million unrealized hedging loss.
Excluding these and other non-cash charges, Adjusted net loss and
Adjusted net loss per unit were $(19.6) million
and $(0.25), respectively. The Partnership's $41.0 million of Adjusted EBITDA for the second
quarter 2020 excluded a $32.1 million
favorable net impact related to the non-cash LCM inventory
adjustments.
For detailed information on the non-GAAP measures presented in
this release and a reconciliation of such measures to the nearest
comparable 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
"Execution against our Specialty-focused strategy and continuing
cost discipline helped drive another solid quarter of earnings
results, as our Partnership continues to effectively manage through
the uncertainty and volatility introduced into our markets related
to the COVID-19 pandemic," said Steve
Mawer, Chief Executive Officer of Calumet. "Our core
specialty business demonstrated resilience as the consumer-facing
business units continued to drive profitability and margin
improvement, despite the deepened macro challenges in the quarter,
evidenced by gross profit per barrel results of $46.86 which was an improvement of 49% compared
to the first quarter of 2020. Adjusted gross profit per barrel
results were $44.52 in the second
quarter 2020, an increase of nearly 8% relative to the first
quarter of 2020. Additionally, our commercial excellence
initiatives, which have catalyzed strong sales volume growth in our
consumer-facing specialty businesses continue to capture expanded
margin performance, as Adjusted EBITDA margins grew by 440 basis
points versus the sequential quarter. Our Fuels business operated
well across the period, particularly the Great Falls refinery,
delivering positive Adjusted EBITDA despite the pandemic-related,
unprecedented demand degradation in transportation fuels markets
and the weak crack spreads seen across the quarter."
Mawer added, "While the global pandemic has negatively impacted
demand across a number of Calumet's end markets, the diversity of
both our business and our customer base allowed us to drive quality
results this quarter, and has proven the resilience of our
businesses. As expected, we observed a general softening of demand
in April, with sales volumes initially declining before troughing
in May as the global pandemic negatively impacted industrial and
commodity markets. Since then, we have observed broader incremental
improvement to demand, and as sales volumes have begun rebounding,
margin performance has remained steady. Year-to-date our Adjusted
EBITDA in the Specialty segment has grown over 6% versus the prior
year, giving credence to the strategic actions we have taken to
reposition our portfolio around our consistent and defensible core
specialty business."
Mawer concluded, "As we look forward towards the second half of
the year, we will continue to prioritize the health and safety of
our team, our customers and our communities. We remain steadfast in
our commitment to our strategic goals, with a continued emphasis on
managing our business for positive cash flow from operations, and
improving the Partnership's balance sheet, leverage metrics, and
enhancing our liquidity. While the demand landscape remains fluid,
it appears to be improving, and we believe our business will
continue to demonstrate resilience."
Specialty Products Segment | Results Summary
|
Three Months Ended
June 30,
|
|
2020
|
|
2019
|
|
(Dollars in
millions, except per barrel data)
|
Gross profit
|
$
|
84.2
|
|
|
$
|
82.0
|
|
Adjusted gross
profit
|
$
|
80.0
|
|
|
$
|
82.4
|
|
Adjusted
EBITDA
|
$
|
56.1
|
|
|
$
|
55.1
|
|
Gross profit per
barrel
|
$
|
46.86
|
|
|
$
|
36.59
|
|
Adjusted gross profit
per barrel
|
$
|
44.52
|
|
|
$
|
36.77
|
|
Adjusted EBITDA
Margin
|
24.1
|
%
|
|
16.0
|
%
|
During the second quarter, the Specialty products segment gross
profit was $84.2 million compared to
$82.0 million in the year-ago period.
The Specialty products segment Adjusted EBITDA of $56.1 million improved 1.8% versus the prior year
period, while adjusted gross profit of $80.0
million, declined 2.9% compared to the second quarter of
2019. Adjusted EBITDA was impacted by softening demand due to the
pandemic, but these headwinds were largely offset from stronger
margins in both the specialty oils and waxes businesses and the
Finished Lubricants and Chemicals business. Continued focus on cost
improvements in fixed operating, transportation, and SG&A
contributed to the year-over-year improvement. Specialty products
segment adjusted gross profit per barrel was $44.52, up 7.7% compared to the first quarter of
2020, driven by improved sales mix and contributions from the
profitability plans implemented in the year prior. Adjusted EBITDA
Margin was 24.1%, up 440 basis points compared to the first quarter
of 2020, driven largely by sales mix enrichment efforts and sales
volume growth in consumer specialties products, particularly
Finished Lubricants and Chemicals as well as specialty oils and
waxes.
