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INDIANAPOLIS, Nov. 9, 2022 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), today reported results for the third quarter ended September 30, 2022, as follows:
Three Months Ended September 30, | Nine months ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(Dollars in millions, except per unit data) | |||||||
Net income (loss) attributable to partners | $ 15.7 | $ 51.5 | $ (95.1) | $ (173.0) | |||
Net income (loss) per unit | $ 0.19 | $ 0.64 | $ (1.18) | $ (2.15) | |||
Adjusted EBITDA | $ 127.0 | $ 58.8 | $ 326.1 | $ 85.7 |
Specialty Products and Solutions | Performance Brands | Montana/Renewables | |||||||||
Three months ended September 30, | Three months ended September 30, | Three months ended September 30, | |||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||
(Dollars in millions, except per barrel data) | |||||||||||
Gross profit (loss) | $ 123.4 | $ 74.0 | $ 17.0 | $ 16.6 | $ (1.1) | $ 42.7 | |||||
Adjusted gross profit | $ 149.4 | $ 52.9 | $ 17.4 | $ 14.4 | $ 11.7 | $ 26.1 | |||||
Adjusted EBITDA | $ 131.7 | $ 46.3 | $ 8.5 | $ 6.8 | $ 11.3 | $ 24.4 | |||||
Gross profit (loss) per barrel | $ 21.65 | $ 15.30 | $ 139.34 | $ 137.19 | $ (0.96) | $ 16.03 | |||||
Adjusted gross profit per barrel | $ 26.22 | $ 10.94 | $ 142.62 | $ 119.01 | $ 10.17 | $ 9.80 |
Specialty Products and Solutions | Performance Brands | Montana/Renewables | |||||||||
Nine months ended September 30, | Nine months ended September 30, | Nine months ended September 30, | |||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||
(Dollars in millions, except per barrel data) | |||||||||||
Gross profit | $ 229.2 | $ 43.4 | $ 44.5 | $ 56.5 | $ 42.2 | $ 10.5 | |||||
Adjusted gross profit | $ 328.8 | $ 95.4 | $ 45.9 | $ 55.2 | $ 97.6 | $ 41.5 | |||||
Adjusted EBITDA | $ 283.3 | $ 75.9 | $ 17.5 | $ 30.1 | $ 88.9 | $ 35.2 | |||||
Gross profit per barrel | $ 13.63 | $ 3.20 | $ 112.09 | $ 143.04 | $ 6.78 | $ 1.35 | |||||
Adjusted gross profit per barrel | $ 19.55 | $ 7.04 | $ 115.62 | $ 139.75 | $ 15.69 | $ 5.35 |
"Calumet made tremendous strategic strides and executed exceptionally well during the third quarter," said Todd Borgmann, CEO.
"During the quarter, Montana Renewables announced our partnership with Warburg Pincus, a world-renowned investor with particular expertise in scaling advantaged businesses through their de-carbonization platform. Further, we added the capability to produce Sustainable Aviation Fuel. Montana Renewables will be the largest SAF producer in North America early in 2023, and the material has been fully contracted through an oversubscribed process. Since quarter end, we've completed the planned Great Falls turnaround, commissioned our renewable diesel plant, and closed two transactions that fund MRL's working capital. The foundation of Montana Renewables has been set, and we believe this platform is positioned as a leading independent SAF and Renewable Diesel business."
Specialty Products and Solutions (SPS): The SPS segment reported Adjusted EBITDA of $131.7 million, compared to Adjusted EBITDA of $46.3 million for the same quarter a year ago. Both Specialty and Fuels margins were significantly higher during the third quarter than the prior year quarter. Comparing the same time periods, SPS production volume increased 31.6%.
Montana / Renewables (MR): The MR segment reported $11.3 million of Adjusted EBITDA, compared to Adjusted EBITDA of $24.4 million for the same quarter a year ago. The year-over-year variance is primarily a result of lower production volumes due to the turnaround activity during this quarter. As a result, production volumes of 9,415 bpd were below the 27,143 bpd produced in the third quarter of 2021.
