Ciner Resources LP Announces Fourth Quarter and Year Ended 2017 Financial Results
ATLANTA–(BUSINESS WIRE)–Ciner Resources LP (NYSE: CINR) today reported its financial and
operating results for the fourth quarter and year ended December 31,
2017.
Fourth Quarter and Year Ended 2017 Financial Highlights:
-
Net sales of $128.5 million increased 4.4% over the prior-year fourth
quarter; full year net sales of $497.3 million increased 4.7% over the
prior-year. -
Net income of $27.2 million increased 33.3% over the prior-year fourth
quarter; full year net income of $86.4 million was flat over the
prior-year. -
Adjusted EBITDA of $34.9 million increased 21.6% over the prior-year
fourth quarter; full year adjusted EBITDA of $120.1 million increased
2.6% over the prior-year. -
Basic and diluted earnings per unit of $0.67 and $0.66 for the quarter
increased 36.7% and 34.7% over the prior-year fourth quarter of $0.49;
full year basic and diluted earnings per unit of $2.08 and $2.07 was
flat and down, respectively, over the prior-year. -
Quarterly distribution declared per unit of $0.567 remained flat
compared to the prior-year fourth quarter as well as third quarter of
2017. -
Net cash provided by operating activities of $34.1 million increased
40.3% over prior-year fourth quarter; full year net cash provided by
operating activities of $79.3 million decreased by 38.2% over the
prior-year. -
Distributable cash flow of $14.6 million was up 32.7% compared to the
prior-year fourth quarter; full year distributable cash flow of $52.0
million increased by 3.2% over the prior year. The distribution
coverage ratio was 1.28 and 0.96 for the three months ended December
31, 2017 and 2016, respectively, and 1.14 and 1.10 for the twelve
months ended December 31, 2017 and 2016, respectively.
Kirk Milling, CEO, commented: “Record production levels along with
higher than anticipated international prices in the quarter drove an
improvement in adjusted EBITDA of 21.6% and net income of 33.3% compared
to Q4 of 2016. The quarter was the first true sign that the production
initiatives we undertook earlier in the year to improve reliability and
increase utilization of our production units are beginning to take hold.
Ultimately the quarter pushed our full year results more in line with
expectations as EBITDA rose 2.6% and distributable cash flow rose just
over 3% compared to 2016.”
“As we look forward into 2018, we expect higher production levels and
share gains in the domestic market to soften any potential impact we may
experience from lower international pricing. As we begin the year, the
market looks better than previously anticipated due to continued
strength in Asia and a smaller impact on pricing thus far from the new
capacity coming on line in Turkey.”
2018 Outlook:
- We expect our total volume sold to increase 1% to 3%.
- We expect domestic volume to increase by 80,000 to 125,000 short tons.
- We expect domestic pricing to be down 1% to 3%.
- We expect international prices to be flat to down 2% **
-
Maintenance of business capital expenditures are planned to be in the
range of $13 to $15 million. -
Expansion capital expenditures are planned to be in the range of $30
to $35 million.
