Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Full Year 2023 Results
- Strong net income of $48.1 million for full year 2023
- Adjusted EBITDA of $260.5 million
- Intent to convert corporate structure to a C-Corp
- Successful replacement of steam drum at Montana Renewables
- Fifth consecutive year of margin growth in Specialties business
- Note purchase agreement for $200 million and redemption of outstanding notes
- None.
Insights
The reported full-year net income of $48.1 million, up from a loss in the previous year, indicates a significant turnaround for Calumet, which may be viewed positively by investors. The conversion from an MLP to a C-Corp could potentially increase liquidity in the stock as it becomes accessible to a broader investor base, which often excludes MLPs due to tax complications. The issuance of $200 million in Senior Secured First Lien Notes at a 9.25% interest rate, while providing immediate capital, does raise concerns about the cost of debt servicing given the high-interest rate in a potentially rising rate environment.
Calumet's focus on the Montana Renewables segment and its establishment as the largest SAF producer in North America is a strategic move to capitalize on the growing renewable energy market. However, the operational challenges faced, such as the cracked steam drum, have impacted production rates and financial results. The company's ability to navigate these operational issues and optimize feedstock costs will be crucial for maintaining profitability and competitive advantage in the renewables sector.
The Specialties business's fifth consecutive year of margin growth reflects a strong market position and effective cost management, potentially signaling resilience in its core operations. However, the reduced Adjusted EBITDA from $390.0 million in the previous year to $260.5 million raises questions about the sustainability of this growth, especially in the face of adverse weather events and operational disruptions. Investors should monitor the company's ability to recover from these setbacks and deliver on its strategic initiatives.
- Full Year 2023 net income of
$48.1 million $0.59 - Full Year 2023 Adjusted EBITDA of
$260.5 million - Announced intent to convert corporate structure to a C-Corp from a Master Limited Partnership
- Montana Renewables ("MRL") returned to normal operations in December; steam drum successfully replaced
- Specialties business delivers fifth consecutive year of margin growth
- Entered into note purchase agreement to issue
$200 million 9.25% Senior Secured First Lien Notes due 2029 - Issued conditional notices to redeem all outstanding
9.25% Senior Secured First Lien Notes due 2024 and$50 million 11.00% Senior Notes due 2025
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Dollars in millions, except per unit data) | ||||||||||||
Net income (loss) | $ | (48.0) | $ | (77.1) | $ | 48.1 | $ | (173.3) | ||||
Limited partners' interest basic net income (loss) per unit | $ | (0.59) | $ | (0.95) | $ | 0.59 | $ | (2.14) | ||||
Adjusted EBITDA | $ | 39.7 | $ | 63.9 | $ | 260.5 | $ | 390.0 | ||||
Specialty Products and Solutions | Performance Brands | |||||||||||||||||
Three Months Ended December 31, | Three Months Ended December 31, | Three Months Ended December 31, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
(Dollars in millions, except per barrel data) | ||||||||||||||||||
Gross profit (loss) | $ | 88.1 | $ | 96.3 | $ | 16.1 | $ | 11.1 | $ | (82.1) | $ | (71.6) | ||||||
Adjusted gross profit (loss) | $ | 69.6 | $ | 93.6 | $ | 16.5 | $ | 11.9 | $ | (19.3) | $ | (11.2) | ||||||
Adjusted EBITDA | $ | 75.6 | $ | 96.1 | $ | 6.1 | $ | 2.7 | $ | (25.8) | $ | (13.1) | ||||||
Gross profit (loss) per barrel | $ | 16.11 | $ | 17.08 | $ | 135.29 | $ | 92.50 | $ | (45.76) | $ | (66.42) | ||||||