Performance Brands (PB): The PB segment reported Adjusted EBITDA of $8.5 million, compared to Adjusted EBITDA of $6.8 million for the same quarter a year ago. Third quarter results improved from the same quarter last year as price increases announced earlier in prior periods have taken hold and raw material costs have started to stabilize.
Corporate: Total corporate costs are represented as a loss of $24.5 million of Adjusted EBITDA, compared to a loss of $18.7 million of Adjusted EBITDA for the same quarter of 2021.
Operations SummaryThe following table sets forth information about the Partnership's continuing operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased blendstocks such as ethanol and specialty blendstocks, as well as the resale of crude oil.
Three Months Ended September 30, | Nine months ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(In bpd) | |||||||
Total sales volume (1) | 75,789 | 82,844 | 85,859 | 79,511 | |||
Total feedstock runs (2) | 75,722 | 80,021 | 84,133 | 73,988 | |||
Facility production: (3) | |||||||
Specialty Products and Solutions: | |||||||
Lubricating oils | 11,681 | 10,817 | 11,039 | 9,537 | |||
Solvents | 7,134 | 7,163 | 6,963 | 6,832 | |||
Waxes | 1,611 | 1,529 | 1,445 | 1,305 | |||
Fuels, asphalt and other by-products | 43,716 | 29,242 | 41,043 | 25,492 | |||
Total Specialty Products and Solutions | 64,142 | 48,751 | 60,490 | 43,166 | |||
Montana/Renewables: | |||||||
Gasoline | 1,675 | 4,763 | 3,672 | 4,979 | |||
Diesel | 3,396 | 10,328 | 7,997 | 10,147 | |||
Jet fuel | 714 | 1,169 | 880 | 974 | |||
Asphalt, heavy fuel oils and other | 3,630 | 10,883 | 8,165 | 11,035 | |||
Total Montana/Renewables | 9,415 | 27,143 | 20,714 | 27,135 | |||
Performance Brands | 1,299 | 1,226 | 1,510 | 1,355 | |||
Total facility production (3) | 74,856 | 77,120 | 82,714 | 71,656 |
_________________ | |
(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 includes the sale of purchased blendstocks. |
(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. |
(3) | 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. |
A conference call is scheduled for 9:00 a.m. ET on November 9, 2022 to discuss the financial and operational results for the third quarter of 2022. 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 www.calumetspecialty.investorroom.com/events. Interested parties may also participate in the call by registering at the following link https://register.vevent.com/register/BI35c62c4dd54a4193a58903443c054a1b. 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 PartnershipCalumet Specialty Products Partners, L.P. (NASDAQ: CLMT) manufactures, formulates, and markets a diversified slate of specialty products to customers in a broad range of consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.
Cautionary Statement Regarding Forward-Looking StatementsCertain statements and information in this press release may constitute "forward-looking statements." The words "will," "may," "intend," "believe," "expect," "outlook," "forecast," "anticipate," "estimate," "continue," "plan," "should," "could," "would," 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, supply chain disruptions and global energy shortage on our business and operations, (ii) demand for finished products in markets we serve, (iii) our expectation regarding our business outlook and cash flows, including with respect to the Montana Renewables business and our plans to de-leverage our balance sheet, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, (v) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures and (vi) our ability to convert a significant portion of our Great Falls refinery into a renewable diesel manufacturing facility. 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 current 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 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 fuel products that meet our customers' unique and precise specifications; the marketing of alternative and competing products; 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 renewable identification numbers ("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, business or political conditions, including inflationary pressures, general economic slowdown or a recession, political tensions, conflicts and war (such as the ongoing conflict in Ukraine and its regional and global ramifications).
For additional information regarding 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 risk factors and other cautionary statements in our latest Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC.
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. Certain public statements made by us and our representatives on the date hereof may also contain forward-looking statements, which are qualified in their entirety by the cautionary statements contained above.
Non-GAAP Financial MeasuresOur 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 generally accepted accounting principles ("GAAP"). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance measures along with certain key operating metrics.