Fuel Products Segment | Results Summary
|
Three Months Ended
June 30,
|
|
2020
|
|
2019
|
|
(Dollars in
millions, except per barrel data)
|
Gross profit
|
$
|
5.1
|
|
|
$
|
25.1
|
|
Adjusted gross
profit
|
$
|
(22.8)
|
|
|
$
|
22.1
|
|
Adjusted
EBITDA
|
$
|
1.9
|
|
|
$
|
50.2
|
|
Gross profit per
barrel
|
$
|
0.83
|
|
|
$
|
3.52
|
|
Adjusted gross profit
per barrel
|
$
|
(3.69)
|
|
|
$
|
3.10
|
|
During the second quarter, Fuel products segment gross profit
was $5.1 million, compared to
$25.1 million in the year-ago
period. Fuels products adjusted gross profit and Adjusted
EBITDA of $(22.8) million and
$1.9 million, respectively, were down
significantly compared to the year-ago period driven by the
significant decline in crack spreads and tightening crude
differentials versus the prior year. In particular, the average
WCS/WTI crude differential tightened by $10.37 per barrel compared to the first quarter
of 2020, which was the primary driver of the material declines in
gross profit per barrel and Adjusted gross profit per barrel
performance across the quarter. Additionally, RINs costs increased
during the quarter, negatively impacting segment gross profit and
Adjusted EBITDA results. These increased compliance costs were
partially offset by the improved operational results stemming from
the Partnership's operations improvement initiatives, which have
improved capacity utilization and helped sustain profitability
despite headwinds in the transportation fuels market.
Partnership Liquidity
As of June 30, 2020, the Partnership had total liquidity of
$249.0 million, comprised of
$105.4 million of cash and
$143.6 million of availability under
the revolving credit facility. As of June 30, 2020, Calumet
had a $279.2 million borrowing base,
$25.3 million in outstanding standby
letters of credit and $110.3 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.
Full-Year 2020 Capital Spending Forecast
Through the second quarter of 2020, total capital spending,
including turnaround investments, was $36.8
million. For the full-year 2020, the Partnership continues
to expect to incur capital expenditures of approximately
$50.0 million to $60.0 million, which reflects our previously
announced reduction in expected capital expenditures for 2020 due
to increased volatility with domestic and global demand resulting
from the ongoing COVID-19 pandemic.
Operations Summary
The following table sets forth information about the
Partnership's combined 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 the Partnership's fuel
products segment.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
bpd)
|
Total sales
volume (1)
|
87,648
|
|
|
102,923
|
|
|
89,896
|
|
|
105,961
|
|
Total feedstock runs
(2)
|
82,768
|
|
|
104,415
|
|
|
87,035
|
|
|
104,921
|
|
Facility production:
(3)
|
|
|
|
|
|
|
|
Specialty
products:
|
|
|
|
|
|
|
|
Lubricating
oils
|
8,636
|
|
|
11,327
|
|
|
9,438
|
|
|
11,839
|
|
Solvents
|
6,373
|
|
|
7,317
|
|
|
6,590
|
|
|
7,624
|
|
Waxes
|
1,290
|
|
|
1,427
|
|
|
1,280
|
|
|
1,403
|
|
Packaged and
synthetic specialty products (4)
|
1,359
|
|
|
1,747
|
|
|
1,382
|
|
|
1,810
|
|
Other
|
984
|
|
|
1,660
|
|
|
2,232
|
|
|
1,417
|
|
Total
|
18,642
|
|
|
23,478
|
|
|
20,922
|
|
|
24,093
|
|
|
|
|
|
|
|
|
|
Fuel
products:
|
|
|
|
|
|
|
|
Gasoline
|
17,758
|
|
|
23,245
|
|
|
18,769
|
|
|
23,924
|
|
Diesel
|
26,104
|
|
|
28,233
|
|
|
26,001
|
|
|
29,349
|
|
Jet fuel
|
2,905
|
|
|
5,517
|
|
|
3,355
|
|
|
4,081
|
|
Asphalt, heavy fuel
oils and other
|
14,820
|
|
|
21,484
|
|
|
15,016
|
|
|
20,413
|
|
Total
|
61,587
|
|
|
78,479
|
|
|
63,141
|
|
|
77,767
|
|
Total facility
production (3)
|
80,229
|
|
|
101,957
|
|
|
84,063
|
|
|
101,860
|
|
|
|
(1)
|
Total sales volume
includes sales from the production at the Partnership's 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 includes the sale
of purchased fuel product blendstocks, such as ethanol and
biodiesel, as components of finished fuel products in the
Partnership's fuel products segment sales.
