SUGAR LAND, Texas, Feb. 22, 2018 /PRNewswire/ -- CVR Partners,
LP (NYSE: UAN), a manufacturer of ammonia and urea ammonium nitrate
(UAN) solution fertilizer products, today announced a fourth
quarter 2017 net loss of $27.4
million, or 24 cents per
common unit, on net sales of $78.2
million, compared to a net loss of $14.5 million, or 13
cents per common unit, on net sales of $84.9 million for the fourth quarter a year
earlier. Adjusted EBITDA, a non-GAAP financial measure, was
$7.7 million for the fourth quarter
of 2017, compared to adjusted EBITDA of $18.3 million for the fourth quarter of 2016.
For full year 2017, CVR Partners had a net loss of $72.8 million, or 64
cents per common unit, on net sales of $330.8 million, compared to a net loss of
$26.9 million, or 26 cents per common unit, on net sales of
$356.3 million for full year 2016.
Adjusted EBITDA for full year 2017 was $65.8
million compared to adjusted EBITDA of $92.7 million for the previous year.
CVR Partners' results include the results of the East Dubuque fertilizer facility beginning
April 1, 2016.
"We were pleased with the overall operating performance of our
Coffeyville plant during the 2017
fourth quarter," said Mark Pytosh,
chief executive officer. "The fall ammonia application was much
stronger in the 2017 fourth quarter than the previous year, leading
to lower customer product inventories compared to last year.
"So far in 2018, we have seen lower nitrogen product imports,
steady customer demand and increasing prices for nitrogen," Pytosh
said. "For the spring, most industry participants are expecting
approximately 90 million corn acres to be planted."
Consolidated Operations
For the fourth quarter of 2017, consolidated average realized
gate prices for UAN and ammonia were $132 per ton and $264 per ton, respectively. Consolidated average
realized gate prices for UAN and ammonia were $147 per ton and $352 per ton, respectively, for the same period
in 2016.
CVR Partners' fertilizer facilities produced a combined 199,500
tons of ammonia during the fourth quarter of 2017, of which 64,100
net tons were available for sale while the rest was upgraded to
other fertilizer products, including 306,100 tons of UAN. In the
2016 fourth quarter, the fertilizer facilities produced 207,600
tons of ammonia, of which 62,600 net tons were available for sale
while the remainder was upgraded to other fertilizer products,
including 330,700 tons of UAN.
Distributions
CVR Partners will not pay a cash distribution for the 2017
fourth quarter. CVR Partners is a variable distribution master
limited partnership. As a result, its quarterly distributions, if
any, will vary from quarter to quarter due to several factors,
including, but not limited to, its operating performance,
fluctuations in the prices received for its finished products,
maintenance capital expenditures, and cash reserves deemed
necessary or appropriate by the board of directors of its general
partner.
2017 Fourth Quarter Earnings Conference Call
CVR Partners previously announced that it will host its 2017
fourth quarter Earnings Conference Call for analysts and investors
on Thursday, Feb. 22, at 11 a.m. Eastern. The Earnings Conference Call may
also include discussion of the partnership's developments,
forward-looking information and other material information about
business and financial matters.
The Earnings Conference Call will be broadcast live over the
Internet at https://www.webcaster4.com/Webcast/Page/1004/24487. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8029.
For those unable to listen live, the webcast will be archived
and available for 14 days at
https://www.webcaster4.com/Webcast/Page/1004/24487. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13676230.
This release serves as a qualified notice to nominees and
brokers as provided for under Treasury Regulation Section
1.1446-4(b). Please note that 100 percent of CVR Partners'
distributions to foreign investors are attributable to income that
is effectively connected with a United
States trade or business. Accordingly, CVR Partners'
distributions to foreign investors are subject to federal income
tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can
generally identify forward-looking statements by our use of
forward-looking terminology such as "outlook," "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intend,"
"may," "might," "plan," "potential," "predict," "seek," "should,"
or "will," or the negative thereof or other variations thereon or
comparable terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. For a discussion of risk
factors which may affect our results, please see the risk factors
and other disclosures included in our most recent Annual Report on
Form 10-K, any subsequently filed Quarterly Reports on Form
10-Q and our other SEC filings. These risks may cause our actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
these forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements
included in this press release are made only as of the date hereof.