** Excluding the change related to freight from CIDT sales in 2017.
| Financial Highlights |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
| (Dollars in millions, except per unit amounts) | 2017 | 2016 | % Change | 2017 | 2016 | % Change | ||||||
| Soda ash volume produced (millions of short tons) | 0.692 | 0.674 | 2.7 | % | 2.667 | 2.695 | (1.0 | )% | ||||
| Soda ash volume sold (millions of short tons) | 0.707 | 0.702 | 0.6 | % | 2.705 | 2.736 | (1.1 | )% | ||||
| Net sales | $ | 128.5 | $ | 123.1 | 4.4 | % | $ | 497.3 | $ | 475.2 | 4.7 | % |
| Net income | $ | 27.2 | $ | 20.4 | 33.3 | % | $ | 86.4 | $ | 86.3 | 0.1 | % |
| Net income attributable to Ciner Resources LP | $ | 13.3 | $ | 9.9 | 34.3 | % | $ | 41.6 | $ | 41.4 | 0.5 | % |
| Basic Earnings per Limited Partner Unit | $ | 0.67 | $ | 0.49 | 36.7 | % | $ | 2.08 | $ | 2.08 | — | % |
| Diluted Earnings per Limited Partner Unit | $ | 0.66 | $ | 0.49 | 34.7 | % | $ | 2.07 | $ | 2.08 | (0.5 | )% |
| Adjusted EBITDA (1) | $ | 34.9 | $ | 28.7 | 21.6 | % | $ | 120.1 | $ | 117.1 | 2.6 | % |
| Adjusted EBITDA attributable to Ciner Resources LP(1) | $ | 17.6 | $ | 14.2 | 23.9 | % | $ | 59.7 | $ | 57.8 | 3.3 | % |
| Net cash provided by operating activities | $ | 34.1 | $ | 24.3 | 40.3 | % | $ | 79.3 | $ | 128.3 | (38.2 | )% |
| Distributable cash flow attributable to Ciner Resources LP(1) | $ | 14.6 | $ | 11.0 | 32.7 | % | $ | 52.0 | $ | 50.4 | 3.2 | % |
| Distribution coverage ratio (1) | 1.28 | 0.96 | 33.3 | % | 1.14 | 1.10 | 3.6 | % | ||||
| (1)See non-GAAP reconciliations | ||||||||||||
Three Months Ended December 31, 2017 compared to Three Months
Ended December 31, 2016
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 December 31, |
Percent |
|||||
| Net sales (Dollars in millions): | 2017 | 2016 | ||||
| Domestic | $ | 47.7 | $ | 48.3 | (1.2 | )% |
| International | $ | 80.8 | $ | 74.8 | 8.0 | % |
| Total net sales | $ | 128.5 | $ | 123.1 | 4.4 | % |
| Sales volumes (thousands of short tons): | ||||||
| Domestic | 217.6 | 222.9 | (2.4 | )% | ||
| International | 489.1 | 479.5 | 2.0 | % | ||
| Total soda ash volume sold | 706.7 | 702.4 | 0.6 | % | ||
| Average sales price (per short ton): | ||||||
| Domestic | $219.21 | $216.62 | 1.2 | % | ||
| International | $165.20 | $156.06 | 5.9 | % | ||
| Average | $181.83 | $175.27 | 3.7 | % | ||
| Percent of net sales: | ||||||
| Domestic sales | 37.1 | % | 39.2 | % | (5.4 | )% |
| International sales | 62.9 | % | 60.8 | % | 3.5 | % |
| Total percent of net sales | 100.0 | % | 100.0 | % | ||
Consolidated Results
Net sales. Net sales increased by 4.4% to $128.5 million for the
three months ended December 31, 2017 from $123.1 million for the three
months ended December 31, 2016, driven by an increase in total average
sales price of 3.7%, as well as a modest increase in soda ash volumes
sold of 0.6%. The increased international average sales price reflects
the higher ANSAC sales price during the three months ended December 31,
2017.
Cost of products sold, including freight costs. Cost of products
sold, including freight costs, depreciation, depletion and amortization
expense, decreased by 1.6% to $95.2 million for the three months ended
December 31, 2017 from $96.7 million for the three months ended December
31, 2016, primarily due to lower deca rehydration (“DECA”) costs per ton
as we harvested DECA from a pond with closer proximity to the plant for
2017 and lower employee benefit costs, primarily resulting from changes
to postretirement benefits during 2017, partially offset by an increase
in freight costs during the three months ended December 31, 2017.
Selling, general and administrative expenses. Our selling,
general and administrative expenses increased 13.7% to $5.8 million for
the three months ended December 31, 2017, compared to $5.1 million for
the three months ended December 31, 2016. The increase over prior year
was primarily driven by a decline in the proportion of employee time
spent on Ciner Corp related activities and increased share-based
compensation during 2017, offset by certain European restructuring
charges present during the three months ended December 31, 2016 that did
not occur during 2017 and higher selling and administrative fees
relating to our affiliate, ANSAC during three months ended December 31,
2017.
