Ciner Resources LP (NYSE: CINR) today reported its financial and
operating results for the fourth quarter and year ended December 31,
2015.
Fourth Quarter and Year Ended 2015 Financial Highlights:
-
Net sales of $126.4 million increased 0.3% over the prior-year fourth
quarter; year-to-date net sales of $486.4 million increased 4.6% over
the prior year.
-
Adjusted EBITDA of $35.9 million increased 3.2% over the prior-year
fourth quarter; year-to-date Adjusted EBITDA of $133.9 million
increased 11.1% over the prior year.
-
Earnings per unit was $0.69 in the fourth quarter, an increase of 1.5%
over the prior-year fourth quarter of $0.68; year-to-date earnings per
unit of $2.58 increased 15.7% over the prior-year.
-
Quarterly distribution declared per unit of $0.5575, increased 4.9%
over the prior-year fourth quarter; and 1.2% over third quarter 2015.
-
Distributable cash flow of $16.7 million increased 16.8% over the
prior-year fourth quarter; year-to-date distributable cash flow of
$55.7 million increased 4.9% over the prior-year. The distribution
coverage ratio was 1.50 and 1.27 for the fourth quarter and year ended
2015; and 1.35 and 1.29 for the fourth quarter and year ended 2014.
2016 Outlook:
-
We expect our total volume sold to increase 2% to 4%; which includes
an expected increase in domestic volume of 4% to 6%.
-
We expect international prices to decline 3% to 6%.
-
Maintenance of business capital expenditures are planned to be in the
range of $11 to $13 million.
-
Expansion capital expenditures are planned to be in the range of $15
to $18 million.
Financial Highlights
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
($ in millions, except per unit amounts)
|
|
2015
|
|
2014
|
|
% Change
|
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Soda ash volume produced (millions of short tons)
|
|
0.679
|
|
|
0.660
|
|
|
2.9
|
%
|
|
|
2.663
|
|
|
2.544
|
|
|
4.7
|
%
|
Soda ash volume sold (millions of short tons)
|
|
0.704
|
|
|
0.686
|
|
|
2.6
|
%
|
|
|
2.655
|
|
|
2.548
|
|
|
4.2
|
%
|
Net sales
|
|
$
|
126.4
|
|
|
$
|
126.0
|
|
|
0.3
|
%
|
|
|
$
|
486.4
|
|
|
$
|
465.0
|
|
|
4.6
|
%
|
Net income
|
|
$
|
28.3
|
|
|
$
|
27.6
|
|
|
2.5
|
%
|
|
|
$
|
106.2
|
|
|
$
|
91.9
|
|
|
15.6
|
%
|
Net income attributable to CINR
|
|
$
|
13.9
|
|
|
$
|
13.5
|
|
|
3.0
|
%
|
|
|
$
|
51.5
|
|
|
$
|
44.5
|
|
|
15.7
|
%
|
Basic and Diluted Earnings per Unit
|
|
$
|
0.69
|
|
|
$
|
0.68
|
|
|
1.5
|
%
|
|
|
$
|
2.58
|
|
|
$
|
2.23
|
|
|
15.7
|
%
|
Adjusted EBITDA (1)
|
|
$
|
35.9
|
|
|
$
|
34.8
|
|
|
3.2
|
%
|
|
|
$
|
133.9
|
|
|
$
|
120.5
|
|
|
11.1
|
%
|
Adjusted EBITDA attributable to CINR(1)
|
|
$
|
17.9
|
|
|
$
|
17.3
|
|
|
3.5
|
%
|
|
|
$
|
66.2
|
|
|
$
|
59.7
|
|
|
10.9
|
%
|
Distributable cash flow attributable to CINR(1)
|
|
$
|
16.7
|
|
|
$
|
14.3
|
|
|
16.8
|
%
|
|
|
$
|
55.7
|
|
|
$
|
53.1
|
|
|
4.9
|
%
|
Distribution coverage ratio (1)
|
|
1.50
|
|
|
1.35
|
|
|
11.1
|
%
|
|
|
1.27
|
|
|
1.29
|
|
|
(1.6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See non-GAAP reconciliations
|
|
Kirk Milling, CEO, commented, “I am pleased our 2015 final results are
in line with our outlook and targets. Our expansion investments and
operational excellence enabled us to achieve the highest annual
production and sales volume in our history and those led to an 11%
increase in Adjusted EBITDA. During the quarter, production and sales
volume gains were offset in part by lower international pricing, which
led to a more modest increase to Adjusted EBITDA of 3.2%.
