INDIANAPOLIS, March 7,
2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P.
(NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"),
a leading independent producer of petroleum-based specialty
products, today reported results for the quarter and year ended
December 31, 2018, as follows:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Dollars in
millions, except per unit data)
|
Net income
(loss)
|
$
|
18.1
|
|
$
|
(83.6)
|
|
$
|
(55.1)
|
|
$
|
(103.8)
|
Adjusted net income
(loss)
|
$
|
42.9
|
|
$
|
(55.2)
|
|
$
|
26.5
|
|
$
|
(60.2)
|
Earnings (loss) per
unit
|
$
|
0.23
|
|
$
|
(1.06)
|
|
$
|
(0.69)
|
|
$
|
(1.31)
|
Adjusted earnings
(loss) per unit
|
$
|
0.55
|
|
$
|
(0.71)
|
|
$
|
0.34
|
|
$
|
(0.78)
|
Adjusted
EBITDA
|
$
|
55.7
|
|
$
|
41.2
|
|
$
|
263.9
|
|
$
|
317.2
|
Adjusted EBITDA
(excluding LCM/LIFO)
|
$
|
107.0
|
|
$
|
30.0
|
|
$
|
300.8
|
|
$
|
290.3
|
The Partnership's $18.1 million
Net income, $0.23 of Earnings per unit, and Adjusted EBITDA of
$55.7 million for the fourth quarter
2018 included a $51.3 million
unfavorable net impact related to the non-cash lower of cost or
market ("LCM") inventory adjustments and the liquidation of
last-in, first-out ("LIFO") inventory layers. Excluding the impact
of LCM, LIFO and other non-cash items, Adjusted net income,
Adjusted earnings per unit, and Adjusted EBITDA (excluding
LCM/LIFO) were $42.9 million,
$0.55 per unit, and $107.0 million, respectively.
Investors are advised to review the Partnership's annual report
on Form 10-K that will be filed today for further details on the
2018 results, as well as the investor relations section of the
website where updated investor presentation for the fourth quarter
2018 has been provided. For detailed information on Adjusted net
income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA,
Adjusted EBITDA (excluding LCM/LIFO), Adjusted EBITDA margin,
Adjusted earnings (loss) per unit, Specialty products segment gross
profit (excluding LCM/LIFO), Fuel products segment gross profit
(excluding LCM/LIFO) and a reconciliation of such measures to the
nearest comparable GAAP measure for the periods presented above,
please see the sections of this release entitled "Non-GAAP
Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"I am pleased to report record profitability results on a pro
forma basis, which included over $107
million in Adjusted EBITDA for the fourth quarter and
$301 million in Adjusted EBITDA for
the fiscal year, after adjusting for non-cash inventory
adjustments," said Tim Go, Chief Executive Officer of Calumet. "Our
strong fourth quarter results were driven by gains across both our
Specialty Products and Fuel Products segments, despite the
seasonally weaker demand that is more typical for both businesses
at the end of the year. As the year progressed, Calumet delivered
improved execution and focus, as we implemented the strategic
growth plans developed by our business teams earlier in the year.
These plans were particularly impactful in our Specialty Products
segment during the fourth quarter, as the segment benefited from
improved utilization and enhanced performance in several key
product categories. Additionally, the Fuel Products segment
benefited from strong execution as it processed record volumes of
discounted heavy Canadian crudes and had record diesel sales at our
Great Falls refinery. Calumet's leverage has declined to 4.9x,
after excluding the impact of non-cash inventory adjustments."
Go concluded, "These record results are directly tied to the
hard work and commitment of our employees to reposition the
Partnership for long-term success. We will remain steadfast in our
efforts to improve our operational and financial performance
through a culture focused on continuous improvement and by
executing against our Self-Help initiatives. Phase I of our
Self-Help program was completed in the fourth quarter after
generating $182 million in
incremental Adjusted EBITDA, successfully meeting its three-year
goal. Phase II of the program is more focused on our Specialty
Products business and seeks to capture another $100 million in Adjusted EBITDA over the coming
three years, through recently completed improvement projects, new
quick hit projects, and other supply chain initiatives. These
programs are central to our efforts to both grow our profitability
and to delever our balance sheet as Calumet continues its
transformation to become the premier specialty petroleum products
company in the world."
Specialty Products Segment | Results Summary
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Dollars in
millions, except per barrel data)
|
Specialty products
segment gross profit
|
$
|
61.2
|
|
|
$
|
64.2
|
|
|
$
|
291.1
|
|
|
$
|
319.2
|
|
Specialty products
segment gross profit (excluding
LCM/LIFO)
|
$
|
72.9
|
|
|
$
|
63.8
|
|
|
$
|
297.2
|
|
|
$
|
311.3
|
|
Specialty products
segment Adjusted EBITDA
|
$
|
31.8
|
|
|
$
|
30.8
|
|
|
$
|
160.2
|
|
|
$
|
186.5
|
|
Specialty products
segment Adjusted EBITDA (excluding
LCM/LIFO)
|
$
|
44.1
|
|
|
$
|
30.4
|
|
|
$
|
166.3
|
|
|
$
|
178.6
|
|
Specialty products
segment gross profit per barrel
|
$
|
28.43
|
|
|
$
|
30.07
|
|
|
$
|
33.30
|
|
|
$
|
33.93
|
|
Specialty products
segment gross profit per barrel
(excluding LCM/LIFO)
|
$
|
33.86
|
|
|
$
|
29.88
|
|
|
$
|
34.00
|
|
|
$
|
33.09
|
|
Specialty products
segment Adjusted EBITDA Margin
|
9.7
|
%
|
|
9.8
|
%
|
|
11.6
|
%
|
|
14.3
|
%
|
Specialty products
segment Adjusted EBITDA Margin
(excluding LCM/LIFO)
|
13.4
|
%
|
|
9.7
|
%
|
|
12.0
|
%
|
|
13.7
|
%
|
During the fourth quarter 2018, Specialty Products segment gross
profit was $61.2 million and Adjusted
EBITDA was $31.8 million, which
included $12.3 million of unfavorable
impact related to LCM and LIFO adjustments. Excluding these
non-cash charges, fourth quarter segment gross profit (excluding
LCM/LIFO) of $72.9 million, and
Adjusted EBITDA (excluding LCM/LIFO) of $44.1 million improved 14% and 45%, respectively,
versus fourth quarter 2017. Improved results were driven by strong
operating performance across the business, which allowed the
segment to capture higher margins on Solvent products and drive
improved base oil volumes, despite ongoing weakness in the
Paraffinic base oil market.