CVR Partners disclaims any intention or obligation to update
publicly or revise its forward-looking statements, whether as a
result of new information, future events or otherwise, except to
the extent required by law.
About CVR Partners, LP
Headquartered in Sugar Land,
Texas, CVR Partners, LP is a Delaware limited partnership focused on the
production, marketing and distribution of nitrogen fertilizer
products. It primarily produces urea ammonium nitrate (UAN) and
ammonia, which are predominantly used by farmers to improve the
yield and quality of their crops. CVR Partners' Coffeyville, Kansas, nitrogen fertilizer
manufacturing facility includes a 1,300 ton-per-day ammonia unit, a
3,000 ton-per-day UAN unit and a dual-train gasifier complex having
a capacity of 89 million standard cubic feet per day of hydrogen.
CVR Partners' East Dubuque,
Illinois, nitrogen fertilizer manufacturing facility
includes a 1,075 ton-per-day ammonia unit and a 1,100 ton-per-day
UAN unit.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Partners, LP
(281) 207-3588
InvestorRelations@CVRPartners.com
Media Relations:
Brandee Stephens
CVR Partners, LP
(281) 207-3516
MediaRelations@CVRPartners.com
CVR Partners, LP
Financial and Operational Data (all information in this
release is unaudited other than the statement of operations and
cash flow data for the year ended December 31, 2016 and the
balance sheet data as of December 31, 2016). On
April 1, 2016, CVR Partners, LP (the
"Partnership") completed the merger (the "East Dubuque Merger")
whereby the Partnership acquired a nitrogen fertilizer
manufacturing facility located in East
Dubuque, Illinois (the "East Dubuque Facility"). The
consolidated financial statements and key operating metrics include
the results of the East Dubuque Facility beginning on April 1,
2016, the date of the closing of the acquisition.
|
|
Three Months Ended December
31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except unit data)
|
Consolidated
Statements of Operations Data:
|
|
|
|
|
|
|
|
|
Net sales
(1)
|
|
$
|
78.2
|
|
|
$
|
84.9
|
|
|
$
|
330.8
|
|
|
$
|
356.3
|
|
|
|
|
|
|
|
|
|
|
Cost of materials and
other - Affiliates
|
|
1.9
|
|
|
0.7
|
|
|
7.5
|
|
|
2.6
|
|
Cost of materials and
other - Third parties
|
|
19.7
|
|
|
20.8
|
|
|
77.4
|
|
|
91.1
|
|
Direct operating
expenses - Affiliates (2)
|
|
1.1
|
|
|
1.0
|
|
|
3.9
|
|
|
4.2
|
|
Direct operating
expenses - Third parties (2)
|
|
40.4
|
|
|
36.9
|
|
|
151.6
|
|
|
144.1
|
|
Depreciation and
amortization
|
|
19.1
|
|
|
17.2
|
|
|
74.0
|
|
|
58.2
|
|
Cost of
sales
|
|
82.2
|
|
|
76.6
|
|
|
314.4
|
|
|
300.2
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses - Affiliates (3)
|
|
4.2
|
|
|
4.1
|
|
|
15.6
|
|
|
15.0
|
|
Selling, general and
administrative expenses - Third parties (3)
|
|
2.6
|
|
|
3.2
|
|
|
10.0
|
|
|
14.3
|
|
Operating income
(loss)
|
|
(10.8)
|
|
|
1.0
|
|
|
(9.2)
|
|
|
26.8
|
|
Interest expense and
other financing costs
|
|
(15.8)
|
|
|
(15.8)
|
|
|
(62.9)
|
|
|
(48.6)
|
|
Gain (loss) on
extinguishment of debt
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(4.9)
|
|
Other income,
net
|
|
(0.6)
|
|
|
0.1
|
|
|
(0.5)
|
|
|
0.1
|
|
Loss before income tax
expense
|
|
(27.2)
|
|
|
(14.5)
|
|
|
(72.6)
|
|
|
(26.6)
|
|
Income tax
expense
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
0.3
|
|
Net loss
|
|
$
|
(27.4)
|
|
|
$
|
(14.5)
|
|
|
$
|
(72.8)
|
|
|
$
|
(26.9)
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
unit - basic and diluted
|
|
$
|
(0.24)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.64)
|
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
|
$
|
7.7
|
|
|
$
|
18.3
|
|
|
$
|
65.8
|
|
|
$
|
92.7
|
|
Available cash for
distribution*
|
|
$
|
(10.3)
|
|
|
$
|
(2.2)
|
|
|
$
|
(9.7)
|
|
|
$
|
48.6
|
|
|
|
|
|
|
|
|
|
|
Weighted average,
common units outstanding - basic and diluted (in
thousands)
|
|
113,283
|
|
|
113,283
|
|
|
113,283
|
|
|
103,299
|
|
________________________________
|
* See "Use of
Non-GAAP Financial Measures" below.
