Calumet Specialty Products Partners, L.P. Reports Second Quarter 2022 Results
Calumet Specialty Products Partners reported a net loss of $15.3 million for Q2 2022, improving from a loss of $78.4 million a year earlier. The Adjusted EBITDA was $175.8 million, significantly up from $32.3 million in Q2 2021. The company completed financing for Montana Renewables, establishing its enterprise value at $2.25 billion. Key segments showed strong performance with Specialty Products and Solutions segment achieving Adjusted EBITDA of $123.5 million, aided by increased production and higher fuel margins. Production volumes across various segments saw significant year-over-year growth.
- Adjusted EBITDA of $175.8 million for Q2 2022, up from $32.3 million in Q2 2021.
- Specialty Products and Solutions segment reported Adjusted EBITDA of $123.5 million, a substantial increase from $31.8 million year-over-year.
- Montana Renewables financing completed, establishing a $2.25 billion enterprise value.
- Production volumes increased by 17.3% year-over-year in the Specialty Products segment.
- Higher gross profit margins noted across key product lines.
- Net loss of $15.3 million compared to a net loss of $78.4 million a year prior, indicating ongoing financial challenges.
- Performance Brands segment reported decreased Adjusted EBITDA of $3.7 million, down from $7.3 million year-over-year, largely due to inflationary pressures.
- Net loss of
$15.3 million , or$(0.19) per unit, for the second quarter 2022 - Second quarter Adjusted EBITDA of
$175.8 million - Completed Montana Renewables financing, highlighting a
$2.25 billion MRL enterprise value - Super-cycle margin environment highlights benefits of integrated specialty business
INDIANAPOLIS, Aug. 5, 2022 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), today reported results for the second quarter ended June 30, 2022, as follows:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(Dollars in millions, except per unit data) | |||||||
Net loss | $ (15.3) | $ (78.4) | $ (110.8) | $ (224.5) | |||
Net loss per unit | $ (0.19) | $ (0.97) | $ (1.37) | $ (2.79) | |||
Adjusted EBITDA | $ 175.8 | $ 32.3 | $ 199.1 | $ 26.9 | |||
Specialty Products and Solutions | Performance Brands | Montana/Renewables | |||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||
(Dollars in millions, except per barrel data) | |||||||||||
Gross profit (loss) | $ 88.1 | $ 7.7 | $ 14.2 | $ 16.4 | $ 41.6 | $ (5.0) | |||||
Adjusted gross profit | $ 144.0 | $ 38.0 | $ 14.6 | $ 16.6 | $ 74.0 | $ 15.8 | |||||
Adjusted EBITDA | $ 123.5 | $ 31.8 | $ 3.7 | $ 7.3 | $ 68.6 | $ 12.8 | |||||
Gross profit (loss) per barrel | $ 15.72 | $ 1.55 | $ 100.00 | $ 123.31 | $ 16.12 | $ (1.93) | |||||
Adjusted gross profit per barrel | $ 25.69 | $ 7.65 | $ 102.82 | $ 124.81 | $ 28.67 | $ 6.11 | |||||
Specialty Products and Solutions | Performance Brands | Montana/Renewables | |||||||||
Six Months Ended June 30, | Six Months Ended June 30, | Six Months Ended June 30, | |||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||
(Dollars in millions, except per barrel data) | |||||||||||
Gross profit (loss) | $ 105.8 | $ (30.6) | $ 27.5 | $ 39.9 | $ 43.3 | $ (32.2) | |||||
Adjusted gross profit | $ 179.4 | $ 42.5 | $ 28.5 | $ 40.8 | $ 85.9 | $ 15.4 | |||||
Adjusted EBITDA | $ 151.6 | $ 29.6 | $ 9.0 | $ 23.3 | $ 77.6 | $ 10.8 | |||||
Gross profit (loss) per barrel | $ 9.51 | $ (3.51) | $ 100.00 | $ 145.62 | $ 8.54 | $ (6.33) | |||||
Adjusted gross profit per barrel | $ 16.13 | $ 4.87 | $ 103.64 | $ 148.91 | $ 16.95 | $ 3.03 | |||||
"Today is a special day at Calumet as we announce a record financial quarter and a transformational equity investment that places a
"Our second quarter performance highlights the power of Calumet's unique, highly integrated specialty business. Calumet has demonstrated the ability to perform across the range of business cycles. We relied on our consumer-facing product lines to weather the depths of Covid, and we now have configured to deliver exceptional results through the commodity super-cycle."