Fuel Products Segment | Results Summary
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Dollars in
millions, except per barrel data)
|
Fuel products segment
gross profit
|
$
|
34.6
|
|
|
$
|
33.1
|
|
|
$
|
145.6
|
|
|
$
|
179.0
|
|
Fuel products segment
gross profit (excluding
LCM/LIFO)
|
$
|
71.4
|
|
|
$
|
22.3
|
|
|
$
|
176.4
|
|
|
$
|
160.0
|
|
Fuel products segment
Adjusted EBITDA
|
$
|
21.9
|
|
|
$
|
10.7
|
|
|
$
|
103.7
|
|
|
$
|
127.8
|
|
Fuel products segment
Adjusted EBITDA (excluding
LCM/LIFO)
|
$
|
60.9
|
|
|
$
|
(0.1)
|
|
|
$
|
134.5
|
|
|
$
|
108.8
|
|
Fuel products segment
gross profit per barrel (excluding
hedging activities)
|
$
|
5.11
|
|
|
$
|
4.07
|
|
|
$
|
5.45
|
|
|
$
|
4.61
|
|
Fuel products segment
gross profit per barrel (excluding
hedging activities,
LCM/LIFO)
|
$
|
10.55
|
|
|
$
|
2.74
|
|
|
$
|
6.60
|
|
|
$
|
4.12
|
|
During the fourth quarter 2018, Fuel Products segment gross
profit of $34.6 million and Adjusted
EBITDA of $21.9 million both
increased compared to the year-ago period, despite $39.0 million of unfavorable non-cash LCM and
LIFO adjustments. After adjusting for these non-cash impacts,
segment gross profit (excluding LCM/LIFO) performance increased by
220% to $71.4 million year-over-year,
and Adjusted EBITDA (excluding LCM/LIFO) increased to $60.9 million versus fourth quarter 2017. Strong
operating performance and execution against the Company's strategic
plan drove these strong results and positioned the segment to
capture expanded crude differentials and healthy diesel crack
spreads, which were partially offset by a 6% year-over-year
decrease in the benchmark Gulf Coast 2/1/1 crack spread. Quarterly
Adjusted EBITDA excluding LCM and LIFO adjustments was $60.9 million, which increased significantly
compared to the year-ago results for Adjusted EBITDA of
$(0.1) million, which also included
$16.8 million Adjusted EBITDA
contribution from the previously divested Superior refinery.
Segment gross profit per barrel also improved significantly, driven
by widening WCS-WTI and Midland-WTI crude differentials and the
year-over-year increase in refined product margins, which were
partially offset by slightly lower volumes.
Partnership Liquidity
As of December 31, 2018, the Partnership had total
liquidity of $451.4 million,
comprised of $155.7 million of cash
on hand, plus approximately $295.7
million of availability under its revolving credit facility.
The borrowing base under the revolving credit facility was
approximately $330.8 million and the
company had $35.1 million in
outstanding standby letters of credit and no outstanding
borrowings. The Partnership believes it will continue to have
sufficient liquidity from cash on hand, cash flow from operations,
borrowing capacity and other means by which to meet its financial
commitments, debt service obligations, contingencies and
anticipated capital expenditures.
2019 Outlook
- For fiscal 2019, total capital spending is expected to be
between $80 million and $90 million. Included in the forecast is
maintenance capital, expected turnaround activity and smaller
growth capital projects.
- The Partnership recently announced Phase II of its self-help
operations excellence initiative, with the goal of achieving
roughly $100 million in Adjusted
EBITDA by the year-end of 2021. The Company anticipates spending
between $25 million and $45 million in capital over the three-year period
to achieve these results. The Partnership is unable to provide a
reconciliation of these projected Adjusted EBITDA amounts to
projected net income (loss), the most comparable financial measure
calculated in accordance with GAAP, due to the unknown effect,
timing and potential significance of certain income statement
items.
Operations Summary
The following table sets forth information about our combined
operations, excluding the results of discontinued operations.
Facility production volume differs from sales volume due to changes
in inventories and the sale of purchased fuel product blendstocks
such as ethanol and biodiesel and the resale of crude oil in our
fuel products segment.
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In
bpd)
|
|
(In
bpd)
|
Total sales volume
(1)
|
96,967
|
|
111,522
|
|
97,104
|
|
132,082
|
Total feedstock runs
(2)
|
91,972
|
|
108,415
|
|
94,137
|
|
128,624
|
Facility production:
(3)
|
|
|
|
|
|
|
|
Specialty
products:
|
|
|
|
|
|
|
|
Lubricating
oils
|
12,202
|
|
13,155
|
|
11,931
|
|
14,606
|
Solvents
|
7,166
|
|
7,589
|
|
7,649
|
|
7,761
|
Waxes
|
1,596
|
|
1,381
|
|
1,279
|
|
1,423
|
Packaged and
synthetic specialty products (4)
|
1,581
|
|
1,720
|
|
2,129
|
|
2,206
|
Other
|
1,544
|
|
1,177
|
|
2,113
|
|
1,811
|
Total
|
24,089
|
|
25,022
|
|
25,101
|
|
27,807
|
|
|
|
|
|
|
|
|
Fuel
products:
|
|
|
|
|
|
|
|
Gasoline
|
20,751
|
|
29,461
|
|
20,323
|
|
35,713
|
Diesel
|
27,522
|
|
28,985
|
|
27,367
|
|
33,277
|
Jet fuel
|
2,084
|
|
4,054
|
|
2,895
|
|
5,368
|
Asphalt, heavy fuel
oils and other
|
19,433
|
|
22,550
|
|
19,612
|
|
29,396
|
Total
|
69,790
|
|
85,050
|
|
70,197
|
|
103,754
|
Total facility
production (3)
|
93,879
|
|
110,072
|
|
95,298
|
|
131,561
|
________________
|
|
(1)
|
Total sales volume
includes sales from the production at our facilities and certain
third-party facilities pursuant to supply and/or processing
agreements, sales of inventories and the resale of crude oil to
third party customers. Total sales volume includes the sale of
purchased fuel product blendstocks, such as ethanol and biodiesel,
as components of finished fuel products in our fuel products
segment sales.