Adjusted gross profit (loss) per barrel | $ | 12.73 | $ | 16.60 | $ | 138.66 | $ | 99.17 | $ | (10.76) | $ | (10.39) | ||||||
Specialty Products and Solutions | Performance Brands | |||||||||||||||||
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
(Dollars in millions, except per barrel data) | ||||||||||||||||||
Gross profit (loss) | $ | 402.2 | $ | 325.5 | $ | 82.1 | $ | 55.6 | $ | (32.6) | $ | (29.4) | ||||||
Adjusted gross profit | $ | 291.0 | $ | 422.4 | $ | 78.5 | $ | 57.8 | $ | 59.8 | $ | 86.4 | ||||||
Adjusted EBITDA | $ | 251.2 | $ | 379.4 | $ | 47.9 | $ | 20.2 | $ | 30.2 | $ | 75.8 | ||||||
Gross profit (loss) per barrel | $ | 18.73 | $ | 14.49 | $ | 160.35 | $ | 107.54 | $ | (4.56) | $ | (4.03) | ||||||
Adjusted gross profit per barrel | $ | 13.56 | $ | 18.81 | $ | 153.32 | $ | 111.80 | $ | 8.36 | $ | 11.84 | ||||||
"2023 was a strategically foundational year for Calumet," said Todd Borgmann, CEO. "At Montana Renewables, we completed the construction and startup of the business, demonstrated our ability to source local advantaged feedstock, optimized product placement between
"Advancements over the past few years set the stage for a series of value-creating catalysts to be realized in 2024. First, we are excited for our first full year of operations at Montana Renewables, and after we work through old, expensive feedstock in the first quarter we expect to demonstrate the business' financial promise. Next, we continue to be optimistic about the prospects of our DOE loan process, which could provide the ability to fund our MaxSAF expansion. With the above two items, a potential monetization later in the year remains a strategic deleveraging opportunity."
Specialty Products and Solutions (SPS): The SPS segment reported Adjusted EBITDA of
Performance Brands (PB): The PB segment reported Adjusted EBITDA of
Corporate: Total corporate costs represent a loss of
2029 Secured Notes: Calumet also announced that we have entered into a note purchase agreement to sell
Restatement of Financial Results: Calumet also announced today our decision to restate the audited financial statements for the year ended December 31, 2022 and the unaudited interim consolidated financial statements for the periods ended March 31, 2023, June 30, 2023 and September 30, 2023 as a result of the attribution of net loss from Montana Renewables Holdings LLC ("MRHL") to noncontrolling interest. The impact on Adjusted EBITDA for all periods described in this paragraph was de minimis. Additional details regarding the restatement have been provided in our related Current Report on Form 8-K that was filed today with the Securities and Exchange Commission ("SEC").
Operations Summary
The 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 December 31, | Year Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(In bpd) | (In bpd) | |||||||
Total sales volume (1) | 80,234 | 74,302 | 79,805 | 82,946 | ||||
Total feedstock runs (2) | 80,295 | 69,509 | 77,200 | 80,447 | ||||
Facility production: (3) | ||||||||
Specialty Products and Solutions: | ||||||||
Lubricating oils | 11,381 | 10,689 | 10,358 | 10,951 | ||||
Solvents | 7,303 | 7,505 | 7,208 | 7,100 | ||||
Waxes | 1,200 | 1,473 | 1,326 | 1,452 | ||||
Fuels, asphalt and other by-products | 42,449 | 40,260 | 38,845 | 40,845 | ||||
Total Specialty Products and Solutions | 62,333 | 59,927 | 57,737 | 60,348 | ||||
Gasoline | 3,919 | 2,631 | 3,898 | 3,409 | ||||
Diesel | 2,862 | 1,856 | 2,941 | 6,449 | ||||
Jet fuel | 370 | 643 | 449 | 820 | ||||
Asphalt, heavy fuel oils and other | 4,512 | 3,310 | 4,483 | 6,942 | ||||
Renewable fuels | 5,442 | — | 6,314 | — | ||||
Total | 17,105 | 8,440 | 18,085 | 17,620 | ||||
Performance Brands | 1,347 | 1,210 | 1,474 | 1,434 | ||||
Total facility production (3) | 80,785 | 69,577 | 77,296 | 79,402 | ||||