|
|
The decrease in total
sales volume for the three and six months ended June 30, 2020,
as compared to the same periods in 2019, is due primarily to the
sale of the San Antonio refinery, the terminated third-party
naphthenic lubricating oil production arrangement.
|
|
|
(2)
|
Total feedstock runs
represent the barrels per day ("bpd") of crude oil and other
feedstocks processed at the Partnership's facilities and at certain
third-party facilities pursuant to supply and/or processing
agreements.
|
|
|
|
The decrease in total
feedstock runs for the three and six months ended June 30,
2020, as compared to the same periods in 2019, is due primarily to
the sale of the San Antonio refinery, the terminated third-party
naphthenic lubricating oil production arrangement, and softened
demanded due to the COVID-19 pandemic.
|
|
|
(3)
|
Total facility
production represents the barrels per day of specialty products and
fuel products yielded from processing crude oil and other
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 production of finished products and volume loss.
|
|
|
|
The change in total
facility production for the three and six months ended
June 30, 2020, as compared to the same period in 2019, is due
primarily to the items discussed above.
|
|
|
(4)
|
Represents production
of finished lubricants and chemicals specialty products including
the products from the Royal Purple, Bel-Ray and Calumet Packaging
facilities.
|
Webcast Information
A conference call is scheduled for 9:30
a.m. ET on August 6, 2020 to discuss the financial and
operational results for the second 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 4164316. 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 "believe,"
"expect," "anticipate," "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 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,
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 acquisitions or dispositions. 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 our actual results to differ materially from those in
the forward-looking statements are those described in (i) Part I,
Item 1A "Risk Factors" and Part II, Item 7A
"Quantitative and Qualitative Disclosures About Market
Risk" in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2019 and (ii) Part I, Item 3 "Quantitative
and Qualitative Disclosures About Market Risk" and Part II, Item 1A
"Risk Factors" in our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020.
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 the other cautionary statements in
our latest Annual Report on Form 10-K and Quarterly Reports on Form
10-Q.
We have based our forward-looking statements on our current
expectations, estimates and projections about our business and
industry. We caution that these statements are not guarantees of
future performance and you should not rely unduly on them, as they
involve risks, uncertainties, and assumptions that we cannot
predict. In addition, we have based many of these forward-looking
statements on assumptions about future events that may prove to be
inaccurate. While our management considers these assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. Accordingly, our actual results
may differ materially from the future performance that we have
expressed or forecast in our forward-looking statements. 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, except to
the extent required by applicable law.
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 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 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),
