Sisecam Resources LP Announces Third Quarter 2022 Financial Results
Sisecam Resources LP (NYSE: SIRE) reported robust financial results for Q3 2022, with net sales soaring by 40.5% to $190.5 million and year-to-date sales up 41.4% at $543.0 million. Notably, net income rose 101.9% year-over-year to $31.1 million, while basic earnings per unit increased 111.1% to $0.76. Adjusted EBITDA jumped 68.5% to $40.6 million. Despite slight declines in soda ash volumes produced and sold, the spike in average sales prices, especially internationally, has driven significant growth. The company remains focused on financial resilience amid economic uncertainties.
- Net sales rose 40.5% to $190.5 million for Q3 2022.
- Year-to-date net sales increased 41.4% to $543.0 million.
- Net income up 101.9% year-over-year at $31.1 million.
- Basic earnings per unit increased 111.1% to $0.76.
- Adjusted EBITDA grew 68.5% to $40.6 million.
- Soda ash volume produced decreased 4.6% from prior year.
- Soda ash volume sold down 1.5% from prior year.
- Higher operating costs impacted by inflation and supply chain issues.
Third Quarter 2022 Financial Highlights:
-
Net sales of
increased$190.5 million 40.5% from the prior-year third quarter; year-to-date net sales of increased$543.0 million 41.4% over the prior year for the same period. This increase is primarily attributable to a sales price increase of42.6% even though the sales volume slightly decreased by1.5% for the three months endedSeptember 30, 2022 , compared to the three months endedSeptember 30, 2021 . The increase for the nine months endedSeptember 30, 2022 from the nine months endedSeptember 30, 2021 , primarily driven by an increase in the average sales price by44.3% due to both international and domestic higher demand. The higher sales prices were due to strong demand in the domestic and international markets. -
Soda ash volume produced decreased
4.6% from the prior-year third quarter, and soda ash volume sold decreased1.5% from the prior-year third quarter; year-to-date soda ash volume produced increased0.4% from the prior-year, and soda ash volume sold decreased2.0% from the prior-year for the same period. -
Net income of
increased$31.1 million from the prior-year third quarter; year-to-date net income of$15.7 million increased$94.1 million over the prior year for the same period. The increases are primarily due to higher average sales price partly offset by inflationary impact on operating costs.$66.3 million -
Adjusted EBITDA of
increased$40.6 million 68.5% from the prior-year third quarter; year-to-date Adjusted EBITDA of increased$120.1 million 114.1% over the prior year for the same period. This increase is primarily attributable to the operating income increase. -
Basic earnings per unit of
for the quarter increased$0.76 111.1% over the prior-year third quarter of ; year-to-date basic earnings per unit of$0.36 increased$2.30 265.1% over the prior year for the same period. -
Net cash provided by operating activities of
increased$49.3 million over prior-year third quarter; year-to-date net cash provided by operating activities of$39.4 million increased$81.7 million over the prior year in the same period.$53.4 million -
Distributable cash flow of
increased$16.8 million 104.9% compared to the prior-year third quarter; year-to-date distributable cash flow of increased$48.1 million 204.4% over the prior year for the same period.
Ertugrul Kaloglu, CEO, commented: The
Strong sales results, both domestically and internationally, drove strong third quarter and YTD sales helping to offset challenges resulting from inflation, recession concerns and continued supply chain issues.
Third quarter and Year-to-Date net sales of
Expense and cash flow management continue to be a focus for the team to reduce risks related to higher interest rates, inflation, supply chain pressures and a possible recession. The company is preparing for possible future uncertainty by prioritizing balance sheet management with a conservative capital structure to continue to meet future cash flow needs.
We are pleased with our strong commercial position and stable operations which have helped drive superior results in the third quarter. Going forward, our focus will remain on reducing future operational and financial risks to manage potential impacts from uncertainty in the economy.