|
(1) Below
are the components of net sales:
|
|
|
|
Three Months
Ended December
31,
|
|
Year
Ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Reconciliation to net
sales:
|
|
|
|
|
|
|
|
|
Fertilizer sales net
at gate
|
|
$
|
67.0
|
|
|
$
|
74.2
|
|
|
$
|
290.0
|
|
|
$
|
309.0
|
|
Freight in
revenue
|
|
9.1
|
|
|
8.6
|
|
|
32.8
|
|
|
33.0
|
|
Hydrogen
revenue
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
|
3.2
|
|
Other, including the
impact of purchase accounting
|
|
1.8
|
|
|
1.8
|
|
|
7.6
|
|
|
11.1
|
|
Total net
sales
|
|
$
|
78.2
|
|
|
$
|
84.9
|
|
|
$
|
330.8
|
|
|
$
|
356.3
|
|
|
(2) Direct operating expenses
are reflected exclusive of depreciation and
amortization.
|
|
(3) The
Partnership incurred legal and other professional fees and other
merger related expenses that are referred to herein as expenses
associated with the East Dubuque Merger, which are included in
selling, general and administrative expenses. The Partnership
incurred approximately $3.1 million of expenses associated with the
East Dubuque Merger for the year ended December 31,
2016.
|
|
|
As
of December
31, 2017
|
|
As
of December
31, 2016
|
|
|
|
|
|
|
|
(in millions)
|
Balance Sheet
Data:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
49.2
|
|
|
$
|
55.6
|
|
Working
capital
|
|
62.8
|
|
|
71.5
|
|
Total
assets
|
|
1,234.3
|
|
|
1,312.2
|
|
Total debt, net of
current portion
|
|
625.9
|
|
|
623.1
|
|
Total partners'
capital
|
|
549.9
|
|
|
624.9
|
|
|
|
Three Months
Ended December
31,
|
|
Year
Ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
$
|
(17.7)
|
|
|
$
|
(1.6)
|
|
|
$
|
10.4
|
|
|
$
|
45.0
|
|
Investing
activities
|
|
(3.1)
|
|
|
(5.9)
|
|
|
(14.5)
|
|
|
(87.1)
|
|
Financing
activities
|
|
—
|
|
|
(2.2)
|
|
|
(2.3)
|
|
|
47.7
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
(20.8)
|
|
|
$
|
(9.7)
|
|
|
$
|
(6.4)
|
|
|
$
|
5.6
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
for property, plant and equipment:
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures
|
|
$
|
3.0
|
|
|
$
|
5.4
|
|
|
$
|
14.1
|
|
|
$
|
13.7
|
|
Growth capital
expenditures
|
|
0.1
|
|
|
0.5
|
|
|
0.4
|
|
|
9.5
|
|
Total capital
expenditures
|
|
$
|
3.1
|
|
|
$
|
5.9
|
|
|
$
|
14.5
|
|
|
$
|
23.2
|
|
Operating Data
The following tables set forth information about our
consolidated operations and our nitrogen fertilizer manufacturing
facility located in Coffeyville,
Kansas (the "Coffeyville Facility") and the East Dubuque
Facility.
