CVR Partners, LP (“CVR Partners” or the “Partnership”) (NYSE: UAN),
a manufacturer of ammonia and urea ammonium nitrate (“UAN”)
solution fertilizer products, today announced net income of $7
million, or 66 cents per common unit, on net sales of $138 million
for the second quarter 2021, compared to a net loss of $42 million,
or $3.68 per common unit, inclusive of a $41 million pre-tax
charge related to goodwill impairment, on net sales of $105 million
for the second quarter 2020. EBITDA was $51 million for the second
quarter of 2021, compared to EBITDA loss of $2 million for the
second quarter of 2020.
“CVR Partners experienced a solid 2021 second
quarter, led by a combined ammonia utilization rate of 98 percent,”
said Mark Pytosh, Chief Executive Officer of CVR Partners’ general
partner. “Further contributing to the quarter were ideal spring
planting conditions and strong shipments of nitrogen fertilizer at
both facilities.
“So far in the third quarter, farm economics
remain robust with grain prices nearing a 10-year high and demand
for all crop inputs, including nitrogen fertilizer, remaining
strong,” Pytosh said. “Nitrogen fertilizer pricing also continues
to remain firm due to supply constraints resulting from Winter
Storm Uri-related production outages and the planned major plant
turnarounds scheduled across the industry for the second half of
the year.
“In addition, we are pleased to announce a
second quarter 2021 cash distribution of $1.72 per common unit,
which is the first distribution paid to unitholders since the
fourth quarter of 2019.”
Consolidated Operations
For the second quarter of 2021, CVR Partners’
average realized gate prices for UAN showed an improvement over the
prior year, up 44 percent to $237 per ton, and ammonia was up 21
percent over the prior year to $403 per ton. Average realized
gate prices for UAN and ammonia were $165 per ton and $332 per ton,
respectively, for the second quarter 2020.
CVR Partners’ fertilizer facilities produced a
combined 217,000 tons of ammonia during the second quarter of 2021,
of which 70,000 net tons were available for sale while the rest was
upgraded to other fertilizer products, including 334,000 tons of
UAN. In the second quarter of 2020, the fertilizer facilities
produced 216,000 tons of ammonia, of which 79,000 net tons were
available for sale while the remainder was upgraded to other
fertilizer products, including 321,000 tons of UAN.
Capital Structure
On June 23, 2021, CVR Partners and its
subsidiary, CVR Nitrogen Finance Corporation (“Finance Co.” and,
together with CVR Partners, the “Issuers”), completed a private
offering of $550 million aggregate principal amount of 6.125%
Senior Secured Notes due 2028 (the “2028 Notes”) for which net
proceeds, plus cash on hand, were used to redeem a portion of the
9.25% Senior Secured Notes due June 2023 (the “2023 Notes”). The
2028 Notes mature on June 15, 2028, unless earlier redeemed or
repurchased by the Issuers. The 2028 Notes are jointly and
severally guaranteed on a senior secured basis by all the existing
domestic subsidiaries of CVR Partners, excluding Finance Co.
Collectively, the issuance of the 2028 Notes and partial redemption
of the 2023 Notes represents a significant and favorable change in
the Partnership’s cash flow and liquidity position, with an annual
savings of approximately $17 million in its future interest
expense.
On May 6, 2020, the board of directors of
the Partnership’s general partner (the “Board”), on behalf of the
Partnership, authorized a unit repurchase program (the “Unit
Repurchase Program”). The Unit Repurchase Program enables the
Partnership to repurchase up to $10 million of the
Partnership’s common units. On February 22, 2021, the Board
authorized an additional $10 million for the Unit Repurchase
Program. During the three months ended June 30, 2021, the
Partnership did not repurchase any common units. During the six
months ended June 30, 2021, the Partnership repurchased 24,378
common units on the open market in accordance with a repurchase
agreement under Rules 10b5-1 and 10b-18 of the Securities Exchange
Act of 1934, as amended, at a cost of $0.5 million, inclusive of
transaction costs, or an average price of $21.70 per common unit.
During the three and six months ended June 30, 2020, as adjusted to
reflect the impact of the 1-for-10 reverse unit split of the
Partnership’s common units that was effective as of November 23,
2020, the Partnership repurchased 89,022 common units at a cost of
$1.0 million, inclusive of transaction costs, or an average
price of $10.72 per common unit. As of June 30, 2021, the
Partnership had $12.4 million in authority remaining under the Unit
Repurchase Program. This Unit Repurchase Program does not obligate
the Partnership to acquire any common units and may be cancelled or
terminated by the Board at any time.