Financial Highlights |
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
(Dollars in millions, except per unit amounts) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
||||||
Soda ash volume produced (millions of short tons) |
|
685.9 |
|
|
719.2 |
|
(4.6 |
) % |
|
|
2,032.2 |
|
|
2,023.9 |
|
0.4 |
% |
Soda ash volume sold (millions of short tons) |
|
690.1 |
|
|
700.5 |
|
(1.5 |
) % |
|
|
2,028.9 |
|
|
2,070.6 |
|
(2.0 |
) % |
Net sales |
$ |
190.5 |
|
$ |
135.6 |
|
40.5 |
% |
|
$ |
543.0 |
|
$ |
384.1 |
|
41.4 |
% |
Net income |
$ |
31.1 |
|
$ |
15.4 |
|
101.9 |
% |
|
$ |
94.1 |
|
$ |
27.8 |
|
238.5 |
% |
Net income attributable to |
$ |
15.4 |
|
$ |
7.4 |
|
108.1 |
% |
|
$ |
46.5 |
|
$ |
12.7 |
|
266.1 |
% |
Net income per limited partner unit |
$ |
0.76 |
|
$ |
0.36 |
|
111.1 |
% |
|
$ |
2.30 |
|
$ |
0.63 |
|
265.1 |
% |
Adjusted EBITDA(1) |
$ |
40.6 |
|
$ |
24.1 |
|
68.5 |
% |
|
$ |
120.1 |
|
$ |
56.1 |
|
114.1 |
% |
Adjusted EBITDA attributable to |
$ |
20.3 |
|
$ |
12.0 |
|
69.2 |
% |
|
$ |
60.2 |
|
$ |
27.7 |
|
117.3 |
% |
Net cash provided (used) by operating activities |
$ |
49.3 |
|
$ |
9.9 |
|
398.0 |
% |
|
$ |
81.7 |
|
$ |
28.3 |
|
188.7 |
% |
Distributable cash flow attributable to |
$ |
16.8 |
|
$ |
8.2 |
|
104.9 |
% |
|
$ |
48.1 |
|
$ |
15.8 |
|
204.4 |
% |
Distribution coverage ratio (1) |
|
1.67 |
|
|
1.19 |
|
N/A |
|
|
|
1.59 |
|
|
2.29 |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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) |
|||||||
(Dollars in millions, except for average sales price data): |
|
2022 |
|
|
|
2021 |
|
|
||
Net sales: |
|
|
|
|
|
|||||
Domestic |
$ |
80.4 |
|
|
$ |
71.1 |
|
|
13.1 |
% |
International |
|
110.1 |
|
|
|
64.5 |
|
|
70.7 |
% |
Total net sales |
$ |
190.5 |
|
|
$ |
135.6 |
|
|
40.5 |
% |
Sales volumes (thousands of short tons): |
|
|
|
|
|
|||||
Domestic |
|
354.0 |
|
|
|
336.7 |
|
|
5.1 |
% |
International |
|
336.1 |
|
|
|
363.8 |
|
|
(7.6 |
)% |
Total soda ash volume sold |
|
690.1 |
|
|
|
700.5 |
|
|
(1.5 |
)% |
Average sales price (per short ton):(1) |
|
|
|
|
|
|||||
Domestic |
$ |
227.11 |
|
|
$ |
211.17 |
|
|
7.5 |
% |
International |
$ |
327.55 |
|
|
$ |
177.30 |
|
|
84.7 |
% |
Average |
$ |
276.04 |
|
|
$ |
193.58 |
|
|
42.6 |
% |
Percent of net sales: |
|
|
|
|
|
|||||
Domestic sales |
|
42.2 |
% |
|
|
52.4 |
% |
|
(19.5 |
)% |
International sales |
|
57.8 |
% |
|
|
47.6 |
% |
|
21.4 |
% |
Total percent of net sales |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
Percent of sales volumes: |
|
|
|
|
|
|||||
Domestic volume |
|
51.3 |
% |
|
|
48.1 |
% |
|
6.7 |
% |
International volume |
|
48.7 |
% |
|
|
51.9 |
% |
|
(6.2 |
)% |
Total percent of volume sold |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|||||
(1) Average sales price per short ton is computed as net sales divided by volumes sold |
||||||||||
Consolidated Results
Net sales. Net sales increased by
Cost of products sold, including depreciation, depletion and amortization expense, freight costs and affiliates. Cost of products sold, including depreciation, depletion and amortization expense, freight costs and affiliates increased by
Selling, general and administrative expenses. Our selling, general and administrative expenses decreased
Operating income. As a result of the foregoing, operating income increased by approximately
Net income. As a result of the foregoing, net income increased by approximately
Nine 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.