Year Ended December 31, 2017 compared to Year Ended December 31,
2016
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 December 31, |
Percent |
|||||
| Net sales (Dollars in millions): | 2017 | 2016 | ||||
| Domestic | $ | 192.8 | $ | 192.6 | 0.1 | % |
| International | 304.5 | 282.6 | 7.7 | % | ||
| Total net sales | $ | 497.3 | $ | 475.2 | 4.7 | % |
| Sales volumes (thousands of short tons): | ||||||
| Domestic | 877.4 | 888.3 | (1.2 | )% | ||
| International | 1,828.0 | 1,847.4 | (1.1 | )% | ||
| Total soda ash volume sold | 2,705.4 | 2,735.7 | (1.1 | )% | ||
| Average sales price (per short ton): | ||||||
| Domestic | $ | 219.74 | $ | 216.77 | 1.4 | % |
| International | $ | 166.58 | $ | 152.99 | 8.9 | % |
| Average | $ | 183.82 | $ | 173.70 | 5.8 | % |
| Percent of net sales: | ||||||
| Domestic sales | 38.8 | % | 40.5 | % | (4.2 | )% |
| International sales | 61.2 | % | 59.5 | % | 2.9 | % |
| Total percent of net sales | 100.0 | % | 100.0 | % | ||
Consolidated Results
Net sales. Net sales increased by 4.7% to $497.3 million for the
twelve months ended December 31, 2017 from $475.2 million for the twelve
months ended December 31, 2016, driven by increase in total average
sales price of 5.8%, partially offset by an annual decrease in soda ash
volumes sold of 1.1%. The increased international average sales price
reflects the increase in freight costs driven by higher non-ANSAC export
sales volume, primarily CIDT. The decrease in sales volumes are
primarily due to lower production output compared to the prior year.
Cost of products sold, including freight costs. Cost of products
sold, including freight costs, depreciation, depletion and amortization
expense, increased by 6.1% to $383.8 million for the twelve months ended
December 31, 2017 from $361.7 million for the twelve months ended
December 31, 2016, primarily due to an increase in freight costs of
21.8% to $145.7 million for the twelve months ended December 31, 2017,
compared to $119.6 million for the twelve months ended December 31,
2016. The increase in freight costs was driven by higher non-ANSAC
export sales volumes, primarily CIDT. The higher incremental freight
costs on non-ANSAC export sales is also reflected in the higher average
international sales price. In the twelve months ended December 31, 2016,
international sales primarily consisted of transactions to ANSAC. During
the twelve months ended December 31, 2017, we also had higher
maintenance expense that was partially offset by lower employee benefit
costs, primarily resulting from changes to postretirement benefits.
Selling, general and administrative expenses. Our selling,
general and administrative expenses decreased 3.9% to $22.4 million for
the twelve months ended December 31, 2017, compared to $23.3 million for
the twelve months ended December 31, 2016. The decrease was primarily
driven by lower selling and administrative fees relating to our
affiliate, ANSAC, and a higher proportion of employee time spent on
Ciner Corp related activities in 2017.
Impairment and loss on disposal of assets, net. During the twelve
months ended December 31, 2017, we incurred a $1.6 million asset
impairment charge relating to certain assets, which became obsolete as a
result of energy sourcing initiatives at our Wyoming facility.
CAPEX AND ORE TO ASH RATIO
The following table below summarizes our capital expenditures, on an
accrual basis, and ore to ash ratio:
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||
| (Dollars in millions) | 2017 | 2016 | 2017 | 2016 | ||||
| Capital Expenditures | ||||||||
| Maintenance | $ | 4.2 | $ | 4.7 | $ | 11.1 | $ | 10.7 |
| Expansion | 3.1 | 4.8 | 10.8 | 15.5 | ||||
| Total | $ | 7.3 | $ | 9.5 | $ | 21.9 | $ | 26.2 |
| Operating and Other Data: | ||||||||
| Ore to ash ratio(1) | 1.53: 1.0 | 1.57: 1.0 | 1.50: 1.0 | 1.50: 1.0 | ||||
|
(1)Ore to ash ratio expresses the number of short tons of trona ore needed to produce one short ton of soda ash and includes our deca rehydration recovery process. In general, a lower ore to ash ratio results in lower costs and improved efficiency. |
||||||||
FINANCIAL POSITION AND LIQUIDITY
As of December 31, 2017, we had cash and cash equivalents of $30.2
million. In addition, we have approximately $75.4 million ($225.0
million, less $138.0 million outstanding and less standby letters of
credit of $11.6 million) of remaining capacity under our revolving
credit facilities. As of December 31, 2017, our leverage and interest
coverage ratios, as calculated per the Ciner Wyoming Credit Facility,
were 1.21 and 27.38, respectively.