|
|
|
(2)
|
Total feedstock runs
represent the barrels per day of crude oil and other feedstocks
processed at our facilities and at certain third-party facilities
pursuant to supply and/or processing agreements.
|
|
|
(3)
|
Total facility
production represents the barrels per day of specialty products and
fuel products yielded from processing crude oil and other
feedstocks at our facilities and at certain third-party facilities
pursuant to supply and/or processing agreements. The difference
between total facility production and total feedstock runs is
primarily a result of the time lag between the input of feedstocks
and the production of finished products and volume loss.
|
|
|
(4)
|
Represents production
of finished lubricants and specialty chemicals products, including
the products from the Royal Purple, Bel-Ray and Calumet Packaging
facilities.
|
Derivatives Summary
The following table summarizes the derivative activity reflected
in the consolidated statements of operations and consolidated
statements of cash flows for the three months and years ended
December 31, 2018 and 2017:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In
millions)
|
|
(In
millions)
|
Realized gain (loss)
on derivative instruments
|
$
|
6.0
|
|
$
|
(6.0)
|
|
$
|
3.6
|
|
$
|
(13.2)
|
Unrealized gain on
derivative instruments
|
29.8
|
|
1.4
|
|
30.2
|
|
3.6
|
Total derivative gain
(loss) reflected in the consolidated statements of
operations
|
$
|
35.8
|
|
$
|
(4.6)
|
|
$
|
33.8
|
|
$
|
(9.6)
|
Total gain (loss) on
commodity derivative settlements
|
$
|
6.0
|
|
$
|
(6.0)
|
|
$
|
3.6
|
|
$
|
(13.2)
|
About the Partnership
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a
master limited partnership and a leading independent producer of
high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and
other feedstocks into customized lubricating oils, solvents and
waxes used in consumer, industrial and automotive products as well
as produces fuel products including gasoline, diesel and jet fuel.
Calumet is based in Indianapolis,
Indiana, and operates eleven manufacturing facilities
located in northwest Louisiana,
northern Montana, western
Pennsylvania, Texas, New
Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release, may
constitute "forward-looking statements." The words "believe,"
"expect," "anticipate," "plan," "intend," "foresee," "should,"
"would," "could" or other similar expressions are intended to
identify forward-looking statements, which are generally not
historical in nature. The statements discussed in this press
release that are not purely historical data are forward-looking
statements, including, but not limited to, the statements regarding
(i) our expectation regarding our business outlook and cash flows,
(ii) our expectation regarding anticipated capital expenditures and
strategic initiatives, (iii) our ability to meet our financial
commitments, debt service obligations, contingencies and
anticipated capital expenditures, and (iv) estimated capital
expenditures. These forward-looking statements are based on our
current expectations and beliefs concerning future developments and
their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. All comments concerning our expectations
for future sales and operating results are based on our forecasts
for our existing operations and do not include the potential impact
of any future acquisitions. Our forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions that could cause our actual results to
differ materially from our historical experience and our present
expectations or projections. Known material factors that could
cause actual results to differ materially from those in the
forward-looking statements include: the overall demand for
specialty hydrocarbon products, fuels and other refined products;
the level of foreign and domestic production of crude oil and
refined products; our ability to produce specialty products and
fuels products that meet our customers' unique and precise
specifications; the impact of fluctuations and rapid increases or
decreases in crude oil and crack spread prices, including the
resulting impact on our liquidity; the results of our hedging and
other risk management activities; our ability to comply with
financial covenants contained in our debt instruments; the
availability of, and our ability to consummate, acquisition or
combination opportunities and the impact of any completed
acquisitions; labor relations; our access to capital to fund
expansions, acquisitions and our working capital needs and our
ability to obtain debt or equity financing on satisfactory terms;
successful integration and future performance of acquired assets,
businesses or third-party product supply and processing
relationships; our ability to timely and effectively integrate the
operations of acquired businesses or assets, particularly those in
new geographic areas or in new lines of business; environmental
liabilities or events that are not covered by an indemnity,
insurance or existing reserves; maintenance of our credit ratings
and ability to receive open credit lines from our suppliers; demand
for various grades of crude oil and resulting changes in pricing
conditions; fluctuations in refinery capacity; our ability to
access sufficient crude oil supply through long-term or
month-to-month evergreen contracts and on the spot market; the
effects of competition; continued creditworthiness of, and
performance by, counterparties; the impact of current and future
laws, rulings and governmental regulations, including guidance
related to the Dodd-Frank Wall Street Reform and Consumer
Protection Act; the costs of complying with the Renewable Fuel
Standard, including the prices paid for RINs; shortages or cost
increases of power supplies, natural gas, materials or labor;
hurricane or other weather interference with business operations;
our ability to access the debt and equity markets; accidents or
other unscheduled shutdowns; and general economic, market or
business conditions.
For additional information regarding known material factors that
could cause our actual results to differ from our projected
results, please see our filings with the Securities and Exchange
Commission ("SEC"), including our latest Annual Report on Form 10-K
and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update or revise
any forward-looking statements after the date they are made,
whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
Our management uses certain non-GAAP performance measures to
analyze operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our GAAP financial information presented in
accordance with U.S. GAAP. These financial and operational non-GAAP
measures are important factors in assessing our operating results
and profitability and include performance and liquidity measures
along with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss)
plus interest expense (including debt issuance costs), income taxes
and depreciation and amortization.
Adjusted EBITDA: We define Adjusted EBITDA for any period as:
EBITDA adjusted for (a) impairment; (b) unrealized gains and
losses from mark to market accounting for hedging activities;
(c) realized gains and losses under derivative instruments
excluded from the determination of net income (loss);
(d) non-cash equity-based compensation expense and other
non-cash items (excluding items such as accruals of cash expenses
in a future period or amortization of a prepaid cash expense) that
were deducted in computing net income (loss); (e) debt
refinancing fees, premiums and penalties; (f) any net loss realized
in connection with an asset sale that was deducted in computing net
income (loss) and (g) all extraordinary, unusual or
non-recurring items of gain or loss, or revenue or expense.
