Sisecam Resources LP Announces Fourth Quarter and Year Ended 2022 Financial Results
Sisecam Resources LP (NYSE: SIRE) reported robust financial results for Q4 and the full year of 2022. Q4 net sales reached $177.1 million, a 13.5% increase year-over-year, while annual net sales soared to $720.1 million, up 33.3%. Strong soda ash prices drove a 149.0% rise in net income to $128.0 million for the year. Adjusted EBITDA for Q4 was $41.9 million, up 29.3%, with significant cash flow improvements. Despite operational challenges with soda ash volumes sold, the company expects to address unsold inventory early in 2023. The partnership also announced a merger plan to acquire outstanding public units at $25.00 each.
- Net sales up 13.5% to $177.1 million for Q4 2022.
- Annual net sales increased by 33.3% to $720.1 million.
- Net income for Q4 rose 43.6% to $33.9 million.
- Adjusted EBITDA increased by 29.3% to $41.9 million for Q4.
- Distributable cash flow rose 22.0% to $16.1 million for Q4.
- Soda ash volume sold decreased by 15.0% in Q4 and 5.5% for the year.
- Operational challenges in loading export volumes affected sales.
- Higher energy and freight costs increased overall expenses.
Fourth Quarter and Year Ended 2022 Financial Highlights:
-
Net sales of
$177.1 million 13.5% over the prior-year fourth quarter; year-end net sales of$720.1 million 33.3% over the prior-year. Net sales increased for quarter endedDecember 31, 2022 overDecember 31, 2021 due to the increase in sales price per ton. -
Soda ash volume produced increased
4.6% and1.5% , respectively, over the prior-year fourth quarter and prior year; soda ash volume sold decreased15.0% and5.5% , respectively, over the prior-year fourth quarter and prior year. The decline in soda ash volumes sold versus the soda ash volumes produced year over year forDecember 31, 2022 andDecember 31, 2021 , was due to operational challenges in loading export volumes during the year endedDecember 31, 2022 . We expect these unsold volumes will be loaded and sold in the first quarter of 2023. -
Net income of
$33.9 million $10.3 million $128.0 million $76.6 million -
Adjusted EBITDA of
$41.9 million 29.3% over the prior-year fourth quarter; year-end Adjusted EBITDA of$162.0 million 83.1% over the prior-year. This increase is primarily attributable to the operating income increase. -
Earnings per unit of
$0.83 48.2% over the prior-year fourth quarter of$0.56 $3.13 163.0% over the prior-year. Net income attributable to the Partnership for the year endedDecember 31, 2022 increased significantly due to the increase in sales price. -
Net cash provided by operating activities of
$40.5 million December 31, 2022 increased56.4% over the prior-year fourth quarter; net cash provided by operating activities of$122.2 million December 31, 2022 increased by125.5% over the same period in the prior year. The increase in net cash provided by operating activities for 2022 is primarily due to improved net income during the quarter and year endedDecember 31, 2022 as compared to the same periods in 2021. -
Distributable cash flow attributable to
Sisecam Resources LP of$16.1 million 22.0% over the prior-year fourth quarter; year-end distributable cash flow of$64.2 million 121.4% over the prior-year. -
The distribution coverage ratio was 1.59 and 0.99 for the three months ended
December 31, 2022 and 2021, respectively; and 1.59 and 1.43 for the years endedDecember 31, 2022 and 2021, respectively.
Ertugrul Kaloglu, CEO, commented: The
Strong sales results, both domestically and internationally, drove strong fourth quarter and year-to-date sales helping to offset challenges resulting from inflation, recession concerns and continued supply chain issues.
Fourth quarter and year-to-date net sales of
Expense and cash flow management continues to be a focus for the team to reduce risks related to higher interest rates, inflation, supply chain pressures and a possible recession. In the current environment of increased uncertainty with interest rates, inflation and recession concerns, the Partnership remains focused on maintaining a conservative capital structure, working capital management liquidity flexibility to continue to meet future cash flow requirements.