“As we look forward into 2016, we anticipate further volume increases to
be realized from our debottlenecking investments; however, we believe
these gains may be offset by softer international pricing and higher
freight and royalty costs. In January, we began to see reports of prices
rising in China’s domestic market. We are optimistic this is an
indicator we will soon begin to see prices rebounding throughout the
other Asian export markets as the year progresses in 2016.”
FOURTH QUARTER AND YEAR ENDED 2015 FINANCIAL AND OPERATING RESULTS
Three Months Ended December 31, 2015 compared to Three Months
Ended December 31, 2014
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 Increase/ (Decrease)
|
($ in millions, except per ton data)
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales ($ in millions):
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
48.5
|
|
|
|
$
|
45.0
|
|
|
|
|
7.8
|
%
|
International
|
|
$
|
77.9
|
|
|
|
$
|
81.0
|
|
|
|
|
(3.8
|
)%
|
Total net sales
|
|
$
|
126.4
|
|
|
|
$
|
126.0
|
|
|
|
|
0.3
|
%
|
Sales volumes (thousands of short tons):
|
|
|
|
|
|
|
|
|
|
|
Domestic (thousands of short tons)
|
|
214.3
|
|
|
|
189.7
|
|
|
|
|
13.0
|
%
|
International (thousands of short tons)
|
|
490.0
|
|
|
|
495.9
|
|
|
|
|
(1.2
|
)%
|
Total soda ash volume sold (thousands of short tons)
|
|
704.3
|
|
|
|
685.6
|
|
|
|
|
2.7
|
%
|
Average sales price (per short ton):
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
226.20
|
|
|
|
$
|
237.23
|
|
|
|
|
(4.6
|
)%
|
International
|
|
$
|
159.09
|
|
|
|
$
|
163.38
|
|
|
|
|
(2.6
|
)%
|
Average
|
|
$
|
179.51
|
|
|
|
$
|
183.82
|
|
|
|
|
(2.3
|
)%
|
Percent of net sales:
|
|
|
|
|
|
|
|
|
|
|
Domestic sales
|
|
38.4
|
%
|
|
|
35.7
|
%
|
|
|
|
|
International sales
|
|
61.6
|
%
|
|
|
64.3
|
%
|
|
|
|
|
Total percent of net sales
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales. Net sales increased by 0.3% to $126.4 million for the
three months ended December 31, 2015 compared to $126.0 million for the
three months ended December 31, 2014, driven by an increase in volumes
sold of 2.7%, partially offset by a decrease in average sales price of
2.3%.
Cost of products sold. Cost of products sold, including
depreciation, depletion and amortization expense, increased by 0.8% to
$91.7 million for the three months ended December 31, 2015 from $91.0
million for the three months ended December 31, 2014, due primarily to
an increase in fringe benefits and royalty expenses, as well as an
increase in sales volumes. These increases were moderately offset by a
decrease in energy costs as a result of lower natural gas prices.
Year Ended December 31, 2015 compared to Year Ended December 31,
2014
The following table sets forth a summary of net sales, sales volumes and
average sales price, and the percentage change between the periods:
|
|
Years Ended December 31,
|
|
|
|
Percent Increase/ (Decrease)
|
($ in millions, except per ton data)
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales ($ in millions):
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
194.0
|
|
|
|
$
|
194.8
|
|
|
|
|
(0.4
|
)%
|
International
|
|
$
|
292.4
|
|
|
|
$
|
270.2
|
|
|
|
|
8.2
|
%
|
Total net sales
|
|
$
|
486.4
|
|
|
|
$
|
465.0
|
|
|
|
|
4.6
|
%
|
Sales volumes (thousands of short tons):
|
|
|
|
|
|
|
|
|
|
|
|
Domestic (thousands of short tons)
|
|
851.9
|
|
|
|
817.8
|
|
|
|
|
4.2
|
%
|
International (thousands of short tons)
|
|
1,803.5
|
|
|
|
1,730.5
|
|
|
|
|
4.2
|
%
|
Total soda ash volume sold (thousands of short tons)
|
|
2,655.4
|
|
|
|
2,548.3
|
|
|
|
|
4.2
|
%
|
Average sales price (per short ton):
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
227.78
|
|
|
|
$
|
238.20
|
|
|
|
|
(4.4
|
)%
|
International
|
|
$
|
162.11
|
|
|
|
$
|
156.16
|
|
|
|
|
3.8
|
%
|
Average
|
|
$
|
183.18
|
|
|
|
$
|
182.49
|
|
|
|
|
0.4
|
%
|
Percent of net sales:
|
|
|
|
|
|
|
|
|
|
|
|
Domestic sales
|
|
39.9
|
%
|
|
|
41.9
|
%
|
|
|
|
|
International sales
|
|
60.1
|
%
|
|
|
58.1
|
%
|
|
|
|
|
Total percent of net sales
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales. Net sales increased by 4.6% to $486.4 million for the
year ended December 31, 2015 from $465.0 million for the year ended
December 31, 2014, driven by increases in both international average
sales price of 3.8% and soda ash volumes sold of 4.2%. These positive
results were partially offset by a decrease in domestic average sales
price of 4.4% during the year 2015 compared to 2014, primarily driven by
a change in one of our large customer contracts taking delivery of
product at our plant. Generally, we sell soda ash on a delivered basis,
inclusive of freight, which is included both in net sales and cost of
products sold.