Distributable Cash Flow: We define Distributable Cash Flow for
any period as Adjusted EBITDA less replacement and environmental
capital expenditures, turnaround costs, cash interest expense
(consolidated interest expense less non-cash interest expense),
income (loss) from unconsolidated affiliates, net of cash
distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any
period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss)
for any period as: net income (loss) adjusted for (a) impairment;
(b) unrealized losses from mark to market accounting for
hedging activities; (c) realized gains under derivative
instruments excluded from the determination of net income (loss);
(d) non-cash equity-based compensation expense and other
non-cash items (excluding items such as accruals of cash expenses
in a future period or amortization of a prepaid cash expense) that
were deducted in computing net income (loss); (e) debt
refinancing fees, premiums and penalties; (f) any net loss realized
in connection with an asset sale that was deducted in computing net
income (loss) and (g) all extraordinary, unusual or
non-recurring items of gain or loss, or revenue or expense; (h)
lower of cost or market ("LCM") inventory adjustments and (i) the
impact of liquidation of LIFO inventory layers.
Adjusted earnings (loss) per unit: We define Adjusted earnings
(loss) per unit for any period as Adjusted net income (loss)
divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA
(excluding LCM/LIFO) for any period as Adjusted EBITDA excluding
the impact of LCM inventory adjustments and the impact of
liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We
define Specialty products segment gross profit (excluding LCM/LIFO)
for any period as Specialty products segment gross profit excluding
the impact of LCM inventory adjustments and the impact of
liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We
define fuels products segment gross profit (excluding LCM/LIFO) for
any period as Fuel products segment gross profit excluding the
impact of LCM inventory adjustments and the impact of liquidation
of LIFO inventory layers.
The definitions of Adjusted EBITDA and Distributable Cash Flow
that are presented in this press release are consistent with the
calculation of "Consolidated Cash Flow" contained in the indentures
governing our 7.625% senior notes due January 15, 2022, that were issued in
November 2013 (the "2022 Notes"), our
6.50% senior notes due April 15,
2021, that were issued in March
2014 (the "2021 Notes") and our 7.75% senior notes due
April 15, 2023 (the "2023 Notes"),
that were issued in March 2015. We
are required to report Consolidated Cash Flow to the holders of our
2021 Notes, 2022 Notes and 2023 Notes and Adjusted EBITDA to the
lenders under our revolving credit facility, and these measures are
used by them to determine our compliance with certain covenants
governing those debt instruments. Please see our filings with the
SEC, including our most recent Annual Report on Form 10-K and
Current Reports on Form 8-K, for additional details regarding the
covenants governing our debt instruments.
These non-GAAP measures are used as supplemental financial
measures by our management and by external users of our financial
statements such as investors, commercial banks, research analysts
and others, to assess:
- the financial performance of our assets without regard to
financing methods, capital structure or historical cost basis;
- the ability of our assets to generate cash sufficient to pay
interest costs and support our indebtedness;
- our operating performance and return on capital as compared to
those of other companies in our industry, without regard to
financing or capital structure;
- the viability of acquisitions and capital expenditure projects
and the overall rates of return on alternative investment
opportunities; and
- our operating performance excluding the non-cash impact of LCM
and LIFO inventory adjustments.
We believe that these non-GAAP measures are useful to analysts
and investors as they exclude transactions not related to our core
cash operating activities and provide metrics to analyze our
ability to pay distributions and interest costs. We believe that
excluding these transactions allows investors to meaningfully
analyze trends and performance of our core cash operations.
EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net
income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA
(excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO)
should not be considered alternatives to Net loss, Operating income
(loss), Net cash provided by (used in) operating activities, gross
profit or any other measure of financial performance presented in
accordance with GAAP. In evaluating our performance as measured by
EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net
income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA
(excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO)
management recognizes and considers the limitations of these
measurements. EBITDA, Adjusted EBITDA and Adjusted EBITDA
(excluding LCM/LIFO) do not reflect our obligations for the payment
of income taxes, interest expense or other obligations such as
capital expenditures. Accordingly, EBITDA, Adjusted EBITDA,
Distributable Cash Flow and Adjusted net income (loss), Adjusted
earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and
segment gross profit (excluding LCM/LIFO) are only a few of several
measurements that management utilizes. Moreover, our EBITDA,
Adjusted EBITDA, Distributable Cash Flow, Adjusted net income
(loss), Adjusted earnings (loss) per unit, Adjusted EBITDA
(excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO)
may not be comparable to similarly titled measures of another
company because all companies may not calculate EBITDA, Adjusted
EBITDA, Distributable Cash Flow, Adjusted net income (loss),
Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding
LCM/LIFO) and segment gross profit (excluding LCM/LIFO) in the same
manner. Please see the section of this release entitled "Non-GAAP
Reconciliations" for tables that present reconciliations of EBITDA,
Adjusted EBITDA, Distributable Cash Flow and Adjusted net income
(loss) to Net income (loss), our most directly comparable GAAP
financial performance measure; Distributable Cash Flow to net cash
provided by (used in) operating activities, our most directly
comparable GAAP liquidity measure, for each of the periods
indicated; and segment gross profit (excluding LCM/LIFO) to segment
gross profit, our most directly comparable GAAP financial
performance measure.