|
Nine Months Ended |
|
Percent Increase/ (Decrease) |
|||||||
(Dollars in millions, except for average sales price data): |
|
2022 |
|
|
|
2021 |
|
|
||
Net sales: |
|
|
|
|
|
|||||
Domestic |
$ |
228.9 |
|
|
$ |
207.9 |
|
|
10.1 |
% |
International |
|
314.1 |
|
|
|
176.2 |
|
|
78.3 |
% |
Total net sales |
$ |
543.0 |
|
|
$ |
384.1 |
|
|
41.4 |
% |
Sales volumes (thousands of short tons): |
|
|
|
|
|
|||||
Domestic |
|
1,012.0 |
|
|
|
981.6 |
|
|
3.1 |
% |
International |
|
1,016.9 |
|
|
|
1,089.0 |
|
|
(6.6 |
)% |
Total soda ash volume sold |
|
2,028.9 |
|
|
|
2,070.6 |
|
|
(2.0 |
)% |
Average sales price (per short ton):(1) |
|
|
|
|
|
|||||
Domestic |
$ |
226.19 |
|
|
$ |
211.80 |
|
|
6.8 |
% |
International |
$ |
308.88 |
|
|
$ |
161.80 |
|
|
90.9 |
% |
Average |
$ |
267.63 |
|
|
$ |
185.50 |
|
|
44.3 |
% |
Percent of net sales: |
|
|
|
|
|
|||||
Domestic sales |
|
42.2 |
% |
|
|
54.1 |
% |
|
(22.0 |
)% |
International sales |
|
57.8 |
% |
|
|
45.9 |
% |
|
25.9 |
% |
Total percent of net sales |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
Percent of sales volumes: |
|
|
|
|
|
|||||
Domestic volume |
|
49.9 |
% |
|
|
47.4 |
% |
|
5.3 |
% |
International volume |
|
50.1 |
% |
|
|
52.6 |
% |
|
(4.8 |
)% |
Total percent of volume sold |
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|||||
(1) Average sales price per short ton is computed as net sales divided by volumes sold |
||||||||||
Consolidated Results
Net sales. Net sales increased by
Cost of products sold, including depreciation, depletion and amortization expense, freight costs and affiliates. Cost of products sold, including depreciation, depletion and amortization expense, freight costs and affiliates, increased by
Selling, general and administrative expenses. Our selling, general and administrative expenses increased by
Operating income. As a result of the foregoing, 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 |
|
Nine Months Ended |
||||||||||||
(In millions) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Capital Expenditures: |
|
|
|
|
|
|
|
||||||||
Maintenance |
$ |
4.3 |
|
|
$ |
4.8 |
|
|
$ |
18.6 |
|
|
$ |
20.8 |
|
Expansion |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.6 |
|
Total |
$ |
4.4 |
|
|
$ |
4.9 |
|
|
$ |
18.8 |
|
|
$ |
21.4 |
|
Operating and Other Data: |
|
|
|
|
|
|
|
||||||||
Ore grade(1) |
|
86.6 |
% |
|
|
87.3 |
% |
|
|
86.7 |
% |
|
|
86.0 |
% |
Ore to ash ratio(2) |
|
1.60:1.0 |
|
|
|
1.55:1.0 |
|
|
|
1.59:1.0 |
|
|
|
1.57:1.0 |
|
|
|
|
|
|
|
|
|
||||||||
(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. |
|||||||||||||||
In connection with the acquisition by
Cash Flows Discussion
Operating Activities
Our operating activities during the nine months ended
-
an increase of
238.5% as a result of net income of during the nine months ended$94.1 million September 30, 2022 , compared to for the prior-year period; and$27.8 million -
a partial offset by
more cash used in working capital during the nine months ended$13.9 million September 30, 2022 , compared to the nine months endedSeptember 30, 2021 . The increase of the cash used in working capital period over period was primarily due to a higher accounts receivable balance atSeptember 30, 2022 , primarily due to higher international sales during nine months endedSeptember 30, 2022 , as compared to the nine months endedSeptember 30, 2021 .