Distributions
CVR Partners also announced that, on August 2,
2021, the Board of Directors of its general partner declared a
second quarter 2021 cash distribution of $1.72 per common unit,
which will be paid on August 23, 2021, to common unitholders of
record as of August 13, 2021.
CVR Partners is a variable distribution master
limited partnership. As a result, its 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, use of cash and cash reserves deemed necessary or
appropriate by the Board.
Second Quarter 2021 Earnings Conference
Call
CVR Partners previously announced that it will
host its second quarter 2021 Earnings Conference Call on Tuesday,
August 3, 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 second quarter 2021 Earnings Conference Call will be webcast
live and can be accessed on the Investor Relations section of CVR
Partners’ website at www.CVRPartners.com. For investors or analysts
who want to participate during the call, the dial-in number is
(877) 407-8029. The webcast will be archived and available for 14
days at https://edge.media-server.com/mmc/p/s9bw32pq. A repeat of
the call also can be accessed for 14 days by dialing (877)
660-6853, conference ID 13721549.
Qualified NoticeThis 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 StatementsThis
news release contains forward-looking statements. Statements
concerning current estimates, expectations and projections about
future results, performance, prospects, opportunities, plans,
actions and events and other statements, concerns, or matters that
are not historical facts are “forward-looking statements,” as that
term is defined under the federal securities laws. These
forward-looking statements include, but are not limited to,
statements regarding future: ammonia utilization rates; planting
conditions; shipments of nitrogen fertilizer; farm economics
including improvement thereof; nitrogen fertilizer demand,
including the strength thereof; the impact of Winter Storm Uri
outages and plant turnarounds on nitrogen fertilizer supply and
pricing; distributions, including the timing, payment and amount
(if any) thereof; realized gate prices for ammonia and UAN; ammonia
production levels including volumes upgraded to other fertilizer
products including UAN; impact of the issuance of the 2028 Notes
and partial redemption of the 2023 Notes on liquidity and interest
expense; purchases under the Unit Repurchase Program (if any),
including the cost thereof; continued safe and reliable operations;
operating performance, finished product pricing, costs and capital
expenditures including management thereof, cash flow, use of cash
and reserves; and other matters. You can generally identify
forward-looking statements by our use of forward-looking
terminology such as “outlook,” “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “explore,” “evaluate,” “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. Investors are cautioned that
various factors may affect these forward-looking statements,
including (among others) the health and economic effects of the
COVID-19 pandemic and any variant thereof, the rate of any economic
improvements, impacts of planting season on our business, general
economic and business conditions, and other risks. For additional
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 Securities and Exchange
Commission (“SEC”) filings. These and other 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 news release are made only as of the date hereof.
CVR Partners disclaims any intention or obligation to update
publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except to
the extent required by law.
About CVR Partners,
LPHeadquartered in Sugar Land, Texas, CVR Partners 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.
Investors and others should note that CVR
Partners may announce material information using SEC filings, press
releases, public conference calls, webcasts, and the Investor
Relations page of its website. CVR Partners may use these channels
to distribute material information about the Partnership and to
communicate important information about the Partnership, corporate
initiatives and other matters. Information that CVR Partners posts
on its website could be deemed material; therefore, CVR Partners
encourages investors, the media, its customers, business partners
and others interested in the Partnership to review the information
posted on its website.
For further information, please contact:
Investor Relations:Richard
RobertsCVR Partners, LP (281)
207-3205InvestorRelations@CVRPartners.com
Media Relations:Brandee
StephensCVR Partners, LP(281)
207-3516MediaRelations@CVRPartners.com
Non-GAAP Measures
Our management uses certain non-GAAP performance
measures, and reconciliations to those measures, to evaluate
current and past performance and prospects for the future to
supplement our GAAP financial information presented in accordance
with U.S. GAAP. These non-GAAP financial measures are important
factors in assessing our operating results and profitability and
include the performance and liquidity measures defined below.
Beginning with the second quarter of 2021,
management began reporting Adjusted EBITDA, as defined below. We
believe the presentation of this non-GAAP measure is meaningful to
compare our operating results between periods and peer companies.
All prior periods presented have been conformed to the definition
below. The following are non-GAAP measures we present for the
period ended June 30, 2021:
EBITDA - Net income (loss) before (i) interest
expense, net, (ii) income tax expense (benefit) and (iii)
depreciation and amortization expense.