(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. | |||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on February 23, 2024 to discuss the financial and operational results for the fourth quarter of 2023. 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 dialing (844) 695-5524. 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) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. Calumet is headquartered in
Additional Information and Where to Find It
This communication relates to the proposed corporate reorganization between the Partnership and Calumet, Inc. ("New Calumet"). This communication may be deemed to be solicitation material in respect of the proposed corporate transition of the Partnership to New Calumet, a newly formed
The Proxy Statement/Prospectus, any amendments or supplements thereto and other relevant materials, and any other documents filed by the Partnership or New Calumet with the SEC, may be obtained once such documents are filed with the SEC free of charge at the SEC's website at www.sec.gov or free of charge from the Partnership at www.calumet.com or by directing a written request to the Partnership at 2780 Waterfront Parkway East Drive,
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
The Partnership, the Calumet GP, LLC (the "General Partner") and certain of the General Partner's executive officers, directors, other members of management and employees may, under the rules of the SEC, be deemed to be "participants" in the solicitation of proxies in connection with the proposed Conversion. Information regarding the General Partner's directors and executive officers is available in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 15, 2023 (the "Annual Report"). To the extent that holdings of the Partnership's securities have changed from the amounts reported in the Annual Report, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. These documents may be obtained free of charge from the sources indicated above. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Form S-4, the Proxy Statement/Prospectus and other relevant materials relating to the proposed Conversion to be filed with the SEC when they become available. Unitholders and other investors should read the Proxy Statement/Prospectus carefully when it becomes available before making any voting or investment decisions.
Cautionary Statement Regarding Forward-Looking Statements
Certain 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) demand for finished products in markets we serve, (ii) 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, (iii) our expectation regarding anticipated capital expenditures and strategic initiatives, (iv) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures, (v) our expectation regarding the private placement of the 2029 Secured Notes and the use of proceeds therefrom, and (vi) the conditional full redemptions of the 2024 Secured Notes and the conditional partial redemption of the 2025 Notes. 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, renewable fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products, fuel products, and renewable 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, instability in financial institutions, the prospect of a shutdown of the
For additional information regarding factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including the risk factors and other cautionary statements in our latest Annual Report on Form 10-K 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 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 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) 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. We believe net income (loss) 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); (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, 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); (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; (d) depreciation and amortization; and (e) all extraordinary, unusual or non-recurring items of revenue or cost of sales.