Financial Highlights |
Three Months Ended
|
|
Year Ended
|
||||||||||||||
(Dollars in millions, except per unit amounts) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
||||||
Soda ash volume produced (millions of short tons) |
|
728.5 |
|
|
696.6 |
|
4.6 |
% |
|
|
2,760.7 |
|
|
2,720.5 |
|
1.5 |
% |
Soda ash volume sold (millions of short tons) |
|
631.3 |
|
|
742.9 |
|
(15.0 |
)% |
|
|
2,660.1 |
|
|
2,813.5 |
|
(5.5 |
)% |
Net sales |
$ |
177.1 |
|
$ |
156.0 |
|
13.5 |
% |
|
$ |
720.1 |
|
$ |
540.1 |
|
33.3 |
% |
Net income |
$ |
33.9 |
|
$ |
23.6 |
|
43.6 |
% |
|
$ |
128.0 |
|
$ |
51.4 |
|
149.0 |
% |
Net income attributable to |
$ |
16.8 |
|
$ |
11.7 |
|
43.6 |
% |
|
$ |
63.3 |
|
$ |
24.4 |
|
159.4 |
% |
Net income per limited partner unit |
$ |
0.83 |
|
$ |
0.56 |
|
48.2 |
% |
|
$ |
3.13 |
|
$ |
1.19 |
|
163.0 |
% |
Adjusted EBITDA (1) |
$ |
41.9 |
|
$ |
32.4 |
|
29.3 |
% |
|
$ |
162.0 |
|
$ |
88.5 |
|
83.1 |
% |
Adjusted EBITDA attributable to |
$ |
21.0 |
|
$ |
16.2 |
|
29.6 |
% |
|
$ |
81.1 |
|
$ |
43.9 |
|
84.7 |
% |
Net cash provided by operating activities |
$ |
40.5 |
|
$ |
25.9 |
|
56.4 |
% |
|
$ |
122.2 |
|
$ |
54.2 |
|
125.5 |
% |
Distributable cash flow attributable to |
$ |
16.1 |
|
$ |
13.2 |
|
22.0 |
% |
|
$ |
64.2 |
|
$ |
29.0 |
|
121.4 |
% |
Distribution coverage ratio (1) |
|
1.59 |
|
|
0.99 |
|
60.6 |
% |
|
|
1.59 |
|
|
1.43 |
|
11.2 |
% |
(1) |
See non-GAAP reconciliations |
Three Months Ended
The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.
|
|
Three Months Ended
|
|
Percent Increase/(Decrease) |
|||||||
Net sales (Dollars in millions): |
|
2022 |
|
2021 |
|
||||||
Domestic |
|
$ |
76.0 |
|
|
$ |
68.9 |
|
|
10.3 |
% |
International |
|
|
101.1 |
|
|
|
87.1 |
|
|
16.1 |
% |
Total net sales |
|
$ |
177.1 |
|
|
$ |
156.0 |
|
|
13.5 |
% |
Sales volumes (thousands of short tons): |
|
|
|
|
|
|
|||||
Domestic |
|
|
324.5 |
|
|
|
319.0 |
|
|
1.7 |
% |
International |
|
|
306.8 |
|
|
|
423.9 |
|
|
(27.6 |
)% |
Total soda ash volume sold |
|
|
631.3 |
|
|
|
742.9 |
|
|
(15.0 |
)% |
Average sales price (per short ton): |
|
|
|
|
|
|
|||||
Domestic |
|
$ |
234.44 |
|
|
$ |
215.99 |
|
|
8.5 |
% |
International |
|
$ |
327.08 |
|
|
$ |
205.47 |
|
|
59.2 |
% |
Average |
|
$ |
279.46 |
|
|
$ |
209.99 |
|
|
33.1 |
% |
Percent of net sales: |
|
|
|
|
|
|
|||||
Domestic sales |
|
|
42.9 |
% |
|
|
44.2 |
% |
|
(2.9 |
)% |
International sales |
|
|
57.1 |
% |
|
|
55.8 |
% |
|
2.3 |
% |
Total percent of net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
Percent of soda ash volume sold: |
|
|
|
|
|
|
|||||
Domestic volume |
|
|
51.4 |
% |
|
|
42.9 |
% |
|
19.8 |
% |
International volume |
|
|
48.6 |
% |
|
|
57.1 |
% |
|
(14.9 |
)% |
Total percent of soda ash volume sold |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
Consolidated Results
Net sales. Net sales increased by
Cost of products sold, including depreciation, depletion and amortization, freight costs and affiliates costs. Cost of products sold, including depreciation, depletion and amortization expense, freight costs and affiliates costs, increased by
Selling, general and administrative expenses. Our selling, general and administrative expenses increased by
Net income. As a result of the foregoing, net income increased by
Year Ended
The following table sets forth a summary of net sales, sales volumes and average sales price, and the percentage change between the periods.