Adjusted EBITDA - EBITDA adjusted for certain
significant non-cash items and items that management believes are
not attributable to or indicative of our on-going operations or
that may obscure our underlying results and trends.
Reconciliation of Net Cash Provided By Operating
Activities to EBITDA - Net cash provided by operating activities
reduced by (i) interest expense, net, (ii) income tax expense
(benefit), (iii) change in working capital, and (iv) other non-cash
adjustments.
Available Cash for Distribution - EBITDA for the
quarter excluding non-cash income or expense items (if any), for
which adjustment is deemed necessary or appropriate by the Board in
its sole discretion, less (i) reserves for maintenance capital
expenditures, debt service and other contractual obligations, and
(ii) reserves for future operating or capital needs (if any), in
each case, that the Board deems necessary or appropriate in its
sole discretion. Available cash for distribution may be increased
by the release of previously established cash reserves, if any, and
other excess cash, at the discretion of the Board.
We present these measures because we believe
they may help investors, analysts, lenders, and ratings agencies
analyze our results of operations and liquidity in conjunction with
our U.S. GAAP results, including, but not limited to, our operating
performance as compared to other publicly traded companies in the
fertilizer industry, without regard to historical cost basis or
financing methods, and our ability to incur and service debt and
fund capital expenditures. Non-GAAP measures have important
limitations as analytical tools because they exclude some, but not
all, items that affect net earnings and operating income. These
measures should not be considered substitutes for their most
directly comparable U.S. GAAP financial measures. Refer to the
“Non-GAAP Reconciliations” included herein for reconciliation of
these amounts. Due to rounding, numbers presented within this
section may not add or equal to numbers or totals presented
elsewhere within this document.
Factors Affecting Comparability of Our
Financial Results
Our historical results of operations for the
periods presented may not be comparable with prior periods or to
our results of operations in the future for the reason discussed
below.
Goodwill Impairment
As a result of lower expectations for market
conditions in the fertilizer industry during 2020, the market
performance of the Partnership’s common units, a qualitative
analysis, and additional risks associated with the business, the
Partnership performed an interim quantitative impairment assessment
of goodwill for the Coffeyville Facility reporting unit as of June
30, 2020. The results of the impairment test indicated the carrying
amount of this reporting unit exceeded the estimated fair value,
and a full, non-cash impairment charge of $41 million was
required.
CVR Partners, LP(all information
in this release is unaudited)
Financial and Operational Data
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands, except per
unit data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Consolidated Statement
of Operations Data |
|
|
|
|
|
|
|
Net sales (1) |
$ |
138,025 |
|
|
$ |
105,091 |
|
|
$ |
198,945 |
|
|
$ |
180,172 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
Cost of materials and other |
26,094 |
|
|
21,948 |
|
|
43,860 |
|
|
45,939 |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
53,291 |
|
|
40,008 |
|
|
90,366 |
|
|
75,131 |
|
Depreciation and amortization |
21,119 |
|
|
23,371 |
|
|
35,242 |
|
|
38,968 |
|
Cost of sales |
100,504 |
|
|
85,327 |
|
|
169,468 |
|
|
160,038 |
|
Selling, general and administrative expenses |
6,802 |
|
|
4,451 |
|
|
12,692 |
|
|
9,806 |
|
Loss on asset disposal |
405 |
|
|
94 |
|
|
477 |
|
|
81 |
|
Goodwill impairment |
— |
|
|
40,969 |
|
|
— |
|
|
40,969 |
|
Operating income (loss) |
30,314 |
|
|
(25,750 |
) |
|
16,308 |
|
|
(30,722 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
Interest expense, net |
(23,334 |
) |
|
(15,890 |
) |
|
(39,251 |
) |
|
(31,673 |
) |
Other income, net |
40 |
|
|
38 |
|
|
4,598 |
|
|
65 |
|
Income (loss) before income tax expense |
7,020 |
|
|
(41,602 |
) |
|
(18,345 |
) |
|
(62,330 |
) |
Income tax expense |
— |
|
|
10 |
|
|
19 |
|
|
17 |
|
Net income (loss) |
$ |
7,020 |
|
|
$ |
(41,612 |
) |
|
$ |
(18,364 |
) |
|
$ |
(62,347 |
) |
|
|
|
|
|
|
|
|
Basic and diluted earnings
(loss) per unit |
$ |
0.66 |
|
|
$ |
(3.68 |
) |
|
$ |
(1.72 |
) |
|
$ |
(5.51 |
) |
|
|
|
|
|
|
|
|
EBITDA* |
$ |
51,473 |
|
|
$ |
(2,341 |
) |
|
$ |
56,148 |
|
|
$ |
8,311 |
|
Adjusted EBITDA* |
51,473 |
|
|
38,628 |
|
|
56,148 |
|
|
49,280 |
|
Available Cash for
Distribution* |
18,411 |
|
|
— |
|
|
9,308 |
|
|
(5,918 |
) |
|
|
|
|
|
|
|
|
Weighted-average common units
outstanding - basic and diluted |
10,681 |
|
|
11,317 |
|
|
10,688 |
|
|
11,323 |
|
__________________
* See “Non-GAAP Reconciliations” section below for a
reconciliation of these amounts.