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; (d) depreciation and amortization; and (e) all extraordinary, unusual or non-recurring items of revenue or cost of sales.
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 the 2024 Secured Notes, the 2025 Notes, our
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, RINs mark-to-market adjustments, and depreciation and amortization.
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 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), 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), 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. | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
(Unaudited) | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(Restated) | ||||||||||||
Sales | $ | 976.5 | $ | 999.4 | $ | 4,181.0 | $ | 4,686.3 | ||||
Cost of sales | 954.4 | 963.6 | 3,729.3 | 4,334.6 | ||||||||
Gross profit | 22.1 | 35.8 | 451.7 | 351.7 | ||||||||
Operating costs and expenses: | ||||||||||||
Selling | 13.5 | 13.5 | 54.9 | 53.9 | ||||||||
General and administrative | 30.0 | 45.0 | 133.0 | 143.4 | ||||||||
Taxes other than income taxes | 5.9 | 3.2 | 21.5 | 13.7 | ||||||||
Loss on impairment and disposal of assets | 3.5 | 0.9 | 3.5 | 0.7 | ||||||||
Other operating (income) expense | (16.9) | 1.6 | (28.4) | 8.1 | ||||||||
Operating income (loss) | (13.9) | (28.4) | 267.2 | 131.9 | ||||||||
Other income (expense): | ||||||||||||
Interest expense | (58.0) | (39.9) | (221.7) | (175.9) | ||||||||
Debt extinguishment costs | (0.4) | — | (5.9) | (41.4) | ||||||||
Gain (loss) on derivative instruments | 24.4 | (8.5) | 9.9 | (81.7) | ||||||||
Other income (expense) | 0.1 | 0.3 | 0.2 | (2.8) | ||||||||
Total other expense | (33.9) | (48.1) | (217.5) | (301.8) | ||||||||
Net income (loss) before income taxes | (47.8) | (76.5) | 49.7 | (169.9) | ||||||||
Income tax expense | 0.2 | 0.6 | 1.6 | 3.4 | ||||||||
Net income (loss) | $ | (48.0) | $ | (77.1) | $ | 48.1 | $ | (173.3) | ||||
Allocation of net income (loss) to partners | ||||||||||||
Net income (loss) attributable to partners | $ | (48.0) | $ | (77.1) | $ | 48.1 | $ | (173.3) | ||||
Less: | ||||||||||||
General partner's interest in net income (loss) | (1.0) | (1.5) | 1.0 | (3.5) | ||||||||
Net income (loss) attributable to limited partners | $ | (47.0) | $ | (75.6) | $ | 47.1 | $ | (169.8) | ||||
Weighted average limited partner units outstanding: | ||||||||||||
Basic and diluted | 80,174,931 | 79,510,183 | 80,075,530 | 79,336,283 | ||||||||
Limited partners' interest basic and diluted net income (loss) per unit: | ||||||||||||
Limited partners' interest | $ | (0.59) | $ | (0.95) | $ | 0.59 | $ | (2.14) | ||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
December 31, | ||||||
(Unaudited) | ||||||
2023 | 2022 | |||||
ASSETS | (Restated) | |||||
Current assets: | ||||||
Cash and cash equivalents | $ | 7.9 | $ | 35.2 | ||
Accounts receivable | ||||||
Trade, less allowance for credit losses of | 252.4 | 244.7 | ||||
Other | 33.8 | 22.4 | ||||
286.2 | 267.1 | |||||
Inventories | 439.4 | 497.7 | ||||
Derivative assets | 9.6 | — | ||||
Prepaid expenses and other current assets | 51.6 | 19.6 | ||||
Total current assets | 794.7 | 819.6 | ||||
Property, plant and equipment, net | 1,506.3 | 1,482.0 | ||||
Goodwill | 173.0 | 173.0 | ||||
Other intangible assets, net | 28.5 | 36.3 | ||||
Operating lease right-of-use assets | 114.4 | 107.5 | ||||
Other noncurrent assets, net | 134.4 | 122.6 | ||||
Total assets | $ | 2,751.3 | $ | 2,741.0 | ||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 322.0 | $ | 442.0 | ||
Accrued interest payable | 48.7 | 34.6 | ||||