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In millions,
except unit and per unit data)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
|
|
|
Sales
|
$
|
848.0
|
|
$
|
883.8
|
|
$
|
3,497.5
|
|
$
|
3,763.8
|
Cost of
sales
|
752.2
|
|
786.5
|
|
3,060.8
|
|
3,265.6
|
Gross
profit
|
95.8
|
|
97.3
|
|
436.7
|
|
498.2
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
Selling
|
21.2
|
|
19.9
|
|
58.2
|
|
65.7
|
General and
administrative
|
19.3
|
|
35.4
|
|
122.5
|
|
138.7
|
Transportation
|
37.5
|
|
35.7
|
|
137.2
|
|
137.1
|
Taxes other than
income taxes
|
4.9
|
|
7.3
|
|
18.1
|
|
24.1
|
Asset
impairment
|
—
|
|
206.9
|
|
—
|
|
207.3
|
Gain on the sale of
business, net
|
—
|
|
(236.0)
|
|
(4.8)
|
|
(236.0)
|
Other
|
(3.5)
|
|
(3.5)
|
|
(17.4)
|
|
3.3
|
Operating
income
|
16.4
|
|
31.6
|
|
122.9
|
|
158.0
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(35.1)
|
|
(47.3)
|
|
(155.5)
|
|
(183.1)
|
Debt extinguishment
costs
|
—
|
|
—
|
|
(58.8)
|
|
—
|
Gain (loss) on
derivative instruments
|
35.8
|
|
(4.6)
|
|
33.8
|
|
(9.6)
|
Loss from
unconsolidated affiliates
|
—
|
|
—
|
|
(3.7)
|
|
—
|
Gain on sale of
unconsolidated affiliates
|
—
|
|
—
|
|
0.2
|
|
—
|
Other
|
1.7
|
|
1.7
|
|
10.8
|
|
3.3
|
Total other income
(expense)
|
2.4
|
|
(50.2)
|
|
(173.2)
|
|
(189.4)
|
Net income (loss)
before income taxes from continuing operations
|
18.8
|
|
(18.6)
|
|
(50.3)
|
|
(31.4)
|
Income tax expense
(benefit) from continuing operations
|
(0.3)
|
|
0.1
|
|
0.7
|
|
(0.1)
|
Net income (loss)
from continuing operations
|
$
|
19.1
|
|
$
|
(18.7)
|
|
$
|
(51.0)
|
|
$
|
(31.3)
|
Net loss from
discontinued operations, net of taxes
|
(1.0)
|
|
(64.9)
|
|
(4.1)
|
|
(72.5)
|
Net income
(loss)
|
$
|
18.1
|
|
$
|
(83.6)
|
|
$
|
(55.1)
|
|
$
|
(103.8)
|
Allocation of net
income (loss):
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
18.1
|
|
$
|
(83.6)
|
|
$
|
(55.1)
|
|
$
|
(103.8)
|
Less:
|
|
|
|
|
|
|
|
General partner's
interest in net income (loss)
|
0.4
|
|
(1.7)
|
|
(1.1)
|
|
(2.1)
|
Net income (loss)
available to limited partners
|
$
|
17.7
|
|
$
|
(81.9)
|
|
$
|
(54.0)
|
|
$
|
(101.7)
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Basic
|
78,086,357
|
|
77,784,534
|
|
77,943,992
|
|
77,598,950
|
Diluted
|
78,218,831
|
|
77,784,534
|
|
77,943,992
|
|
77,598,950
|
|
|
|
|
|
|
|
|
Limited partners'
interest basic and diluted net income (loss) per unit:
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
0.24
|
|
$
|
(0.24)
|
|
$
|
(0.64)
|
|
$
|
(0.40)
|
From discontinued
operations
|
(0.01)
|
|
(0.82)
|
|
(0.05)
|
|
(0.91)
|
Limited partners'
interest
|
$
|
0.23
|
|
$
|
(1.06)
|
|
$
|
(0.69)
|
|
$
|
(1.31)
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
CONSOLIDATED
BALANCE SHEETS
|
(In
millions)
|
|
|
|
December
31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
155.7
|
|
$
|
164.3
|
Restricted
cash
|
—
|
|
350.0
|
Accounts receivable,
net
|
198.0
|
|
354.1
|
Inventories
|
284.1
|
|
314.4
|
Derivative
assets
|
18.3
|
|
—
|
Prepaid expenses and
other current assets
|
13.9
|
|
8.7
|
Total current
assets
|
670.0
|
|
1,191.5
|
Property, plant and
equipment, net
|
1,098.1
|
|
1,159.2
|
Investment in
unconsolidated affiliates
|
25.4
|
|
35.0
|
Goodwill
|
171.4
|
|
171.4
|
Other intangible
assets, net
|
88.0
|
|
107.9
|
Other noncurrent
assets, net
|
34.6
|
|
23.8
|
Total
assets
|
$
|
2,087.5
|
|
$
|
2,688.8
|
LIABILITIES AND
PARTNERS' CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
200.6
|
|
$
|
282.3
|
Accrued interest
payable
|
30.7
|
|
52.5
|
Accrued salaries,
wages and benefits
|
25.7
|
|
35.9
|
Other taxes
payable
|
15.2
|
|
16.1
|
Obligations under
inventory financing agreements
|
105.3
|
|
103.1
|
Other current
liabilities
|
33.8
|
|
73.7
|
Current portion of
long-term debt
|
3.8
|
|
354.1
|
Derivative
liabilities
|
—
|
|
6.0
|
Discontinued
operations, current liabilities
|
—
|
|
2.0
|
Total current
liabilities
|
415.1
|
|
925.7
|
Pension and
postretirement benefit obligations
|
4.5
|
|
3.1
|
Other long-term
liabilities
|
1.5
|
|
1.9
|
Long-term debt, less
current portion
|
1,600.7
|
|
1,638.2
|
Total
liabilities
|
2,021.8
|
|
2,568.9
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
Partners'
capital
|
74.4
|
|
127.1
|
Accumulated other
comprehensive loss
|
(8.7)
|
|
(7.2)
|
Total partners'
capital
|
65.7
|
|
119.9
|
Total liabilities and
partners' capital
|
$
|
2,087.5
|
|
$
|
2,688.8
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
millions)
|
|
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
|
|
|
Operating
activities
|
|
|
|
Net loss
|
$
|
(55.1)
|
|
$
|
(103.8)
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Net loss from
discontinued operations
|
4.1
|
|
72.5
|
Depreciation and
amortization
|
118.1
|
|
154.8
|
Amortization of
turnaround costs
|
12.8
|
|
24.3
|
Non-cash interest
expense
|
7.9
|
|
10.2
|
Loss on debt
extinguishment costs
|