CASH FLOWS AND QUARTERLY CASH DISTRIBUTION
Cash Flows
Cash provided by operating activities decreased to $79.3 million during
the twelve months ended December 31, 2017 compared to $128.3 million of
cash provided during twelve months ended December 31, 2016, primarily
driven by $37.8 million of working capital used in operating activities
during the twelve months ended December 31, 2017, compared to $14.2
million of working capital provided by operating activities during the
twelve months ended December 31, 2016. The $52.0 million increase in
working capital used in operating activities was primarily due to the
$37.7 million increase in due-from affiliates.
Cash provided by operating activities during the twelve months ended
December 31, 2017 were offset by cash used in investing activities of
$24.7 million for capital expenditures and cash used in financing
activities during the twelve month period of $44.1 million. The cash
used in financing activities during the twelve months ended December 31,
2017 was due to distributions paid of $94.4 million, partially offset by
net borrowings and debt issuance costs on the Ciner Wyoming revolving
credit facility and other long-term debt of $50.3 million.
Quarterly Distribution
On February 1, 2018, the Partnership declared its fourth quarter 2017
quarterly distribution of $0.567 per unit. This is consistent with the
distribution declared during the fourth quarter of 2016. The quarterly
cash distribution is payable on February 27, 2018 to unitholders of
record on February 12, 2018.
RELATED COMMUNICATIONS
Ciner Resources LP will host a conference call tomorrow, February 16,
2018 at 8:30 a.m. ET. Participants can listen in by dialing
1-866-550-6980 (Domestic) or 1-804-977-2644 (International) and
referencing confirmation 1197069. Please log in or dial in at least 10
minutes prior to the start time to ensure a connection. A telephonic
replay of the call will be available approximately two hours after the
call’s completion by calling 1-800-585-8367 or 404-537-3406 and
referencing confirmation 1197069, and will remain available for the
following seven days. This conference call will be webcast live and
archived for replay on Ciner Resources’ website at www.ciner.us.com.
ABOUT CINER RESOURCES LP
Ciner Resources LP, a master limited partnership, operates the trona ore
mining and soda ash production business of Ciner Wyoming LLC (“Ciner
Wyoming”), one of the largest and lowest cost producers of natural soda
ash in the world, serving a global market from its facility in the Green
River Basin of Wyoming. The facility has been in operation for more than
50 years.
NATURE OF OPERATIONS
Ciner Resources LP owns a controlling interest comprised of a 51%
membership interest in Ciner Wyoming. Natural Resource Partners L.P.
(“NRP”) owns a non-controlling interest consisting of a 49% membership
interest in Ciner Wyoming.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Statements other
than statements of historical facts included in this press release that
address activities, events or developments that the Partnership expects,
believes or anticipates will or may occur in the future are
forward-looking statements. These statements contain words such as
“possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,”
“estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or
similar expressions. Such statements are based only on the Partnership’s
current beliefs, expectations and assumptions regarding the future of
the Partnership’s business, projections, anticipated events and trends,
the economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to
predict and many of which are outside of the Partnership’s control. The
Partnership’s actual results and financial condition may differ
materially from those implied or expressed by these forward-looking
statements. Consequently, you are cautioned not to place undue reliance
on any forward-looking statement because no forward-looking statement
can be guaranteed. Factors that could cause the Partnership’s actual
results to differ materially from the results contemplated by such
forward-looking statements include: changes in general economic
conditions, the Partnership’s ability to meet its expected quarterly
distributions, changes in the Partnership’s relationships with its
customers, including American Natural Soda Ash Corporation (“ANSAC”) and
Ciner Ic ve Dis Ticaret Anonim Sirket (“CIDT”), the demand for soda ash
and the opportunities for the Partnership to increase its volume sold,
the development of glass and glass making product alternatives, changes
in soda ash prices, operating hazards, unplanned maintenance outages at
the Partnership’s production facilities, construction costs or capital
expenditures exceeding estimated or budgeted costs or expenditures, the
effects of government regulation, tax position, and other risks
incidental to the mining, processing, and shipment of trona ore and soda
ash, as well as the other factors discussed in the Partnership’s Annual
Report on Form 10-K for the year ended December 31, 2016, and subsequent
reports filed with the Securities and Exchange Commission. All
forward-looking statements included in this press release are expressly
qualified in their entirety by such cautionary statements. Unless
required by law, the Partnership undertakes no duty and does not intend
to update the forward-looking statements made herein to reflect new
information or events or circumstances occurring after this press
release. All forward-looking statements speak only as of the date made.