|
|
Three Months
Ended December
31,
|
|
Year
Ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Key Operating
Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated sales
(thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
|
84.3
|
|
|
55.7
|
|
|
286.1
|
|
|
201.4
|
|
UAN
|
|
302.9
|
|
|
335.1
|
|
|
1,254.5
|
|
|
1,237.5
|
|
|
|
|
|
|
|
|
|
|
Consolidated product
pricing at gate (dollars per ton) (1):
|
|
|
|
|
|
|
|
|
Ammonia
|
|
$
|
264
|
|
|
$
|
352
|
|
|
$
|
280
|
|
|
$
|
376
|
|
UAN
|
|
$
|
132
|
|
|
$
|
147
|
|
|
$
|
152
|
|
|
$
|
177
|
|
|
|
|
|
|
|
|
|
|
Consolidated
production volume (thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia (gross
produced) (2)
|
|
199.5
|
|
|
207.6
|
|
|
814.7
|
|
|
693.5
|
|
Ammonia (net available
for sale) (2)
|
|
64.1
|
|
|
62.6
|
|
|
267.8
|
|
|
183.6
|
|
UAN
|
|
306.1
|
|
|
330.7
|
|
|
1,268.4
|
|
|
1,192.6
|
|
|
|
|
|
|
|
|
|
|
Feedstock:
|
|
|
|
|
|
|
|
|
Petroleum coke used in
production (thousand tons)
|
|
116.5
|
|
|
129.4
|
|
|
487.5
|
|
|
513.7
|
|
Petroleum coke used in
production (dollars per ton)
|
|
$
|
13
|
|
|
$
|
18
|
|
|
$
|
17
|
|
|
$
|
15
|
|
Natural gas used in
production (thousands of MMBtus) (3)
|
|
1,838.8
|
|
|
2,124.3
|
|
|
7,619.5
|
|
|
5,596.0
|
|
Natural gas used in
production (dollars per MMBtu) (3) (4)
|
|
$
|
3.24
|
|
|
$
|
3.30
|
|
|
$
|
3.24
|
|
|
$
|
2.96
|
|
Natural gas in cost of
materials and other (thousands of MMBtus) (3)
|
|
2,153.2
|
|
|
1,876.2
|
|
|
8,051.5
|
|
|
4,618.7
|
|
Natural gas in cost of
materials and other (dollars per MMBtu) (3) (4)
|
|
$
|
3.17
|
|
|
$
|
3.15
|
|
|
$
|
3.26
|
|
|
$
|
2.87
|
|
|
|
|
|
|
|
|
|
|
Coffeyville Facility
on-stream factors (5):
|
|
|
|
|
|
|
|
|
Gasification
|
|
100.0
|
%
|
|
96.1
|
%
|
|
98.5
|
%
|
|
96.9
|
%
|
Ammonia
|
|
99.5
|
%
|
|
91.1
|
%
|
|
97.4
|
%
|
|
94.9
|
%
|
UAN
|
|
88.8
|
%
|
|
93.1
|
%
|
|
91.7
|
%
|
|
93.1
|
%
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility
on-stream factors (5):
|
|
|
|
|
|
|
|
|
Ammonia
|
|
86.3
|
%
|
|
99.7
|
%
|
|
90.4
|
%
|
|
87.7
|
%
|
UAN
|
|
86.8
|
%
|
|
99.8
|
%
|
|
90.3
|
%
|
|
87.3
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
Ammonia - Southern
plains (dollars per ton)
|
|
$
|
315
|
|
|
$
|
313
|
|
|
$
|
314
|
|
|
$
|
356
|
|
Ammonia - Corn belt
(dollars per ton)
|
|
$
|
340
|
|
|
$
|
360
|
|
|
$
|
358
|
|
|
$
|
416
|
|
UAN - Corn belt
(dollars per ton)
|
|
$
|
190
|
|
|
$
|
175
|
|
|
$
|
192
|
|
|
$
|
208
|
|
Natural gas NYMEX
(dollars per MMBtu)
|
|
$
|
2.92
|
|
|
$
|
3.18
|
|
|
$
|
3.02
|
|
|
$
|
2.55
|
|
______________________________
|
(1) Product pricing
at gate represents net sales less freight revenue divided by
product sales volume in tons and is shown in order to provide a
pricing measure that is comparable across the fertilizer
industry.