58.8
|
|
—
|
Unrealized gain on
derivative instruments
|
(30.2)
|
|
(3.6)
|
Asset
impairment
|
—
|
|
207.3
|
Equity based
compensation
|
(1.2)
|
|
11.6
|
Lower of cost or
market inventory adjustment
|
30.6
|
|
(30.6)
|
Loss from
unconsolidated affiliates
|
3.7
|
|
—
|
Gain on sale of
unconsolidated affiliates
|
(0.2)
|
|
—
|
Gain on sale of
business, net
|
(4.8)
|
|
(236.0)
|
Other non-cash
activities
|
6.8
|
|
10.2
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
109.8
|
|
(158.9)
|
Inventories
|
(0.3)
|
|
(8.5)
|
Prepaid expenses and
other current assets
|
(4.5)
|
|
(0.8)
|
Derivative
activity
|
(0.5)
|
|
(0.5)
|
Turnaround
costs
|
(27.9)
|
|
(14.5)
|
Other
assets
|
—
|
|
(0.5)
|
Accounts
payable
|
(78.2)
|
|
70.6
|
Accrued interest
payable
|
(21.8)
|
|
0.9
|
Accrued salaries,
wages and benefits
|
(5.6)
|
|
18.0
|
Other taxes
payable
|
(0.9)
|
|
0.9
|
Other
liabilities
|
(45.4)
|
|
(24.2)
|
Pension and
postretirement benefit obligations
|
(0.1)
|
|
(2.7)
|
Net cash used in
discontinued operating activities
|
(0.7)
|
|
(23.2)
|
Net cash provided
(used in) by operating activities
|
75.2
|
|
(26.5)
|
Investing
activities
|
|
|
|
Additions to
property, plant and equipment
|
(49.8)
|
|
(70.0)
|
Investment in
unconsolidated affiliates
|
(3.8)
|
|
—
|
Proceeds from sale of
unconsolidated affiliates
|
9.9
|
|
—
|
Proceeds from sale of
property, plant and equipment
|
0.4
|
|
0.3
|
Proceeds from sale of
business, net
|
44.8
|
|
484.5
|
Net cash provided by
discontinued investing activities
|
6.8
|
|
38.6
|
Net cash provided by
investing activities
|
8.3
|
|
453.4
|
Financing
activities
|
|
|
|
Proceeds from
borrowings — revolving credit facility
|
174.5
|
|
901.2
|
Repayments of
borrowings — revolving credit facility
|
(174.7)
|
|
(911.2)
|
Repayments of
borrowings — senior notes
|
(400.0)
|
|
—
|
Payments on capital
lease obligations
|
(1.6)
|
|
(2.5)
|
Proceeds from
inventory financing agreements
|
1,135.3
|
|
671.6
|
Payments on inventory
financing agreements
|
(1,128.3)
|
|
(571.5)
|
Proceeds from other
financing activities
|
4.7
|
|
—
|
Payments on other
financing obligations
|
(2.5)
|
|
(2.3)
|
Payments on
extinguishment of debt
|
(46.6)
|
|
—
|
Debt issuance
costs
|
(3.0)
|
|
(2.2)
|
Contributions from
Calumet GP, LLC
|
0.1
|
|
0.1
|
Net cash provided
(used in) by financing activities
|
(442.1)
|
|
83.2
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(358.6)
|
|
510.1
|
Cash, cash
equivalents and restricted cash at beginning of period
|
514.3
|
|
4.2
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
155.7
|
|
$
|
514.3
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
NET INCOME (LOSS)
|
TO EBITDA,
ADJUSTED EBITDA AND DISTRIBUTABLE CASH
FLOW
|
(In
millions)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reconciliation of
Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash
Flow:
|
(Unaudited)
|
Net income
(loss)
|
$
|
18.1
|
|
$
|
(83.6)
|
|
$
|
(55.1)
|
|
$
|
(103.8)
|
Add:
|
|
|
|
|
|
|
|
Interest
expense
|
35.1
|
|
47.3
|
|
155.5
|
|
183.1
|
Depreciation and
amortization
|
29.3
|
|
37.9
|
|
118.1
|
|
168.5
|
Income tax expense
(benefit)
|
(0.3)
|
|
—
|
|
0.7
|
|
(1.1)
|
EBITDA
|
$
|
82.2
|
|
$
|
1.6
|
|
$
|
219.2
|
|
$
|
246.7
|
Add:
|
|
|
|
|
|
|
|
Unrealized gain on
derivative instruments
|
$
|
(29.8)
|
|
$
|
(1.4)
|
|
$
|
(30.2)
|
|
$
|
(3.6)
|
Realized loss on
derivatives, not included in net income (loss) or settled in a
prior period
|
(2.8)
|
|
—
|
|
—
|
|
—
|
Debt extinguishment
costs
|
—
|
|
—
|
|
58.8
|
|
—
|
Amortization of
turnaround costs
|
4.1
|
|
3.9
|
|
12.8
|
|
24.3
|
Impairment charges
(1)
|
—
|
|
206.9
|
|
—
|
|
207.3
|
(Gain) loss on sale
of business
|
2.9
|
|
(173.4)
|
|
(0.7)
|
|
(173.4)
|
Equity based
compensation and other non-cash items
|
(0.9)
|
|
3.6
|
|
4.0
|
|
15.9
|
Adjusted
EBITDA
|
$
|
55.7
|
|
$
|
41.2
|
|
$
|
263.9
|
|
$
|
317.2
|
Less:
|
|
|
|
|
|
|
|
Replacement and
environmental capital expenditures (2)
|
$
|
8.4
|
|
$
|
20.9
|
|
$
|
24.4
|
|
$
|
42.0
|
Cash interest expense
(3)
|
33.3
|
|
44.7
|
|
147.6
|
|
172.9
|
Turnaround
costs
|
16.8
|
|
3.2
|
|
27.9
|
|
14.5
|
Loss from
unconsolidated affiliates
|
—
|
|
—
|
|
(3.7)
|
|
(0.4)
|
Income tax expense
(benefit)
|
(0.3)
|
|
—
|
|
0.7
|
|
(1.1)
|
Distributable Cash
Flow
|
$
|
(2.5)
|
|
$
|
(27.6)
|
|
$
|
67.0
|
|
$
|
89.3
|
________________
|
|
(1)
|
Impairment charges
for 2017 primarily relate to $59.2 million of long-lived asset
impairment charges related to the specialty products segment and
$147.0 million of long-lived asset impairment charges related to
the fuel products segment.
|
|
|
(2)
|
Replacement capital
expenditures are defined as those capital expenditures which do not
increase operating capacity or reduce operating costs and exclude
turnaround costs. Environmental capital expenditures include asset
additions to meet or exceed environmental and operating
regulations.