Investing Activities
We used cash flows of
Financing Activities
Cash used in financing activities of
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 non-binding proposal made by
Supplemental Information |
|||||||||||||||
|
|||||||||||||||
|
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(In millions, except per unit data) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
$ |
190.5 |
|
|
$ |
135.6 |
|
|
$ |
543.0 |
|
|
$ |
384.1 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of products sold including freight costs (excludes depreciation, depletion and amortization expense set forth separately below) |
|
138.6 |
|
|
|
104.0 |
|
|
|
391.4 |
|
|
|
307.5 |
|
Cost of product sold - affiliates |
|
4.7 |
|
|
|
0.8 |
|
|
|
10.9 |
|
|
|
3.0 |
|
Depreciation, depletion and amortization expense |
|
7.8 |
|
|
|
7.4 |
|
|
|
21.5 |
|
|
|
23.8 |
|
Selling, general and administrative expenses—affiliates |
|
5.2 |
|
|
|
5.2 |
|
|
|
14.7 |
|
|
|
13.0 |
|
Selling, general and administrative expenses—others |
|
1.4 |
|
|
|
1.5 |
|
|
|
6.2 |
|
|
|
4.9 |
|
Total operating costs and expenses |
|
157.7 |
|
|
|
118.9 |
|
|
|
444.7 |
|
|
|
352.2 |
|
Operating income |
|
32.8 |
|
|
|
8.3 |
|
|
|
98.3 |
|
|
|
31.9 |
|
Other expenses: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(1.7 |
) |
|
|
(1.3 |
) |
|
|
(4.2 |
) |
|
|
(4.1 |
) |
Total other expense, net |
|
(1.7 |
) |
|
|
(1.3 |
) |
|
|
(4.2 |
) |
|
|
(4.1 |
) |
Net income |
|
31.1 |
|
|
|
15.4 |
|
|
|
94.1 |
|
|
|
27.8 |
|
Net income attributable to noncontrolling interest |
|
15.7 |
|
|
|
8.0 |
|
|
|
47.6 |
|
|
|
15.1 |
|
Net income attributable to |
|
15.4 |
|
|
|
7.4 |
|
|
|
46.5 |
|
|
|
12.7 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
||||||||
Income/(loss) on derivative financial instruments |
|
0.6 |
|
|
|
8.6 |
|
|
|
(2.4 |
) |
|
|
15.2 |
|
Comprehensive income |
|
31.7 |
|
|
|
24.0 |
|
|
|
91.7 |
|
|
|
43.0 |
|
Comprehensive income attributable to noncontrolling interest |
|
16.0 |
|
|
|
12.2 |
|
|
|
46.4 |
|
|
|
22.5 |
|
Comprehensive income attributable to |
$ |
15.7 |
|
|
$ |
11.8 |
|
|
$ |
45.3 |
|
|
$ |
20.5 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit: |
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit (basic) |
$ |
0.76 |
|
|
$ |
0.36 |
|
|
$ |
2.30 |
|
|
$ |
0.63 |
|
Net income per limited partner unit (diluted) |
$ |
0.76 |
|
|
$ |
0.36 |
|
|
$ |
2.30 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
||||||||
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 |
|
|
|||||
|
|||||
|
As of |
||||
(In millions) |
|
|
|
||
ASSETS |
|
|
|
||
Current Assets: |
|
|
|
||
Cash and cash equivalents |
$ |
14.9 |
|
$ |
2.7 |
Accounts receivable - affiliates |
|
52.9 |
|
|
49.3 |
Accounts receivable, net of allowance for credit losses |