|
|
(2) Gross tons produced for ammonia
represent total ammonia produced, including ammonia produced that
was upgraded into other fertilizer products. Net tons available for
sale represent ammonia available for sale that was not upgraded
into other fertilizer products.
|
|
(3) The feedstock
natural gas shown above does not include natural gas used for fuel.
The cost of fuel natural gas is included in direct operating
expense.
|
|
(4) The cost
per MMBtu excludes derivative activity, when applicable. The impact
of natural gas derivative activity during the periods presented was
not material.
|
|
(5) On-stream factor is the total number
of hours operated divided by the total number of hours in the
reporting period and is included as a measure of operating
efficiency.
|
Coffeyville Facility
The Linde air separation unit experienced a shut down during the
second quarter of 2017. Following the Linde outage, the Coffeyville
Facility UAN unit experienced a number of operational challenges,
resulting in approximately 11 days of UAN downtime during the
second quarter of 2017. Excluding the impact of the Linde air
separation unit outage at the Coffeyville Facility, the UAN unit
on-stream factors at the Coffeyville Facility would have been 94.7%
for the year ended December 31, 2017.
East Dubuque Facility
Excluding the impact of approximately 14 days of downtime
associated with the 2017 full facility turnaround at the East
Dubuque Facility, the on-stream factors at the East Dubuque
Facility would have been 94.2% for ammonia and 94.0% for UAN for
the year ended December 31, 2017.
Excluding the impact of approximately 28 days downtime
associated with the 2016 the full facility turnaround at the East
Dubuque Facility, the on-stream factors would have been 97.8% for
ammonia and 97.1% for UAN for the post-acquisition period ended
December 31, 2016.
Use of Non-GAAP Financial Measures
To supplement our actual results calculated in accordance with
GAAP for the applicable periods, the Partnership also uses the
non-GAAP financial measures noted above, which are reconciled to
our GAAP based results below. These non-GAAP financial measures
should not be considered as an alternative to GAAP results.
EBITDA is defined as net income (loss) before (i) interest
(income) expense, (ii) income tax expense and (iii) depreciation
and amortization expense.
Adjusted EBITDA is defined as EBITDA further adjusted for the
impact of major scheduled turnaround expenses, gain or loss on
extinguishment of debt, loss on disposition of assets, expenses
associated with the East Dubuque Merger, and business interruption
insurance recovery, when applicable.
We present EBITDA because we believe it allows users of our
financial statements, such as investors and analysts, to assess our
financial performance without regard to financing methods, capital
structure or historical cost basis. We present Adjusted
EBITDA because we have found it helpful to consider an operating
measure that excludes amounts, such as major scheduled turnaround
expenses, gain or loss on extinguishment of debt, loss on
disposition of assets, expenses associated with the East Dubuque
Merger, and business interruption insurance recovery, relating to
transactions not reflective of our core operations. When
applicable, each of these amounts is discussed in the Management's
Discussion and Analysis of Financial Condition and Results of
Operations section of our SEC reports, so that investors have
complete information about these amounts. We also present Adjusted
EBITDA because it is the starting point used by the board of
directors of our general partner when calculating our available
cash for distribution.
EBITDA and Adjusted EBITDA are not recognized terms under GAAP
and should not be substituted for net income (loss) or cash flows
from operations. Management believes that EBITDA and Adjusted
EBITDA enable investors and analysts to better understand our
ability to make distributions to common unitholders, help investors
and analysts evaluate our ongoing operating results and allow for
greater transparency in reviewing our overall financial,
operational and economic performance by allowing investors to
evaluate the same information used by management. EBITDA and
Adjusted EBITDA presented by other companies may not be comparable
to our presentation, since each company may define these terms
differently.