income (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 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 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 (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: We define Fuel
products segment Adjusted gross profit for any period as Fuel
products segment gross profit 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
capital 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"), 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
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 should not be considered alternatives to Net
income (loss), Operating income (loss), Net cash provided by (used
in) operating activities, gross profit 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
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 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 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 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 to segment
gross profit, our most directly comparable GAAP financial
performance measure.
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In millions, except unit and
per unit data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Sales
|
$
|
453.7
|
|
|
$
|
896.9
|
|
|
$
|
1,146.3
|
|
|
$
|
1,748.2
|
|
Cost of
sales
|
364.4
|
|
|
789.8
|
|
|
1,002.7
|
|
|
1,505.1
|
|
Gross
profit
|
89.3
|
|
|
107.1
|
|
|
143.6
|
|
|
243.1
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Selling
|
12.6
|
|
|
14.3
|
|
|
25.9
|
|
|
27.6
|
|
General and
administrative
|
26.8
|
|
|
37.8
|
|
|
47.0
|
|
|
72.7
|
|
Transportation
|
24.8
|
|
|
31.6
|
|
|
55.6
|
|
|
67.5
|
|
(Benefit) expense for
taxes other than income taxes
|
(2.7)
|
|
|
4.7
|
|
|
2.3
|
|
|
9.8
|
|
Loss on impairment
and disposal of assets
|
0.7
|
|
|
16.2
|
|
|
6.7
|
|
|
27.9
|
|
Other operating
(income) expense
|
4.2
|
|
|
(2.2)
|
|
|
7.2
|
|
|
(0.9)
|
|
Operating income
(loss)
|
22.9
|
|
|
4.7
|
|
|
(1.1)
|
|
|
38.5
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(30.6)
|
|
|
(33.1)
|
|
|
(59.9)
|
|
|
(65.4)
|
|
Gain on debt
extinguishment
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.7
|
|
Gain on derivative
instruments
|
11.3
|
|
|
10.3
|
|
|
49.8
|
|
|
19.4
|
|
Other
|
0.2
|
|
|
1.3
|
|
|
1.1
|
|
|
6.6
|
|
Total other
expense
|
(19.1)
|
|
|
(21.2)
|
|
|
(9.0)
|
|
|
(38.7)
|
|
Net income (loss)
before income taxes
|
3.8
|
|
|
(16.5)
|
|
|
(10.1)
|
|
|
(0.2)
|
|
Income tax
expense
|
0.2
|
|
|
0.3
|
|
|
0.7
|
|
|
0.2
|
|
Net income
(loss)
|
$
|
3.6
|
|
|
$
|
(16.8)
|
|
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
Allocation of net
income (loss):
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
3.6
|
|
|
$
|
(16.8)
|
|
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
Less:
|
|
|
|
|
|
|
|
General partner's
interest in net income (loss)
|
0.1
|
|
|
(0.3)
|
|
|
(0.2)
|
|
|
—
|
|
Net income (loss)
available to limited partners
|
$
|
3.5
|
|
|
$
|
(16.5)
|
|
|
$
|
(10.6)
|
|
|
$
|
(0.4)
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Basic
|
78,664,183
|
|
|
78,212,837
|
|
|
78,532,405
|
|
|
78,111,857
|
|
Diluted
|
78,678,970
|
|
|
78,212,837
|
|
|
78,532,405
|
|
|
78,111,857
|
|
Limited partners'
interest basic net income (loss) per unit:
|
|
|
|
|
|
|
|
Limited partners'
interest
|
$
|
0.05
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.13)
|
|
|
$
|
—
|
|
Limited partners'
interest diluted net income (loss) per unit:
|
|
|
|
|
|
|
|
Limited partners'
interest
|
$
|
0.05
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.13)
|
|
|
$
|
—
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE
SHEETS (In millions)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
105.4
|
|
$
|
19.1
|
|
|
Accounts receivable,