|
159.2 |
|
|
116.9 |
Inventory |
|
35.4 |
|
|
30.1 |
Other current assets |
|
12.5 |
|
|
9.0 |
Total current assets |
|
274.9 |
|
|
208.0 |
Property, plant and equipment, net |
|
298.6 |
|
|
304.2 |
Other non-current assets |
|
32.7 |
|
|
31.1 |
Total assets |
$ |
606.2 |
|
$ |
543.3 |
LIABILITIES AND EQUITY |
|
|
|
||
Current liabilities: |
|
|
|
||
Current portion of long-term debt |
$ |
8.7 |
|
$ |
8.6 |
Accounts payable |
|
22.8 |
|
|
21.9 |
Due to affiliates |
|
3.9 |
|
|
2.3 |
Accrued expenses |
|
53.7 |
|
|
41.0 |
Total current liabilities |
|
89.1 |
|
|
73.8 |
Long-term debt |
|
133.4 |
|
|
115.0 |
Other non-current liabilities |
|
14.9 |
|
|
9.8 |
Total liabilities |
|
237.4 |
|
|
198.6 |
Commitments and Contingencies |
|
|
|
||
Equity: |
|
|
|
||
Common unitholders - |
|
200.4 |
|
|
187.4 |
General partner unitholders - |
|
4.5 |
|
|
4.6 |
Accumulated other comprehensive loss |
|
1.8 |
|
|
3.0 |
Partners’ capital attributable to |
|
206.7 |
|
|
195.0 |
Non-controlling interest |
|
162.1 |
|
|
149.7 |
Total equity |
|
368.8 |
|
|
344.7 |
Total liabilities and equity |
$ |
606.2 |
|
$ |
543.3 |
|
|||||||
|
|||||||
|
Nine Months Ended |
||||||
(In millions) |
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
94.1 |
|
|
$ |
27.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization expense |
|
21.7 |
|
|
|
24.2 |
|
Loss on disposal of assets, net |
|
3.4 |
|
|
|
— |
|
Equity-based compensation expenses |
|
0.3 |
|
|
|
0.4 |
|
Other non-cash items |
|
0.5 |
|
|
|
0.3 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable - affiliates |
|
(3.6 |
) |
|
|
(3.5 |
) |
Accounts receivable, net of allowance for credit losses |
|
(42.3 |
) |
|
|
(26.8 |
) |
Inventory |
|
(6.7 |
) |
|
|
2.9 |
|
Other current and non-current assets |
|
(0.8 |
) |
|
|
(1.2 |
) |
Accounts payable |
|
1.1 |
|
|
|
2.7 |
|
Due to affiliates |
|
1.6 |
|
|
|
(0.9 |
) |
Accrued expenses and other liabilities |
|
12.4 |
|
|
|
2.4 |
|
Net cash provided (used) by operating activities |
|
81.7 |
|
|
|
28.3 |
|
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(20.2 |
) |
|
|
(20.7 |
) |
Net cash used in investing activities |
|
(20.2 |
) |
|
|
(20.7 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings on Sisecam Wyoming Credit Facility |
|
125.5 |
|
|
|
67.5 |
|
Borrowings on Sisecam Resources LP Credit Facility |
|
— |
|
|
|
1.0 |
|
Repayments on Sisecam Wyoming Credit Facility |
|
(100.5 |
) |
|
|
(65.0 |
) |
Repayments on Sisecam Resources LP Credit Facility |
|
— |
|
|
|
(2.0 |
) |
Repayments on Sisecam Wyoming Equipment Financing Arrangement |
|
(6.5 |
) |
|
|
(2.3 |
) |
Distributions to common unitholders, general partner, and noncontrolling interest |
|
(67.7 |
) |
|
|
(3.9 |
) |
Other |
|
(0.1 |
) |
|
|
(0.4 |
) |