Calumet announced two capital markets transactions this morning, concluding the capitalization of the Montana Renewables business. The investments are comprised of a
Specialty Products & Solutions (SPS): The SPS segment reported Adjusted EBITDA of
Montana / Renewables (MR): The MR segment reported
Performance Brands (PB): The PB segment reported Adjusted EBITDA of
Corporate: Total corporate costs are represented as a loss of
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, as well as the resale of crude oil.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(In bpd) | |||||||
Total sales volume (1) | 91,524 | 84,463 | 90,978 | 77,817 | |||
Total feedstock runs (2) | 88,363 | 80,750 | 88,408 | 70,922 | |||
Facility production: (3) | |||||||
Specialty Products and Solutions: | |||||||
Lubricating oils | 10,661 | 10,356 | 10,713 | 8,886 | |||
Solvents | 6,776 | 6,938 | 6,876 | 6,664 | |||
Waxes | 1,204 | 1,497 | 1,360 | 1,191 | |||
Fuels, asphalt and other by-products | 38,948 | 30,404 | 39,685 | 23,586 | |||
Total Specialty Products and Solutions | 57,589 | 49,195 | 58,634 | 40,327 | |||
Montana/Renewables: | |||||||
Gasoline | 4,357 | 4,368 | 4,687 | 5,088 | |||
Diesel | 10,992 | 10,050 | 10,335 | 10,055 | |||
Jet fuel | 822 | 880 | 964 | 875 | |||
Asphalt, heavy fuel oils and other | 11,071 | 11,595 | 10,472 | 11,114 | |||
Total Montana/Renewables | 27,242 | 26,893 | 26,458 | 27,132 | |||
Performance Brands | 1,615 | 1,296 | 1,617 | 1,421 | |||
Total facility production (3) | 86,446 | 77,384 | 86,709 | 68,880 | |||
(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 August 5, 2022 to discuss the financial and operational results for the second 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/BIf8770ef9380a4e13a5d61119e9763d3b. 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 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 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) the effect, impact, potential duration or other implications of the ongoing novel coronavirus ("COVID-19") pandemic, supply chain disruptions and global crude oil production levels on our business and operations, (ii) demand for finished products in markets we serve, (iii) our expectation regarding our business outlook and cash flows, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, (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 political tensions, conflicts and war).
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.
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.
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; 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
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 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. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except unit and per unit data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(In millions, except per unit and unit data) | |||||||
(Unaudited) | |||||||
Sales | $ 1,424.0 | $ 807.0 | $ 2,521.9 | $ 1,407.3 | |||
Cost of sales | 1,280.1 | 787.9 | 2,345.3 | 1,430.2 | |||
Gross profit (loss) | 143.9 | 19.1 | 176.6 | (22.9) | |||
Operating costs and expenses: | |||||||
Selling | 16.2 | 14.5 | 28.8 | 27.6 | |||
General and administrative | 22.5 | 29.7 | 55.1 | 66.4 | |||
Other operating expense | 9.5 | 8.4 | 14.3 | 23.3 | |||
Operating income (loss) | 95.7 | (33.5) | 78.4 | (140.2) | |||
Other expense: | |||||||
Interest expense | (42.6) | (36.9) | (94.2) | (71.1) | |||
Loss on derivative instruments | (67.6) | (6.9) | (89.7) | (12.1) | |||
Other expense | (0.2) | (0.2) | (4.0) | — | |||
Total other expense | (110.4) | (44.0) | (187.9) | (83.2) | |||
Net loss before income taxes | (14.7) | (77.5) | (109.5) | (223.4) | |||
Income tax expense | 0.6 | 0.9 | 1.3 | 1.1 | |||
Net loss | $ (15.3) | $ (78.4) | $ (110.8) | $ (224.5) | |||
Allocation of net loss | |||||||
Net loss | $ (15.3) | $ (78.4) | $ (110.8) | $ (224.5) | |||
Less: | |||||||
General partner's interest in net loss | (0.3) | (1.6) | (2.2) | (4.5) | |||
Net loss attributable to limited partners | $ (15.0) | $ (76.8) | $ (108.6) | $ (220.0) | |||
Weighted average limited partner units outstanding: | |||||||