We use the following financial performance measures:
EBITDA: We define EBITDA for any period as net income (loss) attributable to partners plus interest expense (including amortization of debt issuance costs), income taxes and depreciation and amortization. Historically, we considered net income (loss) to be the most directly comparable GAAP measure to EBITDA. Commencing with the third quarter of 2022, we reported net loss attributable to noncontrolling interest related to the preferred equity investment from Warburg Pincus in the Montana Renewables business. As a result of this change, we believe net income (loss) attributable to partners is the most directly comparable GAAP measure to EBITDA.
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) attributable to partners; (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) attributable to partners; (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss) attributable to partners; (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; and (k) 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).
Specialty Products and Solutions segment Adjusted EBITDA Margin: We define Specialty Products and Solutions segment Adjusted EBITDA Margin for any period as Specialty Products and Solutions segment Adjusted EBITDA divided by Specialty Products and Solutions segment sales.
Specialty Products and Solutions segment Adjusted gross profit (loss): We define Specialty Products and Solutions segment Adjusted gross profit (loss) for any period as Specialty Products and Solutions segment gross profit (loss) excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; and (d) depreciation and amortization.
Performance Brands segment Adjusted gross profit (loss): We define Performance Brands segment Adjusted gross profit (loss) for any period as Performance Brands segment gross profit (loss) excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; and (d) depreciation and amortization.
Montana/Renewables segment Adjusted gross profit (loss): We define Montana/Renewables segment Adjusted gross profit (loss) for any period as Montana/Renewables segment gross profit (loss) excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; and (d) depreciation and amortization.
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 9.25% senior secured first lien notes due July 15, 2024, that were issued in August 2020 (the "2024 Secured Notes"), our 11.00% senior notes due April 15, 2025, that were issued in October 2019 (the "2025 Notes"), and our 8.125% senior notes due January 15, 2027, that were issued in January 2022 (the "2027 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 2024 Secured Notes, 2025 Notes, and 2027 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, subsequent Quarterly Reports on Form 10-Q 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:
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 fund our capital requirements and to pay interest on our debt obligations. 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, and segment Adjusted gross profit (loss) should not be considered alternatives to Net income (loss), Net income (loss) attributable to partners, 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, and segment Adjusted gross profit (loss) management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our liabilities for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow, and segment Adjusted gross profit (loss) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, 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, 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, and Distributable Cash Flow to Net income (loss) attributable to partners, our most directly comparable GAAP financial performance measure; 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. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(In millions, except unit and per unit data) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(In millions, except per unit and unit data) | |||||||