Net cash used in financing activities |
|
(49.3 |
) |
|
|
(5.1 |
) |
Net increase in cash and cash equivalents |
|
12.2 |
|
|
|
2.5 |
|
Cash and cash equivalents at beginning of period |
|
2.7 |
|
|
|
0.5 |
|
Cash and cash equivalents at end of period |
$ |
14.9 |
|
|
$ |
3.0 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Interest paid during the period |
$ |
3.7 |
|
|
$ |
3.5 |
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
||||
Capital expenditures on account |
$ |
2.7 |
|
|
$ |
2.7 |
|
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 GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures of Adjusted EBITDA and distributable cash flow:
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In millions, except per unit data) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Reconciliation of net income to Adjusted EBITDA attributable to |
|
|
|||||||||||||
Net income |
$ |
31.1 |
|
|
$ |
15.4 |
|
|
$ |
94.1 |
|
|
$ |
27.8 |
|
Add backs: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization expense |
|
7.8 |
|
|
|
7.4 |
|
|
|
21.5 |
|
|
|
23.8 |
|
Interest expense, net |
|
1.7 |
|
|
|
1.3 |
|
|
|
4.2 |
|
|
|
4.1 |
|
Equity-based compensation expense, net of forfeitures |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.4 |
|
Adjusted EBITDA |
|
40.6 |
|
|
|
24.1 |
|
|
|
120.1 |
|
|
|
56.1 |
|
Less: Adjusted EBITDA attributable to noncontrolling interest |
|
20.3 |
|
|
|
12.1 |
|
|
|
59.9 |
|
|
|
28.4 |
|
Adjusted EBITDA attributable to |
$ |
20.3 |
|
|
$ |
12.0 |
|
|
$ |
60.2 |
|
|
$ |
27.7 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net cash from operating activities to Adjusted EBITDA and distributable cash flow attributable to |
|||||||||||||||
Net cash provided by operating activities |
$ |
49.3 |
|
|
$ |
9.9 |
|
|
$ |
81.7 |
|
|
$ |
28.3 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Amortization of long-term loan financing |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.4 |
) |
Net change in working capital |
|
(8.5 |
) |
|
|
13.1 |
|
|
|
38.3 |
|
|
|
24.4 |
|
Interest expense, net |
|
1.7 |
|
|
|
1.3 |
|
|
|
4.2 |
|
|
|
4.1 |
|
Other non-cash items and loss on disposal of assets, net |
|
(1.8 |
) |
|
|
(0.1 |
) |
|
|
(3.8 |
) |
|
|
(0.3 |
) |
Adjusted EBITDA |
|
40.6 |
|
|
|
24.1 |
|
|
|
120.1 |
|
|
|
56.1 |
|
Less: Adjusted EBITDA attributable to noncontrolling interest |
|
20.3 |
|
|
|
12.1 |
|
|
|
59.9 |
|
|
|
28.4 |
|
Adjusted EBITDA attributable to |
|
20.3 |
|
|
|
12.0 |
|
|
|
60.2 |
|
|
|
27.7 |
|
Less: Cash interest expense, net attributable to |
|
0.8 |
|
|
|
0.6 |
|
|
|
1.9 |
|
|
|
1.8 |
|
Less: Maintenance capital expenditures attributable to |
|
2.7 |
|
|
|
3.2 |
|
|
|
10.2 |
|
|
|
10.1 |
|
Distributable cash flow attributable to |
$ |
16.8 |
|
|
$ |
8.2 |
|
|
$ |
48.1 |
|
|
