Ciner Resources LP today reported its financial and operating results
for the third quarter ended September 30, 2015.
Third Quarter 2015 Financial Highlights:
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Net sales of $117.3 million increased 6.8% over the prior-year third
quarter; year-to-date net sales of $360.0 million increased 6.2% over
the prior-year.
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Adjusted EBITDA of $33.6 million increased 14.7% over the prior-year
third quarter; year-to-date Adjusted EBITDA of $98.1 million increased
14.5% over the prior-year.
-
Earnings per unit were $0.65 for the quarter, an increase of 25.0%
over the prior-year third quarter of $0.52; year-to-date earnings per
unit of $1.88 increased 21.3% over the prior-year of $1.55.
-
Quarterly distribution declared per unit of $0.5510 increased by 5.0%
over the prior-year third quarter; and 3.7% over fourth quarter 2014.
-
Distributable cash flow of $13.4 million decreased 0.8% over the
prior-year third quarter; year-to-date distributable cash flow of
$39.1 million increased 0.8% over the prior-year. The distribution
coverage ratio was 1.22 and 1.20 for the three and nine months ended
2015; and 1.27 and 1.27 for the three and nine months ended 2014.
2015 Outlook:
-
Our full year outlook related to volume sold, international pricing
and maintenance capital expenditures remains unchanged. (previously
provided in conjunction with our first quarter 2015 and year end 2014
financial results)
-
Our outlook for expansion CAPEX has been reduced to a range of $17 to
$19M
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Financial Highlights
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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($ in millions, except per unit amounts)
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2015
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2014
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% Change
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2015
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2014
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% Change
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Soda ash volume produced (millions of short tons)
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0.656
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0.634
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3.5
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%
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1.9837
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1.8839
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5.3
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%
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Soda ash volume sold (millions of short tons)
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0.638
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0.598
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6.7
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%
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1.9510
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1.8626
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4.7
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%
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Net sales
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$
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117.3
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$
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109.8
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6.8
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%
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$
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360.0
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$
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339.0
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6.2
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%
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Net income
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$
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26.9
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$
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21.6
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24.5
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%
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$
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77.9
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$
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64.3
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21.2
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%
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Net income attributable to Ciner Resources LP
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$
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13.1
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$
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10.4
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26.0
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%
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$
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37.6
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$
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31.0
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21.3
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%
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Basic and Diluted Earnings per Unit
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$
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0.65
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$
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0.52
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25.0
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%
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$
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1.88
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$
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1.55
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21.3
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%
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Adjusted EBITDA (1)
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$
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33.6
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$
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29.3
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14.7
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%
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$
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98.1
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$
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85.7
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14.5
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%
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Adjusted EBITDA attributable to Ciner Resources LP(1)
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$
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16.7
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$
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14.5
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15.2
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%
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$
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48.4
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$
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42.4
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14.2
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%
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Distributable cash flow attributable to Ciner Resources LP(1)
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$
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13.4
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$
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13.3
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0.8
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%
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$
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39.1
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$
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38.8
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0.8
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%
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Distribution coverage ratio (1)
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1.22
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1.27
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(3.9
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)%
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1.20
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1.27
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(5.5
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)%
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(1) See non-GAAP reconciliations
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Kirk Milling, CEO, commented "We are very excited to usher in a new era
for the company as part of the Ciner Group along with our name change to
Ciner Resources LP. Our ticker symbol on the NYSE will change tomorrow
from OCIR to CINR. We had another excellent quarter as greater sales and
production volumes, combined with lower energy costs, drove adjusted
EBITDA attributable to Ciner Resources for the quarter higher by 15.2%.
Our third quarter performance, coupled with our outlook for a strong
fourth quarter, allowed us to increase our distribution for the fifth
consecutive quarter as we continue executing on our distribution growth
strategy."
THIRD QUARTER 2015 FINANCIAL AND OPERATING RESULTS
Three Months Ended September 30, 2015 compared to Three Months
Ended September 30, 2014
The following table sets forth a summary of net sales, sales volumes and
average sales price, and the percentage change between the periods.