net
|
141.7
|
|
175.0
|
Other
|
16.3
|
|
13.5
|
|
158.0
|
|
188.5
|
Inventories
|
240.4
|
|
292.6
|
Derivative
assets
|
19.7
|
|
0.9
|
Prepaid expenses and
other current assets
|
13.2
|
|
11.0
|
Total current
assets
|
536.7
|
|
512.1
|
Property, plant and
equipment, net
|
949.3
|
|
973.5
|
Goodwill
|
172.5
|
|
171.4
|
Other intangible
assets, net
|
64.8
|
|
71.2
|
Operating lease
right-of-use assets
|
63.1
|
|
93.1
|
Other noncurrent
assets, net
|
35.1
|
|
36.5
|
Total
assets
|
$
|
1,821.5
|
|
$
|
1,857.8
|
|
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
161.1
|
|
$
|
230.2
|
|
|
Accrued interest
payable
|
31.1
|
|
32.0
|
Accrued salaries,
wages and benefits
|
25.4
|
|
35.7
|
Other taxes
payable
|
11.4
|
|
11.8
|
Obligations under
inventory financing agreements
|
80.1
|
|
134.3
|
Other current
liabilities
|
85.4
|
|
58.6
|
Current portion of
operating lease liabilities
|
36.3
|
|
60.6
|
Current portion of
long-term debt
|
2.1
|
|
1.8
|
Total current
liabilities
|
432.9
|
|
565.0
|
Pension and
postretirement benefit obligations
|
7.5
|
|
7.9
|
Other long-term
liabilities
|
20.0
|
|
20.8
|
Long-term operating
lease liabilities
|
27.5
|
|
33.0
|
Long-term debt, less
current portion
|
1,322.7
|
|
1,209.5
|
Total
liabilities
|
1,810.6
|
|
1,836.2
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
Limited partners'
interest
|
9.9
|
|
20.2
|
General partner's
interest
|
11.8
|
|
12.0
|
Accumulated other
comprehensive loss
|
(10.8
|
|
(10.6
|
Total partners'
capital
|
10.9
|
|
21.6
|
Total liabilities and
partners' capital
|
$
|
1,821.5
|
|
$
|
1,857.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In millions)
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Operating
activities
|
|
|
|
Net loss
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
52.6
|
|
|
55.2
|
|
Amortization of
turnaround costs
|
8.7
|
|
|
10.4
|
|
Non-cash interest
expense
|
3.1
|
|
|
3.5
|
|
Gain on debt
extinguishments
|
—
|
|
|
(0.7)
|
|
Unrealized (gain)
loss on derivative instruments
|
(30.4)
|
|
|
14.8
|
|
Loss on impairment
and disposal of assets
|
6.7
|
|
|
27.9
|
|
Operating lease
expense
|
32.6
|
|
|
37.8
|
|
Operating lease
payments
|
(32.4)
|
|
|
(37.4)
|
|
Equity-based
compensation
|
0.6
|
|
|
4.6
|
|
Lower of cost or
market inventory adjustment
|
34.2
|
|
|
(41.5)
|
|
Other non-cash
activities
|
1.7
|
|
|
(3.6)
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
27.7
|
|
|
(66.6)
|
|
Inventories
|
18.1
|
|
|
40.5
|
|
Prepaid expenses and
other current assets
|
1.8
|
|
|
6.0
|
|
Derivative
activity
|
(0.3)
|
|
|
(0.3)
|
|
Turnaround
costs
|
(16.1)
|
|
|
(6.4)
|
|
Other
assets
|
—
|
|
|
0.1
|
|
Accounts
payable
|
(55.0)
|
|
|
42.9
|
|
Accrued interest
payable
|
(1.4)
|
|
|
(0.5)
|
|
Accrued salaries,
wages and benefits
|
(10.1)
|
|
|
(3.0)
|
|
Other taxes
payable
|
(0.4)
|
|
|
2.7
|
|
Other
liabilities
|
19.8
|
|
|
3.6
|
|
Pension and
postretirement benefit obligations
|
(0.3)
|
|
|
—
|
|
Net cash provided by
operating activities
|
$
|
50.4
|
|
|
$
|
89.6
|
|
Investing
activities
|
|
|
|
Additions to
property, plant and equipment
|
(28.4)
|
|
|
(17.1)
|
|
Acquisition of
business, net of cash acquired
|
(3.3)
|
|
|
—
|
|
Proceeds from sale of
unconsolidated affiliate
|
—
|
|
|
5.0
|
|
Proceeds from sale of
property, plant and equipment
|
—
|
|
|
3.7
|
|
Net cash provided by
discontinued investing activities
|
0.9
|
|
|
5.0
|
|
Net cash (used in)
investing activities
|
$
|
(30.8)
|
|
|
$
|
(3.4)
|
|
Financing
activities
|
|
|
|
Proceeds from
borrowings — revolving credit facility
|
672.7
|
|
|
—
|
|
Repayments of
borrowings — revolving credit facility
|
(562.4)
|
|
|
—
|
|
Repayments of