|
|
Year Ended
|
|
Percent Increase/(Decrease) |
|||||||
Net sales (Dollars in millions, except average sales price): |
|
2022 |
|
2021 |
|
||||||
Domestic |
|
$ |
305.0 |
|
|
$ |
276.8 |
|
|
10.2 |
% |
International |
|
|
415.1 |
|
|
|
263.3 |
|
|
57.7 |
% |
Total net sales |
|
$ |
720.1 |
|
|
$ |
540.1 |
|
|
33.3 |
% |
Sales volumes (thousands of short tons): |
|
|
|
|
|
|
|||||
Domestic |
|
|
1,336.5 |
|
|
|
1,300.6 |
|
|
2.8 |
% |
International |
|
|
1,323.6 |
|
|
|
1,512.9 |
|
|
(12.5 |
)% |
Total soda ash volume sold |
|
|
2,660.1 |
|
|
|
2,813.5 |
|
|
(5.5 |
)% |
Average sales price (per short ton): |
|
|
|
|
|
|
|||||
Domestic |
|
$ |
228.20 |
|
|
$ |
212.82 |
|
|
7.2 |
% |
International |
|
$ |
313.06 |
|
|
$ |
174.04 |
|
|
79.9 |
% |
Average |
|
$ |
270.42 |
|
|
$ |
191.97 |
|
|
40.9 |
% |
Percent of net sales: |
|
|
|
|
|
|
|||||
Domestic sales |
|
|
42.4 |
% |
|
|
51.2 |
% |
|
(17.2 |
)% |
International sales |
|
|
57.6 |
% |
|
|
48.8 |
% |
|
18.0 |
% |
Total percent of net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
Percent of soda ash volume sold: |
|
|
|
|
|
|
|||||
Domestic volume |
|
|
50.2 |
% |
|
|
46.2 |
% |
|
8.7 |
% |
International volume |
|
|
49.8 |
% |
|
|
53.8 |
% |
|
(7.4 |
)% |
Total percent of soda ash volume sold |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
Consolidated Results
Net sales. Net sales increased by
Cost of products sold, including depreciation, depletion and amortization, freight costs and affiliates costs. Cost of products sold, including depreciation, depletion and amortization expense, freight costs and affiliates costs, increased by
Selling, general and administrative expenses. Our selling, general and administrative expenses increased
Operating income. Operating income increased by
Net income. As a result of the foregoing, net income increased by
CAPEX AND
The following table summarizes our capital expenditures, on an accrual basis, ore grade and ore to ash ratio:
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
(Dollars in millions) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Capital Expenditures |
|
|
|
|
|
|
|
||||||||
Maintenance |
$ |
8.1 |
|
|
$ |
6.2 |
|
|
$ |
26.7 |
|
|
$ |
27.0 |
|
Expansion |
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.8 |
|
Total |
$ |
8.1 |
|
|
$ |
6.4 |
|
|
$ |
26.9 |
|
|
$ |
27.8 |
|
Operating and Other Data: |
|
|
|
|
|
|
|
||||||||
Ore grade (1) |
|
87.1 |
% |
|
|
86.5 |
% |
|
|
86.8 |
% |
|
|
86.3 |
% |
Ore to ash ratio (2) |
1.57: 1.0 |
|
1.56: 1.0 |
|
1.58: 1.0 |
|
1.56: 1.0 |
||||||||
| ____________________________________ | |
(1) |
Ore grade is the percentage of raw trona ore that is recoverable as soda ash free of impurities. A higher ore grade will produce more soda ash than a lower ore grade. |
(2) |
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. In general, a lower ore to ash ratio results in lower costs and improved efficiency. |
FINANCIAL POSITION AND LIQUIDITY
As of
CASH FLOWS AND QUARTERLY CASH DISTRIBUTION
Cash Flows
Operating Activities
Cash provided by operating activities increased to
-
an increase of
149.0% of net income of$128.0 million December 31, 2022 , compared to$51.4 million December 31, 2021 , partly offset by -
an increase of
$8.8 million $39.2 million December 31, 2022 from$30.4 million December 31, 2021 . The increase was primarily due to higher accounts receivable balance atDecember 31, 2022 as a result of higher net sales for the three months endedDecember 31, 2022 compared to the same period endedDecember 31, 2021 . It is partly offset by the higher balances of accounts payable and accrued expenses as ofDecember 31, 2022 .