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Three Months Ended
September 30,
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Percent
Increase/
(Decrease)
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2015
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2014
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Net sales ($ in millions):
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Domestic
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$
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47.2
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$
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49.5
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(4.6
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)%
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International
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70.1
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60.3
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16.3
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%
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Total net sales
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$
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117.3
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$
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109.8
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6.8
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%
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Sales volumes (thousands of short tons):
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Domestic
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208.5
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213.4
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(2.3
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)%
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International
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429.1
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384.5
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11.6
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%
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Total soda ash volume sold
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637.6
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597.9
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6.6
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%
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Average sales price (per short ton):
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Domestic
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$
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226.36
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$
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231.84
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(2.4
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)%
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International
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$
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163.49
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$
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156.85
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4.2
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%
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Average
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$
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184.05
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$
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183.61
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0.2
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%
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Percent of net sales:
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Domestic sales
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40.2
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%
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45.1
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%
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(10.9
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)%
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International sales
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59.8
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%
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54.9
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%
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8.9
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%
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Total percent of net sales
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100.0
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%
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100.0
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%
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Net sales. Net sales increased by 6.8% to $117.3 million for the
three months ended September 30, 2015 from $109.8 million for the three
months ended September 30, 2014, driven by increases in both soda ash
volumes sold of 6.6% and international average sales price of 4.2%.
These positive results were partially offset by a decrease in domestic
average sales price of 2.4% during the third quarter of 2015 over the
third quarter of 2014, partially driven by a change in one of our large
customer contracts to take delivery of product at our plant. Generally,
we sell soda ash on a delivered basis, inclusive of freight, which is
included both in net sales and cost of products sold.
Cost of products sold. Cost of products sold, including
depreciation, depletion and amortization expense, increased by 4.0% to
$84.9 million for the three months ended September 30, 2015 from $81.6
million for the three months ended September 30, 2014, due primarily to
an increase in pension costs, as well as an increase in sales volumes.
These increases were moderately offset by a decrease in energy costs as
a result of lower natural gas prices.
Nine Months Ended September 30, 2015 compared to Nine Months Ended
September 30, 2014
The following table sets forth a summary of net sales, sales volumes and
average sales price, and the percentage change between the periods.
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Nine Months Ended
September 30,
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Percent
Increase/
(Decrease)
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2015
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2014
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Net sales ($ in millions):
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Domestic
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$
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145.6
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$
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149.8
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(2.8
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)%
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International
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214.4
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189.2
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13.3
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%
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Total net sales
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$
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360.0
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$
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339.0
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6.2
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%
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Sales volumes (thousands of short tons):
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Domestic
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637.5
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628.1
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1.5
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%
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International
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1,313.5
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1,234.5
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6.4
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%
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Total soda ash volume sold
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1,951.0
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1,862.6
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4.7
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%
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Average sales price (per short ton):
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Domestic
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$
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228.31
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$
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238.49
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(4.3
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)%
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International
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$
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163.24
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$
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153.26
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6.5
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%
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Average
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$
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184.50
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$
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182.00
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1.4
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%
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Percent of net sales:
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Domestic sales
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40.4
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%
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44.2
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%
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(8.6
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)%
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International sales
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59.6
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%
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55.8
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%
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6.8
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%
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Total percent of net sales
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100.0
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%
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100.0
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%
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Net sales. Net sales increased by 6.2% to $360.0 million for the
nine months ended September 30, 2015 from $339.0 million for the nine
months ended September 30, 2014, driven by increases in both
international average sales price of 6.5% and soda ash volumes sold of
4.7%. These positive results were partially offset by a decrease in
domestic average sales price of 4.3% during the nine months ended
September 30, 2015 over the nine months ended September 30, 2014,
partially driven by a change in one of our large customer contracts
to take delivery of product at our plant. Generally, we sell soda ash on
a delivered basis, inclusive of freight, which is included both in net
sales and cost of products sold.
Cost of products sold. Cost of products sold, including
depreciation, depletion and amortization expense, increased by 3.0% to
$264.3 million for the nine months ended September 30, 2015 from $256.7
million for the nine months ended September 30, 2014, due primarily to
an increase in pension costs, as well as an increase in sales volumes.
These increases were partly offset by a decrease in energy costs as a
result of lower natural gas prices.