|
|
|
(3)
|
Represents
consolidated interest expense less non-cash interest
expense.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA
|
TO NET CASH
PROVIDED BY (USED IN)
OPERATING ACTIVITIES
|
(In
millions)
|
|
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
Reconciliation of
Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash
provided by (used in) operating activities:
|
(Unaudited)
|
Distributable Cash
Flow
|
$
|
67.0
|
|
$
|
89.3
|
Add:
|
|
|
|
Replacement and
environmental capital expenditures (1)
|
24.4
|
|
42.0
|
Cash interest expense
(2)
|
147.6
|
|
172.9
|
Turnaround
costs
|
27.9
|
|
14.5
|
Loss from
unconsolidated affiliates
|
(3.7)
|
|
(0.4)
|
Income tax benefit
(expense)
|
0.7
|
|
(1.1)
|
Adjusted
EBITDA
|
$
|
263.9
|
|
$
|
317.2
|
Less:
|
|
|
|
Unrealized gain on
derivative instruments
|
$
|
(30.2)
|
|
$
|
(3.6)
|
Debt extinguishment
costs
|
58.8
|
|
—
|
Amortization of
turnaround costs
|
12.8
|
|
24.3
|
Impairment charges
(3)
|
—
|
|
207.3
|
Loss on sale of
unconsolidated affiliate
|
—
|
|
—
|
Gain on the sale of
businesses, net
|
(0.7)
|
|
(173.4)
|
Non-cash equity-based
compensation and other items
|
4.0
|
|
15.9
|
EBITDA
|
$
|
219.2
|
|
$
|
246.7
|
Add:
|
|
|
|
Unrealized gain on
derivative instruments
|
(30.2)
|
|
(3.6)
|
Cash interest expense
(2)
|
(147.6)
|
|
(172.9)
|
Gain on the sale of
businesses, net
|
(0.7)
|
|
(173.4)
|
Asset
impairment
|
—
|
|
207.3
|
Lower of cost or
market inventory adjustment
|
30.6
|
|
(30.6)
|
Equity-based
compensation
|
(1.2)
|
|
11.6
|
Loss from
unconsolidated affiliates
|
3.7
|
|
0.4
|
Amortization of
turnaround costs
|
12.8
|
|
24.3
|
Income tax
benefit
|
(0.7)
|
|
1.1
|
Debt extinguishment
costs
|
58.8
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
109.8
|
|
(200.7)
|
Inventories
|
(0.3)
|
|
(18.1)
|
Other current
assets
|
(4.5)
|
|
(0.5)
|
Turnaround
costs
|
(27.9)
|
|
(14.5)
|
Derivative
activity
|
(0.5)
|
|
(0.5)
|
Other
assets
|
—
|
|
(0.5)
|
Accounts
payable
|
(78.2)
|
|
94.1
|
Accrued interest
payable
|
(21.8)
|
|
0.9
|
Other current
liabilities
|
(51.9)
|
|
(5.3)
|
Other
|
5.8
|
|
7.7
|
Net cash provided by
(used in) operating activities
|
$
|
75.2
|
|
$
|
(26.5)
|
_________________
|
|
(1)
|
Replacement capital
expenditures are defined as those capital expenditures which do not
increase operating capacity or reduce operating costs and exclude
turnaround costs. Environmental capital expenditures include asset
additions to meet or exceed environmental and operating
regulations.
|
|
|
(2)
|
Represents
consolidated interest expense less non-cash interest
expense.
|
|
|
(3)
|
Impairment charges
for 2017 primarily relate to $59.2 million of long-lived asset
impairment charges related to the specialty products segment and
$147.0 million of long-lived asset impairment charges related to
the fuel products segment.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS)
|
(In
millions)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reconciliation of
Segment Adjusted EBITDA to Net income (loss):
|
(Unaudited)
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Specialty products
Adjusted EBITDA
|
$
|
31.8
|
|
$
|
30.8
|
|
$
|
160.2
|
|
$
|
186.5
|
Fuel products
Adjusted EBITDA
|
21.9
|
|
10.7
|
|
103.7
|
|
127.8
|
Discontinued
operations Adjusted EBITDA
|
2.0
|
|
(0.3)
|
|
—
|
|
2.9
|
Total segment and
discontinued operations Adjusted EBITDA
|
$
|
55.7
|
|
$
|
41.2
|
|
$
|
263.9
|
|
$
|
317.2
|
Less:
|
|
|
|
|
|
|
|
Unrealized gain on
derivative instruments
|
$
|
(29.8)
|
|
$
|
(1.4)
|
|
$
|
(30.2)
|
|
$
|
(3.6)
|
Realized loss on
derivatives, not included in net loss or settled in a prior
period
|
(2.8)
|
|
—
|
|
—
|
|
—
|
Debt extinguishment
costs
|
—
|
|
—
|
|
58.8
|
|
—
|
Amortization of
turnaround costs
|
4.1
|
|
3.9
|
|
12.8
|
|
24.3
|
Impairment charges
(1)
|
—
|
|
206.9
|
|
—
|
|
207.3
|
(Gain) loss on sale
of businesses, net
|
2.9
|
|
(173.4)
|
|
(0.7)
|
|
(173.4)
|
Equity-based
compensation and other items
|
(0.9)
|
|
3.6
|
|
4.0
|
|
15.9
|
EBITDA
|
$
|
82.2
|
|
$
|
1.6
|
|
$
|
219.2
|
|
$
|
246.7
|
Less:
|
|
|
|
|
|
|
|
Interest
expense
|
$
|
35.1
|
|
$
|
47.3
|
|
$
|
155.5
|
|
$
|
183.1
|
Depreciation and
amortization
|
29.3
|
|
37.9
|
|
118.1
|
|
168.5
|
Income tax
benefit
|
(0.3)
|
|
—
|
|
0.7
|
|
(1.1)
|
Net income
(loss)
|
$
|
18.1
|
|
$
|
(83.6)
|
|
$
|
(55.1)
|
|
$
|
(103.8)
|
_________________
|
|
(1)
|
Impairment charges
for 2017 primarily relate to $59.2 million of long-lived asset
impairment charges related to the specialty products segment and