Investing Activities
We used cash flows of
Financing Activities
Cash used in financing activities was
Take Private Transaction
We also announced today that we entered into a definitive Agreement and Plan of Merger (the “Agreement”) pursuant to which
Quarterly Distribution
On
ABOUT
NATURE OF OPERATIONS
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. Forward-looking statements include all statements that are not historical facts and in some cases may be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “seek,” “anticipate,” “estimate,” “predict,” “forecast,” “project,” “potential,” “continue,” “may,” “will,” “could,” “should” or the negative of these terms 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: the outcome of the Transaction for a subsidiary of Parent to acquire all of our issued and outstanding common units not already owned by Parent or its affiliates will occur in 2023 or at all, changes in general economic conditions, changes in the Partnership’s relationships with its customers, the domestic and international 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 facility, 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 and processing of trona ore, and shipment of soda ash, the impact of a cybersecurity event, and our change of control effective
Supplemental Information |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
(In millions, except per unit data) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net sales |
$ |
177.1 |
|
|
$ |
156.0 |
|
|
$ |
720.1 |
|
|
$ |
540.1 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of products sold (excludes depreciation, depletion and amortization expense set forth separately below) |
|
123.8 |
|
|
|
117.5 |
|
|
|
515.2 |
|
|
|
425.0 |
|
Cost of products sold - affiliates |
|
4.2 |
|
|
|
0.5 |
|
|
|
15.1 |
|
|
|
3.5 |
|
Depreciation, depletion and amortization expense |
|
6.4 |
|
|
|
7.8 |
|
|
|
27.9 |
|
|
|
31.6 |
|
Selling, general and administrative expenses—affiliates |
|
5.3 |
|
|
|
4.2 |
|
|
|
20.0 |
|
|
|
17.2 |
|
Selling, general and administrative expenses—others |
|
1.8 |
|
|
|
1.4 |
|
|
|
8.0 |
|
|
|
6.3 |
|
Total operating costs and expenses |
|
141.5 |
|
|
|
131.4 |
|
|
|
586.2 |
|
|
|
483.6 |
|
Operating income |
|
35.6 |
|
|
|
24.6 |
|
|
|
133.9 |
|
|
|
56.5 |
|
Other income (expenses): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(1.6 |
) |
|
|
(0.9 |
) |
|
|
(5.8 |
) |
|
|
(5.0 |
) |
Other, net |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Total other expense, net |
|
(1.7 |
) |
|
|
(1.0 |
) |
|
|
(5.9 |
) |
|
|
(5.1 |
) |
Net income |
|
33.9 |
|
|
|
23.6 |
|
|
|
128.0 |
|
|
|
51.4 |
|
Net income attributable to non-controlling interest |
|
17.1 |
|
|
|
11.9 |
|
|
|
64.7 |
|
|
|
27.0 |
|
Net income attributable to |
$ |
16.8 |
|
|
$ |
11.7 |
|
|
$ |
63.3 |
|
|
$ |
24.4 |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Income/(loss) on derivative financial instruments |
|
34.0 |
|
|
|
(9.3 |
) |
|
|
31.6 |
|
|
|
5.9 |
|
Comprehensive income |
|
67.9 |
|
|
|
14.3 |
|
|
|
159.6 |
|
|
|
57.3 |
|
Comprehensive income attributable to non-controlling interest |
|
33.8 |
|
|
|
7.4 |
|
|
|
80.2 |
|
|
|
29.9 |
|
Comprehensive income attributable to |
$ |
34.1 |
|
|
$ |
6.9 |
|
|
$ |
79.4 |
|
|
$ |
27.4 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit: |
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit (basic) |
$ |
0.83 |
|
|
$ |
0.56 |
|
|
$ |
3.13 |
|
|
$ |
1.19 |
|
Net income per limited partner unit (diluted) |
$ |
0.83 |
|
|
$ |
0.56 |
|
|
$ |
3.13 |
|
|
$ |
1.19 |
|
|
|
|
|
|
|
|
|
||||||||
Limited partner units outstanding: |
|
|
|
|
|
|
|
||||||||
Weighted average limited partner units outstanding (basic) |
|
19.8 |
|
|
|
19.8 |
|
|
|
19.8 |
|
|
|
19.8 |
|
Weighted average limited partner units outstanding (diluted) |
|
19.8 |
|
|
|
19.8 |
|
|
|
19.8 |
|
|
|
19.8 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||
|
As of |
||||
(In millions) |
|
|
|
||
|
|
|
|
||
ASSETS |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
21.3 |
|
$ |
2.7 |
Accounts receivable - affiliates |
|
53.9 |
|
|
49.3 |
Accounts receivable, net |
|