CAPEX AND ORE TO ASH RATIO
The following table below summarizes our capital expenditures, on an
accrual basis, and ore to ash ratio:
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($ in millions)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2015
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2014
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2015
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2014
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Capital Expenditures
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Maintenance
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$
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4.4
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$
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2.0
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$
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13.8
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$
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4.5
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Expansion
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6.2
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7.2
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12.5
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11.6
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Total
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$
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10.6
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$
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9.2
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$
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26.3
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$
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16.1
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Operating and Other Data:
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Ore to ash ratio (1)
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1.51: 1.0
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1.49: 1.0
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1.51: 1.0
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1.52: 1.0
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(1) Ore to ash ratio expresses the number of short tons of trona ore
needed to produce one short ton of soda ash and includes our deca
rehydration recovery process.
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The increase in capital expenditures during three and nine months ended
September 30, 2015 compared the three and nine months ended
September 30, 2014 is due the scope and timing of projects.
CASH FLOWS AND QUARTERLY CASH DISTRIBUTION
Cash Flows
Cash provided by operating activities was $102.9 million during the nine
months ended September 30, 2015 compared to $86.7 million of cash
generated during nine months ended September 30, 2014, primarily driven
by an increase of 21.2% in net income, and $6.3 million of cash flows
provided from working capital during the nine months ended September 30,
2015 compared to $4.3 million of cash flows generated by working capital
during the prior-year third quarter.
Cash provided by operating activities during the nine months ended
September 30, 2015 were partially offset by cash used in investing
activities due to the timing of capital expenditures and cash used in
financing activities, during the year of $92.1 million as a result of
distributions paid and repayment of long-term debt.
Quarterly Distribution
On October 16, 2015, the Partnership declared its third quarter 2015
quarterly distribution of $0.5510 per unit. This represents an increase
of 1.2% and 5.0% over the distributions declared during the second
quarter of 2015 and third quarter of 2014, respectively. The quarterly
cash distribution is payable on November 13, 2015 to unitholders of
record on October 30, 2015.
RELATED COMMUNICATIONS
Ciner Resources LP will host a conference call today at 2:00 p.m. ET.
Participants can listen in by dialing 1-866-550-6980 (Domestic) or
1-804-977-2644 (International) and referencing confirmation 55763783.
Please log in or dial in at least 10 minutes prior to the start time to
ensure a connection. A telephonic replay of the call will be available
approximately two hours after the call's completion by calling
1-855-859-2056, 404-537-3406, or 1-800-585-8367 and referencing
confirmation 55763783, and will remain available for the following seven
days. This conference call will be webcast live and archived for replay
on Ciner Resources' website at www.ociresources.com.
ABOUT CINER RESOURCES LP
Ciner Resources LP, a master limited partnership, operates the trona ore
mining and soda ash production business of Ciner Wyoming LLC, ("Ciner
Wyoming"), one of the largest and lowest cost producers of natural soda
ash in the world, serving a global market from its facility in the Green
River Basin of Wyoming. The facility has been in operation for more than
50 years.
NATURE OF OPERATIONS
Ciner Resources LP owns a controlling interest comprised of a 51%
membership interest in Ciner Wyoming LLC ("Ciner Wyoming"). Natural
Resource Partners L.P. ("NRP") owns a non-controlling interest
consisting of a 49% membership interest in Ciner Wyoming.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Statements other
than statements of historical facts included in this press release that
address activities, events or developments that the Partnership expects,
believes or anticipates will or may occur in the future are
forward-looking statements. These statements contain words such as
“possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,”
“estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or
similar expressions. Such statements are based only on the Partnership’s
current beliefs, expectations and assumptions regarding the future of
the Partnership’s business, projections, anticipated events and trends,
the economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to
predict and many of which are outside of the Partnership’s control. The
Partnership’s actual results and financial condition may differ
materially from those implied or expressed by these forward-looking
statements. Consequently, you are cautioned not to place undue reliance
on any forward-looking statement because no forward-looking statement
can be guaranteed. Factors that could cause the Partnership’s actual
results to differ materially from the results contemplated by such
forward-looking statements include: changes in general economic
conditions, the Partnership's ability to meet its expected quarterly
distributions, changes in the Partnership’s relationships with its
customers, including American Natural Soda Ash Corporation ("ANSAC"),
the demand for soda ash and the opportunities for the Partnership to
increase its volume sold, the development of glass and glass making
product alternatives, changes in soda ash prices, operating hazards,
unplanned maintenance outages at the Partnership’s production
facilities, construction costs or capital expenditures exceeding
estimated or budgeted costs or expenditures, the effects of government
regulation, tax position, and other risks incidental to the mining,
processing, and shipment of trona ore and soda ash, as well as the other
factors discussed in the Partnership’s Annual Report on Form 10-K for
the year ended December 31, 2014, and subsequent reports filed with the
Securities and Exchange Commission. All forward-looking statements
included in this press release are expressly qualified in their entirety
by such cautionary statements. Unless required by law, the Partnership
undertakes no duty and does not intend to update the forward-looking
statements made herein to reflect new information or events or
circumstances occurring after this press release. All forward-looking
statements speak only as of the date made.