(1) Below are the
components of net sales:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Components of net
sales: |
|
|
|
|
|
|
|
Fertilizer sales |
$ |
126,502 |
|
|
$ |
95,594 |
|
|
$ |
178,855 |
|
|
$ |
160,287 |
|
Freight in revenue |
8,870 |
|
|
6,954 |
|
|
14,985 |
|
|
14,677 |
|
Other |
2,653 |
|
|
2,543 |
|
|
5,105 |
|
|
5,208 |
|
Total net sales |
$ |
138,025 |
|
|
$ |
105,091 |
|
|
$ |
198,945 |
|
|
$ |
180,172 |
|
Selected Balance Sheet Data
(in
thousands) |
June 30, 2021 |
|
December 31, 2020 |
Cash and cash equivalents |
$ |
42,819 |
|
|
$ |
30,559 |
|
Working capital |
64,767 |
|
|
41,873 |
|
Total assets |
1,019,160 |
|
|
1,032,880 |
|
Total debt, including current
portion |
640,474 |
|
|
636,182 |
|
Total liabilities |
723,812 |
|
|
718,639 |
|
Total partners’ capital |
295,348 |
|
|
314,241 |
|
Selected Cash Flow Data
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Net cash flow (used in)
provided by: |
|
|
|
|
|
|
|
Operating activities |
$ |
(2,572 |
) |
|
$ |
(20,929 |
) |
|
$ |
22,979 |
|
|
$ |
6,778 |
|
Investing activities |
(2,350 |
) |
|
(3,495 |
) |
|
(5,344 |
) |
|
(10,157 |
) |
Financing activities |
(4,820 |
) |
|
(1,033 |
) |
|
(5,375 |
) |
|
(1,058 |
) |
Net (decrease) increase in
cash and cash equivalents |
$ |
(9,742 |
) |
|
$ |
(25,457 |
) |
|
$ |
12,260 |
|
|
$ |
(4,437 |
) |
Capital Expenditures
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Maintenance capital expenditures |
$ |
2,855 |
|
|
$ |
2,220 |
|
|
$ |
4,939 |
|
|
$ |
6,358 |
|
Growth capital
expenditures |
876 |
|
|
288 |
|
|
1,917 |
|
|
1,742 |
|
Total capital expenditures |
$ |
3,731 |
|
|
$ |
2,508 |
|
|
$ |
6,856 |
|
|
$ |
8,100 |
|
Key Operating Data
Ammonia Utilization (1) |
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(capacity utilization) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Consolidated |
98 |
% |
|
100 |
% |
|
93 |
% |
|
96 |
% |
__________________
(1) |
|
Reflects our ammonia utilization rates on a consolidated basis.
Utilization is an important measure used by management to assess
operational output at each of the Partnership’s facilities.