Supplemental Information
|
CINER RESOURCES LP |
||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||
|
(In millions, except per unit data) |
2017 | 2016 | 2017 | 2016 | ||||
| Net sales: | ||||||||
| Sales—affiliates | $ | 80.8 | $ | 71.8 | $ | 304.5 | $ | 271.2 |
| Sales—others | 47.7 | 51.3 | 192.8 | 204.0 | ||||
| Net sales | $ | 128.5 | $ | 123.1 | $ | 497.3 | $ | 475.2 |
| Operating costs and expenses: | ||||||||
| Cost of products sold, including freight costs | 88.3 | 89.9 | 356.7 | 335.6 | ||||
| Depreciation, depletion and amortization expense | 6.9 | 6.8 | 27.1 | 26.1 | ||||
| Selling, general and administrative expenses—affiliates | 4.5 | 4.5 | 16.9 | 18.7 | ||||
| Selling, general and administrative expenses—others | 1.3 | 0.6 | 5.5 | 4.6 | ||||
| Impairment and loss on disposal of assets, net | — | 0.1 | 1.6 | 0.3 | ||||
| Total operating costs and expenses | 101.0 | 101.9 | 407.8 | 385.3 | ||||
| Operating income | 27.5 | 21.2 | 89.5 | 89.9 | ||||
| Other income/(expenses): | ||||||||
| Interest expense, net | (0.3 | ) | (0.9 | ) | (2.9 | ) | (3.6 | ) |
| Other, net | — | 0.1 | (0.2 | ) | — | |||
| Total other expense, net | (0.3 | ) | (0.8 | ) | (3.1 | ) | (3.6 | ) |
| Net income | $ | 27.2 | $ | 20.4 | $ | 86.4 | $ | 86.3 |
| Net income attributable to non-controlling interest | 13.9 | 10.5 | 44.8 | 44.9 | ||||
| Net income attributable to Ciner Resources LP | $ | 13.3 | $ | 9.9 | $ | 41.6 | $ | 41.4 |
| Other comprehensive loss: | ||||||||
| Loss on derivative financial instruments | (1.1 | ) | 1.8 | (4.0 | ) | 0.9 | ||
| Comprehensive income | 26.1 | 22.2 | 82.4 | 87.2 | ||||
| Comprehensive income attributable to non-controlling interest | 13.4 | 11.4 | 42.9 | 45.3 | ||||
| Comprehensive income attributable to Ciner Resources LP | $ | 12.7 | $ | 10.8 | $ | 39.5 | $ | 41.9 |
| Net income per limited partner unit: | ||||||||
| Net income per limited partner units (basic) | $ | 0.67 | $ | 0.49 | $ | 2.08 | $ | 2.08 |
| Net income per limited partner units (diluted) | $ | 0.66 | $ | 0.49 | $ | 2.07 | $ | 2.08 |
|
Weighted average limited partner units outstanding: |
||||||||
| Weighted average limited partner units outstanding (basic) | 19.6 | 19.6 | 19.6 | 19.6 | ||||
| Weighted average limited partner units outstanding (diluted) | 19.7 | 19.6 | 19.7 | 19.6 | ||||
| Cash Distribution declared per unit | $ | 0.567 | $ | 0.567 | $ | 2.268 | $ | 2.265 |
|
CINER RESOURCES LP |
||||
| As of | ||||
|
(In millions) |
December 31, 2017 |
December 31, 2016 |
||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 30.2 | $ | 19.7 |
| Accounts receivable—affiliates | 98.3 | 61.6 | ||
| Accounts receivable, net | 34.2 | 33.4 | ||
| Inventory | 19.8 | 19.0 | ||
| Other current assets | 1.8 | 2.3 | ||
| Total current assets | 184.3 | 136.0 | ||
| Property, plant and equipment, net | 249.3 | 256.1 | ||
| Other non-current assets | 19.6 | 21.0 | ||
| Total assets | $ | 453.2 | $ | 413.1 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Current portion of long-term debt | $ | 11.4 | $ | 8.6 |
| Accounts payable | 14.5 | 15.0 | ||
| Due to affiliates | 3.0 | 4.2 | ||
| Accrued expenses | 27.7 | 27.7 | ||
| Total current liabilities | 56.6 | 55.5 | ||
| Long-term debt | 138.0 | 89.4 | ||
| Other non-current liabilities | 10.4 | 9.0 | ||
| Total liabilities | 205.0 | 153.9 | ||
| Commitments and Contingencies | ||||
| Equity: | ||||
|
Common unitholders – Public and Ciner Holdings (19.7 units issued and outstanding at December 31, 2017 and December 31, 2016, respectively) |
148.3 | 151.0 | ||
|
General partner unitholders – Ciner Resource Partners LLC (0.4 units issued and outstanding at December 31, 2017 and December 31, 2016, respectively) |