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Supplemental Information
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CINER RESOURCES LP
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
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(Unaudited)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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(In millions, except per unit data)
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2015
|
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2014
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2015
|
|
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2014
|
|
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|
|
|
|
|
|
|
|
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|
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|
|
Net sales
|
|
|
|
$
|
117.3
|
|
|
|
$
|
109.8
|
|
|
|
$
|
360.0
|
|
|
|
$
|
339.0
|
|
|
Operating costs and expenses:
|
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|
|
|
|
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Cost of products sold
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|
79.2
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|
|
76.3
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|
|
|
247.2
|
|
|
|
240.2
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|
|
Depreciation, depletion and amortization expense
|
|
|
|
5.7
|
|
|
|
5.3
|
|
|
|
17.1
|
|
|
|
16.5
|
|
|
Selling, general and administrative expenses
|
|
|
|
4.5
|
|
|
|
5.0
|
|
|
|
14.1
|
|
|
|
14.3
|
|
|
Loss on disposal of assets, net
|
|
|
|
—
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
1.0
|
|
|
Total operating costs and expenses
|
|
|
|
89.4
|
|
|
|
87.6
|
|
|
|
278.4
|
|
|
|
272.0
|
|
|
Operating income
|
|
|
|
27.9
|
|
|
|
22.2
|
|
|
|
81.6
|
|
|
|
67.0
|
|
|
Other income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(1.0
|
)
|
|
|
(1.4
|
)
|
|
|
(3.1
|
)
|
|
|
(3.9
|
)
|
|
Other, net
|
|
|
|
—
|
|
|
|
0.8
|
|
|
|
(0.6
|
)
|
|
|
1.2
|
|
|
Total other income/(expense), net
|
|
|
|
(1.0
|
)
|
|
|
(0.6
|
)
|
|
|
(3.7
|
)
|
|
|
(2.7
|
)
|
|
Net income
|
|
|
|
$
|
26.9
|
|
|
|
$
|
21.6
|
|
|
|
$
|
77.9
|
|
|
|
$
|
64.3
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
13.8
|
|
|
|
11.2
|
|
|
|
40.3
|
|
|
|
33.3
|
|
|
Net income attributable to Ciner Resources LP
|
|
|
|
$
|
13.1
|
|
|
|
$
|
10.4
|
|
|
|
$
|
37.6
|
|
|
|
$
|
31.0
|
|
|
Other comprehensive income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) on derivative financial instruments
|
|
|
|
(2.3
|
)
|
|
|
0.7
|
|
|
|
(3.9
|
)
|
|
|
0.1
|
|
|
Comprehensive income
|
|
|
|
24.6
|
|
|
|
22.3
|
|
|
|
74.0
|
|
|
|
64.4
|
|
|
Comprehensive income attributable to non-controlling interest
|
|
|
|
12.7
|
|
|
|
11.5
|
|
|
|
38.4
|
|
|
|
33.3
|
|
|
Comprehensive income attributable to Ciner Resources LP
|
|
|
|
$
|
11.9
|
|
|
|
$
|
10.8
|
|
|
|
$
|
35.6
|
|
|
|
$
|
31.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common - Public and Ciner Holdings (basic and diluted)
|
|
|
|
$
|
0.65
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.88
|
|
|
|
$
|
1.55
|
|
|
Subordinated - Ciner Holdings (basic and diluted)
|
|
|
|
$
|
0.65
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.88
|
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding (basic and diluted)
|
|
|
|
9.8
|
|
|
9.8
|
|
|
9.8
|
|
|
9.8
|
|
Weighted average subordinated units outstanding (basic and diluted)
|
|
|
|
9.8
|
|
|
9.8
|
|
|
9.8
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CINER RESOURCES LP
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