Cost of products sold. Cost of products sold, including
depreciation and amortization expense, increased by 2.4% to $356.1
million for the year ended December 31, 2015 from $347.7 million for the
year ended December 31, 2014, due primarily to an increase in pension
costs, as well as an increase in sales volumes. These increases were
partly offset by a decrease in energy costs as a result of lower natural
gas prices.
CAPEX AND ORE TO ASH RATIO
The following table below summarizes our capital expenditures, on an
accrual basis, and ore to ash ratio:
($ in millions)
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
|
|
$
|
2.3
|
|
|
$
|
5.9
|
|
|
$
|
16.1
|
|
|
$
|
10.4
|
Expansion
|
|
5.5
|
|
|
8.4
|
|
|
18.0
|
|
|
20.0
|
Total
|
|
$
|
7.8
|
|
|
$
|
14.3
|
|
|
$
|
34.1
|
|
|
$
|
30.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
Ore to ash ratio (1)
|
|
1.55: 1.0
|
|
|
1.53: 1.0
|
|
|
1.52: 1.0
|
|
|
1.52: 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.
|
|
|
|
|
FINANCIAL POSITION AND LIQUIDITY
As of December 31, 2015 and 2014, we had cash and cash equivalents of
$20.4 million and $31.0 million, respectively. In addition, we have $90
million of remaining capacity under our revolving credit facilities. As
of December 31, 2015 and 2014, our leverage and fixed charge coverage
ratios, as calculated in Ciner Wyoming Credit Facility, were 0.94 and
1.21, respectively.
CASH FLOWS AND QUARTERLY CASH DISTRIBUTION
Cash Flows
Cash provided by operating activities was $150.2 million during the year
ended December 31, 2015 compared to $106.1 million of cash generated
during the year ended December 31, 2014, primarily driven by an increase
of 15.6% in net income during 2015, and $17.8 million of cash flows
provided from working capital during the year ended December 31, 2015
compared to $9.8 million of cash flows used in working capital during
the prior year.
Cash provided by operating activities during the year ended December 31,
2015 were partially offset by cash used in investing activities due to
capital expenditures of $35.7 million and cash used in financing
activities during the year of $125.1 million, the majority was due to
distributions paid of $90.1 million and net repayments on revolving
credit facility of $35 million.
Quarterly Distribution
On January 14, 2016, the Partnership declared its fourth quarter 2015
quarterly distribution of $0.5575 per unit. This represents an increase
of 1.18% over the last quarterly distribution and an increase of 4.9%
over the distribution declared for the fourth quarter of 2014. The
quarterly cash distribution is payable on February 12, 2016 to
unitholders of record on January 29, 2016.