borrowings — senior notes
|
—
|
|
|
(88.6)
|
|
Payments on finance
lease obligations
|
(0.2)
|
|
|
(0.7)
|
|
Proceeds from
inventory financing
|
399.3
|
|
|
569.7
|
|
Payments on inventory
financing
|
(441.4)
|
|
|
(547.7)
|
|
Proceeds from other
financing obligations
|
31.4
|
|
|
—
|
|
Payments on other
financing obligations
|
(32.7)
|
|
|
(1.2)
|
|
Contributions from
Calumet GP, LLC
|
—
|
|
|
0.1
|
|
Net cash provided by
(used in) financing activities
|
$
|
66.7
|
|
|
$
|
(68.4)
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
86.3
|
|
|
$
|
17.8
|
|
Cash and cash
equivalents at beginning of period
|
19.1
|
|
|
155.7
|
|
Cash and cash
equivalents at end of period
|
$
|
105.4
|
|
|
$
|
173.5
|
|
Supplemental
disclosure of non-cash investing activities
|
|
|
|
Non-cash property,
plant and equipment additions
|
$
|
4.3
|
|
|
$
|
5.6
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. NON-GAAP
RECONCILIATIONS RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA, ADJUSTED EBITDA
AND DISTRIBUTABLE CASH FLOW (In
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash
Flow:
|
(Unaudited)
|
Net income
(loss)
|
$
|
3.6
|
|
|
$
|
(16.8)
|
|
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
Add:
|
|
|
|
|
|
|
|
Interest
expense
|
30.6
|
|
|
33.1
|
|
|
59.9
|
|
|
65.4
|
|
Depreciation and
amortization
|
26.2
|
|
|
27.0
|
|
|
52.6
|
|
|
55.2
|
|
Income tax
expense
|
0.2
|
|
|
0.3
|
|
|
0.7
|
|
|
0.2
|
|
EBITDA
|
$
|
60.6
|
|
|
$
|
43.6
|
|
|
$
|
102.4
|
|
|
$
|
120.4
|
|
Add:
|
|
|
|
|
|
|
|
LCM / LIFO (gain)
loss
|
$
|
(32.1)
|
|
|
$
|
(2.6)
|
|
|
$
|
34.4
|
|
|
$
|
(40.6)
|
|
Unrealized (gain)
loss on derivative instruments
|
1.2
|
|
|
12.2
|
|
|
(30.4)
|
|
|
14.8
|
|
Amortization of
turnaround costs
|
3.6
|
|
|
5.6
|
|
|
8.7
|
|
|
10.4
|
|
Gain from debt
extinguishment
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.7)
|
|
Loss on impairment
and disposal of assets
|
0.7
|
|
|
16.2
|
|
|
6.7
|
|
|
27.9
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
Equity-based
compensation and other items
|
7.0
|
|
|
2.3
|
|
|
4.1
|
|
|
5.7
|
|
Other non-recurring
income
|
—
|
|
|
—
|
|
|
(1.2)
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
41.0
|
|
|
$
|
77.0
|
|
|
$
|
124.7
|
|
|
$
|
136.7
|
|
Less:
|
|
|
|
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
$
|
5.1
|
|
|
$
|
7.4
|
|
|
$
|
12.3
|
|
|
$
|
13.6
|
|
Cash interest expense
(2)
|
29.0
|
|
|
31.5
|
|
|
56.8
|
|
|
61.9
|
|
Turnaround
costs
|
6.3
|
|
|
4.7
|
|
|
16.1
|
|
|
6.4
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
Income tax
expense
|
0.2
|
|
|
0.3
|
|
|
0.7
|
|
|
0.2
|
|
Distributable Cash
Flow
|
$
|
0.4
|
|
|
$
|
33.1
|
|
|
$
|
38.8
|
|
|
$
|
50.8
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. RECONCILIATION OF DISTRIBUTABLE
CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED
BY OPERATING ACTIVITIES (In
millions)
|
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
Reconciliation of
Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash
provided by operating activities:
|
(Unaudited)
|
Distributable Cash
Flow
|
$
|
38.8
|
|
|
$
|
50.8
|
|
Add:
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
12.3
|
|
|
13.6
|
|
Cash interest expense
(2)
|
56.8
|
|
|
61.9
|
|
Turnaround
costs
|
16.1
|
|
|
6.4
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
3.8
|
|
Income tax
expense
|
0.7
|
|
|
0.2
|
|
Adjusted
EBITDA
|
$
|
124.7
|
|
|
$
|
136.7
|
|
Less:
|
|
|
|
LCM / LIFO (gain)
loss
|
$
|
34.4
|
|
|
$
|
(40.6)
|
|
Unrealized (gain)
loss on derivative instruments
|
(30.4)
|
|
|
14.8
|
|
Amortization of
turnaround costs
|
8.7
|
|
|
10.4
|
|
Gain on debt
extinguishment
|
—
|
|
|
(0.7)
|
|
Loss on impairment