(Unaudited) | |||||||
Sales | $ 1,165.0 | $ 874.9 | $ 3,686.9 | $ 2,282.2 | |||
Cost of sales | 1,025.7 | 741.6 | 3,371.0 | 2,171.8 | |||
Gross profit | 139.3 | 133.3 | 315.9 | 110.4 | |||
Operating costs and expenses: | |||||||
Selling | 11.6 | 12.4 | 40.4 | 40.0 | |||
General and administrative | 43.3 | 30.9 | 98.4 | 97.3 | |||
Other operating (income) expense | 2.5 | (3.3) | 16.8 | 20.0 | |||
Operating income (loss) | 81.9 | 93.3 | 160.3 | (46.9) | |||
Other income (expense): | |||||||
Interest expense | (41.8) | (38.2) | (136.0) | (109.3) | |||
Loss from debt extinguishment | (40.4) | — | (41.4) | (0.4) | |||
Gain (loss) on derivative instruments | 16.5 | (3.3) | (73.2) | (15.4) | |||
Other income (expense) | (0.1) | 0.1 | (3.1) | 0.5 | |||
Total other expense | (65.8) | (41.4) | (253.7) | (124.6) | |||
Net income (loss) before income taxes | 16.1 | 51.9 | (93.4) | (171.5) | |||
Income tax expense | 1.5 | 0.4 | 2.8 | 1.5 | |||
Net income (loss) | $ 14.6 | $ 51.5 | $ (96.2) | $ (173.0) | |||
Net loss attributable to noncontrolling interest | (1.1) | — | (1.1) | — | |||
Net income (loss) attributable to partners | $ 15.7 | $ 51.5 | $ (95.1) | $ (173.0) | |||
Allocation of net income (loss) to partners | |||||||
Net income (loss) attributable to partners | $ 15.7 | $ 51.5 | $ (95.1) | $ (173.0) | |||
Less: | |||||||
General partner's interest in net income (loss) | 0.3 | 1.0 | (1.9) | (3.5) | |||
Non-vested share based payments | 0.2 | — | — | — | |||
Net income (loss) attributable to limited partners | $ 15.2 | $ 50.5 | $ (93.2) | $ (169.5) | |||
Weighted average limited partner units outstanding: | |||||||
Basic | 79,384,878 | 78,924,380 | 79,277,719 | 78,831,988 | |||
Diluted | 80,461,600 | 78,971,518 | 79,277,719 | 78,831,988 | |||
Limited partners' interest basic net income (loss) per unit: | |||||||
Limited partners' interest | $ 0.19 | $ 0.64 | $ (1.18) | $ (2.15) | |||
Limited partners' interest diluted net income (loss) per unit: | |||||||
Limited partners' interest | $ 0.19 | $ 0.64 | $ (1.18) | $ (2.15) |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In millions) | |||
September 30, 2022 | December 31, 2021 | ||
(Unaudited) | |||
ASSETS | (In millions) | ||
Current assets: | |||
Cash and cash equivalents | $ 50.5 | $ 38.1 | |
Accounts receivable | |||
Trade, less allowance for credit losses of $4.8 million and $2.0 million, respectively | 294.0 | 216.8 | |
Other | 21.2 | 36.2 | |
315.2 | 253.0 | ||
Inventories | 402.2 | 326.6 | |
Prepaid expenses and other current assets | 20.6 | 14.9 | |
Total current assets | 788.5 | 632.6 | |
Property, plant and equipment, net | 1,329.4 | 949.7 | |
Restricted cash | — | 83.8 | |
Other noncurrent assets, net | 450.8 | 461.8 | |
Total assets | $ 2,568.7 | $ 2,127.9 | |
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||
Current liabilities: | |||
Accounts payable | $ 448.8 | $ 301.0 | |
Accrued interest payable | 37.1 | 27.7 | |
Accrued salaries, wages and benefits | 71.6 | 93.7 | |
Obligations under inventory financing agreements | 194.7 | 173.0 | |
Current portion of RINs obligation | 430.2 | 200.1 | |
Derivative liabilities | 20.2 | — | |
Other current liabilities | 106.3 | 96.9 | |
Current portion of long-term debt | 16.1 | 7.4 | |
Total current liabilities | 1,325.0 | 899.8 | |
Other long-term liabilities | 73.4 | 115.6 | |