Basic and diluted | 79,424,383 | 78,929,561 | 79,241,515 | 78,782,802 | |||
Limited partners' interest basic and diluted net loss per unit: | |||||||
Limited partners' interest | $ (0.19) | $ (0.97) | $ (1.37) | $ (2.79) | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) | |||
June 30, 2022 | December 31, 2021 | ||
(Unaudited) | |||
ASSETS | (In millions) | ||
Current assets: | |||
Cash and cash equivalents | $ 27.5 | $ 38.1 | |
Accounts receivable | |||
Trade, less allowance for credit losses of | 373.7 | 216.8 | |
Other | 27.9 | 36.2 | |
401.6 | 253.0 | ||
Inventories | 325.5 | 326.6 | |
Prepaid expenses and other current assets | 19.5 | 14.9 | |
Total current assets | 774.1 | 632.6 | |
Property, plant and equipment, net | 1,149.7 | 949.7 | |
Restricted cash | — | 83.8 | |
Other noncurrent assets, net | 429.9 | 461.8 | |
Total assets | $ 2,353.7 | $ 2,127.9 | |
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||
Current liabilities: | |||
Accounts payable | $ 473.5 | $ 301.0 | |
Accrued interest payable | 34.4 | 27.7 | |
Accrued salaries, wages and benefits | 49.8 | 93.7 | |
Obligations under inventory financing agreements | 197.7 | 173.0 | |
Current portion of RINs obligation | 392.9 | 200.1 | |
Derivative liabilities | 39.0 | — | |
Other current liabilities | 102.9 | 96.9 | |
Current portion of long-term debt | 7.5 | 7.4 | |
Total current liabilities | 1,297.7 | 899.8 | |
Other long-term liabilities | 91.0 | 115.6 | |
Long-term RINs obligation, less current portion | — | 78.8 | |
Long-term debt, less current portion | 1,442.6 | 1,418.8 | |
Total liabilities | $ 2,831.3 | $ 2,513.0 | |
Commitments and contingencies | |||
Partners' capital (deficit): | |||
Limited partners' interest 79,150,108 units and 78,676,262 units issued and outstanding | $ (469.2) | $ (378.8) | |
General partner's interest | 1.6 | 3.8 | |
Accumulated other comprehensive loss | (10.0) | (10.1) | |
Total partners' capital (deficit) | (477.6) | (385.1) | |
Total liabilities and partners' capital (deficit) | $ 2,353.7 | $ 2,127.9 | |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) | |||
Six Months Ended June 30, | |||
2022 | 2021 | ||
(In millions) | |||
Operating activities | |||
Net loss | $ (110.8) | $ (224.5) | |
Non-cash activities | 129.7 | 57.2 | |
Non-cash RINs expense | 114.0 | 144.0 | |
Changes in assets and liabilities | (46.1) | (66.0) | |
Net cash provided by (used in) operating activities | 86.8 | (89.3) | |
Investing activities | |||
Additions to property, plant and equipment | (178.8) | (16.7) | |
Other investing activities | 0.2 | — | |
Net cash used in investing activities | (178.6) | (16.7) | |
Financing activities | |||
Proceeds from borrowings — revolving credit facility | 650.0 | 539.6 | |
Repayments of borrowings — revolving credit facility | (650.0) | (574.3) | |
Proceeds from borrowings — senior notes | 325.0 | — | |
Repayments of borrowings — senior notes | (325.0) | (70.0) | |
Proceeds from inventory financing | 1,008.4 | 420.8 | |
Payments on inventory financing | (1,014.4) | (347.6) | |
Proceeds from other financing obligations | 16.7 | 70.0 | |
Other financing activities | (13.3) | (7.4) | |
Net cash provided by (used in) financing activities | (2.6) | 31.1 | |
Net decrease in cash, cash equivalents and restricted cash | (94.4) | (74.9) | |
Cash, cash equivalents and restricted cash at beginning of period | 121.9 | 109.4 | |
Cash and cash equivalents at end of period | $ 27.5 | $ 34.5 | |
Supplemental disclosure of non-cash investing activities | |||
Non-cash property, plant and equipment additions | $ 71.3 | $ 5.7 | |
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 June 30, | Six Months Ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(In millions) | |||||||
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | (Unaudited) | ||||||
Net loss | $ (15.3) | $ (78.4) | $ (110.8) | $ (224.5) | |||
Add: | |||||||
Interest expense | 42.6 | 36.9 | 94.2 | 71.1 | |||
Depreciation and amortization | 24.7 | 26.0 | 49.0 | 52.2 | |||
Income tax expense | 0.6 | 0.9 | 1.3 | 1.1 | |||
EBITDA | $ 52.6 | $ (14.6) | $ 33.7 | $ (100.1) | |||
Add: | |||||||
LCM / LIFO gain | $ (1.2) | $ (17.7) | $ (7.2) | $ (40.4) | |||