RELATED COMMUNICATIONS
Ciner Resources LP will host a conference call tomorrow, February 11,
2016 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 32355088. 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 32355088, 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.cinerresources.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 LP
("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"),
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, 2014, 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. 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
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Years Ended December 31,
|
(In millions, except per unit data)
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
126.4
|
|
|
$
|
126.0
|
|
|
|
$
|
486.4
|
|
|
$
|
465.0
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
85.1
|
|
|
85.1
|
|
|
|
332.4
|
|
|
325.3
|
|
Depreciation, depletion and amortization expense
|
|
|
6.6
|
|
|
5.9
|
|
|
|
23.7
|
|
|
22.4
|
|
Selling, general and administrative expenses
|
|
|
5.9
|
|
|
6.0
|
|
|
|
20.0
|
|
|
20.3
|
|
Loss on disposal of assets, net
|
|
|
0.2
|
|
|
—
|
|
|
|
0.2
|
|
|
1.0
|
|
Total operating costs and expenses
|
|
|
97.8
|
|
|
97.0
|
|
|
|
376.3
|
|
|
369.0
|
|
Operating income
|
|
|
28.6
|
|
|
29.0
|
|
|
|
110.1
|
|
|
96.0
|
|
Other income/(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(1.0
|
)
|
|
(1.3
|
)
|
|
|
(4.0
|
)
|
|
(5.2
|
)
|
Other, net
|
|
|
0.7
|
|
|
(0.1
|
)
|
|
|
0.1
|
|
|
1.1
|
|
Total other income/(expense), net
|
|
|
(0.3
|
)
|
|
(1.4
|
)
|
|
|
(3.9
|
)
|
|
(4.1
|
)
|
Net income
|
|
|
$
|
28.3
|
|
|
$
|
27.6
|
|
|
|
$
|
106.2
|
|
|
$
|
91.9
|
|
Net income attributable to non-controlling interest
|
|
|
14.4
|
|
|
14.1
|
|
|
|
54.7
|
|
|
47.4
|
|
Net income attributable to Ciner Resources LP
|
|
|
$
|
13.9
|
|
|
$
|
13.5
|
|
|
|
$
|
51.5
|
|
|
$
|
44.5
|
|
Other comprehensive (loss)/income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) on derivative financial instruments
|
|
|
0.5
|
|
|
(0.3
|
)
|
|
|
(3.4
|
)
|
|
(0.2
|
)
|
Comprehensive income
|
|
|
28.8
|
|
|
27.3
|
|
|
|
102.8
|
|
|
91.7
|
|
Comprehensive income attributable to non-controlling interest
|
|
|
14.6
|
|
|
13.9
|
|
|
|
53.0
|
|
|
47.3
|
|
Comprehensive income attributable to Ciner Resources LP
|
|
|
$
|
14.2
|
|
|
$
|
13.4
|
|
|
|
$
|
49.8
|
|
|
$
|
44.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per limited partner unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common - Public and Ciner Holdings (basic and diluted)
|
|
|
$
|
0.69
|
|
|
$
|
0.68
|
|
|
|
$
|
2.58
|
|
|
$
|
2.23
|
|
Subordinated - Ciner Holdings (basic and diluted)
|
|
|
$
|
0.69
|
|
|
$
|
0.68
|
|
|
|
$
|
2.58
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding (basic and diluted)
|
|
|
9.8
|
|
|
9.8
|
|
|
|
9.8
|
|
|
9.8
|
|
Weighted average subordinated units outstanding (basic and diluted)
|
|
|
9.8
|
|
|
9.8
|
|
|
|
9.8
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CINER RESOURCES LP
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
As of
|
($ in millions)
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
20.4
|
|
|
|
$
|
31.0
|
|
Accounts receivable - net
|
|
|
33.8
|
|
|
|
35.5
|
|
Accounts receivable - ANSAC
|
|
|
52.2
|
|
|
|
70.4
|
|
Due from affiliates - net
|
|
|
11.9
|
|
|
|
19.6
|
|
Inventory
|
|
|
26.4
|
|
|
|
22.5
|
|
Other current assets
|
|
|
2.2
|
|
|
|
1.8
|
|
Total current assets
|
|
|
146.9
|
|
|
|
180.8
|
|
Property, plant and equipment - net
|
|
|
255.2
|
|
|
|
245.0
|
|
Other non-current assets
|
|
|
21.1
|
|
|
|
21.6
|
|
Total assets
|
|
|
$
|
423.2
|
|
|
|
$
|
447.4