$ |
15.8 |
|
|
|
|
|
|
|
|
|
||||||||
Cash distribution declared per unit |
$ |
0.50 |
|
|
$ |
0.34 |
|
|
$ |
1.50 |
|
|
$ |
0.34 |
|
Total distributions to unitholders and general partner |
$ |
10.1 |
|
|
$ |
6.9 |
|
|
$ |
30.3 |
|
|
$ |
6.9 |
|
Distribution coverage ratio |
|
1.67 |
|
|
|
1.19 |
|
|
|
1.59 |
|
|
|
2.29 |
|
The following table presents a reconciliation of the GAAP financial measure of net income to the non-GAAP financial measures of Adjusted EBITDA and distributable cash flow attributable to
(Dollars in millions, except per unit data) |
Cumulative Four Quarters ended Q3-2022 |
|
Q3-2022 |
|
Q2-2022 |
|
Q1-2022 |
|
Q4-2021 |
|
Q3-2021 |
||||||
Reconciliation of net income to Adjusted EBITDA attributable to |
|
|
|
|
|||||||||||||
Net income |
$ |
117.7 |
|
$ |
31.1 |
|
$ |
31.2 |
|
$ |
31.8 |
|
$ |
23.6 |
|
$ |
15.4 |
Add backs: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization expense |
|
29.3 |
|
|
7.8 |
|
|
7.2 |
|
|
6.5 |
|
|
7.8 |
|
|
7.4 |
Interest expense, net |
|
5.1 |
|
|
1.7 |
|
|
1.4 |
|
|
1.1 |
|
|
0.9 |
|
|
1.3 |
Equity-based compensation (benefit) expense, net of forfeitures |
|
0.5 |
|
|
— |
|
|
0.3 |
|
|
0.1 |
|
|
0.1 |
|
|
— |
Adjusted EBITDA |
|
152.5 |
|
|
40.6 |
|
|
40.1 |
|
|
39.4 |
|
|
32.4 |
|
|
24.1 |
Less: Adjusted EBITDA attributable to non-controlling interest |
|
76.1 |
|
|
20.3 |
|
|
19.9 |
|
|
19.7 |
|
|
16.2 |
|
|
12.1 |
Adjusted EBITDA attributable to |
$ |
76.4 |
|
$ |
20.3 |
|
$ |
20.2 |
|
$ |
19.7 |
|
$ |
16.2 |
|
$ |
12.0 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA attributable to |
$ |
76.4 |
|
$ |
20.3 |
|
$ |
20.2 |
|
$ |
19.7 |
|
$ |
16.2 |
|
$ |
12.0 |
Less: Cash interest expense, net attributable to |
|
2.4 |
|
|
0.8 |
|
|
0.6 |
|
|
0.5 |
|
|
0.5 |
|
|
0.6 |
Less: Maintenance capital expenditures attributable to |
|
12.8 |
|
|
2.7 |
|
|
3.5 |
|
|
4.1 |
|
|
2.5 |
|
|
3.2 |
Distributable cash flow attributable to |
$ |
61.2 |
|
$ |
16.8 |
|
$ |
16.1 |
|
$ |
15.1 |
|
$ |
13.2 |
|
$ |
8.2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash distribution declared per unit |
$ |
2.15 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.65 |
|
$ |
0.34 |
Total distributions to unitholders and general partner |
$ |
43.7 |
|
$ |
10.1 |
|
$ |
10.1 |
|
$ |
10.1 |
|
$ |
13.4 |
|
$ |
6.9 |
Distribution coverage ratio |
|
1.40 |
|
|
1.67 |
|
|
1.60 |
|
|
1.50 |
|
|
0.99 |
|
|
1.19 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005484/en/
Investor Relations
M. Nedim Kulaksizoglu
Chief Financial Officer
(770) 375-2321
NKULAKSIZOGLU@sisecam.com
Source:
FAQ
What were Sisecam Resources LP's Q3 2022 net sales?
How much did Sisecam Resources LP's net income increase in Q3 2022?
What growth did Sisecam Resources LP experience in basic earnings per unit for Q3 2022?