Unrealized loss on derivative instruments | 53.5 | 6.9 | 75.6 | 13.2 | |||
Amortization of turnaround costs | 5.6 | 3.5 | 11.5 | 8.2 | |||
Loss on impairment and disposal of assets | — | 1.2 | — | 1.9 | |||
RINs mark-to-market loss | 68.7 | 48.2 | 78.1 | 123.2 | |||
Equity-based compensation and other items | (3.4) | 4.1 | 3.6 | 17.7 | |||
Other non-recurring expenses | — | 0.7 | 3.8 | 3.2 | |||
Adjusted EBITDA | $ 175.8 | $ 32.3 | $ 199.1 | $ 26.9 | |||
Less: | |||||||
Replacement and environmental capital expenditures (1) | $ 18.2 | $ 8.7 | $ 26.8 | $ 13.9 | |||
Cash interest expense (2) | 31.6 | 34.9 | 79.1 | 67.6 | |||
Turnaround costs | 7.7 | 24.9 | 17.5 | 32.2 | |||
Income tax expense | 0.6 | 0.9 | 1.3 | 1.1 | |||
Distributable Cash Flow | $ 117.7 | $ (37.1) | $ 74.4 | $ (87.9) | |||
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude turnaround costs. Environmental capital expenditures include asset additions to meet or exceed environmental and operating regulations. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT GROSS PROFIT (LOSS) TO SEGMENT ADJUSTED GROSS PROFIT (LOSS) (In millions, except per barrel data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
(Dollars in millions, except per barrel data) | |||||||
Reconciliation of Segment Gross Profit (Loss) to Segment Adjusted Gross Profit (Loss): | (Unaudited) | ||||||
Specialty Products and Solution segment gross profit (loss) | $ 88.1 | $ 7.7 | $ 105.8 | $ (30.6) | |||
LCM/LIFO inventory gain | — | (11.3) | (3.4) | (28.9) | |||
RINs mark to market loss | 39.9 | 26.0 | 45.2 | 69.7 | |||
Depreciation and amortization | 16.0 | 15.6 | 31.8 | 32.3 | |||
Specialty Products and Solutions segment Adjusted gross profit | $ 144.0 | $ 38.0 | $ 179.4 | $ 42.5 | |||
Performance Brands segment gross profit | $ 14.2 | $ 16.4 | $ 27.5 | $ 39.9 | |||
LCM/LIFO inventory gain | (0.2) | $ (0.5) | (0.2) | (0.5) | |||
Depreciation and amortization | 0.6 | $ 0.7 | 1.2 | 1.4 | |||
Performance Brands segment Adjusted gross profit | $ 14.6 | $ 16.6 | $ 28.5 | $ 40.8 | |||
Montana/Renewables segment gross profit (loss) | $ 41.6 | $ (5.0) | $ 43.3 | $ (32.2) | |||
LCM/LIFO inventory gain | (1.0) | (5.9) | (3.6) | (11.0) | |||
RINs mark to market loss | 24.0 | 18.3 | 27.3 | 41.6 | |||
Depreciation and amortization | 9.4 | 8.4 | 18.9 | 17.0 | |||
Montana/Renewables segment Adjusted gross profit | $ 74.0 | $ 15.8 | $ 85.9 | $ 15.4 | |||
Reported Specialty Products and Solutions segment gross profit (loss) per barrel | $ 15.72 | $ 1.55 | $ 9.51 | $ (3.51) | |||
LCM/LIFO inventory gain per barrel | — | (2.27) | (0.31) | (3.31) | |||
RINs mark to market loss per barrel | 7.12 | 5.23 | 4.06 | 7.99 | |||
Depreciation and amortization per barrel | 2.85 | 3.14 | 2.87 | 3.70 | |||
Specialty Products and Solutions segment Adjusted gross profit per barrel | $ 25.69 | $ 7.65 | $ 16.13 | $ 4.87 | |||
Reported Performance Brands segment gross profit per barrel | $ 100.00 | $ 123.31 | $ 100.00 | $ 145.62 | |||
LCM/LIFO inventory gain per barrel | (1.41) | (3.76) | (0.73) | (1.82) | |||
Depreciation and amortization per barrel | 4.23 | 5.26 | 4.37 | 5.11 | |||
Performance Brands segment Adjusted gross profit per barrel | $ 102.82 | $ 124.81 | $ 103.64 | $ 148.91 | |||
Reported Montana/Renewables segment gross profit (loss) per barrel | $ 16.12 | $ (1.93) | $ 8.54 | $ (6.33) | |||
LCM/LIFO inventory gain per barrel | (0.39) | (2.28) | (0.71) | (2.16) | |||
RINs mark to market loss per barrel | 9.30 | 7.08 | 5.39 | 8.17 | |||
Depreciation and amortization per barrel | 3.64 | 3.24 | 3.73 | 3.35 | |||
Montana/Renewables segment Adjusted gross profit per barrel | $ 28.67 | $ 6.11 | $ 16.95 | $ 3.03 | |||
Specialty Products and Solutions Adjusted EBITDA | $ 123.5 | $ 31.8 | $ 151.6 | $ 29.6 | |||
Specialty Products and Solutions sales | 979.2 | 543.8 | 1,748.6 | 923.9 | |||
Specialty Products and Solutions Adjusted EBITDA margin | 12.6 % | 5.8 % | 8.7 % | 3.2 % | |||
View original content:https://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-second-quarter-2022-results-301600763.html
SOURCE Calumet Specialty Products Partners, L.P.
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