170.8 |
|
|
116.9 |
Inventory |
|
47.7 |
|
|
30.1 |
Other current assets |
|
47.8 |
|
|
9.0 |
Total current assets |
|
341.5 |
|
|
208.0 |
Property, plant and equipment, net |
|
298.9 |
|
|
304.2 |
Other non-current assets |
|
31.5 |
|
|
31.1 |
Total assets |
$ |
671.9 |
|
$ |
543.3 |
LIABILITIES AND EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
8.8 |
|
$ |
8.6 |
Accounts payable |
|
37.1 |
|
|
21.9 |
Due to affiliates |
|
6.1 |
|
|
2.3 |
Accrued expenses |
|
59.6 |
|
|
41.0 |
Total current liabilities |
|
111.6 |
|
|
73.8 |
Long-term debt |
|
128.2 |
|
|
115.0 |
Other non-current liabilities |
|
16.1 |
|
|
9.8 |
Total liabilities |
|
255.9 |
|
|
198.6 |
|
|
|
|
||
Equity: |
|
|
|
||
Common unitholders - |
|
207.0 |
|
|
187.4 |
General partner unitholders - |
|
4.7 |
|
|
4.6 |
Accumulated other comprehensive loss |
|
19.2 |
|
|
3.0 |
Partners’ capital attributable to |
|
230.9 |
|
|
195.0 |
Non-controlling interest |
|
185.1 |
|
|
149.7 |
Total equity |
|
416.0 |
|
|
344.7 |
Total liabilities and partners’ equity |
$ |
671.9 |
|
$ |
543.3 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||
|
Year Ended |
||||||
(In millions) |
2022 |
|
2021 |
||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
128.0 |
|
|
$ |
51.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization expense |
|
28.3 |
|
|
|
32.2 |
|
Impairment and loss on disposal of assets, net |
|
4.1 |
|
|
|
— |
|
Equity-based compensation expense |
|
0.3 |
|
|
|
0.5 |
|
Other non-cash items |
|
0.7 |
|
|
|
0.5 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase)/decrease in: |
|
|
|
||||
Accounts receivable, net |
|
(54.0 |
) |
|
|
(34.3 |
) |
Accounts receivable - affiliates |
|
(4.6 |
) |
|
|
(4.7 |
) |
Inventory |
|
(18.4 |
) |
|
|
0.3 |
|
Other current and other non-current assets |
|
(0.9 |
) |
|
|
(1.8 |
) |
Increase/(decrease) in: |
|
|
|
||||
Accounts payable |
|
15.2 |
|
|
|
5.0 |
|
Due to affiliates |
|
3.7 |
|
|
|
(0.5 |
) |
Accrued expenses and other liabilities |
|
19.8 |
|
|
|
5.6 |
|
Net cash provided by operating activities |
|
122.2 |
|
|
|
54.2 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(28.3 |
) |
|
|
(25.7 |
) |
Insurance proceeds |
|
— |
|
|
|
0.8 |
|
Net cash used in investing activities |
|
(28.3 |
) |
|
|
(24.9 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings on Revolving Credit Facilities |
|
158.0 |
|
|
|
84.5 |
|
Borrowings on Equipment Financing Arrangements |
|
— |
|
|
|
29.0 |
|
Repayments on Revolving Credit Facilities |
|
(136.0 |
) |
|
|
(118.0 |
) |
Repayments on Equipment Financing Arrangements |
|
(8.6 |
) |
|
|
(3.0 |
) |
Debt issuance costs |
|
— |
|
|
|
(1.4 |
) |
Distributions to common unitholders, general partner and non-controlling interest |
|
(88.5 |
) |
|
|
(18.1 |
) |
Other |
|
(0.2 |
) |
|
|
(0.1 |
) |
Net cash used in financing activities |
|
(75.3 |
) |
|
|
(27.1 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
18.6 |
|
|
|
2.2 |
|
Cash and cash equivalents at beginning of period |
|
2.7 |
|
|
|
0.5 |
|
Cash and cash equivalents at end of period |
$ |
21.3 |
|
|
$ |
2.7 |
|
Supplemental disclosure of cash flow information: |
|
|
|
||||
Interest paid during the period |
$ |
5.1 |
|
|
$ |
4.6 |
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
||||
Accrued capital expenditures |
$ |
2.8 |
|
|
$ |
4.1 |
|
|
|
|
|
||||
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles in
- 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, equity-based compensation expense 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, each as attributable to
Adjusted EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess the Partnership’s operating performance and liquidity. Adjusted EBITDA may provide an operating performance comparison to other publicly traded partnerships in our industry, without regard to historical cost basis or financing methods. Adjusted EBITDA may also be used to assess the Partnership’s liquidity including such things as the ability of our assets to generate sufficient cash flows to make distributions to our unitholders and our ability to incur and service debt and fund capital expenditures.