(In millions)
|
|
|
|
September 30,
2015
|
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
13.7
|
|
|
|
$
|
31.0
|
|
|
Accounts receivable, net
|
|
|
|
30.8
|
|
|
|
35.5
|
|
|
Accounts receivable - ANSAC
|
|
|
|
67.4
|
|
|
|
70.4
|
|
|
Due from affiliates, net
|
|
|
|
10.1
|
|
|
|
19.6
|
|
|
Inventory
|
|
|
|
29.7
|
|
|
|
22.5
|
|
|
Other current assets
|
|
|
|
1.5
|
|
|
|
1.8
|
|
|
Total current assets
|
|
|
|
153.2
|
|
|
|
180.8
|
|
|
Property, plant and equipment, net
|
|
|
|
254.0
|
|
|
|
245.0
|
|
|
Other non-current assets
|
|
|
|
21.8
|
|
|
|
21.6
|
|
|
Total assets
|
|
|
|
$
|
429.0
|
|
|
|
$
|
447.4
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
12.3
|
|
|
|
$
|
13.1
|
|
|
Due to affiliates
|
|
|
|
4.2
|
|
|
|
7.1
|
|
|
Accrued expenses
|
|
|
|
28.7
|
|
|
|
29.5
|
|
|
Total current liabilities
|
|
|
|
45.2
|
|
|
|
49.7
|
|
|
Long-term debt
|
|
|
|
121.0
|
|
|
|
145.0
|
|
|
Other non-current liabilities
|
|
|
|
6.7
|
|
|
|
4.2
|
|
|
Total liabilities
|
|
|
|
172.9
|
|
|
|
198.9
|
|
|
Commitments and Contingencies (See Note 9)
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common unitholders - Public and Ciner Holdings (9.8 units issued and
outstanding at September 30, 2015 and December 31, 2014,
respectively)
|
|
|
|
109.2
|
|
|
|
106.3
|
|
|
Subordinated unitholders - Ciner Holdings (9.8 units issued and
outstanding at September 30, 2015 and December 31, 2014,
respectively)
|
|
|
|
40.6
|
|
|
|
37.9
|
|
|
General partner unitholders - Ciner Resource Partners LLC (0.4 units
issued and outstanding at September 30, 2015 and December 31, 2014,
respectively)
|
|
|
|
3.9
|
|
|
|
3.8
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(2.4
|
)
|
|
|
(0.4
|
)
|
|
Partners' capital attributable to Ciner Resources LP
|
|
|
|
151.3
|
|
|
|
147.6
|
|
|
Non-controlling interest
|
|
|
|
104.8
|
|
|
|
100.9
|
|
|
Total equity
|
|
|
|
256.1
|
|
|
|
248.5
|
|
|
Total liabilities and partners' equity
|
|
|
|
$
|
429.0
|
|
|
|
$
|
447.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CINER RESOURCES LP
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(In millions)
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
77.9
|
|
|
|
$
|
64.3
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense
|
|
|
|
17.4
|
|
|
|
16.8
|
|
|
Loss on disposal of assets, net
|
|
|
|
—
|
|
|
|
1.0
|
|
|
Equity-based compensation expense
|
|
|
|
0.5
|
|
|
|
0.3
|
|
|
Other non-cash items
|
|
|
|
0.8
|
|
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
(Increase)/decrease in:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
4.7
|
|
|
|
1.4
|
|
|
Accounts receivable - ANSAC
|
|
|
|
3.0
|
|
|
|
7.2
|
|
|
Due from affiliates, net
|
|
|
|
9.5
|
|
|
|
2.3
|
|
|
Inventory
|
|
|
|
(7.4
|
)
|
|
|
(4.8
|
)
|
|
Other current and other non-current assets
|
|
|
|
(0.3
|
)
|
|
|
(0.6
|
)
|
|
Increase/(decrease) in:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
1.6
|
|
|
|
(3.6
|
)
|
|
Due to affiliates
|
|
|
|
(1.6
|
)
|
|
|
2.8
|
|
|
Accrued expenses and other liabilities
|
|
|
|
(3.2
|
)
|
|
|
(0.4
|
)
|
|
Net cash provided by operating activities
|
|
|
|
102.9
|
|
|
|
86.7
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(28.1
|
)
|
|
|
(13.9
|
)
|
|
Net cash used in investing activities
|
|
|
|
(28.1
|
)
|
|
|
(13.9
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Due to affiliates
|
|
|
|
(1.3
|
)
|
|
|
—
|
|
|
Borrowings on revolving credit facility
|
|
|
|
4.0
|
|
|
|
—
|
|
|
Repayments on revolving credit facility
|
|
|
|
(28.0
|
)
|
|
|
—
|
|
|
Distributions to common unitholders
|
|
|
|