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
13.4
|
|
|
|
$
|
13.1
|
|
Due to affiliates
|
|
|
4.6
|
|
|
|
7.1
|
|
Accrued expenses
|
|
|
25.2
|
|
|
|
29.5
|
|
Total current liabilities
|
|
|
43.2
|
|
|
|
49.7
|
|
Long-term debt
|
|
|
110.0
|
|
|
|
145.0
|
|
Other non-current liabilities
|
|
|
6.8
|
|
|
|
4.2
|
|
Total liabilities
|
|
|
160.0
|
|
|
|
198.9
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common unitholders - Public and Ciner Holdings (9.8 units issued and
outstanding at December 31, 2015 and 2014, respectively)
|
|
|
110.8
|
|
|
|
106.3
|
|
Subordinated unitholders - Ciner Holdings (9.8 units issued and
outstanding at December 31, 2015 and 2014, respectively)
|
|
|
43.3
|
|
|
|
37.9
|
|
General partner unitholders - Ciner Resource Partners LLC (0.4 units
issued and outstanding at December 31, 2015 and 2014, respectively)
|
|
|
4.0
|
|
|
|
3.8
|
|
Accumulated other comprehensive loss
|
|
|
(2.1
|
)
|
|
|
(0.4
|
)
|
Partners' capital attributable to Ciner Resources LP
|
|
|
156.0
|
|
|
|
147.6
|
|
Non-controlling interests
|
|
|
107.2
|
|
|
|
100.9
|
|
Total equity
|
|
|
263.2
|
|
|
|
248.5
|
|
Total liabilities and partners' equity
|
|
|
$
|
423.2
|
|
|
|
$
|
447.4
|
|
|
|
|
|
|
|
|
|
|
|
|
CINER RESOURCES LP
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
|
|
Years Ended December 31,
|
(In millions)
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
106.2
|
|
|
$
|
91.9
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense
|
|
|
24.1
|
|
|
22.8
|
|
Loss on disposal of assets, net
|
|
|
0.2
|
|
|
1.0
|
|
Equity-based compensation expense
|
|
|
1.1
|
|
|
0.4
|
|
Other non-cash items
|
|
|
0.8
|
|
|
(0.2
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
(Increase)/decrease in:
|
|
|
|
|
|
|
|
Accounts receivable - net
|
|
|
1.7
|
|
|
(1.1
|
)
|
Accounts receivable - ANSAC
|
|
|
18.2
|
|
|
(12.3
|
)
|
Inventory
|
|
|
(3.7
|
)
|
|
(1.5
|
)
|
Other current and other non-current assets
|
|
|
(0.9
|
)
|
|
—
|
|
Due from affiliates - net
|
|
|
7.7
|
|
|
0.8
|
|
Increase/(decrease) in:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
1.8
|
|
|
(3.5
|
)
|
Due to affiliates
|
|
|
(1.1
|
)
|
|
4.8
|
|
Accrued expenses and other liabilities
|
|
|
(5.9
|
)
|
|
3.0
|
|
Net cash provided by operating activities
|
|
|
150.2
|
|
|
106.1
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(35.7
|
)
|
|
(27.2
|
)
|
Net cash used in investing activities
|
|
|
(35.7
|
)
|
|
(27.2
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Borrowings on revolving credit facility
|
|
|
5.0
|
|
|
—
|
|
Repayments on revolving credit facility
|
|
|
(40.0
|
)
|
|
(10.0
|
)
|
Distributions to common unitholders
|
|
|
(21.2
|
)
|
|
(20.5
|
)
|
Distributions to subordinated unitholders
|
|
|
(21.2
|
)
|
|
(20.5
|
)
|
Distributions to general partner
|
|
|
(0.9
|
)
|
|
(0.8
|
)
|
Distributions to non-controlling interest
|
|
|
(46.8
|
)
|
|
(43.0
|
)
|
Net cash used in financing activities
|
|
|
(125.1
|
)
|
|
(94.8
|
)
|
Net (decrease)/increase in cash and cash equivalents
|
|
|
(10.6
|
)
|
|
(15.9
|
)
|
Cash and cash equivalents at beginning of year
|
|
|
31.0
|
|
|
46.9
|
|
Cash and cash equivalents at end of year
|
|
|
$
|
20.4
|
|
|
$
|
31.0
|
|
|
|
|
|
|
|
|
|
|
|
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 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. Distributable cash flow will not
reflect changes in working capital balances. We define distribution
coverage ratio as the ratio of distributable cash flow per outstanding
unit (as of the end of the period) to cash distributions payable per
outstanding unit with respect to such period.