Long-term RINs obligation, less current portion | — | 78.8 | |
Long-term debt, less current portion | 1,435.7 | 1,418.8 | |
Total liabilities | $ 2,834.1 | $ 2,513.0 | |
Commitments and contingencies | |||
Redeemable noncontrolling interest | $ 200.0 | $ — | |
Partners' capital (deficit): | |||
Limited partners' interest 79,189,583 units and 78,676,262 units issued and outstanding as of | $ (457.4) | $ (378.8) | |
General partner's interest | 1.9 | 3.8 | |
Accumulated other comprehensive loss | (9.9) | (10.1) | |
Total partners' capital (deficit) | (465.4) | (385.1) | |
Total liabilities and partners' capital (deficit) | $ 2,568.7 | $ 2,127.9 |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(In millions) | |||
Nine Months Ended September 30, | |||
2022 | 2021 | ||
(In millions) | |||
Operating activities | |||
Net loss | $ (96.2) | $ (173.0) | |
Non-cash RINs expense | 151.3 | 95.7 | |
Unrealized loss on derivative instruments | 47.5 | 16.5 | |
Other non-cash activities | 141.5 | 78.0 | |
Changes in assets and liabilities | (93.4) | (47.1) | |
Net cash provided by (used in) operating activities | 150.7 | (29.9) | |
Investing activities | |||
Additions to property, plant and equipment | (376.3) | (34.3) | |
Other investing activities | 0.2 | 0.1 | |
Net cash used in investing activities | (376.1) | (34.2) | |
Financing activities | |||
Proceeds from borrowings — revolving credit facility | 1,139.0 | 868.1 | |
Repayments of borrowings — revolving credit facility | (1,052.0) | (928.0) | |
Proceeds from borrowings — senior notes | 325.0 | — | |
Repayments of borrowings — senior notes | (363.1) | (70.0) | |
Proceeds from inventory financing | 1,598.2 | 724.1 | |
Payments on inventory financing | (1,603.6) | (689.4) | |
Proceeds from sale of redeemable noncontrolling interest in subsidiary | 200.0 | — | |
Repayment of MRL credit facility | (347.3) | — | |
Proceeds from other financing obligations | 279.6 | 70.0 | |
Payments on other financing obligations | (10.4) | (6.6) | |
Other financing activities | (11.4) | (2.7) | |
Net cash provided by (used in) financing activities | 154.0 | (34.5) | |
Net decrease in cash, cash equivalents and restricted cash | (71.4) | (98.6) | |
Cash, cash equivalents and restricted cash at beginning of period | 121.9 | 109.4 | |
Cash and cash equivalents at end of period | $ 50.5 | $ 10.8 | |
Supplemental disclosure of non-cash investing activities | |||
Non-cash property, plant and equipment additions | $ 121.8 | $ 25.7 |
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 | Nine Months Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(In millions) | |||||||
Reconciliation of Net income (loss) attributable to | (Unaudited) | ||||||
Net income (loss) attributable to partners | $ 15.7 | $ 51.5 | $ (95.1) | $ (173.0) | |||
Add: | |||||||
Interest expense | 41.8 | 38.2 | 136.0 | 109.3 | |||
Depreciation and amortization | 25.3 | 26.5 | 74.3 | 78.7 | |||
Income tax expense | 1.5 | 0.4 | 2.8 | 1.5 | |||
Noncontrolling interest adjustments | (0.9) | — | (0.9) | — | |||
EBITDA | $ 83.4 | $ 116.6 | $ 117.1 | $ 16.5 | |||
Add: | |||||||
LCM / LIFO gain | $ (0.5) | $ (4.7) | $ (7.7) | $ (45.1) | |||
Unrealized (gain) loss on derivative instruments | (28.1) | 3.3 | 47.5 | 16.5 | |||
Amortization of turnaround costs | 4.9 | 4.0 | 16.4 | 12.2 | |||
Debt extinguishment costs | 40.4 | — | 41.4 | 0.4 | |||
(Gain) loss on impairment and disposal of assets | (0.2) | — | (0.2) | 1.9 | |||
Gain on sale of business, net | — | (0.2) | — | (0.2) | |||
RINs mark-to-market (gain) loss | 14.3 | (66.9) | 92.4 | 56.3 | |||
Equity-based compensation and other items | 13.0 | 6.7 | 16.6 | 24.4 | |||