and disposal of assets
|
6.7
|
|
|
27.9
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
(1.2)
|
|
Equity-based
compensation and other items
|
4.1
|
|
|
5.7
|
|
Other non-recurring
income
|
(1.2)
|
|
|
—
|
|
EBITDA
|
$
|
102.4
|
|
|
$
|
120.4
|
|
Add:
|
|
|
|
Unrealized (gain)
loss on derivative instruments
|
$
|
(30.4)
|
|
|
$
|
14.8
|
|
Cash interest expense
(2)
|
(56.8)
|
|
|
(61.9)
|
|
Other non-recurring
income
|
(1.2)
|
|
|
—
|
|
Equity-based
compensation
|
0.6
|
|
|
4.6
|
|
Lower of cost or
market inventory adjustment
|
34.2
|
|
|
(41.5)
|
|
Gain from
unconsolidated affiliates
|
—
|
|
|
(3.8)
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
(1.2)
|
|
Amortization of
turnaround costs
|
8.7
|
|
|
10.4
|
|
Gain on debt
extinguishment
|
—
|
|
|
(0.7)
|
|
Operating lease
expense
|
32.6
|
|
|
37.8
|
|
Operating lease
payments
|
(32.4)
|
|
|
(37.4)
|
|
Loss on impairment
and disposal of assets
|
6.7
|
|
|
27.9
|
|
Income tax
expense
|
(0.7)
|
|
|
(0.2)
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
27.7
|
|
|
(66.6)
|
|
Inventories
|
18.1
|
|
|
40.5
|
|
Other current
assets
|
1.8
|
|
|
6.0
|
|
Derivative
activity
|
(0.3)
|
|
|
(0.3)
|
|
Turnaround
costs
|
(16.1)
|
|
|
(6.4)
|
|
Other
assets
|
—
|
|
|
0.1
|
|
Accounts
payable
|
(55.0)
|
|
|
42.9
|
|
Accrued interest
payable
|
(1.4)
|
|
|
(0.5)
|
|
Other
liabilities
|
9.3
|
|
|
3.3
|
|
Other
|
2.6
|
|
|
1.4
|
|
Net cash provided by
operating activities
|
$
|
50.4
|
|
|
$
|
89.6
|
|
|
|
(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. RECONCILIATION OF SEGMENT
ADJUSTED EBITDA TO NET INCOME (LOSS) (In
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In
millions)
|
Reconciliation of
Adjusted EBITDA to EBITDA and Net income (loss):
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA
|
|
|
|
|
|
|
|
Specialty products
Adjusted EBITDA
|
$
|
56.1
|
|
|
$
|
55.1
|
|
|
$
|
120.6
|
|
|
$
|
113.5
|
|
Fuel products
Adjusted EBITDA
|
1.9
|
|
|
50.2
|
|
|
41.1
|
|
|
76.1
|
|
Corporate Adjusted
EBITDA
|
(17.0)
|
|
|
(28.3)
|
|
|
(37.0)
|
|
|
(52.9)
|
|
Total Adjusted
EBITDA
|
$
|
41.0
|
|
|
$
|
77.0
|
|
|
$
|
124.7
|
|
|
$
|
136.7
|
|
Less:
|
|
|
|
|
|
|
|
LCM / LIFO (gain)
loss
|
$
|
(32.1)
|
|
|
$
|
(2.6)
|
|
|
$
|
34.4
|
|
|
$
|
(40.6)
|
|
Unrealized (gain)
loss on derivative instruments
|
1.2
|
|
|
12.2
|
|
|
(30.4)
|
|
|
14.8
|
|
Amortization of
turnaround costs
|
3.6
|
|
|
5.6
|
|
|
8.7
|
|
|
10.4
|
|
Gain on debt
extinguishment
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.7)
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
Loss on impairment
and disposal of assets
|
0.7
|
|
|
16.2
|
|
|
6.7
|
|
|
27.9
|
|
Equity-based
compensation and other items
|
7.0
|
|
|
2.3
|
|
|
4.1
|
|
|
5.7
|
|
Other non-recurring
income
|
—
|
|
|
—
|
|
|
(1.2)
|
|
|
—
|
|
EBITDA
|
$
|
60.6
|
|
|
$
|
43.6
|
|
|
$
|
102.4
|
|
|
$
|
120.4
|
|
Less:
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
30.6
|
|
|
$
|
33.1
|
|
|
$
|
59.9
|
|
|
$
|
65.4
|
|
Depreciation and
amortization
|
26.2
|
|
|
27.0
|
|
|
52.6
|
|
|
55.2
|
|
Income tax (benefit)
expense
|
0.2
|
|
|
0.3
|
|
|
0.7
|
|
|
0.2
|
|
Net income
(loss)
|
$
|
3.6
|
|
|
$
|
(16.8)
|
|
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT METRICS
EXCLUDING LCM/LIFO (In millions, except per barrel
data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Segment Metrics Excluding LCM/LIFO:
|
(Unaudited)
|
Specialty products
segment gross profit
|
$
|
84.2
|
|
|
$
|
82.0
|
|
|
$
|
154.4
|
|
|
$
|
174.9
|
|
LCM inventory
adjustments
|
(4.2)
|
|
|
0.4
|
|
|
18.0
|
|
|
(6.2)
|
|
LIFO inventory layer
adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Specialty products
segment Adjusted gross profit