Utilization is calculated as actual tons produced divided by
capacity. We present our utilization for the three and six months
ended June 30, 2021 and 2020 and take into account the impact of
our current turnaround cycles on any specific period. Additionally,
we present utilization solely on ammonia production rather than
each nitrogen product as it provides a comparative baseline against
industry peers and eliminates the disparity of plant configurations
for upgrade of ammonia into other nitrogen products. With our
efforts being primarily focused on ammonia upgrade capabilities,
this measure provides a meaningful view of how well we
operate. |
|
|
|
Sales and Production Data
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Consolidated sales (thousand
tons): |
|
|
|
|
|
|
|
Ammonia |
80 |
|
|
111 |
|
|
112 |
|
|
164 |
|
UAN |
370 |
|
|
337 |
|
|
609 |
|
|
621 |
|
|
|
|
|
|
|
|
|
Consolidated product pricing
at gate (dollars per ton) (1): |
|
|
|
|
|
|
|
Ammonia |
$ |
403 |
|
|
$ |
332 |
|
|
$ |
373 |
|
|
$ |
310 |
|
UAN |
237 |
|
|
165 |
|
|
206 |
|
|
166 |
|
|
|
|
|
|
|
|
|
Consolidated production volume
(thousand tons): |
|
|
|
|
|
|
|
Ammonia (gross produced) (2) |
217 |
|
|
216 |
|
|
404 |
|
|
417 |
|
Ammonia (net available for sale) (2) |
70 |
|
|
79 |
|
|
140 |
|
|
157 |
|
UAN |
334 |
|
|
321 |
|
|
606 |
|
|
638 |
|
|
|
|
|
|
|
|
|
Feedstock: |
|
|
|
|
|
|
|
Petroleum coke used in production (thousand tons) |
134 |
|
|
138 |
|
|
262 |
|
|
263 |
|
Petroleum coke used in production (dollars per ton) |
$ |
36.69 |
|
|
$ |
31.13 |
|
|
$ |
39.73 |
|
|
$ |
37.59 |
|
Natural gas used in production (thousands of MMBtu) (3) |
2,154 |
|
|
2,131 |
|
|
4,036 |
|
|
4,272 |
|
Natural gas used in production (dollars per MMBtu) (3) |
$ |
3.04 |
|
|
$ |
1.94 |
|
|
$ |
3.07 |
|
|
$ |
2.18 |
|
Natural gas in cost of materials and other (thousands of MMBtu)
(3) |
2,711 |
|
|
3,216 |
|
|
3,650 |
|
|
4,633 |
|
Natural gas in cost of materials and other (dollars per MMBtu)
(3) |
$ |
3.06 |
|
|
$ |
2.17 |
|
|
$ |
3.03 |
|
|
$ |
2.36 |
|
__________________
(1) |
|
Product pricing at gate represents 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. |
|
|
|
Key Market Indicators
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Ammonia - Southern plains (dollars per ton) |
$ |
569 |
|
|
$ |
261 |
|
|
$ |
503 |
|
|
$ |
266 |
|
Ammonia - Corn belt (dollars
per ton) |
622 |
|
|
346 |
|
|
560 |
|
|
355 |
|
UAN - Corn belt (dollars per
ton) |
341 |
|
|
183 |
|
|
299 |
|
|
176 |
|
|
|
|
|
|
|
|
|
Natural gas NYMEX (dollars per
MMBtu) |
$ |
2.98 |
|
|
$ |
1.75 |
|
|
$ |
2.85 |
|
|
$ |
1.81 |
|
Q3 2021 Outlook
The table below summarizes our outlook for
certain operational statistics and financial information for the
third quarter of 2021. See “Forward-Looking Statements” above.
|
Q3 2021 |
|
Low |
|
High |
Ammonia utilization rates (1) |
|
|
|
Consolidated |
95 |
% |
|
100 |
% |
Coffeyville Facility |
95 |
% |
|
100 |
% |
East Dubuque Facility |
95 |
% |
|
100 |
% |
|
|
|
|
Direct operating expenses (2) (in millions) |
$ |
38 |
|
|
$ |
43 |
|
|
|
|
|
|
|
|
|
Total capital expenditures (3) (in millions) |
$ |
9 |
|
|
$ |
12 |
|
__________________
(1) |
|
Ammonia utilization rates exclude the impact of turnarounds. |
(2) |
|
Direct operating expenses are shown exclusive of depreciation and
amortization, turnaround expenses, and impacts of inventory
adjustments. |
(3) |
|
Capital expenditures are disclosed on an accrual basis. |
|
|
|
Non-GAAP Reconciliations