Adjusted EBITDA, distributable cash flow and distribution coverage ratio
are non-GAAP supplemental financial measures that management and
external users of our consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies, may use to
assess:
-
our operating performance as compared to other publicly traded
partnerships in our industry, without regard to historical cost basis
or, in the case of Adjusted EBITDA, financing methods;
-
the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;
-
our ability to incur and service debt and fund capital expenditures;
and
-
the viability of capital expenditure projects and the returns on
investment of various investment opportunities.
We believe that the presentation of Adjusted EBITDA, distributable cash
flow and distribution coverage ratio provide useful information to
investors in assessing our financial condition and results of
operations. The GAAP measures most directly comparable to Adjusted
EBITDA and distributable cash flow are net income and net cash provided
by operating activities. Our non-GAAP financial measures of Adjusted
EBITDA, distributable cash flow and distribution coverage ratio should
not be considered as an alternatives to GAAP net income, operating
income, net cash provided by operating activities, or any other measure
of financial performance or liquidity presented in accordance with GAAP.
Adjusted EBITDA and distributable cash flow have important limitations
as analytical tools because they exclude some, but not all items that
affect net income and net cash provided by operating activities.
Investors should not consider Adjusted EBITDA, distributable cash flow
and distribution coverage ratio in isolation or as a substitute for
analysis of our results as reported under GAAP. Because Adjusted EBITDA,
distributable cash flow and distribution coverage ratio may be defined
differently by other companies, including those in our industry, our
definition of Adjusted EBITDA, distributable cash flow and distribution
coverage ratio may not be comparable to similarly titled measures of
other companies, thereby diminishing its utility.
The table below presents a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA and distributable cash flow to the GAAP
financial measures of net income and net cash provided by operating
activities:
|
Three Months Ended December 31,
|
|
Years Ended December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
($ in millions, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
28.3
|
|
|
27.6
|
|
|
106.2
|
|
|
91.9
|
|
Add backs:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense
|
6.6
|
|
|
5.9
|
|
|
23.7
|
|
|
22.4
|
|
Interest expense
|
1.0
|
|
|
1.3
|
|
|
4.0
|
|
|
5.2
|
|
Loss on disposal of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
Adjusted EBITDA
|
$
|
35.9
|
|
|
$
|
34.8
|
|
|
$
|
133.9
|
|
|
$
|
120.5
|
|
Less: Adjusted EBITDA attributable to non-controlling interest
|
18.0
|
|
|
17.5
|
|
|
67.7
|
|
|
60.8
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
$
|
17.9
|
|
|
$
|
17.3
|
|
|
$
|
66.2
|
|
|
$
|
59.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of distributable cash flow to Adjusted EBITDA
attributable to Ciner Resources LP:
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
$
|
17.9
|
|
|
$
|
17.3
|
|
|
$
|
66.2
|
|
|
$
|
59.7
|
|
Less: Cash interest expense, net attributable to CINR
|
0.5
|
|
|
0.3
|
|
|
2.1
|
|
|
2.2
|
|
Maintenance capital expenditures attributable to CINR (1)
|
0.7
|
|
|
2.7
|
|
|
8.4
|
|
|
4.4
|
|
Distributable cash flow attributable to Ciner Resources LP
|
$
|
16.7
|
|
|
$
|
14.3
|
|
|
$
|
55.7
|
|
|
$
|
53.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to unitholders and general partner
|
$
|
11.1
|
|
|
$
|
10.6
|
|
|
$
|
43.8
|
|
|
$
|
41.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution coverage ratio
|
1.50
|
|
|
1.35
|
|
|
1.27
|
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
$
|
47.2
|
|
|
$
|
19.4
|
|
|
$
|
150.2
|
|
|
$
|
106.1
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term loan financing
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
Equity-based compensation expense
|
(0.6
|
)
|
|
(0.1
|
)
|
|
(1.1
|
)
|
|
(0.4
|
)
|
Net change in working capital
|
(11.4
|
)
|
|
14.1
|
|
|
(17.8
|
)
|
|
9.8
|
|
Interest expense
|
1.0
|
|
|
1.3
|
|
|
4.0
|
|
|
5.2
|
|
Other non-cash items - net
|
$
|
(0.2
|
)
|
|
$
|
0.2
|
|
|
$
|
(1.0
|
)
|
|
$
|
0.2
|
|
Adjusted EBITDA
|
$
|
35.9
|
|
|
$
|
34.8
|
|
|
$
|
133.9
|
|
|
$
|
120.5
|
|
Less: Adjusted EBITDA attributable to non-controlling interest
|
18.0
|
|
|
17.5
|
|
|
67.7
|
|
|
60.8
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
$
|
17.9
|
|
|
$
|
17.3
|
|
|
$
|
66.2
|
|
|
$
|
59.7
|
|
Less: Cash interest expense, net attributable to CINR
|
0.5
|
|
|
0.3
|
|
|
2.1
|
|
|
2.2
|
|
Maintenance capital expenditures attributable to CINR (1)
|
0.7
|
|
|
2.7
|
|
|
8.4
|
|
|
4.4
|
|
Distributable cash flow attributable to Ciner Resources LP
|
$
|
16.7
|
|
|
$
|
14.3
|
|
|
$
|
55.7
|
|
|
$
|
53.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
In those instances, the Partnership adjusts designated reserves (as
provided in the partnership agreement) to take account of the timing
difference. Accordingly, expansion-related capital expenditures have
been excluded from the presentation of cash available for
distribution.