|
$
|
80.0
|
|
|
$
|
82.4
|
|
|
$
|
172.4
|
|
|
$
|
169.6
|
|
|
|
|
|
|
|
|
|
Fuel products segment
gross profit
|
$
|
5.1
|
|
|
$
|
25.1
|
|
|
$
|
(10.8)
|
|
|
$
|
68.2
|
|
LCM inventory
adjustments
|
(27.9)
|
|
|
(3.0)
|
|
|
16.4
|
|
|
(35.3)
|
|
Fuel products segment
Adjusted gross profit
|
$
|
(22.8)
|
|
|
$
|
22.1
|
|
|
$
|
5.6
|
|
|
$
|
32.9
|
|
|
|
|
|
|
|
|
|
Reported Specialty
products segment gross profit per barrel
|
$
|
46.86
|
|
|
$
|
36.59
|
|
|
$
|
38.34
|
|
|
$
|
37.36
|
|
LCM/LIFO inventory
adjustments per barrel
|
(2.34)
|
|
|
0.18
|
|
|
4.47
|
|
|
(1.13)
|
|
Specialty products
segment Adjusted gross profit per barrel
|
$
|
44.52
|
|
|
$
|
36.77
|
|
|
$
|
42.81
|
|
|
$
|
36.23
|
|
|
|
|
|
|
|
|
|
Reported Fuel
products segment gross profit per barrel
|
$
|
0.83
|
|
|
$
|
3.52
|
|
|
$
|
(0.88)
|
|
|
$
|
4.70
|
|
LCM/LIFO inventory
adjustments per barrel
|
(4.52)
|
|
|
(0.42)
|
|
|
1.33
|
|
|
(2.43)
|
|
Fuel products segment
Adjusted gross profit per barrel
|
$
|
(3.69)
|
|
|
$
|
3.10
|
|
|
$
|
0.45
|
|
|
$
|
2.27
|
|
|
|
|
|
|
|
|
|
Specialty products
Adjusted EBITDA
|
$
|
56.1
|
|
|
$
|
55.1
|
|
|
$
|
120.6
|
|
|
$
|
113.5
|
|
Specialty products
sales
|
232.7
|
|
|
344.4
|
|
|
559.6
|
|
|
696.6
|
|
Specialty products
Adjusted EBITDA margin
|
24.1
|
%
|
|
16.0
|
%
|
|
21.6
|
%
|
|
16.3
|
%
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET INCOME
(LOSS) TO ADJUSTED NET INCOME (In millions, except per
unit data)
|
|
|
Three Months Ended
June 30,
|
|
Six months ended
June 30, 2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss)
|
(Unaudited)
|
Net income
(loss)
|
$
|
3.6
|
|
|
$
|
(16.8)
|
|
|
$
|
(10.8)
|
|
|
$
|
(0.4)
|
|
Add:
|
|
|
|
|
|
|
|
LCM inventory
adjustments
|
(32.1)
|
|
|
(2.6)
|
|
|
34.4
|
|
|
(41.5)
|
|
LIFO inventory layer
adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
Unrealized (gain)
loss on derivative instruments
|
1.2
|
|
|
12.2
|
|
|
(30.4)
|
|
|
14.8
|
|
Gain from debt
extinguishment
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(0.7)
|
|
Gain on sale of
unconsolidated affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2)
|
|
Loss on impairment
and disposal of assets
|
0.7
|
|
|
16.2
|
|
|
6.7
|
|
|
27.9
|
|
Other non-recurring
income
|
—
|
|
|
—
|
|
|
(1.2)
|
|
|
—
|
|
Equity based
compensation and other non-cash items
|
7.0
|
|
|
2.3
|
|
|
4.1
|
|
|
5.7
|
|
Adjusted net income
(loss)
|
$
|
(19.6)
|
|
|
$
|
11.0
|
|
|
$
|
2.8
|
|
|
$
|
5.5
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per unit
|
$
|
(0.25)
|
|
|
$
|
0.14
|
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
Average limited
partner units - diluted
|
78,678,970
|
|
|
78,212,837
|
|
|
78,532,405
|
|
|
78,111,857
|
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET DEBT / LTM
ADJUSTED EBITDA (Dollars in millions)
|
|
|
June
30,
|
|
2020
|
|
2019
|
Reconciliation of
Net Debt / LTM Adjusted EBITDA
|
(Unaudited)
|
Revolving Credit
Facility
|
$
|
110.3
|
|
|
$
|
—
|
|
6.50% Senior Notes
due 2021
|
—
|
|
|
810.2
|
|
7.625% Senior Notes
due 2022
|
350.0
|
|
|
350.0
|
|
7.75% Senior Notes
due 2023
|
325.0
|
|
|
325.0
|
|
11.00% Senior Notes
due 2025
|
550.0
|
|
|
—
|
|
Finance
Leases
|
3.9
|
|
|
3.0
|
|
Other
|
3.0
|
|
|
4.5
|
|
Total Debt
|
$
|
1,342.2
|
|
|
$
|
1,492.7
|
|
|
|
|
|
Less Cash
|
$
|
105.4
|
|
|
$
|
173.5
|
|
Net Debt
|
$
|
1,236.8
|
|
|
$
|
1,319.2
|
|
|
|
|
|
LTM Adjusted
EBITDA
|
$
|
250.8
|
|
|
$
|
300.7
|
|
|
|
|
|
Net Debt / LTM
Adjusted EBITDA
|
4.9
|
x
|
|
4.4
|
x
|
View original
content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-second-quarter-2020-results-301107548.html
SOURCE Calumet Specialty Products Partners, L.P.