3.8 | 3.9 | ||
| Accumulated other comprehensive loss | (3.7 | ) | (1.6 | ) |
| Partners’ capital attributable to Ciner Resources LP | 148.4 | 153.3 | ||
| Non-controlling interest | 99.8 | 105.9 | ||
| Total equity | 248.2 | 259.2 | ||
| Total liabilities and partners’ equity | $ | 453.2 | $ | 413.1 |
|
CINER RESOURCES LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||
|
Year Ended December 31, |
||||
|
(In millions) |
2017 | 2016 | ||
| Cash flows from operating activities: | ||||
| Net income | $ | 86.4 | $ | 86.3 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
| Depreciation, depletion and amortization expense | 27.5 | 26.5 | ||
| Impairment and loss on disposal of assets, net | 1.6 | 0.3 | ||
| Equity-based compensation expense | 1.3 | 0.6 | ||
| Other non-cash items | 0.3 | 0.4 | ||
| Changes in operating assets and liabilities: | ||||
| (Increase)/decrease in: | ||||
| Accounts receivable – affiliates | (37.7 | ) | 2.4 | |
| Accounts receivable, net | 0.2 | 0.4 | ||
| Inventory | 0.5 | 7.0 | ||
| Other current and other non-current assets | (0.2 | ) | 0.2 | |
| Increase/(decrease) in: | ||||
| Accounts payable | 1.7 | 1.1 | ||
| Due to affiliates | (1.2 | ) | (0.4 | ) |
| Accrued expenses and other liabilities | (1.1 | ) | 3.5 | |
| Net cash provided by operating activities | 79.3 | 128.3 | ||
| Cash flows from investing activities: | ||||
| Capital expenditures | (24.7 | ) | (25.3 | ) |
| Net cash used in investing activities | (24.7 | ) | (25.3 | ) |
| Cash flows from financing activities: | ||||
| Borrowings on Ciner Wyoming credit facility | 88.5 | 15.0 | ||
| Repayments on Ciner Wyoming credit facility | (28.5 | ) | (27.0 | ) |
| Repayments on other long-term debt | (8.6 | ) | — | |
| Debt issuance costs | (1.1 | ) | — | |
| Distributions to common unitholders | (44.5 | ) | (22.2 | ) |
| Distributions to general partner | (0.9 | ) | (0.9 | ) |
| Distributions to subordinated unitholders | — | (22.0 | ) | |
| Distributions to non-controlling interest | (49.0 | ) | (46.6 | ) |
| Net cash used in financing activities | (44.1 | ) | (103.7 | ) |
| Net increase/(decrease) in cash and cash equivalents | 10.5 | (0.7 | ) | |
| Cash and cash equivalents at beginning of period | 19.7 | 20.4 | ||
| Cash and cash equivalents at end of period | $ | 30.2 | $ | 19.7 |
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted
accounting principles in the United States (“GAAP”). We also present the
non-GAAP financial measures of:
- Adjusted EBITDA;
- Distributable cash flow; and
- Distribution coverage ratio.
We define Adjusted EBITDA as net income (loss) plus net interest
expense, income tax, depreciation, depletion and amortization,
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 Ciner Resources LP. Additionally, for the
twelve months ended December 31, 2017, we amended our definition of
Distributable cash flow to include cash interest received as an offset
to cash paid for interest and have adjusted all prior periods
accordingly. The Partnership may fund expansion-related capital
expenditures with borrowings under existing credit facilities such that
expansion-related capital expenditures will have no impact on cash on
hand or the calculation of cash available for distribution. In certain
instances, the timing of the Partnership’s borrowings and/or its cash
management practices will result in a mismatch between the period of the
borrowing and the period of the capital expenditure.
Contacts
Ciner Resources LP
Investor Relations
Scott
Humphrey, 770-375-2387
Chief Financial Officer
[email protected]