Accrued salaries, wages and benefits | 87.1 | 93.0 | ||||
Other taxes payable | 13.5 | 9.5 | ||||
Obligations under inventory financing agreements | 190.4 | 221.8 | ||||
Current portion of RINs obligation | 277.3 | 398.9 | ||||
Derivative liabilities | — | 26.5 | ||||
Current portion of operating lease liabilities | 75.6 | 70.7 | ||||
Other current liabilities | 42.4 | 34.3 | ||||
Current portion of long-term debt | 55.7 | 19.6 | ||||
Total current liabilities | 1,112.7 | 1,350.9 | ||||
Pension and postretirement benefit obligations | 4.2 | 4.8 | ||||
Other long-term liabilities | 10.4 | 18.3 | ||||
Long-term operating lease liabilities | 39.0 | 37.1 | ||||
Long-term RINs obligation, less current portion | — | 77.5 | ||||
Long-term debt, less current portion | 1,829.7 | 1,540.1 | ||||
Total liabilities | $ | 2,996.0 | $ | 3,028.7 | ||
Commitments and contingencies | ||||||
Redeemable noncontrolling interest | $ | 245.6 | $ | 245.6 | ||
Partners' capital (deficit): | ||||||
Limited partners' interest (79,967,363 units and 79,189,583 units, issued and | $ | (484.4) | $ | (525.3) | ||
General partner's interest | 1.3 | 0.3 | ||||
Accumulated other comprehensive loss | (7.2) | (8.3) | ||||
Total partners' capital (deficit) | (490.3) | (533.3) | ||||
Total liabilities and partners' capital (deficit) | $ | 2,751.3 | $ | 2,741.0 | ||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
Year Ended December 31, | ||||||
2023 | 2022 | |||||
(Unaudited) | ||||||
Net cash provided by (used in) operating activities | $ | (16.1) | $ | 100.6 | ||
Net cash used in investing activities | $ | (271.8) | $ | (536.0) | ||
Net cash provided by financing activities | $ | 267.4 | $ | 348.7 | ||
Net decrease in cash, cash equivalents and restricted cash | $ | (20.5) | $ | (86.7) | ||
Cash, cash equivalents and restricted cash at beginning of period | $ | 35.2 | $ | 121.9 | ||
Cash, cash equivalents and restricted cash at end of period | $ | 14.7 | $ | 35.2 | ||
Cash and cash equivalents | $ | 7.9 | $ | 35.2 | ||
Restricted cash | $ | 6.8 | $ | — | ||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
(In millions) | ||||||||||||
(Unaudited) | ||||||||||||
Reconciliation of Net income (loss) to EBITDA, | ||||||||||||
Net income (loss) | $ | (48.0) | $ | (77.1) | $ | 48.1 | $ | (173.3) | ||||
Add: | ||||||||||||
Interest expense | 58.0 | 39.9 | 221.7 | 175.9 | ||||||||
Depreciation and amortization | 50.2 | 24.0 | 146.9 | 98.3 | ||||||||
Income tax expense | 0.2 | 0.6 | 1.6 | 3.4 | ||||||||
EBITDA | $ | 60.4 | $ | (12.6) | $ | 418.3 | $ | 104.3 | ||||
Add: | ||||||||||||
LCM / LIFO loss | $ | 26.2 | $ | 14.3 | $ | 35.6 | $ | 6.6 | ||||
Unrealized (gain) loss on derivative instruments | (14.2) | (1.6) | (33.0) | 45.9 | ||||||||
Debt extinguishment costs | 0.4 | — | 5.9 | 41.4 | ||||||||
Amortization of turnaround costs | 9.1 | 6.7 | 36.1 | 23.1 | ||||||||
Loss on impairment and disposal of assets | 3.5 | 0.9 | 3.5 | 0.7 | ||||||||
RINs mark-to-market (gain) loss | (74.3) | 23.3 | (290.2) | 115.7 | ||||||||
Equity-based compensation and other items | (0.8) | 17.8 | 20.2 | 34.4 | ||||||||
Other non-recurring expenses (1) | 25.4 | 13.0 | 60.9 | 15.6 | ||||||||
Noncontrolling interest adjustments | 4.0 | 2.1 | 3.2 | 2.3 | ||||||||
Adjusted EBITDA | $ | 39.7 | $ | 63.9 | $ | 260.5 | $ | 390.0 | ||||
Less: | ||||||||||||
Replacement and environmental capital expenditures (2) | $ | 27.6 | $ | 24.6 | $ | 81.2 | $ | 77.9 | ||||
Cash interest expense (3) | 56.5 | 38.7 | 216.0 | 158.3 | ||||||||
Turnaround costs | 19.0 | 30.4 | 47.9 | 62.6 | ||||||||
Income tax expense | 0.2 | 0.6 | 1.6 | 3.4 | ||||||||
Distributable Cash Flow | $ | (63.6) | $ | (30.4) | $ | (86.2) | $ | 87.8 | ||||
(1) | For the years ended December 31, 2023 and 2022, other non-recurring expenses included a | |||||||