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 the Partnership’s liquidity, including:
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders; and
- our ability to incur and service debt and fund capital expenditures.
We believe that the presentation of Adjusted EBITDA provides useful information to our investors in assessing our financial conditions, results of operations and liquidity. Distributable cash flow and distribution coverage ratio provide useful information to investors in assessing our liquidity. The GAAP measures most directly comparable to Adjusted EBITDA is net income and net cash provided by operating activities. The GAAP measure most directly comparable to distributable cash flow and distribution coverage ratio is 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 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
|
|
Year Ended
|
||||||||||||
(Dollars in millions, except per unit data) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Reconciliation of Net income to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
33.9 |
|
|
$ |
23.6 |
|
|
$ |
128.0 |
|
|
$ |
51.4 |
|
Add backs: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization expense |
|
6.4 |
|
|
|
7.8 |
|
|
|
27.9 |
|
|
|
31.6 |
|
Interest expense, net |
|
1.6 |
|
|
|
0.9 |
|
|
|
5.8 |
|
|
|
5.0 |
|
Equity-based compensation expense, net of forfeitures |
|
— |
|
|
|
0.1 |
|
|
|
0.3 |
|
|
|
0.5 |
|
Adjusted EBITDA |
|
41.9 |
|
|
|
32.4 |
|
|
|
162.0 |
|
|
|
88.5 |
|
Less: Adjusted EBITDA attributable to non-controlling interest |
|
20.9 |
|
|
|
16.2 |
|
|
|
80.9 |
|
|
|
44.6 |
|
Adjusted EBITDA attributable to |
$ |
21.0 |
|
|
$ |
16.2 |
|
|
$ |
81.1 |
|
|
$ |
43.9 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of distributable cash flow to Adjusted EBITDA attributable to |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA attributable to |
$ |
21.0 |
|
|
$ |
16.2 |
|
|
$ |
81.1 |
|
|
$ |
43.9 |
|
Less: Cash interest expense, net attributable to |
|
0.7 |
|
|
|
0.5 |
|
|
$ |
2.6 |
|
|
|
2.3 |
|
Less: Maintenance capital expenditures attributable to |
|
4.2 |
|
|
|
2.5 |
|
|
|
14.3 |
|
|
|
12.6 |
|
Distributable cash flow attributable to |
$ |
16.1 |
|
|
$ |
13.2 |
|
|
$ |
64.2 |
|
|
$ |
29.0 |
|
|
|
|
|
|
|
|
|
||||||||
Cash distribution declared per unit |
$ |
0.50 |
|
|
$ |
0.65 |
|
|
$ |
2.00 |
|
|
$ |
0.99 |
|
Total distributions to limited partner unitholders and general partner |
$ |
10.1 |
|
|
$ |
13.4 |
|
|
$ |
40.4 |
|
|
$ |
20.3 |
|
Distribution coverage ratio (a) |
|
1.59 |
|
|
|
0.99 |
|
|
|
1.59 |
|
|
|
1.43 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net cash from operating activities to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
40.5 |
|
|
$ |
25.9 |
|
|
$ |
122.2 |
|
|
$ |
54.2 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Amortization of long-term loan financing |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
Net change in working capital |
|
0.9 |
|
|
|
6.0 |
|
|
|
39.2 |
|
|
|
30.4 |
|
Interest expense, net |
|
1.6 |
|
|
|
0.9 |
|
|
|
5.8 |
|
|
|
5.0 |
|
Other non-cash items and disposal of assets, net |
|