Other non-recurring (income) expenses | (0.2) | — | 2.6 | 2.8 | |||
Adjusted EBITDA | $ 127.0 | $ 58.8 | $ 326.1 | $ 85.7 | |||
Less: | |||||||
Replacement and environmental capital expenditures (1) | $ 26.5 | $ 0.5 | $ 53.3 | $ 14.3 | |||
Cash interest expense (2) | 40.5 | 36.6 | 119.6 | 104.2 | |||
Turnaround costs | 14.7 | 8.7 | 32.2 | 40.8 | |||
Income tax expense | 1.5 | 0.4 | 2.8 | 1.5 | |||
Distributable Cash Flow | $ 43.8 | $ 12.6 | $ 118.2 | $ (75.1) |
_________________ | |
(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 GROSS PROFIT (LOSS) | |||||||
TO SEGMENT ADJUSTED GROSS PROFIT (LOSS) | |||||||
(In millions, except per barrel data) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(Dollars in millions, except per barrel data) | |||||||
Reconciliation of Segment Gross Profit (Loss) to Segment | (Unaudited) | ||||||
Specialty Products and Solution segment gross profit | $ 123.4 | $ 74.0 | $ 229.2 | $ 43.4 | |||
LCM/LIFO inventory (gain) loss | 2.1 | (0.8) | (1.3) | (29.7) | |||
RINs mark to market (gain) loss | 8.4 | (36.9) | 53.6 | 32.8 | |||
Depreciation and amortization | 15.5 | 16.6 | 47.3 | 48.9 | |||
Specialty Products and Solutions segment Adjusted gross profit | $ 149.4 | $ 52.9 | $ 328.8 | $ 95.4 | |||
Performance Brands segment gross profit | $ 17.0 | $ 16.6 | $ 44.5 | $ 56.5 | |||
LCM/LIFO inventory gain | (0.3) | $ (2.9) | (0.5) | (3.4) | |||
Depreciation and amortization | 0.7 | $ 0.7 | 1.9 | 2.1 | |||
Performance Brands segment Adjusted gross profit | $ 17.4 | $ 14.4 | $ 45.9 | $ 55.2 | |||
Montana/Renewables segment gross profit (loss) | $ (1.1) | $ 42.7 | $ 42.2 | $ 10.5 | |||
LCM/LIFO inventory gain | (2.3) | (1.0) | (5.9) | (12.0) | |||
RINs mark to market (gain) loss | 5.1 | (24.1) | 32.4 | 17.5 | |||
Depreciation and amortization | 10.0 | 8.5 | 28.9 | 25.5 | |||
Montana/Renewables segment Adjusted gross profit | $ 11.7 | $ 26.1 | $ 97.6 | $ 41.5 | |||
Reported Specialty Products and Solutions segment gross profit per barrel | $ 21.65 | $ 15.30 | $ 13.63 | $ 3.20 | |||
LCM/LIFO inventory (gain) loss per barrel | 0.37 | (0.17) | (0.08) | (2.19) | |||
RINs mark to market (gain) loss per barrel | 1.47 | (7.63) | 3.19 | 2.42 | |||
Depreciation and amortization per barrel | 2.73 | 3.44 | 2.81 | 3.61 | |||
Specialty Products and Solutions segment Adjusted gross profit per barrel | $ 26.22 | $ 10.94 | $ 19.55 | $ 7.04 | |||
Reported Performance Brands segment gross profit per barrel | $ 139.34 | $ 137.19 | $ 112.09 | $ 143.04 | |||
LCM/LIFO inventory gain per barrel | (2.46) | (23.97) | (1.26) | (8.61) | |||
Depreciation and amortization per barrel | 5.74 | 5.79 | 4.79 | 5.32 | |||
Performance Brands segment Adjusted gross profit per barrel | $ 142.62 | $ 119.01 | $ 115.62 | $ 139.75 | |||
Reported Montana/Renewables segment gross profit (loss) per barrel | $ (0.96) | $ 16.03 | $ 6.78 | $ 1.35 | |||
LCM/LIFO inventory gain per barrel | (2.00) | (0.38) | (0.95) | (1.55) | |||
RINs mark to market (gain) loss per barrel | 4.43 | (9.05) | 5.21 | 2.26 | |||
Depreciation and amortization per barrel | 8.70 | 3.20 | 4.65 | 3.29 | |||
Montana/Renewables segment Adjusted gross profit per barrel | $ 10.17 | $ 9.80 | $ 15.69 | $ 5.35 | |||
Specialty Products and Solutions Adjusted EBITDA | $ 131.7 | $ 46.3 | $ 283.3 | $ 75.9 | |||
Specialty Products and Solutions sales | 934.6 | 583.5 | 2,683.2 | 1,507.4 | |||
Specialty Products and Solutions Adjusted EBITDA margin | 14.1 % | 7.9 % | 10.6 % | 5.0 % |
View original content: https://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-third-quarter-2022-results-301672862.html
SOURCE Calumet Specialty Products Partners, L.P.