(2) | 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. | |||||||
(3) | Represents consolidated interest expense less non-cash interest expense. | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Reconciliation of Segment Gross Profit (Loss) to | |||||||||||||
Specialty Products and Solution segment gross profit | $ | 88.1 | $ | 96.3 | $ | 402.2 | $ | 325.5 | |||||
LCM/LIFO inventory gain | (0.4) | (12.9) | (2.1) | (14.2) | |||||||||
Other adjustments (1) | — | (18.3) | (9.5) | (18.3) | |||||||||
RINs mark to market (gain) loss | (40.6) | 13.3 | (176.1) | 66.9 | |||||||||
Depreciation and amortization | 22.5 | 15.2 | 76.5 | 62.5 | |||||||||
Specialty Products and Solutions segment Adjusted gross profit | $ | 69.6 | $ | 93.6 | $ | 291.0 | $ | 422.4 | |||||
Performance Brands segment gross profit | $ | 16.1 | $ | 11.1 | $ | 82.1 | $ | 55.6 | |||||
LCM/LIFO inventory (gain) loss | (0.2) | 0.2 | 2.0 | (0.3) | |||||||||
Other adjustments (2) | — | — | (8.2) | — | |||||||||
Depreciation and amortization | 0.6 | 0.6 | 2.6 | 2.5 | |||||||||
Performance Brands segment Adjusted gross profit | $ | 16.5 | $ | 11.9 | $ | 78.5 | $ | 57.8 | |||||
$ | (82.1) | $ | (71.6) | $ | (32.6) | $ | (29.4) | ||||||
LCM/LIFO inventory loss | 26.8 | 27.0 | 35.7 | 21.1 | |||||||||
Loss on firm purchase commitments | 22.2 | 13.0 | 50.6 | 13.0 | |||||||||
RINs mark to market (gain) loss | (20.1) | 8.3 | (89.1) | 40.7 | |||||||||
Depreciation and amortization | 33.9 | 12.1 | 95.2 | 41.0 | |||||||||
$ | (19.3) | $ | (11.2) | $ | 59.8 | $ | 86.4 | ||||||
Reported Specialty Products and Solutions segment gross profit per barrel | $ | 16.11 | $ | 17.08 | $ | 18.73 | $ | 14.49 | |||||
LCM/LIFO inventory gain per barrel | (0.07) | (2.29) | (0.10) | (0.63) | |||||||||
Other adjustments per barrel | — | (3.25) | (0.44) | (0.81) | |||||||||
RINs mark to market (gain) loss per barrel | (7.42) | 2.36 | (8.20) | 2.98 | |||||||||
Depreciation and amortization per barrel | 4.11 | 2.70 | 3.57 | 2.78 | |||||||||
Specialty Products and Solutions segment Adjusted gross profit per barrel | $ | 12.73 | $ | 16.60 | $ | 13.56 | $ | 18.81 | |||||
Reported Performance Brands segment gross profit per barrel | $ | 135.29 | $ | 92.50 | $ | 160.35 | $ | 107.54 | |||||
LCM/LIFO inventory (gain) loss per barrel | (1.68) | 1.67 | 3.91 | (0.58) | |||||||||
Other adjustments per barrel | — | — | (16.02) | — | |||||||||
Depreciation and amortization per barrel | 5.05 | 5.00 | 5.08 | 4.84 | |||||||||
Performance Brands segment Adjusted gross profit per barrel | $ | 138.66 | $ | 99.17 | $ | 153.32 | $ | 111.80 | |||||
Reported | $ | (45.76) | $ | (66.42) | $ | (4.56) | $ | (4.03) | |||||
LCM/LIFO inventory loss per barrel | 14.94 | 25.05 | 4.99 | 2.89 | |||||||||
Loss on firm purchase commitments per barrel | 12.37 | 12.06 | 7.08 | 1.78 | |||||||||
RINs mark to market (gain) loss per barrel | (11.20) | 7.70 | (12.46) | 5.58 | |||||||||
Depreciation and amortization per barrel | 18.89 | 11.22 | 13.31 | 5.62 | |||||||||
$ | (10.76) | $ | (10.39) | $ | 8.36 | $ | 11.84 | ||||||
Specialty Products and Solutions Adjusted EBITDA | $ | 75.6 | $ | 96.1 | $ | 251.2 | $ | 379.4 | |||||
Specialty Products and Solutions sales | 708.4 | 824.8 | 2,876.9 | 3,508.0 | |||||||||
Specialty Products and Solutions Adjusted EBITDA margin | 10.7 | % | 11.7 | % | 8.7 | % | 10.8 | % | |||||
(1) | For the years ended December 31, 2023 and 2022, other adjustments for the Specialty Products and Solutions segment included a | |||||||
(2) | For the year ended December 31, 2023, other adjustments for the Performance Brands segment included a | |||||||
View original content:https://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-fourth-quarter-and-full-year-2023-results-302069873.html
SOURCE Calumet Specialty Products Partners, L.P.
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