A reconciliation of consolidated Net loss to consolidated EBITDA
and consolidated Adjusted EBITDA is as follows:
|
|
Three Months
Ended December
31,
|
|
Year
Ended December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Net loss
|
|
$
|
(27.4)
|
|
|
$
|
(14.5)
|
|
|
$
|
(72.8)
|
|
|
$
|
(26.9)
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
|
15.8
|
|
|
15.8
|
|
|
62.9
|
|
|
48.6
|
|
Income tax
expense
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
0.3
|
|
Depreciation and
amortization
|
|
19.1
|
|
|
17.2
|
|
|
74.0
|
|
|
58.2
|
|
EBITDA
|
|
$
|
7.7
|
|
|
$
|
18.5
|
|
|
$
|
64.3
|
|
|
$
|
80.2
|
|
Add:
|
|
|
|
|
|
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
6.6
|
|
(Gain) loss on
extinguishment of debt
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
4.9
|
|
Expenses associated
with the East Dubuque Merger
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
Less:
|
|
|
|
|
|
|
|
|
Insurance recovery -
business interruption
|
|
—
|
|
|
—
|
|
|
(1.1)
|
|
|
(2.1)
|
|
Adjusted
EBITDA
|
|
$
|
7.7
|
|
|
$
|
18.3
|
|
|
$
|
65.8
|
|
|
$
|
92.7
|
|
Available cash for distribution is not a recognized term under
GAAP. Available cash for distribution should not be considered in
isolation or as an alternative to net income (loss) or operating
income, or any other measure of financial performance or operating
performance. In addition, available cash for distribution is not
presented as, and should not be considered, an alternative to cash
flows from operations or as a measure of liquidity. Available cash
for distribution as reported by the Partnership may not be
comparable to similarly titled measures of other entities, thereby
limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash
needed for (i) net cash interest expense (excluding
capitalized interest) and debt service and other contractual
obligations; (ii) maintenance capital expenditures; and
(iii) to the extent applicable, major scheduled turnaround
expenses, reserves for future operating or capital needs that the
board of directors of the general partner deems necessary or
appropriate, and expenses associated with the East Dubuque Merger,
if any. Available cash for distribution may be increased by the
release of previously established cash reserves, if any, at the
discretion of the board of directors of our general partner, and
available cash is increased by the business interruption insurance
proceeds and the impact of purchase accounting. Actual
distributions are set by the board of directors of our general
partner. The board of directors of our general partner may modify
our cash distribution policy at any time, and our partnership
agreement does not require us to make distributions at all.
A reconciliation of consolidated Adjusted EBITDA to Available
cash for distribution is as follows:
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except unit and per unit data)
|
Adjusted
EBITDA
|
|
$
|
7.7
|
|
|
$
|
18.3
|
|
|
$
|
65.8
|
|
|
$
|
92.7
|
|
Less:
|
|
|
|
|
|
|
|
|
Net cash
interest expense (excluding capitalized interest) and debt
service
|
|
(15.0)
|
|
|
(15.1)
|
|
|
(59.9)
|
|
|
(46.1)
|
|
Maintenance
capital expenditures
|
|
(3.0)
|
|
|
(5.4)
|
|
|
(14.1)
|
|
|
(13.7)
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
(2.6)
|
|
|
(6.6)
|
|
Expenses
associated with the East Dubuque Merger
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1)
|
|
Add:
|
|
|
|
|
|
|
|
|
Insurance
recovery - business interruption
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
6.1
|
|
Impact of
purchase accounting
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
Available cash
associated with East Dubuque 2016 first quarter
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
Available cash for
distribution
|
|
$
|
(10.3)
|
|
|
$
|
(2.2)
|
|
|
$
|
(9.7)
|
|
|
$
|
48.6
|
|
Distribution
declared, per common unit
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
0.44
|
|
Common units
outstanding (in thousands)
|
|
113,283
|
|
|
113,283
|
|
|
113,283
|
|
|
113,283
|
|
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SOURCE CVR Partners, LP