(0.9 |
) |
|
|
(0.2 |
) |
|
|
(4.8 |
) |
|
|
(0.5 |
) |
Adjusted EBITDA |
|
41.9 |
|
|
|
32.4 |
|
|
|
162.0 |
|
|
|
88.5 |
|
Less: Adjusted EBITDA attributable to non-controlling interest |
|
20.9 |
|
|
|
16.2 |
|
|
|
80.9 |
|
|
|
44.6 |
|
Adjusted EBITDA attributable to |
|
21.0 |
|
|
|
16.2 |
|
|
|
81.1 |
|
|
|
43.9 |
|
Less: Cash interest expense, net attributable to |
|
0.7 |
|
|
|
0.5 |
|
|
|
2.6 |
|
|
|
2.3 |
|
Less: Maintenance capital expenditures attributable to |
|
4.2 |
|
|
|
2.5 |
|
|
|
14.3 |
|
|
|
12.6 |
|
Distributable cash flow attributable to |
$ |
16.1 |
|
|
$ |
13.2 |
|
|
$ |
64.2 |
|
|
$ |
29.0 |
|
| ____________________________________ | |
(a) |
Distribution coverage ratio is calculated as distributable cash flow attributable to |
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:
(Dollars in millions, except per unit data) |
|
Cumulative Four Quarters ended Q4-2022 |
|
Q4-2022 |
|
Q3-2022 |
|
Q2-2022 |
|
Q1-2022 |
|
Q4-2021 |
||||||
Reconciliation of Net income to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
|
$ |
128.0 |
|
|
33.9 |
|
$ |
31.1 |
|
$ |
31.2 |
|
$ |
31.8 |
|
$ |
23.6 |
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization expense |
|
|
27.9 |
|
|
6.4 |
|
|
7.8 |
|
|
7.2 |
|
|
6.5 |
|
|
7.8 |
Interest expense, net |
|
|
5.8 |
|
|
1.6 |
|
|
1.7 |
|
|
1.4 |
|
|
1.1 |
|
|
0.9 |
Equity-based compensation (benefit) expense, net of forfeitures |
|
|
0.3 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
— |
|
|
0.1 |
Adjusted EBITDA |
|
|
162.0 |
|
|
41.9 |
|
|
40.6 |
|
|
40.1 |
|
|
39.4 |
|
|
32.4 |
Less: Adjusted EBITDA attributable to non-controlling interest |
|
|
80.9 |
|
|
20.9 |
|
|
20.3 |
|
|
19.9 |
|
|
19.7 |
|
|
16.2 |
Adjusted EBITDA attributable to |
|
$ |
81.1 |
|
$ |
21.0 |
|
$ |
20.3 |
|
$ |
20.2 |
|
$ |
19.7 |
|
$ |
16.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA attributable to |
|
$ |
81.1 |
|
$ |
21.0 |
|
$ |
20.3 |
|
$ |
20.2 |
|
$ |
19.7 |
|
$ |
16.2 |
Less: Cash interest expense, net attributable to |
|
|
2.6 |
|
|
0.7 |
|
|
0.8 |
|
|
0.6 |
|
|
0.5 |
|
|
0.5 |
Less: Maintenance capital expenditures attributable to |
|
|
14.3 |
|
|
4.2 |
|
|
2.7 |
|
|
3.5 |
|
|
4.1 |
|
|
2.5 |
Distributable cash flow attributable to |
|
$ |
64.2 |
|
$ |
16.1 |
|
$ |
16.8 |
|
$ |
16.1 |
|
$ |
15.1 |
|
$ |
13.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash distribution declared per unit |
|
$ |
2.00 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.65 |
Total distributions to unitholders and general partner |
|
$ |
40.4 |
|
$ |
10.1 |
|
$ |
10.1 |
|
$ |
10.1 |
|
$ |
10.1 |
|
$ |
13.4 |
Distribution coverage ratio |
|
|
1.59 |
|
|
1.59 |
|
|
1.67 |
|
|
1.60 |
|
|
1.50 |
|
|
0.99 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005987/en/
Investor Relations
Mehmet Nedim Kulaksizoglu
Chief Financial Officer
(770) 375-2321
nkulaksizoglu@sisecam.com
Source:
FAQ
What were Sisecam Resources' Q4 2022 financial results?
What is the year-end net income for Sisecam Resources in 2022?
What is the expected cash distribution for Sisecam Resources' Q4 2022?
What is the merger plan announced by Sisecam Resources?