(15.8
|
)
|
|
|
(15.4
|
)
|
|
Distributions to general partner
|
|
|
|
(0.7
|
)
|
|
|
(0.6
|
)
|
|
Distributions to subordinated unitholders
|
|
|
|
(15.7
|
)
|
|
|
(15.3
|
)
|
|
Distributions to non-controlling interest
|
|
|
|
(34.6
|
)
|
|
|
(32.2
|
)
|
|
Net cash used in financing activities
|
|
|
|
(92.1
|
)
|
|
|
(63.5
|
)
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
|
|
(17.3
|
)
|
|
|
9.3
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
31.0
|
|
|
|
46.9
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
13.7
|
|
|
|
$
|
56.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted
accounting principles in the United States ("GAAP"). We also present the
non-GAAP financial measures of:
-
Adjusted EBITDA;
-
Distributable cash flow; and
-
Distribution coverage ratio.
We define Adjusted EBITDA as net income (loss) plus net interest
expense, income tax, depreciation, depletion and amortization and
certain other expenses that are non-cash charges or that we consider not
to be indicative of ongoing operations. Distributable cash flow is
defined as Adjusted EBITDA less net cash paid for interest, maintenance
capital expenditures and income taxes. Distributable cash flow will not
reflect changes in working capital balances. We define distribution
coverage ratio as the ratio of distributable cash flow per outstanding
unit (as of the end of the period) to cash distributions payable per
outstanding unit with respect to such period.
Adjusted EBITDA, distributable cash flow and distribution coverage ratio
are non-GAAP supplemental financial measures that management and
external users of our consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies, may use to
assess:
-
our operating performance as compared to other publicly traded
partnerships in our industry, without regard to historical cost basis
or, in the case of Adjusted EBITDA, financing methods;
-
the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;
-
our ability to incur and service debt and fund capital expenditures;
and
-
the viability of capital expenditure projects and the returns on
investment of various investment opportunities.
We believe that the presentation of Adjusted EBITDA, distributable cash
flow and distribution coverage ratio provide useful information to
investors in assessing our financial condition and results of
operations. The GAAP measures most directly comparable to Adjusted
EBITDA and distributable cash flow are net income and net cash provided
by operating activities. Our non-GAAP financial measures of Adjusted
EBITDA, distributable cash flow and distribution coverage ratio should
not be considered as an alternatives to GAAP net income, operating
income, net cash provided by operating activities, or any other measure
of financial performance or liquidity presented in accordance with GAAP.
Adjusted EBITDA and distributable cash flow have important limitations
as analytical tools because they exclude some, but not all items that
affect net income and net cash provided by operating activities.
Investors should not consider Adjusted EBITDA, distributable cash flow
and distribution coverage ratio in isolation or as a substitute for
analysis of our results as reported under GAAP. Because Adjusted EBITDA,
distributable cash flow and distribution coverage ratio may be defined
differently by other companies, including those in our industry, our
definition of Adjusted EBITDA, distributable cash flow and distribution
coverage ratio may not be comparable to similarly titled measures of
other companies, thereby diminishing its utility.