|
The following table presents a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA to GAAP financial measure of net income for
the periods presented:
|
|
Cumulative Four Quarters ended
Q4- 2015
|
|
|
Q4-2015
|
|
|
Q3-2015
|
|
|
Q2-2015
|
|
|
Q1-2015
|
|
|
Q4-2014
|
($ in millions, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
106.2
|
|
|
$
|
28.3
|
|
|
$
|
26.9
|
|
|
$
|
24.5
|
|
|
$
|
26.5
|
|
|
$
|
27.6
|
Add backs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization expense
|
|
23.7
|
|
|
6.6
|
|
|
5.7
|
|
|
5.8
|
|
|
5.6
|
|
|
5.9
|
Interest expense
|
|
4.0
|
|
|
1.0
|
|
|
1.0
|
|
|
1.1
|
|
|
0.9
|
|
|
1.3
|
Adjusted EBITDA
|
|
$
|
133.9
|
|
|
$
|
35.9
|
|
|
$
|
33.6
|
|
|
$
|
31.4
|
|
|
$
|
33.0
|
|
|
$
|
34.8
|
Less: Adjusted EBITDA attributable to non-controlling interest
|
|
67.7
|
|
|
18.0
|
|
|
16.9
|
|
|
16.0
|
|
|
16.7
|
|
|
17.5
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
$
|
66.2
|
|
|
$
|
17.9
|
|
|
$
|
16.7
|
|
|
$
|
15.4
|
|
|
$
|
16.3
|
|
|
$
|
17.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of distributable cash flow to Adjusted EBITDA
attributable to Ciner Resources LP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to Ciner Resources LP
|
|
$
|
66.2
|
|
|
$
|
17.9
|
|
|
$
|
16.7
|
|
|
$
|
15.4
|
|
|
$
|
16.3
|
|
|
$
|
17.3
|
Less: Cash interest expense, net attributable to CINR
|
|
$
|
2.1
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
$
|
0.6
|
|
|
$
|
0.5
|
|
|
$
|
0.3
|
Maintenance capital expenditures attributable to CINR(1)
|
|
$
|
8.4
|
|
|
$
|
0.7
|
|
|
$
|
2.8
|
|
|
$
|
2.7
|
|
|
$
|
2.2
|
|
|
$
|
2.7
|
Distributable cash flow attributable to Ciner Resources LP
|
|
$
|
55.7
|
|
|
$
|
16.7
|
|
|
$
|
13.4
|
|
|
$
|
12.1
|
|
|
$
|
13.6
|
|
|
$
|
14.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distribution declared per unit
|
|
$
|
2.1910
|
|
|
$
|
0.5575
|
|
|
$
|
0.5510
|
|
|
$
|
0.5445
|
|
|
$
|
0.5380
|
|
|
$
|
0.5315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to unitholders and general partner
|
|
$
|
43.8
|
|
|
$
|
11.1
|
|
|
$
|
11.0
|
|
|
$
|
10.9
|
|
|
$
|
10.7
|
|
|
$
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution coverage ratio
|
|
1.27
|
|
|
1.50
|
|
|
1.22
|
|
|
1.11
|
|
|
1.27
|
|
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
In those instances, the Partnership adjusts designated reserves (as
provided in the partnership agreement) to take account of the timing
difference. Accordingly, expansion-related capital expenditures have
been excluded from the presentation of cash available for
distribution.
|
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