Reconciliation of Net Income (Loss) to
EBITDA and Adjusted EBITDA
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income (loss) |
$ |
7,020 |
|
|
$ |
(41,612 |
) |
|
$ |
(18,364 |
) |
|
$ |
(62,347 |
) |
Interest expense, net |
23,334 |
|
|
15,890 |
|
|
39,251 |
|
|
31,673 |
|
Income tax expense |
— |
|
|
10 |
|
|
19 |
|
|
17 |
|
Depreciation and amortization |
21,119 |
|
|
23,371 |
|
|
35,242 |
|
|
38,968 |
|
EBITDA |
51,473 |
|
|
(2,341 |
) |
|
56,148 |
|
|
8,311 |
|
Adjustments: |
|
|
|
|
|
|
|
Goodwill impairment |
— |
|
|
40,969 |
|
|
— |
|
|
40,969 |
|
Adjusted EBITDA |
$ |
51,473 |
|
|
$ |
38,628 |
|
|
$ |
56,148 |
|
|
$ |
49,280 |
|
Reconciliation of Net Cash Provided By Operating
Activities to EBITDA and Adjusted EBITDA
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Net cash provided by operating activities |
$ |
(2,572 |
) |
|
$ |
(20,929 |
) |
|
$ |
22,979 |
|
|
$ |
6,778 |
|
Non-cash items: |
|
|
|
|
|
|
|
Loss on extinguishment of debt |
(7,763 |
) |
|
— |
|
|
(7,763 |
) |
|
— |
|
Goodwill impairment |
— |
|
|
(40,969 |
) |
|
— |
|
|
(40,969 |
) |
Other |
(7,928 |
) |
|
(1,426 |
) |
|
(12,779 |
) |
|
(2,211 |
) |
Add: |
|
|
|
|
|
|
|
Interest expense, net |
23,334 |
|
|
15,890 |
|
|
39,251 |
|
|
31,673 |
|
Income tax expense |
— |
|
|
10 |
|
|
19 |
|
|
17 |
|
Change in assets and liabilities |
46,402 |
|
|
45,083 |
|
|
14,441 |
|
|
13,023 |
|
EBITDA |
51,473 |
|
|
(2,341 |
) |
|
56,148 |
|
|
8,311 |
|
Goodwill impairment |
— |
|
|
40,969 |
|
|
— |
|
|
40,969 |
|
Adjusted EBITDA |
$ |
51,473 |
|
|
$ |
38,628 |
|
|
$ |
56,148 |
|
|
$ |
49,280 |
|
Reconciliation of EBITDA to Available Cash for
Distribution
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
EBITDA |
$ |
51,473 |
|
|
$ |
(2,341 |
) |
|
$ |
56,148 |
|
|
$ |
8,311 |
|
Non-cash items: |
|
|
|
|
|
|
|
Goodwill impairment |
— |
|
|
40,969 |
|
|
— |
|
|
40,969 |
|
Current (reserves) adjustments
for amounts related to: |
|
|
|
|
|
|
|
Debt service |
(14,725 |
) |
|
(14,999 |
) |
|
(29,721 |
) |
|
(29,998 |
) |
Financing fees |
(3,244 |
) |
|
— |
|
|
(3,244 |
) |
|
— |
|
Maintenance capital expenditures |
(2,855 |
) |
|
(2,220 |
) |
|
(4,939 |
) |
|
(6,358 |
) |
Utility pass-through |
4,145 |
|
|
— |
|
|
4,145 |
|
|
— |
|
Common units repurchased |
— |
|
|
(1,008 |
) |
|
(529 |
) |
|
(1,008 |
) |
Other (reserves) releases: |
|
|
|
|
|
|
|
Reserve for recapture of prior negative available cash |
(14,980 |
) |
|
(5,917 |
) |
|
(14,980 |
) |
|
(5,917 |
) |
Future turnaround |
(1,403 |
) |
|
(1,500 |
) |
|
(2,880 |
) |
|
(1,500 |
) |
Previously established cash reserves |
— |
|
|
— |
|
|
5,308 |
|
|
2,567 |
|
Reserve for repayment of current portion of long-term debt |
— |
|
|
(2,240 |
) |
|
— |
|
|
(2,240 |
) |
Cash reserves for future operating needs |
— |
|
|
(10,744 |
) |
|
— |
|
|
(10,744 |
) |
Available Cash for distribution
(1) (2) |
$ |
18,411 |
|
|
$ |
— |
|
|
$ |
9,308 |
|
|
$ |
(5,918 |
) |
|
|
|
|
|
|
|
|
Common units outstanding |
10,681 |
|
|
11,239 |
|
|
10,681 |
|
|
11,239 |
|
__________________
(1) |
|
Amount represents the cumulative available cash based on
quarter-to-date and year-to-date results. However, available cash
for distribution is calculated quarterly, with distributions (if
any) being paid in the period following declaration. |
(2) |
|
The Partnership paid no cash distributions related to the first
quarter of 2021, and declared a cash distribution of $1.72 per
common unit related to the second quarter of 2021. |
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