The table below presents a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA and distributable cash flow to the GAAP
financial measures of net income and net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
($ in millions, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
26.9
|
|
|
|
$
|
21.6
|
|
|
|
$
|
77.9
|
|
|
|
$
|
64.3
|
|
|
Add backs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense
|
|
|
|
5.7
|
|
|
|
5.3
|
|
|
|
17.1
|
|
|
|
16.5
|
|
|
Interest expense, net
|
|
|
|
1.0
|
|
|
|
1.4
|
|
|
|
3.1
|
|
|
|
3.9
|
|
|
Loss on disposal of assets, net
|
|
|
|
—
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
1.0
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
33.6
|
|
|
|
$
|
29.3
|
|
|
|
$
|
98.1
|
|
|
|
$
|
85.7
|
|
|
Less: Adjusted EBITDA attributable to non-controlling interest
|
|
|
|
16.9
|
|
|
|
14.8
|
|
|
|
49.7
|
|
|
|
43.3
|
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
|
|
$
|
16.7
|
|
|
|
$
|
14.5
|
|
|
|
$
|
48.4
|
|
|
|
$
|
42.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of distributable cash flow to Adjusted EBITDA
attributable to Ciner Resources LP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
|
|
$
|
16.7
|
|
|
|
$
|
14.5
|
|
|
|
$
|
48.4
|
|
|
|
$
|
42.4
|
|
|
Less: Cash interest expense, net attributable to Ciner Resources LP
|
|
|
|
0.5
|
|
|
|
0.6
|
|
|
|
1.6
|
|
|
|
1.9
|
|
|
Maintenance capital expenditures attributable to Ciner Resources LP(1)
|
|
|
|
2.8
|
|
|
|
0.6
|
|
|
|
7.7
|
|
|
|
1.7
|
|
|
Distributable cash flow attributable to Ciner Resources LP
|
|
|
|
$
|
13.4
|
|
|
|
$
|
13.3
|
|
|
|
$
|
39.1
|
|
|
|
$
|
38.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distribution declared per unit
|
|
|
|
$
|
0.551
|
|
|
|
$
|
0.525
|
|
|
|
$
|
1.634
|
|
|
|
$
|
1.525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to unitholders and general partner
|
|
|
|
$
|
11.0
|
|
|
|
$
|
10.5
|
|
|
|
$
|
32.7
|
|
|
|
$
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution coverage ratio
|
|
|
|
1.22
|
|
|
|
1.27
|
|
|
|
1.20
|
|
|
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
$
|
41.4
|
|
|
|
$
|
37.5
|
|
|
|
$
|
102.9
|
|
|
|
$
|
86.7
|
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term loan financing
|
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
(0.3
|
)
|
|
Equity-based compensation expense
|
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
|
(0.5
|
)
|
|
|
(0.3
|
)
|
|
Net change in working capital
|
|
|
|
(8.5
|
)
|
|
|
(9.3
|
)
|
|
|
(6.3
|
)
|
|
|
(4.3
|
)
|
|
Interest expense, net
|
|
|
|
1.0
|
|
|
|
1.4
|
|
|
|
3.1
|
|
|
|
3.9
|
|
|
Other non-cash items
|
|
|
|
(0.1
|
)
|
|
|
—
|
|
|
|
(0.8
|
)
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
33.6
|
|
|
|
$
|
29.3
|
|
|
|
$
|
98.1
|
|
|
|
$
|
85.7
|
|
|
Less: Adjusted EBITDA attributable to non-controlling interest
|
|
|
|
16.9
|
|
|
|
14.8
|
|
|
|
49.7
|
|
|
|
43.3
|
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
|
|
$
|
16.7
|
|
|
|
$
|
14.5
|
|
|
|
$
|
48.4
|
|
|
|
$
|
42.4
|
|
|
Less: Cash interest expense, net attributable to Ciner Resources LP
|
|
|
|
0.5
|
|
|
|
0.6
|
|
|
|
1.6
|
|
|
|
1.9
|
|
|
Maintenance capital expenditures attributable to Ciner Resources LP(1)
|
|
|
|
2.8
|
|
|
|
0.6
|
|
|
|
7.7
|
|
|
|
1.7
|
|
|
Distributable cash flow attributable to Ciner Resources LP
|
|
|
|
$
|
13.4
|
|
|
|
$
|
13.3
|
|
|
|
$
|
39.1
|
|
|
|
$
|
38.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Partnership may fund expansion-related capital
expenditures with borrowings under existing credit facilities such
that expansion-related capital expenditures will have no impact on
cash on hand or the calculation of cash available for
distribution. In certain instances, the timing of the
Partnership’s borrowings and/or its cash management practices will
result in a mismatch between the period of the borrowing and the
period of the capital expenditure. In those instances, the
Partnership adjusts designated reserves (as provided in the
partnership agreement) to take account of the timing difference.