$147.0 million of long-lived asset impairment charges related to
the fuel products segment.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
SEGMENT METRICS EXCLUDING LCM/LIFO
|
(In
millions)
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reconciliation of
Segment Metrics Excluding LCM/LIFO:
|
|
(Unaudited)
|
Specialty Adjusted
EBITDA
|
|
$
|
31.8
|
|
$
|
30.8
|
|
$
|
160.2
|
|
$
|
186.5
|
LCM inventory
adjustments
|
|
9.7
|
|
(2.5)
|
|
3.4
|
|
(10.9)
|
LIFO inventory layer
adjustments
|
|
2.6
|
|
2.1
|
|
2.7
|
|
3.0
|
Specialty Adjusted
EBITDA (excluding LCM/LIFO)
|
|
$
|
44.1
|
|
$
|
30.4
|
|
$
|
166.3
|
|
$
|
178.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuels Adjusted
EBITDA
|
|
$
|
21.9
|
|
$
|
10.7
|
|
$
|
103.7
|
|
$
|
127.8
|
LCM inventory
adjustments
|
|
35.7
|
|
(11.6)
|
|
27.2
|
|
(19.7)
|
LIFO inventory layer
adjustments
|
|
3.3
|
|
0.8
|
|
3.6
|
|
0.7
|
Fuels Adjusted EBITDA
(excluding LCM/LIFO)
|
|
$
|
60.9
|
|
$
|
(0.1)
|
|
$
|
134.5
|
|
$
|
108.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA
|
|
$
|
55.7
|
|
$
|
41.2
|
|
$
|
263.9
|
|
$
|
317.2
|
LCM inventory
adjustments
|
|
45.4
|
|
(14.1)
|
|
30.6
|
|
(30.6)
|
LIFO inventory layer
adjustments
|
|
5.9
|
|
2.9
|
|
6.3
|
|
3.7
|
Total Adjusted EBITDA
(excluding LCM/LIFO)
|
|
$
|
107.0
|
|
$
|
30.0
|
|
$
|
300.8
|
|
$
|
290.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty products
segment gross profit
|
|
$
|
61.2
|
|
$
|
64.2
|
|
$
|
291.1
|
|
$
|
319.2
|
LCM inventory
adjustments
|
|
9.1
|
|
(2.5)
|
|
3.4
|
|
(10.9)
|
LIFO inventory layer
adjustments
|
|
2.6
|
|
2.1
|
|
2.7
|
|
3.0
|
Specialty products
segment gross profit (excluding LCM/LIFO)
|
|
$
|
72.9
|
|
$
|
63.8
|
|
$
|
297.2
|
|
$
|
311.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel products segment
gross profit
|
|
$
|
34.6
|
|
$
|
33.1
|
|
$
|
145.6
|
|
$
|
179.0
|
LCM inventory
adjustments
|
|
33.5
|
|
(11.6)
|
|
27.2
|
|
(19.7)
|
LIFO inventory layer
adjustments
|
|
3.3
|
|
0.8
|
|
3.6
|
|
0.7
|
Fuel products segment
gross profit (excluding LCM/LIFO)
|
|
$
|
71.4
|
|
$
|
22.3
|
|
$
|
176.4
|
|
$
|
160.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Specialty
gross profit per barrel
|
|
$
|
28.43
|
|
$
|
30.07
|
|
$
|
33.30
|
|
$
|
33.93
|
LCM/LIFO inventory
adjustments per barrel
|
|
5.43
|
|
(0.19)
|
|
0.70
|
|
(0.84)
|
Specialty gross
profit per barrel (excluding LCM/LIFO)
|
|
$
|
33.86
|
|
$
|
29.88
|
|
$
|
34.00
|
|
$
|
33.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Fuels gross
profit per barrel
|
|
$
|
5.11
|
|
$
|
4.07
|
|
$
|
5.45
|
|
$
|
4.61
|
LCM/LIFO inventory
adjustments per barrel
|
|
5.44
|
|
(1.33)
|
|
1.15
|
|
(0.49)
|
Fuels gross profit
per barrel (excluding LCM/LIFO)
|
|
$
|
10.55
|
|
$
|
2.74
|
|
$
|
6.60
|
|
$
|
4.12
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P.
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss)
|
|
(Unaudited)
|
Net income
(loss)
|
|
$
|
18.1
|
|
$
|
(83.6)
|
|
$
|
(55.1)
|
|
$
|
(103.8)
|
Add:
|
|
|
|
|
|
|
|
|
LCM inventory
adjustments
|
|
45.4
|
|
(14.1)
|
|
30.6
|
|
(30.6)
|
LIFO inventory layer
adjustments
|
|
5.9
|
|
2.9
|
|
6.3
|
|
3.7
|
Unrealized gain on
derivative instruments
|
|
(29.8)
|
|
(1.4)
|
|
(30.2)
|
|
(3.6)
|
Realized loss on
derivatives, not included in net income (loss) or settled in a
prior period
|
|
(2.8)
|
|
—
|
|
—
|
|
—
|
Debt extinguishment
costs
|
|
—
|
|
—
|
|
58.8
|
|
—
|
Amortization of
turnaround costs
|
|
4.1
|
|
3.9
|
|
12.8
|
|
24.3
|
Impairment charges
(1)
|
|
—
|
|
206.9
|
|
—
|
|
207.3
|
(Gain) loss on sale
of business
|
|
2.9
|
|
(173.4)
|
|
(0.7)
|
|
(173.4)
|
Equity based
compensation and other non-cash items
|
|
(0.9)
|
|
3.6
|
|
4.0
|
|
15.9
|
Adjusted net income
(loss)
|
|
$
|
42.9
|
|
$
|
(55.2)
|
|
$
|
26.5
|
|
$
|
(60.2)
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per unit
|
|
$
|
0.55
|
|
$
|
(0.71)
|
|
$
|
0.34
|
|
$
|
(0.78)
|
|
|
|
|
|
|
|
|
|
Average limited
partner units - diluted
|
|
78,218,831
|
|
77,784,534
|
|
77,943,992
|
|
77,598,950
|
_________________
|
|
(1)
|
Impairment charges
for 2017 primarily relate to $59.2 million of long-lived asset
impairment charges related to the specialty products segment and
$147.0 million of long-lived asset impairment charges related to
the fuel products segment.
|
View original
content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-fourth-quarter-and-year-end-2018-results-300808143.html
SOURCE Calumet Specialty Products Partners, L.P.