Accordingly, expansion-related capital expenditures have been
excluded from the presentation of cash available for distribution.
|
|
|
The following table presents a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA to GAAP financial measure of net income for
the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
Four
Quarters
ended
Q3-
2015
|
|
|
Q3-2015
|
|
|
Q2-2015
|
|
|
Q1-2015
|
|
|
Q4-2014
|
|
|
Q3-2014
|
|
($ in millions, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
105.5
|
|
|
|
$
|
26.9
|
|
|
|
$
|
24.5
|
|
|
|
$
|
26.5
|
|
|
|
$
|
27.6
|
|
|
|
$
|
21.6
|
|
Add backs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense
|
|
|
|
23.0
|
|
|
|
5.7
|
|
|
|
5.8
|
|
|
|
5.6
|
|
|
|
5.9
|
|
|
|
5.3
|
|
Interest expense, net
|
|
|
|
4.3
|
|
|
|
1.0
|
|
|
|
1.1
|
|
|
|
0.9
|
|
|
|
1.3
|
|
|
|
1.4
|
|
Loss on disposal of assets, net
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.0
|
|
Adjusted EBITDA
|
|
|
|
$
|
132.8
|
|
|
|
$
|
33.6
|
|
|
|
$
|
31.4
|
|
|
|
$
|
33.0
|
|
|
|
$
|
34.8
|
|
|
|
$
|
29.3
|
|
Less: Adjusted EBITDA attributable to non-controlling interest
|
|
|
|
67.1
|
|
|
|
16.9
|
|
|
|
16.0
|
|
|
|
16.7
|
|
|
|
17.5
|
|
|
|
14.8
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
|
|
$
|
65.7
|
|
|
|
$
|
16.7
|
|
|
|
$
|
15.4
|
|
|
|
$
|
16.3
|
|
|
|
$
|
17.3
|
|
|
|
$
|
14.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
|
|
$
|
65.7
|
|
|
|
$
|
16.7
|
|
|
|
$
|
15.4
|
|
|
|
$
|
16.3
|
|
|
|
$
|
17.3
|
|
|
|
$
|
14.5
|
|
Less: Cash interest expense, net attributable to Ciner Resources LP
|
|
|
|
$
|
1.9
|
|
|
|
$
|
0.5
|
|
|
|
$
|
0.6
|
|
|
|
$
|
0.5
|
|
|
|
$
|
0.3
|
|
|
|
$
|
0.6
|
|
Maintenance capital expenditures attributable to Ciner Resources LP(1)
|
|
|
|
$
|
10.4
|
|
|
|
$
|
2.8
|
|
|
|
$
|
2.7
|
|
|
|
$
|
2.2
|
|
|
|
$
|
2.7
|
|
|
|
$
|
0.6
|
|
Distributable cash flow attributable to Ciner Resources LP
|
|
|
|
$
|
53.4
|
|
|
|
$
|
13.4
|
|
|
|
$
|
12.1
|
|
|
|
$
|
13.6
|
|
|
|
$
|
14.3
|
|
|
|
$
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distribution declared per unit
|
|
|
|
$
|
2.166
|
|
|
|
$
|
0.551
|
|
|
|
$
|
0.545
|
|
|
|
$
|
0.538
|
|
|
|
$
|
0.532
|
|
|
|
$
|
0.525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to unitholders and general partner
|
|
|
|
$
|
43.2
|
|
|
|
$
|
11.0
|
|
|
|
$
|
10.9
|
|
|
|
$
|
10.7
|
|
|
|
$
|
10.6
|
|
|
|
$
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution coverage ratio
|
|
|
|
1.24
|
|
|
|
1.22
|
|
|
|
1.11
|
|
|
|
1.27
|
|
|
|
1.35
|
|
|
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Partnership may fund expansion-related capital expenditures
with borrowings under existing credit facilities such that
expansion-related capital expenditures will have no impact on cash
on hand or the calculation of cash available for distribution. In
certain instances, the timing of the Partnership’s borrowings and/or
its cash management practices will result in a mismatch between the
period of the borrowing and the period of the capital expenditure.
In those instances, the Partnership adjusts designated reserves (as
provided in the partnership agreement) to take account of the timing
difference. Accordingly, expansion-related capital expenditures have
been excluded from the presentation of cash available for
distribution.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105005595/en/
Copyright Business Wire 2015
